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A more ‘simple’ contracting method with perks for Government and Industry

Posted By Guy Timberlake, The American Small Business Coalition, LLC, Tuesday, April 22, 2014
Updated: Tuesday, April 22, 2014

What are Simplified Acquisitions?

(This is the first of six reports based on a conversation with Amy Morris, Morning Anchor at WNEW All News 99.1 (CBS Radio DC) These reports will also 'air' on All News 99.1.)

Once upon a time, the U.S. Government developed a way to streamline how it makes certain buys in a way that reduced the administrative burden for both agencies and vendors. But they didn’t stop there. Also built-in to this process was a way for agencies to increase business opportunities for small and disadvantaged business concerns in government contracting. Known as the ‘Simplified Acquisition Procedures,’ this procurement method accounts for billions of dollars in competitive and non-competitive obligations each fiscal year.

But while many in industry bid on and are awarded buys this way every day, most don’t realize it’s a different type of contracting when compared to how most dollars are obligated each fiscal year. “Simplified Acquisitions account for nearly $40B in obligations since the start of FY12,” says Guy Timberlake, chief visionary officer and CEO of The American Small Business Coalition. “It may be a drop in the bucket, but I never turned down an opportunity to engage agencies this way.”

That’s because according to Timberlake, his first million dollar deal in government contracting was the result of developing a relationship with a Navy customer via these smaller buys.

Another potential perk for some in industry is the fact most Simplified Acquisition buys are awarded via a purchase order, a standalone contract. “Purchase orders are not buys placed against an established contract vehicle so this eliminates some of the traditional upfront investment of pursuing and being awarded a GSA Schedule, Blanket Purchase Agreement or Indefinite Delivery Contract.”

So which agencies are buying this way and what are they buying? Timberlake says “Nearly all of them and pretty much anything they want to buy that is considered goods and services.”

In the next report I'll dive into spending under Simplified Acquisitions and the increase that occurred during FY13, while overall obligations made by the government declined sharply.

Peace.
The Chief Visionary
www.theasbc.org/visionary

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

Tags:  contract  government contracting  purchase order  simplified acquisition  small business 

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