7.107
Additional requirements for acquisitions involving consolidation, bundling, or substantial bundling
FAR 7.107 requires agencies to rigorously justify, document, and notify stakeholders when consolidating, bundling, or substantially bundling contract requirements, with a focus on protecting small business opportunities.
Overview
FAR 7.107 establishes additional requirements for federal acquisitions that involve consolidation, bundling, or substantial bundling of contract requirements. Its purpose is to ensure that agencies carefully justify and document decisions to combine multiple requirements into a single contract, particularly when such actions could impact small business participation. The regulation outlines specific definitions, analysis, notification, and documentation obligations for contracting officers and agencies when planning acquisitions that may consolidate or bundle requirements.
Key Rules
- Consolidation
- Agencies must justify and document any acquisition strategy that consolidates two or more requirements previously provided under separate contracts, especially if it may reduce small business opportunities.
- Bundling
- Bundling, a form of consolidation that is likely to be unsuitable for small businesses, requires additional analysis and justification, including a determination that the benefits justify the bundling.
- Substantial Bundling
- For acquisitions meeting substantial bundling thresholds (typically $8 million or more, or lower for certain agencies), agencies must provide even more detailed analysis and mitigation strategies to maximize small business participation.
- Notifications
- Agencies must notify the Small Business Administration (SBA) and affected incumbent small businesses of bundled or substantially bundled requirements.
- Solicitation Provision
- Solicitations involving consolidation or bundling must include specific FAR provisions to inform offerors and ensure transparency.
Responsibilities
- Contracting Officers: Must conduct and document required analyses, prepare justifications, notify SBA and incumbents, and include required solicitation provisions.
- Contractors: Should be aware of how consolidation or bundling may affect their opportunities and rights to notification.
- Agencies: Must oversee compliance, ensure proper documentation, and promote small business participation.
Practical Implications
- This section exists to prevent unnecessary consolidation or bundling that could harm small business participation in federal contracting.
- It impacts acquisition planning, requiring more rigorous analysis and documentation for larger or more complex procurements.
- Common pitfalls include inadequate justification, failure to notify stakeholders, or missing required solicitation language.