Set-Aside Contracts are a significant pillar in the federal procurement process, conceived to encourage small businesses and promote diversity within the industry. These contracts are specially reserved, or “set aside,” for small businesses or specific socio-economic categories, allowing them to compete for federal contracts which would otherwise be dominated by large corporations. These categories can include women-owned, veteran-owned, economically disadvantaged, and businesses located in underprivileged zones.
Government Services Administration (GSA), in line with Small Business Act, ensures that a fair proportion of all federal contract dollars is allocated to small businesses through Set-Aside Contracts. This approach nurtures competition, drives innovation, creates jobs, and stimulates economic growth. It also presents opportunities for small businesses to expand their services and capabilities, and for government agencies to benefit from the unique offerings of these businesses.
