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section6.203

Set-asides for small business concerns

Overview

This section authorizes contracting officers to limit competition exclusively to small business concerns to satisfy statutory socioeconomic requirements, including those under the Small Business Innovation Research (SBIR) Program.

Key Rules

  • Authority to Restrict Competition: Contracting officers may set aside solicitations specifically to allow only small business concerns to compete.
  • SBIR Inclusion: These provisions expressly apply to contract actions conducted under the Small Business Innovation Research Program.
  • Administrative Relief: No separate formal justification or "Determination and Findings" (D&F) is required under FAR Part 6 to implement a small business set-aside.
  • Regulatory Reference: While FAR 6.203 provides the authority, the specific policies and procedures for implementing these set-asides are governed by FAR Subpart 19.5.

Practical Implications

  • This section streamlines the procurement process by removing the burden of drafting a formal "Justification and Approval" (J&A) for restricting competition, provided the restriction is in favor of small businesses.
  • Contractors should monitor FAR Part 19 for the specific "Rule of Two" and other procedural requirements that trigger the authorities mentioned in this section.

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