I. The Assault: How Regulatory Protections Are Being Quietly Erased
Federal procurement rules designed explicitly by Congress to protect and enhance small business competition have been systematically dismantled by recent regulatory maneuvers. These actions have not occurred through changes in the underlying law but through the covert erosion of enforceable regulations. These regulatory revisions have not only removed essential protections but have also introduced entirely new frameworks—all without Congressional oversight or APA compliance. This illegal and unprecedented approach is what we call the Deviation Doctrine.1
The Regulatory Cascade
The erosion is driven by a coordinated series of Presidential Executive Orders (EOs 14275, 14276, 14265) and subsequent Federal Acquisition Regulation (FAR) revisions. Executive Order 14275, issued on April 15, 2025, instructed agencies to purge regulations that were not explicitly statutory.1,2 While marketed as a step towards "modernization," in practice, it has led to systematic removal of the regulatory infrastructure essential for enforcing statutory protections such as the Rule of Two.
- Market Research Requirements, which trigger the Rule of Two (FAR Part 10)3
- Contract Clauses Enforcement, which protect small business access (FAR Part 52)4
- Transparency and Accountability (FAR 1.404 & FAR Subpart 1.5)5,6
These actions are not just rule deletions—they represent the illegal creation of a fundamentally new regulatory regime, one characterized by informality, discretion, and opacity, directly violating both the letter and spirit of the APA.1,2
Real-World Impact at the Congressional District Level
The economic stakes are staggering. In Texas District 25 alone—the district of the Chair of the House Small Business Committee—federal small business contracting generates an average of $209.51 million annually, with over 63% directly secured through set-asides. Yet, small business vendor participation in his district has already plummeted by 57.3% since 2008.7 In New York’s 1st District, home to the Chair of the Subcommittee on Contracting and Infrastructure, over $216 million is at risk, with vendor participation down nearly 29%.8 Similar scenarios play out in Georgia's 3rd District and Delaware At-Large, where hundreds of millions in economic activity and local jobs directly depend on robust enforcement of the Rule of Two.9,10
Call to Action
This assault on regulatory protections, small business participation, and local economies demands immediate action. Congress must urgently enforce compliance with the APA, explicitly reinstate the procedural infrastructure for the Rule of Two, and halt these illegal regulatory actions before permanent damage occurs. Every day of inaction deepens the economic crisis, reduces competition, and erodes America's small business base—damage from which recovery could take decades, if ever fully possible.