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Panoptic Enterprises' FEDERAL CONTRACTS DISPATCH

DATE: October 20, 2003

SUBJECT: Federal Acquisition Circular (FAC) 2001-17 and Small Business Administration (SBA); Contract Bundling

SOURCE: Federal Register, October 20, 2003, Vol. 68, No. 202, pages 59999 and 60006

AGENCIES: Department of Defense (DOD), General Services Administration (GSA), National Aeronautics and Space Administration (NASA), and Small Business Administration (SBA)

ACTION: Final Rules

SYNOPSIS: The FAR and SBA's regulations are amended to implement the recommendations of the Office of Federal Procurement Policy (OFPP) in its report "Contract Bundling: A Strategy for Increasing Federal Contracting Opportunities for Small Business."

EDITOR'S NOTE: "Bundling" is defined in FAR 2.101, Definitions, as "consolidating two or more requirements for supplies or services, previously provided or performed under separate smaller contracts, into a solicitation for a single contract that is likely to be unsuitable for award to a small business concern due to (1) the diversity, size, or specialized nature of the elements of the performance specified; (2) the aggregate dollar value of the anticipated award; (3) the geographical dispersion of the contract performance sites; or (4) any combination of the factors..."

For more on the proposed FAR and SBA rules, see the January 31, 2003, FEDERAL CONTRACTS DISPATCH "Federal Acquisition Regulation (FAR) and Small Business Administration (SBA); Contract Bundling."

For more on "Contract Bundling: A Strategy for Increasing Federal Contracting Opportunities for Small Business," see the October 30, 2002, FEDERAL CONTRACTS DISPATCH "Office of Federal Procurement Policy (OFPP); Contract Bundling: A Strategy for Increasing Federal Contracting Opportunities for Small Business."

For more on SBA's proposed rule on subcontract plan achievements that was in response to comments on its proposed contract bundling rule, see today's FEDERAL CONTRACTS DISPATCH "Small Business Administration (SBA); Achievement of Subcontract Plan Goals."

DATES: The effective date for both the FAR and SBA final rules is October 20, 2003.

FOR FURTHER INFORMATION CONTACT: For FAC 2001-17, Rhonda Cundiff, Procurement Analyst, 202-501-0044. For the SBA final rule: Dean Koppel, Assistant Administrator, Office of Policy and Research, 202-401-8150, or by e-mail to dean.koppel@sba.gov.

SUPPLEMENTAL INFORMATION: On October 29, 2002, OFPP submitted to the president the report "Contract Bundling: A Strategy for Increasing Federal Contracting Opportunities for Small Business." Among the rcommendations in the report were:

To implement these actions, proposed rules to amend the FAR and SBA regulations were published on January 31, 2003. Forty-three sets of comments were submitted in response to the FAR proposed bundling rule and 26 comments were submitted in response to the SBA regulations proposed bundling rule. As a result of the comments, the FAR proposed rule is adopted as proposed with a minor addition, and the SBA proposed rule is adopted with minor changes.

The following are the major changes being made to the FAR and SBA's regulations:

FAR

SBA Regulations (Title 13 of the Code of Federal Regulations (CFR), Part 125, Government Contracting Programs, Section 125.2, Prime Contracting Assistance)

The revisions to 13 CFR 125.2 parallel those made to the FAR for the most part. The following are the changes being made to SBA's regulations that have no counterpart in the FAR changes:

FOR FURTHER INFORMATION CONTACT: Panoptic Enterprises at 703-451-5953 or by e-mail to Panoptic@FedGovContracts.com.

Copyright 2003 by Panoptic Enterprises. All Rights Reserved.

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