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"Rule of Two" For Small Business Set-Asides Extended to Award of Task and Delivery Orders

Oct.21.2008

In Delex Systems, Inc. (Oct. 8, 2008, http://www.gao.gov/decisions/bidpro/400403.pdf), GAO expanded the reach of FAR 19.502-2(b), which requires an agency to limit competition to small businesses when it concludes it has a reasonable expectation of receiving offers from at least two responsible small businesses and award can be made at a fair and reasonable price. GAO held that the so-called "Rule of Two" applies to task and delivery order competitions among multiple-award contract holders, opening up a new class of award decisions to the small business set-aside requirements and potential bid protests.

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Marc F. Efron
Retired Partner – Washington, D.C.
Phone:
Email: mefron@crowellretiredpartners.com
Amy Laderberg O'Sullivan
Partner – Washington, D.C.
Phone: +1 202.624.2563
Email: aosullivan@crowell.com