Winning a set-aside comes with a promise about who does the work. For a services contract covered by the rule, the small business must agree that it will not pay more than 50% of the amount paid to it by the government to firms that are not similarly situated 1.
Worked example. Contractor C, a small business, wins a services set-aside worth $1,000,000 and plans to pay a large partner $600,000 for half the labour. That plan pays 60% of the award to a firm that is not similarly situated, so Contractor C restructures the team before it signs.
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