SAP & Micro-purchases

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

  1. Learn about the need: You have a conversation with a government buyer and they mention they need something small:
    1. Office supplies
    2. A one-day training
    3. Something else that costs less than $250K
  2. You scope a solution that is under the SAP/MP thresholds
  3. 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)

« » page 1 / 31

Video Transcript(s):