Consolidation or consolidated requirement, (FAR 2.101)
Started by Dk3081 · May 28, 2024 · 6 replies
- DOriginal post
Dk3081
May 28, 2024 · 2y ago
I am looking for guidance on how the definition of consolidation applies to my situation. Specifically, the part (ii) Requirements of the Federal agency for construction projects to be performed at two or more discrete sites.
I am in the process of soliciting a regional Construction MAC. There are no contracts that I will be consolidating. The MAC will be set-aside to small business.
I am being told that I must do a D&F for Consolidation of Requirements. The research I have done leads me to the conclusion that a D&F for consolidation applies when there is other than small business that will be consolidated with or without small business when it is more beneficial to the government and satisfies part (i) of the definition. The D&F will justify this. I also understand consolidation to mean Removing subsets (or portions) of a requirement from two or more contracts to create a new contract meets the definition of consolidation and requires the use of this D&F.
There is nothing I will be consolidating and feel this "requirement" does not apply. I am being told however, that since this MAC is for construction, subsection(ii) of the definition applies and therefor requires the D&F. A D&F is an approval that is required by statute or regulation as a prerequisite to take certain contract actions. What statute or regulation is applicable when no contracts are being consolidated and the MAC is being awarded to small business? What am I not understanding?
- R
RJ_Walther
Jun 21, 2024 · 1y ago
As you point out, according to FAR 2.101 Consolidation or consolidated requirement—(1) Means a solicitation for a [...] multiple-award contract [...] to satisfy [...] Requirements of the Federal agency for construction projects to be performed at two or more discrete sites.
You say you are "soliciting a regional Construction MAC" which hits those three elements: 1) solicitation, 2) MAC, 3) regional=two or more discrete sites, so it seems like you have consolidation.
FAR 7.107-2 says that "before conducting an acquisition that is a consolidation of requirements with an estimated total dollar value exceeding $2 million, the senior procurement executive (SPE) or chief acquisition officer (CAO) shall make a written determination that the consolidation is necessary and justified". Your agency supplement my have more to say on this.
So since it seems you have consolidation you will need the "written determination" before conducting your acquisition. But, according to the FAR, you will not need a D&F, which is different from a Determination, this post has a good explanation of the difference:
- D
Dk3081
Jun 28, 2024 · 1y ago
Thank you for your reply RJ. The research I have done concludes that the sole intent of consolidation is when a large business is involved making it unlikely for a small business to compete for the prime contract and inhibiting small business from "receiving a fair share of Federal procurements". You then consolidate the requirement to include the small business. FAR 19.201 points this out and ensures actions are taken to "mitigate the effects of necessary and justified consolidation or bundling on small business".
Also,
13 CFR 125.1( c) states**:** Contract bundling, bundled requirement, bundled contract, or bundling means the consolidation of two or more procurement requirements for goods or services previously provided or performed under separate smaller contracts into a solicitation of offers for a single contract, a Multiple Award Contract, or Blanket Purchase Agreement that is likely to be unsuitable for award to a small business concern (but may be suitable for award to a small business with a Small Business Teaming Arrangement), regardless of whether new work is added to the solicitation for the contract or agreement, due to:
(1) The diversity, size, or specialized nature of the elements of the performance specified;
(2) The aggregate dollar value of the anticipated award;
(3) The geographical dispersion of the contract performance sites; or
(4) Any combination of the factors described in paragraphs (1), (2), and (3) of this definition.
Based on the above, there is no large business presence in my procurement, nor are there any current open construction contracts awarded to large business where consolidation would then need to be considered and justified.
- R
RJ_Walther
Jul 1, 2024 · 1y ago
On 6/28/2024 at 8:09 AM, Dk3081 said:
Contract bundling, bundled requirement, bundled contract, or bundling means the
Consolidation and bundling are two different things, or rather bundling is a subset of consolidation where the work becomes unsuitable for small business after the consolidation. The definition you provide is for bundling, scroll up a bit in your CFR reference and see the definition of consolidation.
- D
Dk3081
Jul 12, 2024 · 1y ago
Thank you RJ. I reached out to SBA as well. Waiting to hear back. I still conclude "consolidation" does not apply to my situation. So far I have not been able to find, nor has anyone been able to explain clearly and exactly what "(ii) Requirements of the Federal agency for construction projects to be performed at two or more discrete sites." of the definition means and exactly how and exactly when it is applied.
- C
C Culham
Jul 12, 2024 · 1y ago
Dk3081 said:
Thank you RJ. I reached out to SBA as well. Waiting to hear back. I still conclude "consolidation" does not apply to my situation. So far I have not been able to find, nor has anyone been able to explain clearly and exactly what "(ii) Requirements of the Federal agency for construction projects to be performed at two or more discrete sites." of the definition means and exactly how and exactly when it is applied.
I suspect the case cited here and the conclusion of the discussion still applies.
- D
Dk3081
Jul 29, 2024 · 1y ago
Thank you. This is somewhat helpful info and in a way supports my reasoning.