Protecting Small Business Competitions Act of 2025

The Protecting Small Business Competitions Act of 2025 would codify a long-standing procurement principle known as the “Rule of Two” into the Small Business Act. Specifically, it amends Section 15(j) to add a binding requirement: for any government contract, task order, or delivery order with an anticipated value above the simplified acquisition threshold, the contracting officer must set the competition aside for small business concerns if the officer reasonably expects two or more responsible small businesses to bid and to be able to compete at a fair market price. In short, above-SAT purchases would be reserved for small businesses whenever there are at least two capable small firms likely to bid at a fair price. The measure aims to increase competition and opportunities for small businesses in federal contracting, particularly for larger purchases that would otherwise be open to a wider field of bidders. It would compel contracting officers to assess the market for at least two small-business bidders and to justify the price as fair before allowing non-small-business competitors to participate. This codification would make the “Rule of Two” a statutory requirement rather than a discretionary policy.