DOD Wants to Raise Micropurchase Threshold

NOTE: The Alaska PTAC has been renamed as Alaska APEX Accelerator. This change occurred on September 15, 2023. Learn why.

The Defense Dept. has asked Congress for several legislative changes in acquisition. One of DOD’s requests is to raise the micro-purchase threshold to $10,000, up from the current $5,000 for defense agencies and $3,500 in civilian agencies.

The micro-purchase threshold applies to purchases using government charge cards. Such buys may be especially helpful to small firms looking to get a start in government contracting because they are relatively quick and easy to approve.

Another proposal would cancel a requirement for contracting officers to determine that an interagency acquisition is the best strategy, before placing an order over $550,000 on a Federal Supply Schedule contract. The current requirement also applies before placing an order against any government-wide contract (GWAC).

The DOD request to Congress points out that the existing requirement is contrary to recent Government Accountability Office advice as well as recent congressional actions.

Other proposals

  • Another proposal raises the threshold for filing protests of task and delivery orders under multiple award contracts. The threshold would increase to $25 million, from the current $10 million.
  • DOD officials also want to raise the threshold for reporting on the amount invoiced for direct labor hours on service contracts.
  • DOD officials want to reduce the reporting requirements for federal contractors regarding salaries of their highest-paid employees. Currently, contractors with at least $25 million in federal contracts that compose at least 80% of the company’s revenues must report compensation for their top five highest-paid employees.

 

-from SetAside Alert