Overview
FAR Part 13 prescribes streamlined policies and procedures for the acquisition of supplies and services that do not exceed the Simplified Acquisition Threshold (SAT), as well as special authority for certain commercial products and services up to $9 million ($15 million for specific contingencies). Its primary objective is to reduce administrative costs, improve opportunities for small businesses, and promote efficiency by avoiding the unnecessary burdens associated with more formal contracting methods.
Key Rules
- Mandatory Use: Agencies must use simplified acquisition procedures (SAP) to the maximum extent practicable for all purchases at or below the SAT, unless requirements can be met through mandatory sources (Part 8) or existing contracts.
- Small Business Set-Asides: Acquisitions with an anticipated value above the micro-purchase threshold but at or below the SAT are reserved exclusively for small business concerns.
- Prohibition on "Splitting": Requirements cannot be broken down into smaller purchases merely to stay below thresholds or to avoid requirements that apply to larger purchases.
- Legal Status of Quotations: A quotation is not an offer and cannot be accepted by the government to form a binding contract. A contract is established only when the supplier accepts the Government's "offer" (the purchase order) via signature or performance.
- Competition Standards: Contracting Officers (COs) must promote competition to the "maximum extent practicable." Generally, soliciting three sources is considered sufficient, and COs are encouraged to request quotes from at least two sources not included in the previous solicitation.
- Simplified Evaluation: COs have broad discretion in fashioning evaluation procedures. Formal evaluation plans, competitive ranges, and scoring systems are not required.
Responsibilities
- Contracting Officers (COs):
- Determining price reasonableness for every award, using market research or historical data when competition is limited.
- Maximizing the use of the Governmentwide commercial purchase card and electronic commerce.
- Justifying and documenting sole-source or brand-name restrictions.
- Complying with public display and synopsis requirements (FAR 5.101) when applicable.
- Authorized Individuals:
- Making purchases in the most efficient and economical manner suitable to the specific circumstances.
- Ensuring that standing price quotations are current and provide maximum discounts before making an award.
- Agencies:
- Establishing internal procedures and granting authority to "authorized individuals" to perform SAP functions.
- Providing oversight for the use of imprest funds and third-party drafts.
Practical Implications
- Speed and Flexibility: FAR Part 13 allows the government to function more like a commercial entity. The ability to use oral solicitations and evaluate offers without formal scoring allows for a significantly faster "procurement-to-award" cycle compared to FAR Part 15 negotiations.
- Vendor Strategy: For contractors, Part 13 means that a quote is an invitation to deal, not a binding commitment. Contractors must be aware that the government can withdraw or amend a purchase order at any time until the contractor formally accepts it or begins substantial performance.
- Lower Barrier to Entry: Because documentation and formal "protest" risks are lower under SAP, this is the primary entry point for new and small businesses to win federal contracts.
- Audit Trail: While documentation is "kept to a minimum," the CO must still be able to prove price reasonableness. Contractors who provide clear, catalog-based pricing or evidence of recent commercial sales make it easier for COs to justify an award quickly.