House Small Business Panel Urges Plain‑Language Solicitations and Warns Erosion of “Rule of 2” Could Shrink Contractor Pool

The House Committee on Small Business heard testimony Wednesday on barriers that keep small businesses from competing for federal contracts, with lawmakers and industry witnesses urging plain-language solicitations, stronger enforcement of small-business protections and concern about consolidation that pushes smaller firms out of the market.

Committee Chair Laloda opened the hearing by saying, “Small businesses are the economic engine of America,” and argued that solicitations written in dense legal and technical jargon deter bidders. He told the panel he had introduced the bipartisan Plain Language Contracting Act and said, "The House has already passed this bill with strong bipartisan support," calling on the Senate to take it up.

Why it matters: Witnesses described several concrete costs and market effects that, they said, reduce competition and the industrial base. Small firms said regulatory compliance, cybersecurity standards and procurement practices favor large incumbents; lawmakers warned that fewer rivals mean less innovation and higher taxpayer costs.

Testifying, Michael Ramos, president of Raymond Global, said compliance requirements are already expensive and uncertain: "Compliance with a level 2…