52.219-6 Notice of Total Small Business Set-Aside
Source: FAR 52.219-6 on acquisition.gov
For a total small business set-aside, only eligible small businesses may submit responsive offers and receive award, so contractors must confirm their SBA size status—including affiliates—before bidding.
Overview
- FAR 52.219-6 establishes the clause used when a procurement is totally set aside for small business concerns. Its purpose is to limit competition to eligible small businesses and ensure any resulting award goes only to a qualifying small business, or in the alternate version, to a small business or Federal Prison Industries (FPI).
- The clause also defines small business concern and explains that affiliates are considered when determining size status under the solicitation’s applicable SBA size standard.
Key Rules
- Definition of Small Business Concern
- A firm must be independently owned and operated, not dominant in its field, and qualify as small under the size standard stated in the solicitation, including consideration of affiliates.
- Affiliation Standard
- Affiliation exists where one concern controls or can control another, or a third party controls both. SBA evaluates affiliation under 13 CFR 121.103 using factors such as common ownership, management, and contractual relationships.
- Applicability
- The clause applies to total small business set-aside contracts and to orders set aside for small businesses under multiple-award contracts under FAR 8.405-5 and 16.505(b)(2)(i)(F).
- Offer Eligibility and Award Restriction
- Only offers from eligible small businesses are solicited; offers from non-small businesses are nonresponsive and must be rejected. Under Alternate I, FPI may also compete and receive award.
Responsibilities
- Contracting Officers: include the clause when required, evaluate whether offerors qualify as small businesses, and reject nonresponsive offers from ineligible firms.
- Contractors: verify small business status, including affiliates, before submitting an offer.
- Agencies: ensure set-aside procedures are properly applied, including use of Alternate I when FPI participation is authorized.
Practical Implications
- This clause protects the integrity of total small business set-asides by preventing awards to ineligible firms.
- Contractors must assess SBA size status carefully, especially where ownership, management, or contractual ties may create affiliation.
- A common pitfall is assuming a company is small without analyzing affiliate relationships under SBA rules.
As prescribed in 19.507(c), insert the following clause:
Notice of Total Small Business Set-Aside (Nov 2020)
(a) Definition.
Small business concern, as used in this clause—
(1) Means a concern, including its affiliates, that is independently owned and operated, not dominant in the field of operation in which it is bidding on Government contracts, and qualified as a small business under the size standards in this solicitation.
(2) Affiliates, as used in paragraph (a)(1) of this clause, means business concerns, one of whom directly or indirectly controls or has the power to control the others, or a third party or parties control or have the power to control the others. In determining whether affiliation exists, consideration is given to all appropriate factors including common ownership, common management, and contractual relationships. SBA determines affiliation based on the factors set forth at 13 CFR 121.103.
(b) Applicability. This clause applies only to-
(1) Contracts that have been totally set aside for small business concerns; and
(2) Orders set aside for small business concerns under multiple-award contracts as described in 8.405-5 and 16.505(b)(2)(i)(F).
(c) General.
(1) Offers are solicited only from small business concerns. Offers received from concerns that are not small business concerns shall be considered nonresponsive and will be rejected.
(2) Any award resulting from this solicitation will be made to a small business concern.
(End of clause)
Alternate I (Mar 2020) . As prescribed in 19.507 (c), substitute the following paragraph (c) for paragraph (c) of the basic clause:
(c) General.(1) Offers are solicited only from small business concerns and Federal Prison Industries, Inc. (FPI). Offers received from concerns that are not small business concerns or FPI shall be considered nonresponsive and will be rejected.
(2) Any award resulting from this solicitation will be made to either a small business concern or FPI.