Officials: Unbundling might work

The Bush administration's effort to unbundle contracts when possible and mitigate the effects of necessary bundling on small businesses could work if implemented and monitored properly, government executives said March 18 at a hearing before the Senate Committee on Small Business and Entrepreneurship.

"We believe the plan, if successfully implemented -- and that's a big if -- will be effective," said David Cooper, director of acquisition and sourcing management for the General Accounting Office.

Bundling is the consolidation of two or more contracts for goods or services previously provided under separate, smaller contracts. The bundled contract is unlikely to be won by a small business because it is often not large enough to handle the requirements.

Proposed regulatory changes to reduce bundling include increasing the number of reviews for bundling and strengthening compliance with subcontracting plans.

 

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