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Government Agencies to Increase Small Business Set-Asides

Posted by Abraham Xiong on November 17, 2011 at 6:35 PM

 

Government Agencies to Increase Small Business Set-Asides

On November 2nd, officials released an interim rule based on the FAR revisions. The rule took effect the same day.

 

Small businesses should be excited about the new regulation which will allow more set-aside opportunities for the 99.7% of businesses in the USA. Last year, only 22% of all Federal contracting dollars were awarded to small businesses. This new rule will encourage agencies to take more actions to award contracts to small businesses.

 

According to the new interim rule, agencies are required to set-aside task and delivery orders for small businesses. It obligates procurement officials to consider utilizing more small businesses through the expansive world of multiple-award contracts such as GWAC, BPA, IDIQ, etc.

 

Since the 1990’s the Office of Federal Procurement Policy has pushed those types of vehicles in an effort to bulk buy and lower prices. These efforts have squeezed the smaller businesses out of government contracting opportunities. Our hope is that the new rule with the Federal Acquisition Regulation (FAR) will open access for small businesses toward task and delivery-order contracts, such as government wide acquisition contracts (GWAC), blanket purchase agreements (BPA), GSA Schedules and even agency-wide contracts.

 

The revisions recently added to the FAR will authorize agencies to set aside one or more contracts for small business on a multiple-award contract, including any of the socio-economic programs, such as the SDVOSB, WOSB, 8a, and HUBzone small business programs.

 


Categories: Recent News, Legislation, Small Business

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