19.502-4 Partial set-asides of multiple-award contracts
Source: FAR 19.502-4 on acquisition.gov
Contracting officers can partially set aside portions of multiple-award contracts for small businesses when a total set-aside is not feasible, provided specific conditions are met and clearly identified in the solicitation.
Overview
FAR 19.502-4 provides guidance for contracting officers on partially setting aside portions of multiple-award contracts for small business concerns. This authority, based on the Small Business Jobs Act of 2010, allows agencies to reserve specific parts of a contract for small businesses when a total set-aside is not feasible. The regulation outlines the conditions under which partial set-asides are appropriate, such as when market research shows a total set-aside is not suitable, the requirement can be divided, and at least two responsible small businesses are expected to compete. It also requires clear identification in the solicitation of which portions are set aside, instructions for offer submission, and mandates that offers from non-small businesses for set-aside portions be rejected unless an SBA size determination is pending.
Key Rules
- Partial Set-Aside Authority
- Contracting officers may partially set aside portions of multiple-award contracts for small businesses, except for construction contracts, under specific conditions.
- Conditions for Partial Set-Asides
- Partial set-asides are allowed when a total set-aside is not appropriate, the requirement can be divided, simplified acquisition procedures do not apply, and at least two responsible small businesses are expected to compete.
- Solicitation Requirements
- Solicitations must clearly identify which portions are set aside and provide instructions for submitting offers 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 an SBA size determination is required.
Responsibilities
- Contracting Officers: Conduct market research, determine appropriateness of partial set-asides, clearly identify set-aside portions in solicitations, and ensure compliance with offer evaluation rules.
- Contractors: Submit offers according to solicitation instructions and ensure eligibility for set-aside portions.
- Agencies: Oversee compliance and coordinate with SBA on size determinations when necessary.
Practical Implications
- This section enables greater small business participation in multiple-award contracts when a total set-aside is not feasible. Contractors must pay close attention to solicitation details and eligibility requirements. Common pitfalls include failing to properly identify set-aside portions or submitting offers for set-aside portions without qualifying as a small business.
(a) In accordance with section 1331 of the Small Business Jobs Act of 2010 ( https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section644&num=0&edition=prelim" target="_blank">15 U.S.C. 644(r)(1)), contracting officers may, at their discretion, set aside a portion or portions of a multiple-award contract, except for construction, for any of the small business concerns identified at 19.000(a)(3) 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 an offer on the set-aside portion or portions of the acquisition that are competitive in terms of fair market prices, quality, and delivery; and
(5) The specific program eligibility requirements identified in this part apply.
(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).