H.R. 2804: Protecting Small Business Competitions Act of 2025

This bill, known as the Protecting Small Business Competitions Act of 2025, aims to enhance opportunities for small businesses in federal contracting. Specifically, it seeks to formally include the "Rule of Two" in the Small Business Act.

Key Provisions of the Bill

1. **Implementation of the Rule of Two**: The bill mandates that certain federal contracts for goods or services should be reserved for small businesses. This applies when:

• The estimated value of the contract is greater than a defined threshold known as the simplified acquisition threshold.
• The contracting officer believes there are two or more capable small businesses that can provide a reasonable offer.
• The award can be made at a fair market price.

Impact on Small Businesses

The codification of the Rule of Two is designed to increase competition among small businesses by ensuring they have preferred access to certain government contracts. This is intended to bolster the small business sector, promoting entrepreneurship and diversifying the suppliers for government goods and services.

Potential Administrative Changes

If this bill is enacted, contracting officers involved in federal procurement processes may need to adjust their practices to comply with the new requirements for reserving contracts for small businesses, which could involve greater oversight and analysis to determine which small firms are capable of fulfilling contract obligations.

Relevant Companies

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