Federal small-business set-aside programs

Eight federal set-aside programs explained. Eligibility checklists, certification paths, recent obligation data, and recommended NAICS for each.

8(a) Business Development Program →

9-year SBA program for socially and economically disadvantaged small businesses. Sole-source contracts up to $4.5M (services) / $7M (manufacturing).

FAR Subpart 19.8 / 13 CFR 124
Women-Owned Small Business (WOSB) →

Set-aside for women-owned small businesses in NAICS where women are underrepresented. SBA-certified.

FAR Subpart 19.15 / 13 CFR 127
Service-Disabled Veteran-Owned Small Business (SDVOSB) →

Set-aside for small businesses owned and controlled by service-disabled veterans. Agencies have a 3% government-wide goal.

FAR Subpart 19.14 / 38 CFR 74 (VA) and 13 CFR 128 (SBA-wide)
Veteran-Owned Small Business (VOSB) →

Set-aside primarily used for VA contracts under the VA's 'Vets First' contracting program.

38 USC 8127 (VA) / 13 CFR 128
Historically Underutilized Business Zone (HUBZone) →

Set-aside for small businesses HQ'd in HUBZone-designated areas with 35%+ HUBZone-resident employees. 3% government-wide goal.

FAR Subpart 19.13 / 13 CFR 126
Economically Disadvantaged Women-Owned Small Business (EDWOSB) →

Stricter WOSB subset for economically disadvantaged women-owned small businesses. Eligible for sole-source contracts.

FAR Subpart 19.15 / 13 CFR 127
Total Small Business Set-Aside →

Federal acquisitions reserved for small businesses by SBA size standard. The largest single set-aside category by dollars.

FAR 19.502 / 13 CFR 121
Small Disadvantaged Business (SDB) →

Self-certified status for socially and economically disadvantaged small businesses. Used for goal achievement; no separate set-aside.

FAR 19.703 / 13 CFR 124 Subpart B

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FAQ

What is a federal set-aside?

A set-aside is a federal contract reserved for businesses meeting specific socioeconomic criteria — small business, 8(a), women-owned, veteran-owned, HUBZone, etc. Set-asides exist to meet government-wide contracting goals and direct federal spending to underrepresented firms.

Can I qualify for multiple set-asides?

Yes. Many small firms qualify for several simultaneously — e.g. an 8(a) firm headquartered in a HUBZone with a service-disabled veteran owner can claim 8(a), HUBZone, and SDVOSB. Each requires its own certification or representation.

Which set-asides allow sole-source contracts?

8(a), SDVOSB, EDWOSB, and HUBZone all allow agencies to award sole-source contracts within statutory dollar caps ($4.5M services/supplies, $7M manufacturing). WOSB-only and small-business set-asides require competition.