FAR and DFARS › FAR Part 19: Small Business Programs › Subpart 19.5
FAR 19.502-9 Withdrawing or modifying 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 explains how a contracting officer can withdraw or modify a small business set-aside before award if awarding it would harm the public interest, such as paying more than a fair market price. The officer must give written notice with reasons to the agency small business specialist and the SBA PCR, and if there is disagreement, the matter goes to the SBA PCR for review. A written statement supporting the withdrawal or modification must be placed in the contract file.
Applies to: Contracting officers and acquisitions involving total or partial small business set-asides
What it requires
- Give written notice to the agency small business specialist and the SBA PCR stating the reasons for withdrawing an individual set-aside
- Prepare a written statement supporting any withdrawal or modification and include it in the contract file
Key terms: small business set-aside · contracting officer · SBA PCR · agency small business specialist · public interest
Written by AI from this section's text. A guide, not legal advice: the text below rules.
The text
(a) If, before award of a contract involving a total or partial small business set-aside, the contracting officer considers that award would be detrimental to the public interest (e.g., payment of more than a fair market price), the contracting officer may withdraw the small business set-aside, whether it was unilateral or joint. The contracting officer shall initiate a withdrawal of an individual total or partial small business set-aside, by giving written notice to the agency small business specialist and the SBA PCR (or, if a PCR is not assigned, see 19.402(a)) stating the reasons. In a similar manner, the contracting officer may modify a unilateral or joint class small business set-aside to withdraw one or more individual acquisitions.
(b) If the agency small business specialist does not agree to a withdrawal or modification, the case shall be promptly referred to the SBA PCR (or, if a PCR is not assigned, see 19.402(a)) for review.
(c) The contracting officer shall prepare a written statement supporting any withdrawal or modification of a small business set-aside and include it in the contract file.
Sections it refers to
- 19.402 Small Business Administration procurement center representatives.
Sections that refer to it
- 19.502-6 Setting aside a class of acquisitions for small business.
← 19.502-8 Rejecting Small Business Administration recommendations. · 19.502-10 Automatic dissolution of a small business set-aside. →
Rule changes for FAR Part 19
- Federal Acquisition Regulation: Inflation Adjustment of Acquisition-Related Thresholds ↗ · final rule 2025-08-27 · effective 2025-10-01
- Federal Acquisition Regulation: Small Business Participation on Certain Multiple-Award Contracts ↗ · proposed 2025-06-12
- Federal Acquisition Regulation: Small Business Participation on Certain Multiple-Award Contracts ↗ · proposed 2025-01-15 · comments due 2025-03-17
- Federal Acquisition Regulation: Subcontracting to Puerto Rican and Covered Territory Small Businesses ↗ · final rule 2025-01-03 · effective 2025-01-17
- Federal Acquisition Regulation: Rerepresentation of Size and Socioeconomic Status ↗ · final rule 2025-01-03 · effective 2025-01-17
- Federal Acquisition Regulation: Certification of Service-Disabled Veteran-Owned Small Businesses ↗ · final rule 2024-12-16 · effective 2024-12-16
- Federal Acquisition Regulation: Inflation Adjustment of Acquisition-Related Thresholds ↗ · proposed 2024-11-29 · comments due 2025-01-28
- Federal Acquisition Regulation; Technical Amendments ↗ · final rule 2024-08-29 · effective 2024-09-30
Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.