The term “contracting officer shall set aside” refers to a procurement method in government contracting that involves reserving a specific contract or portion of a contract exclusively for small businesses, minority-owned businesses, women-owned businesses, veteran-owned businesses, or other socio-economically disadvantaged groups.
The Federal Acquisition Regulation (FAR) requires that contracting officers consider using a set-aside if the acquisition meets certain criteria, such as having an estimated value of at least $250,000 for goods and services or $1.5 million for construction. Additionally, the contracting officer must determine that there is a reasonable expectation that two or more responsible small businesses can compete for the requirement and will submit competitive bids.
The Small Business Administration (SBA) has established several programs to assist small businesses in federal contracting, including the 8(a) Business Development Program, which provides business development assistance to small businesses owned and controlled by socially and economically disadvantaged individuals, and the HUBZone Program, which encourages economic development in historically underutilized business zones.
Contracting officers must also comply with specific requirements for set-aside contracts, such as advertising the opportunity in the Federal Business Opportunities (FedBizOpps) database and providing adequate notice to potential offerors. The contracting officer must evaluate proposals in accordance with the evaluation criteria set forth in the solicitation and award the contract to the lowest-priced, technically acceptable offeror.
In addition to promoting small business participation in federal contracting, set-asides are also intended to foster competition, promote innovation, and ensure the government receives fair and reasonable prices. By setting aside contracts for socio-economically disadvantaged groups, the government can help level the playing field and encourage small businesses to grow and compete for larger contracts.
In conclusion, a contracting officer shall set aside a contract or a portion of a contract when the procurement meets specific criteria and when there is a reasonable expectation that two or more responsible small businesses can compete for the requirement and will submit competitive bids. This procurement method is a great way to promote small business participation in federal contracting and foster competition while ensuring fair and reasonable prices.