Business Opportunities in Micro
Did you know that 70%
of government procurement transactions are micro-purchases
through credit cards. Micro-purchases
means the acquisition of goods or services up to $3,000.
may be awarded without soliciting competitive quotations, if the
contracting officer or individual appointed considers the price to
be reasonable. Such
purchases must be distributed equitably among qualified suppliers. The
purpose of this program is to reduce administrative costs,
streamline payment procedures in the area of small purchases and to
improve opportunities for small and small disadvantaged business
concerns to do business with government.
Accept the government-wide commercial purchase card.
cards may be either a Visa or MasterCard.
They operate just like any other corporate charge card.
If you do not
currently accept these cards, contact any financial institution or
one of the GSA SmartPay®
establish a merchant account. They
include: Bank of America, Bank One, Citibank, Mellon Bank and US
Bank. These five
contractors provide the GSA SmartPay®
cards to over 300
Federal agencies. GSA
SmartPay® is the
Federal government charge card program.
Federal cardholders use the program to pay for commercial
goods and services, travel related expenses and fleet expenses.
out what federal agencies use the credit card for
FPDS and register.
Login and go to "Standard Reports." Click on "How" and
scroll down and click on "Purchase Card as Payment Method
Report." Type in a beginning and an end date.
*Note: There is a 90-day delay on the DOD data. As an
example, let's just use 1/1/09 - 12/31/09. Click on
"Execute." The agencies that spend the most on credit
card purchases are:
- The Department of
Defense (DOD)- 2.6 billion
- Department of Veteran Affairs- 1.1
- Department of Energy- 136 million
- Department of
- Department of Justice-
- Department of Health and
Human Services- 55 million
- General Services
Administration- 41 million on credit card purchases
Find out what they are buying.
From the last report, click on "Home",
"What", and "Total Actions by
Report." Again, as an example,
let's use 1/1/09 - 12/31/09. Next to the "Department ID
Field" click on the three dots, click "Search", select
"Department of Defense", click on "Select." Click on
"Execute." The DOD % Total Dollars Spent for the
following products and services are:
33 Manufacturing (Metals,
Machinery, Computer, Electronics, Electrical,
Transportation, Equipment, Furniture, Miscellaneous)- 38%
Scientific, and Technical Services- 25%
23 Construction- 8%
56 Administrative and
Support and Waste Management and Remediation Services- 5%
42 Whole Trade- 5%
32 Manufacturing (Paper,
Printing, Petroleum, Coal, Chemical, Plastics, Rubber,
Non-metalic Mineral)- 4%
52 Finance and Insurance-
you accept the government purchase card and know what agencies
are the largest credit card users and have an understanding of
what they buy- Now what? You have to market to these agencies.
As an example, the Department of Defense has a guide on "Marketing
to the Department of Defense: The Basics" Also, if
you need help at any stage, go to the "Department
of Defense: Office of Small Business Programs." They
are there to help you, plus they have to meet their
Defense Contracting Goals
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