The Federal Acquisition Streamlining Act (FASA) of 1994 is intended to simplify
government buying procedures.
The Federal Acquisition Streamlining Act removed many competition
restrictions on government purchases of less than $100,000. Instead of full and
open competition, government agencies can now use simplified procedures for
soliciting and evaluating bids up to $100,000.
Simplified procedures require fewer administrative details, lower approval
levels, and less documentation. New procurement reform legislation requires all
federal purchases above $2,500 but under $100,000 to be reserved for small
businesses, unless the contracting officer cannot obtain offers from two or
more small businesses that are competitive on price, quality and delivery.
Government agencies are still required to advertise all planned purchases over
$25,000 in thousands government websites.
Micro-purchases: Government purchases of up to $2,500 in individual items or
multiple items whose aggregate amount does not exceed $2,500 are now classified
as "micro-purchases" and can be made without obtaining competitive quotes.
However, these purchases are no longer reserved for small businesses. Agencies
can make micro-purchases using a Government Purchase Card (typical credit