What is a small business set-aside?

A small business set-aside limits a federal acquisition exclusively to small business concerns. It can be total or partial, and set-aside solicitations must state the NAICS code and size standard that define who counts as small.

What is the rule of two?

It is the common name for the FAR requirement to set aside an acquisition for small business when the contracting officer reasonably expects offers from at least two responsible small businesses and award at fair market prices. Under FAR 19.502-2, acquisitions above the micro-purchase threshold up to the simplified acquisition threshold are set aside unless that expectation is lacking, and acquisitions above the threshold are set aside when it exists.

What is the SBA 8(a) program?

The 8(a) Business Development program is an SBA program for small businesses at least 51% owned and controlled by U.S. citizens who are socially and economically disadvantaged. Certified firms can compete for 8(a) set-aside and sole-source contracts (sole source up to $8.5 million for manufacturing NAICS codes and $5.5 million for others) and get business development help during a maximum nine-year term.

What is a small business set-aside?

A small business set-aside limits a federal acquisition exclusively to small business concerns. It can be total or partial, and set-aside solicitations must state the NAICS code and size standard that define who counts as small.

What is the rule of two?

It is the common name for the FAR requirement to set aside an acquisition for small business when the contracting officer reasonably expects offers from at least two responsible small businesses and award at fair market prices. Under FAR 19.502-2, acquisitions above the micro-purchase threshold up to the simplified acquisition threshold are set aside unless that expectation is lacking, and acquisitions above the threshold are set aside when it exists.

What is the SBA 8(a) program?

The 8(a) Business Development program is an SBA program for small businesses at least 51% owned and controlled by U.S. citizens who are socially and economically disadvantaged. Certified firms can compete for 8(a) set-aside and sole-source contracts (sole source up to $8.5 million for manufacturing NAICS codes and $5.5 million for others) and get business development help during a maximum nine-year term.

What is an SDVOSB set-aside?

As of 12 November 2026: An SDVOSB set-aside limits competition to service-disabled veteran-owned small businesses that are certified by SBA (VetCert). A contracting officer may use one when market research shows a reasonable expectation that two or more eligible SDVOSBs will submit offers and award will be at a fair market price.

Updated 12 November 2026, checked against the official sources below.

Steps

Confirm the owner(s) are identified by the VA as service-disabled veterans.
Confirm the business is small under a NAICS code in its SAM profile and at least 51% owned and controlled by one or more service-disabled veterans.
Create an SBA account and apply for certification at SBA Certifications.
After certification, check that SAM.gov shows the SDVOSB designation before bidding.

What do the official sources say?

Source	What it says	Read
FAR 19.1405(b) SDVOSB set-aside procedures	"A contracting officer may restrict competition to SDVOSB concerns eligible under the SDVOSB Program if there is a reasonable expectation based on market research that"	12 November 2026
SBA, Veteran Small Business Certification (VetCert)	"Certification with SBA allows service-disabled veteran-owned small businesses (SDVOSBs) to compete for federal sole-source and set-aside contracts across the federal government."	12 November 2026
SBA, Veteran Small Business Certification (VetCert)	"The federal government aims to award at least 5% of all federal contracting dollars to SDVOSBs each year."	12 November 2026

Questions people also ask

What is a small business set-aside?: A small business set-aside limits a federal acquisition exclusively to small business concerns. It can be total or partial, and set-aside solicitations must state the NAICS code and size standard that define who counts as small.
What is the rule of two?: It is the common name for the FAR requirement to set aside an acquisition for small business when the contracting officer reasonably expects offers from at least two responsible small businesses and award at fair market prices. Under FAR 19.502-2, acquisitions above the micro-purchase threshold up to the simplified acquisition threshold are set aside unless that expectation is lacking, and acquisitions above the threshold are set aside when it exists.
What is the SBA 8(a) program?: The 8(a) Business Development program is an SBA program for small businesses at least 51% owned and controlled by U.S. citizens who are socially and economically disadvantaged. Certified firms can compete for 8(a) set-aside and sole-source contracts (sole source up to $8.5 million for manufacturing NAICS codes and $5.5 million for others) and get business development help during a maximum nine-year term.

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This page restates official sources; it is not legal advice. Bid Watch US is run by Bikoosh, an independent tracker, not affiliated with SAM.gov or the US government.