SBA and GSA, OFPP not seeing eye-to-eye on ‘rule of two’ application

A major dispute is brewing in the small business community. Just four months after the Supreme Court’s June 16 unanimous decision on the Kingdomware case, the Small Business Administration is taking a stand on the “rule of two” that is stressing out industry and agencies alike.

As a quick reminder, the nation’s highest court ruled in the Kingdomware case that the Veterans Affairs Department must continue to apply the “rule of two” for veteran-owned small businesses even if the agency surpassed its annual prime contracting goal. The “rule of two” states if an agency can find two or more qualified small businesses during market research of a contract under the Simplified Acquisition Threshold — between $3,000 and $150,000 — it must set aside the solicitation.

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