FAR Part 19: Small Business Programs

In plain English

FAR Part 19 implements the Small Business Act to ensure small businesses get maximum practicable opportunity in federal acquisitions. It covers size standards, set-asides, subcontracting plans, and programs like 8(a), HUBZone, SDVOSB, and WOSB. For contractors, it defines eligibility, representation, and compliance requirements that affect bidding and performance.

Key rules

• Small business size standards are set by industry and the contracting officer's NAICS code and size standard determination is final unless appealed. (19.102, 19.103)
• The Government policy is to provide maximum practicable opportunities to small businesses, and contracting officers must encourage small business participation. (19.201, 19.202-1)
• Acquisitions above the micro-purchase threshold but below the simplified acquisition threshold are automatically set aside for small business unless the contracting officer determines there is not a reasonable expectation of two or more small business offers. (19.502-2)
• For contracts above the simplified acquisition threshold, contractors must agree to use small businesses and may need to submit a subcontracting plan with goals. (19.702, 19.704)
• The 8(a) Program allows SBA to contract with agencies and subcontract to eligible small businesses, with specific procedures for offering and acceptance. (19.800, 19.804-2)
• There are separate programs for HUBZone, SDVOSB, and WOSB concerns, each with set-aside and sole-source procedures. (19.1305, 19.1405, 19.1505)
• Contractors must represent their size and socioeconomic status in good faith, and may need to rerepresent on long-term contracts. (19.301-1, 19.301-2)
• Small business set-asides may be withdrawn or dissolved if not awarded, and there are limitations on subcontracting. (19.502-9, 19.502-10, 19.505)

Who does what

In practice

• If you are a small business, check the NAICS code and size standard for each solicitation to confirm eligibility.
• For acquisitions above the micro-purchase threshold but below the simplified acquisition threshold, they are automatically set aside for small business unless the contracting officer documents an exception.
• If you win a contract above the simplified acquisition threshold, you may need to submit a subcontracting plan and meet small business subcontracting goals.
• For 8(a), HUBZone, SDVOSB, or WOSB programs, ensure you meet the specific eligibility criteria and follow the procedures for set-asides or sole-source awards.

Common pitfalls

• Assuming you are a small business without verifying the applicable NAICS code and size standard for the specific solicitation.
• Failing to rerepresent your size status when required on long-term contracts, which can affect eligibility for options or future awards.
• Not complying with subcontracting plan requirements, which can lead to contract performance issues or penalties.
• Ignoring limitations on subcontracting, which can make you ineligible for set-aside contracts.

Written by AI from this part's codified text (2026-10-04); cited sections are checked against the part. A guide, not legal advice: the regulation text, the solicitation and your contract rule.