Under what circumstances shall the CO set aside a portion of an acquisition for small business participation?

The correct reasoning for when the Contracting Officer (CO) should set aside a portion of an acquisition for small business participation is when the requirement is severable into two or more production runs. This situation allows for a better distribution of contracts among small businesses by breaking down a larger requirement into smaller, manageable parts that small businesses can fulfill.

By severing the requirement, the CO can create opportunities for small businesses to compete for specific segments of the overall contract, which aligns with federal policies aimed at ensuring that small businesses have equitable access to government contracts. This approach not only promotes small business growth but also encourages competition, potentially leading to better value for the government.

Other choices, while relevant to different contexts of federal contracting, do not directly address the specific scenarios under which set-asides for small business participation are mandated or encouraged in the same way. For instance, simply being over a dollar threshold or having competitive bids does not guarantee the need for a set-aside unless the specifics of the procurement align with enhancing small business participation under the guidelines set forth by federal acquisition regulations.