FAR 2.0 Update: Small Business Rule of Two Lives on in Part 19 – Small Business

Many federal contractors have heard about the revamping of the Federal Acquisition Regulation. Variously called FAR 2.0, the Revolutionary FAR Overhaul, or simply RFO, this project has been undertaken by the Office of Federal Procurement Policy (OFPP) and the Federal Acquisition Regulatory Council (FAR Council). An executive order got the ball rolling, setting forth the mandate to create FAR 2.0 by October 12, 2025. We wrote about it in our earlier post, and described it as two parallel tracks. Track 1 involves a rewrite into “plain language” and removing non-statutory and unnecessary content. Track 2 involves the development of the non-mandatory guidelines to guide procurement officials.

Our earlier posts regarding the RFO can be found here: Executive OrderOverview of FAR 2.0FAR Part 6, FAR Part 8.

The revision of the FAR sections has continued over the past few months, with additional proposed revisions being released throughout 2025. In this post, we’ll review one proposed revision that seems to make some significant changes to the language: Part 19 – Small Business. A key takeaway is the FAR will retain the small business rule of two.

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Conference Announcement: ICBS Show, Oklahoma City, October 14-16, 2025

The Indian Country Business Summit (ICBS) is hosting its annual ICBSSHOW in Oklahoma City next month. And our very own Gregory Weber will be attending and presenting on federal contracting legal updates. This presentation will be a great way for contractors to stay on top of all the recent updates in federal contracting. So, please stop by our table to say hello or if any questions come up after the presentation.

The ICBSSHOW offers informational sessions featuring experts in government procurement, connection and networking opportunities, and a day of matchmaking to introduce you and your business to government decision makers. It also provides invaluable access to government agency buyers and policy leaders, prime contractors, and tribal procurement representatives looking to expand their vendor pools.

For additional event details and registration use this link. Hope to see you there!

SmallGovCon Week in Review: September 22-26, 2025

Hello, SmallGovCon Readers! It’s Friday and time for another week in review.

A potential government shutdown is prominent in this week’s headlines and poses some challenges for federal contractors. As negotiations in Congress drag on, contractors are faced with a lot of uncertainty. You can read more about this and strategies to deal with the government shutdown in articles below.

Please check out the blog from our SmallGovCon contributor Nicole Pottroff for some best practices for federal contractors:

Strategies for Dealing with a Government Shutdown

Have a great weekend!

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SBA’s SDVOSB Warning: Spell Out Veteran Control in Business Documents and Minutes

It is quite common for businesses in the private sector to share control and duties among many executives or individuals. However, as many who have looked into SBA socioeconomic certifications have found out, to gain certification in a set-aside program, basically all control needs to reside with one individual. Recently, the SBA’s Office of Hearings and Appeals (OHA) reviewed a SDVOSB recertification denial, and provided a reminder to contractors interested in the SDVOSB and VOSB program that the veteran must be the sole individual in control.

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OHA: Size Protest Review Must be More Than a Rubber Stamp

As Federated Maritime, LLC, SBA SIZ-6360, 2025 demonstrates, an agency’s review of a size protest must be more than just a surface-level review and a rubber stamp. This size appeal started with a disappointed bidder (here, the Appellant) that questioned the relationship between Schuyler Line Navigation Company, LLC (or Awardee), a company that won two cargo charter contracts, and its alleged affiliates. The contracts were 100% set-aside for small businesses under NAICS Code 483111 – Deep Sea Freight Transportation.

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SmallGovCon Week in Review: September 15-19, 2025

Happy Friday. Federal contracting is seeing a lot of movement lately. Contractors, as usual, must stay flexible as the federal acquisition world and rules keep shifting. With regulatory updates rolling out and fresh talk of bid protest reforms, contractors have a lot to keep up with. Luckily, we have summarized these updates for you!

You can read more about what is happening in federal government contracting this week, in the articles below, including a bipartisan bill on price gouging by contractors and talks of a a potential shutdown.

Have a great weekend!

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A Refresher on How the Small Business Rule of Two Generally Works

We have talked a good deal about the Small Business Rule of Two (not to be confused with the separate VA rule of two for veteran-owned businesses) over the years. The (very) general gist of the rule is this: If the procurement is above the simplified acquisition threshold, the agency must set it aside for small businesses if two or more small businesses can perform the work at fair prices. If the agency has a reasonable expectation that two or more SDVOSB/VOSBs, EDWOSBs/WOSBs, 8(a) participants, or HUBZone participants can perform work under a procurement, the agency must consider setting aside the procurement for that particular category (i.e., if it believes two or more 8(a) participants can perform the work, it can set aside the procurement for 8(a) participants). However, it appears there remains a good deal of confusion about what the Rule of Two requires, as opposed to what it simply permits. In a recent GAO protest, a contractor learned this the hard way, and today, we’ll explore that decision.

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