FAR 7.107—Additional requirements for acquisitions involving consolidation, bundling, or substantial bundling.

General.

FAR 7.107-1 is the gateway provision for the federal consolidation-and-bundling rules. It explains when the rest of FAR 7.107 applies, how to treat requirements that are both consolidated and bundled, and when the section’s requirements are carved out entirely. In practice, it tells agencies whether they must follow the bundling procedures in FAR 7.107-3, 7.107-4, and 7.107-5, and it identifies three major exceptions: acquisitions subject to an OMB Circular A-76 cost comparison, certain orders under single-agency task-order or delivery-order contracts, and requirements satisfied by mandatory sources under FAR 8.002 or 8.003. It also clarifies important limits on the mandatory-source exception, including when a waiver or exception applies and when optional acquisitions under FAR 8.713 are involved. For contracting officers and acquisition planners, this section matters because it determines whether they must document, justify, and process a requirement as a consolidation/bundling action or whether the requirement falls outside FAR 7.107 altogether.

Consolidation.

FAR 7.107-2 addresses when and how the Government may consolidate requirements into a single acquisition, and it is designed to balance efficiency against the risk of reducing small business participation. This section covers the threshold for special review when the estimated total dollar value of a consolidated acquisition exceeds $2 million, the requirement for a written determination by the senior procurement executive (SPE) or chief acquisition officer (CAO), and the findings that must be made before consolidation can proceed. It explains the required market research, identification of less-consolidated alternatives, coordination with the agency’s small business office, assessment of negative impacts on small business, and steps to include small business concerns in the strategy. It also defines what counts as a “necessary and justified” consolidation, including the types of benefits that may support the decision, how to measure substantial benefits, and when non-quantifiable benefits may be considered. The section further sets special approval authority for cases where benefits do not meet the normal threshold but are critical to mission success and the strategy maximizes small business participation. In practice, this rule is a documentation and justification gate: agencies must show they considered small business impacts and alternative approaches before combining requirements, and contractors should expect consolidation decisions to be supported by a formal record that may be reviewed by SBA.

Bundling.

FAR 7.107-3 explains when and how an agency may justify bundling a requirement despite the effect on small business participation. It covers the core standard for a written determination that bundling is necessary and justified, the requirement to quantify and document benefits using market research and other techniques, the types of benefits that can count (such as cost savings, price reduction, quality improvements, shorter acquisition cycles, and better terms and conditions), and the specific monetary thresholds for what counts as a “measurably substantial” benefit. It also addresses the special rule that administrative or personnel cost reductions alone are not enough unless they reach the stated savings threshold, and it creates a narrow exception allowing approval even when the thresholds are not met if the benefits are critical to mission success and small business participation is maximized. The section further identifies who has approval authority for that exception, how agencies and SBA should assess cost savings or price reductions, and the requirement to include the bundling determination in acquisition strategy documentation and provide it to SBA on request. In practice, this rule is a safeguard: it allows bundling when it truly improves mission performance or value, but forces agencies to build a strong, quantified record showing why the loss of small business opportunities is justified.

Substantial bundling.

FAR 7.107-4 defines when bundling becomes "substantial bundling" and adds extra planning and documentation requirements for the acquisition strategy. It covers the dollar thresholds that trigger the label, how those thresholds are measured for multiple-award contracts and task or delivery orders, and the specific analysis an agency must include when substantial bundling is proposed. In practice, this section is meant to force agencies to justify large bundled acquisitions, show why the expected benefits outweigh the harm to small business participation, and document efforts to reduce the bundle or mitigate its effects. It works together with the general bundling requirements in FAR 7.107-3, but goes further by requiring a more detailed record of benefits, small business impacts, teaming opportunities, subcontracting opportunities, the justification for the bundled approach, and consideration of alternatives. For contractors, this section matters because it can shape the structure of the solicitation, the size and scope of the requirement, and the opportunities available to small businesses as prime contractors or subcontractors.

Notifications.

FAR 7.107-5 sets out the notice requirements that apply when an agency bundles, consolidates, or substantially bundles contract requirements. It covers advance notice to current small business contractors, optional public notice of the rationale for bundling, mandatory public notices for consolidation and substantial bundling, special notice to SBA for follow-on bundled or consolidated requirements, annual public posting of bundled requirements and their rationale, and publication of the agency’s bundling policy. In practice, this section is designed to increase transparency, give small businesses and SBA an opportunity to respond before a procurement is bundled, and ensure agencies document and publicly explain why combining requirements is justified. It also creates timing rules that can affect when a solicitation may be issued, so contracting officers must coordinate carefully with requiring activities, SBA, and public posting requirements. For contractors, these notices can provide early warning of a bundled procurement and a chance to raise concerns or seek small business participation opportunities. For agencies, the section is both a compliance requirement and a recordkeeping obligation tied to acquisition strategy, contract file documentation, and public accountability.

Solicitation provision.

FAR 7.107-6 tells contracting officers when they must include the solicitation provision at 52.207-6, Solicitation of Offers from Small Business Concerns and Small Business Teaming Arrangements or Joint Ventures (Multiple-Award Contracts). The section is narrowly focused on one trigger: solicitations for multiple-award contracts that are above the agency’s substantial bundling threshold, as referenced in FAR 7.107-4(a). Its purpose is to make sure small business concerns, including small business teaming arrangements and joint ventures, are specifically invited to compete for these larger multiple-award opportunities. In practice, this requirement is part of the government’s broader effort to preserve small business participation even when requirements are consolidated or bundled into larger acquisitions. For contracting officers, it means the provision is not optional when the threshold condition is met; for offerors, it signals that the solicitation should address small business participation opportunities in a multiple-award setting.