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Small Business Set Asides

For a procurement to be totally set aside, a contracting officer must have reasonable expectations that offers will be obtained from at least two responsible small businesses and awards will be made at reasonable prices. When such conditions exist, the Small Business Act mandates the establishment of a set aside. What qualifies you as a small business? By definition a small business is a concern, including its affiliates, is independently owned and operated, not dominate in the field of operation in which it is bidding on government contracts, and qualified as a small business under the criteria and size standards in 13 CFR Part 121. For example:

  • Product Industry number of employees
  • Service Industry dollar volume of business
  • Nonmanufacturer employees cannot exceed 500

Moreover, a concern is any business entity organized for profit (even if its ownership is in the hands of a nonprofit entity) with a place of business located in the United States that makes a significant contribution to the US economy through payment of taxes and/or use of American products, material, labor, etc.