Part II: Formal Contract Procedures

Purchases over $150,000.00 typically use formal contract procedures (but Simplified Acquisition Procedures can be used if the product or service is a Commercial Item less than $5 Million)

  1. A Business Should Be Economically Sound and Knowledgeable about the Mechanics, Rules and Regulations of Procurement Before Attempting to Bid on a Federal Contract. Contracts Awarded over $150,000 Are Very Competitive
  2. A Thorough Knowledge of the Federal Acquisition Regulation (FAR) Is Invaluable
  3. Publicizing the Requirement in FedBizOpps Advertisement Is Required
  4. Either a Sealed Bid or a Negotiated Procurement Can Be Used to Solicit Prices and Technical Responses
  5. Procurements expected to exceed $150,000 (using open market procedures) are reviewed using the following considerations:
    1. 8(a) Program [general rule of thumb: up to $4,000,000 ($7,000,000 for manufacturing), use 8(a) program on sole-source basis; over $4,000,000 ($7,000,000 for manufacturing)], use 8(a) program on competitive basis if 8(a) “rule of two” is met - see FAR 19.8
    2. HUBZone Small Business Set-Aside Program (competitive) - reserved for HubZone small businesses if HUBZone "rule of 2" is met or HUBZone Small Business Sole-Source Program - reserved for a HUBZone small business if only one HUBZone small business can satisfy the requirement [threshold: up to $4,000,000 ($7,000,000 for manufacturing)] - see FAR 19.13
    3. Service Disabled Veteran-owned Small Business (SDVOSB) Set-Aside Program (competitive) - reserved for SDVOSB if "rule of 2" is met or SDVOSB Sole-Source Program - reserved for a SDVOSB small business if only one SDVOSB small business can satisfy the requirement [threshold: up to $4,000,000 ($6,500,000 for manufacturing)] - see FAR 19.14
    4. Women-owned Small Business Set-Aside Program where WOSB or EDWOSB are under represented in NAICS identified by the SBA - see FAR 19.15. No dollar limits associated with this set-aside program
    5. Small Business Set-Aside Program - reserved for small businesses if small business "rule of 2" is met - see FAR 19.5
    6. Full and Open Competition (aka Unrestricted Competition) – if applicable, use price evaluation adjustment for small disadvantaged business concerns and price evaluation preference for HUBZone small business concerns