Hanna says contract bundling and consolidation negatively affect small businesses

The House Small Business subcommittee on Contract on Workforce held a hearing on Oct. 10 to discuss how contract bundling and consolidation have a negative affect on small business in the federal market.

“Because the federal government spends half a trillion dollars on contracted goods and services, we owe it to hardworking taxpayers to make sure their money is used wisely and efficiently,” Subcommittee Chairman Rep. Richard Hanna (R-N.Y.) said. “But unfortunately, taxpayers are harmed when small businesses are unable to fairly compete for work simply because the government unnecessarily combined multiple tasks.”

When contracts for small projects are lumped into one large contract instead of offered as separate jobs, small businesses hesitate to bid on the work, according to the House Committee on Small Business.

“We know overall costs are driven down when small businesses are able to compete and bid,” Hanna said. “The administration needs to do much better in following law on bundling.”

President of TargetGov Gloria Larkin attended the hearing and said that bundling and consolidation hampers small business in the federal marketplace.

“We believe that contracts that can be serviced by small businesses should not be subject to any form of consolidation,” Larkin said.

Hanna introduced the Commonsense Construction Contracting Act of 2013 in July, which would alter how the federal government selects construction services by ensuring a more thorough bidding process. The bill awaits approval in committee.