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

If you haven’t thought about your agency’s purchasing threshold lately, it’s a good time to take a look. It may be more important than you think. That’s because your simplified acquisition threshold (SAT) can make or break the flow of your procurement efforts. Why? It’s the difference between an accelerated, responsive request and a detailed, time-consuming request for proposal (RFP). However, RFPs account for only 20% of of the government market—because there are simpler, quicker ways to procure the goods and services you need.

How do I avoid the dreaded RFP?

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

In the age of technology, buyers frequently purchase IT equipment, such as iPads, Chromebooks and flash drives, which typically have hefty price tags—leading many government agencies to rethink their SAT. As a matter of fact, rising small purchase thresholds are a nationwide trend among public purchasing offices; this is 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 gained 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 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.

2019-05-29T14:02:39+00:00