Protecting Small Business Competitions Act of 2025
Impact
If enacted, HB2804 would have a significant impact on national procurement policies, enhancing opportunities for small businesses by ensuring they have equitable access to federal contracts. Supporters argue that this bill is essential for maintaining a robust ecosystem for small businesses, which are key to job creation and innovation in the economy. Codifying the Rule of Two is seen as a necessary step to address barriers that small businesses often face in competing for governmental contracts, ensuring a fairer bidding environment.
Summary
House Bill 2804, also known as the Protecting Small Business Competitions Act of 2025, aims to amend the Small Business Act by codifying the Rule of Two. This Rule requires that federal contracts, task orders, or delivery orders with an anticipated value above the simplified acquisition threshold are reserved for small businesses when there is a reasonable expectation of obtaining offers from two or more responsible small business concerns. The intent of the bill is to strengthen competition among small businesses in federal procurement, thereby supporting their growth and sustainability.
Contention
Notably, there may be contention surrounding the implementation specifics and the potential perceived limitations on larger contractors who may oppose such provisions. Critics could argue that strict adherence to the Rule of Two might delay procurement processes or reduce the competitiveness for certain federal contracts that might not necessitate such restrictions. Balancing the interests of small and large contractors could be a point of debate during the legislative process, as stakeholders weigh the benefits of enhancing small business protections against potential administrative hurdles.
To amend the Small Business Act to reauthorize and modify the Small Business Innovation Research and Small Business Technology Transfer Research programs, and for other purposes.