Protecting Small Business Competitions Act of 2025

May 20, 2026

Summary

Makes it a law that government contracts must be saved for small businesses if two or more are likely to make fair offers.

What problem does this solve?

The 'Rule of Two' is a regulation that could be changed without Congress's approval, creating uncertainty for small businesses. This bill makes the rule a permanent law, providing stability and ensuring small businesses have a fair chance at government contracts.

What does this bill do?

Makes the 'Rule of Two' a permanent law

Requires government contracts valued above the simplified acquisition threshold to be reserved for small businesses if an officer expects at least two to submit fair offers.

Requires expectation of at least two bids

Specifies that a contract must be set aside for small businesses only if the contracting officer expects to get offers from two or more qualified small businesses.

Ensures fair market price

Mandates that the contract can only be set aside if the contracting officer believes the award will be made at a fair market price.

Who does this affect?

Small business owners
Government contracting officers
Large businesses

What is the real world impact?

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Provides stability for small businesses

Turns an existing regulation into a permanent law, protecting small businesses' access to federal contracts from being easily changed by future administrations. This gives them more certainty when competing for government work.

When does this start?

The rules in this bill will take effect as soon as it is signed into law.