What is a set-aside?
A set-aside is a federal bid that only certain businesses are allowed to win. Knowing which ones you qualify for saves you from pricing jobs you can't be awarded.
Why set-asides exist
Congress wants a share of federal spending to go to small businesses. So when a contracting officer expects at least two capable small businesses to bid at a fair price, the job is usually set aside for small business. This is called the "rule of two." Most smaller trade jobs (repairs, maintenance, supply orders) end up set aside.
The common types
| Set-aside | Who can win it | What you need |
|---|---|---|
| Total small business | Any small business | Be "small" under the size standard for the bid's NAICS code (by revenue or employee count). You self-certify in SAM.gov. |
| SDVOSB | Service-disabled veteran-owned small businesses | SBA's VetCert certification. Self-claiming it in SAM.gov is no longer enough. |
| WOSB / EDWOSB | Women-owned (and economically disadvantaged women-owned) small businesses | SBA's WOSB or EDWOSB certification, and the bid's NAICS code has to be one where the program applies. |
| 8(a) | Firms in SBA's 8(a) Business Development program | Acceptance into the 8(a) program (owned by socially and economically disadvantaged individuals). |
| HUBZone | Small businesses in Historically Underutilized Business Zones | SBA HUBZone certification: principal office in a HUBZone and at least 35% of employees living in one. |
| Unrestricted / full and open | Anyone, any size | Nothing extra. You compete with big companies too. |
How to tell which one a bid is
On SAM.gov, look for the Set Aside field near the top of the notice, and check the solicitation document itself (often a block on the first form, the SF-1449 or SF-1442). If it says "Total Small Business Set-Aside" and you're small for that code, you can bid. If it names a program you're not certified in, you can't win it, no matter how good your price is.
Solicity reads that field on every bid and checks it against the certifications you tell it you hold. Bids you can't win are marked "Not for you", so you don't waste an evening pricing them.
Am I "small"?
Almost every trade shop is. SBA sets a size standard for each NAICS code, usually average annual revenue for trades (in the tens of millions of dollars for most construction and service codes). You can check yours with SBA's free Size Standards Tool. Being small is decided per bid, by that bid's NAICS code.
One rule that comes with set-asides
If you win a small-business set-aside, you have to do a real share of the work with your own people. See Can I sub out a federal job? for the percentages.
General information for trade contractors, checked against the Federal Acquisition Regulation (FAR), the Department of Labor and SBA.gov in October 2026. Rules and dollar limits change, and the bid itself always wins: follow the clauses in the solicitation you're quoting. Not legal advice.
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