FASA (Federal Acquisition Streamlining Act)

What is FASA (Federal Acquisition Streamlining Act)?

The Federal Acquisition Streamlining Act (FASA) is landmark legislation passed in 1994 that significantly reformed the federal procurement system. Its overarching goal was to make government contracting more efficient, transparent, and accessible, particularly for commercial businesses. FASA aimed to reduce bureaucracy, promote the acquisition of commercial items, and encourage competition.

Definition

FASA fundamentally altered the way the U.S. government procures goods and services. It emphasized the use of commercial off-the-shelf (COTS) items to meet government needs, aiming to leverage the innovation and cost-effectiveness of the commercial marketplace. The act also introduced simplified acquisition procedures (SAP) for purchases below a certain threshold, allowing for faster and less burdensome procurement processes. FASA reduced barriers to entry for contractors, particularly small businesses, by simplifying procurement processes and encouraging competition. Its impact is evident in the FAR, where many sections reflect the streamlining principles introduced by FASA.

Key Points

• Emphasis on Commercial Items: FASA mandated a preference for acquiring readily available commercial items over developing custom solutions, driving down costs and timelines.
• Simplified Acquisition Procedures: The Act introduced simpler procurement processes for smaller purchases, making it easier for agencies to quickly obtain necessary goods and services.
• Increased Competition: FASA aimed to foster a more competitive environment by reducing barriers to entry and promoting full and open competition whenever possible.
• Enhanced Transparency: The Act encouraged greater transparency in the procurement process, giving contractors better access to information and opportunities.

Practical Examples

1. COTS Item Acquisition: An agency needs to purchase standard office software. Under FASA principles, the agency is required to consider readily available commercial software packages before commissioning custom software development.
2. Simplified Acquisition for Supplies: An agency needs to buy office supplies worth less than the simplified acquisition threshold. FASA allows the agency to use simplified procedures, such as a government purchase card, to expedite the process.
3. Small Business Set-Asides: A small business is bidding on a contract. FASA encouraged the use of set-aside programs, giving the small business a better chance of winning the contract and contributing to the government's mission.