Federal and State procurement is big business. The Federal Government spends over 200 billion dollars annually for products and services. Since the Federal Acquisition Streamlining Act (FASA) was signed in 1994, the Federal government has streamlined the way it does business with contractors.

FASA removed many restrictions on purchases of less than $100,000. The simplified procedures require less administrative details, lower approval levels, and less documentation. Procurement reform legislation now requires federal purchases above $2500 but under $100,000 to be reserved for small businesses, unless the contracting officer cannot obtain offers from two or more small businesses that are competitive on price, quality and delivery.

Many purchases under the $2500 threshold are made using either a Visa or Mastercard government purchase card. The Purchase Card Program allows small businesses another way to target business opportunities within the federal government. The program reduces administrative costs, streamlines payment procedures in the area of small purchases, and improves opportunities for small and small disadvantaged businesses to do business with federal agencies.

Links to Government Contracting Web Sites

Want to learn more about government contracting? Visit these links for more information.