The Energy Department and its semiautonomous National Nuclear Security Administration (NNSA) on Tuesday increased the amount government procurements officers can pay on “micro-purchases” and “simplified’ acquisitions in order to cope with the effects of the COVID-19 pandemic.
The updates are outlined in an emergency purchasing flexibility document posted by DOE.
The federal procurement officers can now make a micro-purchase inside the United States for up to $20,000 to help address expenses related to the novel coronavirus 2019. Such a purchase from a vendor outside the country can be made for up to $30,000.
An Internet search indicated the 2019 National Defense Authorization Act raised limits for Department of Defense micro-purchases, which can be made without competitive bidding, from $5,000 to $10,000.
The Tuesday announcement says the simple acquisition threshold, under the Federal Acquisition Regulation, will be set at $750,000 for purchases or contracts made in the United States. In 2019, agencies such as the Pentagon and NASA increased this threshold from $150,000 to $250,000. The cap for international expenditures is set at $1.5 million under the emergency action.
The emergency increases in these small procurement levels took effect March 13 and are set to expire on July 1.
The measures were taken following the national emergency declared by President Donald Trump on March 13, two days after the World Health Organization (WHO) declared COVID-19 a pandemic.
The liberalized small contract rules can help the Energy Department assist emergency response efforts in impacted areas, according to the memo signed on March 16 by DOE Office of Acquisition Management Director John Bashista and NNSA Deputy Associate Administrator for Acquisition and Project Management Keith Hamilton.
An industry source said he was not particularly familiar with the small purchase programs, but he can foresee DOE sites increasing purchases of everything from cleaning and disinfecting supplies to food for workers during the ongoing health crisis.
Questions about the policy update should be directed to the DOE Contract and Financial Assistance Policy Division at [email protected].
