micro purchase | The Contracting Education Academy

October 23, 2019 By cs

How GSA plans to capture $6 billion in under-the-radar spending

The General Services Administration (GSA) plans to see if micro-purchasing innovation makes a big difference in agency acquisition.

Each year, federal agencies spend billions of dollars collectively making purchases using their federal government purchase cards or other micro-purchase methods, which receive little notice on a governmentwide scale when compared with higher-value contracts.

GSA is currently looking for a way to change that, by offering an e-marketplace platform that not only allows agencies to more easily search for and make those smaller-cost purchases, but also gives GSA and user agencies better data about how their spending stacks up.

At the beginning of October, GSA released its request for proposals for a proof-of-concept of the program, which will kick off a three-year maximum test to see whether a government-organized e-marketplace is more valuable than agencies simply making these purchases on their own, as they do now.

Keep reading this article at: https://www.federaltimes.com/acquisition/2019/10/18/how-gsa-plans-to-capture-6b-in-under-the-radar-spending/

June 13, 2019 By AMK

Federal online shopping platform coming soon – GSA to issue prototype RFP within the year

In the latest step towards delivering on the long-promised “Procurement Through Commercial e-Commerce Portals” program, the General Services Administration has announced plans to build a proof-of-concept for federal online shopping, aiming to issue an RFP by the end of the year for web-based acquisition platforms.

According to GSA’s notice, the platforms will be based on an “e-marketplace” model — one that connects federal customers to a range of competing vendors, similar to online shopping websites in the private sector. These “e-commerce portals” will carry “routine commercial items found on today’s commercial e-commerce platforms (with office supplies and industrial products being amongst the most common)[.]” Purchases will be limited to the micro-purchase level, which is currently set at $10,000.

The agency expects to award multiple prototype contracts, and it indicated that further proof-of-concept contracts may be needed to test other online purchasing models. These other purchasing models include an “e-commerce model,” under which each portal provider would serve as the seller of goods, and an “e-procurement model,” under which the acquiring agency would manage the platform using software supplied by a contractor to facilitate sales through multiple vendors. On this point, GSA explained that “the one model that best fits GSA’s priorities for an initial proof of concept is the e-marketplace model.”

Keep reading article at: https://www.insidegovernmentcontracts.com/2019/05/federal-online-shopping-platform-coming-soon-gsa-to-issue-prototype-rfp-within-the-year/

September 10, 2018 By AMK

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 AMK

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 AMK

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

The General Services Administration (GSA) plans to see if micro-purchasing innovation makes a big difference in agency acquisition.

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.

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