What Is a Federal Set-Aside? A Plain-Language Guide
A set-aside is a federal solicitation reserved for a specific category of businesses, so only companies in that category may bid. The most common is the small business set-aside; others are reserved for service-disabled veteran-owned, veteran-owned, women-owned, HUBZone and 8(a) companies.
How to see whether a notice is set aside
Every notice published on SAM.gov has a set-aside field (typeOfSetAside in the SAM.gov API). If it is empty, the notice is not reserved. If it has a code, only the matching category may bid.
The codes you will see are listed in the table below.
| Code in the notice | Category | Who may bid |
|---|---|---|
| SBA, SBP | Small business | Companies under the SBA size standard for the notice's NAICS |
| 8A, 8AN | 8(a) Business Development | SBA 8(a) certified companies |
| HZC, HZS | HUBZone | HUBZone certified companies |
| SDVOSBC, SDVOSBS | Service-disabled veteran-owned | SDVOSB certified companies |
| WOSB, WOSBSS | Women-owned small business | WOSB certified companies |
| EDWOSB, EDWOSBSS | Economically disadvantaged women-owned | EDWOSB certified companies |
| VSA, VSS | Veteran-owned small business | Veteran-owned companies |
How you qualify
- Small business (SBA, SBP): your company must be under the SBA size standard for the notice's NAICS code. The standard is a revenue or employee limit that depends on the NAICS code. SBA publishes the table; the version we use is effective March 17, 2023. SBA proposed a broad overhaul of the size standards on August 20, 2026 (Federal Register 2026-17042). It is a proposed rule: the current table still applies until a final rule is published.
- 8(a), HUBZone, WOSB/EDWOSB and SDVOSB/VOSB: self-certification is no longer enough for these set-asides. SBA certifies 8(a) and HUBZone, WOSB/EDWOSB (through SBA or an approved third-party certifier) and veteran-owned firms (SBA VetCert).
- 8(a), WOSB, EDWOSB and HUBZone also require U.S. citizen owners. See our guide on bidding without U.S. citizenship.
Why it matters for a new bidder
A reserved notice removes every company outside the category, so the field of competitors is smaller. In our analysis of 24 months of USASpending awards for NAICS 561210, openly competed contracts received a median of 2 offers (Kailu Bids analysis, 2026-10-18, sample of 300 contracts).
Kailu Bids checks the set-aside of every notice before it recommends it. A notice you are not eligible for is marked "do not bid" with the reason and what is missing, so you do not spend a weekend on it.
Frequently asked questions
What is a set-aside in federal contracting?
It is a solicitation reserved for a category of businesses (for example small businesses), so only companies in that category may bid.
Where do I find the set-aside of a notice?
In the set-aside field of the notice on SAM.gov. If the field is empty, the notice is not reserved.
Can I bid on a set-aside if I am not certified?
Only on a general small business set-aside, which depends on the SBA size standard. 8(a), HUBZone, SDVOSB, WOSB and EDWOSB set-asides need the matching certification.
Does a set-aside guarantee I will win?
No. It reduces the number of eligible competitors but you still have to submit a compliant offer and be selected.
Sources
- SBA Table of Size Standards (data.sba.gov)
- Federal Register 2026-17042: proposed size standards rule (2026-08-20)
- SBA certifications (certify.sba.gov)
- SAM.gov Get Opportunities API (field typeOfSetAside)
General information, not legal advice. Kailu Bids is an independent service of Kailu Media LLC and is not affiliated with SAM.gov, the SBA or any government agency. Rules change; check the sources above. Last reviewed: October 20, 2026.