Congress·In Committee·H.R. 2804

Rep. Velázquez Introduces Protecting Small Business Competitions Act to Secure Federal Contracts

Protecting Small Business Competitions Act of 2025

11 months ago·View on Congress.gov

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Key Points

This bill would turn the long-standing federal contracting practice known as the "Rule of Two" into a permanent law by adding it to the Small Business Act. This means future administrations couldn't easily roll back the protection through executive action or policy changes.
From policy text
“To amend the Small Business Act to codify the Rule of Two, and for other purposes.”
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Under the rule, federal contracts, task orders, or delivery orders above the simplified acquisition threshold (currently $250,000) must be set aside for small businesses when a contracting officer expects at least two qualified small firms will bid and the work can be done at a fair market price.
The bill was introduced by Rep. Velázquez and referred to the House Committee on Small Business. By codifying this rule, it aims to protect small businesses from being squeezed out of government contracting by larger corporations, keeping more federal spending flowing to smaller, independent companies.
From policy text
“Ms. Velazquez introduced the following bill; which was referred to the Committee on Small Business”
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Impact Analysis

Personal Impact

Who is affectedScoreImpactCertaintyScopeDurationSentiment

Scores: 1 = low, 5 = highSentiment: -5 to +5 (net benefit)

Milestones

2 milestones2 actions

Apr 9, 2025House

Referred to the House Committee on Small Business.

Apr 9, 2025

Introduced in House

Related News

6 articles

Washington Technology·6 months ago

Rule of two survives FAR overhaul as socioeconomic programs take a back seat

Despite fears the Trump administration would eliminate the 'Rule of Two,' the FAR Overhaul reinforced it as mandatory for general small business set-asides. However, it shifted socioeconomic programs (8(a), HUBZone, etc.) to discretionary status, using 'may' instead of 'shall' for set-asides.

HSToday·9 months ago

House Bill Aims to Lock in “Rule of Two” Protections for Small Businesses in Federal Contracting

Introduced by Rep. Nydia Velázquez, the Protecting Small Business Competitions Act of 2025 seeks to codify the 'Rule of Two' into the Small Business Act. This would turn a regulatory requirement into a statutory mandate, ensuring agencies reserve contracts for small firms when competition exists.

JD Supra·8 months ago

FAR Part 6 Rewrite: What It Means for Small Business Set-Asides, Socioeconomic Programs, and the Rule of Two

Analysis of the FAR Council's deliberate removal of non-statutory provisions highlights the importance of H.R. 2804. While the Rule of Two was retained in recent rewrites, its lack of a statutory anchor remains a concern for small business advocates seeking permanent protection from future shifts.