New FAR Part 19 Explained: A Win For Small Businesses?

The FAR rewrite is the most sweeping change in federal procurement in decades, and for small business contractors, Part 19 is where the stakes are highest. This section of the FAR governs how and when contracts must be set aside for small firms, how socio-economic certifications like 8(a), WOSB, HUBZone, and SDVOSB are applied, and how prime contractors must engage with small business subcontractors.

In this episode of FedBiz'5, we break down the new Part 19 overhaul in plain language, explaining what has changed and why it matters. You’ll learn how the Rule of Two has been preserved and clarified to protect small business access, how tighter certification requirements make your status more meaningful, how sole-source authority has been centralized for easier use, and how subcontracting rules have been strengthened to expand opportunities for teaming and partnerships.

We’ll also cover why this rewrite is more than just regulatory—it’s strategic. With record levels of federal awards already flowing to small businesses, these changes help ensure the momentum continues. And more importantly, we’ll share the steps you should take now to be ready: updating certifications, strengthening your capability statement, engaging in market research, and building prime and subcontractor relationships that will position you for success.

If you want to understand how the new FAR Part 19 tilts the playing field in your favor—and how to turn the regulatory change into opportunity—this episode is for you.

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Transcript

SAM FIELDS (host):
Hello and welcome to FedBiz'5, your quick dive into all things government contracting. I’m your host, Sam Fields, and today we’re unpacking one of the most important updates in the entire FAR overhaul: Part 19, Small Business Programs.

If you’re a small business contractor—or thinking about becoming one—this episode matters to you. Part 19 is the rulebook that governs when agencies must reserve contracts for small businesses, how socio-economic certifications are used, when sole-source awards apply, and how primes have to subcontract. In short, it’s the part of the FAR that controls access for small firms.

The big news? The revised Part 19 not only protects small business opportunities but actually strengthens them.

SAM:
So, why is Part 19 such a big deal?

Because it determines whether contracts are left wide open to giant primes—or whether they’re reserved for small businesses like yours. When the Rule of Two is in play, when socio-economic categories are recognized, when subcontracting rules are enforced—small businesses win more work. When the rules are fuzzy, large contractors usually dominate.

This rewrite makes the rules clearer, stronger, and more consistent. Let’s break down the key changes.

SAM:
First, the Rule of Two.

In the old FAR, the Rule of Two was split between two sections—one for acquisitions between the micro-purchase threshold and the simplified acquisition threshold, and another for acquisitions above that. That split led to confusion, and in some cases, agencies argued it didn’t really apply above the SAT.

The new Part 19 consolidates everything into one place. It now says: for any acquisition above the micro-purchase threshold, if there’s a reasonable expectation of at least two responsible small businesses competing at fair prices, the contract must be set aside. Period.

For contractors, that means stronger assurance that more contracts stay in the small business lane. But it also means you need to be one of the two—visible, registered, and competitive on price, quality, and delivery.

SAM:
Next, structural reorganization and duplication removal.

Before, rules were scattered and sometimes inconsistent. Now, they’re consolidated into a clearer framework. The result? Fewer gray areas, fewer “gotchas,” and more predictability across agencies.

For contractors, that means a more consistent playing field. Your compliance and proposal strategies can be more stable instead of changing with every agency interpretation.

SAM:
Now let’s talk certification and eligibility.

The new Part 19 tightens verification of socio-economic certifications. Contracting officers must now confirm your certification before awarding set-asides or sole-source contracts.

For certified businesses, that’s a win—your status has more weight and legitimacy. But if you’re not certified, and you qualify, now is the time to get it done. A delay or an expired record could block you from opportunities that might have been yours.

SAM:
Another big one—sole-source authority clarified.

Previously, the rules for sole-source awards in programs like 8(a), HUBZone, or SDVOSB were scattered across multiple sections with different triggers. Now they’re centralized and aligned, making it easier for contracting officers to apply them consistently.

That’s good news if you’re eligible. It means clearer opportunities to pursue sole-source awards—and less confusion about when agencies can use them.

SAM:
Finally, let’s cover subcontracting plans and enforcement.

In the old FAR, primes had to submit subcontracting plans, but enforcement varied a lot. The new Part 19 tightens these rules, aligning them with other FAR parts and putting more focus on holding primes accountable.

What that means for small businesses is opportunity. Large primes will feel more pressure to bring capable small firms onto their teams. If you’ve got the skills and visibility, this rewrite increases your chance of being invited to subcontract or team.

SAM:
So why is this overhaul a win for small businesses?

Number one, the Rule of Two is preserved and clarified, ensuring that set-aside opportunities remain robust.

Number two, certification status is now more meaningful—your credentials carry more legitimacy.

Number three, subcontracting opportunities expand, because primes must take their commitments more seriously.

And number four, the playing field is clearer. Fewer loopholes mean less wiggle room for agencies to bypass small business rules.

This all adds momentum to an already strong environment—small businesses captured over $183 billion in federal prime contracts last year, a record 28.8 percent of federal spend. With the revised Part 19 in place, that momentum is more likely to continue.

SAM:
So what should you do now?

First, secure or update your certifications—8(a), WOSB, HUBZone, SDVOSB—whatever you qualify for, get it current and defensible.

Second, sharpen your capability statement. Contracting officers need to see you as one of the two viable competitors. Highlight your pricing, performance, and socio-economic status.

Third, be proactive in market research. Tools like FedBiz365 help you identify which agencies and acquisitions are likely set-aside, who the primes are, and where you fit.

Fourth, build relationships with primes and other small businesses. The stronger the subcontracting rules, the more teaming will matter.

And finally, monitor how agencies apply these rules in practice. Pay attention to patterns in set-aside decisions, sole-source usage, and subcontracting enforcement. The better you read the landscape, the better you can position.

SAM (closing):
Here’s the bottom line. The FAR Part 19 overhaul is a big win for small businesses. It preserves protections, strengthens certifications, clarifies sole-source authority, and expands subcontracting opportunities. But those advantages only matter if you’re ready—certified, visible, capable, and engaged.

And remember, FedBiz Access has been helping small and medium-sized businesses succeed in government contracting for over twenty-four years. From certifications and capability statements to market research with FedBiz365, we can help you position to take full advantage of the new Part 19.

Thanks for listening to FedBiz'5—five minutes, countless opportunities. Call a FedBiz Specialist today at 844-628-8914 and reference code GOV CON READY—that’s G-O-V C-O-N R-E-A-D-Y—for ten percent off products or services.

Until next time, I’m Sam Fields—stay proactive, stay prepared, and keep winning in government contracting.