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

Client Alert | less than 1 min read | 10.21.08

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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Client Alert | 2 min read | 07.24.26

GAO Finds That Challenge to Agency’s Failure to Comply With DFARS Requirement Comes Too Late

GAO’s recent dismissal of the protest in Tyonek Technical Innovations, LLC, B-424364, B-424364.2, June 30, 2026, carries an important lesson for government contractors: if you believe solicitation terms conflict with a statute or regulation, you must raise that challenge before proposals are due—not during discussions or afterwards....