This bill amends the Small Business Act to formally establish in law the "Rule of Two," a federal contracting practice that requires government contracts above a certain dollar threshold (the simplified acquisition threshold) to be set aside specifically for small businesses whenever contracting officers reasonably expect to receive competitive bids from at least two qualified small business concerns at a fair market price. This codification would apply to federal contracting officers across government agencies and would primarily benefit small business owners seeking government contracts by strengthening their access to these opportunities. The rule would not apply to delivery orders or task orders, which are excluded from the definition of "covered contract" under this legislation. The bill does not include specific new funding, as it modifies existing contracting procedures rather than creating a new program. It was introduced in April 2025, referred to the House Small Business Committee, and reported with an amendment in July 2026, meaning it is still moving through the legislative process and has not yet been enacted into law.
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