Eased terms for contractors

SAP, micropurchase thresholds raised; SAM renewal grace period

      To facilitate federal contracting during the COVID-19 national emergency, the Office of Management and Budget on March 20 told federal agencies to loosen rules, extend deadlines and raise the maximum dollar amount for micropurchases and Simplified Acquisition Procedure buys, among other actions.

      Margaret M. Weichert, deputy director for management at OMB, issued the memo offering guidance to agencies on how to address contract performance issues during the pandemic.

      The agencies are encouraged to use emergency-related flexibilities, including:

• Micropurchase threshold is raised to $20,000, up from $10,000 for domestic items; raised to $30,000 for non-domestic;
• Simplified Acquisition Threshold raised to $750,000, up from $250,000, for domestic purchases; up to $1.5 million for non-domestic;
• Simplified Acquisition Procedures up to $13 million in commercial buys; and
• Current registrants in SAM.gov with active registrations expiring before May 17, 2020 will be allowed a one-time extension of 60 days

      Telework and performance delays should be addressed on a case by case basis, OMB says. The guidance memo provides FAQs and examples regarding common situations.

      Agencies are advised “to evaluate and maximize telework for contractor employees, wherever possible.”

      Also, agencies are asked to be flexible in extending deadlines if telework is not possible, “or if a contractor is unable to perform in a timely manner due to quarantining, social distancing, or other COVID-19 related interruptions.”

More information:
OMB guidance: https://www.whitehouse.gov/wp-content/uploads/2020/03/M-20-18.pdf

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