SBA Final Rule to Address Contract Bundling

November 1, 2011

The U.S. Small Business Administration (SBA) recently published a final rule implementing various regulatory changes made by the Small Business Jobs Act of 2010. The rule is effective on Nov. 28, 2011, unless the agency receives “significant adverse comment” by Nov. 14, in which case it will publish a withdrawal of the affected sections.

One provision of particular note in the final rule pertains to small-business contracting. It requires the head of a Federal agency to publish on the agency website “a list and rationale for any bundled contract for which the Federal agency solicited bids or that was awarded by the Federal agency.”

Agencies are expected to demonstrate that the contract bundling will save the agency 10 percent or more of the total cost of the contract. This information must be published not later than 30 days after the date on which the agency head submits data certifications to the Administrator for Federal Procurement Policy.

By holding agencies accountable to the public, the rule aims to decrease the prevalence of contract bundling.

Comments may be submitted by one of the following methods: (1) Federal eRulemaking Portal:http://www.regulations.gov; following the instructions for submitting comments; or (2) Mail/Hand Delivery/Courier: John Russell, Office of  General Counsel, 409 Third Street, SW., Mail Code 2221, Washington, DC 20416.

Comments should be identified by RIN 3245-AG15, and must be submitted by Nov. 14.