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September 19, 2025 8 mins

On today’s Daily Windup, I hammer home one of the most powerful—and most misunderstood—concepts in government contracting: the Rule of Two. If there’s a reasonable expectation that at least two small businesses can bid at fair market prices, agencies are required to set contracts aside. Yet too often, agencies sidestep this by funneling work into IDIQs awarded to large firms. That’s why the SBA is preparing a rule change to codify and expand the Rule of Two into law—closing loopholes and creating more set-aside opportunities for small businesses.

I break down what this means for you: how small firms can shape requirements before solicitations are finalized, why teaming with competitors in logistics or IT is smarter than fighting each other, and why most small businesses are losing out simply because they’re not responding. With 55 people on our call, I stressed this isn’t theory—it’s your chance to protect opportunities from being swallowed by the big players. Learn the Rule of Two, use it, and stop letting contracts slip away.

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