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Every five years, the government is required by 41 U.S.C. 1908 to adjust the statutory acquisition thresholds for inflation, such as the Micro-Purchase Threshold, Simplified Acquisition Threshold, and others. Here are some of the proposed new thresholds for the FAR. million to $9.5 FAR 19.502-2.
The micro-purchase threshold, the simplified acquisition threshold, the 8(a) sole source contract ceiling and several other similar acquisition limits are likely to increase in 2025. The Government Accountability Office’s annual report to Congress on the state of bid protests always is fascinating. In a proposed rule from Nov.
As a result, even when small businesses offer innovative, cost-effective solutions that meet the needs of the government, their opportunities to be selected are significantly reduced. For small businesses, these delays mean missed opportunities to demonstrate their value and deliver cost-effective solutions to the government.
So the Rule of Two requires federal agencies to set aside procurements for small businesses where there’s a reasonable expectation that at least two small businesses will be able to submit offers at fair market prices and otherwise competitive in terms of quality and delivery. So it’s a huge part of government contracting.
“Fair and Reasonable” MAS contract level pricing is impacted by a host of factors. These include federal and commercial market conditions, government versus commercial contract terms and conditions, the Federal Acquisition Regulation (FAR), the General Services Acquisition Regulation (GSAR), and FAS policy, procedures, and training.
On December 21, the Government Accountability Office (GAO) dismissed a protest by ELS, an unsuccessful bidder on a Department of Defense (DOD) task order opportunity, concluding that it did not have jurisdiction to consider it. The protestor’s proposed price was $30,478,050, and its total evaluated price was $30,566,297.
Want to start selling to governments but dont know where to begin? This guide breaks down the crucial steps: identifying contracting opportunities, understanding procurement processes, and building relationships with government buyers. Dive in to learn strategies that can help you secure lucrative government contracts.
Trying to figure out how to get a government contract? Key Takeaways The federal government provides a plethora of government contractor opportunities, organized by NAICS codes, requiring awareness of various types of contracts and agency-specific needs such as cybersecurity readiness for the Department of Defense.
Though the bills are largely similar, the House legislation includes a provision that the Alliance for Digital Innovation “strongly supports” that is not in the Senate version: a proposal to increase the micro-purchase threshold (MPT) made available to agencies “to rapidly acquire low-cost technical solutions.”
The Government considers a split purchase when a contractor intentionally breaks down a requirement to stay under a regulatory threshold (e.g., micro-purchase, simplified acquisition threshold, or Truthful Cost or Pricing Data Act (TINA)) in order to circumvent procurement requirements or avoid having to compete.
The Government wants to pay a fair and reasonable price for products and services that they purchase and expects you to pay your suppliers a fair and reasonable price. If the purchase exceeds the micro-purchase threshold, yes $10,000 , you must document the justification as sole source.
The Coalition for Common Sense in Government Procurement (the Coalition) continues to collect recommendations for the Government Procurement Efficiency List (GPEL). As a threshold matter, it is important to note that the remaining 85 percent of supplies and products are ordered manually across the VA.
. § 124.506 states that a solicitation must be competed among 8(a) Program participants if there is a reasonable expectation that at least two eligible 8(a) Program participants will submit offers at a fair market price, the anticipated award price will exceed $7 million for manufacturing NAICS and $4.5 million or less for all others.
We get a lot of questions about federal government contracting as federal government contracting attorneys, which makes sense. This is also unsurprising, as the government really did not do the best job in making it clear what this act does. Looking for the latest government contracting legal news? call 785-200-8919.
The Rule of Two is the federal contracting rule requiring agencies to set aside a solicitation for competition only between small businesses when there are at least two small businesses that could do the work for a fair price. Looking for the latest government contracting legal news? But that rule does have some exceptions.
By: Richard Arnholt On November 8, the Government Accountability Office (GAO) denied an unsuccessful bidder’s protest that asserted the Veteran Administration’s (VA) evaluation of Texas Waste Company’s past performance was unreasonable and reflected the Contracting Officer’s (CO) bias. B-418123.4, 9, 2020, 2020 CPD ¶ 397 at 5.)
Data management tools, like pricing algorithms and artificial intelligence (AI), are playing an ever-larger role in Federal procurement as agencies look to streamline processes, increase efficiency, and improve contract outcomes. GSA’s current use of algorithms and pricing data is instructive in this regard.
124.506 , if an 8(a) contract price would exceed a certain threshold ($7 million for manufacturing contracts, $4.5 What happens when an agency decides that instead of competing a five-year contract to 8(a) companies, it will just sole source five one-year contracts at the sole source dollar threshold to an 8(a) company?
Welcome back to the Cost Corner, where we provide practical insight into the complex cost and pricing requirements that apply to Government contractors. Applicability of the FAR Cost Principles The FAR Cost Principles apply to the “pricing of contracts, subcontracts, and modifications whenever cost analysis is performed.” [1]
Two different supply chain supply regimes essentially govern supply acquisition: The Buy American Act (BAA) and the Trade Agreements Act (TAA). The BAA, however, is a price evaluation preference, which means if the price of a Chinese product is low enough, the federal government will buy that product.
On top of this, it also would allow DoD contracting officers to sole source contracts to VOSBs if the contracts are below certain dollar thresholds. Looking for the latest government contracting legal news? Congress Takes Next Step Towards VOSB Expansion first appeared on SmallGovCon - Government Contracts Law Blog.
Welcome back to the Cost Corner, where we provide practical insight into the complex cost and pricing requirements that apply to Government contractors. This article begins coverage of FAR 31.205, Selected Costs, which includes forty-seven Cost Principles, each of which governs the allowability of a particular type of cost.
The common belief is that only when the award of a subcontract exceeds the cost or pricing data threshold. Government contracts and subcontracts should have commercial determination regardless of the dollar value. When is a commercial determination required in the Federal Acquisition Regulations (FAR)?
Data management tools, like pricing algorithms and artificial intelligence (AI), are playing an ever-larger role in Federal procurement as agencies look to streamline processes, increase efficiency, and improve contract outcomes. GSA’s current use of algorithms and pricing data is instructive in this regard.
We have had several clients tell us they have purchase orders under the Truthful Cost or Pricing Data (TINA) threshold for what they believe to be commercial purchases. Government.
Understanding key clauses and provisions in the Federal Acquisition Regulation (FAR) is crucial for success in government contracting. Changes Clause (FAR 52.243-1) The Changes Clause is a fundamental provision that allows the government to make unilateral changes to the contract within its general scope.
This should make more business owners eligible to qualify for the valuable small business set-aside work for the federal government. For instance, contractors face a difficult road to recover costs in a firm-fixed-price contracts. The following graph shows other inflation adjustments for the 8(a) BD and EDWOSB. 17, 2022). [2]
This should make more business owners eligible to qualify for the valuable small business set-aside work for the federal government. For instance, contractors face a difficult road to recover costs in a firm-fixed-price contracts. The following graph shows other inflation adjustments for the 8(a) BD and EDWOSB. 17, 2022). [2]
How domestic courts approach challenges to arbitration awards is of increasing importance as foreign parties often decide to seat an arbitration in a jurisdiction that they believe will provide the greatest stability to governing the arbitration process. Under Section 3.6(a)
More specifically, each BPA holder shall be provided a specific request for quote (RFQ) for procurement requirements of an anticipated total dollar value exceeding the simplified acquisition threshold. Schedule contracts provide for an extensive volume of competitive cost/price offerings. appropriately influenced economies of scale.
More specifically, each BPA holder shall be provided a specific request for quote (RFQ) for procurement requirements of an anticipated total dollar value exceeding the simplified acquisition threshold. Schedule contracts provide for an extensive volume of competitive cost/price offerings. appropriately influenced economies of scale.
Government treasury bills (“T-bills”) becomes higher than the interest rate on 10-year U.S. Government treasury notes. [6] 23] And, as the Government has previously pointed out, “because the committee depends on government statistics that are reported at various lags, it cannot officially designate a recession until after it starts.”
On August 5, 2024, the General Services Administration (GSA) took a step forward by publishing a final rule to “standardize and simplify the Multiple Award Schedule (MAS) clauses for economic price adjustments.” The Coalition for Government Procurement (CGP) commends GSA for promulgating the EPA rule.
The CBAM proposal forms part of the UK government’s wider strategy to tackle carbon leakage. To achieve this it will impose a carbon price on imported goods with the aim of levelling the playing field and ensuring that imported goods are subject to a carbon price that is comparable to that incurred by manufacturers based in the UK.
Two weeks ago, FAR & Beyond focused on the “Competing Global Supply Chain Approaches” governing federal acquisition. This blog continues to explore the mixed supply chain messages the federal government is communicating to the industrial base. The Small Business Rules: Is the Price Right for Products Made in China?
Two different supply chain supply regimes essentially govern supply acquisition: The Buy American Act (BAA) and the Trade Agreements Act (TAA). The BAA, however, is a price evaluation preference, which means if the price of a Chinese product is low enough, the federal government will buy that product.
The Final Rule also makes many changes to 2 CFR Parts 180 and 200, including, but not limited to, increasing the threshold for audits, clarifying the requirements for fixed amount awards, and implementing a mandatory disclosure rule. Section 200.333 increases the maximum value of a fixed amount subaward from $250,000 to $500,000.
Roundtable participants said under a certain threshold (around $100K for services and $25K for goods) their client departments have full discretion on how to source. If the amount is over the threshold, sourcing is led by the procurement team, whether through a public bid, NOI, or limited tendering option. Be part of the community.
First, the simplified acquisition threshold currently sits at $150 thousand but there is a FAR proposal on the table that will increase that threshold to $250 thousand. We have been discussing some of the procurement related provisions buried in the bill. There are several things to note here. Second, the request must be in writing.
On the face of it, it’s obviously a big deal for small businesses because now if you’re on one of these multiple award IQ contracts, the onus is going to be on the buying agency to come up with justifications to not give you task orders up to the simplified acquisition threshold, currently $250,000. And we’re kind of here.
Whether you’re a supplier trying to land your first contract, a business just getting into understanding government procurement, or a pro looking to stay on top of compliance, this glossary is your go-to guide. The contracting authority or government agency sets the rules, picks the best supplier, and ensures everything runs smoothly.
When the government purchases goods and services from private businesses, the process is known as public procurement. Such a service requires the government to procure contracts in a well-managed and efficient manner. Furthermore, when the government improves its public procurement process, it can save significant amounts of money.
So the reason that we need this to be so broad is because the impact could be so broad to the government. Right at the least, the government wants you to be able to, if you know or have indicators of an attack or potential attack, tell the government. And this applies below the simplified acquisition threshold, too.
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