On October 25, 2024, the Small Business Administration issued a proposed rule addressing multiple-award contract task and delivery orders. The proposed rule would require an agency to “set aside the award for small businesses where there is a reasonable expectation of receiving offers from two or more small-business contract holders” subject to certain exceptions. The Rule of Two would apply if the small business offers were expected to be competitive with respect to price, quantity, and delivery.

More specifically, the proposed rule clarifies the applicability of the Rule of Two under a multiple-award contract by instructing the agency to set aside an order when the conditions described above have been met. If the agency cannot set aside an order, the contracting officer would be required to document the rationale and inform the cognizant small business specialist or appropriate official.

Comments on the October 25 proposed rule, which can be found here, are due on or before December 24, 2024.