Why Your Agency’s Simplified Acquisition Threshold (SAT) Is Too Low

Do you ever think about how important your purchasing threshold is? Your agency’s simplified acquisition threshold (SAT), or the dollar amount a request must be within to not require a formal bidding process (request for proposal or RFP), can actually make or break the whole flow of your procurement efforts. It can be the difference between an accelerated, responsive request or one that drags to a halt after so many delays, sapping your procurement team’s resources and budget. Remember, RFPs are only 20% of of the government market — and everyone can agree on the reason why.

How do I avoid the dreaded RFP?

Agencies commonly attempt to use the piggy-backing exception process or look to a group purchasing organization (GPO) for a solution to the RFP. However, these processes have roadblocks of their own and often don’t yield the expected savings and efficiencies of simpler methods like the request for quote (RFQ). Micropurchases and RFQs account for the vast majority of government spending (80%), and that percentage is set to grow in the coming years as more agencies raise their small purchase thresholds.

If your agency hasn’t raised it’s SAT yet — now is the time to do so. Buyers all over the US are requesting products such as iPads, Chromebooks, flash drives, and other IT equipment on a daily basis that have clear specifications, giving agencies the opportunity to procure these items extremely quickly. Rising small purchase thresholds are currently a nationwide trend among public purchasing offices, partly due to recent legislation such as the 2018 National Defense Authorization Act (NDAA).

Why are requests for quote (RFQs) a better option?

Requests for quote (RFQs) have been rapidly gaining traction among state, local, and education (SLED) agencies in recent years as the best choice for full and open competition. Informal quotes allow buyers to receive competitive pricing on products or services without extensive, time-consuming paperwork and other inefficient procurement methods. RFQs have revolutionized how buyers approach procurement, leading to dramatic savings in budget allocation through a streamlined, cohesive, and centralized purchasing process with a much simpler audit trail.

How do I maximize maximize full and open competition with RFQs?

By increasing your small purchase threshold, you empower your procurement team to receive quotes from a broader pool of vendors competing for your business. Over 800 government agencies use GovQuote to instantly get matched with companies that sell the products and/or services they request, making it simple for buyers to fulfill RFQs with ease.

GovQuote is the first fully web-based platform to connect government agencies and private companies on the largest, fastest, and most user-friendly request for quote (RFQ) marketplace. GovQuote is revolutionizing public procurement by providing an online marketplace where State, Local, and Education (SLED) agencies obtain quotes by reaching thousands of qualified companies competing for government business. Using powerful smart technology to cut out costly and outdated procurement methods, GovQuote saves organizations countless hours and millions of dollars, all with full compliance, facilitating crystal-clear transparency in the public sector while leveling the playing field for small and disadvantaged businesses.