Partial set-asides of contracts other than multiple-award contracts
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.