23% of federal contracts go to small business.
Federal law requires at least 23% of prime contract dollars be awarded to small businesses each fiscal year. Four set-aside programs reserve specific opportunities: 8(a), HUBZone, SDVOSB, and WOSB. Complete guide with eligibility, application, and winning strategies.
8(a) Business Development Program
8(a)The 8(a) Business Development Program is a nine-year program created to help firms owned and controlled by socially and economically disadvantaged individuals gain access to the federal marketplace. N...
Eligibility Requirements
- Qualify as a small business
- Be unconditionally owned by U.S. citizens
- Be socially and economically disadvantaged
- Demonstrate good character
- Have potential for success
Key Benefits
- Sole-source contracts up to $4.5 million (manufacturing up to $7 million)
- Access to competitive 8(a) set-aside contracts
- Business development assistance from SBA
- Mentor-Protégé Program eligibility
Historically Underutilized Business Zone (HUBZone) Program
HUBZoneThe HUBZone program helps small businesses in urban and rural communities gain preferential access to federal procurement opportunities. By locating their business in a HUBZone and employing local res...
Eligibility Requirements
- Principal office in a HUBZone
- At least 35% of employees reside in a HUBZone
- Be a small business
- Be owned and controlled by U.S. citizens
Key Benefits
- Sole-source contracts up to $4.5 million (manufacturing up to $7 million)
- Access to HUBZone set-aside contracts
- 10% price evaluation preference in full and open competitions
- Subcontracting opportunities with large primes needing HUBZone credit
Service-Disabled Veteran-Owned Small Business (SDVOSB) Program
SDVOSBThe SDVOSB program provides contracting opportunities for small businesses owned and controlled by service-disabled veterans. This program recognizes the sacrifices made by veteran entrepreneurs with ...
Eligibility Requirements
- Owned by service-disabled veteran(s) with 51%+ ownership
- Service-disabled veteran must manage day-to-day operations
- Be a small business
- VA verification required for VA contracts
Key Benefits
- Sole-source contracts up to $4.5 million (manufacturing up to $7 million)
- SDVOSB set-aside contracts at all federal agencies
- VA Vets First preference (VA SDVOSB/VOSB contracting priority)
- Access to veteran-specific GWACs like VETS 2
Women-Owned Small Business (WOSB) Program
WOSB/EDWOSBThe Women-Owned Small Business Federal Contracting Program provides set-aside contracts for women-owned small businesses and economically disadvantaged women-owned small businesses (EDWOSB). This prog...
Eligibility Requirements
- At least 51% owned by women who are U.S. citizens
- Women must manage day-to-day operations
- Be a small business
- SBA certification required (no longer self-certification)
Key Benefits
- WOSB set-aside contracts (competitive)
- EDWOSB sole-source contracts up to $4.5 million (manufacturing up to $7 million)
- EDWOSB set-aside contracts
- Access in underrepresented industries
Veteran-Owned Small Business (VOSB) Program
VOSBThe VOSB program provides contracting opportunities for small businesses owned and controlled by veterans who do not have a service-connected disability rating. While VOSB does not have a government-w...
Eligibility Requirements
- At least 51% owned by veteran(s)
- Veteran must manage day-to-day operations
- Be a small business
- Honorable discharge required
Key Benefits
- VA Vets First contracting priority (VA contracts)
- Access to VETS 2 GWAC
- Marketing advantage as veteran-owned
- Subcontracting opportunities
How to Get Started with Small Business Federal Contracting
Register in SAM.gov
Create your System for Award Management (SAM) registration. This is required for all federal contractors.
Determine Size Status
Check SBA size standards for your NAICS codes to confirm you qualify as a small business.
Apply for Certifications
Apply for relevant certifications like 8(a), HUBZone, SDVOSB, or WOSB through the SBA.
Find Opportunities
Search SAM.gov for set-aside opportunities matching your certifications and capabilities.
Small business pursuing a set-aside contract?
Bidara ingests your capability statement, DUNS, CAGE code, NAICS, and certifications automatically. Book a 30-minute walkthrough to see Bidara analyze a set-aside RFP live and generate a compliant first draft. Flat-rate pricing at $299/mo fits small-business budgets.