The Department of Defense (DoD), General Services Administration (GSA) and NASA have proposed an interim rule that states ‘simplified acquisitions’ (contracts between $3,000 and $150,000) may be used in connection with the placement of orders and blanket purchase agreements under Federal Supply Schedules.
This rule is inconsistent with the constitutional Small Business Act, which states that ‘simplified acquisitions’ “shall be reserved exclusively for small business concerns…” and “small-business concerns with the meaning of this chapter shall receive any award or contract or any part thereof, and be awarded any contract for the sale for Government property…”
Every year for the past decade, federal agencies have been able to use an exemption in the Federal Acquisition Regulation (FAR) to avoid setting aside upwards of $44 billion in GSA Schedule contracts and $20 billion in Foreign (or overseas) contracts destined for military bases and embassies in foreign soil.
In the meantime, the Small Business Administration (SBA) is tasked with drafting a proposed rule that will set forth more specific guidance. The SBA has issued a legal opinion that stated ‘simplified acquisitions’ take priority over GSA Schedule contracts. We hope the SBA considers that opinion when drafting the proposed rule and provide that 'simplified acquisitions on any and all procurement vehicles (GSA Schedules), shall be set-aside for small businesses.
SBA opinion:
I strongly suggest that small business owners comment on the proposed interim rule in the Federal Register at:
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