52.219-6
Notice of Total Small Business Set-Aside
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.