New Anti-Bundling Initiative Is Weighed The Office of Federal Procurement Policy is studying new measures to combat unjustified contract bundling. Paul Denett, OFPP administrator, said he hopes to receive recommendations from his working group in May. House Small Business Committee Chairwoman Nydia Velazquez accused the Bush administration of “dragging its feet” on anti-bundling moves. “The most critical important issue for small businesses is precisely this one,” she told Denett at a March 6 hearing. “It’s a complex issue,” Denett replied. “We want to make sure we get the right results. We want input from industry [and] from all government agencies.” President Bush promised in a 2002 speech that, wherever possible, his administration would “break down large federal contracts so that small business owners have got a fair shot at federal contracting.” The administration adopted new rules the next year to implement the policy. But small business advocates have complained that bundling continues to take opportunities away from small firms. In 2005 the SBA inspector general found that the agency had been lax in enforcing anti-bundling rules. Current rules require agencies to report bundled contracts to SBA and the Office of Federal Procurement Policy. The IG found many agencies were not doing so, and when they did, SBA reviewed as few as 13% of the bundled contracts. Gains under strategic sourcing Denett said the administration’s strategic sourcing initiative has provided increased opportunities for small firms. He cited 42 strategic sourcing efforts in the Defense Department, which awarded 41% of the dollars to small firms, and $40.7 million in Air Force contracts for medical services, all of which went to small businesses. “We don’t want them doing [strategic sourcing] if the net effect is negative on small businesses,” he testified.