Contracting Services
Types of contracts
Set-aside contracts for small businesses
To help provide a level playing field for our business, the government limits competition for certain contracts to small businesses. Those contracts are called “small business set-asides,” and they help small businesses compete for and win federal contracts.
There are two kinds of set-aside contracts: competitive set-asides and sole-source set-asides.
Competitive set-aside contracts
When at least two small businesses could perform the work or provide the products being purchased, the government sets aside the contract exclusively for small businesses. With few exceptions, this happens automatically for all government contracts under $150,000.
Some set-asides are open to any small business, but some are open only to small businesses who participate in VA contracting assistance programs.
Sole-source set-aside contracts
Most contracts are competitive, but sometimes there are exceptions to this rule. Sole-source contracts are a kind of contract that can be issued without a competitive bidding process. This usually happens in situations where only a single business can fulfill the requirements of a contract.
In some cases, sole-source contracts must be published publicly, and will be marked with an intent to sole source. Potential vendors can still view and bid on these contracts. Once the bidding process begins, the intent to sole-source may be withdrawn.
SMALL BUSINESS SET-ASIDES
The small business set-aside is the most common socioeconomic program. It restricts, or “sets aside,” contracts exclusively for small business participation. Only businesses that do not exceed prescribed size standards for the supply or service being acquired are considered small and are allowed to bid or propose on small business set-asides. Bidders or offerors that exceed the applicable size standard for a particular small business set-aside are, by definition, nonresponsive and their bids or proposals will be rejected.
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