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Even with Compressed Fiscal Year, FY11 Purchases via Simplified Acquisitions Exceed $12B ($6B for SB's)

Posted By Guy Timberlake, The American Small Business Coalition, LLC, Sunday, October 02, 2011
Updated: Sunday, December 11, 2011
Even with Compressed Fiscal Year, FY11 Purchases via Simplified Acquisitions Exceed $12B ($6B for SB's)

Let me qualify my headline by saying "so far" since the books are still being closed for this fiscal year.

After all these years and the amount of information being pushed out by the Government, me and many others, folks still seem to forsake Simplified Acquisitions and I'm not sure why.

We live in an age where Continuing Resolution is by far the norm rather than the exception, the impact of which is felt in new programs and discretionary spending for government. This results in a state (again) where companies may find it easier to try and squeeze water from a rock rather than make sense of their opportunity forecasts. Hence,  we all sit back and wait for the other shoe to drop.

As I discussed with the hundreds of industry participants who attended our Simplified Acquisitions programs earlier this calendar year, these purchases have been less prone to the effects of the CR and in fact continue to increase as agencies conduct acquisitions in support of business and mission operations. There is still significant confusion about this type of purchase, what the buying thresholds are, how to find and compete for them, and how small businesses have the upper hand as written in the Federal Acquisition Regulations (FAR).

Here are a few facts to give you an idea of the impact of FY11 streamlined purchasing:
  • More than 660,000 contract actions were processed - an increase over FY10.
  • Of the total actions, more than two-thirds were competitively awarded.
  • Nearly two-thirds of the total actions were awarded to small businesses.
  • Spending occurred in all fifty states, several U.S. Territories and Europe.
  • Fifty (50) NAICS Codes were used in the course of more than $12B being spent.
  • The fewest contract actions were under Landscaping Services -  accounted for  >$35M.
  • Top 5 agencies (in order): GSA, DoD, VA, DOJ and State Department.
During my participation on a recent industry panel with part of the business development and marketing brain-trust  for our industry (Bob Lohfeld and Mark Amtower, respectively) the term "relationships" reverberated throughout the entire discussion and for good reason. Just as the relationships I developed years ago fulfilling micro-purchase and simplified acquisition orders led to my first big deal (the FA/18 Electronic Classroom), the value these opportunities present is far and above the size of each purchase or the profit margin one is able to secure.

Happy Holidays!


The Chief Visionary

"The person who says it cannot be done should not interrupt the person doing it."

Tags:  $11B  $6B  acquisition  competed  FAR  non-competed  simplified  small business 

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