Legislation Targets Contract ‘Bundling’

Contract “bundling” remains a hot topic on Capitol Hill, where House legislators have introduced a slew of bills to help ensure that small businesses aren’t squeezed out of the roughly $200-billion federal contracting market.

A report released last month by Rep. Nydia M. Velazquez (D-N.Y.) shows that while small businesses continue to garner around 23% of overall federal contracting dollars--a goal set by Congress in 1997--the actual number of contracts being awarded is shrinking, meaning that fewer small businesses are getting a shot.

The culprit, critics contend, is bundling, a streamlining procedure by which federal procurement officers are lumping multiple purchases together into bigger contracts to save time and paperwork.

In response, Velazquez has introduced two pieces of legislation. The first, HR 4890, would require federal agencies who want to bundle contracts to justify the cost savings and get approval from the Small Business Administration. The SBA could block the bundling under certain conditions. The second bill, HR 4897, would set up a program to help women-owned businesses secure more government contracts.

Rep. Roscoe G. Bartlett (R-Md.) has introduced HR 4943, which would require government agencies using purchase cards to buy almost exclusively from small businesses. It also would allow the government to step in and pay small-business subcontractors in the event that a prime contractor fails to pay.

Rep. James M. Talent (R-Mo.), chairman of the House Small Business Committee, has offered HR 4945. The bill would require the SBA to collect contract bundling data and compile a list of small businesses harmed by the practice.

For more information on the legislation, check out the Library of Congress’ legislative Web site at https://thomas.loc.gov.

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Denise Gellene can be reached at denise.gellene@latimes.com, and Marla Dickerson at marla.dickerson@latimes.com.