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Higher limits on micropurchase, simplified acquisition thresholds okayed by CAAC

The Civilian Agency Acquisition Council (CAAC) has authorized federal agencies to issue class deviations from the Federal Acquisition Regulation (FAR) to raise the dollar thresholds on micropurchases and simplified acquisitions.

The higher thresholds are $10,000 for micropurchases (up from $3,500) and $250,000 for simplified acquisitions (up from $150,000).   Authority for these changes stems from the 2018 National Defense Authorization Act (NDAA).

The CAAC’s memorandum can be downloaded here: Class Deviation – Micropurchase and Simplified Acquisition Threshold – CAAC Letter 02.16.2018

The CAAC memorandum “is effective immediately, and remains in effect until the increased thresholds are incorporated into the FAR or is otherwise rescinded.”  The FAR Council has opened FAR Case 2018-004 to address what the 2018 NDAA has to say about these thresholds, and the CAAC memo authorizes civilian agencies to adopt their own class deviations while the FAR Case is pending.

CAAC members are senior procurement professionals within 15 departments and agencies:

  • Department of Agriculture
  • Department of Commerce
  • Department of Energy
  • Department of Health and Human Services
  • Department of Homeland Security
  • Department of the Interior
  • Department of Labor
  • Department of State
  • Department of Transportation
  • Department of Treasury
  • Department of Veterans Affairs
  • Environmental Protection Agency
  • General Services Administration
  • Small Business Administration
  • Social Security Administration

The Council is responsible for: Assisting the General Services Administration in developing and maintaining the FAR System by developing or reviewing changes to the FAR; Soliciting the views of agencies, associations, and other interested parties on those proposed changes to the FAR; and Coordinating its activities with the Defense Acquisition Regulations Council (DARC).

GSA, itself, has already issued a class deviation raising the micropurchase and simplified acquisition thresholds on GSA contracts.  It can be seen here: GSA Class Deviation 2018-01 MPT and SAT Increase

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How to fight big contract bloat

Have you ever hired a management consultant and said, “We have this problem and just want to know what we should to do next”?

Maybe your employees are unhappy, your systems are vulnerable, or you’re drowning in data. Maybe you’re struggling to get agreement among the managers about the best path forward. In theory, an experienced, objective third-party such as a management consultant can help. Right?

But when the consultants show up, you are left with one of two reactions: “That was a complete waste of money” or “We couldn’t have done it without them.”

Those leaning toward the “complete waste of money” end of the spectrum might say things like, “They told us what we already know.” This simple statement frames the problem with management consultants.

Too often, the work consultants are assigned is too broad in scope to be reasonably focused on and completed. They do hours of research, interviews and analysis only to deliver recommendations that underwhelm federal managers instead of sparking action.

Keep reading this article at: https://federalnewsradio.com/commentary-analysis/2017/11/how-to-fight-big-contract-bloat/

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GSA relaxes rules to speed contracting for hurricane relief efforts

Eight days after addressing Hurricane Harvey in Texas, the General Services Administration on Thursday pivoted to the Irma storm aimed at Florida, relaxing certain contracting rules to encourage speed and local awards.

Senior Procurement Executive Jeffrey Koses signed a “memorandum raising thresholds for areas included in the Irma declaration response,” a GSA spokeswoman told Government Executive. The Irma memorandum follows an Aug. 29 directive issued in anticipation of rebuilding in the aftermath of the Houston-area flooding from Harvey.

The Harvey memo cited sections of the Federal Acquisition Regulation allowing GSA to raise the micropurchase threshold to $20,000 for any contract to be awarded and performed, or purchase to be made in support of the designated disaster areas. “The simplified acquisition threshold is increased to $750,000, or $13,000,000 for commercial items,” the memo to GSA contracting professionals said. The authority extends to any necessary leasing of property.

Keep reading this article at: http://www.govexec.com/contracting/2017/09/gsa-relaxes-rules-speed-contracting-hurricane-relief-efforts/140856/

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Micro-purchase and simplified acquisition thresholds raised for Hurricane Harvey response

The General Services Administration (GSA) has issued a directive allowing federal agencies engaged in emergency relief activities to raise dollar thresholds at which streamlined procurement rules can be used.

Under GSA’s temporary rules, the micro-purchase threshold is raised from $3,500 to $20,000.  (In a recent Class Deviation, the Dept. of Defense raised its standard micro-purchase threshold to $5,000.)  In addition, GSA raised the simplified acquisition threshold from $150,000 to $750,000 for non-commercial items and from $6.5-$7.0 million to $13 million for commercial items.

With micro-purchases the federal agencies can bypass many of the ordinary competitive requirements under the Federal Acquisition Regulation (FAR).   For instances, holders of Governmentwide purchase cards (GPC) can make contract awards without soliciting competitive quotations if they consider prices to be fair and reasonable.  Micro-purchases do not require provisions or clauses.  The FAR’s detailed rules on micro-purchases are set forth primarily in FAR 13.2.

FAR Part 13 governs purchasing below the simplified acquisition threshold.  It sets forth shorter terms and conditions, especially in the areas of reporting requirements and subcontracting. Simplified acquisition transactions above the micro-purchase threshold are reserved for small businesses.

The threshold increases will remain in effect until December 31, 2017.

GSA’s new guidance is tied to the Presidential declaration of Hurricane Harvey as a “major disaster.”   Meeting the legal definition of “emergency” in GSA’s FAR Class Deviation entitled Exercise of Special Emergency Procurement Authorities means that the emergency acquisition flexibilities listed in FAR 18.2 are available for use, along with the existing acquisition flexibilities enumerated in FAR 18.1.

Agency contracting officers are required to give preference to local firms in the disaster area in accordance with the Stafford Act, implemented at FAR 26.2.  GSA notes that contracting officers should first consider small business local area set-asides when feasible.

GSA’s Aug. 29, 2017 memorandum entitled “Relief Efforts for Hurricane Harvey” is at: https://gsa.gov/portal/getMediaData?mediaId=168826

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8 trends to keep ahead of in federal contracting

The Trump administration has most of Washington on the edge of their seats waiting to see what comes next, and federal contracting is no different.

“Everyone knows the federal market is driven by budgets, and budgets are driven by the presidential budget request,” Kevin Brancato, director of government contracts research at Bloomberg Government, said in an April 27, 2017 webinar. “What I would advise federal contractors to look at is agency priorities and see where they align with the president’s priorities … and you’ll likely see those agencies is where the money will be spent.”

But he said that all the budget really changes is which agencies spend the money, not so much how they spend it. That’s why he said he expects to see these eight trends continue into 2018: Category Management, Shared Services, Compliance Standards, First Time Vendors, “Other” Transactions, Cybersecurity, Simplified Procedures, and Trump’s Tweets.

Keep reading this article at: https://federalnewsradio.com/acquisition/2017/04/8-trends-to-keep-ahead-of-in-federal-contracting/

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