micropurchasing | The Contracting Education Academy

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/

One of the first — and even more than two decades later, still one of the most important — changes during the procurement reform era of the 1990s was the introduction of a “micropurchase” authority in the Federal Acquisition Streamlining Act of 1995.

In the background was the desire to allow program customers the ability to use a government credit card to make very small purchases directly, without the significant extra time (think of the purchase order request landing at the bottom of the contracting person’s in-box) and administrative cost that come with working through the contracting office.

An interesting backstory to this statutory change was the role of a young contract specialist at the Department of Health and Human Services named Michelle Craddock in helping develop the administration’s legislative proposal on this. Even before the 1995 law, the government could make purchases under $2,500 without going through a competition. Having just arrived in Washington in 1993 to become administrator of the Office of Federal Procurement Policy, I was tasked with trying to find out if there were any statutory barriers to using a credit card for under-$2,500 purchases. On a learning tour of contracting offices to prepare me for my job as a Washington outsider awaiting Senate confirmation, Craddock was one of the contracting people I met in a visit set up by the HHS senior procurement executive.

Keep reading this article at: https://fcw.com/blogs/lectern/2018/07/kelman-microconsulting.aspx

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.

The rise of the microconsultants

One of the first — and even more than two decades later, still one of the most important — changes during the procurement reform era of the 1990s was the introduction of a “micropurchase” authority in the Federal Acquisition Streamlining Act of 1995.

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