Overview of SPA and Micro-purchases (MP)
What are they: For low dollar purchases the government has a lot more flexibility in how the buy and interact with vendors
- The good: The positives about SAP/MP are:
- You don’t need to get onto a vehicle first, so they are great for new vendors
- The government is very familiar with SAP & MP purchases
- If the government uses MP then they can sole-source to you
- If the government uses SAP then they can drastically reduce competition (typically down to three bids)
- This is a great way to build a relationship with a government buy, as it allows them to get a taste of your product or service before making a large purchase
- The bad: SAP/MP have some limitations:
- $12K maximum purchase under MP
- $250K max purchase under SAP
- The government doesn’t have to publish these purchases (though they frequently do get published on SAM.gov)
- These move fast, so the government buyer needs to know you before they make a purchase
How this works in practice
- Learn about the need: You have a conversation with a government buyer and they mention they need something small:
- Office supplies
- A one-day training
- Something else that costs less than $250K
- You scope a solution that is under the SAP/MP thresholds
- You advocate that the buyer buy directly from you through MP/SAP
For more on SAP/MP see our class on vehicles
Other resources
SAM.gov (Individual contract checks)