Micro Purchase | The Contracting Education Academy

September 10, 2018 By cs

DoD’s micropurchase threshold just increased to $10,000

The Department of Defense has issued a class deviation raising the micro-purchase threshold to $10,000, effective immediately.

The increase implements Section 821 of the 2019 National Defense Authorization Act, which was signed into law last month.

The memo explains that there are a few exceptions to the standard $10,000 threshold.

Keep reading this article at: http://smallgovcon.com/statutes-and-regulations/dod-increases-micro-purchase-threshold-to-10000-effective-immediately/

To see a handy table of current purchasing thresholds, click here: Purchasing Thresholds – September 2018

September 11, 2017 By cs

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/

September 5, 2017 By cs

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

August 18, 2017 By cs

DoD acquisition proposals reduce burden, heighten transparency concerns

The Defense Department is prompting Congress to take action on a handful of acquisition issues, mostly aimed at reducing regulations on the system, but some fear the proposals may harm government transparency as well.

DoD has been on a crusade to streamline and unburden the defense acquisition since 2010, when it released its first version of Better Buying Power.

Now that James Mattis has taken over as defense secretary, DoD is doubling down on bettering its business operations and making its processes leaner.

The newest legislative proposals to Congress reflect that philosophy.

Keep reading this article at: https://federalnewsradio.com/defense/2017/07/dod-acquisition-proposals-reduce-burden-heighten-transparency-concerns/

July 27, 2017 By cs

DoD raises micro-purchase threshold to $5,000

The Department of Defense (DoD) has issued a class deviation that raises the micro-purchase threshold from $3,500 to $5,000.

Class Deviation 2017-O0006, issued July 13, 2017 and effective immediately, allows authorized DoD buyers to make purchases of supplies and services up to $5,000 using streamlined procedures. Micro-purchases are primarily made through the use of Governmentwide purchase cards (GPC).

According to FAR 13,203, micro-purchases may be awarded without soliciting competitive quotations if the contracting officer or other authorized official considers the price to be reasonable.

The class deviation also raised the micro-purchase threshold to $10,000 for DoD’s basic research programs and for activities of DoD’s science and technology reinvention laboratories.

It is expected that these new purchasing thresholds will be incorporated into the Defense Federal Acquisition Regulation (DFARS) in the near future.

The Department of Defense has issued a class deviation raising the micro-purchase threshold to $10,000, effective immediately.

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.

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.

The Defense Department is prompting Congress to take action on a handful of acquisition issues, mostly aimed at reducing regulations on the system, but some fear the proposals may harm government transparency as well.

The Department of Defense (DoD) has issued a class deviation that raises the micro-purchase threshold from $3,500 to $5,000.

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