Key Terms & Definitions
Understanding the Terms That Shape Access
Federal contracting can be complex — and sometimes intentionally confusing. Restore Fair Access™ is here to make it clear.
This page defines key terms and legal principles that directly impact small business participation in federal procurement. From set-asides to the Rule of Two, we explain what these terms mean, why they matter, and how they’re being threatened.
Jump to: Rule of Two | Set-Aside | Contracting Goals | Kingdomware | Category Management | GSA Consolidation | Schedule Roll-Ups | Small Business Act | Bundling & Consolidation | FAR
✔ Rule of Two
Definition: If two or more responsible small businesses can perform a contract at a fair market price, the contract must be set aside for small business.
Why It Matters: This rule is the foundation of competitive access for small business. It is legally binding under the Small Business Act and the FAR. The Supreme Court reaffirmed it in Kingdomware Technologies v. United States (2016). Agencies must apply it before defaulting to larger firms.
✔ Set-Aside
Definition: A contract or portion of a contract that is reserved exclusively for small businesses or for specific small business groups, such as Women-Owned, Veteran-Owned, HUBZone, or 8(a).
Why It Matters: Set-asides are tools that allow the federal government to meet its small business participation goals. Without them, small firms are often shut out by scale, incumbency, or administrative burden.
✔ Contracting Goals
Definition: Contracting goals are federal targets for how much of the government’s annual procurement spending must go to small businesses — including specific subcategories like Women-Owned, Service-Disabled Veteran-Owned, HUBZone, and 8(a) firms.
Why It Matters: These goals aren’t symbolic — they’re enforceable targets that drive agency behavior. When goals are missed or deprioritized, entire segments of the small business community lose access. Tracking, reporting, and defending these goals is key to ensuring real opportunity, not just policy on paper.
✔ Kingdomware Technologies v. United States
Definition: A 2016 Supreme Court case in which the Court held that the Rule of Two is mandatory, not optional, and must be applied when awarding contracts at the Department of Veterans Affairs.
Why It Matters: This case set a powerful precedent for the application of small business protections across the federal government. It confirmed that agencies cannot ignore the law when it comes to small business access.
✔ Category Management
Definition: A procurement strategy that groups purchases into standardized categories and awards them through large pre-approved contracts.
Why It Matters: While intended to streamline buying, category management often excludes small businesses by favoring incumbent, large vendors. It centralizes purchasing and can bypass competitive entry for new or niche suppliers.
✔ GSA Consolidation
Definition: The merger of multiple GSA contracting schedules into the single Multiple Award Schedule (MAS).
Why It Matters: While promoted as simplification, GSA consolidation reduced flexibility for small firms, eliminated some niche access pathways, and narrowed eligibility. It has decreased competition by favoring larger suppliers who can handle broad contract scopes.
✔ Schedule Roll-Ups
Definition: The practice of combining multiple agency-specific or specialized contract schedules into a single, larger vehicle.
Why It Matters: Roll-ups often eliminate tailored access points that small businesses used to rely on. This not only reduces visibility but also reduces competition by crowding out smaller firms in favor of one-size-fits-all solutions.
✔ Small Business Act (15 U.S.C. § 631 et seq.)
Definition: The foundational law that created the federal small business contracting program. It outlines federal goals, agency responsibilities, and enforcement mechanisms.
Why It Matters: The Act mandates that small businesses receive a fair share of federal contracts. It forms the legal basis for programs like the Rule of Two and set-asides. The Restore Fair Access™ campaign is rooted in defending the letter and intent of this law.
✔ Bundling vs. Consolidation
Definition: Both are procurement practices that combine multiple contracts or needs into one larger contract.
Bundling refers to combining requirements in a way that may be unsuitable for small businesses.
Consolidation refers to merging similar contracts, often for efficiency.
Why It Matters: These practices can lock small businesses out of contracts they would have been qualified to compete for individually. They are a major reason small business participation has declined.
✔ FAR (Federal Acquisition Regulation)
Definition: The rulebook that governs all federal purchasing and contracting. It includes detailed procedures for how agencies must plan, compete, and award contracts.
Why It Matters: The FAR contains enforceable rules that protect small businesses, including the Rule of Two, small business goaling, and set-aside procedures. Knowing what the FAR requires helps small firms hold agencies accountable.
More terms coming soon. To suggest a term, email contact@restorefairaccess.org