Do I need a certification to bid on a total small business set-aside?

No. You need to be small under the SBA size standard for the NAICS code and registered in SAM.gov. Programs like 8(a), HUBZone, WOSB and SDVOSB require SBA certification.

What is the rule of two?

Under FAR Part 19, a contracting officer generally sets work aside for small businesses when they reasonably expect offers from at least two responsible small businesses at fair market prices.

What is a small business set-aside?

A set-aside is a federal contract where the government limits competition to small businesses, or to a specific group of small businesses such as women-owned or veteran-owned firms.

Why set-asides exist

By law, the federal government aims to award at least 23% of all prime contracting dollars to small businesses each year, with further goals of 5% for women-owned small businesses, 5% for service-disabled veteran-owned small businesses and 3% for HUBZone businesses (SBA contracting assistance programs). Set-asides are one of the main tools agencies use to reach those goals.

The "rule of two"

Under FAR Part 19 (Small Business Programs), a contracting officer generally sets an acquisition aside for small businesses when there's a reasonable expectation of offers from at least two responsible small businesses at fair market prices.

Main types of set-asides

Total small business set-aside: open to any business that is small for the NAICS code.
Partial small business set-aside: part of a requirement reserved for small businesses.
8(a): for certified participants in SBA's 8(a) Business Development program.
HUBZone: for certified businesses in Historically Underutilized Business Zones.
WOSB and EDWOSB: for certified women-owned small businesses in designated industries.
SDVOSB: for certified service-disabled veteran-owned small businesses.

Who counts as "small"?

It depends on your industry. SBA sets a size standard for each NAICS code, usually based on average annual receipts or number of employees. Check yours with the SBA size standards.

How to get started

Find your NAICS codes and confirm you're small for them.
Register your entity on SAM.gov (free) to get a Unique Entity ID.
Apply for any SBA certifications you qualify for through the SBA Certifications portal.
Watch for opportunities. Our SAM.gov search guide shows how, or get our free daily digest.

Free one-on-one help is available from APEX Accelerators (free government contracting help) and Find your SBA district office.

Frequently asked questions

What is a small business set-aside?: A federal contract where competition is limited to small businesses, or to a specific group of small businesses such as 8(a), HUBZone, women-owned or service-disabled veteran-owned firms.
Do I need a certification to bid on a total small business set-aside?: No. You need to be small under the SBA size standard for the NAICS code and registered in SAM.gov. Programs like 8(a), HUBZone, WOSB and SDVOSB require SBA certification.
What is the rule of two?: Under FAR Part 19, a contracting officer generally sets work aside for small businesses when they reasonably expect offers from at least two responsible small businesses at fair market prices.

SetAside Signal is an independent publication, not a government agency, and this isn't legal advice. Rules change, so confirm details at sba.gov, sam.gov and acquisition.gov. Reviewed Oct 15, 2026.