52.219-7
Notice of Partial Small Business Set-Aside
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.