The Potential Effects of Raising the Micro-Purchase Threshold : George Mason University , June 4 , 2024
The Potential Effects of Raising the Micro-Purchase Threshold : George Mason University , June 4 , 2024
From the report: "This paper examines the effects of raising the Micro-Purchase Threshold (MPT) from its current limit of $10,000. Examining administrative and real costs associated incurred when using simplified acquisition procedures rather than micro-purchase procedures, our research confirms that even an increase of $10,000 to the MPT would deliver savings. Our analysis determined that increasing the MPT from $10,000 to $20,000 would deliver savings of more than $30 million annually, and larger increases would deliver significantly higher savings.
The paper also reviewed the effects of any MPT change on small businesses. While small businesses appear to do better under simplified acquisition procedures, there are significant problems capturing the socio-economic status vendors receiving micro-purchases. The Commercial Platforms Program may provide ways to increase small business participation for micro-purchases while maintaining important compliance regimes.
The paper recommends that Congress seize the opportunity for savings by increasing the Micro-Purchase Threshold. Additionally, it suggests Congress and the Executive Branch make it easier to capture the socio-economic status of the businesses participating in the Commercial Platforms Program that are not traditional government contractors. Finally, both branches should consider incentivizing agencies using the CPP to choose small vendors."
Authors - Murphy, Emily W., McGinn, Jerry, Rivers, Noah, Beutel, RichardSubjects
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