The Rule of Two May Be on the Chopping Block—Here’s What Small Contractors Need to Know

In a June 2025 update, legal powerhouse PilieroMazza dropped a bombshell that every small federal contractor should be paying attention to: the FAR Council is weighing a rollback of the long-standing “Rule of Two.” This foundational policy requires agencies to set aside contracts for small businesses when at least two qualified firms can bid at a fair market price. If the rollback proceeds, it could dramatically reduce the number of set-aside opportunities in the federal marketplace.