This means utilization of this streamlined purchasing method averages a $1 billion increase each fiscal year from FY2010 through FY2015. Just think, if Congress includes the threshold increase for these buys in the 2016 NDAA, they will overtake combined spending on the GSA and VA Schedules.
– The Chief Visionary
Hey small federal contractors! Can I get your attention now that we’re talking about spending upwards of $40 billion per fiscal year geared to you? By the way, that $40 billion is me being conservative as I think it will be much more than that.
I’ll keep this one short and sweet. Promise.
During FY2014, federal agencies leveraged the Simplified Acquisition Procedures to the tune of $19 billion when purchasing an array of goods and services and that total represented a record for these purchases and the fifth year of spending increases for these types of buys. As of July 1, 2015 the Department of Defense obligated a billion dollars more using this method than they did during the same period in FY14. This means, if DoD spends as much as they did last Q4, the governmentwide Simplified spend would be pushed beyond the $20 billion mark, and it looks like we’re going to make it.
What this means is, agencies are finding reasons to expand their use of this purchasing method, detracting from others, like the GSA Schedules. What’s even more awesome is this happening under the current rules in play which, if Congress keeps Sec. 854 intact through to the 2016 NDAA, will change dramatically.
In fact, the Simplified Acquisition Threshold (SAT) will increase from $150,00 to $500,000 giving agencies a lot more room to operate dollar-wise, and more reasons to use this purchasing method that has bilateral benefits of reduced administrative burdens for Government and Industry. Still more awesome is the fact the change is not about small business but about efficiency in contracting, one of the four tenets in the FAR as to why the Simplified Acquisition Procedures (SAP) exist. So in an effort to do more with less, Congress will create benefits of monstrous proportions for small business concerns.
When I say monstrous, I’m talking five or ten billion more in obligations steered to small business concerns. Again, that’s me being conservative.
Watch this video to learn some of the other reasons your govcon pipeline should include Simplified Acquisitions then call me (410-381-7378 x200) to discuss how The American Small Business Coalition can help you track down these opportunities to support your company’s growth.
“The person who says it cannot be done should not interrupt the person doing it.”