DOD Contracting: Extent and Impact of Contract Bundling Is Unknown
(Letter Report, 04/14/94, GAO/NSIAD-94-137).

The Defense Department's (DOD) centralized contracting data do not
identify contracts that have been bundled.  Bundling occurs when
agencies package contract requirements into acquisitions, a practice
that can effectively preclude small businesses from competing.  The
Small Business Administration (SBA) has begun to collect data on the
extent of contract bundling where it has assigned resident
representatives, but only about half of DOD's contract dollars are
obligated at these locations.  SBA's data-gathering effort could yield
empirical data on the magnitude of the problem.  Should such data be
deemed insufficient, however, GAO believes that there should be
reasonable assurances that any new collection effort will accomplish its
objectives without the cost exceeding the expected benefits.   DOD
officials and others believe that bundling could harm small businesses
that want to compete for government contracts but could also benefit
government procurement activities by reducing their workload.  GAO found
no empirical evidence proving the costs or benefits of bundling.
Existing guidance in the Federal Acquisition Regulation does not ensure
that contracting officers properly identify all bundled contracts.
Further, the existence of multiple definitions creates confusion about
what constitutes bundling.

--------------------------- Indexing Terms -----------------------------

 REPORTNUM:  NSIAD-94-137
     TITLE:  DOD Contracting: Extent and Impact of Contract Bundling Is 
             Unknown
      DATE:  04/14/94
   SUBJECT:  Contract administration
             Small business contractors
             Contracting procedures
             Procurement regulation
             Contractor selection
             Procurement procedures
             Defense procurement
             Procurement policies
             Small business assistance
IDENTIFIER:  National Performance Review
             
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