Protecting & Promoting the Interest of Small Business Federal Contractors


As a benefit to membership, NaFCA offers a number of services to its members.

Rule of Two

Usage of the Rule of Two can enable your small business to create your own opportunities. Here’s how use of the Rule of Two can benefit you and your business:

The Rule of Two strategy has two elements; set-aside retention and set-aside pursuit. By set-aside retention, we ensure that certain requirements remain classified as Small Business Set-Aside (SBSA) and don’t transition into the full and open competition arena. Set-aside pursuit, refers to the process of ensuring that federal contracting officers classify applicable upcoming requirements as SBSAs. You must be ready to act to make certain contracting officers are being accurate in their decisions with respect to whether or not to designate a requirement as a SBSA.
The Rule of Two involves issues relating to North American Industry Classification System (NAICS), designations and size standard issues that play a significant role in your efforts to pursue and retain SBSAs. It is necessary to execute a defined, consistent and ongoing strategy to ensure each opportunity is designated as a SBSA or remains a SBSA with an appropriate NAICS designation and at an appropriate size standard that enables you to compete.
The Rule of Two requires that federal contracting officer’s set-aside requirements for competition limited to small business, so that they are aware that two or more small businesses qualify to compete successfully. This rule is further codified in the Federal Acquisition Regulations (FAR). The Rule of Two is managed according to Title 48: Federal Acquisition Regulations System, Part 19 – Small Business Programs, Subpart 19.5—Set-Asides for Small Business.
The purpose of a Rule of Two Policy is to set forth procedures whereby operations division vice presidents, program managers, business development professionals, solutions development managers, and capture managers will organize their efforts in relation to capturing new small business requirements and retaining existing small business requirements in the small business marketplace.

Download our Rule of Two at a Glance Presentation

Download our Rule of Two Online Training Module

Download a Sample Rule of Two Policy Document


NaFCA wants to assist small businesses with their approach to Requests for Information (RFIs) or sources sought (SSS). To that end we have made available a RFI/SSS overview presentation which you may use to benefit your business.

Download our RFI/SSS Overview Presentation