I 

108TH CONGRESS 

1ST SESSION H. R. 2607

To modify the contract consolidation requirements in the Small Business 

Act, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 26, 2003

Mr. CASE (for himself, Mr. SANDERS, Ms. BORDALLO, and Mr. FROST) introduced the following bill; which was referred to the Committee on Small 

Business 

A BILL

To modify the contract consolidation requirements in the 

Small Business Act, and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Small Business Fed5 eral Contractor Safeguard Act’’. 

6 SEC. 2. CONTRACT CONSOLIDATION. 

7 (a) DEFINITIONS.—Section 3(o) of the Small Busi8 ness Act (15 U.S.C. 632(o)) is amended to read as follows: 

9 ‘‘(o) DEFINITIONS.—In this Act the following defini10 tions shall apply: 
2

•HR 2607 IH 

1 ‘‘(1) CONSOLIDATED CONTRACT; CONSOLIDA2 TION.—The term ‘consolidated contract’ or ‘consoli3 dation’ means a multiple award contract or a con4 tract for goods or services with a Federal agency 

5 that—

6 ‘‘(A) combines discrete procurement re7 quirements from not less than 2 existing con8 tracts; 

9 ‘‘(B) adds new, discrete procurement re10 quirements to an existing contract; or 

11 ‘‘(C) includes 2 or more discrete procure12 ment requirements. 

13 ‘‘(2) MULTIPLE AWARD CONTRACT.—The term 

14 ‘multiple award contract’ means—

15 ‘‘(A) a contract that is entered into by the 

16 Administrator of General Services under the 

17 multiple award schedule program referred to in 

18 section 2302(2)(C) of title 10, United States 

19 Code; 

20 ‘‘(B) a multiple award task order contract 

21 or delivery order contract that is entered into 

22 under the authority of sections 2304a through 

23 2304d of title 10, United States Code, or sec24 tions 303H through 303K of the Federal Prop-
3

•HR 2607 IH 

1 erty and Administrative Services Act of 1949 

2 (41 U.S.C. 253h through 253k); and 

3 ‘‘(C) any other indefinite delivery or indefi4 nite quantity contract that is entered into by 

5 the head of a Federal agency with 2 or more 

6 sources pursuant to the same solicitation.’’. 

7 (b) PROCUREMENT STRATEGIES.—Section 15(e) of 

8 the Small Business Act (15 U.S.C. 644(e)) is amended 

9 to read as follows: 

10 ‘‘(e) PROCUREMENT STRATEGIES; CONTRACT CON11 SOLIDATION.—

12 ‘‘(1) IN GENERAL.—To the maximum extent 

13 practicable, procurement strategies used by the var14 ious agencies having contracting authority shall fa15 cilitate the maximum participation of small business 

16 concerns as—

17 ‘‘(A) prime contractors; 

18 ‘‘(B) subcontractors; and 

19 ‘‘(C) suppliers. 

20 ‘‘(2) PROCUREMENT STRATEGY REQUIREMENTS

21 WHEN THE VALUE OF A CONSOLIDATED CONTRACT

22 IS GREATER THAN $2,000,000.—

23 ‘‘(A) IN GENERAL.—An agency official 

24 may not execute a procurement strategy that 

25 includes a consolidated contract valued at more 
4

•HR 2607 IH 

1 than $2,000,000 unless the proposed procure2 ment strategy—

3 ‘‘(i) specifically identifies the benefits 

4 anticipated from consolidation; 

5 ‘‘(ii) identifies any alternative con6 tracting approaches that would involve a 

7 lesser degree of contract consolidation; and 

8 ‘‘(iii) includes a specific determination 

9 that the proposed consolidation is nec10 essary and the anticipated benefits of such 

11 consolidation justify its use. 

12 ‘‘(B) NECESSARY AND JUSTIFIED.—The 

13 head of an agency may determine that a pro14 curement strategy under subparagraph (A)(iii) 

15 is necessary and justified if the monetary bene16 fits of the procurement strategy, including ad17 ministrative and personnel costs, substantially 

18 exceed the monetary benefits of each of the pos19 sible alternative contracting approaches identi20 fied under subparagraph (A)(ii). 

21 ‘‘(C) ADDITIONAL REQUIREMENTS WHEN

22 THE VALUE OF A CONSOLIDATED CONTRACT IS

23 GREATER THAN $5,000,000.—In addition to 

24 meeting the requirements under paragraph (A), 

25 a procurement strategy that includes a consoli-
5

•HR 2607 IH 

1 dated contract valued at more than 

2 $5,000,000—

3 ‘‘(i) shall be supported by current 

4 market research that demonstrates that 

5 the consolidated contract will result in—

6 ‘‘(I) cost savings; 

7 ‘‘(II) quality improvements; 

8 ‘‘(III) reduction in acquisition 

9 cycle times; or 

10 ‘‘(IV) better terms and condi11 tions; 

12 ‘‘(ii) shall include an assessment of 

13 the specific impediments to participation 

14 by small business concerns as prime con15 tractors that result from contract consoli16 dation; 

17 ‘‘(iii) shall specify actions designed to 

18 maximize small business participation as 

19 subcontractors, including suppliers, at var20 ious tiers under the consolidated contract; 

21 and 

22 ‘‘(iv) shall not be justified under para23 graph (A)(iii) by savings in administrative 

24 or personnel costs, unless the total amount 

25 of the cost savings is expected to be sub-
6

•HR 2607 IH 

1 stantial in relation to the total cost of the 

2 procurement. 

3 ‘‘(3) CONTRACT TEAMING.—

4 ‘‘(A) IN GENERAL.—If the head of an 

5 agency solicits offers for a consolidated con6 tract, a small business concern may submit an 

7 offer that provides for the use of a particular 

8 team of subcontractors for the performance of 

9 the contract (referred to in this paragraph as 

10 ‘teaming’). 

11 ‘‘(B) EVALUATION OF OFFER.—The head 

12 of the agency shall evaluate an offer submitted 

13 by a small business concern under subpara14 graph (A) in the same manner as other offers, 

15 with due consideration to the capabilities of all 

16 of the proposed subcontractors. 

17 ‘‘(C) NO EFFECT ON STATUS AS A SMALL

18 BUSINESS CONCERN.—If a small business con19 cern engages in teaming under subparagraph 

20 (A), its status as a small business concern shall 

21 not be affected for any other purpose.’’. 

22 (c) CONFORMING AMENDMENTS.—The Small Busi23 ness Act (15 U.S.C. 631 et seq.) is amended—

24 (1) in section 2(j)—
7

•HR 2607 IH 

1 (A) by striking the subsection heading and 

2 inserting the following: 

3 ‘‘(j) CONTRACT CONSOLIDATION.—’’; and 

4 (B) in paragraph (3), by striking ‘‘bun5 dling of contract requirements’’ and inserting 

6 ‘‘contract consolidation’’; 

7 (2) in section 8(d)(4)(G), by striking ‘‘a bun8 dled contract’’ and inserting ‘‘a consolidated con9 tract’’; 

10 (3) in section 15(a)—

11 (A) by striking ‘‘bundling of contract re12 quirements’’ and inserting ‘‘contract consolida13 tion’’; and 

14 (B) by striking ‘‘the bundled contract’’ and 

15 inserting ‘‘the consolidated contract’’; and 

16 (4) in section 15(k)(5)—

17 (A) by striking ‘‘significant bundling of 

18 contract requirements’’ and inserting ‘‘consoli19 dated contracts valued at more than 

20 $2,000,000’’; and 

21 (B) by striking ‘‘bundled contract’’ and in22 serting ‘‘consolidated contract’’.

Æ