CONTRACT BUNDLING

1
CONTRACT BUNDLING

• P.L. 105-135, TITLE IV,
• SEC. 411-SEC. 417

2
CONGRESIONAL INTENT

• Congress
• enacted P.L. 105-135, TITLE IV, SEC. 411-SEC.
  417 addresses Contract Bundling
• acknowledges that the practice has become more
  common in recent years
• concerned that the practice may result in less
  small business participation in Government
  contracts.

3
DEFINITIONS

• BUNDLING OF CONTRACT REQUIREMENTS Consolidating
  two or more requirements previously provided
  under separate smaller contractsinto a single
  contract unsuitable for award to a small
  business concern due to the
• Diversity, size or specialized nature of the
  elements of performance specified
• Aggregate dollar value of anticipated award
• Geographical dispersion of performance

4
DEFINITIONS

• BUNDLED CONTRACT -
• Contract entered into to meet requirements that
  are consolidated in a bundling of contract
  requirements
• SEPARATE SMALLER CONTRACT -
• Contract performed by 1 or more small business
  concerns or suitable for award to 1 or more
  small business concerns

5
GENERAL POLICY OF CONTRACT BUNDLING

• Foster small business participation
• Structure requirements to allow competition by
  and among small businesses
• Eliminate obstacles to SB participation
• Avoid unnecessary and unjustified bundling that
  precludes sb participation as primes

6
PROCUREMENT STRATEGIES

• Before using a bundling strategy---
• Agency shall conduct market research to determine
  if consolidation of requirement is necessary and
  justified
• Measurably substantial benefit
• Cost savings
• Quality
• Reduced cycle time
• Better terms/conditions
• Any other benefits
• But not solely admin/personnel reductions

7
PROCUREMENT STRATEGIES

• Procurement strategy to
• Document specific benefits to be derived
• Document assessment of impediments to small
  business participation as primes
• Document actions to maximize small business
  participation as subs
• Determination of benefits justifying use

8
PROCUREMENT STRATEGIES

• Agency SADBU to work with acquisition personnel (
  to revise procurement strategies,where
  appropriate, to increase SB participation as
  primes subs)
• SBA Review
• Acquisition package to SBA PCR 30 days prior to
  issuance of solicitation
• Issue is appealable
• DD350 Reporting - over 5 million

9
PROCUREMENT STRATEGIES

• Small business teaming encouraged
• To be evaluated with due consideration of all
  small businesses in the team
• Does not affect small business status
• Significant evaluation factors
• A factor thats based on a rate under the
  subcontracting plan for small business
  participation in performance of the contract
• Past performance- a factor thats based on the
  extent to which the prime attained SB goals in
  the performance of contracts

10
IMPROVED NOTICE OF SUBCONTRACTING OPPORTUNITIES

• Notices of subcontracting opportunities may
  be submitted for publication in the Commerce
  Business Daily by
• Business concern awarded a contract
• By an executive agency
• A business concern thats a subcontractor
• Or supplier to a subcontractor having an
  opportunity that exceeds 10,000

11
DESC CONSIDERATIONS

• Each federal agency, to the maximum extent, shall
  comply with the congressional policy of
  fostering participation of small business
  concerns in contracting opportunities of the
  government,
• In consonance with congressional intent DESC
  considered all small business programs which
  foster small business participation including
  contract bundling for each new initiative,
  demonstration or requirement.

12
REGULATIONS

• PROPOSED RULE - 120 DAYS
• Scheduled April 1, 1998
• Forwarded from SBA to OMB prior to publication in
  Federal Register
• 60 DAY COMMENT PERIOD
• FINAL RULES REQUIRED - 270 days
• August 29,1998 (approx.)

13
SENATE COMMITTEE ON SMALL BUSINESS

• WEB SITE
• http//www.senate.gov/sbc
• ADDRESS
• Senate Committee on Small Business
• Room 428a
• Senate Russell Office Building
• Washington, D.C. 20510
• Phone [phone]