Glossary term
Rule of Two
The requirement to set an acquisition aside for small business when at least two capable small businesses are expected to bid at fair prices.
Under the Rule of Two, a contracting officer must set an acquisition aside for small business if there is a reasonable expectation that offers will be received from at least two responsible small businesses and that award can be made at fair market prices. Sources sought responses are the evidence base for that judgment, which is precisely why responding to them matters so much.
Categories
- set-asides
- acquisition
Related terms
- Sources Sought NoticeA market research notice used to identify potential vendors and determine whether a small-business set-aside is justified.
- SBA Size StandardThe revenue or employee ceiling, set per NAICS code, below which a business qualifies as small.
- Sole SourceAn award made without full and open competition because only one source is reasonably available or a statutory exception applies.