Small Business Set Aside- Rule of Two
What is the "Rule of Two" in RFP small business set asides? The Rule of Two is a contracting agencies guideline to set aside a contract for small business if at least 2 contractors respond to a Market Research, RFI, or Sources Sought for a contract requirement of at least $150K or more, and they prove to be capable of performing the contract at a fair market rate.
Many contracting officers send out RFI's and Sources Sought for feedback from the contracting community to see if there is a sufficient number of responses from capable, qualified Small Businesses that are interested to bid the requirement. Unless the contracting command specifically doesn't allow a set aside on that particular requirement, the contracting officer can post the actual RFP as a "set-aside" meaning that companies who are registered in?SAM.gov?as a small business have priority to bid the contract. There are two ways of establishing your company as a Small Business which are by self declaration or by certification from the SBA. This only applies to US Based companies but can apply to any RFP as long as the contract requirement is allowed to establish a set-aside. To increase competition on foreign contracts, the KO usually doesn't establish a set-aside but this has changed in the last 18 months. There are more and more contract requirements that require at least a % of the overall contract to be set aside for Small Businesses. Congress recently increased the amount of DoD contracts set aside for Small Business. Check out this article House-Passed 2022 NDAA Raises Small Business Goal to 25% and Increases SDVOSB, HUBZone, SDB and WOSB Goals - SmallGovCon
If you need assistance in SBA registration and responding to Sources Sought, RFI's, or Market Research postings to convince the KO to establish a set-aside on the RFP, email me at?[email protected]
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