19.502-3 Partial set-asides of contracts other than multiple-award contracts
Source: FAR 19.502-3 on acquisition.gov
Partial set-asides allow contracting officers to reserve portions of eligible contracts for small businesses when a total set-aside is not feasible, ensuring continued small business participation.
Overview
FAR 19.502-3 outlines the requirements and procedures for partially setting aside portions of contracts (other than multiple-award contracts) exclusively for small business participation. This regulation applies when a total set-aside is not feasible, but distinct portions of the requirement can be reserved for small businesses. The contracting officer must ensure that market research supports a partial set-aside, that at least two responsible small businesses are expected to compete, and that the acquisition is not subject to simplified acquisition procedures. The solicitation must clearly identify which portions are set aside and provide instructions for submitting offers. Offers from non-small businesses for the set-aside portion are considered nonresponsive and must be rejected, unless there is a size status question, in which case an SBA determination is required.
Key Rules
- Partial Set-Aside Criteria
- Partial set-asides are required when a total set-aside is not appropriate, the requirement can be divided, and at least two small businesses are expected to compete.
- Solicitation Requirements
- Solicitations must specify which portions are set aside and how offers should be submitted for both set-aside and non-set-aside portions.
- Offer Evaluation
- Offers from non-small businesses for set-aside portions are nonresponsive and must be rejected unless there is a size status dispute, which requires SBA involvement.
Responsibilities
- Contracting Officers: Conduct market research, determine set-aside portions, specify solicitation instructions, and ensure compliance with small business eligibility.
- Contractors: Submit offers according to solicitation instructions and ensure small business status for set-aside portions.
- Agencies: Oversee compliance and coordinate with SBA on size status determinations when necessary.
Practical Implications
- This section ensures small businesses have opportunities to participate in federal contracts even when a total set-aside is not possible. Contractors must pay close attention to solicitation details and eligibility requirements. Common pitfalls include failing to properly identify set-aside portions or submitting offers without verifying small business status.
(a) The contracting officer shall set aside a portion or portions of an acquisition, except for construction, for exclusive small business participation when—
(1) Market research indicates that a total set-aside is not appropriate (see 19.502-2);
(2) The requirement can be divided into distinct portions;
(3) The acquisition is not subject to simplified acquisition procedures;
(4) Two or more responsible small business concerns are reasonably expected to submit offers on the set-aside portion or portions of the acquisition that are competitive in terms of fair market prices, quality, and delivery;
(5) The specific program eligibility requirements identified in this part apply; and
(6) The solicitation will result in a contract other than a multiple-award contract (see 2.101 for definition of multiple-award contract).
(b) When the contracting officer determines that a requirement is to be partially set aside, the solicitation shall identify which portion or portions are set aside and not set aside.
(c) The contracting officer shall specify in the solicitation how offers shall be submitted with regard to the set-aside and non-set-aside portions.
(d) Offers received from concerns that do not qualify as small business concerns shall be considered nonresponsive and shall be rejected on the set-aside portion of partial set-asides. However, before rejecting an offer otherwise eligible for award because of questions concerning the size representation, an SBA determination must be obtained (see subpart 19.3).