Defense Dept. Expands Small Business Set-Asides The Defense Department will begin using small business set-asides for architect/engineering services and many categories of construction. The department is also reinstituting small business set-asides for refuse services and the Navy’s non-nuclear ship repair. Under the Small Business Competitiveness Demonstration Program, set-asides are not permitted in certain industries that are traditionally dominated by small firms, as long as the department’s small business awards stay above a certain threshold. Set-asides are permitted for 8(a), HUBZone and service-disabled veteran-owned companies in those industries. In a June 16 Federal Register notice, DOD said it is reinstituting the small business set-asides because its awards to those firms in 2007 fell below the 40% threshold, and some defense agencies did not meet the 35% threshold for A/E services. Here is how the change will affect DOD units: Army: will set aside contracts for (1) building construction, NAICS sector 236; heavy and civil engineering construction, sector 237; and specialty trade contractors in NAICS codes 238110, 238290 and 238350; (2) architect and engineering services, including surveying and mapping; (3) refuse systems and related services. Navy: will set aside contracts for (1) building construction, NAICS sector 236; heavy and civil engineering construction, NAICS codes 237120 and 237990; specialty trade contractors in NAICS codes 238120, 238190 and 238390; (2) non-nuclear ship repair, product or service code J999 (West Coast only); (3) architect and engineering services, including surveying and mapping. Air Force: will set aside contracts for (1) building construction, NAICS sector 236; heavy and civil engineering construction, NAICS code 237120; (2) architect and engineering services, including surveying and mapping. Defense Contract Management Agency: will set aside contracts for building construction, NAICS sector 236. Defense Logistics Agency: will set aside contracts for (1) building construction, NAICS sector 236; (2) specialty trade contractors in NAICS codes 238110, 238120 and 238220. Defense Commissary Agency: will set aside contracts for refuse systems and related services. Washington Headquarters Services: will set aside contracts for (1) building construction, NAICS sector 236; (2) architect and engineering services, including surveying and mapping. Defense Information Systems Agency: will set aside contracts for (1) building construction, NAICS sector 236; (2) specialty trade contractors in NAICS code 238990. Defense Threat Reduction Agency: will set aside contracts for heavy and civil engineering construction in NAICS code 237990. Defense Education Activity: will set aside contracts for specialty trade contractors in NAICS code 238990. U.S. Special Operations Command: will set aside contracts in heavy and civil engineering construction, NAICS code 238170. The Competitiveness Demonstration Program is intended to determine whether small firms in certain industries can compete successfully without set-asides, according to the Federal Acquisition Regulation. If small business awards drop below the thresholds, set-asides are reinstituted.