Is the $10M Threshold a Game-Changer or a Setback? What Small Businesses Must Know About the GSA Overhaul

Written By Kara Ryles

The General Services Administration (GSA) is shaking up the acquisition landscape in what many are calling the most aggressive overhaul of federal procurement in two decades.

One of the most talked-about updates? The proposed Simplified Acquisition Threshold increase—from $250,000 to $10 million for commercial items.

Sounds like great news for efficiency, right? Not so fast.

Here’s what small business contractors need to know:

  • Set-Asides No Longer Mandatory Between $250K and $10M
     GSA’s overhaul proposes freezing the “Rule of Two” at the current $250K level. That means agencies will no longer be required to reserve mid-sized contracts for small businesses if they fall between $250K and $10M—potentially opening those awards up to large competitors.

  • More Open Competition, Less Automatic Protection
     This will not eliminate all small business set-asides—but it shifts the burden onto small businesses to differentiate themselves. Expect to see more full-and-open competitions in that mid-range value band.

  • Strategic Response: Time to Build Partnerships and Prime-Ready Capacity
     If you’re a small business in the federal space, now is the time to:

  • Form joint ventures under SBA’s Mentor-Protégé program

  • Prepare to subcontract on larger vehicles

  • Sharpen your win themes and proposal strategies for best-value competitions

Bottom Line: This is a call to evolve, not retreat. If you’re ready to c

Kara Ryles