Business Utilization and Development Memorandum (BUDM) 00-04
General Accounting Office Report on Contract Bundling
D-7800
ACM-1.10
To: Regional Director, P.N., MP, LC, UC, GP
Attention: PN-3702, PN-3703, MP-825, LC-3103, UC-458, GP-3800
Director, Administrative Service Center
Attention: D-2945
Director, Management Services
Attention: D-7810
From: Ron Simonich
Manager, Business & Economic Development Program
Subject: Business Utilization and Development Memorandum (BUDM) 00-04 - General Accounting Office Report on Contract Bundling
The Small Business Reauthorization Act of 1997 defines bundling of contract requirements as the consolidation of two or more procurement requirements for goods or services previously provided or performed under separate, smaller contracts into a solicitation of offers for a single contract that is likely to be unsuitable for award to a small business concern due to (1) the diversity, size, or specialized nature of the elements of performance specified; (2) the aggregate dollar value of the anticipated award; (3) the geographic dispersion of contract performance sites; or (4) any combination of these three criteria. This definition may be found at FAR 2.101. The FAR definition also describes "separate smaller contract" as a contract that has been performed by one or more small business concerns or that was suitable for award to one or more small business concerns.
At the request of Senator Christopher Bond, Chairman, Committee on Small Business, the GAO prepared a report (B-284554 dated March 31, 2000) on the effect of contact bundling on small businesses. I am attaching a copy of this report for your information.
As pointed out in the report, by regulation, contracting officers are required to notify SBA of bundled contracts. This mandate is set forth in the FAR at 19.202-1(e)(1)(iii). Please ensure that your contracting officers are aware of this requirement.
Should you have any questions on this subject, please contact me at (303) 445-2447.
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