Set-asides are the primary vehicle through which the federal government meets its small business contracting goals. When a contracting officer determines that there are at least two qualified small businesses in a specific category that can perform the work at a fair market price, the contract can be restricted to that category.
The major set-aside categories are: Small Business (SB), Service-Disabled Veteran-Owned Small Business (SDVOSB), 8(a) Business Development Program, Historically Underutilized Business Zone (HUBZone), Women-Owned Small Business (WOSB), and Economically Disadvantaged Women-Owned Small Business (EDWOSB).
For contractors holding a relevant certification, set-asides dramatically reduce competition — from potentially hundreds of bidders on a full-and-open contract to a handful of qualified small businesses. This is why set-aside alignment is a high-weight factor in Pwin scoring.