SAT | The Contracting Education Academy

May 21, 2018 By AMK

GAO clarifies competition standards for simplified acquisitions

A recent GAO decision has shed light on the question of what an agency must do to adequately promote competition during a simplified acquisition.

There is still no bright line for determining which agency actions meet this threshold. However, the recent decision in Bluehorse Corp., B-415641 et al. (Feb. 6, 2018), established that merely inquiring about a solicitation, without taking further action as recommended by the procuring agency, is not enough to force an agency to include a company in a limited competition.

To promote contracting efficiency, the FAR allows for special simplified acquisition procedures to be applied to certain procurements that do not exceed the regulatory threshold. An agency is not required to use the ordinary full and open competition standards to conduct these simplified acquisition procurements. However, what exactly is required of a federal agency under a simplified acquisition procedure has yet to be clearly defined by the applicable provisions of the FAR and the relevant GAO case law. The FAR requires the agency to “promote competition to the maximum extent practicable” and establishes that this standard can generally be met through the solicitation of at least three sources. See FAR § 13.104.

Keep reading this article at: http://smallgovcon.com/gaobidprotests/gao-clarifies-competition-standards-for-simplified-acquisitions/

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

October 1, 2015 By AMK

Reminder: Selected federal acquisition thresholds change today

As we first informed you on July 8, some of the Federal Acquisition Regulation (FAR) dollar thresholds change effective October 1, 2015.

The inflationary adjustments to the thresholds are summarized below, inluding references to the applicable FAR parts:

The micro-purchase threshold of $3,000 increases to $3,500 (FAR 2.101).
The threshold for use of simplified acquisition procedures for acquisition of commercial items increases from $6.5 million to $7 million (FAR 13.500).
The cost or pricing data threshold (FAR 15.403-4) and the Cost Accounting Standards threshold (FAR 30.201-4 and FAR clause 52.230-5) increases from $700,000 to $750,000.
The prime contractor subcontracting plan floor increases from $650,000 to $700,000. The subcontracting plan threshold for construction contracts remains the same at $1.5 million (FAR 19.702).
The threshold for reporting first-tier subcontract information, including executive compensation, increases from $25,000 to $30,000 (FAR Subpart 4.14 and FAR clause 52.204-10).
The threshold for including the clause requiring contractors to provide equal employment opportunities to veterans increases from $100,000 to $150,000 (FAR 22.1303 and FAR clause 52.222-35).
The threshold requiring contractors to flowdown the clause regarding a contractor’s Code of Business Ethics and Conduct increases from $5 million to $5.5 million (FAR clause 52.203-15).
The threshold restricting subcontracts with a contractor that has been debarred, suspended, or proposed for debarment increases from $30,000 to $35,000 (FAR 9.409 and FAR clause 52.209-6).

Other FAR-prescribed dollar thresholds do not change at this time. For instance, the simplified acquisition threshold of $150,000 (FAR 2.101) remains unchanged, and FedBizOpps preaward and postaward notices (FAR Parts 5.101 and 5.301) remain at $25,000..

July 8, 2015 By AMK

Federal acquisition thresholds to change Oct. 1st

Changes will occur in various federal acquisition dollar thresholds effective Oct. 1, 2015.

An acquisition-related dollar threshold is a dollar threshold that is specified in law as a factor in defining the scope of the applicability of a policy, procedure, requirement, or restriction provided in that law to the procurement of supplies or services by an executive agency, as determined by the Federal Acquisition Regulation (FAR) Council.

As set forth in Federal Register – Vol. 80 No. 127 – July 2, 2015 (pages 38293 through 38296), the Federal Acquisition Regulation (FAR) will be amended to change:

The micro-purchase base threshold from $3,000 (FAR 2.101) to $3,500.
The threshold for use of simplified acquisition procedures for acquisition of commercial items (FAR 13.500) from $6.5 million to $7 million.
The cost or pricing data threshold (FAR 15.403-4) and the statutorily equivalent Cost Accounting Standard threshold from $700,000 to $750,000.
The prime contractor subcontracting plan (FAR 19.702) floor from $650,000 to $700,000 (The construction threshold of $1,500,000 will remain unchanged.)
The threshold for reporting first-tier subcontract information including executive compensation from $25,000 to $30,000 (FAR subpart 4.14 and section 52.204-10).

Other FAR-prescribed thresholds will not change. The simplified acquisition threshold (FAR 2.101) of $150,000 will remain unchanged, and FedBizOpps pre-award and post-award notices (FAR part 5) will remain at $25,000 because of trade agreements.

If an acquisition-related threshold is based on statute, the matrix at http:// www.regulations.gov (search FAR case 2008–024) identifies the statute, and the statutory threshold. If inflation adjustment is warranted, calculations are rounded in accordance with the table shown above. — If an acquisition-related threshold is
based on statute, the matrix at http://
www.regulations.gov (search FAR case
2008–024) identifies the statute, and the
statutory threshold. Inflation calculations are rounded in accordance with the table shown above.

May 11, 2015 By AMK

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.

If 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/

A recent GAO decision has shed light on the question of what an agency must do to adequately promote competition during a simplified acquisition.

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.

As we first informed you on July 8, some of the Federal Acquisition Regulation (FAR) dollar thresholds change effective October 1, 2015.

Changes will occur in various federal acquisition dollar thresholds effective Oct. 1, 2015.

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