Subpart 19.5 - Small Business Total SetAsides, Partial Set-Asides, and Reserves

Parent topic: Part 19 - Small Business Programs

19.501 General.

(a)

(1) The purpose of small business set-asides is to award certain acquisitions exclusively to small

business concerns. A "set-aside for small business" is the limiting of an acquisition exclusively for

participation by small business concerns. A small business set-aside may be open to any of the small

business concerns identified at 19.000(a)(3). A small business set-aside of a single acquisition or a

class of acquisitions may be total or partial.

(2) The purpose of small business reserves is to award one or more multiple-award contracts to any

of the small business concerns identified at 19.000(a)(3), under a full and open competition. A small

business reserve shall not be used when the acquisition can be set aside, in total or in part.

(b) The contracting officer makes the determination to make a small business set-aside, in total or in

part, or a reserve. The Small Business Administration (SBA) procurement center representative

(PCR) (or, if a PCR is not assigned, see 19.402(a)) may make a recommendation to the contracting

officer.

(c) The contracting officer shall review acquisitions to determine if they can be set aside, in total or

in part, or reserved for small business, giving consideration to the recommendations of agency

personnel in the Office of Small and Disadvantaged Business Utilization, or for the Department of

Defense, in the Office of Small Business Programs. Agencies may establish threshold levels for this

review depending upon their needs.

(d) At the request of an SBA PCR (or, if a PCR is not assigned, see 19.402(a)), the contracting officer

shall make available for review at the contracting office (to the extent of the SBA representative's

security clearance) any proposed acquisition in excess of the micro-purchase threshold.

(e) All solicitations involving set-asides, in total or in part, or reserves shall specify the NAICS

code(s) and corresponding size standard(s) (see 19.102).

(f) Except as authorized by law, a contract may not be awarded as a result of a small business setaside if the cost to the awarding agency exceeds the fair market price.

(g) For the applicability of the limitations on subcontracting and the nonmanufacturer rule, see

19.505.

19.502 Setting aside acquisitions.
19.502-1 Requirements for setting aside acquisitions.

(a) The contracting officer shall set aside an individual acquisition or class of acquisitions for

competition among small businesses when-

(1) It is determined to be in the interest of maintaining or mobilizing the Nation’s full productive

capacity, war or national defense programs; or

(2) Assuring that a fair proportion of Government contracts in each industry is placed with small

business concerns; and the circumstances described in 19.502-2 or 19.502-3(a) exist.

(b) The requirement in paragraph (a) of this section does not apply to purchases at or below the

micro-purchase threshold, or purchases from required sources under part 8(e.g., Committee for

Purchase From People Who are Blind or Severely Disabled).

19.502-2 Total small business set-asides.

(a) Before setting aside an acquisition under this paragraph, refer to 19.203(b). Each acquisition of

supplies or services that has an anticipated dollar value above the micro-purchase threshold, but not

over the simplified acquisition threshold, shall be set aside for small business unless the contracting

officer determines there is not a reasonable expectation of obtaining offers from two or more

responsible small business concerns that are competitive in terms of fair market prices, quality, and

delivery. If the contracting officer receives only one acceptable offer from a responsible small

business concern in response to a set-aside, the contracting officer should make an award to that

firm. If the contracting officer receives no acceptable offers from responsible small business

concerns, the set-aside shall be withdrawn and the requirement, if still valid, shall be resolicited on

an unrestricted basis. The small business set-aside does not preclude the award of a contract as

described in 19.203.

(b) Before setting aside an acquisition under this paragraph, refer to 19.203(c). The contracting

officer shall set aside any acquisition over the simplified acquisition threshold for small business

participation when there is a reasonable expectation that-

(1) Offers will be obtained from at least two responsible small business concerns; and

(2) Award will be made at fair market prices. Total small business set-asides shall not be made

unless such a reasonable expectation exists (see 19.502-3 for partial set-asides). Although past

acquisition history and market research of an item or similar items are always important, these are

not the only factors to be considered in determining whether a reasonable expectation exists. In

making research and development small business set-asides, there must also be a reasonable

expectation of obtaining from small businesses the best scientific and technological sources

consistent with the demands of the proposed acquisition for the best mix of cost, performances, and

schedules.

19.502-3 Partial set-asides of contracts other than multiple-award contracts.

(a) The contracting officer shall set aside a portion or portions of an acquisition, except for
construction, for exclusive small business participation when—

(1) Market research indicates that a total set-aside is not appropriate (see 19.502-2);

(2) The requirement can be divided into distinct portions;

(3) The acquisition is not subject to simplified acquisition procedures;

(4) Two or more responsible small business concerns are reasonably expected to submit offers on

the set-aside portion or portions of the acquisition that are competitive in terms of fair market

prices, quality, and delivery;

(5) The specific program eligibility requirements identified in this part apply; and

(6) The solicitation will result in a contract other than a multiple-award contract (see 2.101 for

definition of multiple-award contract).

(b) When the contracting officer determines that a requirement is to be partially set aside, the

solicitation shall identify which portion or portions are set aside and not set aside.

(c) The contracting officer shall specify in the solicitation how offers shall be submitted with regard

to the set-aside and non-set-aside portions.

(d) Offers received from concerns that do not qualify as small business concerns shall be considered

nonresponsive and shall be rejected on the set-aside portion of partial set-asides. However, before

rejecting an offer otherwise eligible for award because of questions concerning the size

representation, an SBA determination must be obtained (see subpart 19.3).

19.502-4 Partial set-asides of multiple-award contracts.

(a) In accordance with section 1331 of the Small Business Jobs Act of 2010 ( 15 U.S.C. 644(r)(1)),

contracting officers may, at their discretion, set aside a portion or portions of a multiple-award

contract, except for construction, for any of the small business concerns identified at 19.000(a)(3)

when—

(1) Market research indicates that a total set-aside is not appropriate (see 19.502-2);

(2) The requirement can be divided into distinct portions;

(3) The acquisition is not subject to simplified acquisition procedures;

(4) Two or more responsible small business concerns are reasonably expected to submit an offer on

the set-aside portion or portions of the acquisition that are competitive in terms of fair market

prices, quality, and delivery; and

(5) The specific program eligibility requirements identified in this part apply.

(b) When the contracting officer determines that a requirement is to be partially set aside, the

solicitation shall identify which portion or portions are set aside and not set aside.

(c) The contracting officer shall specify in the solicitation how offers shall be submitted with regard

to the set-aside and non-set-aside portions.
(d) Offers received from concerns that do not qualify as small business concerns shall be considered

nonresponsive and shall be rejected on the set-aside portion of partial set-asides. However, before

rejecting an offer otherwise eligible for award because of questions concerning the size

representation, an SBA determination must be obtained (see subpart 19.3).

19.502-5 Insufficient reasons for not setting aside an acquisition.

None of the following is, in itself, sufficient cause for not setting aside an acquisition:

(a) A large percentage of previous contracts for the required item(s) has been placed with small

business concerns.

(b) The item is on an established planning list under the Industrial Readiness Planning Program.

However, a total small business set-aside shall not be made when the list contains a large business

Planned Emergency Producer of the item(s) who has conveyed a desire to supply some or all of the

required items.

(c) The item is on a Qualified Products List. However, a total small business set-aside shall not be

made if the list contains the products of large businesses unless none of the large businesses desire

to participate in the acquisition.

(d) A period of less than 30 days is available for receipt of offers.

(e) The acquisition is classified.

(f) Small business concerns are already receiving a fair proportion of the agency’s contracts for

supplies and services.

(g) A class small business set-aside of the item or service has been made by another contracting

activity.

(h) A "brand name or equal" product description will be used in the solicitation.

19.502-6 Setting aside a class of acquisitions for small business.

(a) A class of acquisitions of selected products or services, or a portion of the acquisitions, may be

set aside for exclusive participation by small business concerns if individual acquisitions in the class

will meet the criteria in 19.502-1, 19.502-2, or 19.502-3(a). The determination to make a class small

business set-aside shall not depend on the existence of a current acquisition if future acquisitions

can be clearly foreseen.

(b) The determination to set aside a class of acquisitions for small business may be either unilateral

or joint.

(c) Each class small business set-aside determination shall be in writing and must-

(1) Specifically identify the product(s) and service(s) it covers;

(2) Provide that the set-aside does not apply to any acquisition automatically set aside under

19.502-2(a).
(3) Provide that the set-aside applies only to the (named) contracting office(s) making the

determination; and

(4) Provide that the set-aside does not apply to any individual acquisition if the requirement is not

severable into two or more economic production runs or reasonable lots, in the case of a partial class

set-aside.

(d) The contracting officer shall review each individual acquisition arising under a class small

business set-aside to identify any changes in the magnitude of requirements, specifications, delivery

requirements, or competitive market conditions that have occurred since the initial approval of the

class set-aside. If there are any changes of such a material nature as to result in probable payment

of more than a fair market price by the Government or in a change in the capability of small business

concerns to satisfy the requirements, the contracting officer may withdraw or modify (see

19.502-9(a)) the unilateral or joint set-aside by giving written notice to the SBA PCR (or, if a PCR is

not assigned, see 19.402(a)) stating the reasons.

19.502-7 Inclusion of Federal Prison Industries, Inc.

When using competitive procedures in accordance with 8.602(a)(4), agencies shall include Federal

Prison Industries, Inc. (FPI), in the solicitation process and consider a timely offer from FPI.

19.502-8 Rejecting Small Business Administration recommendations.

(a) If the contracting officer rejects a recommendation of the SBA, written notice shall be furnished

to the appropriate SBA representative within 5 working days of the contracting officer's receipt of

the recommendation.

(b) The SBA PCR (or, if a PCR is not assigned, see 19.402(a)) may appeal the contracting officer's

rejection to the head of the contracting activity within 2 working days after receiving the notice

(except see 19.1305(d), 19.1405(e), and 19.1505(i)). The head of the contracting activity shall

render a decision in writing, and provide it to the SBA representative within 7 working days.

Pending issuance of a decision to the SBA representative, the contracting officer shall suspend

action on the acquisition.

(c) If the head of the contracting activity agrees that the contracting officer’s rejection was

appropriate-

(1) Within 2 working days, the SBA procurement center representative (or, if a procurement center

representative is not assigned, see 19.402(a)) may request the contracting officer to suspend action

on the acquisition until the SBA Administrator appeals to the agency head (see paragraph (f) of this

section); and

(2) The SBA must be allowed 15 working days after making such a written request, within which the

Administrator of SBA–

(i) May appeal to the Secretary of the Department concerned; and

(ii) Must notify the contracting officer whether the further appeal has, in fact, been taken. If

notification is not received by the contracting officer within the 15-day period, it is deemed that the

SBA request to suspend the contract action has been withdrawn and that an appeal to the Secretary
was not taken.

(d) When the contracting officer has been notified within the 15-day period that the SBA has

appealed to the agency head, the head of the contracting activity (or designee) shall forward

justification for its decision to the agency head. The contracting officer shall suspend contract action

until notification is received that the SBA appeal has been settled.

(e) The agency head shall reply to the SBA within 30 working days after receiving the appeal. The

decision of the agency head shall be final.

(f) A request to suspend action on an acquisition need not be honored if the contracting officer

determines that proceeding to contract award and performance is in the public interest. The

contracting officer shall include in the contract file a statement of the facts justifying the

determination, and shall promptly notify the SBA representative of the determination and provide a

copy of the justification.

19.502-9 Withdrawing or modifying small business set-asides.

(a) If, before award of a contract involving a total or partial small business set-aside, the contracting

officer considers that award would be detrimental to the public interest (e.g., payment of more than

a fair market price), the contracting officer may withdraw the small business set-aside, whether it

was unilateral or joint. The contracting officer shall initiate a withdrawal of an individual total or

partial small business set-aside, by giving written notice to the agency small business specialist and

the SBA PCR (or, if a PCR is not assigned, see 19.402(a)) stating the reasons. In a similar manner,

the contracting officer may modify a unilateral or joint class small business set-aside to withdraw

one or more individual acquisitions.

(b) If the agency small business specialist does not agree to a withdrawal or modification, the case

shall be promptly referred to the SBA PCR (or, if a PCR is not assigned, see 19.402(a)) for review.

(c) The contracting officer shall prepare a written statement supporting any withdrawal or

modification of a small business set-aside and include it in the contract file.

19.502-10 Automatic dissolution of a small business set-aside.

(a) If a small business set-aside acquisition or portion of an acquisition is not awarded, the unilateral

or joint determination to set the acquisition aside is automatically dissolved for the unawarded

portion of the set-aside. The required supplies and/or services for which no award was made may be

acquired by sealed bidding or negotiation, as appropriate.

(b) Before issuing a solicitation for the items called for in a small business set-aside that was

dissolved, the contracting officer shall ensure that the delivery schedule is realistic in the light of all

relevant factors, including the capabilities of small business concerns.

19.502-11 Solicitation notice regarding administration of change orders for

construction.

See 36.211 for the requirement to provide a notice to offerors regarding definitization of equitable
adjustments for change orders under construction contracts.

19.503 Reserves.

(a) In accordance with section 1331 of the Small Business Jobs Act of 2010 (15 U.S.C. 644(r)(3)) and

13 CFR 125.2(e)(4), contracting officers may, at their discretion when conducting multiple-award

procurements using full and open competition, reserve one or more contract awards for any of the

small business concerns identified in 19.000(a)(3), when market research indicates—

(1) A total set-aside is not feasible because there is no reasonable expectation of receiving offers that

are competitive in terms of fair market prices, quality, and delivery from at least two responsible

small business concerns identified in 19.000(a)(3), that can perform the entire requirement; and

(2) A partial set-aside is not feasible because—

(i) The contracting officer is unable to divide the requirement into distinct portions; or

(ii) There is no reasonable expectation that at least two responsible small business concerns

identified in 19.000(a)(3) can perform any portion of the requirement competitively in terms of fair

market price, quality, and delivery.

(b) A reserve will result in one of the following:

(1) One or more contract awards to any one or more types of small business concerns identified in

19.000(a)(3).

(2) In the case of a solicitation of a bundled requirement that will result in a multiple-award

contract, an award to one or more small businesses with a Small Business Teaming Arrangement.

(c) The specific program eligibility requirements identified in this part apply.

(d) The limitations on subcontracting and the nonmanufacturer rule (see 19.505) do not apply to

reserves at the contract level, but shall apply to orders that are set aside or issued directly to one

small business concern under 19.504(c)(1)(ii).

19.504 Orders under multiple-award contracts.

(a) General. In accordance with section 1331 of the Small Business Jobs Act of 2010 ( 15 U.S.C.

644(r)(2)), contracting officers may, at their discretion, set aside orders placed under multiple-award

contracts for any of the small business concerns identified in 19.000(a)(3).

(1) The contracting officer shall state in the solicitation and resulting contract whether order setasides will be discretionary or mandatory when the conditions in 19.502-2 are met at the time of

order set-aside, and the specific program eligibility requirements, as applicable, are also then met.

(2) When setting aside an order at or below the simplified acquisition threshold, the contracting

officer may set aside the order for any of the small business concerns identified in 19.000(a)(3).

(3) When setting aside an order above the simplified acquisition threshold, the contracting officer
shall first consider setting aside the order for the small business socioeconomic contracting

programs (i.e., 8(a), HUBZone, service-disabled veteran-owned small business, and women-owned

small business) before considering a small business set-aside.

(4) The contracting officer shall comply with the specific program eligibility requirements identified

in this part in addition to the ordering procedures for a multiple-award contract (for orders placed

under the Federal Supply Schedules Program, see 8.405-5; for orders placed under all other

multiple-award contracts, see 16.505).

(b) Orders under set-aside contracts—

(1) Orders under total set-aside contracts. Under a total small business set-aside, contracting

officers may at their discretion set aside orders for any of the small business socioeconomic

concerns identified in 19.000(a)(3) provided that the requirements at paragraph (a) of this section,

19.502-2(b), and the specific program eligibility requirements are met.

(2) Orders under partial set-aside contracts.

(i) Only small business concerns awarded contracts for the portion(s) that were set aside under the

solicitation for the multiple-award contract may compete for orders issued under those portion(s).

(ii) Small business awardees may compete against other than small business awardees for an order

issued under the portion of the multiple-award contract that was not set aside, if the small business

received a contract award for the non-set-aside portion.

(c) Orders under reserves.

(1) The contracting officer may—

(i) Set aside orders for any of the small business concerns identified in 19.000(a)(3) when there are

two or more contract awards for that type of small business concern; or

(ii) Issue orders directly to one small business concern for work that it can perform when there is

only one contract award to any one type of small business concern identified in 19.000(a)(3).

(2) Small business awardees may compete against other than small business awardees for an order

that is not set aside if the small business received a contract award for the supplies or services being

ordered.

19.505 Limitations on subcontracting and nonmanufacturer

rule.

(a) Applicability.

(1)This section applies to small business set-asides above the simplified acquisition threshold and

orders issued directly to a small business in accordance with 19.504(c)(1)(ii) above the simplified

acquisition threshold.
(2)This section applies, regardless of dollar value, to the following awards under subparts 19.8,

19.13, 19.14, and 19.15:

(i)Contracts that are set aside.

(ii)Contracts that are awarded on a sole-source basis.

(iii)Orders that are set-aside as described in 8.405-5 and 16.505(b)(2)(i)(F).

(iv)Orders that are issued directly in accordance with 19.504(c)(1)(ii).

(v)Contracts that use the HUBZone price evaluation preference to award to a HUBZone small

business concern unless the concern waived the evaluation preference.

(b)

(1) Limitations on subcontracting. A small business concern subject to the limitations on

subcontracting is required to comply with the following:

(i)For a contract or order assigned a North American Industry Classification System (NAICS) code

for services (except construction), the concern will not pay more than 50 percent of the amount paid

by the Government for contract performance to subcontractors that are not similarly situated

entities. Any work that a similarly situated entity further subcontracts will count towards the

concern's 50 percent subcontract amount that cannot be exceeded. When a contract includes both

services and supplies, the 50 percent limitation shall apply only to the service portion of the

contract.

(ii)For a contract or order assigned a NAICS code for supplies or products (other than a

procurement from a nonmanufacturer of such supplies or products), the concern will not pay more

than 50 percent of the amount paid by the Government for contract performance, excluding the cost

of materials, to subcontractors that are not similarly situated entities. Any work that a similarly

situated entity further subcontracts will count towards the concern's 50 percent subcontract amount

that cannot be exceeded. When a contract includes both supplies and services, the 50 percent

limitation shall apply only to the supply portion of the contract.

(iii)For a contract or order assigned a NAICS code for general construction, the concern will not pay

more than 85 percent of the amount paid by the Government for contract performance, excluding

the cost of materials, to subcontractors that are not similarly situated entities. Any work that a

similarly situated entity further subcontracts will count towards the concern's 85 percent

subcontract amount that cannot be exceeded.

(iv)For a contract or order assigned a NAICS code for construction by special trade contractors, the

concern will not pay more than 75 percent of the amount paid by the Government for contract

performance, excluding the cost of materials, to subcontractors that are not similarly situated

entities. Any work that a similarly situated entity further subcontracts will count towards the

concern’s 75 percent subcontract amount that cannot be exceeded.

(2) Compliance period. A small business contractor subject to the limitations on subcontracting is

required to comply with the limitations on subcontracting—

(i)For a contract that has been set aside, either by the end of the base term and then by the end of

each subsequent option period, or by the end of the performance period for each order issued under
the contract, at the contracting officer's discretion; and

(ii)For an order set aside under a contract as described in 19.504(a), (b), or (c)(1)(i) or an order

issued in accordance with 19.504(c)(1)(ii), by the end of the performance period for the order.

(c) Nonmanufacturer rule. The nonmanufacturer rule applies to nonmanufacturers in accordance

with paragraph (c)(1) of this section and to kit assemblers who are nonmanufacturers in accordance

with paragraph (c)(2) of this section.

(1) Nonmanufacturers. Any concern, including a supplier, that is awarded a contract or order subject

to the nonmanufacturer rule, other than a construction or service acquisition, but proposes to

furnish an end item that it did not itself manufacture, process, or produce (i.e., a

“nonmanufacturer”), is required to—

(i)Provide an end item that a small business has manufactured, processed, or produced in the United

States or its outlying areas (see paragraph (c)(3) of this section for determining the manufacturer of

an end item);

(ii)Not exceed 500 employees, or 150 employees for information technology value-added resellers

under NAICS code 541519;

(iii)Be primarily engaged in the retail or wholesale trade and normally sell the type of item being

supplied; and

(iv)Take ownership or possession of the item(s) with its personnel, equipment, or facilities in a

manner consistent with industry practice; for example, providing storage, transportation, or

delivery.

(2) Kit assemblers. When the end item being acquired is a kit of supplies—

(i)The offeror may not exceed 500 employees, or 150 employees for information technology valueadded resellers under NAICS code 541519; and

(ii)At least 50 percent of the total cost of the components of the kit shall be manufactured,

processed, or produced in the United States or its outlying areas by business concerns that are small

under the size standards for the NAICS codes of the components of the kit.

(3) Identification of manufacturers. For the purposes of applying the nonmanufacturer rule, the

manufacturer, processor, or producer is the concern that manufactures, processes, or produces an

end item with its own facilities (i.e., transforms raw materials, miscellaneous parts, or components

into the end item being acquired). See 13 CFR 121.406(b)(2).

(4) Waiver of nonmanufacturer rule.

(i)The SBA may grant an individual or a class waiver to the nonmanufacturer rule to allow a

nonmanufacturer to provide an end item of an other than small business without regard to the place

of manufacture, processing, or production.

(A) Class waiver. An agency may request that SBA waive the requirement at paragraph (c)(1)(i) or

(c)(2)(ii) of this section for a specific product or class of products. See 13 CFR 121.1202 for an

explanation of when SBA will issue a class waiver.
(B) Individual waiver. The contracting officer may also request a waiver of the requirements at

paragraph (c)(1)(i) or (c)(2)(ii) of this section for an individual acquisition once the contracting

officer determines through market research that no known small business manufacturers,

processors, or producers in the United States or its outlying areas can reasonably be expected to

offer an end item meeting the requirements of the solicitation. This type of waiver is known as an

individual waiver and would apply only to a specific acquisition.

(ii) Waiver requests. Requests for waivers shall include the content specified at 13 CFR 121.1204

and shall be sent via email to nmrwaivers@sba.gov or by mail to the—Director, Office of Government

Contracting, Small Business Administration, 409 Third Street SW, Washington, DC 20416.

(iii) List of class waivers. For the most current listing of class waivers, contact the SBA Office of

Government Contracting or go to

https://www.sba.gov/document/support-non-manufacturer-rule-class-waiver-list.

(iv) Notification of waiver. The contracting officer shall provide potential offerors with written

notification of any class or individual waiver in the solicitation. If providing the notification after

solicitation issuance, the contracting officer shall provide potential offerors a reasonable amount of

additional time to respond to the solicitation.

(5) Multiple-item acquisitions.

(i)If at least 50 percent of the estimated contract value is composed of items that are manufactured,

processed, or produced by small business concerns, then a waiver of the nonmanufacturer rule is not

required. There is no requirement that each item acquired in a multiple-item acquisition be

manufactured, processed, or produced by a small business in the United States or its outlying areas.

(ii)If more than 50 percent of the estimated acquisition cost is composed of items manufactured,

processed, or produced by other than small business concerns, then a waiver is required. SBA may

grant an individual waiver for one or more items in an acquisition in order to ensure that at least 50

percent of the cost of the items to be supplied by the nonmanufacturer comes from small business

manufacturers, processors, and producers in the United States or its outlying areas or are subject to

a waiver.

(iii)If a small business offeror is both a manufacturer of item(s) and a nonmanufacturer of other

item(s) for an acquisition, the contracting officer shall apply the manufacturer size standard.

19.506 Documentation requirements.

(a)

(1) The contracting officer shall document the rationale when a contract is not totally set aside for

small business in accordance with 19.502-2.

(2) The contracting officer shall document the rationale when a multiple-award contract is not

partially set aside, not reserved, and does not allow for setting aside of orders, when these

authorities could have been used.

(b) If applicable, the documentation shall include the rationale for not accepting the
recommendations made by the agency Director of the Office of Small and Disadvantaged Business

Utilization, or, for the Department of Defense, the Director of the Office of Small Business Programs,

or the Director's designee, as to whether a particular acquisition should be awarded under subparts

19.5, 19.8, 19.13, 19.14, or 19.15.

(c) Documentation is not required if a contract award is anticipated to a small business under

subpart 19.5, 19.8, 19.13, 19.14, or 19.15.

19.507 Solicitation provisions and contract clauses.

(a) [Reserved]

(b) [Reserved]

(c) The contracting officer shall insert the clause at 52.219-6, Notice of Total Small Business SetAside, in solicitations and contracts involving total small business set-asides. This includes multipleaward contracts when orders may be set aside for any of the small business concerns identified in

19.000(a)(3), as described in 8.405-5 and 16.505(b)(2)(i)(F). Use the clause at 52.219-6 with its

Alternate I when including FPI in the competition in accordance with 19.502-7.

(d) The contracting officer shall insert the clause at 52.219-7, Notice of Partial Small Business SetAside, in solicitations and contracts involving partial small business set-asides. This includes part or

parts of multiple-award contracts, including those described in 38.101. Use the clause at 52.219-7

with its Alternate I when including FPI in the competition in accordance with 19.502-7.

(e) The contracting officer shall insert the clause at 52.219-14, Limitations on Subcontracting, in

solicitations and contracts—

(1)For supplies, services, and construction, if any portion of the requirement is to be set aside for

small business and the contract amount is expected to exceed the simplified acquisition threshold,

and in any solicitations and contracts that are set aside or awarded on a sole-source basis in

accordance with subparts 19.8, 19.13, 19.14, or 19.15, regardless of dollar value. This includes

multiple-award contracts when orders may be set aside for small business concerns, as described in

8.405-5 and 16.505(b)(2)(i)(F), and when orders may be issued directly to a small business concern

as described in 19.504(c)(1)(ii). For contracts that are set aside, the contracting officer shall indicate

in paragraph (f) of the clause whether compliance with the limitations on subcontracting is required

at the contract or order level;

(2) Using the HUBZone price evaluation preference. However, if the prospective contractor waived

the use of the price evaluation preference, or is an other than small business, do not insert the

clause in the resultant contract.

(f)

(1) The contracting officer shall insert the clause at 52.219-13, Notice of Set-Aside of Orders, in all

solicitations for multiple-award contracts under which orders may be set aside for any of the small

business concerns identified in 19.000(a)(3), and all contracts awarded from such solicitations.

(2) The contracting officer shall insert the clause at 52.219-13 with its Alternate I in all full and open

solicitations and contracts for multiple-award contracts under which orders will be set aside for any
of the small business concerns identified in 19.000(a)(3) if the conditions in 19.502-2 are met at the

time of order set-aside, and the specific program eligibility requirements, as applicable, are also

then met.

(g)

(1) The contracting officer shall insert the provision at 52.219-31, Notice of Small Business Reserve,

in solicitations for multiple-award contracts that have reserves.

(2) The contracting officer shall insert the clause at 52.219-32 Orders Issued Directly Under Small

Business Reserves, in solicitations and the resulting multiple-award contracts that have reserves.

(h)

(1) The contracting officer shall insert the clause at 52.219-33, Nonmanufacturer Rule, in

solicitations and contracts (including multiple-award contracts when orders may be set aside for

small business concerns as described in 8.405-5 and 16.505(b)(2)(i)(F), and when orders may be

issued directly to a small business concern as described in 19.504(c)(1)(ii)), when—

(i)the item being acquired has been assigned a manufacturing or supply NAICS code, and–

(ii)

(A)Any portion of the requirement is to be–

(1)Set aside for small business and is expected to exceed the simplified acquisition threshold; or

(2)Set aside or awarded on a sole-source basis in accordance with subparts 19.8, 19.13, 19.14, or

19.15, regardless of dollar value; or

(B) Using the HUBZone price evaluation preference. However, if the prospective contractor waived

the use of the price evaluation preference, or is an other than small business, do not insert the

clause in the resultant contract.

(2)The contracting officer shall not insert the clause at 52.219-33 when the Small Business

Administration has waived the nonmanufacturer rule (see 19.505(c)(4)).