Protecting Small Business Competitions Act of 2025

This bill would lock into law a simple rule for federal contracts: 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, task orders, and delivery orders above the “simplified acquisition threshold” (the exact dollar amount isn’t listed here). The goal is to make sure small businesses get a fair shot at larger federal work and to boost competition among them .

By spelling this out in the Small Business Act, it would guide contracting officers to look for small business competition first when buying goods and services. That could mean more opportunities, revenue, and jobs for small firms in many communities, while keeping prices in line with the market .

• Key points:
  • Who is affected: Small businesses seeking federal contracts; federal contracting officers; other would-be vendors to the government .
  • What changes: Contracts above the simplified acquisition threshold must be reserved for small businesses when at least two can compete at a fair market price (“Rule of Two”) .
  • When: Upon enactment; the text does not list a specific start date .