Federal Agency Spending via Simplified Acquisitions in Pennsylvania - SmartPay Payments

The SCIIF team and some of our partners will venture to North Central Pennsylvania to facilitate a half-day education and training program on May 7th, hosted by the good folks at North Central PTAC. After the Pre-Workshop Breakfast, hosted and sponsored by my friend Ed DeLisle, Principal and Chair of the Government Contracting Group at Offit Kurman (who is hosting and sponsoring several of our Ethical Stalking for Government Contractors 2-Day Bootcamps this year), we'll offer up a comprehensive discussion called the Finding and Winning Simplified Acquisitions Workshop.

This blog series is dedicated to providing information about spending where Simplified Acquisitions are the purchase method and Pennsylvania is the place of performance.

This segment will review the impact of payments made by agencies using the GSA SmartPay Purchase Card for Simplified Acquisition purchases. Most of us are familiar with the SmartPay card as it relates to Micropurchases, the buys made by agencies under the Micropurchase Threshold (MPT) and paid using the SmartPay P-Card. Did you know agencies use these cards for payments above (way above!) the MPT? During the upcoming workshop on May 7th, we'll provide insights into when and how agencies pay for purchases above the MPT using GSA SmartPay.

For now, I'll tell you that $16M of the $850M in Pennsylvania Simplified Acquisition dollars was paid via GSA SmartPay Purchase Cards according to FPDS-NG. While it's only about 2 percent of that spend, it's still $16M that likely shortened the receivables life cycle for a number of companies, probably small businesses.

That's the perspective from a small segment of federal spending, here's a bigger picture view:

  • When federal agencies made P-Card payments greater than $1M in FY2018, the total spend was $1 billion.
  • According to FPDS-NG, the largest single P-Card payment last year was made by VA in the amount of $54.5M.
  • The largest single P-Card payment made to small business concern last year was in the amount of $40.5M.
  • Federal Prison Industries issued the largest P-Card payment for a Simplified Acquisition purchase in the amount of $13M.
  • The Navy issued the largest Simplified Acquisition P-Card payment to a small business concern in the amount of $2M.

 By award type, payments made by purchase card looked like this for governmentwide spending (for payments above $1M):

  • BPA Call - $15.5M
  • Definitive Contract - $273M
  • Delivery/Task Order - $664M
  • Purchase Order - $22.5M

Small Business Concerns realized $205M of the $975M in purchase card payments above $1M last fiscal year. Additionally, for payments made this way, Simplified Acquisitions accounted for $44M.

My next segment will look at how many Simplified Acquisition dollars went to small business when Pennsylvania was the place of performance.



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