Distinction between contract reservations and set-asides?

[KA20003]

I am reading a 2008 article published in the Public Contracts Law Journal, where it discusses the distinction between set-asides and contract reservations. I am admittedly green in contracting, but I have never heard the term "contract reservation" as separate from a set-aside, and I am trying to understand the difference between the two. A few key citations from this article:

"...the Small Business Act provides no guidance for contract reservations."

"When implementing contract reservations, contracting authorities often cite the set-aside provisions in FAR 19.5. The theory is that contract reservations "set aside" a certain number of contract awards for small business concerns in a multiple-award acquisition."

"Contract reservations do not propose to set aside any acquisition for exclusive award to small business concerns. They simply set aside contracts."

The article is: Trepkowski, Gerald L., "Multiple Award Contract Reservations: The Examination of an Emerging Conflict in Small Business Preferencing," 37 Pub. Cont. L.J. 509 (Spring 2008).

Is the premise of a contract reservation that it is only one piece of a larger acquisition? For example, like a multiple-award IDIQ, where the overall acquisition (the IDIQ) is not set aside, but one or two IDIQ contracts are set aside? I'm still struggling to see the distinction. Why is a reservation NOT a set aside? Does this have something to do with bundling (which is part of the discussion)? I am unfamiliar with bundling, so perhaps that is where I should start my research in trying to understand this.

[Don Mansfield]

Things have changed since 2008. Read this: https://acc.dau.mil/CommunityBrowser.aspx?id=700464&lang=en-US. Come back if that doesn't adequately explain the difference.

[Todd Davis]

The proposed rule at 81 FR 88072 published for comment just yesterday (12/6) by the FAR council seeks to provide additional guidance on the use of partial set-asides, reserves, and set-asides of orders under multiple-award contract.  It is based on SBA's final rule published in the Federal Register at 78 FR 61114, dated October 2, 2013.  This is in addition to the initial rule the FAR council implemented (76 FR 68032, on November 2, 2011) after the Small Business Jobs Act of 2010 was passed, which didn't provide much guidance regarding reserves.

When an acquisition is "set aside", only small businesses can participate and provide quotes, bids, or offers.  According to FAR 19.501, the purpose of small business set-asides is to "award certain acquisitions exclusively to small business concerns."   

When a set-aside is not appropriate, there still may be a desire to enhance small business participation in federal procurements by utilizing a reserve. A reserve is different in that the CO may reserve one or more contract awards for small business concerns under full and open multiple-award procurements.  I think reviewing the latest proposed rule, in addition to the comments of others, will help you understand the concept and application of reserves.  It adds substantial coverage for the concept of a “reserve”.