119th (2025–2027)
S. 2656
This bill codifies the "Rule of Two" into federal law, requiring federal agencies to reserve government contracts for small businesses when specific conditions are met. Under the legislation, any contract valued above the simplified acquisition threshold (currently $250,000) must be set aside exclusively for small business bidding if the contracting officer reasonably expects to receive at least two competitive bids from qualified small businesses and can award the contract at a fair market price. The bill affects federal agencies' procurement practices and benefits small business owners by guaranteeing them access to a larger portion of government contracting opportunities. The legislation establishes this requirement as binding law rather than allowing it to remain as an administrative policy that could be changed at agencies' discretion. No specific funding or implementation timeline is detailed in the provided text.