Set-Aside Contract

Procurement

Definition

A federal contract reserved exclusively for competition among specific categories of small businesses.

More Information

Set-aside contracts limit competition to businesses with specific certifications such as SDVOSB, WOSB, HUBZone, or 8(a). Contracting officers use set-asides when there is a reasonable expectation that at least two qualified businesses will submit competitive offers. Set-asides help the government meet its small business contracting goals.

Example

A VA hospital sets aside a janitorial services contract exclusively for competition among verified SDVOSBs.