Federal Level: MICRO–PURCHASES: Micro–purchase means an acquisition of products or services where the aggregate amount does not exceed $10,000. COMPETITION: Purchases within the micro–purchase threshold can be awarded without soliciting competitive price quotations if the price is reasonable. Read more here: FAR 13.201
State Level: Procurement by micro-purchases. Procurement by micro-purchase is the acquisition of supplies or services, the aggregate dollar amount of which does not exceed $3,000. (varies by city/town)
Small Business Opportunities in Micro-Purchasing
Did you know that 70% of government procurement transactions are micro-purchases through credit cards?
Things You Must know!
Micro-purchases are not published/not posted anywhere
The process is open-market
Awarded without soliciting competitive quotations
Federal Contracting officers and State Purchasing Agents are looking for small businesses in their area
TIPS
Market your business to your potential customers!
Start and build relationships with government small business offices in your area
Be creative, what can you sell (service/product) under the micro-purchase threshold?
Advantages of Procurements by Micro-Purchases
Reduces administrative costs
Reduces paper-work
fast turn around means faster payment
Build past performance
Build trust
Lower dollar contracts mean lower risk
Improves opportunities for small businesses to do business with government
Written by Marisol Herrera