A bill (H.R. 4945) related to the practice of “contract bundling” and its effect on women-owned businesses was approved, 422-0, by the House on September 20. The House Small Business Committee approved the bill on July 27 (see The Source, 7/31/99).
Federal departments and agencies often “bundle” together a group of smaller contracts, purchasing a broad package of goods and services from one bidder in an effort to save money. Small businesses, including those owned by women, face difficulty in competing with corporations for bundled contracts, as the small businesses are unable to guarantee the delivery of goods or services on a large enough scale.
Under H.R. 4945, sponsored by Small Business Committee Chair Jim Talent (R-MO), the Small Business Administration (SBA) would create a new database to track the federal government’s contract bundling, as well as the number of small businesses denied prime contracts as a result of the practice. The SBA also would be required to make an annual report to Congress on bundling and its potential benefits.
Rep. Nydia Velazquez (D-NY), the committee’s ranking member, said, “This legislation begins the process of making common sense changes to the practice of contract bundling.” In addition, she cited a study by the General Accounting Office, stating: “From 1997 to 1999, the number of contracts offered to small business by the Department of Defense dropped by over 34 percent.… The number of contracts awarded to minority owned firms has decreased by over 25 percent, and most dramatically the number of contracts awarded to women-owned businesses has decreased by over 38 percent.”
