Consolidation Rule Set for DOD Contracts The Defense Department requires written justification of any consolidated contract worth more than $5 million under an interim rule effective Sept. 17. The rule implements a provision of the 2004 Defense Authorization Act. Contracting officers are required to conduct market research to justify a consolidated contract, and a defense agency’s senior procurement official must certify that benefits of the consolidation, whether in cost savings or efficiency, “substantially exceed” any other method of procurement. The rule also applies to task and delivery orders under GSA schedules and other multiple award contracts. The Federal Register notice said, “DoD considers the restrictions on consolidation of contract requirements to be separate and distinct from the restrictions on contract bundling specified in the Federal Acquisition Regulation.” A rule adopted last year requires justification of DOD’s bundled contracts over $7 million. The distinction is that the law defines a bundled contract as a combination of two or more contracts that is unsuitable for small businesses. A consolidated contract is any combination of two or more contracts. The interim rule is DFARS Case 2003-D109. Comments are due by Nov. 16.