Don’t Compete with the Big Guys, Government Set-Asides

Quite often companies don’t consider doing business with the government because they don’t think that they have the capabilities to compete with the large businesses getting all the work. I’m here to tell you that isn’t true. The government has a mandated goal that 23% of business is set-aside for small businesses. This means that only small businesses can competitively bid on these contracts and win

            In addition to the small business set-aside there are several other set-asides that are guaranteed a percentage of the total business.

8a- This set-aside is for economically and socially disadvantaged business and can be awarded sole source contracts without any competition. This is a certification issued by the Small Business Administration.

Veteran Owned- This is a self-certification for former or current military members who own at least 51% of their business.

Small Disadvantaged Business- This is for companies owned 51% or more by African Americans, Hispanic Americans, Asian Pacific Americans, Subcontinent Asian Americans and Native Americans. This is a self-certifying designation through your SAM registration.

HUBZone- This designation is for companies who’s employees and business is located in a high unemployment, low income area. This is an application process and 3% of business is set-aside for these companies. In addition to this companies may receive a 10% price preference on bids.

Woman Owned Business- this is a self-certifying designation through SAM with a contracting goal of 5%.

Service Disabled Veteran Owned Small Business- This set-aside is for former military members injured in the line of duty that own 51% or greater of their business. The government wide contracting goal on this category is 3%.