Small Business

Set-Aside Policies
&
Procedures
National Oceanic and Atmospheric Administration
Acquisition and Grants Office
Oversight and Compliance Branch

Agenda

General Requirements
Small Business Set-Aside At/Below and Above
Simplified Acquisition Threshold (SAT)
Distinguishing SB Set-Aside Rules At/Below
and Above SAT
Helpful Hints for SB Set-Aside Actions
Cooperation with Small Business Programs
Socioeconomic Firms

General Requirements
Contracting Officers shall set aside an individual
acquisition or class of acquisitions for competition
among small businesses when assuring that a fair
proportion of Government contracts in each industry
category is placed with small businesses concerns; and
circumstances described in FAR 19.502-2 or 19.502-3(a)
exist.

Small Business Set-Aside At

or Below SAT
The contracting officer shall set aside acquisitions at or below the
SAT ($150,000) for exclusively small business participation where
there is reasonable expectation. FAR 19.502-2(a) states
Offers will be obtained from at least two or more responsible
small business concerns that are competitive in terms of market
prices, quality, and delivery.

Small Business Set-Aside

Above SAT
The contracting officer shall set aside any acquisition above the SAT
($150,000) for small business participation when there is a reasonable
expectation. FAR 19.502(b) states -1. Offers will be obtained from at least two responsible small
business concerns; and
2. Award will be made at fair market prices.
If the acquisition is for a product (manufactured item), the small business must be
offering the products of a small business manufacturer unless the SBA has
granted either a waiver or exception to the non-manufacturer rule.
(Ref
FAR 19.502(c) )
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Distinguishing SB Set-Aside Rules

At/Below and Above SAT
Acquisitions below the SAT are automatically reserved exclusively
for small business unless the contracting officer determines there is
not a reasonable expectation of obtaining offers from two or more.
Acquisitions at or above the SAT are set-aside, if the rule of two is
met. The rule of two is met when there are two or more
responsible small businesses that can provide the products of U.S.
small firms.

Helpful Hints
What happens if the contracting officer receives only one offer
from a responsible small business concern?

The contracting officer should make an award

to that business. (FAR 19.502-2(a))
What happens if the contracting officer receives no
acceptable offers from a responsible small business concern?

The set-aside shall be withdrawn and resolicited on an unrestricted basis. (FAR 19.5022(a))
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Helpful Hints
Below the Simplified Acquisition Threshold
Always Set Aside for SB Unless --

Delivery Orders under indefinite delivery contracts (FAR

16.5); or

Requirements currently being performed by an 8(a)

participant or requirements SBA has accepted for
performance under the authority of the 8(a) Program,
unless SBA has consented to release the requirements
from the 8(a) Program.

Small Business Programs

The FAR requires the contracting officer to provide for
maximum practicable opportunities in its acquisitions to small
business, veteran small business, service-disable veteranowned small business, HUBZone small business, small
disadvantage business, and woman-owned small business
concerns. (FAR 19.201(a))
The FAR states there is no order of precedence among the 8(a) Program (FAR Subpart 19.8),
HUBZone Program, Service Disabled Veteran-Owned Small Business Procurement Program,
or the Women-Owned Small Business Program.
(Ref FAR 19.203(a))

Cooperation with Small

Business Administration
The determination to make a small business set-aside may be
unilateral or joint. A unilateral determination is one that is made by
the contracting officer. A joint determination is one that is
recommended by the Small Business Administration (SBA)
procurement center representative (or, if a procurement center
representative is not assigned, see FAR 19.402(a)) and concurred
in by the contracting officer.

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FAR 19.501(b)

Socioeconomic Firms
In determining which socioeconomic program to use for
an acquisition, the contracting officer should be
considering, at a minimum:

Results of market research that was done to

determine if there are socioeconomic firms
capable of satisfying the agencys
requirements; and

Agency progress in fulfilling its small business

goals.
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Questions??

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