Procurement Reform: Competition and Notice Under the Federal Acquisition Streamlining Act of 1994

T-OGC-95-26: Aug 3, 1995

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GAO discussed the implementation of the Federal Acquisition Streamlining Act (FASA), focusing on the competition and notice procedures that apply to the various dollar categories of purchases defined by FASA and their relationship with the Federal Acquisition Computer Network (FACNET). GAO noted that: (1) FASA calls for the conversion of the procurement system from a paper-based system to the electronic-based FACNET; (2) FASA allow agencies to make micro-purchases, or purchases under $2,500 without obtaining competitive quotations from large or small businesses, and that are exempt from the Buy American Act; (3) agencies can make a quick and efficient purchase by advertising a need for a micro-purchase over FACNET; (4) although FASA replaced the $25,000 small purchase limit with a $100,000 simplified acquisition threshold reserved for small businesses, agencies that do not use FACNET have a $50,000 threshold; (5) if a non-FACNET purchase does not exceed $25,000, agencies often do not need to solicit more than three vendors; and (6) over-threshold purchases require agencies to generate full and open competition and to consider all responses to solicitations.