Protecting Small Business Competitions Act of 2026

This bill amends the Small Business Act to establish a "Rule of Two" for federal contracts. It requires contracting officers to reserve contracts over the simplified acquisition threshold for small businesses if they reasonably expect two or more small businesses can compete and offer a fair market price. The law directly affects federal agencies and small business contractors by changing how government contracts are awarded. It ensures small businesses have a clear opportunity to compete for eligible contracts without requiring them to be the sole source.