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SBA Seeks to Expand Rule of 2 Usage in Multiple-award Contracting
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SBA Seeks to Expand Rule of 2 Usage in Multiple-award Contracting

2 mins read

The Small Business Administration is soliciting feedback on a proposed rule that would apply the Rule of Two to multiple-award contract task and delivery orders as part of a push to encourage the participation of small enterprises in multiple-award contracts.

According to a notice published Friday in the Federal Register, comments on the proposed rule are due Dec. 24.

Under the Rule of Two, an agency must set aside the award for small businesses where there is an expectation of receiving bids at competitive prices from two or more small business contract holders under the multiple-award contract.

In the event that an agency is unable to set aside a task or delivery order over the micropurchase threshold and an exception does not apply, the contracting officer must document the rationale and submit the documentation to the agency’s small business specialist, the Office of Small and Disadvantaged Business Utilization or to the Department of Defense’s Office of Small Business Programs.

SBA is asking interested stakeholders for input on whether there is a need for the regulatory action, baseline and the incremental costs and benefits of the regulatory action and potential alternatives to the rulemaking.

In January, the current administration announced new actions to expand small business access to federal contracts, including the release of an Office of Management and Budget guidance to improve small business participation in multiple-award contracts and SBA’s efforts to improve a technical assistance program, called Empower to Grow.