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SBA Proposes Rule to Increase Small Business Participation in Multiple Award Contracts
The U.S. Small Business Administration (SBA) has recently issued a proposed rule aimed at increasing small business participation in multiple award contracts (MACs). The rule, which was released on Oct. 25, 2024, expands the application of the Rule of Two to multiple award task and delivery orders, with certain exceptions. This move is part of the federal government’s broader effort to ensure that small businesses, particularly small disadvantaged businesses, have greater access to federal contracting opportunities.
Key points from the proposed rule include the expansion of the Rule of Two, which directs agencies to set-aside orders under MACs for small business contract holders when there is a reasonable expectation of obtaining offers from two or more small business contract holders that are competitive in terms of market prices, quality, and delivery. The proposed rule also provides exceptions to the Rule of Two, such as orders under the Federal Supply Schedule.
Additionally, the proposed rule requires agencies to set-aside orders for small business MAC holders and mandates that contracting officers document their rationale for not setting aside an order. The rule also seeks to require agencies to provide more advanced notification to SBA’s procurement center representatives earlier in the acquisition planning process.
The proposed rule will undergo a 60-day public comment period, allowing stakeholders to provide feedback on its provisions. This process is crucial for refining the rule and addressing any concerns before its finalization. Comments on the proposed rule will be due on Dec. 24, 2024.
Overall, the proposed rule aims to increase small business participation in federal contracting opportunities and align with the government’s goal of awarding a fair proportion of contracts to small businesses. Stay tuned for updates on the implementation of this rule and its potential impact on small business contractors.
