Small Business Set-Asides
Third Party Procurement
Frequently Asked Questions
Q = Question; A = Answer
Q. With respect to third party contracts, is there any reason why a contracting entity would be precluded from establishing a small business set aside? The entity in question is not governed by the FAR but does receive funding from the FTA.
A. There is no prohibition against the use of small business set-asides by grantees. There is, however, a prohibition against the use of set-asides for Disadvantaged Business Enterprises (DBE) except in limited and extreme circumstances to redress egregious instances of discrimination. This issue of DBE set-asides is covered in 49 C.F.R. § 26.43 and is further discussed in the Best Practices Procurement Manual, Section 7.3.2 - Use of Quotas and Set-Asides. (Reviewed: July 2010)