19.502
Setting aside acquisitions
FAR 19.502 requires contracting officers to prioritize small business participation by setting aside eligible acquisitions, ensuring compliance with federal small business contracting goals.
Overview
FAR 19.502 outlines the requirements and procedures for setting aside federal acquisitions for small businesses. This section establishes when and how contracting officers must reserve procurements exclusively for small business participation, either totally or partially, and addresses related processes such as handling recommendations from the Small Business Administration (SBA), withdrawing set-asides, and including Federal Prison Industries. The regulation aims to maximize small business participation in federal contracting by providing clear criteria and steps for set-asides, including thresholds, exceptions, and administrative procedures.
Key Rules
- Requirements for Setting Aside Acquisitions
- Contracting officers must set aside acquisitions for small businesses when there is a reasonable expectation of receiving offers from at least two responsible small businesses at fair market prices.
- Total and Partial Set-Asides
- Acquisitions can be totally or partially set aside for small businesses, depending on market research and acquisition strategy.
- Handling SBA Recommendations and Set-Aside Modifications
- Procedures are provided for responding to SBA recommendations, withdrawing or modifying set-asides, and dissolving set-asides when necessary.
Responsibilities
- Contracting Officers: Must conduct market research, determine set-aside eligibility, document decisions, and follow procedures for set-asides and related actions.
- Contractors: Should monitor solicitations for set-aside status and ensure eligibility when bidding on set-aside contracts.
- Agencies: Oversee compliance with small business set-aside policies and respond to SBA input.
Practical Implications
- This section ensures small businesses have fair access to federal contracts, supporting government-wide socioeconomic goals.
- Contracting officers must be diligent in market research and documentation to justify set-aside decisions.
- Failure to properly set aside eligible acquisitions can result in protests or compliance issues.