Set-Aside
A contract whose competition is restricted to a category of business (small, 8(a), WOSB…).
A set-aside reserves a contract — or a slice of one — for a particular category of business. The federal statutory goal is that at least 23% of prime contract dollars go to small businesses, and set-asides are how that happens.
For a qualifying firm, a set-aside means a dramatically smaller bidder pool: competing against five bidders instead of fifty. Eligibility is binary — you either qualify or the opportunity is invisible to you.
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Federal set-asides run through formal SBA programs: [8(a)](/glossary/8a-program), [WOSB](/glossary/wosb), [SDVOSB](/glossary/sdvosb), and [HUBZone](/glossary/hubzone).
States run parallel programs — MBE / WBE / DBE (minority-, women-, disadvantaged-business enterprise) and local-vendor preferences — with separate paperwork.
What is a set-aside contract?
A set-aside contract is one the government reserves for a specific category of business — such as small businesses, 8(a) firms, women-owned, or service-disabled veteran-owned businesses. If you qualify, you compete against a much smaller pool of bidders.
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