52.219-7 Notice of Partial Small Business Set-Aside
Source: FAR 52.219-7 on acquisition.gov
For a partial small business set-aside, only eligible small businesses can win the set-aside portion, so offerors must confirm SBA size status—including affiliates—and follow the solicitation’s required proposal format exactly.
Overview
- FAR 52.219-7 establishes the solicitation clause used when an acquisition is partially set aside for small business concerns. It explains who qualifies as a small business for this clause, how offers may be submitted, and how competition works for both the set-aside and non-set-aside portions.
- Its purpose is to preserve the reserved portion for eligible small businesses while still allowing broader competition for the unrestricted portion.
Key Rules
- Definition of Small Business Concern
- A qualifying concern must be independently owned and operated, not dominant in its field, and meet the solicitation’s applicable SBA size standard, including consideration of affiliates under 13 CFR 121.103.
- Applicability and Offer Eligibility
- The clause applies only to contracts that are partially set aside. For the set-aside portion, offers from firms that do not qualify as small businesses are nonresponsive and must be rejected.
- Offer Submission Structure
- The solicitation will specify whether an offeror must submit separate offers for each portion or one combined offer covering all portions it seeks.
- Multiple-Award Contract Orders
- For set-aside portions of multiple-award contracts, small businesses do not compete against other-than-small businesses. They may compete for non-set-aside orders only if they received award for the non-set-aside portion.
- Alternate I
- If included, Federal Prison Industries, Inc. must be solicited and considered for both the set-aside and non-set-aside portions despite paragraph (c).
Responsibilities
- Contracting Officers: identify the set-aside portion, indicate the required offer format, reject non-small-business offers for the set-aside portion, and apply Alternate I when prescribed.
- Contractors: verify small business status including affiliates, submit offers in the format required by the solicitation, and understand which portions or orders they are eligible to compete for.
- Agencies: ensure partial set-aside procedures are administered consistently with SBA size and affiliation rules.
Practical Implications
- This clause exists to protect the integrity of partial small business set-asides while maintaining competition for unrestricted work.
- It affects proposal strategy, especially where offerors want to compete for both portions or under multiple-award vehicles.
- Common pitfalls include misrepresenting size status, overlooking affiliate relationships, and submitting the wrong offer format for the solicitation.
As prescribed in 19.507(d), insert the following clause:
Notice of Partial 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 contracts that have been partially set aside for small business concerns.
(c) General.
(1) A portion of this requirement, identified elsewhere in this solicitation, has been set aside for award to one or more small business concerns identified in 19.000(a)(3). 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 the requirement.
(2) Small business concerns may submit offers and compete for the non-set-aside portion and the set-aside portion.
(d) The Offeror shall—
[Contracting Officer check as appropriate.]
□ Submit a separate offer for each portion of the solicitation for which it wants to compete (i.e. set-aside portion, non-set-aside portion, or both); or
□ Submit one offer to include all portions for which it wants to compete.
(e) Partial set-asides of multiple-award contracts.
(1) Small business concerns will not compete against other than small business concerns for any order issued under the part or parts of the multiple-award contract that are set aside.
(2) Small business concerns may compete for orders issued under the part or parts of the multiple-award contract that are not set aside, if the small business concern received a contract award for the non-set-aside portion.
(End of clause)
Alternate I (Mar 2020) . As prescribed in 19.507 (d), add the following paragraph (f) to the basic clause:
(f) Notwithstanding paragraph (c) of this clause, offers from Federal Prison Industries, Inc., will be solicited and considered for both the set-aside and non-set-aside portion of this requirement.