Understanding Federal Set-Aside Programs

Set-asides are one of the biggest advantages available to small businesses in federal contracting. Here's how the main programs work.

Why set-asides exist

Agencies have statutory goals for awarding contracts to small businesses. Set-asides reserve specific opportunities for qualifying firms, shrinking the competitive field.

The main programs

• 8(a): for small, socially and economically disadvantaged businesses (SBA-certified, up to nine years).
• HUBZone: for firms based in Historically Underutilized Business Zones with 35%+ of staff living in one.
• WOSB / EDWOSB: for women-owned (and economically disadvantaged women-owned) small businesses.
• SDVOSB / VOSB: for service-disabled veteran-owned and veteran-owned small businesses.

How to use them

Get certified for every program you qualify for, then prioritize set-aside opportunities in those categories. You'll compete against a smaller, more comparable group - and many agencies actively need to award in these lanes to hit their goals.