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Acquisition Process

 

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Micro-Purchases

A Micro-Purchase is an acquisition of supplies or services, the aggregate of which does not exceed $3,000; $2,000 for construction subject to the Davis-Bacon Act; or, $2,500 for services subject to the Service Contract Act.

Micro-Purchases are not subject to the same competition and set-aside rules as simplified acquisitions and contracts.

Anyone with a Government Purchase Card may make a Micro-Purchase. For further information, see the following for the DHHS Purchase Card Guide.

Average processing time for a Micro Purchase is 15 days.

Simplified Acquisition Procedures

A Simplified Purchase is an acquisition of supplies or services, the aggregate of which are greater than $3,000, but no more than $150,000; or, no greater than $5.5 Million for certain purchases made under the Commercial Item Test Program, as provided in FAR Subpart13.5. The general rule is that Simplified Purchases under $150,000 are reserved exclusively for competition among small business concerns and must be set aside for small businesses.

In comparison to the contracts award process, simplified acquisitions use a more streamlined acquisition process called Simplified Acquisition Procedures (SAP)

SAP are intended to (1) reduce administrative costs, (2) improve opportunities for small business concerns and small disadvantaged business concerns, (3) promote efficiency and economy in contracting, and (4) avoid unnecessary burdens for agencies.

If a requirement is over $15,000, the preferred method of acquisition is to seek competition from no less than three different vendors, and the solicitation must be posted in a public location for a minimum of 10 days; a reasonable period of time is sufficient for the acquisition of commercial items.

FedBizOpps Exit Disclaimer: You Are Leaving www.ihs.gov is the Government Point of Entry (GPE) for Federal Government procurement opportunities over $25,000.

If a requirement is over $25,000, pre-solicitation notices must be posted on FedBizOpps Exit Disclaimer: You Are Leaving www.ihs.gov for a minimum period of 15 days and all solicitations must be posted on FedBizOpps for an additional minimum period of 15 days.

The Chart below takes us through the general steps of an open market SAP acquisition. The processes shaded in blue represent the requirements that must be completed by the requesting program office. The processes in yellow represent the requirements that are completed by the Procurement Office.

Open market SAP acquisition chart

Average processing time for a Simplified Purchase is 30-60 days, with additional time required for services that require a statement of work.

* Purchases for equipment (Object Class 31xxx) are not authorized to use the Government Purchase Card.  All requests to purchase personal property must be made through UFMS iProcurement regardless of dollar value.

GSA Schedule

There is a different set of acquisition rules that govern the use of GSA Schedule Contracts. No public posting or synopsis of the requirement is necessary in FedBizOpps. The government must following the rules of FAR part 8.4. Exit Disclaimer: You Are Leaving www.ihs.gov

The agency must review/consider at least 3 schedule contracts through GSA Advantage!, or by reviewing the catalogs or pricelists of at least 3 schedule contractors.

For orders exceeding the maximum order threshold, additional contracts should be considered/reviewed and discounts from the schedule prices must be sought. For orders that require a statement of work (SOW), a written request for quotation must be issued.

Average processing time for a GSA Schedule delivery order is 30-60 days, with additional time required for services that require a statement of work.

Government Wide Acquisition Contract (GWAC)

A GWAC is type of Indefinite-delivery contract that has been awarded by another agency. The rules of FAR 16.505 apply.

Other agencies can place orders against the contract, but must follow the terms and conditions of the contract. There is often a fee associated with the use of other Agencies GWAC’s.

If there are multiple awards under the GWAC, all awardees must be given a fair opportunity to be considered for an order.

Average processing time for a GWAC delivery order is 30-60 days, with additional time required for services that require a statement of work.

Formal Contracts

In the realm of Government contracting, a contract generally refers to an acquisition of supplies or services, the aggregate of which are greater than $150,000; or greater than $5.5 Million under the Commercial Item Test Program.

A Contract is an agreement, enforceable by law, between two or more competent parties, to do something not prohibited by law, for consideration. The basic components of an enforceable contract are: (1) Offer, (2) Acceptance, and (3) Consideration.

Contracting Officers are the only IHS Officials who have the delegated authority to enter into a legally binding contract on behalf of the Government. COTR’s do not have the delegated authority to negotiate, enter into, administer, modify, or terminate contracts. An unauthorized person who commits the Government is establishing a personal commitment and possible personal financial liability for the action.

FedBizOpps Exit Disclaimer: You Are Leaving www.ihs.gov is the Government Point of Entry (GPE) for Federal Government procurement opportunities over $25,000.

In general, all respective pre-solicitation notices must be posted on FedBizOpps for a minimum period of 15 days; and, all solicitations must be posted on FedBizOpps for an additional minimum period of 30 days; 45 days for research and development.

The Chart below takes us through the general steps of a formal acquisition, which are: Pre-solicitation, Solicitation, Evaluation, Award, and Administration. The processes shaded in blue represent the requirements that must be completed by the requesting program office. The processes in yellow represent the requirements that are completed by the Procurement Office.

Formal acquisition chart

Average processing time for Formal Contracts is 4-6 months.

All Dollar Thresholds stated in this section are subject to change.