Set-Aside Alert research:

A slow fade for ‘emerging’ and ‘very small’ business set-asides

      Set-asides for emerging small businesses and very small businesses were officially phased out years ago. But apparently the preferences keep clinging on.

      The “Emerging Small Business” and the “Very Small Business” set-aside programs were demonstration programs that were repealed several years ago. Even so, opportunities continue to pop up on the Federal Business Opportunities website to this day.

      The “Emerging Small Business” set-aside was created nearly a decade ago under the Small Business Competitiveness Demonstration Program. In its heyday in fiscal 2009 and 2010, it was generating over 700 contracts a year.

      Since the program was terminated in fiscal 2010, the number of “emerging small business” set-asides in each fiscal year has shrunk dramatically, from 744 in 2010, to 286 in 2011, 148 in 2012, 62 in 2013, 43 in 2014, 5 in 2015, 9 in 2016, 8 in l 2017 and one in 2018.

      At the same time, solicitations and sources sought notices continue to show up on FBO.gov. As of last week, there were 37 such opportunities for emerging companies.

      The “very small” program was ended in 2005, and a recent search of USASpending.gov showed no contracts awarded under “very small” set-asides since fiscal 2008.

      Meanwhile, there currently are 24 active solicitations and sources sought notices on FBO.gov labeled as “Very Small Business” set-asides.

      The lingering nature of the set-asides suggests that many of them might be longstanding contracts that carry over each year, or that contracting officers are not aware that the programs have been repealed and are no longer supported.

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