SBA Proposed Rule Seeks to Expand “Rule of Two”

Holland & Knight report that the U.S. Small Business Administration (SBA) issued a proposed rule aimed at increasing small business participation in multiple award contracts by expanding the application of the Rule of Two to multiple award task and delivery orders, with certain exceptions. The proposed rule also requires the Contracting Officer (CO) to document a decision not to set aside an order and send it to the Office of Small and Disadvantaged Business Utilization. OSDBU can then make recommendations to increase small business opportunities at the agency. The proposed rule is part of the federal government’s broader effort to ensure that small businesses, particularly small disadvantaged businesses, have greater access to federal contracting opportunities. Comments are due December 24, 2024.

As many small businesses holding IDIQs know, the next challenge is to get USAID to actually award Task Orders to small and disadvantaged firms.

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