S. 2656: Protecting Small Business Competitions Act of 2025

This bill, known as the Protecting Small Business Competitions Act of 2025, aims to amend the Small Business Act to formalize a principle called the "Rule of Two."

What the Rule of Two Entails

The Rule of Two mandates that any government contract, task order, or delivery order exceeding a specific value—known as the simplified acquisition threshold—should be reserved for small business concerns. This applies when the contracting officer believes that:

• They can receive bids from at least two responsible small businesses.
• They can award the contract at a fair market price.

This means that the government will prioritize awarding contracts to small businesses as long as certain conditions about the number of bids and pricing are met.

Purpose of the Bill

The purpose of this legislation is to enhance competition among small businesses in government contracting. By ensuring that a specified number of contracts are reserved for small businesses, the bill aims to create more opportunities for these businesses to participate in government projects and enhance their growth.

Current Impact on Small Businesses

If enacted, this bill would serve to protect and bolster small businesses by ensuring that they receive a fair chance to compete for government contracts. This could lead to increased economic growth in the small business sector, potentially resulting in job creation and innovation.

Implementation of the Changes

The bill focuses solely on the codification of the existing Rule of Two rather than modifying its core principles. This implies that the processes and requirements for small businesses to obtain contracts will remain largely the same, but the Rule will now be officially incorporated into law.

Relevant Companies

None found.