Module 4 of 7
The contracts side: NAICS, size standards, set-asides and OTs
How federal buying works for small firms: NAICS codes, size standards, the rule of two, 8(a)/HUBZone/SDVOSB/WOSB set-asides, sources sought, thresholds and OTs.
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Founders get told to “go get grants.” A large share of non-dilutive money comes from the government buying things, and small businesses have a legal carve-out in how it buys. A contract is not a gift; it is a sale. But it is a sale where, by regulation, the competition can be restricted to companies your size. This lesson teaches the machinery so you can find those sales and decide whether to pursue them.
The core idea: the government has to look for small businesses first
The Small Business Act and the FAR require contracting officers to set aside contracts for small businesses when certain conditions are met. The central test is the rule of two: if the contracting officer has a reasonable expectation of receiving offers from two or more responsible small businesses that are competitive on fair market price, quality and delivery, the contract is set aside for small business.
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