To all small, small disadvantaged, women-owned small, and HUBZone small businesses, the US General Services Adminsitration offers contracting opportunities that are second to none.  As the Government's chief acquisition agency, GSA spends billions of dollars annually on products and services and also helps Federal agencies purchase them directly from vendors. Because they and leverage so much and use taxpayer dollars, GSA has a special responsibility to obtain the best quality and value possible for money spent.

GSA awards a fair share of its contracts to small businesses. This is its goal and its promise. This is not only the right thing to do; it is also good for our Nation’s economic growth, since small businesses generate the majority of new jobs and contribute so much to the Nation’s economy.


What Is a Simplified GSA Acquisition?

The term "simplified acquisition" has replaced "small purchase,"
and the threshold has been increased to $100,000. The Federal Acquisition Regulation (FAR) permits the use of simplified acquisition procedures up to $5 million for commercial item acquisitions. Those simplified acquisitions, which range in value between $2,500 and $100,000 are usually reserved exclusively for small businesses.

For small businesses interested in purchases under
$100,000, many procurement opportunities exist, minus
the red tape. Each year, the Federal Government buys billions
of dollars worth of products and services using simplified
acquisition procedures. GSA purchases account for
hundreds of millions of dollars of that total.

Simplified acquisition procedures may be used for the purchase
of products, services, or construction. Making and
paying for purchases can be accomplished with purchase
orders, cash, a Governmentwide commercial purchase card,
or blanket purchase agreements.

Price and other information for simplified acquisitions are
obtained through "quotations." Quotations, unlike bids or
offers, are not binding on the firm submitting them, and a
binding contract is formed only when the vendor accepts
the Government’s order.

Of course, not all purchases under $100,000 are simplified
acquisitions. GSA sometimes uses sealed bidding or negotiation
procedures on procurements under the simplified acquisition threshold. If you receive a solicitation for a requirement under $100,000, read the first page to see if the solicitation is a request for quotations or for bids or offers. Unlike quotations, any bids or
offers you submit are binding on your firm.


Simplified Acquisitions Reserved for Small Businesses

Most simplified acquisitions are reserved for small businesses
and are awarded under a procedure called "set-asides for
small businesses."

Your company may qualify as a small business if it is independently owned and operated, is not dominant in its field,
and qualifies under size and other criteria. You may find the
criteria in the Code of Federal Regulations (CFR), Title 13,
Part 121, as amended.


Where GSA Makes Purchases

In most purchases using simplified procedures, GSA buys
from small businesses located close to where the product or
service is needed. Depending on the product or service and
which GSA organization is involved, actual contracting may
be performed by a local, regional, or central GSA office.

For example:

• GSA’s Public Buildings Service (PBS) procures buildings
services through its nationwide network of Property Management Centers, but handles simplified lease acquisitions through its regional leasing offices.

• The Federal Supply Service (FSS) buys most commonuse
products and services centrally through its
Acquisition Centers.


Competition Requirements

No matter what the dollar amount of a purchase, the price must be reasonable in order for the purchase to be made. Price reasonableness is usually determined by comparing
Sometimes competition is based only on lowest cost or price;
other times it is based primarily on technical capabilities or
concepts, secondly on price. Whatever approach is used (as well as the criteria against which offers will be evaluated) will be specifically spelled out in the solicitation.

Among the few exceptions to the competition requirement
is the exception for purchases that do not exceed the micro-purchase threshold of $2,500 ($2,000 for construction).
For purchases exceeding $2,500, but not $25,000, the FAR
generally requires that the contracting officer solicit, at a
minimum, three quotations.

Learn More

To learn more about these requirements, contact one of GSA’s Regional Small Business Centers or a Small Business Administration office.

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