Small Businesses rejoice: White House and OFPP offer up “Big development on the Rule of Two!”

Sam Le, the U.S. Small Business Administration’s Director of Policy Planning and Liaison, shared a post over the weekend detailing a “Big development on the Rule of Two!” with the White House and OFPP issued their resolution that, for the most part, the Rule of Two DOES apply to orders on multiple-award contracts. More detail and guidance from SBA and the FAR are expected to follow.

We will see how this works in practice but has the potential to be particularly good news for small government contractors.

“Way back in 2008, the GAO ruled that the small-business Rule of Two applies to orders off of multiple-award IDIQ contracts. Since then, that issue has been hotly disputed–continuously at GAO and the Federal claims court, and even all the way to the U.S. Supreme Court. Yesterday, the White House and OFPP issued their resolution: For the most part, the Rule of Two applies to orders. 

FACT SHEET: Biden-⁠Harris Administration Announces New Actions to Expand Small Business Access to Federal Contracts

OFPP MEMORANDUM FOR CHIEF ACQUISITION OFFICERS SENIOR PROCUREMENT EXECUTIVES – Increasing Small Business Participation on Multiple-Award Contracts

The OFPP document includes a lot more detail, including the exception and documentation requirements. Expect those to be described in more detail in guidance from SBA and the FAR. 

What is the Rule of Two? Under FAR Part 19 and 13 CFR, an acquisition shall be set aside for small business concerns whenever there is reasonable expectation that offers will be obtained from at least two responsible small business concerns and award will be made at fair market prices.”

Posted by Sam Le, Director of Policy Planning and Liaison at U.S. Small Business Administration, LinkedIn

See the original post here.

🔊 Listen to Story