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Section 5407.170-3: Policy and procedures.

(a)(1) See 10.001(a)(2)(iv) for a discussion of market research as it pertains to the consolidation of contract requirements.

(a)(3) The determination by the senior procurement executive that a consolidation is necessary and justified will not be delegated.

(a)(3)(i) Although benefits of consolidation may include non-quantifiable, as well as quantifiable, components, any benefits analysis should involve quantification to the maximum extent possible, in order to demonstrate substantiality of the benefits claimed. The DOD Benefit Analysis Guidebook, located at http://www.acq.osd.mil/sadbu/news/contractconsolidation.pdf, which can be accessed from the DLA Regulatory Homepage, may be useful in this regard, since, as a practical matter, the consolidation benefits analysis ought to follow the same guidelines, and result in the same kinds of benefits identified, as for bundling. As a rule of thumb, versus a hard-and-fast requirement, a showing of “substantial benefit” should be approximately 10% of the contract value, including quantifiable and non-quantifiable benefits (which is the amount specified for substantial savings for acquisitions valued up to $75M in the bundling legislation and coverage).

(ii) See 7.102(94) for the proper use of BCAs in the documentation of benefits of consolidation.




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