Simplified Acquisition Procedures
Simplified acquisition procedures help businesses sell to the federal government by easing the bureaucratic red tape inherent in contracting. These procedures create a win-win arrangement for both business and government. They allow businesses to improve their opportunities to obtain government contracts while reducing administration costs, promoting efficiencies within the contracting process, and alleviating unnecessary burdens for government.
Small businesses reap the greatest benefit from simplified acquisition procedures. All solicitations ranging form $2,501 to $100,000 are automatically set-aside for small businesses and come under these regulations. The only exception to these regulations is if a contracting officer cannot find adequate competition from at least two small businesses. At that point, large businesses are allowed to bid on that particular solicitation. The Federal Streamlining Act of 1994 increased the simplified acquisition threshold from $25,000 to $100,000.
Goods and services obtained under simplified acquisition procedures are generally bought in one of three ways, the Government Purchase Card (GPC), Purchase Orders (PO), and Blanket Purchase Agreements (BPA). A contracting officer selects a method depending on the type of goods or services that are bought as well as on the price and the frequency of the buying action.
From $0 to $2,500 purchases ("micropurchases") do not require competition and are open to any size business. Most of the purchases in this category are made by non-contracting personnel with a GPC. This arrangement allows relatively inexpensive items to be procured quickly and efficiently. Card holders are supposed to ensure the reasonableness of the price and rotate their buying between vendors.
On transactions from $2,501 to $10,000, the contracting officer may make an award without issuing a formal Request for Quote (RFQ). However, the contracting officer must obtain oral quotes from at least three small businesses before an award can be made.
Transactions ranging from $10,001 to $25,000 require oral quotes. However, if it is not possible to obtain these required quotes, a RFQ must be posted to a bid board for at least ten days. Following the required ten days, a contract can be awarded.
On projects ranging from $25,001 to $100,000, all solicitations must be posted to a government Internet site (http://www.fedbizopps.gov). This allows small businesses to easily see opportunities available across the federal government and eliminates the need to check on numerous agency web sites. This one-stop shopping allows both business and government to reduce burden and decrease the time needed to obtain supplies and services.
If you want to learn more about simplified acquisition procedures, you may
visit http://farsite.hill.af.mil/reghtml/regs/far2afmcfars/fardfars/far/13.htm
for details on the Federal Acquisition Regulation (FAR) Part 13, or contact
your nearest PTAC counselor.