DFARS Part 219: Small Business Programs

In plain English

DFARS Part 219 implements small business programs for DoD acquisitions, covering set-asides, the 8(a) Program, HUBZone preferences, subcontracting plans, and the Mentor-Protégé Program. It matters to contractors because it determines eligibility for set-asides, subcontracting obligations, and participation in developmental programs.

Key rules

• Do not set aside acquisitions for supplies developed and financed by Canadian sources under the U.S.-Canadian Defense Development Sharing Program, or for acquisitions excluded from procurement center representative review. (219.502-1)
• Unless the contracting officer determines the criteria cannot be met, set aside for small business concerns acquisitions for construction under $3.5 million, dredging under $2 million, and architect-engineer services for military construction or family housing projects under $1 million. (219.502-2)
• When acquiring religious-related services to be performed on a U.S. military installation, do not preclude a nonprofit organization from competing, even when the acquisition is set aside for small businesses, and do not use sole source exceptions. (219.270-2)
• Use the provision 252.219-7012, Competition for Religious-Related Services, in solicitations for religious-related services on U.S. military installations when set aside for small businesses. (219.270-3)
• For the 8(a) Program, the SBA may not accept for negotiation a DoD sole-source 8(a) contract exceeding $100 million unless DoD has completed a justification in accordance with FAR 6.303 and 206.303-1(b). (219.808-1)
• Use the clause at 252.219-7009, Section 8(a) Direct Award, instead of certain FAR clauses in solicitations and contracts processed under the Partnership Agreement. (219.811-3)
• The DoD Mentor-Protégé Program provides incentives for DoD contractors to assist protégé firms in enhancing their capabilities and increase participation in Government and commercial contracts. (219.7100)
• Contracting officers shall negotiate an advance agreement on the treatment of developmental assistance costs for either credit or reimbursement if the mentor firm proposes such an agreement, or delegate authority to negotiate to the administrative contracting officer. (219.7103-2)

Who does what

In practice

• If you are a small business, check whether the acquisition falls under mandatory set-aside thresholds for construction, dredging, or architect-engineer services, as these are automatically set aside unless the contracting officer determines otherwise.
• If you are a nonprofit organization providing religious-related services, you may compete even when the acquisition is set aside for small businesses, and sole source exceptions cannot be used.
• If you are an 8(a) contractor, be aware that sole-source contracts over $100 million require a justification before SBA can accept for negotiation.
• If you are a prime contractor with a subcontracting plan, you must notify the administrative contracting officer in writing of any substitutions of small business firms with non-small businesses.

Common pitfalls

• Do not assume that all acquisitions are set aside for small business; certain supplies under the U.S.-Canadian Defense Development Sharing Program and acquisitions excluded from procurement center representative review are not set aside.
• Do not use sole source exceptions when acquiring religious-related services on U.S. military installations, even if the acquisition is set aside for small businesses.
• Do not fail to notify the administrative contracting officer of substitutions of small business firms in a subcontracting plan; written notification is required within a reasonable period after subcontract award.
• Do not overlook the requirement to use the clause at 252.219-7009, Section 8(a) Direct Award, instead of certain FAR clauses when processing contracts under the Partnership Agreement.

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.