Protecting Small Business Competitions

Summary#

This bill would amend the Small Business Act to codify the "Rule of Two." It adds a requirement that each contract, task order, or delivery order for goods or services with an anticipated value greater than the simplified acquisition threshold must be reserved for small business concerns when both of these conditions are met:

• the contracting officer reasonably expects to obtain offers from two or more responsible small business concerns; and
• the contracting officer reasonably expects to award the contract, task order, or delivery order at a fair market price.

The bill was introduced in the House on April 9, 2025, by Representatives Nydia Velázquez, Gilbert Cisneros, Sharice Davids, Ed Case, and Roger Williams. Its status is listed as "Placed on the Union Calendar, Calendar No. 624" and "In Progress."

What it means for you#

• If you are a small business: The bill would require reserving certain federal contracts above the simplified acquisition threshold for small businesses when two or more responsible small businesses are expected to offer and the award can be made at a fair market price.
• If you are a federal contracting officer: The bill would require using the Rule of Two to reserve such contracts when the two conditions in the bill are met.
• If you are any other interested party: The bill changes the conditions under which some contracts must be set aside for small businesses.

No publicly available information on implementation details, timing, or how often the rule would apply beyond the text of the amendment.

Expenses#

No publicly available information on costs, budgetary effects, or funding associated with this bill in the provided text or metadata.

Proponents' View#

No publicly available statements by proponents are included in the provided bill text. Sponsors listed in the bill metadata are Representatives Nydia Velázquez, Gilbert Cisneros, Sharice Davids, Ed Case, and Roger Williams.

Opponents' View#

No publicly available statements by opponents are included in the provided bill text or metadata.