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Industry News, Simplified Acquisitions

$500K Proposal to Increase Simplified Acquisition Threshold is Doomed

Interesting turn of events regarding the U.S. House proposal to increase the Simplified Acquisition Threshold to $500K (currently $150K). I had a conversation with a senior procurement official about why I believe the prop will die and how Congress could salvage it to provide some benefit to small federal contractors. They agreed with me that larger companies will try to fight the attempt to move some of their cheese, but also informed me there are other forces at work here which could quash those efforts. What ‘forces’ could shut down the lobbying machine of the big guys and gals? The need for increased efficiency. That’s one of the reasons Simplified Acquisition Procedures exist, and according to my friend in procurement, the streamlined aspects of these type purchases could be enough to carry it across the goal line.

THIS is going to be interesting!

Peace!

Guy Timberlake
The Chief Visionary

GovConChannel

Last week my friend and Government Contracts Attorney Steven Koprince included in his SmallGovCon blog an article about recent activity by the U.S. House of Representatives seeking to raise the threshold for Simplified Acquisitions. Given this is one of my favorite topics in government contracting because of my experience winning business this way, helping others to win business this way and the economic impact these buys have on small business concerns, most would expect me to be excited about this development.

But I’m not.

If you’re asking why, it’s not because it wouldn’t be significant and beneficial to thousands if not tens of thousands of small federal contractors, I just don’t see it going anywhere. The primary reason is because it represents too much money affecting too many ‘stakeholders’ of federal contracting. For that reason, it will face major hurdles from certain constituencies and lobbyists, especially those representing mid-tier…

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About Editor-in-Chief Visionary

Guy Timberlake is the Editor-in-Chief Visionary of GovConChannel and oversees the creation and curation of relevant and timely 'News And Information That Matters To Small Government Contractors.'

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