# The Rule of Two in Federal Procurement: What It Is and Why It Matters

**Canonical URL:** https://www.vistatechwerx.com/all-blogs/rule-of-two
**Published:** December 12, 2024
**Last updated (companion):** 2025-08-15

## Summary
Explains the Rule of Two: when agencies reasonably expect at least two responsible small businesses to submit competitive offers, awards should be set aside for small businesses. Covers benefits, tradeoffs, and proposed SBA clarifications for multiple‑award contracts.

## Quick Definition
- If two or more responsible small businesses are expected to compete, the acquisition is set aside.
- Applies broadly to encourage small business participation.

## Why It Exists (Benefits)
- Expands opportunity and equity for small businesses.
- Encourages innovation and diversifies the vendor base.

## Potential Tradeoffs
- May reduce the number of competing offers in some cases.
- Adds administrative steps to verify market research and eligibility.

## What’s Changing (Proposed Clarifications)
- SBA proposals to clarify application on multiple‑award contracts (MACs).
- Stay tuned for final guidance; agencies and vendors should track updates.

## Practical Tips
- Small businesses: monitor procurement forecasts and register for relevant set‑aside categories.
- Primes: consider small business teaming strategies and subcontracting plans.

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