19.502-1
Requirements for setting aside acquisitions
Contracting officers must set aside eligible acquisitions for small businesses unless the purchase is a micro-purchase or from a required source under FAR Part 8.
Overview
FAR 19.502-1 establishes when contracting officers must set aside acquisitions exclusively for small business participation. The regulation requires set-asides if it supports national productive capacity, war or defense programs, or ensures a fair share of contracts for small businesses, provided the conditions in FAR 19.502-2 or 19.502-3(a) are met. However, this requirement does not apply to purchases at or below the micro-purchase threshold or to acquisitions from mandatory sources listed in FAR Part 8 (such as those supporting people who are blind or severely disabled). This section is foundational for promoting small business participation in federal contracting and outlines the initial triggers for set-aside consideration.
Key Rules
- Mandatory Set-Asides for Small Businesses
- Contracting officers must set aside acquisitions for small businesses if it supports national capacity, defense, or fair contract distribution, and if further conditions in related sections are met.
- Exceptions to Set-Aside Requirement
- The set-aside rule does not apply to micro-purchases or to purchases from required sources under FAR Part 8.
Responsibilities
- Contracting Officers: Must evaluate each acquisition for set-aside eligibility and document decisions, except for micro-purchases or required sources.
- Contractors: Should monitor opportunities and eligibility for small business set-asides.
- Agencies: Oversee compliance with small business contracting goals and set-aside requirements.
Practical Implications
- This section ensures small businesses have access to federal contracts, supporting economic diversity and national interests.
- Contracting officers must be diligent in reviewing each acquisition for set-aside potential, except for clear exceptions.
- Common pitfalls include overlooking set-aside requirements for eligible acquisitions or misapplying exceptions.