NFIB strongly supports efforts to stop contract bundling, the practice of combining several smaller federal projects into one large package, too large for a small business to handle.
- Preventing federal agencies from bundling contracts would create greater competition and opportunity for small businesses to tap into the government contract market.
- Since the federal government is the largest buyer of goods and services in the United States, it is unfair for small business to be pushed out of bidding through contract bundling.
- Bundling reduces the quality of work on federal projects because it edges out small contractors who could do more work at a higher quality for less money.
- In the past, pieces of federal projects provided steady work for small firms. But an increase in bundling means only small companies that have a standing subcontractor relationship with government contract giants enjoy steady federal contract work.
- Small businesses employ over half of all private-sector workers, generating more than half of the private-sector output and more than two-thirds of net new jobs. However, small businesses received only 23 percent of all federal prime contract dollars in fiscal year 2004. Small businesses were awarded $69 billion in prime contracts in and $50 billion from subcontracts in 2004.
- The president's small-business plan, announced in March 2002, seeks to improve small-business access to government contracts by avoiding unnecessary contract bundling, streamlining the contract appeals process, and ensuring that contracts are open to all businesses.
