Understanding Set-Asides: Small Business Preference Programs

What Are Set-Aside Contracts

Types of Set-Aside Categories

Total Small Business Set-Aside: Restricts competition to businesses qualifying as small under the size standard for the assigned NAICS code. Any small business meeting the size standard may compete regardless of other characteristics.
Partial Small Business Set-Aside: Sets aside a portion of a larger requirement for small business competition while opening the remainder to full and open competition. Used when small businesses can handle part but not all of a requirement.
8(a) Business Development Set-Aside: Restricts competition to certified participants in the SBA 8(a) Business Development program. The 8(a) program serves socially and economically disadvantaged business owners.
HUBZone Set-Aside: Limits competition to SBA-certified HUBZone small businesses located in and employing workers from Historically Underutilized Business Zones.
Service-Disabled Veteran-Owned Small Business Set-Aside: Restricts competition to small businesses owned and controlled by service-disabled veterans of the United States Armed Forces.
Women-Owned Small Business Set-Aside: Limits competition to women-owned small businesses or economically disadvantaged women-owned small businesses in designated NAICS codes where women are underrepresented.
Veteran-Owned Small Business Set-Aside: Primarily used by the Department of Veterans Affairs under the Veterans First program, restricting competition to verified veteran-owned small businesses.

1
Determine applicable programs
Review the eligibility criteria for various socioeconomic programs to identify those for which you may qualify. Programs have different ownership, control, and operational requirements that must be satisfied for certification.
2
Verify eligibility requirements
Carefully review all requirements for your target programs. Requirements typically address business ownership percentages, daily management and control, personal net worth and income limitations, and operational requirements. Partial compliance does not satisfy eligibility.
3
Prepare certification documentation
Gather documentation supporting your eligibility claims. This typically includes organizational documents, financial statements, tax returns, personal financial information for owners, and various certifications and declarations.
4
Submit certification application
Complete the certification application for your target program through the appropriate system—typically certify.sba.gov for SBA programs or agency-specific systems for programs like VA verification. Provide complete and accurate information.
5
Maintain ongoing compliance
Certification is not permanent. Programs require annual reviews, recertifications, or other ongoing compliance activities. Changes in circumstances may affect your continued eligibility. Monitor requirements and maintain compliance throughout your certification period.

Build relevant past performance demonstrating successful contract execution in your target areas.
Develop competitive pricing that provides value while maintaining profitability.
Invest in capability development addressing the requirements you pursue.
Create compelling proposals clearly demonstrating your ability to perform.
Maintain all required certifications and registrations in good standing.
Build relationships with contracting officers and program managers who buy what you sell.