Parity, Not Clarity, In Proposed Set-Aside Rule A proposed rule would establish parity for 8(a), HUBZone and service-disabled veteran-owned businesses, but it provides no clarity in how to decide which of the programs is first in line for set-asides. “There is no order of precedence among the 8(a), HUBZone, or SDVOSB Programs,” the Federal Acquisition Regulation councils stated in the proposed rule published in the March 10 Federal Register. The councils said they were adopting SBA’s interpretation of the law. The councils said, “SBA believes that progress in fulfilling the various small business goals, as well as other factors such as the results of market research and the acquisition history, should be considered in making a decision as to which program to use for the acquisition.” All three programs must be considered before a contract is set aside for other small businesses. The rule does nothing to settle the long-running debate over which program has top priority. The House passed legislation last year that would give 8(a) and SDV companies equal priority, ahead of HUBZone firms. The Senate has not considered the bill. Democrats have generally favored the 8(a) program, which was originally designed to develop minority-owned firms. Most Republicans support parity for the HUBZone program, which was created by a Republican-controlled Congress to boost employment in poor neighborhoods. When Congress established the SDV set-aside in 2004, SBA said all three programs should have equal priority. (SAA, 5/14/2004) The proposed rule is FAR Case 2006-034. Comments are due May 9. For a legal analysis of the rule, see separate story.