Lizzie Sullivan has been pushing the Rule of Two through Congress for years now, and this year is the best shot to get that vital rule for small businesses into statutory law, she says. But opposition from an unexpected source has popped up.

Sullivan, the president of Madison Services Group, joined me on GovCon Intelligence to discuss the prospect of Congress passing the Rule of Two—which would boost small business set-asides for years to come. We also talked about why 151 is a bad number of IT value-added resellers, the bill that would end the women-owned small business program, and what to expect out of SBA’s size standards.

Links

* Elizabeth Sullivan on LinkedIn: https://www.linkedin.com/in/esullivanmsgi/

* Madison Services Group:

https://madisonservicesgroup.com/

* Women’s Procurement Circle:

https://www.procurementcircle.org/

* H.R. 2804, Protecting Small Business Competitions Act of 2025: https://www.congress.gov/bill/119th-congress/house-bill/2804/text

* GSA Summary of Results of Request For Information (RFI) about IT hardware procured through Value Added Resellers (VARs): https://buy.gsa.gov/interact/community/6/activity-feed/post/ed096e0c-4d52-459f-895c-37c9e95884de/

* SBA Proposed Rule on Monetary-Based Size Standards: https://www.federalregister.gov/documents/2025/08/22/2025-16142/small-business-size-standards-monetary-based-industry-size-standards

* H.R. 7154, Streamlining Small Business Contracts Act of 2026: https://www.congress.gov/bill/119th-congress/house-bill/7154/text

* SBA Proposed Rule on Social Disadvantage in the 8(a) Program: https://www.federalregister.gov/documents/2026/06/11/2026-11765/reforms-to-remove-sbas-8a-programs-rebuttable-presumption-of-social-disadvantage-for-individually

* S. 4390, Ending Discrimination in Government Contracting Act: https://www.congress.gov/bill/119th-congress/senate-bill/4390/text

* Federal News Network: “SBA kicks off new audit of economically disadvantaged contractors” https://federalnewsnetwork.com/acquisition-policy/2026/06/sba-kicks-off-new-audit-of-economically-disadvantaged-contractors/

Chapters

00:00 - Introduction to GovCon and the Rule of Two

01:28 - The History and Legislative Push for H.R. 2804

03:58 - Understanding the Tolliver Case and Task Orders

05:28 - Bipartisan Support and the NDAA Vehicle

11:15 - Navigating Mandatory Sources and AbilityOne Concerns

14:45 - The Importance of Codifying the Rule of Two

17:35 - GWAC Innovation, Pools, and the Shift in Task Orders

19:26 - The IT Value-Added Reseller (ITVAR) Size Standard Debate

26:05 - The Value of ITVARs vs. Direct Procurement and OneGov

30:46 - The Fight to Raise Sole Source Thresholds

35:50 - The Impact of Compressed Buying Years and Competition

38:54 - Reimagining the OSDBU and the 8(a) Proposed Rule

41:43 - Women-Owned Small Business Entry into the 8(a) Program

44:57 - Legislative Threats to Small Business Set-Aside Programs

47:49 - Deconstructing the EDWOSB Audit and Program Origins

52:47 - Overcoming the Scrutiny and Complexity of the WOSB Program

55:18 - Strategies for Capability Statements and Mission Alignment

58:26 - A Plea for Small Business Unity Against Large Competitors

59:41 - Wrapup

Go to http://govconintelligence.com for a full transcript

With 20 years of Federal legal experience, Sam Le counsels small businesses through government contracting matters, including bid protests, contract compliance, small business certifications, and procurement disputes. Sam obtained his law degree from the University of Virginia and formerly served as SBA’s director of procurement policy. His website is www.samlelaw.com. This video is for informational purposes only and does not constitute legal advice.

This episode of GovCon Intelligence was produced by Amelia Delphos.

This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit www.govconintelligence.com