Certified Professional Contract Manager (CPCM) 2025 – 400 Free Practice Questions to Pass the Exam

A set-aside refers to a procurement strategy where a certain percentage or specific contract is reserved exclusively for particular groups or contenders. This is typically used to promote equal opportunities for small businesses, minority-owned enterprises, or other designated entities that may benefit from such a program. By setting aside contracts, the government or an organization aims to encourage diverse participation in its procurement processes and support underrepresented businesses.

In contrast, other options do not capture the essence of a set-aside. Competitive bidding processes can encompass a wide range of contracts and participants, without the exclusivity implied in set-asides. A contract for purchasing goods only does not specifically address the reservation aspect of a set-aside. Lastly, bid responsiveness evaluation is concerned with whether bids meet specified criteria rather than focusing on reserving contracts for specific contenders. Thus, the definition of a set-aside as a reserved procurement opportunity aptly reflects its unique purpose within contract management.