Contract Bundling and Your Little Company


Among all the issues little company owners have with government contracting, contract bundling rarely ever comes up in conversation. Element of the problem is that many enterprise owners are only exposed to the unfavorable stereotypes and never actually know about a lot of of the genuine obstacles their firm faces with effectively getting contracts with Uncle Sam. Contract bundling can potentially be and actual impediment to firms attempting to compete in the government contracting arena.

Now that we’ve identified a possible bump in the road, let’s go into a tiny detail to guarantee that modest company owners are conscious of and fully recognize the dilemma. According to the Tiny Company Reauthorization Act of 1997 (SBA Act), contract bundling is “consolidating two or much more procurement requirements for goods or services previously offered or performed below separate, smaller contracts into a solicitation of provides for a single contract that is unlikely to be suitable for award to a small company concern.” What this truly signifies is that contract bundling takes place when two or a lot more contracts intended for small organizations are combined, creating it tough for a modest company to full.

There are circumstances that allow Uncle Sam to combine contracts if award to a tiny organization is deemed unsuitable. If the conditions of the contract need operate spread out more than a geographical region also big for one particular small company to deal with, the total dollar worth of every single contract is not suited to a tiny firm, the diversity, specialized nature, or size of the activity at hand, or any mixture of these, contracts might be bundled without situation.

However, the SBA Act demands that the government try to avoid these four issues in order to give modest organizations equal opportunities to participate in the bidding approach. In addition, the act demands the responsible contracting specialist to do market research with an aim to justify whether or not the contract wants to be bundled. The government agency can then validate combining contracts when there are “measurably substantial positive aspects,” which incorporate cutting charges, better quality, less time to fulfill the contract, or better contract terms and situations.

So what can your company do to stop contract bundling? However, it is not an effortless activity. It involves convincing the agency and those involved in the approach that your small organization, contrary to their research, can and will perform one particular or far more of the contracts. If you believe that it is happening, contact a Modest Business Administration Procurement Center Representative (PCR). In every single federal agency with main contract applications there will be 1 with whom you can speak. There is also a bundling report, which you can fill out and submit to the Small Organization Administration.

Occasionally bundling can not be stopped. The decision to bundle contracts comes from many hours of meetings and research that leads agency officials reluctant to modify their mind. If that happens, attempt befriending the bigger organization that wins the bundled contract. Just since they are a large business does not mean they will not employ companies as sub-contractors. In addition, sub-contracting is a great way to get your business’s foot in the government’s door with no the hassle of performing it all oneself.