Federal Purchasing Thresholds

The federal government buys just about everything (the $500 billion for FY2010 is only what the public knows about); state and local governments as well as school districts aren’t far behind.  So who buys what you sell?

First consider some dollar thresholds that apply to federal contracting.  For any purchase under $3,000 many federal employees merely have to use their government issued VISA/MasterCard – no red tape, no prior approvals, they can buy what they need under that threshold.

The next significant threshold is $25,000.  Under this threshold federal contracting officers only need to get two quotes from small businesses they know of that can provide the particular product/service.  Again the process is pretty simple for the buying entity, but the key words here for your business are “small businesses they know of” and POP is here to facilitate those connections for you. 

Federal Acquisition Regulations (FAR) state that purchases under $150,000 shall be set aside for small businesses only.  About $98 billion of the $500 billion mentioned above went directly to small businesses.  Is your business prepared to compete for that $98+ billion in federal contracting?

Federal procurements over $150,000 are not out of your reach either.  Consider teaming together with another small business that provides complementary products/services to respond to a large solicitation.  FAR also has something to say to large businesses bidding on purchases over $550,000 or $1,500,000 for construction – they must submit a small business subcontracting plan with their bid which includes the percentages and dollar amounts of their bid that will go to small businesses.

That’s a little bit about the federal purchasing thresholds.  Cities, counties, school districts and the State of Nevada have other purchasing thresholds and regulations to keep in mind. 

Need to know more?  Contact POP at .(JavaScript must be enabled to view this email address) or 775-687-9900 – we are here to help your business be a successful government contractor.