A set aside contract refers to a procurement practice that is commonly used by the government agencies in the United States. This practice is used to create a more level playing field for small businesses by setting aside contracts exclusively for them.

A set aside contract is a procurement method used by the government to ensure that small businesses get a fair share of federal contracts. When the government identifies a contract that is suitable for small businesses, they can set it aside exclusively for small business owners. This means that only small businesses can bid on the contract, giving them a fair chance to compete for it.

There are several types of set aside contracts that the government uses, including 8(a) set-asides, HUBZone set-asides, SDVOSB set-asides, and WOSB set-asides. These set-asides are meant to benefit specific categories of small business owners, including those who are socially or economically disadvantaged, those located in Historically Underutilized Business Zones (HUBZones), veterans and service-disabled veterans, and women-owned businesses.

To qualify for set-aside contracts, small businesses must meet several requirements. These requirements vary depending on the type of set-aside contract, but in general, small businesses must meet size requirements, be owned and controlled by individuals who meet certain criteria, and be able to perform the work required by the contract.

Set aside contracts are beneficial to small businesses because they give them the opportunity to compete for contracts that they might not otherwise have the chance to bid on. This can help small businesses grow, increase their revenue and create jobs.

In conclusion, set aside contracts are a procurement practice used by the government to create a level playing field for small businesses. By setting aside contracts exclusively for small businesses, the government is helping to ensure that small businesses have a fair chance to compete for federal contracts. If you are a small business owner interested in learning more about set-aside contracts, you should contact your local Small Business Administration office for more information.