Micro-purchases Account for 70% of all U.S. Procurement Purchases: Simplified Acquisition Program


Did you know that out of the 30 million businesses in America, only a little over 500,000 are actually registered to accept government contracts. That mean 1.6% of all American businesses are registered in System for Award Management and can work for the government.  An even scarier truth is that out of that 500,000 businesses registered in SAM, only a 3/4 are registered properly without errors and mistakes.  Once a business becomes properly registered and begins a government marketing campaign they will have the opportunity to witness all of the available contracts in the federal marketplace.

There are several types of purchasing types such as simplified acquisition contracts, sealed bidding, contracting by negotiation and even consolidated purchasing vehicles.  However, the fastest purchasing option, as well as the smallest is called Micro-purchases. These types of purchases range from $1 to $3,000. Procurement officers can make these types of purchases using a credit card, federal SMART Pay card or even with cash. According to the U.S. Small Business Administration (SBA), 70% of all government procurement transactions are for micro-purchases under $3,000 and are conducted using a credit card.  In fact, in fiscal 2010, $19 billion alone was spent in micro-purchases.

Simplified Acquisition contracts are very similar to micro-purchases, however simplified acquisition contracts are much larger and have a threshold between $2,500.00 and $150,000.00 and commercial item purchases between $2,500.00 and $5,000,000.  Making real connects with procurement officers to win micro-purchases and simplified acquisition contracts are all done though marketing.

The most valued government marketing solution for small business government contractor is the Simplified Acquisition Program.  The program is designed to win these types of contracts by registering in SAM and other databases, networking with procurement officers, creating a federally formatted website, and establishing brand awareness in the federal marketplace.

Businesses that would like to learn more about the Simplified Acquisition Program in greater detail can visit http://www.simplifiedacquisitionprogram.org/.

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