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GSA and Simplified Acquisition Procedure Growth

SAP Growth Due to Dollar Threshold Expansion
The National Defense Authorization Act in 2018 grew the spending criteria for (SAP) Simplified Acquisition Procedure limit from $150,000 to $250,000. The adoption of this new policy in January of 2018 has resulted in an increase in small business SAP sales of 72% since its implementation.

 

Small Business Sales for Contracts between $150,000-$250,000

Year

Q1

Q2

Q3

Q4

2017

483

537

714

1,525

2018

548

611

904

2,045

2019

730

877

982

1,897

2020

687

927

 

 

INIn Millions

In Millions

SAP and GSA Schedule Contracts
The GSA Schedule System is specifically designed to aid in the facilitation of SAP orders. The GSA Schedule System does this through its GSA eBuy bulletin board system for GSA Contract Holders Only. GSA eBuy is also regarded as one of the simplest means for a procurement officer to justify the market research for a SAP contract (a federal contract with a value between $10K-$250K).

 

How GSA eBuy Works
The procurement officer places a contract on eBuy, inviting a select number of GSA firms (generally around 7) that do the specific work that they are looking for, if they have interest in working with them on the procurement. Typically, the contracting officer receives about 3 responses, and then they work through which vendor makes the most sense for their opportunity.

 

eBuy Complaints
Some small business advocates regard the eBuy system as being overreaching. This is because this GSA system gives a large advantage to GSA Contract Holders in obtaining SAP contracts that should be available for all small business. Therefore, many would like to see the system opened to all small business. It is highly unlikely eBuy will be changed as this would throw the proverbial “baby out with the bathwater” as the current system with its pre-vetted GSA suppliers is working well for the government. The government’s general response is if you want the advantage for yourself, then get on GSA.

 

Advantages of SAP
1. Reduces the administrative costs.
2. Improves opportunities for small business and small disadvantaged business concerns to obtain a fair proportion of Government contracts.
3. Promotes efficiency and economy in contracting.
4. Avoids unnecessary burdens for agencies and contractors.
5. Allows shorter solicitations and faster turnaround times.
6. Saves money for both the Government and Contractor with less paperwork and personnel needed for the process.
7. Acquisitions exceeding the Micro-Purchase Threshold (MPT) of $10,000 but not over the Simplified Acquisition Threshold (SAT) of $250,000, are set-aside for Small Businesses.

 

GSA Schedules
A GSA Schedule is a great step when entering the federal marketplace. Coupling an 8(a) Certification with a GSA Schedule can further exacerbate your future business development potential, but being proactive and aggressive either way if possible is usually the right direction for a firm. If you would like to analyze your business to see what type of impact a GSA Schedule and/or 8(a) Certification could provide, I always recommend contacting an industry expert such as Advance GSA or ez8a. Neither charge for an initial consultation.

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