Recent changes to small business set-aside rules affect how contracts are competed and awarded. Here's what small business contractors need to know.
Understanding Set-Asides
Federal agencies must meet small business contracting goals (typically 23% of contract dollars). They do this through set-asides—contracts reserved for specific business types.
Types of Set-Asides
Small Business (SB)
Reserved for businesses meeting SBA size standards for their industry.
[8(a) Business Development](/blog/8a-program-gsa-schedule-combo)
For socially and economically disadvantaged small businesses enrolled in the 8(a) program.
HUBZone
For businesses in Historically Underutilized Business Zones.
Women-Owned Small Business (WOSB/EDWOSB)
For women-owned and economically disadvantaged women-owned small businesses.
Service-Disabled Veteran-Owned (SDVOSB)
For small businesses owned by service-disabled veterans.
Recent Rule Changes
Sole-Source Thresholds
Thresholds for sole-source awards have been adjusted:
- 8(a): Up to $4.5M (services) or $7M (manufacturing)
- SDVOSB: Up to $5M (manufacturing) or $3M (services)
- WOSB/EDWOSB: Up to $5M (manufacturing) or $3.5M (services)
- HUBZone: Up to $4M
Certificate of Competency Changes
Updates to how SBA evaluates contractor capability for set-aside awards.
All Small Mentor-Protégé Changes
The SBA All Small Mentor-Protégé Program has expanded options for teaming arrangements.
Certification Updates
Self-Certification vs. SBA Certification
Some programs now require SBA certification rather than self-certification:
- SDVOSB: Now requires SBA certification
- WOSB/EDWOSB: Requires SBA certification
Recertification Requirements
Annual recertification is required for most programs. Keep your certifications current to maintain eligibility.
Impact on GSA Schedule Holders
Set-Asides Under GSA
GSA Schedule orders can be set aside for small businesses. Maintaining current certifications keeps you eligible for these opportunities.
Marketing Your Status
Ensure your GSA Advantage listing accurately reflects your small business certifications.
Best Practices for Small Businesses
- Keep certifications current (don't let them lapse)
- Monitor regulatory changes
- Document eligibility requirements
- Market your status actively
- Consider mentor-protégé relationships
Leverage Your Small Business Status
Take our free GSA Readiness Assessment to see if your small business qualifies for a GSA Schedule. Contact us for a free consultation and we will help you maximize your set-aside opportunities.