Government Contracts FAR Rule Would Require Public Notice of Bundling and Consolidation
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Monday, May 18, 2020

FAR Rule Would Require Public Notice of Bundling and Consolidation

By Government Contracts Editorial Staff

A proposed rule would amend the Federal Acquisition Regulation to implement section 863 of the National Defense Authorization Act for Fiscal Year 2016 (PL 114-92, codified at 15 USC 644(e)(3) and 657q(c)(2)), which requires public notice of determinations to substantially bundle or consolidate contract requirements. Under section 863, publication of a notice is required when the agency head determines that an acquisition plan for a procurement involves substantial bundling of contract requirements. A proposed change to FAR 7.107-5, Notifications, adds a requirement for publication of this notice on the governmentwide point of entry. The government may not publish a solicitation for a procurement earlier than seven days after a notice is published concerning a determination of substantial bundling of contract requirements. The GPE notice must provide the rationale for substantial bundling with the publication of the solicitation, and it must address the information required at FAR 7.107-4(b), such as the specific benefits anticipated, any alternative approaches, impediments to participation by small business concerns as prime contractors, and actions designed to maximize participation of small business concerns as subcontractors.

Additional Notice. Section 863 also requires public notice when the senior procurement executive or chief acquisition officer determines that an acquisition strategy involving consolidation of contract requirements is necessary and justified under 15 USC 657q(c)(2)(A). Accordingly, the rule would also amend FAR 7.107-5 to require the SPE or CAO to publish notice of this determination on the GPE and with the publication of the solicitation. This notice must be published not later than seven days after the SPE or CAO makes the determination, and any solicitation for a procurement related to the acquisition strategy may not be published earlier than seven days after publication of the notice. Further, the agency must publish a justification for the determination with the solicitation, and the justification must include the information in 15 USC 657q(c)(1)(A) through (E). The rule proposes related changes to FAR 5.205, FAR 7.105, FAR 7.107-1, and FAR 7.107-2. Comments on the proposed rule referencing FAR Case 2019-003 are due June 26, 2020. For the text of the rule, see ¶70,006.353.

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