YouTube Tuesday: Simplified Acquisition & Micropurchase Threshold Increase

Recent changes to the FAR increased the simplified acquisition and micropurchase thresholds! For change highlights, check out my video:

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FAR Final Rule: Increased Micro-Purchase and Simplified Acquisition Thresholds

The Federal Acquisition Regulation has officially been updated to increase the micro-purchase threshold and the simplified acquisition threshold, effective August 31, 2020. Various federal agencies had already increased the thresholds through deviations, but this rule makes it official across the board. A few additional thresholds will increase due to inflation.

Read on for the details on how this could impact federal procurement.

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Raising the Roofs . . . and Floors: Acquisition Thresholds in the Time of Emergency

As many contractors have heard, the President declared a state of emergency under the Stafford Act. What will this mean for acquisitions conducted while the COVID-19 emergency continues?

In this post, I’ll dig into some contractor-specific effects of that declaration: modifying the micro-purchase, simplified acquisition, and commercial purchase acquisition thresholds.

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GovCon Basics: Common Procurement Methods and Terminology

The acronyms and terminology used in federal government contracting can be a labyrinth–one sadly devoid of David Bowie. In this post, we’ll clarify some of the common methods used for government procurements, the regulations defining them, and the terminology associated with them.

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FAR Update: Simplified Acquisition Threshold and Micro-Purchase Threshold are Going Up

The Simplified Acquisition Threshold and Micro-Purchase Threshold are officially increasing under the FAR. While various agencies had already increased the thresholds through deviations, this change will officially update the rules in the FAR.

Although this may seem like a minor update, it will cause changes across the federal contracting landscape and will result in more contracts being issued under the Micro-Purchase and Simplified Acquisition Thresholds.

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DoD Proposes Updating DFARS With 15-Day “Prompt Payment” Rules

The Department of Defense awarded contracts to an average 30,806 small businesses each year in fiscal year 2016, 2017, and 2018. A proposed rule to update the DFARS may lead to these same businesses receiving payments from the government, or prime contractors, within 15 days of invoicing.

The proposed rule is found at 84 FR 25225. It was published on May 31, 2019 and comments close on July 30, 2019 if you’d like to put in your two cents.

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Small Business Set-Asides Not Required Under NETCENTS-2, Says GAO

The Air Force’s large NETCENTS-2 IDIQ vehicle did not require orders to be set-aside under the small business pool, except for orders valued between the micro-purchase threshold and simplified acquisition threshold.

In a recent decision, the GAO held that although the NETCENTS-2 contract in question says that Contracting Officers “should” perform a “rule of two” small business set-aside analysis for orders valued over the simplified acquisition threshold, it does not require that such an analysis be performed–meaning that Contracting Officers can validly award such orders to large businesses, even if two or more small business NETCENTS-2 holders exist.

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