Ill STAT. 2618 PUBLIC LAW 105-135—DEC. 2, 1997 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.— I f 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
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