The federal contracting landscape is vast and dynamic, presenting lucrative opportunities for businesses of all sizes. However, small businesses often face unique challenges when competing in this arena. That’s where FAR Part 19 – Small Business Programs comes into play. This critical section of the Federal Acquisition Regulation ensures that small businesses receive their fair share of federal contracts and subcontracting opportunities.
In this article, we’ll explore the core provisions of FAR Part 19, its impact on small business contractors, and how to leverage it for success in the GovCon space.
Understanding FAR Part 19
FAR Part 19 outlines the policies, procedures, and programs aimed at fostering small business participation in federal contracting. Its key objectives are:
Key Sections to Know
- Size Standards (FAR 19.102)
Determining whether a business qualifies as “small” is the first step to accessing the benefits of FAR Part 19. The North American Industry Classification System (NAICS) codes define size standards based on revenue or employee count, depending on the industry. Businesses must align their size with these standards to qualify for small business programs. - Small Business Set-Asides (FAR 19.502-2)
Under FAR Part 19, federal agencies are required to reserve certain contracts exclusively for small businesses. These set-asides come in two forms:- Total Set-Asides: Contracts reserved entirely for small businesses.
- Partial Set-Asides: A portion of the contract is reserved for small businesses while the rest is open to larger companies.
Set-asides are determined based on factors such as contract size, nature of the work, and market research.
- Small Business Subcontracting Plans (FAR 19.702)
Large contractors (typically with contracts exceeding $750,000 or $1.5 million for construction) must submit a Small Business Subcontracting Plan outlining how they will include small businesses in subcontracting roles. These plans are essential for promoting collaboration and creating opportunities for small businesses. - Specialized Small Business Programs
FAR Part 19 also includes programs aimed at specific categories of small businesses, such as:
Why FAR Part 19 Matters
- Leveling the Playing Field
FAR Part 19 ensures that small businesses, which are often overshadowed by larger competitors, have the chance to secure federal contracts. Programs like set-asides create a more equitable environment, enabling small businesses to grow and thrive. - Boosting Economic Growth
By promoting small business participation, FAR Part 19 contributes to job creation and innovation across industries. Small businesses play a vital role in stimulating local economies and driving community development. - Encouraging Collaboration
The emphasis on subcontracting plans fosters collaboration between large contractors and small businesses. This not only benefits small businesses but also enriches the capabilities of large contractors by leveraging diverse expertise.
How to Leverage FAR Part 19
For small businesses looking to succeed in federal contracting, understanding and applying FAR Part 19 is crucial. Here are some actionable tips:
Conclusion
FAR Part 19 is more than just a regulatory framework—it’s a powerful tool for empowering small businesses in the GovCon space. By understanding its provisions and proactively engaging with its programs, small businesses can unlock new opportunities, build lasting partnerships, and drive growth in federal contracting.
At GovConPros, we’re committed to supporting your journey in the GovCon industry. Whether you’re navigating FAR regulations or crafting winning proposals, we’re here to help you achieve success.