It is relatively very easy to achieve federal contracting opportunities through Small Business set-asides. The SBA (Small Business Administration) has come up with several set-aside certifications to meet the needs of the American people especially the small business owners who may be socially and or economically disadvantaged. This blog will define each of the set-aside programs that the SBA offers, as well as the advantages and disadvantages of each for the future.
What are Small Business Set-Asides?
The terms Small Business Set-Asides refer to the certifications that the SBA has established to provide those who are unrepresented (in both the social and economic sense) and organisations a level field when it comes to federal contracting. The term “set-aside” is used because the federal government sets aside certain federal contracting dollars for those individuals and businesses who are qualified or who are currently enrolled in the program. Also, government agencies and prime contractors will “set-aside” contracts for those who participate in those programs.
Small Business Administration
The SBA is an agency of the federal government that is responsible for all the business aspects of small businesses, certifications, and set-aside programs. The American people should be treated with courtesy and decency in the federal marketplace, thus the SBA has provided some definitions that would help to identify a company or an individual as a Small Business based on the size standards that the SBA has set.
SBA Size Standards
Each NAICS Code that is tied to a SAM Registration has its own requirements for what constitutes a small business (typically based on the number of full-time employees and average annual revenue). You can check the requirements for each NAICS Code in this document. However, there are some general requirements that an entity must meet in order to be classified as a small business:
- SAM Registration that is current and compliant
- Business structure must be for-profit
- The company must be independently owned and operated.
- The company must not be nationally dominant in its field.
- Physically based and operating in the United States or its territories.
Each set-aside program has its own set of requirements, so make sure to read the requirements carefully to see if you are eligible for the program.
SBA Set-Aside Programs
There are four primary set-aside certifications that the SBA has curated:
- Woman-Owned Small Business (WOSB)
- Economically-Disadvantaged Woman-Owned Small Business (EDWOSB)
- Veteran-Owned Small Business (VOSB)
- Service-Disabled Veteran-Owned Small Business (SDVOSB)
- HUBZone Program (Historically Underutilized Business Zone)
- 8(a) Business Development Program
Each program has its own set of benefits and requirements for determining whether or not you are eligible for the set-aside program.
SBA and Set-Aside Program Regulatory Changes
To understand the future of set-aside programs and the SBA in general, you must stay current on all regulatory changes. The SBA and the federal government have recently announced regulatory changes regarding recertification that took effect early January. It was intended to increase the opportunities for socially and economically impacted businesses and to provide business disaster recovery in disaster areas. Read on to learn more about the changes and how to keep up with them to avoid missing important information about your SAM Registration or SBA Certification and your Small Business Profiles.
