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15 U.S.C. § 657q — Consolidation of contract requirements

submitted 16 years ago by Pub. L. 85-536 to r/title-15-COMMERCE-AND-TRADE · 632 words · no verdicts yet

in plain englishAI-generated · not legal advice

Federal agencies must consider small-business prime and subcontracting opportunities when combining contracts. A large consolidation over $2 million requires market research, alternatives, written justification, notice, and steps to include small businesses.

(a) Definitions. “Chief Acquisition Officer” means the agency employee appointed under section 1702(a) of title 41. “Consolidation of contract requirements” means using one solicitation for one contract or a multiple-award contract to satisfy (A) two or more goods or service requirements previously performed under separate contracts whose combined cost was lower than the proposed contract’s cost, or (B) construction requirements at two or more separate sites. “Senior procurement executive” means the official designated under section 1702(c) of title 41. (b) Policy. Each agency head must ensure that consolidation decisions provide small businesses appropriate chances to be prime contractors and subcontractors. (c) Limitation. (1) An agency head may not use a strategy consolidating requirements worth more than $2,000,000 unless the senior procurement executive or Chief Acquisition Officer first (A) researches the market; (B) identifies less-consolidated alternatives; (C) makes a written finding that consolidation is necessary and justified; (D) identifies negative effects on small-business contracting; and (E) ensures steps will include small businesses. (2)(A) Consolidation is necessary and justified if its benefits substantially exceed those of every identified alternative. (B) Administrative or personnel savings alone are insufficient unless expected savings are substantial compared with total procurement cost. (C) Within 7 days after the finding, the official must publish notice on a public website. The solicitation cannot be published until 7 days after that notice. When publishing it, the official must publish the justification and the information required by (A) through (E) of paragraph (1). (3) Benefits may include cost, quality, acquisition time, terms and conditions, and any other benefit, whether or not measurable in dollars.
the actual law source: uscode.house.gov ↗public domain
(a) Definitions

In this section—

(1)

the term “Chief Acquisition Officer” means the employee of a Federal agency appointed or designated as the Chief Acquisition Officer for the Federal agency under section 1702(a) of title 41;

(2)

the term “consolidation of contract requirements”, with respect to contract requirements of a Federal agency, means a use of a solicitation to obtain offers for a single contract or a multiple award contract—

(A)

to satisfy 2 or more requirements of the Federal agency for goods or services that have been provided to or performed for the Federal agency under 2 or more separate contracts lower in cost than the total cost of the contract for which the offers are solicited; or

(B)

to satisfy requirements of the Federal agency for construction projects to be performed at 2 or more discrete sites; and

(3)

the term “senior procurement executive” means an official designated under section 1702(c) of title 41 as the senior procurement executive for a Federal agency.

(b) Policy

The head of each Federal agency shall ensure that the decisions made by the Federal agency regarding consolidation of contract requirements of the Federal agency are made with a view to providing small business concerns with appropriate opportunities to participate as prime contractors and subcontractors in the procurements of the Federal agency.

(c) Limitation on use of acquisition strategies involving consolidation
(1) In general

The head of a Federal agency may not carry out an acquisition strategy that includes a consolidation of contract requirements of the Federal agency with a total value of more than $2,000,000, unless the senior procurement executive or Chief Acquisition Officer for the Federal agency, before carrying out the acquisition strategy—

(A)

conducts market research;

(B)

identifies any alternative contracting approaches that would involve a lesser degree of consolidation of contract requirements;

(C)

makes a written determination that the consolidation of contract requirements is necessary and justified;

(D)

identifies any negative impact by the acquisition strategy on contracting with small business concerns; and

(E)

ensures that steps will be taken to include small business concerns in the acquisition strategy.

(2) Determination that consolidation is necessary and justified
(A) In general

A senior procurement executive or Chief Acquisition Officer may determine that an acquisition strategy involving a consolidation of contract requirements is necessary and justified for the purposes of paragraph (1)(C) if the benefits of the acquisition strategy substantially exceed the benefits of each of the possible alternative contracting approaches identified under paragraph (1)(B).

(B) Savings in administrative or personnel costs

For purposes of subparagraph (A), savings in administrative or personnel costs alone do not constitute a sufficient justification for a consolidation of contract requirements in a procurement unless the expected total amount of the cost savings, as determined by the senior procurement executive or Chief Acquisition Officer, is expected to be substantial in relation to the total cost of the procurement.

(C) Notice

Not later than 7 days after making a determination that an acquisition strategy involving a consolidation of contract requirements is necessary and justified under subparagraph (A), the senior procurement executive or Chief Acquisition Officer shall publish a notice on a public website that such determination has been made. Any solicitation for a procurement related to the acquisition strategy may not be published earlier than 7 days after such notice is published. Along with the publication of the solicitation, the senior procurement executive or Chief Acquisition Officer shall publish a justification for the determination, which shall include the information in subparagraphs (A) through (E) of paragraph (1).

(3) Benefits to be considered

The benefits considered for the purposes of paragraphs (1) and (2) may include cost and, regardless of whether quantifiable in dollar amounts—

(A)

quality;

(B)

acquisition cycle;

(C)

terms and conditions; and

(D)

any other benefit.

Source credit: (Pub. L. 85–536, § 2[44], as added Pub. L. 111–240, title I, § 1313(a)(2), Sept. 27, 2010, 124 Stat. 2538; amended Pub. L. 112–239, div. A, title XVI, § 1671(a), (b), (c)(2), Jan. 2, 2013, 126 Stat. 2084, 2085; Pub. L. 113–291, div. A, title VIII, § 822(b), Dec. 19, 2014, 128 Stat. 3436; Pub. L. 114–92, div. A, title VIII, § 863(b), (c), Nov. 25, 2015, 129 Stat. 926, 927.)

history & why it existsrecord from the source credit
  • 2010Enacted · Pub. L. 85-536 · 124 Stat. 2538
  • 2013Amended · Pub. L. 112-239 · 126 Stat. 2084, 2085
  • 2014Amended · Pub. L. 113-291 · 128 Stat. 3436
  • 2015Amended · Pub. L. 114-92 · 129 Stat. 926, 927

A history note hasn’t been published yet. The record shows enactment by Pub. L. 85-536 on 2010-09-27.

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