This Week's Simplified Acquisition Snapshot™: FY12 Special Report
Monday, October 15, 2012
Posted by: SAP Task Force
We pulled the data for the completed FY2012 spending governmentwide and found the current total spending at $11.8 billion dollars for simplified acquisition purchases. This is significantly lower than FY11 spending ($15.5B) but does not take into account Department of Defense** spending totals that won't be known until the end of the FY12 calendar year.
However, if DoD spending is anywhere in the vicinity of FY11 year-end spending ($2.265B), that would bring FY12 SAP spending totals up to $14 billion dollars, only $1.5 billion off of the FY11 mark. As a point of reference, DoD spent roughly $1.4B during Q3 FY12.
Things to watch in FY13 includes impact of joint OFPP/SBA memo in June 2012 urging agencies to maximize opportunities for small businesses for purchases under the Simplified Acquisition Threshold. Next, Army Contracting Command, which spends 60 percent of Army contracting dollars, cited in an October article (Federal News Radio) they would be aiming to award 90 percent of all simplified acquisitions to small businesses. Army-wide spending was nearly $1.6 billion for Simplified Acquisition purchases in FY12. As larger procurements are subjected more and more scrutiny, look for agencies to increase use of streamlined purchase methods to fulfill incremental program and mission requirements.
Interested in knowing what is being purchased and by which agencies? Read on, and welcome to this special edition of the Simplified Acquisition Snapshot™!
The top five contracting departments by spending at the time of the report are: Department of Defense**, Department of Treasury, Department of Veterans Affairs, Department of State and the Department of Justice. These organizations have contributed to the processing of 648,867 simplified acquisition contract actions* fiscal year-to-date.
The top five (5) products/services that account for just over $2.2 billion of total FY12 simplified acquisition spending are:
- Precious Metals Primary Forms
- Support - Professional: Other
- Medical and Surgical Instruments, Equipment and Supplies
- ADP Software
- Support - Professional: Program Management/Support
GSA SmartPay/SmartPay 2 Purchase Card Payment Information
- Total payments via GSA SmartPay Purchase Card for simplified acquisition purchases is $387,434,419.
- Small Business received $189,746,322 in purchase card payments for simplified acquisition purchases during FY12.
Here's some additional information.
If your company is located in: Virginia, District of Columbia, California, Maryland or Idaho then you are in one of the top five states for contractors being awarded these streamlined purchase opportunities (states listed in order according to spending fiscal YTD).
Each week we give you a chance to score free passes to an upcoming Simplified Acquisition Spotlight™ webinar, a deep-dive into where, how much and on what goods and services a specific agency is spending their simplified acquisition dollars. Here is this week's trivia. Hint: The answers are sometimes in the report you just read.
#1 - What two (2) defense sub-agencies (excluding Department of Defense) ranked in the top five for sub-agencies by simplified acquisition spending for FY12? What were their ranks? (One (1) free webinar for each question answered correctly.) Army (1st) and DLA (3rd)
The first five correct answers emailed to firstname.lastname@example.org will receive one free pass to the market intelligence webinar of their choice for each correctly answered question.
What is a Simplified Acquisition?
By definition, a simplified acquisition is one of the easiest ways for federal agencies to purchase goods and services in support of business and mission operations, and each fiscal year, hundreds of thousands of contract actions worth billions of dollars are issued to companies located around the world.
The Federal Acquisition Regulation (FAR) indicates this method is intended to reduce the administrative burden associated with these acquisitions for both Government and Industry, and are used to procure goods and services including research and development, construction and commercial items, that fall within the Simplified Acquisition Threshold.
Additionally, the Simplified Acquisition Procedures (SAP) were established to create additional business opportunities for small and disadvantaged business concerns in government contracting. Often, this presents a great opportunity for companies new to an agency (or new to government contracting) to get a "foot in the door" because of the lower level of associated with these purchases.
Our Weekly Article Series
The Simplified Acquisition Snapshot™ is The American Small Business Coalition's weekly education and market intelligence brief about simplified acquisition spending based on the Place of Performance for each contract, task order or purchase order issued. For more state reviews, visit www.theasbc.org/sapsnapshot.
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* "Contract action” means any oral or written action that results in the purchase, rent, or lease of supplies or equipment, services, or construction using appropriated dollars over the micro-purchase threshold, or modifications to these actions regardless of dollar value. Contract action does not include grants, cooperative agreements, other transactions, real property leases, requisitions from Federal stock, training authorizations, or other non-FAR based transactions.
** For public users, Department of Defense contract actions are delayed 90 days due to operational security (OPSEC).