THE THREAT

For 70 years, federal law has guaranteed small businesses a fair shot at government contracts.

But a new wave of policy changes, executive orders, and agency actions is sidestepping those legal protections.

It’s reshaping the federal marketplace without Congressional approval.

Bypassing the Law

The Small Business Act, reinforced by bipartisan legislation for decades, requires that federal agencies set aside a fair share of contracts for small businesses — including women-owned, veteran-owned, minority-owned, and HUBZone firms.

But current policy shifts are ignoring that mandate.

  • Executive orders are encouraging agencies to consolidate contracts and prioritize “efficiency” over competition

  • Category Management policies encourage buying from large incumbents, even when small firms qualify

  • Regulatory rulemaking is being used to quietly override small business safeguards — including the Rule of Two

  • GSA consolidation and Schedule roll-ups are reducing access points for new or small entrants

Together, these changes are closing the door to thousands of qualified small businesses.

This isn’t reform — it’s retreat.

The government is ignoring the law and shutting out the very businesses it was built to include.

HOW IT HURTS ALL OF US

  • Fewer contracts go to local small businesses
  • Prices rise as competition declines
  • Innovation slows when the same big firms dominate
  • Community employers lose access and revenue
  • Public spending benefits fewer regions and families
  • Legal protections are weakened through non-legislative action
  • Taxpayer dollars are funneled to a shrinking number of mega-contractors
  • Our defense industrial base becomes more fragile, less responsive, and less competitive