This chapter focuses on simplified acquisition procedures or small purchase procedures that the government uses for purchases that are $150,000 or less. These procedures aim to reduce administrative costs and simplify the purchasing process for small purchases or commercial items. Simplified acquisition procedures account for 90% of the government’s purchase transactions, but only 20% of the total procurement dollars.

The chapter begins by discussing micropurchases, which are purchases that are $3,000 or less ($2,000 for construction). These purchases are typically for routine supplies and services. Micropurchases do not require as much documentation and can be paid more quickly. The government is encouraged to distribute these purchases equitably among qualified suppliers. Micropurchases can be made without soliciting competitive quotes if the price is deemed reasonable. Micropurchases can be made from any type of seller, not just small businesses.

The chapter then discusses simplified acquisition methods for purchases that are between $3,001 and $150,000. These methods include oral solicitation, request for quotation (RFQ), government-wide commercial purchase card (credit card), blanket purchase agreement (BPA), and fast payment procedure.

Oral solicitation is encouraged when the transaction is under the simplified acquisition threshold and helps expedite the purchase. While there is no specific guidance in the Federal Acquisition Regulation (FAR) on this subject, buying offices should have their own policies and procedures for using oral solicitations.

An RFQ is a document used by the government to solicit prices for purchases under the simplified acquisition threshold. It is typically used to obtain price, delivery, or other market information for preparing a purchase order.

The government-wide commercial purchase card, also known as a credit card, is the quickest and simplest way to transact a federal purchase. It is typically used for purchases under the micropurchase threshold. Credit card sales are often referred to as the hidden market because there is no convenient way to find out what local cardholders buy. Sellers can reach out to cardholders using targeted emails, direct sales calls, and brochures.

A blanket purchase agreement (BPA) is a charge account set up with qualified vendors. BPAs provide buying offices with greater flexibility and choice when making purchase decisions. They may be established with multiple vendors or a single vendor. BPAs are typically issued for a one-year period, and the majority of orders placed under a BPA are done orally. Small-business set-aside requirements still apply when making purchases using a BPA.

The fast payment procedure allows a contractor to be paid before the government verifies that supplies have been received and accepted. This improves the contractor’s cash flow by speeding up the payment process. The government can use this procedure for purchases under $30,000, and on a case-by-case basis, for higher dollar amounts.

Overall, this chapter provides an overview of the simplified acquisition procedures or small purchase procedures that the government uses for purchases that are $150,000 or less. These procedures aim to simplify the purchasing process for small purchases or commercial items and reduce administrative costs.

Words: 492