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Size standards and the "rule of two"

Foundation12 min

By the end you can

  • Say what a size standard decides.
  • Describe the expectation that triggers a small business set-aside.

Size decides eligibility. SBA's size standards define whether a business entity is small and therefore eligible for government programs and preferences reserved for small business concerns 1.

Set-asides turn on a reasonable expectation of competition. The FAR's test looks for offers from at least two responsible small business concerns, which is why practitioners call it the "rule of two" 2. The same test also requires a reasonable expectation that award will be made at fair market prices 3.

This is why answering market research matters for small firms: the contracting officer needs evidence that capable small businesses exist.
Check 1
What do SBA's size standards decide?

In Bids2Bank's qualification score, how well a notice's set-aside fits your company carries 15 of the 100 points 4.

Check 2
The "rule of two" asks whether offers are expected from at least how many responsible small business concerns?

Filter SAM.gov notices by set-aside →

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