Assignment 2: Simplified Acquisition Procedures

CCAD
BUS 501- Government Acquisition
31 October 2012

Simplified Acquisition
The federal government has three different methods for acquiring goods or services, which include, negotiations, sealed bids, and simplified acquisitions. Simplified acquisition procedures are methods sited in the Federal Acquisition Regulations (FAR) Part 13 for purchasing goods and services under a certain dollar threshold. In October 1994, the FAR established the Federal Acquisition Streamline Act (FASA) as a simplified means for the government to acquire goods and services. Simplified acquisition was created into the government procurement process to streamline the contracting process through the elimination of certain rules and actions, and allowing a relatively low administrative cost associated with procurement and provides the easiest form of federal contracts to small business and disadvantage businesses. Agencies are instructed to use simplified acquisition procedures for all purchases of supplies or services below the threshold of $5 million. Whenever the government seeks to obtain goods or services between the amount of $2,500 and $100,000 the agency can usually set aside these acquisitions for small businesses if there are at least three competitive offers. Simplified acquisition between $2,500 and $25,000 can obtain either an oral or written quotations from businesses in an effort to promote competition. For contracts over $25,000, an oral quotation may not be realistic; therefore the use of electronic commerce would be used. Purchases under $2,500 are considered “micro-purchases” and do not need to go through a formal solicitation process. As long as the contracting official thinks the price is fair a government commercial purchase card (GPC) can be used.

Purchase Orders, Blanket Purchase Agreements, and