Guide
Small Business Set-AsideFederal Contracts
The federal government is required to award at least 23% of prime contract dollars to small businesses. General small business set-asides are the most common type of reserved contract — any SBA-qualified small business can compete. Here's how to confirm your eligibility, find set-aside contracts, and identify the agencies spending the most in your industry.
Confirm your small business size status
The SBA defines 'small' differently for each industry using NAICS-based size standards. For most service industries, the threshold is average annual receipts (typically $9M–$47.5M). For manufacturing, it’s usually employee count (typically 500–1,500). Check your size standard at sba.gov/size-standards — if your business is under the threshold for your primary NAICS code, you qualify as a small business for federal contracting.
Register on SAM.gov
Every business bidding on federal contracts must register in the System for Award Management (SAM.gov). Registration is free and takes 7–10 business days. You’ll need your EIN, UEI number, bank account information, and NAICS codes. During registration, you’ll self-certify as a small business under your NAICS codes. Keep your registration active — it must be renewed annually.
Find your NAICS codes
Federal contracts are categorized by NAICS code — 6-digit codes describing what your business does. For example, 541511 is Custom Computer Programming Services. Most businesses qualify under 2–5 codes. Use the Federal Contract Tracker’s autocomplete to search by keyword and find codes matching your services. Your NAICS codes also determine your SBA size standard.
Search for small business set-aside contracts
On the Federal Contract Tracker, enter your NAICS code and select the SBA Small Business set-aside filter. This shows every small business set-aside contract awarded in your industry — who won, which agency awarded it, and the dollar amount. Small business set-asides are the most common type, with the highest total dollar volume of any set-aside program.
Identify top agencies for small business contracts
Use the Spending by Agency view to find which agencies award the most small business set-aside contracts in your NAICS codes. Agencies are required to meet small business contracting goals — the government-wide target is 23% of prime contract dollars to small businesses. Agencies that consistently fall short of their goals are more likely to increase small business set-asides.
Explore specialized set-aside programs
If your business qualifies for additional certifications — 8(a), WOSB, SDVOSB, or HUBZone — you can access contracts with even less competition. These programs reserve contracts specifically for their categories and have sole-source provisions. Getting certified for multiple programs significantly expands your opportunities.
Search small business set-aside contracts
Enter your NAICS code, select the SBA Small Business filter, and see every awarded set-aside contract in your industry. Free — 10 searches per day, no registration.
Search small business contracts freeOther set-aside types
If your business qualifies for additional certifications, these specialized programs offer contracts with less competition:
Frequently asked questions
What is a small business set-aside contract?
A small business set-aside is a federal contract reserved exclusively for small businesses. Contracting officers are required to set aside contracts for small business competition when they expect at least two qualified small businesses will submit offers at fair market prices. The government-wide goal is to award at least 23% of all federal prime contracting dollars to small businesses.
How does the SBA determine if my business is small?
The SBA uses size standards that vary by NAICS code. For most service industries, the standard is based on average annual receipts over the past 5 years (typically $9M–$47.5M depending on industry). For manufacturing, it’s based on average number of employees (typically 500–1,500). Check your specific standard at sba.gov/size-standards by entering your NAICS code.
Do I need SBA certification for small business set-asides?
No. General small business set-asides only require self-certification through your SAM.gov registration. You declare your small business status when registering. However, specialized programs like 8(a), WOSB, SDVOSB, and HUBZone do require formal SBA certification or verification. If you qualify for those programs, the additional certification is worth pursuing.
What is the difference between a small business set-aside and an 8(a) set-aside?
A general small business set-aside is open to any SBA-qualified small business. An 8(a) set-aside is reserved specifically for businesses in the SBA’s 8(a) Business Development program, which serves socially and economically disadvantaged entrepreneurs. 8(a) set-asides have less competition but require formal certification. Small business set-asides have higher volume but more bidders.
What are the sole-source limits for small business contracts?
For general small business set-asides, there are no sole-source provisions — they must be competitively bid. However, specialized programs have sole-source limits: 8(a) up to $4.5M services/$8M manufacturing, SDVOSB up to $4.5M/$8M, WOSB up to $4.5M/$8M, and HUBZone up to $4.5M/$8M. If you qualify for any of these, sole-source contracts are a significant advantage.
How much of federal spending goes to small businesses?
The government-wide goal is 23% of prime contract dollars to small businesses. In recent years, the actual percentage has exceeded this target — over $178 billion was awarded to small businesses in FY2023. Use the Federal Contract Tracker’s Trends page to see quarterly spending patterns and identify which agencies are the biggest small business spenders in your NAICS codes.