Set-Aside Proposed for Mid-Tier IT Contractors Legislation has been introduced in Congress to create a pilot set-aside program for mid-tier IT contractors. Rep. Gerry Connolly, D-VA, proposed the Small Business Growth Act, H.R. 1812. It would direct GSA to create the five-year pilot. Under terms of the bill, GSA would offer a set-aside contract to mid-tier firms only if the contracting officer determined that two small businesses were not available to compete for the work. A mid-tier company is defined as one that is not small, has no more than 1,500 employees and is a mentor to a small business in GSA’s mentor-protégé program. In a letter to congressional colleagues, Connolly wrote, “We now have a scenario in which those small businesses, sometimes known as mid-tier companies, are outgrowing the traditional small business pool, yet they’re not quite big enough to compete with the large contractors that dominate the marketplace. The success of these small businesses is what’s helping to drive the economic recovery, and the loss of incentives threatens not only their ability to compete but also their ability to hire.” Connolly said the bill has the support of the Professional Services Council, a contractor group. While many service contractors have urged that the government create a preference for firms that have outgrown small business status, there is now no legal authority for assisting mid-tier companies and no legal definition of a mid-tier company. Many IT contractors were disappointed when SBA proposed increasing the size standard in that industry only to $25.5 million, from the present $25 million. Companies in some service industries say the increasing size of federal contracts means they can exceed their size standard after winning one or two awards.