Local opinion: Federal contracting reforms are leaving small businesses behind

As the owner of two small manufacturing businesses in Tucson — Sonoran Stitch Factory and Postcraft Products — I’ve spent years building local jobs, investing in American-made goods, and competing for federal contracts that help sustain our operations. But recent changes to federal procurement policy have made that competition increasingly uncompetitive for small businesses like mine.

The Rule of Two, a longstanding principle in federal contracting, required agencies to set aside contracts for small businesses when at least two businesses could perform the work competitively. It was a simple, effective way to ensure that small businesses had a fair shot at federal opportunities. Now, under a wave of class deviations and regulatory rollbacks, that rule has been suspended or weakened across many agencies.

This change is more than bureaucratic — it’s a betrayal of the very values our government claims to uphold. The current administration has spoken at length about supporting small businesses, reshoring manufacturing, and building resilient supply chains. Yet by removing the Rule of Two, they’ve made it harder for small, domestic manufacturers to compete, while large contractors — many of whom outsource overseas — gain even more ground.

The Rule of Two wasn’t a handout. It was a bipartisan promise, codified in the Federal Acquisition Regulation (FAR 19.502-2), that if small businesses could compete, they would be given the chance. This rule required contracting officers to set aside acquisitions for small businesses when there was a reasonable expectation that at least two responsible small businesses could submit competitive offers. Its rollback sends a troubling message that deregulation is being prioritized over innovation, long-term economic resilience, and the American small business. By sidelining this rule through class deviations, the government is effectively telling small manufacturers that efficiency and expediency matter more than domestic economic development. This shift not only contradicts the administration’s stated goals of reshoring and revitalizing American industry — it also weakens the very foundation of fair competition in federal procurement.

In fiscal year 2023, small businesses received over $160 billion in federal contracts—more than 26% of total eligible contracting dollars. Removing the Rule of Two threatens to reverse this progress and diminish the role of small businesses in our national supply chain.

That’s why I’m calling on Arizona’s congressional Representatives to vote yes on H.R. 2804, the Protecting Small Business Contracting Act. This legislation would codify the Rule of Two and restore fairness to the procurement process.

Small businesses like mine aren’t asking for favors — we’re asking for a level and competitive playing field. The Rule of Two gave us that. Its rollback is a step backward for American small businesses.