Government Contract Set-Asides Explained: Small Business, 8(a), HUBZone, WOSB and SDVOSB
By JENA Tech & AI · Updated · 6 min read
The short answer
A set-aside reserves a contract for a group of businesses so only they can bid: total small business, 8(a), HUBZone, women-owned (WOSB and EDWOSB) or service-disabled veteran-owned (SDVOSB). You may only bid on a set-aside you actually qualify for, and the special programs require certification through the SBA.
The main set-aside types
Each solicitation states its set-aside (or none) on the cover page and in the SAM.gov notice.
- Total Small Business: any business that is small under the solicitation's NAICS size standard.
- 8(a) Business Development: SBA program for socially and economically disadvantaged owners; requires SBA certification.
- HUBZone: businesses located in, and employing people from, Historically Underutilized Business Zones; requires SBA certification.
- WOSB / EDWOSB: women-owned small businesses; requires certification through the SBA.
- SDVOSB: service-disabled veteran-owned small businesses; certification through SBA VetCert.
Rules that keep you compliant
Never bid on a set-aside you do not hold; misrepresenting status has serious consequences. Check your size against the NAICS code in each solicitation, because you can be small for one code and not another.
On small-business set-aside service contracts, the prime generally must perform at least half of the personnel cost with its own employees (the limitation on subcontracting). A similarly situated subcontractor's work can count toward that share.
Minority-owned is not, by itself, a federal set-aside
Being minority-owned does not create its own federal set-aside category. Minority-owned firms usually compete under Total Small Business set-asides, or under 8(a) if they apply and are certified. Some states run their own programs; Texas, for example, has HUB certification for state purchasing.
Frequently asked questions
Can any small business bid on a small business set-aside?
Yes, if it is small under the size standard for the solicitation's NAICS code and has an active SAM.gov registration.
Where do I get 8(a), HUBZone or WOSB certification?
Through the SBA's certification portal. SDVOSB certification is handled by SBA VetCert.
Is minority-owned a federal set-aside?
No. Minority-owned firms typically bid as small businesses or, if certified, through the 8(a) program. Some states have their own minority programs, such as Texas HUB.
Official sources
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