4.5.  BUNDLING and/or CONSOLIDATION?

4.5.1.  Acquisition Planning will lay the groundwork for a successful acquisition. A key consideration early on in the process is bundling or consolidation.

4.5.2.  When developing the acquisition strategy consider that Small Business performs the majority of construction and the award of a MACC could significantly affect small businesses.

4.5.3.  During your acquisition planning, review your requirement and determine if bundling or consolidation will occur.

4.5.4.  Reference OSD (AT&L) Bundling Guidebook.

4.5.5.  IAW FAR 2.101, Bundling means:

4.5.5.1.  Consolidating two or more requirements for supplies or services, previously provided or performed under separate smaller contracts, into a solicitation for a single contract that is likely to be unsuitable for award to a small business concern due to -

4.5.5.1.1.  The diversity, size, or specialized nature of the elements of the performance specified;

4.5.5.1.2.  The aggregate dollar value of the anticipated award;

4.5.5.1.3.  The geographical dispersion of the contract performance sites; or

4.5.5.1.4.  Any combination of the factors described in paragraphs (1)(i), (ii), and (iii) of this definition.

4.5.5.2.  In addition consider "consolidation" during the process.

4.5.5.3.  "Consolidation of contract requirements" means the use of a solicitation to obtain offers for a single contract or a multiple award contract. The purpose of the consolidation is to satisfy two or more requirements of a department, agency, or activity for supplies or services that previously have been provided to, or performed for, that department, agency, or activity under two or more separate contracts lower in cost than the total cost of the contract for which the offerors are solicited. Note: Consolidation is not the same as bundling. It is applicable irregardless of business size of previous contractor. Consolidation and Bundling requirements could both apply to an acquisition

4.5.5.4.  IAW DFARS 207.170-3, Consolidation of Contract Requirements Policy and Procedures, agencies shall not consolidate requirements with a total value exceeding $5,000,000 unless the acquisition strategy includes: results of market research; identification of any alternative contracting approaches that would involve a lesser degree of consolidation; and a determination by the Senior Procurement Executive* (SPE) that the consolidation is necessary and justified.

4.5.5.5.  Approval authorities are in accordance with AFFARS 5301.601.

4.5.5.6.  Market research may indicate that consolidation is necessary and justified if the benefits of consolidation exceed the benefits of the alternative contracting approaches. Regardless of whether quantifiable in dollars, benefits include costs and

4.5.5.6.1.  Quality;

4.5.5.6.2.  Acquisition Cycle;

4.5.5.6.3.  Terms and conditions;

4.5.5.6.4.  and any other benefit.

4.5.5.7.  Administrative savings alone do not constitute a sufficient justification unless the total amount of savings are expected to be substantial in relation to the total cost of the procurement

ENSURE YOU ENGAGE YOUR LOCAL SMALL BUSINESS ADMINISTRATION EARLY IN THIS PROCESS AND THAT THEY PARTICIPATE THROUGHOUT THE MACC PROCESS.