New Rule Will Enhance Small Business Set-Asides

By Carol L. O’Riordan

This is the fourth blog post in our series about new federal regulatory initiatives that are on tap for the first half of 2014.

On November 2, 2011, the Defense Department, the General Services Administration, and the National Aeronautics and Space Administration issued an interim rule, amending the Federal Acquisition Regulation (FAR) to implement section 1331 of the Small Business Jobs Act of 2010. This section deals with set-asides of task and delivery orders under multiple-award contracts, partial set-asides under multiple-award contracts, and the reserving of one or more multiple-award contracts that are awarded using full and open competition.

It also deals with the Federal Supply Schedules Program managed by the General Services Administration. The rule points out that DOD, GSA, and NASA are coordinating with the Small Business Administration (SBA) on the development of an SBA rule that will provide greater detail regarding implementation of section 1331 authorities.

The final version of the rule is set to go into effect, after public comment concludes, in March 2014.

In the past, there had been no specific provision that granted set-asides to small businesses for Indefinite Delivery Indefinite Quantity (IDIQ) Multiple Award Task Order Contracts, which are frequently awarded by the Defense Department and other agencies. This initiative provides for this type of set-aside for the first time.

The interim rule can be viewed here. Comments should be submitted to  Karlos Morgan, Procurement Analyst, DOD/GSA/NASA (FAR), 1800 F Street NW., Washington, DC 20405, Phone: (202) 501-2364, Email:

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