Contracting activities may acquire supplies or services that are on the procurement list from commercial sources, if the acquisition is under the micro-purchase threshold and the government purchase card is used.
The correct answer and explanation is :
The correct answer is True.
Explanation:
In the context of government contracting, particularly in the United States, contracting officers and government entities are authorized to acquire supplies or services through various procurement methods. One such method includes purchasing supplies or services from commercial sources under certain thresholds. The “micro-purchase threshold” is a significant factor in determining whether these acquisitions can be made using simpler procurement processes.
The micro-purchase threshold refers to the maximum dollar amount for which government entities are allowed to make a purchase without requiring a formal contract or competitive bidding. As of recent regulations, the micro-purchase threshold is typically set at $10,000 for most purchases (although there may be specific exceptions, especially in different industries or specific circumstances).
Under the Federal Acquisition Regulation (FAR), when acquisitions are below the micro-purchase threshold, contracting activities may procure supplies or services from commercial sources with minimal administrative requirements. This streamlines the procurement process, making it more efficient and cost-effective, especially for lower-value items.
Moreover, government entities are often encouraged to use the Government Purchase Card (GPC) for such acquisitions. The GPC simplifies the purchasing process by allowing authorized personnel to purchase items directly without going through traditional procurement channels. This card is similar to a credit card and can be used for both supplies and services as long as the transaction is within the established limits. The GPC offers benefits such as reducing paperwork, minimizing administrative overhead, and speeding up the acquisition process.
In this case, when the acquisition is under the micro-purchase threshold and the GPC is used, the procurement can be made directly from commercial sources without the need for a formal bidding process, as long as the transaction complies with all applicable procurement rules and regulations.
Thus, it is true that contracting activities can acquire supplies or services under the micro-purchase threshold from commercial sources using the government purchase card.