White House Vows to Reverse Effects of Excess Contract Bundling
The Small Business Administration issued a report detailing the facts that the number and size of bundled contracts has reached a record number and that small businesses are receiving disproportionately smaller shares of the work on these contracts. Bundled contracts are those that combine previously separate requirements within a single contract which often becomes so large that only non-small businesses can bid on.
In response to this and other similar reports the Office of Management and Budget is unveiling a nine-point action plan to combat bundling by federal agencies to better enable small businesses to compete for the $230 billion the government spends annually on contracts. Some of the steps include:
Implementing reporting requirements on bundling actions
Modifying SBA and the FAR to require contract bundling reviews of proposed acquisitions over agency specific dollar thresholds ($2-$7 million, depending on the agency) and requiring the agencies to identify alternative strategies to involve less bundling
Mitigate necessary contract bundling by increasing subcontracting opportunities for small businesses and encouraging the creation of small business teams to compete
Create a best practices plan to collect and disseminate examples of successful strategies that maximize prime and subcontract opportunities for small businesses.
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