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FAR and DFARS › FAR Part 19: Small Business Programs › Subpart 19.5

FAR 19.502-2 Total small business set-asides.

The codified text (eCFR, as of 2026-10-02). Under the Revolutionary FAR Overhaul ↗, agencies follow class deviations with new text for many parts while the formal rules go through the Federal Register: check the solicitation and your contract's clauses, which rule.

In plain English

This section requires that acquisitions above the micro-purchase threshold but not over the simplified acquisition threshold be set aside for small business unless there is no reasonable expectation of two or more competitive small business offers. For acquisitions over the simplified acquisition threshold, a total small business set-aside must be made when there is a reasonable expectation of at least two responsible small business concerns and fair market prices. It also explains what to do if only one or no acceptable small business offers are received.

Applies to: Acquisitions of supplies or services that are above the micro-purchase threshold and not over the simplified acquisition threshold, and acquisitions over the simplified acquisition threshold.

What it requires

  • Set aside acquisitions above the micro-purchase threshold but not over the simplified acquisition threshold for small business unless there is no reasonable expectation of two or more competitive small business offers.
  • If only one acceptable small business offer is received, make award to that firm.
  • If no acceptable small business offers are received, withdraw the set-aside and resolicit on an unrestricted basis if the requirement is still valid.
  • Set aside acquisitions over the simplified acquisition threshold for small business when there is a reasonable expectation of at least two responsible small business concerns and award at fair market prices.

Key terms: micro-purchase threshold · simplified acquisition threshold · small business set-aside · responsible small business concern · fair market prices

Written by AI from this section's text. A guide, not legal advice: the text below rules.

The text

(a) Before setting aside an acquisition under this paragraph, refer to 19.203(b). Each acquisition of supplies or services that has an anticipated dollar value above the micro-purchase threshold, but not over the simplified acquisition threshold, shall be set aside for small business unless the contracting officer determines there is not a reasonable expectation of obtaining offers from two or more responsible small business concerns that are competitive in terms of fair market prices, quality, and delivery. If the contracting officer receives only one acceptable offer from a responsible small business concern in response to a set-aside, the contracting officer should make an award to that firm. If the contracting officer receives no acceptable offers from responsible small business concerns, the set-aside shall be withdrawn and the requirement, if still valid, shall be resolicited on an unrestricted basis. The small business set-aside does not preclude the award of a contract as described in 19.203.

(b) Before setting aside an acquisition under this paragraph, refer to 19.203(c). The contracting officer shall set aside any acquisition over the simplified acquisition threshold for small business participation when there is a reasonable expectation that—

(1) Offers will be obtained from at least two responsible small business concerns; and

(2) Award will be made at fair market prices. Total small business set-asides shall not be made unless such a reasonable expectation exists (see 19.502-3 for partial set-asides). Although past acquisition history and market research of an item or similar items are always important, these are not the only factors to be considered in determining whether a reasonable expectation exists. In making research and development small business set-asides, there must also be a reasonable expectation of obtaining from small businesses the best scientific and technological sources consistent with the demands of the proposed acquisition for the best mix of cost, performances, and schedules.

Sections it refers to

  • 19.203 Relationship among small business programs.
  • 19.502-3 Partial set-asides of contracts other than multiple-award contracts.

Sections that refer to it

  • 14.502 Conditions for use.
  • 19.203 Relationship among small business programs.
  • 19.502-1 Requirements for setting aside acquisitions.
  • 19.502-3 Partial set-asides of contracts other than multiple-award contracts.
  • 19.502-4 Partial set-asides of multiple-award contracts.
  • 19.502-6 Setting aside a class of acquisitions for small business.
  • 19.504 Orders under multiple-award contracts.
  • 19.506 Documentation requirements.
  • 19.507 Solicitation provisions and contract clauses.
  • 52.213-4 Terms and Conditions—Simplified Acquisitions (Other Than Commercial Products and Commercial Services).
  • 52.219-13 Notice of Set-Aside of Orders.
  • 219.201 General policy.

← 19.502-1 Requirements for setting aside acquisitions. · 19.502-3 Partial set-asides of contracts other than multiple-award contracts. →

Rule changes for FAR Part 19

Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.

FAR 19.502-2 Total small business set-asides · SpendQuery