Reference · Set-asides & socioeconomic
Set-aside contracts
Small-business set-aside
A set-aside contract is a federal contract reserved for competition among a specific category of small business — such as small businesses generally, or 8(a), SDVOSB, WOSB, or HUBZone firms. Large businesses cannot compete for it.
What it is
When market research shows enough capable small businesses exist, the agency sets the requirement aside so only firms in that category compete. Set-asides can be full or partial, and some categories allow sole-source awards.
Why it exists
Set-asides implement statutory small-business goals, ensuring a meaningful share of federal contracting reaches small and disadvantaged firms.
Who it applies to
Qualifying small businesses in the relevant category. Whether a requirement is set aside — and for whom — shapes who can realistically win it.
Frequently asked
What is a set-aside contract?
A set-aside contract is a federal contract reserved for competition among a specific category of small business — small businesses generally, or programs like 8(a), SDVOSB, WOSB, or HUBZone. Large businesses cannot compete, and some categories also allow sole-source awards.
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