Rule of Two for reverse auctions

The Small Business Administration wants to make one thing clear when it comes to reverse auctions: the “Rule of Two” applies.

In its rulemaking for a new mentor-protege program (see "SBA to create mentor-proteges government-wide"), the SBA is proposing amendments to clarify that the Rule of Two applies to reverse auctions.

Under the Rule of Two, contracting officers generally must create a set-aside if there are two or more qualified small businesses that can meet the requirement.

“The proposed rule is intended to make it clear to contracting officials that there are no exceptions to SBA's small business regulations for reverse auctions. Thus, the ‘rule of two,’ which directs whether a small business set-aside is appropriate, applies equally to reverse auctions as it does to regular procurement actions,” the SBA stated in its proposed rule.

More information: Federal Register notice: http://goo.gl/sIl3gQ

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