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) intro-
duced 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.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Small Business Fed-
eral Contractor Safeguard Act’’. 
SEC. 2. CONTRACT CONSOLIDATION. 
(a) DEFINITIONS.—Section 3(o) of the Small Busi-
ness Act (15 U.S.C. 632(o)) is amended to read as follows: 
‘‘(o) DEFINITIONS.—In this Act the following defini-
tions shall apply:
‘‘(1) CONSOLIDATED
CONTRACT; CONSOLIDA-
TION.—The term ‘consolidated contract’ or ‘consoli-
dation’ means a multiple award contract or a con-
tract for goods or services with a Federal agency 
that—
‘‘(A) combines discrete procurement re-
quirements from not less than 2 existing con-
tracts; 
‘‘(B) adds new, discrete procurement re-
quirements to an existing contract; or 
‘‘(C) includes 2 or more discrete procure-
ment requirements. 
‘‘(2) MULTIPLE AWARD CONTRACT.—The term 
‘multiple award contract’ means—
‘‘(A) a contract that is entered into by the 
Administrator of General Services under the 
multiple award schedule program referred to in 
section 2302(2)(C) of title 10, United States 
Code; 
‘‘(B) a multiple award task order contract 
or delivery order contract that is entered into 
under the authority of sections 2304a through 
2304d of title 10, United States Code, or sec-
tions 303H through 303K of the Federal Prop-
erty and Administrative Services Act of 1949 
(41 U.S.C. 253h through 253k); and 
‘‘(C) any other indefinite delivery or indefi-
nite quantity contract that is entered into by 
the head of a Federal agency with 2 or more 
sources pursuant to the same solicitation.’’. 
(b) PROCUREMENT STRATEGIES.—Section 15(e) of 
the Small Business Act (15 U.S.C. 644(e)) is amended 
to read as follows: 
‘‘(e) PROCUREMENT STRATEGIES; CONTRACT CON-
SOLIDATION.—
‘‘(1) IN
GENERAL.—To the maximum extent 
practicable, procurement strategies used by the var-
ious agencies having contracting authority shall fa-
cilitate the maximum participation of small business 
concerns as—
‘‘(A) prime contractors; 
‘‘(B) subcontractors; and 
‘‘(C) suppliers. 
‘‘(2) PROCUREMENT STRATEGY REQUIREMENTS 
WHEN THE VALUE OF A CONSOLIDATED CONTRACT 
IS GREATER THAN $2,000,000.—
‘‘(A) IN
GENERAL.—An agency official 
may not execute a procurement strategy that 
includes a consolidated contract valued at more
than $2,000,000 unless the proposed procure-
ment strategy—
‘‘(i) specifically identifies the benefits 
anticipated from consolidation; 
‘‘(ii) identifies any alternative con-
tracting approaches that would involve a 
lesser degree of contract consolidation; and 
‘‘(iii) includes a specific determination 
that the proposed consolidation is nec-
essary and the anticipated benefits of such 
consolidation justify its use. 
‘‘(B) NECESSARY
AND
JUSTIFIED.—The 
head of an agency may determine that a pro-
curement strategy under subparagraph (A)(iii) 
is necessary and justified if the monetary bene-
fits of the procurement strategy, including ad-
ministrative and personnel costs, substantially 
exceed the monetary benefits of each of the pos-
sible alternative contracting approaches identi-
fied under subparagraph (A)(ii). 
‘‘(C) ADDITIONAL
REQUIREMENTS
WHEN 
THE VALUE OF A CONSOLIDATED CONTRACT IS 
GREATER
THAN
$5,000,000.—In addition to 
meeting the requirements under paragraph (A), 
a procurement strategy that includes a consoli-
dated 
contract 
valued 
at 
more 
than 
$5,000,000—
‘‘(i) shall be supported by current 
market research that demonstrates that 
the consolidated contract will result in—
‘‘(I) cost savings; 
‘‘(II) quality improvements; 
‘‘(III) reduction in acquisition 
cycle times; or 
‘‘(IV) better terms and condi-
tions; 
‘‘(ii) shall include an assessment of 
the specific impediments to participation 
by small business concerns as prime con-
tractors that result from contract consoli-
dation; 
‘‘(iii) shall specify actions designed to 
maximize small business participation as 
subcontractors, including suppliers, at var-
ious tiers under the consolidated contract; 
and 
‘‘(iv) shall not be justified under para-
graph (A)(iii) by savings in administrative 
or personnel costs, unless the total amount 
of the cost savings is expected to be sub-
stantial in relation to the total cost of the 
procurement. 
‘‘(3) CONTRACT TEAMING.—
‘‘(A) IN
GENERAL.—If the head of an 
agency solicits offers for a consolidated con-
tract, a small business concern may submit an 
offer that provides for the use of a particular 
team of subcontractors for the performance of 
the contract (referred to in this paragraph as 
‘teaming’). 
‘‘(B) EVALUATION OF OFFER.—The head 
of the agency shall evaluate an offer submitted 
by a small business concern under subpara-
graph (A) in the same manner as other offers, 
with due consideration to the capabilities of all 
of the proposed subcontractors. 
‘‘(C) NO EFFECT ON STATUS AS A SMALL 
BUSINESS CONCERN.—If a small business con-
cern engages in teaming under subparagraph 
(A), its status as a small business concern shall 
not be affected for any other purpose.’’. 
(c) CONFORMING AMENDMENTS.—The Small Busi-
ness Act (15 U.S.C. 631 et seq.) is amended—
(1) in section 2(j)—
(A) by striking the subsection heading and 
inserting the following: 
‘‘(j) CONTRACT CONSOLIDATION.—’’; and 
(B) in paragraph (3), by striking ‘‘bun-
dling of contract requirements’’ and inserting 
‘‘contract consolidation’’; 
(2) in section 8(d)(4)(G), by striking ‘‘a bun-
dled contract’’ and inserting ‘‘a consolidated con-
tract’’; 
(3) in section 15(a)—
(A) by striking ‘‘bundling of contract re-
quirements’’ and inserting ‘‘contract consolida-
tion’’; and 
(B) by striking ‘‘the bundled contract’’ and 
inserting ‘‘the consolidated contract’’; and 
(4) in section 15(k)(5)—
(A) by striking ‘‘significant bundling of 
contract requirements’’ and inserting ‘‘consoli-
dated 
contracts 
valued 
at 
more 
than 
$2,000,000’’; and 
(B) by striking ‘‘bundled contract’’ and in-
serting ‘‘consolidated contract’’.
Æ