S.Amdt. 515

1. Inserts new text on page 231, line 3

   InsertsPrinted page

   Inserted: contract consolidation

   Inserted: Sec. 6047. (a) Section 3(o) of the Small Business Act (15 U.S.C. 632(o)) is amended to read as follows:cc

   Inserted: "(o) Definitions Relating to Consolidation of Contract Requirements.--In this Act--

   Inserted: "(1) the terms 'consolidation of contract requirements' and 'consolidation', with respect to contract requirements of a military department, defense agency, Department of Defense Field Activity, or any other Federal department or agency having contracting authority, mean a use of a solicitation to obtain offers for a single contract or a multiple award contract to satisfy 2 or more requirements of that department, agency, or activity for goods or services that--

   Inserted: "(A) have previously been provided to or performed for that department, agency, or activity under 2 or more separate contracts that are smaller in cost than the total cost of the contract for which the offers are solicited; or

   Inserted: "(B) are of a type capable of being provided or performed by a small business concern for that department, agency, or activity under 2 or more separate contracts that are smaller in cost than the total cost of the contract for which the offers are solicited;

   Inserted: "(2) the term 'multiple award contract' means--

   Inserted: "(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;

   Inserted: "(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 sections 303H through 303K of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 253h through 253k); and

   Inserted: "(C) any other indeterminate delivery, indeterminate quantity contract that is entered into by the head of a Federal agency with 2 or more sources pursuant to the same solicitation; and

   Inserted: "(3) the term 'senior procurement executive' means--

   Inserted: "(A) with respect to a military department, the official designated under section 16(k) of the Office of Federal Procurement Policy Act (41 U.S.C. 414(c)) as the senior procurement executive for the military department;

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   Inserted: "(B) with respect to a defense agency or a Department of Defense Field Activity, the official so designated for the Department of Defense; and

   Inserted: "(C) with respect to a Federal department or agency other than those referred to in subparagraphs (A) and (B), the official so designated by that department or agency.".

   Inserted: (b) Section 15(e) of the Small Business Act (15 U.S.C. 644(e)) is amended--

   Inserted: (1) in paragraph (2)--

   Inserted: (A) by striking "research.--

   Inserted: (A) In general.--Before" and inserting "research.--Before"; and

   Inserted: (B) by striking subparagraphs (B) and (C); and

   Inserted: (2) by striking paragraph (3) and inserting the following:

   Inserted: "(3) Limitation on use of acquisition strategies involving consolidation.--

   Inserted: "(A) Certain defense contract requirements.--An official of a military department, defense agency, or Department of Defense Field Activity shall 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 first--

   Inserted: "(i) conducts market research;

   Inserted: "(ii) identifies any alternative contracting approaches that would involve a lesser degree of consolidation of contract requirements; and

   Inserted: "(iii) determines that the consolidation is necessary and justified.

   Inserted: "(B) Certain civilian agency contract requirements.--The head of a Federal agency not covered under subparagraph (A) that has contracting authority shall not execute an acquisition strategy that includes a consolidation of contract requirements of the agency with a total value in excess of $2,000,000, unless the senior procurement executive of the agency first--

   Inserted: "(i) conducts market research;

   Inserted: "(ii) identifies any alternative contracting approaches that would involve a lesser degree of consolidation of contract requirements; and

   Inserted: "(iii) determines that the consolidation is necessary and justified.

   Inserted: "(C) Additional requirements for higher value consolidated contracts.--In addition to meeting the requirements under subparagraph (A) or (B), a procurement strategy by a civilian agency that includes a consolidated contract with a total value in excess of $5,000,000, or by a defense agency that includes a consolidated contract with a total value in excess of $7,000,000 shall include--

   Inserted: "(i) an assessment of the specific impediments to participation by small business concerns as prime contractors that will result from the consolidation;

   Inserted: "(ii) actions designed to maximize small business participation as prime contractors, including provisions that encourage small business teaming for the consolidated requirement;

   Inserted: "(iii) actions designed to maximize small business participation as subcontractors (including suppliers) at any tier under the contract or contracts that may be awarded to meet the requirements; and

   Inserted: "(iv) the identification of the alternative strategies that would reduce or minimize the scope of the consolidation and the rationale for not choosing those alternatives.

   Inserted: "(D) Necessary and justified.--A senior procurement executive may determine that an acquisition strategy involving a consolidation of contract requirements is necessary and justified for purposes of subparagraph (A), (B), or (C), if the benefits of the acquisition strategy substantially exceed the benefits of each of the possible alternative contracting approaches identified under clause (ii) of any of those subparagraphs, as applicable. However, savings in administrative or personnel costs alone do not constitute, for such purpose, 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.

   Inserted: "(E) Benefits.--Benefits considered for purposes of this paragraph may include cost and, regardless of whether quantifiable in dollar amounts--

   Inserted: "(i) quality;

   Inserted: "(ii) acquisition cycle;

   Inserted: "(iii) terms and conditions; and

   Inserted: "(iv) any other benefit directly related to national security or homeland defense.".

   Inserted: (c) Section 15(p)(4)(B) of the Small Business Act (15 U.S.C. 644(p)(4)(B)) is amended--

   Inserted: (1) in clause (i), by striking "and" at the end;

   Inserted: (2) in clause (ii), by striking the period at the end and inserting the following: "; and"; and

   Inserted: (3) by adding at the end the following:

   Inserted: "(iii) a description of best practices for maximizing small business prime and subcontracting opportunities.".

   Inserted: (d) Section 15(p) of the Small Business Act (15 U.S.C. 644(p)) is amended--

   Inserted: (1) in the subsection heading, by striking "Bundled Contracts" and inserting "Consolidated Contracts";

   Inserted: (2) in paragraph (1), in the paragraph heading, by striking "Bundled contract" and inserting "Consolidated contract";

   Inserted: (3) in paragraph (4), in the paragraph heading, by striking "contract bundling" and inserting "contract consolidation";

   Inserted: (4) by striking "bundled contracts" each place that term appears and inserting "consolidated contracts";

   Inserted: (5) by striking "bundled contract" each place that term appears and inserting "consolidated contract";

   Inserted: (6) by striking "bundling of contract requirements" each place that term appears and inserting "consolidation of contract requirements";

   Inserted: (7) in paragraph (4)(B)(ii), by striking "previously bundled" and inserting "previously consolidated";

   Inserted: (8) in paragraph (4)(B)(ii)(I), by striking "were bundled" and inserting "were consolidated";

   Inserted: (9) in paragraph (4)(B)(ii)(II)(bb), by striking "bundling the contract requirements" and inserting "the consolidation of contract requirements"; and

   Inserted: (10) in paragraph (4)(B)(ii)(II)(cc), by striking "bundled status" and inserting "consolidated status".

   Original wording

   On page 231, after line 3, insert the following:

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As printed