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Procurement Policy Alert!


Contract Actions Exceeding the Micro-Purchase Threshold up to the Simplified Acquisition Threshold

Dated:  January 31, 2012

In accordance with FAR Part 19, Subpart 19.502, Contracting Officers are reminded that contract actions exceeding the micro purchase threshold up to the Simplified Acquisition Threshold must be set aside for small business concerns.

FAR 19.502-2 (a) states:  Each acquisition of supplies or services that has an anticipated dollar value exceeding $3,000 ($15,000 for acquisitions as described in 13.201(g)(1)), but not over $150,000 ($300,000 for acquisitions described in paragraph (1) of the Simplified Acquisition Threshold definition at 2.1010), is automatically reserved exclusively for small business concerns and shall be set aside for small business unless the Contracting Officer determines there is not a reasonable expectation of obtaining offers from two or more responsible small business concerns that are competitive in terms of market prices, quality, and delivery.  Any determination to not restrict competition must be documented in the contract file.

Contracting Officers are required to adhere to FAR guidance as specified in Part 19 with respect to promoting the use of small businesses for contract awards.

Heads of the Contracting Activity (HCAs) are responsible for ensuring proper monitoring of performance in this area.

If you have any questions, please contact Cheryl Duckett-Moody, Senior Procurement Analyst at or 202-461-5713.