Introduction

America's small businesses face an unprecedented threat. Recent presidential orders have driven federal agencies to take actions that systematically dismantle critical protections designed to ensure small businesses have fair access to federal contracts—contracts essential for sustaining local economies, fostering innovation, and underpinning national security. This threat is neither abstract nor distant: it is immediate, profound, and measurable, representing billions of dollars at risk in congressional districts nationwide.

At the center of this dismantling is the quiet erosion of the Rule of Two—a foundational legal protection.

At the center of this dismantling is the quiet erosion of the Rule of Two—a foundational legal protection mandating federal agencies to prioritize small businesses whenever at least two qualified small firms can perform contract work at fair market prices. When properly applied, the Rule of Two results directly in the establishment of Small Business Set-Asides—dedicated procurement opportunities ensuring robust competition exclusively among small businesses. The erosion of this rule is not merely a regulatory shift; it represents a direct and deliberate bypass of the Administrative Procedure Act (APA), the landmark law designed to ensure transparency, public accountability, and statutory compliance in federal regulation.

These actions are illegal, unprecedented, and catastrophic in their consequences.

Congress, economic development leaders, the media, and small business stakeholders must act now. Failure to intervene will mean immediate, severe economic harm to thousands of communities, a sharp decline in supplier diversity, innovation, and competition, and a significant redistribution of federal taxpayer dollars to a limited pool of large, incumbent contractors.

The Essential Guide to the FAR Overhaul Crisis

Restore Fair Access™ Procurement Crisis Hub

Status: Living Document