Harvey-related micro-purchases raised to $20K
Local-area set-asides advised
Hurricane Harvey-related small business contracting efforts are expected to get a boost from the recent increase in the micro-purchase and simplified acquisition thresholds.
The General Services Administration hiked up the amount of federal dollars that could be spent on government charge cards for Harvey-related relief goods or services to $20,000 for civilian and defense agencies, according to a recent GSA memorandum. The limit previously was $3,500, civilian and $5,000, military.
The procurements, referred to as micro-purchases, require less paperwork and generally can be done quickly with few signatures. They tend to be especially beneficial to small business vendors.
The GSA authorized the hikes after Texas and Louisiana were declared major disaster areas due to Harvey. The new thresholds will be in effect through Dec. 31.
Simplified Acquisitions
GSA also raised the Simplified Acquisition threshold to $750,000 for non-commercial items, and $13 million for commercial items, related to Harvey relief.
Currently, the threshold is $150,000 for non-commercial items and up to $7 million for commercial items.
The GSA also is recommending use of preexisting contracts, including multiple-award schedule contracts, many of which are held by small businesses.
Local-area set-asides
By law, the government must give preference to local-area firms--whether large or small--in disaster relief.
GSA is recommending local-area set-asides for that purpose. GSA also recommends small business local-area set-asides “when feasible.”
There also are some reduced requirements for competition in the Harvey-related contracts.
More Information:
GSA memo: https://gsa.gov/portal/getMediaData?mediaId=168826