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Q: SECTION 1. CONSOLIDATION OF CONTRACT REQUIREMENTS.

(a) Amendment to Title 10.--
(1) In general.--Chapter 141 of title 10, United States
Code, is amended by inserting after section 2381 the following
new section:
''Sec. 2382. Consolidation of contract requirements: policy and
restrictions
''(a) Policy.--The Secretary of Defense shall require the Secretary
of each military department, the head of each Defense Agency, and the
head of each Department of Defense Field Activity to ensure that the
decisions made by that official regarding consolidation of contract
requirements of the department, agency, or activity as the case may be,
are made with a view to providing small business concerns with
appropriate opportunities to participate in Department of Defense
procurements as prime contractors and appropriate opportunities to
participate in such procurements as subcontractors.
''(b) Limitation on Use of Acquisition Strategies Involving
Consolidation.--(1) An official of a military department, Defense
Agency, or Department of Defense Field Activity may not execute an
acquisition strategy that includes a consolidation of contract
requirements of the military department, agency, or activity with a
total value in excess of $5,000,000, unless the senior procurement
executive concerned first--
''(A) conducts market research;
''(B) identifies any alternative contracting approaches
that would involve a lesser degree of consolidation of contract
requirements; and
''(C) determines that the consolidation is necessary and
justified.
''(2) A senior procurement executive may determine that an
acquisition strategy involving a consolidation of contract requirements
is necessary and justified for the purposes of paragraph (1) if the
benefits of the acquisition strategy substantially exceed the benefits
of each of the possible alternative contracting approaches identified
under subparagraph (B) of that paragraph. However, savings in
administrative or personnel costs alone do not constitute, for such
purposes, a sufficient justification for a consolidation of contract
requirements in a procurement unless the total amount of the cost
savings is expected to be substantial in relation to the total cost of
the procurement.
''(3) Benefits considered for the purposes of paragraphs (1) and
(2) may include cost and, regardless of whether quantifiable in dollar
amounts--
''(A) quality;
''(B) acquisition cycle;
''(C) terms and conditions; and
''(D) any other benefit.
''(c) Definitions.--In this section:
''(1) The terms 'consolidation of contract requirements'
and 'consolidation', with respect to contract requirements of a
military department, Defense Agency, or Department of Defense
Field Activity, mean a use of a solicitation to obtain offers
for a single contract or a multiple award contract to satisfy
two or more requirements of that department, agency, or
activity for goods or services that have previously been
provided to, or performed for, that department, agency, or
activity under two or more separate contracts smaller in cost
than the total cost of the contract for which the offers are
solicited.
''(2) 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 this title;
''(B) a multiple award task order contract or
delivery order contract that is entered into under the
authority of sections 2304a through 2304d of this title
or sections 303H through 303K of the Federal Property
and Administrative Services Act of 1949 (41 U.S.C. 253h
through 253k); and
''(C) any other indeterminate delivery,
indeterminate quantity contract that is entered into by
the head of a Federal agency with two or more sources
pursuant to the same solicitation.
''(3) The term 'senior procurement executive concerned'
means--
''(A) with respect to a military department, the
official designated under section 16(3) of the Office
of Federal Procurement Policy Act (41 U.S.C. 414(3)) as
the senior procurement executive for the military
department; or
''(B) with respect to a Defense Agency or a
Department of Defense Field Activity, the official so
designated for the Department of Defense.
''(4) The term 'small business concern' means a business
concern that is determined by the Administrator of the Small
Business Administration to be a small-business concern by
application of the standards prescribed under section 3(a) of
the Small Business Act (15 U.S.C. 632(a)).''.
(2) Clerical amendment.--The table of sections at the
beginning of such chapter is amended by inserting after the
item relating to section 2381 the following new item:

''2382. Consolidation of contract requirements: policy and
restrictions.''.
(b) Data Review.--
(1) Requirement for review.--The Secretary of Defense shall
revise the data collection systems of the Department of Defense
to ensure that such systems are capable of identifying each
procurement that involves a consolidation of contract
requirements within the department with a total value in excess
of $5,000,000.
(2) Periodic review.--The Secretary shall ensure that
appropriate officials of the Department of Defense periodically
review the information collected pursuant to paragraph (1) in
cooperation with the Small Business Administration--
(A) to determine the extent of the consolidation of
contract requirements in the Department of Defense; and
(B) to assess the impact of the consolidation of
contract requirements on the availability of
opportunities for small business concerns to
participate in Department of Defense procurements, both
as prime contractors and as subcontractors.
(3) Definitions.--In this subsection:
(A) The term ''bundling of contract requirements''
has the meaning given that term in section 3(o)(2) of
the Small Business Act (15 U.S.C. 632(o)(2)).
(B) The term ''consolidation of contract
requirements'' has the meaning given that term in
section 2382(c)(1) of title 10, United States Code, as
added by subsection (a).
(C) The term ''small business concern'' means a
business concern that is determined by the
Administrator of the Small Business Administration to
be a small-business concern by application of the
standards prescribed under section 3(a) of the Small
Business Act (15 U.S.C. 632(a)).
(c) Evaluation of Bundling Effects.--Section 15(h)(2) of the Small
Business Act (15 U.S.C. 644(h)(2)) is amended--
(1) in subparagraph (C), by inserting '', and whether
contract bundling played a role in the failure,'' after
''agency goals''; and
(2) by adding at the end the following:
''(G) The number and dollar value of consolidations of
contract requirements with a total value in excess of
$5,000,000, including the number of such consolidations that
were awarded to small business concerns as prime
contractors.''.
(d) Reporting Requirement.--
(1) In general.--The Administrator of the Small Business
Administration shall conduct a study examining the best means
to determine the accuracy of the market research required under
section 15(e)(2) of the Small Business Act (15 U.S.C.
644(e)(2)) for each bundled contract (as defined in section
3(o)(1) of such Act (15 U.S.C. 632(o)(1)), to determine whether
the anticipated benefits were realized, or if they were not
realized, the reasons that the anticipated benefits were not
realized.
(2) Provision of information.--The head of a Federal agency
shall provide to the appropriate procurement center
representative a copy of market research required of the agency
under section 15(e)(2) of the Small Business Act for
consolidations of contract requirements with a total value in
excess of $5,000,000, upon request.
(3) Report.--Not later than 270 days after the date of
enactment of this Act, the Administrator shall submit a report
to the Committee on Small Business and Entrepreneurship of the
Senate and the Committee on Small Business of the House of
Representatives on the results of the study conducted under
this subsection.
(4) Repeal of requirement for annual report.--Section 15 of
the Small Business Act (15 U.S.C. 644) is amended by striking
subsection (p).
A:
Directs the Secretary of Defense to require the Secretary of each military department and the head of each defense agency and Department of Defense (DOD) Field Activity to ensure that decisions made regarding the consolidation of contract requirements (bundling) are made with a view to providing small businesses with appropriate opportunities to participate in DOD procurements as prime contractors and subcontractors. Limits the authority of any such official to execute an acquisition strategy that includes a consolidation of contract requirements with a total value in excess of $5 million. Requires the Secretary to review DOD data collection systems to ensure their capability of identifying each procurement that involves a consolidation in excess of such amount.Amends the Small Business Act to require the Small Business Administration (SBA) to report annually to the President the number and value of consolidations in excess of such amount, including the number of such consolidations that were awarded to small businesses as prime contractors. Requires the SBA Administrator to study the best means to determine the accuracy of certain required market research on bundled contracts to determine whether their anticipated benefits were realized.