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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.

Insights

Client Alert | 5 min read | 06.01.26

California Court Upholds Insurer’s Duty to Defend After Covered Claim Is Dismissed

On April 30, 2026, the U.S. District Court for the Northern District of California issued a significant ruling in an insurance coverage dispute between a commercial general liability insurer and its policyholder. The decision addresses several critical issues in insurance law, including the scope and continuity of the duty to defend and the standard for insurer reimbursement of defense costs in mixed-claim actions. The court ruled largely in favor of the insured, SVO Building One, LLC ("SVO"), and the matter now heads toward settlement or trial on SVO's remaining counterclaims....