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Simplified acquisition threshold to $500,000? House proposes huge increase

The simplified acquisition threshold would increase to $500,000 under the version of the 2016 National Defense Authorization Act currently before the U.S. House of Representatives.

SAT - May 2015If the House proposal ultimately becomes law, the simplified acquisition threshold would more than triple from its current $150,00 level.  Such a dramatic increase in the simplified acquisition threshold could affect nearly all federal contractors – especially small businesses.

Under federal statute, the simplified acquisition threshold (SAT) is set at $100,000.  However, the law also requires an adjustment for inflation every five years.  Because of the inflation review, the FAR was adjusted in 2010 to raise the threshold to $150,000, where it remains today.

Section 854 of the proposed 2016 NDAA would strike the $100,000 statutory threshold and replace it with a $500,000 threshold.  The revised threshold would still be subject to inflation-based adjustments.  Additionally, the proposed 2016 NDAA would increase the micro-purchase threshold from $3,000 to $5,000.

Keep reading this article at: http://smallgovcon.com/statutes-and-regulations/simplified-acquisition-threshold-to-500000-house-proposes-huge-increase/

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White House urges agencies to remember small businesses for micro purchases

Continuing its push to support small businesses, the White House is reminding agency financial and acquisition officers not to forget small firms when they make credit card micro purchases of $3,000 or less, which are not affected by larger scale required set-asides.

A Dec. 19 letter from Dan Gordon, the departing administrator of the Office of Federal Procurement Policy, and Danny Werfel, controller, said the Office of Management and Budget and the Small Business Administration are “working with agencies to improve access by small businesses to the federal marketplace and to increase communications to small businesses about federal business opportunities.” Agency purchase cardholders “should consider small businesses, to the maximum extent practicable, when making micro purchases.”

According to a private study required by Congress, agencies used the General Services Administration’s SmartPay® purchase cards in fiscal 2010 for $6 billion in transactions with small businesses at or below the micro purchase threshold. This amounts to about 30 percent of the total annual government purchase card spending, the letter stated.

The White House asked agencies within six months to “adjust cardholder training as needed to help ensure cardholders continue to place a reasonable proportion of micro purchases with small businesses, consistent with agency mission support needs.”

— by Charles S. Clark – Government Exercutive – December 22, 2011 – http://www.govexec.com/story_page.cfm?articleid=49632&dcn=e_gvet

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