sbalearning@sba.gov

“Exceeding Your Goals”

“Thinking Over Bundled and Consolidated

Contracts”

Janis Kaiser, Procurement Center Representative

SBA Office of Government Contracting, Area IV, Chicago

Procurement Center Representative (PCR) link:

https://www.sba.gov/content/pcr-directory

Janis Kaiser, PCR

SBA Office of Government Contracting, Area IV, Chicago

janis.kaiser@sba.gov

(312) 353-7442

Valerie Coleman, PCR

SBA Office of Government Contracting, Area V, Houston

valerie.j.coleman@nasa.gov or valerie.coleman@sba.gov

281-483-1549

Dwight A. Johnson, PCR

SBA Office of Government Contracting, Area IV, Omaha

sbalearning@sba.gov

(402) 221-7206

Reminders:

1. Use the correct NAICS codes for Women-Owned Small Business

set-asides by checking www.sba.gov/wosb.

2. SBA only approves 8(a) JV agreements at this time. Do not state

in your solicitation that a JV or teaming agreement must be

approved by SBA.

1. Size protests FAR Part 19.3

2. SBA staff FAR Part 19.4

3. Certificates of Competency FAR Part 19.6

4. Subcontracting plans FAR Part 19.7

SBA Area Directors, Office of Government Contracting

(https://www.sba.gov/content/pcr-area-directors

1. Answering questions begins during the final 10 minutes. Or

contact sbalearning@sba.gov

2. Technical problems? Contact the moderator with a note or call

AT&T Connect Support at 1-888-796-6118.

3. We state page numbers for those working of hard copies of the

program.

4. We cover the “SBA Quick Reference” as time allows.

5. Participation is limited to federal acquisition and related staff,

SBA, and Procurement Technical Assistance Center (PTAC) staff.

Your nearest PTAC: (http://www.aptac-us.org/)

Welcome to “SBA Virtual Learning 2016”

FY 2016 Topic Presenters SBA Area

1 October 7, 2015 8(a) Business

Development

Jackquline

Robinson-Burnette HDQTRS

2 November 4, 2015 Women-Owned Small

Business Ken Silvia III

3 December 2, 2015 SBA Surveillance

Reviews 2016 Valerie Coleman V

4 January 6, 2016 Consolidation/Bundling Jan Kaiser IV

5 February 3, 2016 SDVOSB Keith Waye I

6 March 2, 2016 Partial SB Set-Asides Jan Kaiser IV

7 April 6, 2016

Market Research:

Dynamic Small Bus

Search

Valerie Coleman V

8 May 4, 2016 HUBZones Mariana Pardo HDQTRS

9 June 1, 2016 SBA Size Standards David Gordon IV

10 July 13, 2016 Nonmanufacturer Rule Janice Nietes VI

11 August 3, 2016 SBA Subcontracting

Assistance (CMRS) Stephanie Lewis V

12 August 17, 2016 Special TBD: Limitations

on Subcontracting TBD HDQTRS

1102 FIRST WEDNESDAY VIRTUAL LEARNING SERIES 2016”

9:30 to 10:30 Central Time

Self-service: Fill in your name on the certificate slide and save.

Phoning in only? Send an email immediately to sbalearning@sba.gov to

verify your participation. If you listen in groups, send emails fo

participants in an excel document.

Post program email. This contains a time sensitive .wmv recording, a

transcript of the program, along with another copy of the program

PowerPoint.

Welcome and thank-you for your support of small business.

One Continuous Learning Point

sbalearning@sba.gov

“Exceeding Your Goals”

“Thinking Over Bundled and Consolidated

Contracts”

Janis Kaiser, Procurement Center Representative

SBA Office of Government Contracting, Area IV, Chicago

Definitions, FAR 2.101 – “Contract”

“Contract” means a mutually binding legal relationship obligating the seller

to furnish the supplies or services (including construction) and the buyer to

pay for them.

It includes all types of commitments that obligate the Government to an

expenditure of appropriated funds….

In addition to bilateral instruments, contracts include….job orders or task

letters issued under basic ordering agreements; letter contracts; orders, such

as purchase orders, under which the contract becomes effective by written

acceptance or performance; and bilateral contract modifications.

For discussion of various types of contracts, see Part 16.

13 CFR §125.1 Definitions of

“consolidation”

(c) Consolidation of contract requirements, consolidated contract, or

consolidated requirement means a solicitation for a single contract or a

Multiple Award Contract to:

(1) Satisfy two or more requirements of the Federal agency for goods or

services that have been provided to or performed for the Federal agency

under two or more separate contracts each of which was lower in cost than

the total cost of the contract for which the offers are solicited, the total cost

of which exceeds $2 million (including options); or

(2) Satisfy requirements of the Federal agency for construction projects to

be performed at two or more discrete sites.

Small business may still compete on a

consolidated contract

Contract Consolidation is:

Bundled contracts

Consolidated contracts

Bundled

contracts are

a subset of

consolidated

contracts:

All bundled

contracts are

consolidated

contracts.

Bundled and consolidated contracts

Definitions, FAR 2.101 – “Bundling”

(1) Consolidating two or more requirements for supplies or services, previously provided or performed under separate smaller contracts, into a solicitation for a single contract that is likely to be unsuitable for award to a small business concern due to-

(i) The diversity, size, or specialized nature of the elements of the performance specified;

(ii) The aggregate dollar value of the anticipated award;

(iii) The geographical dispersion of the contract performance sites; or

(iv) Any combination of the factors described in paragraphs (1)(i), (ii), and (iii) of this definition.

12

Definitions, FAR 2.101 – “Bundling”,

continued (2) “Separate smaller contract” as used in this definition, means a contract that has been performed by one or more small business concerns or that was suitable for award to one or more small business concerns.

(3) “Single contract” as used in this definition, includes-

(i) Multiple awards of indefinite-quantity contracts under a single solicitation for the same or similar supplies or services to two or more sources (see FAR 16.504(c)); and

(ii) An order placed against an indefinite quantity contract under a-

(A) Federal Supply Schedule contract; or

(B) Task-order contract or delivery-order contract awarded by another agency (i.e., Government wide acquisition contract or multi-agency contract).

(4) This definition does not apply to a contract that will be awarded and performed entirely outside of the United States.

13

Small business unlikely to be able to compete on a bundled contract

Contract Bundling is:

Structuring the Requirement

Acquisition planners, to the maximum extent

practicable, shall

(1) Structure contract requirements to facilitate

competition by and among small business concerns;

and

(2) Avoid unnecessary and unjustified bundling that

precludes small business participation as

contractors

FAR 7.103(u)

15

Market Research

If an agency contemplates awarding a bundled

contract, the agency should consult with the local

Small Business Administration (SBA) procurement

center representative (PCR). If a PCR is not

assigned, contact the SBA Office of Government

Contracting Area Office serving the area in which

the procuring office is located.

The PCR directory is at:

https://www.sba.gov/content/pcr-directory

FAR 10.001(c)(1)

16

Market Research (cont’d)

Conduct market research to determine

whether bundling is necessary and

justified. Market research may indicate

that bundling is necessary and justified if

an agency or the Government would

derive measurably substantial benefits

FAR 7.107(a) and 15 U.S.C. 644(e)(2)

17

Benefit Analysis

The contracting officer must justify bundling in

acquisition strategy documentation.

In assessing whether cost savings would be achieved

through bundling, the contracting officer must

consider the cost that has been charged or, where

data is available, could be charged by small

business concerns for the same or similar work.

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Benefit Analysis

Without power of delegation, the service acquisition

executive for the military departments, USD(AT&L)

for DoD, or the Deputy Secretary or equivalent for

the civilian agencies may determine that bundling is

necessary and justified when—

(1) The expected benefits do not meet the thresholds of

measurably substantial but are critical to the agency’s

mission success; AND

(2) The acquisition strategy provides for maximum

practicable participation by small business concerns.

FAR 7.107(c)

19

Benefit Analysis

The agency must quantify the identified benefits

and explain how their impact would be measurably

substantial.

Reduction of administrative or personnel costs alone

is not sufficient justification for bundling unless the

cost savings are expected to be at least 10 percent

of the estimated contract or order value (including

options) of the bundled requirements.

FAR 7.107(b) and (d)

20

Bundling and consolidation may provide

substantial benefits to the Government.

However, because of the potential impact on small

business participation, market research must be

conducted to determine whether bundling is

necessary and justified.

Market research may indicate that bundling is

necessary and justified if an agency or the

Government would derive measurably substantial

benefits.

Measurably Substantial Benefits

Measurably substantial benefits may include,

individually or in any combination or aggregate,

cost savings or price reduction,

quality improvements that will save time or improve or

enhance performance or efficiency,

reduction in acquisition cycle times,

better terms and conditions, and

any other benefits.

FAR 7.107(b)

22

FAR 7.107(b) and 13 CFR 125.2(d)

If value is greater than $94M (including options), then benefits must be at least 5% of estimated contract

If value is $94M or less (including options), cost savings must be at least 10% of estimated contract value

The agency may determine bundling (and

consolidation) to be necessary and justified if, as

compared to not bundled, it would derive measurably

substantial benefits equivalent to –

Measurably Substantial Benefits

(cont’d)

Substantial Bundling

The Benefit Analysis in the AQ Strategy is much

more detailed when it involves Substantial Bundling.

That is if the estimated contract or order value is—

(A) $8 million or more for the Department of

Defense;

(B) $6 million or more for the National Aeronautics

and Space Administration, the General Services

Administration, and the Department of Energy; and

(C) $2.5 million or more for all other agencies.

FAR 7.107(e)

24

Acquisition Strategy

The small business specialist shall notify the agency

Office of Small and Disadvantaged Business

Utilization if the strategy involves contract bundling

that is unnecessary, unjustified, or not identified as

bundled by the agency.

If the strategy involves substantial bundling, the

small business specialist shall assist in identifying

alternative strategies that would reduce or minimize

the scope of the bundling.

25

Acquisition Plan

The planner shall coordinate the acquisition plan or

strategy with the cognizant small business specialist

when the strategy contemplates an acquisition

meeting the dollar amounts for substantial bundling

unless the contract or order is entirely reserved or

set-aside for small business under Part 19.

It remains a consolidated contract.

Prior to Release of the Solicitation

AT least 30 days before release of the solicitation

or 30 days prior to placing an order without a

solicitation the KO --

(i) Must notify any affected incumbent small business

concerns of the Government’s intention to bundle the

requirement; and

(ii) Should notify any affected incumbent small

business concerns of how the concerns may contact

the appropriate Small Business Administration

representative. FAR 10.001(c)(2)

27

Prior to Release of the Solicitation

Provide a copy of the proposed acquisition package to the SBA

procurement center representative at least 30 days prior to the issuance of

the solicitation if –

(i) The proposed acquisition is for supplies or services currently being

provided by a small business and the proposed acquisition is of a quantity

or estimated dollar value, the magnitude of which makes it unlikely that

small businesses can compete for the prime contract;

(ii) The proposed acquisition is for construction and seeks to package or

consolidate discrete construction projects and the magnitude of this

consolidation makes it unlikely that small businesses can compete for the

prime contract….

FAR 19.202-1(e)

Prior to Release of the Solicitation

The proposed acquisition is for a bundled requirement.

The contracting officer shall provide

all information relative to the justification of contract

bundling, including the acquisition plan or strategy, and

if the acquisition involves substantial bundling, the

information identified in 7.107(e). When the acquisition

involves substantial bundling, the contracting officer

shall also provide the same information to the agency

Office of Small and Disadvantaged Business Utilization.

FAR 19.202-1(e)

29

Bundling Acquisition Documentation

The contracting officer also must provide a statement

to the SBA explaining why the --

(i) Proposed acquisition cannot be divided into

reasonably small lots to permit offers on quantities

less than the total requirement;

(ii) Delivery schedules cannot be established on a

realistic basis that will encourage small business

participation to the extent consistent with the actual

requirements of the Government;

FAR 19.202-1(e)

30

Bundling Acquisition Documentation

(iii) Proposed acquisition cannot be structured so as

to make it likely that small businesses can compete

for the prime contract;

(iv) Consolidated construction project cannot be

acquired as separate discrete projects; or

(v) Bundling is necessary and justified.

FAR 19.202-1(e)

31

SBA information required.

13 CFR 125.2 (b)(i)(E)

PCRs will review whether, for bundled and consolidated contracts that

are recompeted to see that:

•The amount of savings (5% or 10%) and benefits was achieved under

the prior bundling or consolidation of contract requirements,

•That such savings and benefits will continue to be realized if the

contract remains bundled or consolidated, or

•Such savings and benefits would be greater if the procurement

requirements were divided into separate solicitations suitable

for award to small business concerns.

•Provide the previous bundling/consolidation memoranda

Required Information for SBA Regarding

Recompetes of Consolidated or Bundled Contracts

SBA Review

SBA has 15 days after receipt of the Acquisition

Package to make a recommendation.

Rejection of SBA Recommendation

If the contracting officer rejects the SBA

representative’s recommendation, the contracting

officer shall document the basis for the rejection

and notify the SBA representative in accordance

with 19.505.

“SBA Form 70”

34

Consolidated and Bundled Contracts and

Source Selection

For BUNDLING, factors are to be included measuring–

Small business participation

Past performance in subcontracting

FAR Case 2014–015 adds this requirement for

consolidations and is in line for publishing in the FAR.

Otherwise, refer to 13 CFR 125.2 and 125.3.

Dated reference:

http://www.acq.osd.mil/osbp/docs/benefits_analysis_guide

book.pdf

Proposed Changes

June 3, 2015 Federal Register

proposed rule on “Consolidation and Bundling of

Contract Requirements” (Bundling Rule)

Revises the definition of ‘‘bundling’’ and adds a new

definition for ‘‘consolidation, consolidation of contract

requirements, consolidated contract, or consolidated

requirement’’

Addresses the consolidation of construction

requirements

36

Proposed Changes (cont’d)

Adds a definition for ‘‘small business teaming

arrangement’’

Clarifies that agencies are to ensure that

unnecessary and unjustified consolidation is

avoided

Clarifies that small business is to be a discipline that is

represented in the acquisition planning team

Clarifies that if a requirement is considered both

consolidated and bundled, the agency must follow the

guidance regarding bundling

37

38

Dynamic Small Business Search is alive and

well. Link:

http://dsbs.sba.gov/dsbs/search/dsp_dsbs.cfm

Dynamic Small Business Search

SBA size regulations 13 CFR Part 121

HUBZone regulations 13 CFR 126.616

SBA Certificate of Competency 13 CFR 125.5

Service-disabled veteran 13 CFR 125.15(b)

8(a) and SDB regulations 13 CFR 124.513

Small disadvantaged business 13 CFR 124.1002(f)

WOSB Program 13 CFR 127

SBA Prime Contracting 13 CFR 125.2

SBA Subcontracting 13 CFR 125.3

Summary of CFR regulations

A. SBA Government Contracting Area Offices

B. SBA Procurement Center Representatives (PCRs)

C. SBA Commercial Market Representatives (CMRs)

D. SBA District Offices

E. SBA Headquarters

41

FIVE TYPES OF SBA CONTACTS & OFFICES

Six SBA Government Contracting Areas at https://www.sba.gov/content/pcr-directory

1. Size protests (with recertification) FAR 19.302

13 CFR 121.1001

13 CFR 121.1010

2. Locating nearest SBA staffer FAR 19.4

3. Certificate of Competency FAR 19.6

13 CFR 125.5

4. COC Limitations on Subcontracting Compliance

FAR 19.601

13 CFR 125.6(f)

5. Receiving copies subcontracting plans

FAR 19.705-6

A. SBA Quick Reference - SBA Area Offices

FAR 19.402 Small Business Administration procurement center

representatives. (a)(1) The SBA may assign one or more

procurement center representatives to any contracting activity or

contract administration office to carry out SBA policies and

programs…

(2) If a SBA procurement center representative is not assigned to the

procuring activity or contract administration office, contact the SBA

Office of Government Contracting Area Office…..

(b) Upon their request and subject to applicable acquisition and

security regulations, contracting officers shall give SBA procurement

center representatives….access to all reasonably obtainable

contract….

B. SBA Quick Reference SBA Procurement Center Representatives (PCRs)

1/21/2016 1:32 PM

1. SBA PCR coordination records FAR 19..501(b)

13 CFR 125.2

2. Small business set-aside appeals FAR 19.505

13 CFR 125.2(b)(7)

3. HUBZone set-aside appeals FAR 19.1305

FAR 19.1306

13 CFR 126.61

4. SDVOSB set-aside appeal FAR 19.1405

FAR 19.1406

13 CFR 125.22

5. Reporting bundling to SBA (MATOCs) FAR 19.202-1(e)(1)

13 CFR 125.2

6. SBA subcontracting plan reviews-copies FAR 19.705-5(3) 13 CFR 125.2(b)(6)(iii) FAR 19.705-6(c) 13 CFR 125.2(b)(6)(iii)(C) 7. SBA subcontracting program review FAR 19.707(4) 13 CFR 125.2(b)(6)(iii)(C) 8. Small business TFD FAR 49.402-3 (e)(4)) (Termination for default) 9. Surveillance review of agency contracting

B. SBA Quick Reference SBA PCRs, cont.

45

Agency Form Title

1 Commerce CD 570 Small business set-aside review

2 Defense 2579 Small business coordination record

3 Energy 4220.2 Small Business Review form

4 GSA 2689 Small Business Analysis Record

5 HHS 653 Small business review form

6 Homeland Security 700-22 Small business review form

7 Interior 1886 Acquisition screening and review form

8 Labor

DL1-

2004

Small Business Procurement

Determination.

9 NASA NF 1787 Small business review sheet

10 State DS-1910 Small Business Clearance Form

11 Transportation 4250 Small Business Program Review Form

12 USDA AD-1205

Small Business Program – Procurement

Review

13 VA 2268

Procurement Request Review For Small

Business…

Small business coordination forms sent to SBA PCRs

46

19.705-6 Postaward responsibilities of the contracting officer. …:

(a) Notifying the SBA of the award by sending a copy of the award document to

the Area Director, Office of Government Contracting, in the SBA area

office where the contract will be performed.

(c) Giving to the SBA procurement center representative….a copy of—

(1) Any subcontracting plan submitted in response to a sealed bid

solicitation; and

(2) The final negotiated subcontracting plan that was incorporated into a

negotiated contract or contract modification.

(d) Notifying the SBA procurement center representative…. of the opportunity to

review subcontracting plans in connection with contract modifications.

Document that you have provided SBA Area Directors with copies of

subcontracting plans

1. Prime contractor portfolio management 13 CFR 125.3

2. Reviews of subcontracting plan holders 13 CFR 125.3

3. Matchmaking 13 CFR 125.3

4. SBA SUB-Net link: http://www.sba.gov/content/sub-net

5. SBA Subcontracting Opportunities Directory link:

http://www.sba.gov/subcontracting-directory

6. “SBLO Handbook” link: http://www.sba.gov/content/small-

business-liaison-officer-handbook

C. SBA Quick Reference - SBA Commercial Market Representatives (CMRs) link:

(https://www.sba.gov/content/cmr-directory)

Link to district offices: http://www.sba.gov/about-offices-list/3

D. SBA Quick Reference – SBA Regional and District Offices

To locate SBA 8(a) servicing office, check Dynamic

Small Business Search at the link:

http://dsbs.sba.gov/dsbs/search/dsp_dsbs.cfm and then

local resources at the link http://www.sba.gov/tools/local-

assistance/districtoffices

D. SBA Quick Reference - SBA District Offices, cont.

1. HUBZone status protests FAR 19.306

13 CFR 126.801

2. NAICS code appeal FAR 19.30 3

13 CFR 121.1103

3. Non-manufacturer rule waivers FAR 19.102(f)(1)-(7)

13 CFR 121.1204

4. SDVOSB status protest FAR 19.307

13 CFR 125.23

5. WOSB Program status protest FAR 19.308/13 CFR 1275.600

E. SBA Quick Reference - SBA Headquarters

FAR 19.102 (f ): No class waiver to NMR? Check out an individual waiver*

B. A WAIVER FOR A SET-ASIDE IS NOT NEEDED WHEN:

1. ONE SMALL BUSINESS MANUFACTURER:

* SMALL BUSINESS SET-ASIDE

2. SMALL BUSINESS MANUFACTURER, BRAND SPECIFIC OF ANY

DOLLAR SIZE WITH FAR 6 JUSTIFICATION:

* SMALL BUSINESS SET-ASIDE

3. LARGE BUSINESS, BRAND SPECIFIC (OR BRAND EQUIVALENT)

REQUIREMENT $25,000 OR LESS WITH FAR 6:

* SMALL BUSINESS SET-ASIDE

C. GSA SCHEDULE: USE THE CLOSEST CODE LISTED ON THE

SCHEDULE. THEN SAME AS ABOVE IF NO CLASS WAIVER.

D. EXCEPTION TO “NMR” IF PROCUREMENT $25,000 OR LESS.

(FAR 19.102 (F)(7)(B))

A. If you find no class waivers, an SBA individual waiver to the Nonmanufacturer Rule (NMR) may help you to achieve small business goals if*:

53

NMR Program Office

The preferred and most expeditious method

for asking questions and submitting waiver

requests is by e-mail to

nmrwaivers@sba.gov

54