DIR's Supplier Diversity Information Resource Guide 20, Jan 2012 | Page 15

COPYRIGHT 2012, DIVERSITY INFORMATION RESOURCES, MINNEAPOLIS, MN

Legislation

The Act requires each federal department and agency, to the maximum extent practicable, to: (1) structure
contracting requirements to facilitate competition by and among small business concerns, taking all reasonable steps to eliminate obstacles to their participation; and (2) avoid unnecessary and unjustified bundling of
contract requirements that may preclude small business participation in procurements as prime contractors.
Prior to bundling any contracts, agencies are required to conduct market research to determine whether
contract bundling is necessary and justified. To justify contract bundling, agencies must demonstrate "measurably substantial benefits," such as cost savings, quality improvements, reduction in acquisition cycle
times, or better terms and conditions.2 The Small Business Administration’s implementing regulations
further define "measurably substantial benefits" by requiring agencies to demonstrate:
• For contracts of $75 million or less - - benefits equivalent to 10 percent of contr 7Bf?VR???6?VF??p??F???2??? ?(
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