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SET ASIDES - Research Paper Example

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Running head: SET ASIDE Set Aside Insert Name Insert Insert 29 July 2011 Set Aside Abstract In this paper the set aside contracts are deeply explained from their definition, categories, strengths and challenges, to their application…
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Download file to see previous pages On analysis the justification for why VA and Defense Department are chosen as providing the best contracting opportunities for NAICS 561730 is shown and supported with evidence. Finally, the best available contracting opportunity for NAICS 561730 is identified and the reason stated. Set Aside Introduction Set aside contract is ‘’a federal contract under which only small business are allowed to bid’’ (HJ Ventures, 2004). The set aside small business contracts are mainly awarded to start ups, minority owned businesses, women-owned businesses, disabled people businesses, veterans group businesses and other special groups businesses. These type of businesses mostly lack capital and experience to start or expand thus they lack the machinery to compete with large or other successful businesses. In order to help them overcome those challenges that why the government reserves some of it contract specifically for them. A part from the special treatment in bidding for the contracts the small business owners stands to gain the following benefits under these programs: training courses and counseling on owning or managing a business, and additionally they are eligible for various loans and advance payments within the program (Guthrie, 2011). Set-asides though awarded on special basis have been quite controversial in business context since the projects from the private sector are mainly awarded on the basis of price, performance, value added and quality, while set-asides are awarded on basis on size, class, race, gender, thus harming legitimate businesses and breeding corruption (Bbutkins, 2010). Under the Small Business Act, the law bids the federal agencies to carryout various procurements that are partially or wholly reserved for small business participation (FSD, 2010). Under this act there are several set-aside categories for the different small businesses ventures which include: Competitive 8(a), Emerging Small Business, HUBZone, Partial Historically Black College or University (HBCU) / Minority Institution (MI), Partial Small Business, Service-Disabled Veteran-Owned Small Business, Total HBCU / MI, Total Small Business, and Veteran-Owned Small Business (FSD, 2010). Therefore small business set-aside categories will award certain acquisitions exclusively to eligible small business concerns. Hence a set-aside may totally or partially open to all small businesses, a single acquisition or a class of acquisitions. In the procurement bidding process the set-asides are conducted through simplified acquisition procedures, sealed bids, or competitive proposals. The small business set asides are awarded contracts either as the primary contractor or sub-contractor. According to the North American Industry Classification System (NAICS) categories 561730 Landscaping Services is defined as ‘’ventures that specialize in providing landscape care and maintenance services and/or installing trees, shrubs, plants, lawns, or gardens and ventures that specialize in providing these services along with design of landscape plans and/or the construction of walkways, retaining walls, decks, fences, ponds, and similar structures’’ (NAICS, 2007). Landscaping services provide employment to a quite sizable portion of the American population and also improve the outlook of households. They also significantly improve the value of homes. More than 14500 businesses in the United States are classified as landscaping services (NAICS 561730), with majority of these ventures comprising of a workforce ...Download file to see next pagesRead More
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