Protecting Small Business Competitions Act of 2025
Summary
The Protecting Small Business Competitions Act of 2025 aims to codify the 'Rule of Two' within the Small Business Act. This rule mandates that government contracts exceeding the simplified acquisition threshold be reserved for small businesses. This reservation occurs when there's a reasonable expectation of receiving offers from at least two responsible small business concerns and awarding the contract at a fair market price.
Expected Effects
The primary effect will be to formalize existing practices that favor small businesses in government contracting. This could lead to increased opportunities for small businesses to secure government contracts. It may also incentivize more small businesses to participate in the federal procurement process.
Potential Benefits
- Increased opportunities for small businesses to secure government contracts.
- Potential for greater competition among small businesses, leading to innovation and better value for the government.
- Formalization of a rule that already guides contracting decisions, providing clarity and predictability.
- Support for small business growth and job creation.
- May encourage more small businesses to enter the federal contracting market.
Most Benefited Areas:
Potential Disadvantages
- Potential for reduced competition from larger businesses, which may offer lower prices or more specialized services.
- Risk of increased administrative burden for contracting officers to ensure compliance with the 'Rule of Two'.
- Possible delays in the procurement process due to the focus on small business set-asides.
- Potential for unintended consequences if the 'Rule of Two' is applied too rigidly, excluding qualified larger businesses.
- May not address underlying issues that prevent small businesses from successfully competing for and executing government contracts.
Constitutional Alignment
The Act appears to align with the spirit of promoting the general welfare, as mentioned in the Preamble of the US Constitution, by supporting small businesses. Congress's power to legislate on matters related to commerce and to make laws necessary and proper for carrying out its enumerated powers, as outlined in Article I, Section 8, provides the constitutional basis for this Act. There are no apparent conflicts with individual rights or liberties protected by the Bill of Rights.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).