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Federal Government Contracts Under 25,000 for Small Businesses
By: Jase Dow
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    Table of Contents:
  • Federal Government Contracts Under 25,000 for Small Businesses
  • How the Government...
  • The micro market...
  • This will help...

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    Federal Government Contracts Under 25,000 for Small Businesses - How the Government...

    (Page 2 of 4 )

    How the Government Awards Smaller Contracts

    The federal government procurement system for contracts under
    $25,000 isn’t overly extensive or competitive. The government
    generally makes hiring decisions for smaller contracts through
    micro purchases or simplified acquisitions. Both of these
    methods are relatively streamlined, compared to the more formal
    process of requests for proposals, quotes and invitations.

    Micro Purchase Market

    The micro purchase market enables federal managers in the field
    to buy goods and services under $2,500 quickly and easily.
    Managers normally make these purchases with a government credit
    card, although a purchase order can also be used. Government
    credit cards—GSA SmartPay cards—are widely used and are the
    government preferred method of payment.

    Accepting credit card payments offers government contractors a
    variety of benefits. It eliminates the use of purchase orders,
    which means fewer forms to complete. It speeds up payment
    processing and reduces billing, collection and other
    administrative costs. But more importantly, accepting GSA
    SmartPay, allows companies to remain competitive and become
    strategic suppliers to government purchasing card users.

    Using credit processing to capitalize on the micro purchasing
    system is easy. You simply set up a merchant account that
    allows you to accept credit cards. Then conduct business with
    your local federal agencies the same as you would with your
    commercial customers.

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