New FAR Rule to Benefit Small Business

April 27, 2020

What you need to know about the new small business ‘reserves’ FAR rule

Georgia Tech Contracting Education Academy, April 2, 2020

The Federal Acquisition Regulation (FAR) has been amended to implement regulatory changes made by the Small Business Administration, which provide a policy for partial set-asides and reserves, and for total set-asides to small businesses on multiple-award contracts.

The final rule goes into effect March 30, 2020.

As used in the new FAR rule, a “reserve” provides small businesses with opportunities to participate in federal contracts as prime contractors in circumstances where small businesses might not have otherwise been able to participate.

Reserves are applicable to Multiple-Award Contracts only and are to be used when market research indicates that a total or partial set-aside is not feasible.

The language at FAR 19.503 addresses factors the contracting officer must consider at the contract level. Multiple-award solicitations with reserves may result in contract awards to more than one small business. FAR 19.504(c)(1) addresses procedures at the order level when more than one small business receives an award under a multiple-award solicitation with a reserve. READ MORE….

Contact your nearest PTAC to learn about the new small business FAR rule.


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For help with Government Contracting: contact your nearest Procurement Technical Assistance Center (PTAC). Funded through Cooperative Agreements between the U.S. Department of Defense and state and local governments/institutions, PTACs provide free and low-cost assistance in virtually all areas of government contracting.