Linda's Small Business Corner: Do You Qualify for Small Business "S

Did you know that depending on your industry, your business could generate at much as $20 Million a year and still qualify as a Small Business per SBA Guidelines?

That if your business is located in certain disadvantaged areas you qualify for a HUDZone certification and are entitled to special government "set asides"?

Federal "Set Asides" are designated to give small businesses a fighting chance at securing government contracts. The Agency understand that Small Businesses can't compete in pricing against larger established organizations, and for that reason, some bids are strictly set aside for specific small business certified companies. It helps level the playing field and grants federal contracts to companies that normally would not even be able to bid.

What is a Small Business Set Aside?

Small business set-asides are a leading edge for small businesses to compete for and win federal contracts. Every year, the federal government purchases approximately $400 billion in goods and services from the private sector. Small Business Set Asides ensure that small businesses get their fair share of these funds.

When market research concludes that small businesses are available and able to perform the work or provide the products being procured by the government, those opportunities are “set-aside” exclusively for small business concerns.

There are many different types of set-asides. Some are open to all small businesses; others are open only to small businesses with certain designations.

Contract Value

A set-aside is based, in part, on the value of the goods or services that the government is looking to purchase.

$3,500 - $150,000 Every federal government purchase with an anticipated value above the micro-purchase threshold of $3,500, and up to the Simplified Acquisition Threshold (SAT) of $150,000, is required to be automatically and exclusively set-aside for small businesses. There must be at least two or more (Rule of Two) responsible small business concerns that are competitive in terms of market prices, quality, and delivery for an automatic set-aside to occur.

$150,000+ Contract opportunities above the SAT of $150,000 shall also be set aside if the Rule of Two is met.

$700,000 or $1.5M for Construction Contracts opportunities over $700,000 or $1.5M (for construction), awarded to Other-than-Small-Businesses (OTSBs), must have small business subcontracting plans to the extent there are subcontracting opportunities. A small business subcontracting plan establishes subcontracting goals for small businesses, small disadvantaged businesses, HUBZone, veteran-owned, service-disabled veteran-owned and women-owned small businesses.

Prime Contract Goals

The Federal government has specified annual prime contracting goals for designated small businesses. The current, government-wide procurement goal stipulates that at least 23% of all federal government contracting dollars should be awarded to small businesses. In addition, targeted sub-goals are established for the following small business categories:

  • Women Owned Small Business – 5%

  • Small Disadvantaged Business – 5%

  • Service Disabled Veteran Owned Small Business – 3%

  • HUBZone – 3%

Set Aside and Sole Source Programs

Government contracts can be set-aside for small businesses in the following certification programs and socio-economic categories:

  • 8(a) Business Development

  • HUBZone Program

  • Women Owned Small Business (WOSB) Program (includes Economically Disadvantaged Women Owned Small Business (EDWOSB) concerns)

  • Service Disabled Veteran Owned Program (SDVO)

In addition, there are sole source development opportunities under the 8(a) program and sole source conditional opportunities under the HUBZone, SDVOSB, WOSB programs.

Set asides are currently established for the following certifications::

  1. Woman Owned Small Business (WOSB)

  2. Economically Disadvantages Small Business (EDWOSB)

  3. Small Business (SBE)

  4. Emerging Small Business

  5. HUBZone

  6. Service-Disabled Veteran Owned Business

  7. Veteran Owned Business

  8. Indian Economic Enterprise

  9. Indian Small Business Economic Enterprise

  10. 8A Certified

To see if you qualify for any of these, Click Here to go to the official SBA Guidelines.

To see what opportunities may be open for you, visit:

#setasides #smallbusiness #federalbids #SBA

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