Set Aside Contract Definition: An Overview
A set aside contract is a type of government contract that is specifically designated for small businesses. It is created to give small businesses a fair chance to compete in the government contract space and is an excellent way for small businesses to grow their business. In this article, we will explore what set aside contract definition means, how set aside contracts work, and what small businesses should do to qualify for a set aside contract.
What is a Set Aside Contract?
Set aside contracts are contracts that are exclusively designated for small businesses. These contracts are usually set aside by the government, or a specific agency within the government, in order to promote small business growth and competition. Set aside contracts can be found at all levels of government, from federal to state and local.
How Does a Set Aside Contract Work?
To win a set aside contract, a small business must successfully win a bid for the contract. This means that the business must propose a bid for the project that meets the requirements of the government agency issuing the contract. Once the bids are evaluated, the government agency will award the set aside contract to the winning small business.
Qualifying for a Set Aside Contract
To qualify for a set aside contract, a small business must meet certain criteria set forth by the government agency who is issuing the contract. In general, small businesses must meet the following criteria:
– Have a small business designation as defined by the Small Business Administration.
– Be located in the same area as where the contract is being issued.
– Have the required experience, skill, and capability to perform the work specified in the contract.
Benefits of Winning a Set Aside Contract
Winning a set aside contract can provide significant benefits to a small business, including:
– A steady stream of revenue: Set aside contracts usually last for longer periods of time than other government contracts, providing a steady stream of income for small businesses.
– Increased exposure: Winning a set aside contract can provide small businesses with a lot of visibility, which can lead to more business opportunities down the road.
– Increased business growth: By winning a set aside contract, a small business can grow its business by increasing its customer base and expanding its reach.
In conclusion, set aside contract definition refers to government contracts that are exclusively designated for small businesses. These contracts provide small businesses with an opportunity to compete in the government contract space and can provide significant benefits, such as a steady stream of revenue, increased exposure, and increased business growth. Small businesses looking to qualify for a set aside contract must meet certain criteria set forth by the government agency issuing the contract.