Protecting Small Business Competitions Act of 2025

This bill would write into law a simple rule for federal buying: if the government expects at least two qualified small businesses to bid, and the price is fair, then the contract must be set aside for small businesses. This applies to contracts and orders above the government’s simplified purchase limit, which is a standard dollar cutoff used in federal buying.

In plain terms, more federal contracts would be reserved for small businesses when there’s real competition and a reasonable price. It takes a long-standing practice and makes it a clear legal requirement.

• Who is affected: small businesses that sell goods or services to the federal government; federal contracting officers; larger companies that also compete for federal work.
• What changes: when two or more responsible small firms are expected to bid at a fair market price, the contract must be reserved for small businesses.
• When: would apply to covered contracts going forward if enacted into law.