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OMB Seeks to Revise the Small Business Act – Another Shot at the Rule of Two
PilieroMazza – Concerns are mounting that the Revolutionary FAR Overhaul will eliminate the regulatory “Rule of Two” found in FAR Part 19. Now, the Office of Management and Budget (OMB) is going further—seeking to narrow the reach of the statutory Rule of Two by revising the Small Business Act. Specifically, OMB wants to change the requirement from applying to purchases “below the simplified acquisition threshold (SAT)” to applying only to purchases below “$250,000.” At the same time, OMB proposes raising the SAT to $10 Million by 2030. The combined effect would severely curtail the Rule of Two and diminish contracting opportunities for small business contractors.