In 2014 government agencies spent almost $26.4 billion in 2014 through 90 million transactions, mostly with the GSA SmartPay Purchase Card. There are currently over three million government purchase cards in circulation.
Every federal contract transaction costs the government $70 on average because of administration costs and agency direct fees. These purchase cards save the United States Government $1.7 billion every year and reduce contracting costs dramatically. Government purchase cards are more commonly used for micro-purchases, sole source contracts, and simplified acquisition contracts.
Micro-purchases and simplified acquisition contracts make up a large range of contract spending in government contracts. Mirco-purchases are all contracts ranging between $1 and $3,000. Simplified acquisition contracts range between $2,500 and $150,000; and commercial item purchases between $2,500 and $5,000,000.
Government contractors must communicate and network with procurement officers in order to win these types of contracts. Micro-purchases and simplified contracts are not always posted to government online bid boards like FedBizOpps. FedBizOpps (FBO) accounts for about a 1/3 of all active government contracts, and every contract must have a net worth for over $25,000. Contracts under this threshold do not have to be recorded in the Federal Awardee Performance and Integrity Information System (FAPIIS). Contracts under $25,000 can be awarded to a qualified contractor by the Federal procurement officer and instantly be paid with a SmartPay card.
US Federal Contractor Registration helps businesses win available small business governments contracts from contracting officers that use SmartPay cards.
The Simplified Acquisition Program has helped businesses win billions of dollars in government contracts thanks to US Federal Contractor Registration. The Simplified Acquisition Program is only offered by US Federal Contractor Registration, the official Third Party Federal Registration Firm.
For more data on Government Payment Cards access CardData®. For information and commentary on Government Payment Cards visit the searchable CardFlash® Library of more than 58,000 articles published since 1995. RAM Research® forecasts on Government Payment Cards are available exclusively through CardWeb.com.®