MAY 2018 | VERSION 3.0 | available at http://business.defense.gov/Acquisition/Policy/
intent regarding bundling is clear: “avoid unnecessary and unjustified bundling of contract
requirements that precludes small business participation in procurements as prime contractors.”
CONSOLIDATION VERSUS BUNDLING
In short, contract bundling is a subset of contract consolidation which effectively precludes
participation by small business because small businesses cannot perform the contract.
FAR 2.101 includes a definition of consolidation as follows:
“Consolidation or consolidated requirement”--
(1) Means a solicitation for a single contract, a multiple-award contract, a task order, or a
delivery order to satisfy--
(i) Two or more requirements of the Federal agency for supplies or services that
have been provided to or performed for the Federal agency under two or more
separate contracts, each of which was lower in cost than the total cost of the
contract for which offers are solicited; or
(ii) Requirements of the Federal agency for construction projects to be
performed at two or more discrete sites.
(2) Separate contract as used in this definition, means a contract that has been performed
by any business, including small and other than small business concerns.
Bundling refers to a subset of consolidation. FAR 2.101 defines “bundling” as follows:
(1) Means a subset of consolidation that combines two or more requirements for supplies or
services, previously provided or performed under separate smaller contracts (see paragraph (2) of
this definition), into a solicitation for a single contract, a multiple-award contract, or a task or
delivery order that is likely to be unsuitable for award to a small business concern (even if it is
suitable for award to a small business with a Small Business Teaming Arrangement) due to--
(i) The diversity, size, or specialized nature of the elements of the performance specified;
(ii) The aggregate dollar value of the anticipated award;
(iii) The geographical dispersion of the contract performance sites; or
(iv) Any combination of the factors described in paragraphs (1)(i), (ii), and (iii) of this
definition.
(2) “Separate smaller contract” as used in this definition, means a contract that has been performed
by one or more small business concerns or that was suitable for award to one or more small
business concerns.