Impact of contract bundling and consolidation on defense acquisition system and defense industrial base: The case of the u.s. department of the navy

Despite Congressional and Presidential emphasis on reducing bundling and consolidation of defense contracts, recent studies cast doubt on whether such practices are problematic for small contractors or the defense acquisition system. Those studies proposed that bundling and consolidation are generally positive tools to procure best value. This paper tests these propositions by examining relevant U.S. Department of the Navy (DON) contracts for Fiscal Year 2010, when Congress reported record bundling and consolidation in U.S. defense contracting. Specifically, the paper looks to performance of Navy and Marine Corps buying commands in meeting small business goals and other good-government objectives such as competition, performance-based acquisitions, preference for commercial suppliers, and support for the U.S. defense industrial base. The paper recommends improvements in targeted good-government practices as measures to reduce bundling and consolidation.