H.R. 2804 (119th)Bill Overview

Protecting Small Business Competitions Act of 2025

Commerce|Commerce
Cosponsors
Support
Democratic
Introduced
Apr 9, 2025
Discussions
Bill Text
Current stageCommittee

Referred to the House Committee on Small Business.

Introduced
Committee
Floor
President
Law
Congressional Activities
01 · The brief
Plain-English summaryWhat this bill actually does

This bill amends the Small Business Act to codify the “Rule of Two.” It requires reserving any contract, task order, or delivery order above the simplified acquisition threshold for small businesses when a contracting officer reasonably expects at least two responsible small business offers and a fair market price. The provision adds this requirement as a statutory paragraph to section 15(j).

Why people may split

Support for small-business access versus concerns about procurement efficiency

Watch point

Relative to its intended legislative type, this bill directly amends the Small Business Act to impose a statutory reservation rule (the 'Rule of Two') for certain procurements.

This bill amends the Small Business Act to codify the “Rule of Two.” It requires reserving any contract, task order, or delivery order above the simplified acquisition threshold for small businesses when a contracting officer reasonably expects at least two responsible small business offers and a fair market price.

The provision adds this requirement as a statutory paragraph to section 15(j).

Passage35/100

Content is narrow and administrative which aids passage, but enactment requires separate Senate action and possible executive branch implementation issues.

CredibilityPartially aligned

Relative to its intended legislative type, this bill directly amends the Small Business Act to impose a statutory reservation rule (the 'Rule of Two') for certain procurements. The operative mechanism is concise and assigns responsibility to contracting officers, but the text omits definitional detail, implementation guidance, fiscal acknowledgment, interaction with other procurement authorities, and accountability provisions.

Contention65/100

Support for small-business access versus concerns about procurement efficiency

02 · What it does

Who stands to gain, and who may push back.

Likely benefits vs burdens50% / 50%
Federal agenciesSmall businesses

These are examples from the analysis, not a ranked list of the most-affected groups.

Likely helped
  • Federal agenciesIncreases federal contracting opportunities available to qualifying small businesses.
  • Potential benefitLikely raises small-business revenues and may support hiring at those firms.
  • Federal agenciesCould broaden and diversify the federal supplier base by favoring small vendors.
Likely burdened
  • Small businessesMay raise procurement costs if small businesses submit higher-priced offers than large firms.
  • Potential burdenCould lengthen procurement timelines due to additional reservation determinations and documentation.
  • Potential burdenIncreases administrative burden on contracting officers to document reasonable expectation decisions.
03 · Why people split

Why the argument around this bill splits.

Support for small-business access versus concerns about procurement efficiency
Progressive85%

Likely supportive because the bill strengthens small business access to federal contracting.

It is viewed as countering contract consolidation and expanding economic opportunity for smaller firms.

Leans supportive
Centrist65%

Generally favorable to codifying a clear rule, but cautious about rigidity and possible cost or procurement delays.

Wants measurable safeguards and exemptions for complex procurements.

Split reaction
Conservative30%

Skeptical because it mandates reserving contracts for small firms, potentially reducing procurement flexibility.

Concerned about higher costs and government picking winners.

Likely resistant
04 · Can it pass?

The path through Congress.

Introduced

Reached or meaningfully advanced

Committee

Reached or meaningfully advanced

Floor

Still ahead

President

Still ahead

Law

Still ahead

Passage likelihood35/100

Content is narrow and administrative which aids passage, but enactment requires separate Senate action and possible executive branch implementation issues.

Scope and complexity
24%
Scopenarrow
24%
Complexitylow
Why this could stall
  • Absent cost estimate or CBO score
  • How agencies will interpret 'reasonable expectation' standard
05 · Recent votes

Recent votes on the bill.

No vote history yet

The bill has not accumulated any surfaced votes yet.

06 · Go deeper

Go deeper than the headline read.

Included on this page

Support for small-business access versus concerns about procurement efficiency

Content is narrow and administrative which aids passage, but enactment requires separate Senate action and possible executive branch implem…

Unlocked analysis

Relative to its intended legislative type, this bill directly amends the Small Business Act to impose a statutory reservation rule (the 'Rule of Two') for certain procurements. The operative mechanism is concise and ass…

Go beyond the headline summary with full stakeholder mapping, legislative design analysis, passage barriers, and lens-by-lens tradeoff breakdowns.

Perspective breakdownsPassage barriersLegislative design reviewStakeholder impact map
Open full analysis