FAR and DFARS › FAR Part 19: Small Business Programs › Subpart 19.5
FAR 19.504 Orders under multiple-award contracts.
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 contracting officers can set aside orders under multiple-award contracts for small businesses. It covers discretionary and mandatory set-asides, orders under set-aside contracts, and orders under reserves. Contractors need to understand these rules because they affect whether small businesses can compete for orders.
Applies to: Contracting officers and small business concerns competing for orders under multiple-award contracts.
What it requires
- The contracting officer shall state in the solicitation and resulting contract whether order set-asides will be discretionary or mandatory when the conditions in 19.502-2 are met at the time of order set-aside, and the specific program eligibility requirements, as applicable, are also then met.
- When setting aside an order above the simplified acquisition threshold, the contracting officer shall first consider setting aside the order for the small business socioeconomic contracting programs (i.e., 8(a), HUBZone, service-disabled veteran-owned small business, and women-owned small business)
- The contracting officer shall comply with the specific program eligibility requirements identified in this part in addition to the ordering procedures for a multiple-award contract.
Key terms: multiple-award contracts · set aside orders · small business concerns · simplified acquisition threshold · socioeconomic contracting programs
Written by AI from this section's text. A guide, not legal advice: the text below rules.
The text
(a) General. In accordance with section 1331 of the Small Business Jobs Act of 2010 (15 U.S.C. 644(r)(2)), contracting officers may, at their discretion, set aside orders placed under multiple-award contracts for any of the small business concerns identified in 19.000(a)(3).
(1) The contracting officer shall state in the solicitation and resulting contract whether order set-asides will be discretionary or mandatory when the conditions in 19.502-2 are met at the time of order set-aside, and the specific program eligibility requirements, as applicable, are also then met.
(2) When setting aside an order at or below the simplified acquisition threshold, the contracting officer may set aside the order for any of the small business concerns identified in 19.000(a)(3).
(3) When setting aside an order above the simplified acquisition threshold, the contracting officer shall first consider setting aside the order for the small business socioeconomic contracting programs (i.e., 8(a), HUBZone, service-disabled veteran-owned small business, and women-owned small business) before considering a small business set-aside.
(4) The contracting officer shall comply with the specific program eligibility requirements identified in this part in addition to the ordering procedures for a multiple-award contract (for orders placed under the Federal Supply Schedules Program, see 8.405-5; for orders placed under all other multiple-award contracts, see 16.505).
(b) Orders under set-aside contracts-
(1) Orders under total set-aside contracts. Under a total small business set-aside, contracting officers may at their discretion set aside orders for any of the small business socioeconomic concerns identified in 19.000(a)(3) provided that the requirements at paragraph (a) of this section, 19.502-2(b), and the specific program eligibility requirements are met.
(2)Orders under partial set-aside contracts. (i) Only small business concerns awarded contracts for the portion(s) that were set aside under the solicitation for the multiple-award contract may compete for orders issued under those portion(s).
(ii) Small business awardees may compete against other than small business awardees for an order issued under the portion of the multiple-award contract that was not set aside, if the small business received a contract award for the non-set-aside portion.
(c) Orders under reserves. (1) The contracting officer may—
(i) Set aside orders for any of the small business concerns identified in 19.000(a)(3) when there are two or more contract awards for that type of small business concern; or
(ii) Issue orders directly to one small business concern for work that it can perform when there is only one contract award to any one type of small business concern identified in 19.000(a)(3).
(2) Small business awardees may compete against other than small business awardees for an order that is not set aside if the small business received a contract award for the supplies or services being ordered.
Sections it refers to
Sections that refer to it
- 16.505 Ordering.
- 19.503 Reserves.
- 19.505 Limitations on subcontracting and nonmanufacturer rule.
- 19.507 Solicitation provisions and contract clauses.
- 19.804-6 Indefinite-delivery contracts.
- 19.809-2 Limitations on subcontracting and nonmanufacturer rule.
- 19.1309 Contract clauses.
- 19.1408 Contract clauses.
- 19.1508 Contract clauses.
- 52.219-3 Notice of HUBZone Set-Aside or Sole-Source Award.
- 52.219-14 Limitations on Subcontracting.
- 52.219-27 Notice of Set-Aside for, or Sole-Source Award to, Service-Disabled Veteran-Owned Small Business (SDVOSB) Concerns Eligible Under the SDVOSB Program.
- 52.219-29 Notice of Set-Aside for, or Sole-Source Award to, Economically Disadvantaged Women-Owned Small Business Concerns.
- 52.219-30 Notice of Set-Aside for, or Sole-Source Award to, Women-Owned Small Business Concerns Eligible Under the Women-Owned Small Business Program.
- 52.219-33 Nonmanufacturer Rule.
← 19.503 Reserves. · 19.505 Limitations on subcontracting and nonmanufacturer rule. →
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.