DOD Contracting:

Extent and Impact of Contract Bundling Is Unknown

NSIAD-94-137: Published: Apr 14, 1994. Publicly Released: Apr 14, 1994.

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Pursuant to a legislative requirement, GAO reviewed the: (1) extent and impact of contract bundling within the Department of Defense (DOD); and (2) adequacy of the government's policies and procedures concerning bundling.

GAO found that: (1) sufficient data are not available to determine the extent and impact of DOD contract bundling; (2) DOD officials believe that bundling could have a negative effect on small businesses that want to compete for government contracts and a positive effect on government procurement activities by reducing their workload; (3) the concept of contract bundling is sometimes at odds with the government's socioeconomic policies because of the potential adverse effect on small business participation in federal contract awards; (4) the Small Business Act does not establish monitoring and management controls to ensure that contracting officers properly identify all bundled contracts; and (5) the existence of multiple definitions of contract bundling creates confusion about what constitutes bundling.

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