Senate Backs Anti-Bundling Amendment The Senate set new requirements for reviewing bundled contracts in the Defense Department when it passed the Defense Authorization bill May 22. The House version of the bill includes provisions of the Services Acquisition Reform Act that would streamline rules for services contracts. The House bill would also restrict competitive sourcing. (See story, page 3.) Those and other differences between the two bills will be settled in a conference committee. The Senate amendment would require DOD to review and justify any consolidated contract worth more than $5 million. Pending rule changes to implement the Bush administration’s anti-bundling strategy would set the threshold at $7 million. “The proliferation of contract bundling, especially at the Department of Defense, has dramatically reduced the government’s contractor base,” said the amendment’s sponsor, Sen. Susan Collins (R-ME), chairwoman of the Governmental Affairs Committee. “It’s a losing situation for everyone — for small businesses, for the government and, ultimately, for the taxpayers.” “Bundling is choking small business,” added Sen. Jim Talent (R-MO), a cosponsor. Rep. Tom Davis (R-VA), sponsor of the Services Acquisition Reform Act, attached it to the House version of the $400.5 billion Defense Authorization. SARA would expand the definition of “commercial items,” making it easier for agencies to buy services through simplified procedures. It would encourage the use of performance-based contracts and would allow the use of time and material and labor-hour contracts for services. The House bill also increases the amount of U.S. content required in major DOD purchases through the Buy American Act from 50% to 65%. It requires defense contractors to use American-made machine tools, dies and industrial molds for major weapons acquisitions. Both amendments were backed by Small Business Committee Chairman Donald Manzullo (R-IL). The most controversial provisions of the House bill would overhaul the Defense Department’s personnel system, giving the secretary broad authority to hire and fire civilian employees and to contract out work. The Senate version does not include the personnel provisions. The Senate bill, S. 1047, passed on a 98 to 1 vote. The House voted 361 to 68 to approve its bill, H.R. 1588.