Contract Bundling By Coast Guard Is Approved The Government Accountability Office has ruled that the Coast Guard did not improperly bundle a contract for ship repairs. The Coast Guard issued an RFP consolidating all maintenance and repair work, including dry dock and dockside work, for three cutters based in Alameda, CA. A small business, Nautical Engineering Inc., protested that the contract was improperly bundled since some of the work had previously been done by small firms. NEI said few small firms could bid on the consolidated contract because most of them do not have dry dock facilities. Under the Small Business Act, an exception to the prohibition on bundling exists when agencies can demonstrate that the government would receive “measurably substantial benefits” from the bundling equal to at 10% of the estimated contract value on a contract of this size. The Coast Guard argued that the consolidated contract would result in a cost saving of more than 5%, plus the additional benefit of having the cutters spend less time out of service for repairs. GAO agreed. “We conclude that the Coast Guard reasonably decided that the government will receive measurably substantial benefits that justify bundling of the requirements.” The decision is Matter of: Nautical Engineering, Inc., File: B 309955.