Contract Bundling Disallowed
The SBA issued the final regulation that will provide a strong wall of protection against the contracting practice known as 'bundling.' Bundling occurs when procurement officials combine two or more contracts, often prohibiting small firms from competing. The final rule published in the Federal Register issue dated July 26, 2000, establishes the government's formal definition for what constitutes contract bundling. The rule also establishes the parameters for bundling and requires agencies to conduct an analysis, quantify and document benefits before proceeding with a bundled contract. Lastly, the rule provides clear guidelines for small businesses that want to create teams to go after bundled contracts that can't be broken down. Simultaneous to this SBA action, the Federal Acquisition Regulatory Council implemented its final procurement rule on contract bundling.