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Socioeconomic Essay
To help facilitate the growth of small businesses Federal Government procurement requires their Contracting Officers to comply with applicable socioeconomic laws and regulations that do not apply to commercial contracting. The socioeconomic goals set forth by these laws, which pertain only to federal contracting and are integrated into the FAR, ensure there is constant economic growth for the U.S economy as well. These goals consist of making awards to what is considered, set-aside programs, and includes small businesses participating in the 8(a) Business Development Program, Historically Underutilized Business Zones (HUBZone) Program, Service-Disabled Veteran-Owned Small Business (SDVOSB) Program, or the Women-Owned Small Business (WOSB) Program. Although these socioeconomic programs require additional considerations during the procurement process, they also allow federal agencies to benefit from the contributions that many of these small businesses bring to an agency and the economy as a whole by way of innovation.
Socioeconomic programs impact federal contracting in more ways than one. For one it requires agencies to limit competition on certain contracts to qualified small businesses so that small firms do not have to compete with large firms for the same contracts. This one aspect makes it easier for small businesses to obtain business in the federal market which also allows for the creation of jobs through these contracting incentives. According to FAR 19.502-2, any acquisition of supplies or services requested that has an anticipated dollar amount exceeding $3,000 but not over $150,000 is automatically reserved and set aside for small businesses. Under this regulation, contracting officers must perform market research to adhere to the regulation and must also provide just reasoning if they decide not to fulfill the

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