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119-hr-2804119th CongressWALLET

Protecting Small Business Competitions Act of 2026

Sponsored By: Representative Velázquez, Nydia M. [D-NY-7]

In Committee

Summary

Would codify the "Rule of Two" to require reserving certain federal contracts for small businesses. It would require that contracts for goods or services above the simplified acquisition threshold (SAT) be set aside when a contracting officer reasonably expects two or more responsible small business concerns to offer and the award would be at a fair market price. Delivery orders and task orders are excluded from this reservation requirement.

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  • Small businesses: Increases the chance that above‑SAT contracts are competed only among small business concerns when two or more are expected to bid.
  • Federal contracting officers and agencies: Requires them to reserve an above‑SAT procurement for small business competition if two responsible small firms are reasonably expected and fair market price is anticipated.
  • Larger contractors: Could lose opportunities to compete for some above‑SAT procurements that become set aside for small businesses.

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Bill Overview

Analyzed Economic Effects

1 provisions identified: 1 benefits, 0 costs, 0 mixed.

More federal contracts for small businesses

If enacted, the bill would add a "Rule of two" to the Small Business Act. For covered federal contracts worth more than the simplified acquisition threshold, contracting officers would reserve the contract for small businesses when they reasonably expect two or more responsible small business offers and to award at a fair market price. Delivery orders and task orders would not be covered. This would give eligible small businesses more chances to win federal contracts above the threshold.

Sponsors & CoSponsors

Sponsor

Velázquez, Nydia M. [D-NY-7]

NY • D

Cosponsors

  • Rep. Cisneros, Gilbert Ray [D-CA-31]

    CA • D

    Sponsored 4/21/2025

  • Rep. Davids, Sharice [D-KS-3]

    KS • D

    Sponsored 10/28/2025

  • Rep. Case, Ed [D-HI-1]

    HI • D

    Sponsored 3/18/2026

  • Rep. Williams, Roger [R-TX-25]

    TX • R

    Sponsored 5/19/2026

Roll Call Votes

No roll call votes available for this bill.

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