In Part I of this two-part blog, we covered an SBA proposed rule that would require agencies to apply the Rule of Two to most standard multiple award contracts (MACs) and task and delivery orders thereunder. In that blog, we covered the Rule of Two generally and the basics of SBA’s proposed changes to it. Well, as promised, this Part II blog is going to dig in a bit deeper to this proposed rule, its driving policies, and its potential impacts. But a whole lot has changed in the federal government contracting landscape (even since Part I of this blog). So, I will also address the elephant in the room (as best I can) by providing information regarding the big questions, “will the proposed rule stand a chance–and will there even still be a Rule of Two–under the new administration?“
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Update: SBA Proposed Rule Would Require “Rule of Two” Application to Multiple Award Contract Task and Delivery Orders (Part I)
SBA’s recently proposed rule seeks to officially broaden the reach of its “Rule of Two”–a government contracting requirement fundamental to supporting our nation’s small business infrastructure, policies, and goals. I emphasize “officially” because, even though this is technically a proposed change to SBA’s rules, it is really more of a “regulatory implementation” of judicial law than anything (don’t worry, we will go into more detail on this point later). Specially, SBA’s proposed rule would require the Rule of Two’s application to task orders and delivery orders under most standard multiple award contracts (MAC). This Part I blog will briefly explain what the Rule of Two is and detail SBA’s proposed update to it. But keep your eyes out for the soon-to-follow Part II blog on this topic. There, we will dig in a bit deeper to the Rule of Two, the policies driving it, and the potential implications for SBA’s proposed Rule of Two update.
Continue readingOMB Issues Command to Increase Small Business Participation on MACs
The White House has issued a memorandum that calls for specific procedures for Increasing Small Business Participation on Multiple-Award Contracts. To that end, OMB has recommended steps such as increasing small business order set-asides and maximizing small business set-asides across multiple types of contracts. Perhaps most importantly, OMB has directed federal agencies to apply the small business Rule of Two for all orders, which should has the potential of leading to an increase in small business set-asides. Below, we dive into these new recommendations.
Continue readingHouse Passes HUBZone Price Evaluation Preference Clarification Act of 2021
The U.S. House of Representatives recently passed H. R. 5879, clarifying the application of the price evaluation preference for qualified HUBZone small business concerns to certain contracts. If this becomes law, the Act would make sure the HUBZone Price Evaluation Preference applies to certain orders under partially restricted multiple award contracts.
Continue readingGAO: Small Business Rule of Two Doesn’t Require Set-Aside for Task Order
Generally, the small business Rule of Two requires an agency to set aside contracts for small business, assuming that there are at least two small businesses with competitive prices who will bid on the contract. But does the small business Rule of Two apply to orders under a multiple award contract? In a recent decision, GAO affirmed the answer is no–application of the small business Rule of Two for orders under a multiple-award contract is discretionary.
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