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Proposed contract bundling changes aim to increase small business contracting

August 4, 2015 By Nancy Cleveland

As required by the Small Business Jobs Act of 2010, on June 3, 2015, the FAR Council introduced a proposed change to the FAR contract bundling requirements. 80 Fed. Reg. 31,561-01. The proposed rule aims to improve small business participation in federal contracting by clarifying existing FAR regulations that discourage agency utilization of contracting bundling. The proposed rule would require increased reporting, parses the definitions of “bundling” and “consolidating” of contracts, and requires agencies to publicly justify their decisions to bundle requirements or consolidate contract vehicles. This definitional distinction between bundling of requirements and consolidation of contracts is intended to discourage agencies from combining unrelated requirements or contracts into a single award.

Under the proposed rule, agencies that bundle contracts or requirements in excess of $2 million will face greater notification and reporting requirements. If an agency wants to bundle two existing contracts, it must first notify small businesses at least 30 days beforehand of its intent to bundle its contracts. Agencies will also be required to provide public notice of the agency’s bundling policy and a list of and rationale for any bundled requirements for which the agency solicited offers or issued an award. If adopted, the proposal’s enhanced notification requirements may afford small business contractors an opportunity to protest an agency’s improperly bundled contracts.

Keep reading this article at: http://www.mondaq.com/unitedstates/x/415754/Government+Contracts+Procurement+PPP/Proposed+Contract+Bundling+Changes+Aim+To+Increase+Small+Business+Contracting

Filed Under: Contracting News Tagged With: bundling, consolidated contracts, consolidation, contract bundling, FAR, proposed rule, Small Business Jobs Act, unbundle

It’ll cost $1 million to get better data on bundled federal contracts

May 7, 2014 By ei2admin

A bill that would require agencies to do a better job of reporting when they combine what could be smaller contracts into a single solicitation would cost about $1 million over five years, according to the Congressional Budget Office (CBO).

The 2014 Contracting Data and Bundling Accountability Act aims to improve how agencies report their consolidated and bundled contracts. Agencies consolidate contracts by including multiple requirements in a single solicitation, and if the resulting contract becomes unsuitable for small businesses to bid on — because it’s too large or diverse, for instance  — it’s considered a bundled contract. Agencies are supposed to identify and then justify the move when they’ve either consolidated or bundled a contract.

CBO said it believed agency data on consolidated and bundled contracts is already available, but the analysis conceded that the Small Business Administration would require better software to retrieve that data from the Federal Procurement Data System. The software upgrade would cost about $1 million between 2014 and 2019, CBO said.

Small business advocates argue that the real problem is federal procurement officials are not properly reporting their consolidated contracts.

Keep reading this article at: http://www.nextgov.com/cio-briefing/2014/04/cost-better-data-bundled-federal-contracts/83164 

Filed Under: Contracting News Tagged With: bundling, CBO, contract bundling, DoD, FPDS, GAO, GSA, NDAA, SBA, unbundle

USAID pushes for more competition, less onerous regulations

January 5, 2012 By ei2admin

The U.S. Agency for International Development is seeking to increase competition for its contracts and make its programs more accessible to small and disadvantaged businesses as part of a larger agency-wide reform effort.

Concerned that a reduction in contracting staff has led to an increased reliance on a fairly small group of contractors and nongovernmental organizations, USAID has made changes to its procurement program a key part of its reform.

In its plan for change, the agency says it is “falling short” in accessing the full range of talent in both U.S. businesses and organizations and those in developing countries.

USAID has started by promoting more competition within its programs, particularly focusing on setting aside more awards for small and disadvantaged businesses.

The agency has established a review board that looks at ways to make large contracts more accessible to small businesses, such as by splitting them into smaller pieces, said Aman S. Djahanbani, USAID’s chief acquisition officer.

“Broadening our partner base … just makes good business sense, and it furthers sustainable development,” Djahanbani said.

At the same time, the agency is trying to work with more of the organizations and companies that are local to a given country. Littleton Tazewell, senior adviser to USAID’s general counsel for implementation and procurement reform, said the agency often relies on intermediaries — such as U.S.-based contractors or international nongovernmental organizations — to work with local bodies.

“The idea here is to increase our direct engagement with local organizations,” said Tazewell, who said a deeper understanding of local
organizations will help USAID craft better solicitations.

The agency also is seeking to make its regulations and rules less burdensome to encourage more companies and organizations to compete for contracts and grants.

USAID acknowledged that some larger contractors or NGOs may see reduced work as a result of its procurement reform moves.

“Our partners need to realize that there is more competition,” said Djahanbani. “However, they definitely have a role to play — maybe a different role.”

For instance, he said, in some cases a local organization could serve as the prime contractor while an international or U.S.-based organization could function as a subcontractor.

Tazewell said USAID has engaged the companies and organizations it frequently uses as it reforms in an effort to identify their particular problems.

Still, USAID is only about 18 months into what it expects to be a five-year process, Tazewell said.

“We’re going to trip and make some mistakes along the way, but our expectation is at the end of that five-year process we’ll be a much better organization,” he said. “We will have a structure [and a] regulatory framework that allows for a broadened partner base that’s both local- and small business-oriented.”

— by Marjorie Censer – The Washington Post – published December 25, 2011 at
http://www.washingtonpost.com/business/capitalbusiness/usaid-pushes-for-more-competition-less-onerous-regulations/2011/11/28/gIQA1chUHP_story.html.

Filed Under: Contracting News Tagged With: competition, local business preference, procurement reform, small business, small disadvantaged business, subcontracting, unbundle, USAID

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