PRIA, Government Policy, Made Personal

Summary

Agency leaders must make sure combining two or more contract needs does not shut out small businesses. If an agency wants to bundle requirements worth more than $2,000,000 into one (or multi-award) contract, the senior procurement executive or Chief Acquisition Officer must first do market research, look for less-bundling options, write a justification that the bundling is necessary, check how it would hurt small businesses, and plan steps to include them. They may approve the bundle only if its benefits clearly beat the alternatives. Saving only on paperwork or staff costs does not count unless those savings are large compared to the total contract cost. Within 7 days of deciding the bundle is necessary, the official must post a public notice. A solicitation cannot appear until at least 7 days after that notice, and the solicitation must include the written justification and the information above. Chief Acquisition Officer — the agency employee named as its top acquisition official. Senior procurement executive — the official the agency names for senior procurement duties. Consolidation of contract requirements — combining two or more agency needs into one contract (or multi-award contract), including work at separate sites.

Title 15, §657q

Commerce and Trade, Source: USLM XML via OLRC

(a)Definitions

In this section

(1)

(2)the term “consolidation of contract requirements”, with respect to contract requirements of a Federal agency, means a use of a solicitation to obtain offers for a single contract or a multiple award contract—

(A)to satisfy 2 or more requirements of the Federal agency for goods or services that have been provided to or performed for the Federal agency under 2 or more separate contracts lower in cost than the total cost of the contract for which the offers are solicited; or

(B)to satisfy requirements of the Federal agency for construction projects to be performed at 2 or more discrete sites; and

(3)the term “senior procurement executive” means an official designated under section 1702(c) of title 41 as the senior procurement executive for a Federal agency.

(b)Policy

The head of each Federal agency shall ensure that the decisions made by the Federal agency regarding consolidation of contract requirements of the Federal agency are made with a view to providing small business concerns with appropriate opportunities to participate as prime contractors and subcontractors in the procurements of the Federal agency.

(c)Limitation on use of acquisition strategies involving consolidation

(1)In general

The head of a Federal agency may not carry out an acquisition strategy that includes a consolidation of contract requirements of the Federal agency with a total value of more than $2,000,000, unless the senior procurement executive or Chief Acquisition Officer for the Federal agency, before carrying out the acquisition strategy—

(A)conducts market research;

(B)identifies any alternative contracting approaches that would involve a lesser degree of consolidation of contract requirements;

(C)makes a written determination that the consolidation of contract requirements is necessary and justified;

(D)identifies any negative impact by the acquisition strategy on contracting with small business concerns; and

(E)ensures that steps will be taken to include small business concerns in the acquisition strategy.

(2)Determination that consolidation is necessary and justified

(A)In general

A senior procurement executive or Chief Acquisition Officer may determine that an acquisition strategy involving a consolidation of contract requirements is necessary and justified for the purposes of paragraph (1)(C) if the benefits of the acquisition strategy substantially exceed the benefits of each of the possible alternative contracting approaches identified under paragraph (1)(B).

(B)Savings in administrative or personnel costs

For purposes of subparagraph (A), savings in administrative or personnel costs alone do not constitute a sufficient justification for a consolidation of contract requirements in a procurement unless the expected total amount of the cost savings, as determined by the senior procurement executive or Chief Acquisition Officer, is expected to be substantial in relation to the total cost of the procurement.

(C)Notice

Not later than 7 days after making a determination that an acquisition strategy involving a consolidation of contract requirements is necessary and justified under subparagraph (A), the senior procurement executive or Chief Acquisition Officer shall publish a notice on a public website that such determination has been made. Any solicitation for a procurement related to the acquisition strategy may not be published earlier than 7 days after such notice is published. Along with the publication of the solicitation, the senior procurement executive or Chief Acquisition Officer shall publish a justification for the determination, which shall include the information in subparagraphs (A) through (E) of paragraph (1).

(3)Benefits to be considered

The benefits considered for the purposes of paragraphs (1) and (2) may include cost and, regardless of whether quantifiable in dollar amounts—

(A)quality;

(B)acquisition cycle;

(C)terms and conditions; and

(D)any other benefit.

Notes & Related Subsidiaries

Editorial Notes

Prior Provisions

A prior section 2[44] of Pub. L. 85–536 was renumbered section 2[49] and is set out as a note under section 631 of this title.

Amendments

2015—Subsec. (c)(1). Pub. L. 114–92, § 863(c), substituted “The head” for “Subject to paragraph (4), the head” in introductory provisions. Subsec. (c)(2)(C). Pub. L. 114–92, § 863(b), added subpar. (C). 2014—Subsec. (a)(1). Pub. L. 113–291, § 822(b)(1), inserted “appointed or” before “designated” and substituted “section 1702(a) of title 41” for “section 16(a) of the Office of Federal Procurement Policy Act (41 U.S.C. 414(a))”. Subsec. (a)(3). Pub. L. 113–291, § 822(b)(2), substituted “section 1702(c) of title 41” for “section 16(c) of the Office of Federal Procurement Policy Act (41 U.S.C. 414(c))”. 2013—Subsec. (a)(2). Pub. L. 112–239, § 1671(a), substituted “or a multiple award contract—” and subpars. (A) and (B) for “or a multiple award contract to satisfy 2 or more requirements of the Federal agency for goods or services that have been provided to or performed for the Federal agency under 2 or more separate contracts lower in cost than the total cost of the contract for which the offers are solicited; and”. Subsec. (c)(1)(E). Pub. L. 112–239, § 1671(b), substituted “ensures” for “certifies to the head of the Federal agency”. Subsec. (c)(4). Pub. L. 112–239, § 1671(c)(2), struck out par. (4). Prior to amendment, text read as follows: “(A) In general.—The Department of Defense and each military department shall comply with this section until after the date described in subparagraph (C). “(B) Rule.—After the date described in subparagraph (C), contracting by the Department of Defense or a military department shall be conducted in accordance with section 2382 of title 10. “(C) Date.—The date described in this subparagraph is the date on which the Administrator determines the Department of Defense or a military department is in compliance with the Government-wide contracting goals under section 644 of this title.”

§657q Consolidation of Contract Requirements