What are Simplified Acquisition Threshold Contracts?


Simplified Acquisition Threshold applies to purchases over $3,000 and under $150,000.  If the purchases under $100,000 require less approval and less documentation involved in the purchase. On April 25, 2012, the Office of Management and Budget for the Executive Office of the President released a follow-up memorandum discussing the requirements in the Small Business Act.  This release restated how agencies are required to set aside work for small businesses due to the Simplified Acquisition Threshold. $150,000 or under requires the Officer to use small business services unless the officer deems the ‘rule of two’ and there are not enough reasonable expectations currently being offered.

The Federal Procurement Data System (fpds.gov) collected data showing a compelling amount of services and products not going directly to small business. These findings have enforced federal procurement officers to hire more small businesses for their service in various markets.   As stated in the Meeting of the Small Business Procurement Group, the Small Business Administration (SBA) will provide each agency with an analysis of its contracts falling under the Simplified Acquisition Threshold (SAT) that have not been awarded to small businesses. Contracts that fal between Simplified Acquisition Threshold will not be heavy regulated and placed on the Federal Awardee Performance and Integrity Information System (FAPIIS).

The SBA expects agencies to monitor their SAT performance and take appropriate actions when missed opportunities to make contract awards small businesses are identified. Federal Procurement Officers that are assigned to recruiting small businesses for federal contracts will look for businesses that are registered and approved.  Every business must be registered in System for Awards Management (SAM) in order to be eligible for federal government contracts.  SAM registration can often take business owners/employees days or even weeks to register and still have their registration rejected.

US Federal Contractor Registration has designed a new enrollment program for businesses to start winning these available simplified Acquisition contracts called the Simplified Acquisition Program.  The Simplified Acquisition Program is a vital solution to becoming successful in the federal marketplace for small businesses looking to compete in the no bid-contracting arena. 

Businesses that wish to learn more about the Simplified Acquisition Threshold, Simplified Acquisition procedures and the new enrollment program can visit http://www.simplifiedacquisitionprogram.org/.



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