Policy
Use simplified acquisition procedures for eligible purchases to streamline procurement and maximize small business participation, while strictly adhering to thresholds and set-aside requirements.
Overview
FAR 13.003 establishes the overarching policy for using simplified acquisition procedures (SAP) for federal purchases of supplies and services not exceeding the simplified acquisition threshold (SAT). The regulation mandates that agencies use SAP to the maximum extent practicable, except when required sources (like Federal Supply Schedules or existing contracts) must be used. It also requires set-asides for small businesses for acquisitions above the micro-purchase threshold but at or below the SAT, and outlines the use of various small business programs. The section prohibits splitting requirements to stay under thresholds and encourages the use of electronic commerce and purchase cards. Contracting officers are directed to maximize competition, set reasonable deadlines, consider all timely offers, and use innovative approaches when awarding contracts under SAP.
Key Rules
- Mandatory Use of SAP
- Agencies must use simplified acquisition procedures for purchases at or below the SAT, unless required sources or existing contracts apply.
- Small Business Set-Asides
- Acquisitions above the micro-purchase threshold but at or below the SAT must be set aside for small businesses, with specific programs (8(a), HUBZone, SDVOSB, WOSB) eligible for awards.
- Thresholds and Prohibitions
- SAP cannot be used for acquisitions exceeding the SAT or $7.5M ($15M for certain commercial items). Requirements cannot be split to avoid thresholds.
- Electronic and Efficient Purchasing
- Agencies should use purchase cards, electronic commerce, and the most suitable, efficient methods for each acquisition.
- Promoting Competition and Innovation
- Contracting officers must promote competition, set reasonable deadlines, consider all timely offers, and use innovative approaches.
Responsibilities
- Contracting Officers: Ensure SAP is used appropriately, set aside eligible acquisitions for small businesses, avoid improper splitting of requirements, promote competition, and use efficient purchasing methods.
- Contractors: Comply with small business program requirements and respond to solicitations in a timely manner.
- Agencies: Oversee compliance with SAP policy, maximize use of electronic tools, and ensure statutory authorities are followed for personal services.
Practical Implications
- This section streamlines federal purchasing for lower-value acquisitions, reducing administrative burden and increasing opportunities for small businesses. Contractors should be aware of set-aside requirements and the importance of timely, competitive responses. Common pitfalls include improper splitting of requirements and failure to use required sources or established contracts.