Overview
This section establishes the "discretionary parity" among the four primary socioeconomic programs and outlines the mandatory consideration hierarchy contracting officers must follow when choosing between socioeconomic set-asides and general small business set-asides.
Key Rules
- No Order of Precedence: There is no inherent priority ranking among the 8(a), HUBZone, SDVOSB, or WOSB programs; they are considered equal in status.
- Simplified Acquisition Threshold (SAT) Discretion: For requirements between the micro-purchase threshold and the SAT, contracting officers may use any of the four socioeconomic programs even though a general small business set-aside is normally the default.
- Above-SAT Mandatory Consideration: For acquisitions exceeding the SAT, contracting officers must consider the four socioeconomic programs before considering a general small business set-aside.
- "Once 8(a), Always 8(a)": If a requirement is currently in the 8(a) program, it cannot be moved to a different program or a general set-aside without formal SBA release.
- Decision Criteria: When choosing a program, contracting officers must base their decision on market research results and the agency's progress toward meeting its specific socioeconomic contracting goals.
- Small Business Priority: Any form of small business set-aside takes priority over full and open competition.
Practical Implications
- Contracting officers have the flexibility to "target" specific socioeconomic categories where their agency is currently falling short of its annual percentage goals.
- Socioeconomic-certified firms (8(a), HUBZone, SDVOSB, WOSB) enjoy a "first-look" advantage for large contracts (above the SAT) over general small businesses that do not hold these specific certifications.