A set-aside is a government job that only certain businesses may bid on. For a small contractor, set-asides are the single biggest advantage in federal work: on a small business set-aside, you're not competing with national firms.
Why jobs get set aside
Under the federal "rule of two", a contracting officer generally sets a job aside for small businesses when they expect at least two capable small businesses to bid at a fair price. That's one reason answering a "Sources Sought" notice matters: it tells the agency small firms are interested.
The main types
| Small business set-aside | Any firm that is small under the job's NAICS size standard. The most common type, and the one most small contractors qualify for. |
|---|---|
| HUBZone | Firms certified by the SBA whose principal office is in a Historically Underutilized Business Zone, with at least 35% of employees living in one. Whether you qualify mostly depends on addresses, which you can check on the SBA's HUBZone map. |
| Women-owned (WOSB / EDWOSB) | Firms at least 51% owned and controlled by women, in industries where women are underrepresented. SBA certification is required to bid on these set-asides. |
| Service-disabled veteran-owned (SDVOSB) | Firms at least 51% owned and controlled by service-disabled veterans. Certification goes through the SBA's veteran certification program. |
| 8(a) | An SBA program for firms owned by socially and economically disadvantaged individuals. The program has been under heavy review since 2025; check its current status with the SBA before planning around it. |
Am I "small"?
Size depends on the job's NAICS code, usually measured by average annual revenue. Specialty trade contractors (the 238 codes: roofing, electrical, HVAC and more) have a much lower limit than commercial building or heavy civil contractors. Check the SBA's current table of size standards for your codes. Each notice states the NAICS code and size standard that apply.
How to use set-asides
- Register in SAM.gov (free) and list every NAICS code you actually work in.
- If you might qualify for a certification, apply through the SBA. It's free. Don't pay anyone just for registering or certifying.
- Filter for set-asides you qualify for. On our open jobs board, use the "Who can bid" filter.
- Answer Sources Sought notices in your trade; they're how future jobs get set aside.
Free help is available from APEX Accelerators, government-funded advisors for businesses pursuing government contracts.