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Set-aside

A contract or portion of a contract reserved for competition only among a defined category of businesses, such as small businesses or a specific socioeconomic group. Set-asides are a primary tool for meeting federal small-business goals.

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A contract or portion of a contract reserved for competition only among a defined category of businesses, such as small businesses or a specific socioeconomic group. Set-asides are a primary tool for meeting federal small-business goals.

Why it matters

A set-aside reserves a contract for a defined category of business, such as small or socioeconomic firms; for a qualifying vendor it removes larger competitors from the field entirely.

Standards & authorities

  • FAR Part 19 (Small Business Programs)

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Frequently asked

What is Set-aside?

A contract or portion of a contract reserved for competition only among a defined category of businesses, such as small businesses or a specific socioeconomic group. Set-asides are a primary tool for meeting federal small-business goals.

Why does Set-aside matter for defense and counter-UAS operators?

A set-aside reserves a contract for a defined category of business, such as small or socioeconomic firms; for a qualifying vendor it removes larger competitors from the field entirely.

What standard or authority governs Set-aside?

Set-aside is defined or governed by FAR Part 19 (Small Business Programs).

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