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What is contract bundling, and what can a small firm do when its work gets rolled into a big IDIQ?

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  • Contract bundling happens when an agency combines two or more requirements that were previously provided under separate smaller contracts into a single contract that is unlikely to be suitable for award to a small business.
  • The Small Business Act requires agencies to avoid unnecessary contract bundling, and the SBA reviews agency acquisition strategies for bundled requirements that exceed certain
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My firm has held a groundskeeping contract at a federal facility for the last seven years. It was a standalone, small business set-aside. We just got the presolicitation notice for the recompete, and the work is now part of a regional facilities IDIQ. The scope includes everything from HVAC to pest control across five states. There is no way my firm can cover that alone. This feels like "contract bundling," but I do not know what that means for a small business. What can the SBA do about this, if anything? Is forming a joint venture with a larger firm the only way we can still compete for this work?

asked Marcus T. Verified vendorOwner, janitorial and facilities firm · Columbus, OH · 390 rep

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Contract bundling happens when an agency combines two or more requirements that were previously provided under separate smaller contracts into a single contract that is unlikely to be suitable for award to a small business. The Small Business Act requires agencies to avoid unnecessary contract bundling, and the SBA reviews agency acquisition strategies for bundled requirements that exceed certain dollar values, which vary by agency and acquisition type. You can contact your local APEX Accelerator for guidance on how to formally challenge the bundling and explore options like teaming or joint ventures to pursue parts of the larger IDIQ. Forming a joint venture with a larger firm or teaming with other small businesses to cover the scope of the IDIQ are common strategies to compete for these larger contracts.

answered Luis A. Verified vendorSDVOSB founder, court reporting and legal support · San Antonio, TX · 248 rep
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Contract bundling is when an agency combines two or more contract requirements into a single solicitation that a small business cannot reasonably perform, and it specifically refers to actions above a certain dollar value that require an agency to perform a bundling analysis. Luis is right that agencies must avoid unnecessary bundling, but there are specific thresholds for when the SBA reviews these actions. The SBA defines "substantial bundling" as any solicitation for a bundled requirement that is above the simplified acquisition threshold and above specific dollar values depending on the agency, which triggers additional review. You can reach out to the Small Business Administration's Office of Government Contracting to formally challenge the bundling determination, as they have specific procedures for reviewing bundled requirements.

answered Nadia F. Verified vendorWOSB owner, management consulting · Minneapolis, MN · 472 rep

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Sign up to answerCite the FAR clause or procurement code where you can.