General Service Administration (GSA) and Office of Management & Budget (OMB) submitted the phase II report of their e-Commerce portal to Congress. The report responded to issues congress had tasked GSA with researching; as well as providing a few key statements and requests to help with the implementation of the pilot e-Commerce portal.
Key among them: GSA has requested that Congress increase the micro-purchase threshold for the GSA e-Commerce pilot from $10,000 to $25,000 with an end date of 5-years.
GSA’s research identified that nearly 25% of purchases above the current MPT are below $25,000. The report stated an increase to the MPT to $25,000 would provide the pilot a higher-value proof of concept.
It is important to understand that the Trade Agreement and Buy American Acts do NOT apply to single purchases below the MPT. This will create a direct competition to GSAAdvantage and other MAS programs that include the TAA and BAA as a requirement. GSA states that “at this time, GSA does not have a factual basis for concluding that satisfied agency customers would stop using the MAS…. “
GSA anticipates issuing a draft solicitation and then final solicitation later this year with the goal have having the pilot up by the end of the calendar year.
Important Takeaway of Changes Include:
- The initial pilot program will only include orders below the micro-purchase threshold (currently $10,000). This decision will alleviate the need for significant legislative changes to align commercial and government regulations.
- The pilot program should allow agencies to focus on larger, more complex purchases; as card holders can manage the significant portion of smaller purchases.
- Reduce administrative cost in low-dollar purchases to meet mission critical requirements
- e-Commerce purchases will inform agencies purchasing trends and what items should be added to existing contract vehicles and further create category management product pools based on purchasing data.
Watch Coley or FBO (link to a blog regrading using the FBO. If it does not exist, we’ll need to create one) for this opportunity. Companies, especially small and underrepresented businesses, need to create visibility through as many contracting vehicles as possible to remain competitive and informed of opportunities. ColeyGCS will accelerate and sustain your federal market success.
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