7.107-5 Notifications
Source: FAR 7.107-5 on acquisition.gov
FAR 7.107-5 requires agencies to provide timely, transparent notifications to small businesses, the public, and the SBA when bundling or consolidating contract requirements, ensuring accountability and opportunities for small business participation.
Overview
FAR 7.107-5 outlines the notification requirements for agencies and contracting officers when planning to bundle or consolidate contract requirements, particularly those affecting small businesses. The regulation mandates timely and transparent communication to current small business contractors, the public, and the Small Business Administration (SBA) regarding the agency's intent and rationale for bundling or consolidating contracts. It also establishes procedures for publicizing these actions and requires annual reporting on bundled requirements.
Key Rules
- Notification to Small Business Contractors
- Contracting officers must notify current small business contractors at least 30 days before issuing a solicitation for a bundled requirement, including SBA contact information, and document this in the contract file.
- Public Notification of Bundling/Consolidation
- Agencies are encouraged or required to publish notices and rationales for bundled or consolidated requirements on the Governmentwide Point of Entry (GPE), with specific timing and content requirements.
- Notification to SBA for Follow-on Requirements
- For follow-on bundled or consolidated contracts, contracting officers must notify the SBA PCR with detailed information about savings, benefits, and changes at least 30 days before solicitation.
- Annual and Policy Notifications
- Agencies must annually publish a list and rationale for bundled requirements on their website and post the governmentwide bundling policy online.
Responsibilities
- Contracting Officers: Must provide timely notifications to small business contractors and the SBA, document actions, and ensure public notices are published as required.
- Contractors: Should monitor notifications and public postings to stay informed about upcoming bundled or consolidated solicitations.
- Agencies: Must ensure compliance with notification, publication, and reporting requirements, including annual and policy postings.
Practical Implications
- This section ensures transparency and gives small businesses advance notice and opportunity to respond to bundled or consolidated procurements. Failure to comply can delay solicitations or result in challenges. Agencies must coordinate closely with the SBA and maintain thorough documentation to avoid compliance issues.
(a) Notifications to current small business contractors of agency's intent to bundle.
(1) The contracting officer shall notify each small business performing a contract that it intends to bundle the requirement at least 30 days prior to the issuance of the solicitation for the bundled requirement.
(2) The notification shall provide the name, phone number and address of the applicable SBA procurement center representative (PCR), or if an SBA PCR is not assigned to the procuring activity, the SBA Office of Government Contracting Area Office serving the area in which the buying activity is located.
(3) This notification shall be documented in the contract file.
(b) Notification to public of rationale for bundled requirement. The agency is encouraged to provide notification of the rationale for any bundled requirement to the GPE, before issuance of the solicitation (see 5.201).
(c) Notification to the public of consolidation of contract requirements. The SPE or CAO shall publish in the GPE—
(1)A notice that the agency has determined a consolidation of contract requirements is necessary and justified (see 7.107-2) no later than 7 days after making the determination; the solicitation may not be publicized prior to 7 days after publication of the notice of the agency determination; and
(2)The determination that consolidation is necessary and justified with the publication of the solicitation. See 7.107-2 for the required content of the determination.
(d) Notification to the public of substantial bundling of contract requirements. The head of the agency shall publish in the GPE—
(1)A notice that the agency has determined that a procurement involves substantial bundling (see 7.107-4) no later than 7 days after such determination has been made; the solicitation may not be publicized prior to 7 days after the publication of the notice of the determination; and
(2)The rationale for substantial bundling with the publication of the solicitation. The rationale is the information required for inclusion in the acquisition strategy at 7.107-4(b).
(e) Notification to SBA of follow-on bundled or consolidated requirements. For each follow-on bundled or consolidated requirement, the contracting officer shall obtain the following from the requiring activity and notify the SBA PCR no later than 30 days prior to issuance of the solicitation:
(1) The amount of savings and benefits achieved under the prior consolidation or bundling.
(2) Whether such savings and benefits will continue to be realized if the contract remains consolidated or bundled.
(3) Whether such savings and benefits would be greater if the procurement requirements were divided into separate solicitations suitable for award to small business concerns.
(4) List of requirements that have been added or deleted for the follow-on.
(f) Annual notification to the public of the rationale for bundled requirements. The agency shall publish on its website a list and rationale for any bundled requirement for which the agency solicited offers or issued an award. The notification shall be made annually within 30 days of the agency's data certification regarding the validity and verification of data entered in the Federal Procurement Data System to the Office of Federal Procurement Policy (see 4.604).
(g) Notification to public of bundling policy. In accordance with http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section644(q)(2)(A)(ii)&num=0&edition=prelim" target="_blank">15 U.S.C. 644(q)(2)(A)(ii), agencies shall publish the Governmentwide policy regarding contract bundling, including regarding the solicitation of teaming and joint ventures, on their agency website.