ASSESSING PROPOSED CONTRACT BUNDLING.

SEC. 413. ASSESSING PROPOSED CONTRACT BUNDLING. (a) In General.— Section 15 of the Small Business Act (15 U.S.C. 644) is amended by inserting after subsection (d) the following: “(e) Procurement Strategies; Contract Bundling.— “(1) In general.— To the maximum extent practicable, procurement strategies used by the various agencies having contracting authority shall facilitate the maximum participation of small business concerns as prime contractors, subcontractors, and suppliers. “(2) Market research.— “(A) In general.— Before proceeding with an acquisition strategy that could lead to a contract containing consolidated procurement requirements, the head of an agency shall conduct market research to determine whether consolidation of the requirements is necessary and justified. “(B) Factors.— For purposes of subparagraph (A), consolidation of the requirements may be determined as being necessary and justified if, as compared to the benefits that would be derived from contracting to meet those requirements if not consolidated, the Federal Government would derive from the consolidation measurably substantial benefits, including any combination of benefits that, in combination, are measurably substantial. Benefits described in the preceding sentence may include the following: “(i) Cost savings. “(ii) Quality improvements. “(iii) Reduction in acquisition cycle times. “(iv) Better terms and conditions. “(v) Any other benefits. “(C) Reduction of costs not determinative.— The reduction of administrative or personnel costs alone shall not be a justification for bundling of contract requirements unless the cost savings are expected to be substantial in relation to the dollar value of the procurement requirements to be consolidated. “(3) Strategy specifications.— If the head of a contracting agency determines that a proposed procurement strategy for a procurement involves a substantial bundling of contract requirements, the proposed procurement strategy shall— “(A) identify specifically the benefits anticipated to be derived from the bundling of contract requirements; “(B) set forth an assessment of the specific impediments to participation by small business concerns as prime contractors that result from the bundling of contract requirements and specify actions designed to maximize small business participation as subcontractors (including suppliers) at various tiers under the contract or contracts that are awarded to meet the requirements; and “(C) include a specific determination that the anticipated benefits of the proposed bundled contract justify its use. “(4) Contract teaming.— In the case of a solicitation of offers for a bundled contract that is issued by the head of an agency, a small-business concern may submit an offer that provides for use of a particular team of subcontractors for 111 STAT. 2619the performance of the contract. The head of the agency shall evaluate the offer in the same manner as other offers, with due consideration to the capabilities of all of the proposed subcontractors. If a small business concern teams under this paragraph, it shall not affect its status as a small business concern for any other purpose”. (b) Administration Review.— Section 15(a) of the Small Business Act (15 U.S.C. 644(a)) is amended in the third sentence— (1) by inserting “or the solicitation involves an unnecessary or unjustified bundling of contract requirements, as determined by the Administration,” after “discrete construction projects,”; (2) by striking “or (4)” and inserting “(4)”; and (3) by inserting before the period at the end of the sentence the following: “, or (5) why the agency has determined that the bundled contract (as defined in section 3(o)) is necessary and justified”. (c) Responsibilities of Agency Small Business Advocates.— Section 15(k) of the Small Business Act (15 U.S.C. 644(k)) is amended— (1) by redesignating paragraphs (5) through (9) as paragraphs (6) through (10), respectively; and (2) by inserting after paragraph (4) the following: “(5) identify proposed solicitations that involve significant bundling of contract requirements, and work with the agency acquisition officials and the Administration to revise the procurement strategies for such proposed solicitations where appropriate to increase the probability of participation by small businesses as prime contractors, or to facilitate small business participation as subcontractors and suppliers, if a solicitation for a bundled contract is to be issued;”.