 Ever warned about those small contracts? You think that it's unreasonable to go after anything a million two three million dollars Today's lesson. We're gonna talk about how to win small contracts with the US federal government. Pay attention. We're gonna start right now All right, today's lesson we are discussing simplified acquisition methods. This is Part 13 of the FAR, which is your federal acquisition regulation Bible or handbook You will notice all of your contracts clauses reference the FAR or D FARs for that matter today We're focusing on part 13, which is simplified acquisition procedures Also known as SAP. So if you hear the acronym SAP, you know, it stands for simplified acquisition procedures Now what is simplified acquisition procedures as of February 2018? The government bumped up the thresholds for simplified acquisition procedures They were three thousand and one hundred and fifty thousand respectively Meaning that anything below three thousand dollars was considered a micro purchase They bumped that up to ten thousand dollars and then on the simplified acquisition side The upper limit went from one fifty to two hundred fifty thousand dollars Here is the actual documentation that attests to that you could see here where it talks about bumping up the limit now It's ten thousand dollars where it was before it was three and then the upper limit is two hundred fifty thousand dollars Where before it was a hundred fifty thousand. So what does that mean? It means that anything that falls under simplified acquisition procedures All of those contracts must be awarded to small businesses They must be awarded to people that look like you and I they must be the board to people who remember the definition of small business And your next code you fall underneath the annual the three-year annual revenue or the three-year annual number of employees So if you fall on in those categories, you Are eligible for a simplified acquisition procedures contracts Eric, okay break it down some more now. Let's talk about that. What does that mean? number one when their government agencies are looking at spending those dollar amounts They have a different set of rules that they can follow They don't have to go through the traditional rules of actually putting out jobs for bid and waiting for responses And then make it a decision who to actually give the contract to based on price or based on some more analysis They don't have to do that anymore the rules throughout the window now a new set of rules Applies to contracts that fall in that category So the beautiful thing is now that they've increased that dollar amount a lot of us out there can start doing make it Some some decent-sized money decent working on some decent-sized contracts and still fall under the auspice of these particular rules So you better learn how to play the game so that you can actually maximize your potential because they're spending a lot of money here And as you see that that dollar amounts going to increase by billions of dollars just by bumping it up a hundred thousand dollar notch at the bottom in All right Now when using the simplified acquisition procedures as per the FAR regulations And let me pull that up on the screen so we can have it here Make sure we pull this up for everybody Okay, and what I did was I highlighted a few points that we want to discuss today number one It says that the government or the agency Their primary source for identifying vendors is using Sam So that means everyone out there must be registered in Sam in order to take advantage of this Again, this applies to all small businesses. You don't have to have a certification It applies to regular small business. It also applies to a day hubs on women on veteran own as well But our general small business qualifies on a simplified acquisition procedures number two it says no public display or Advertising is required as per section five dot two oh two Which means if the dollar amount of the actual job of the project of what they're trying to purchase Falls below the simplified acquisition threshold. They don't have to publicly advertise this particular award Hey guys, remember all of you out there saying Eric. How come only 40% of the contracts are In fed bizops, how come they're not putting everything out there? This is why this is one of the reasons why? They don't have to actually put stuff on fed bizops because it falls under simplified acquisition SAP procedures All right number three They can may solicit from a single source. What does that mean? Soul source contracts negotiated contracts isn't the stuff that we all want It's the stuff that we're talking about that takes you from Nobody to somebody from not making any money to actually making money This is the way to do it now So you know that one they've got to get people out of Sam two They don't have to actually public advertisers stuff and three they can actually soul source projects. What more do you want? Well, how do I so Eric? This sounds very exciting, but how do I actually do this? How do you go about doing this is you have to start by what building relationships? You have to know who the contracting officials are you have to know They have to know who you are more importantly How do they get to know you is by you reaching out to them? You've got to put together a capability statement. You have to start soliciting people You've got to make phone calls. You've got to send emails If you're not going after them and letting them know that you exist then you're not going to be in a position to be awarded these contracts One step further we're going to look at what happens for contracts below the $10,000 mark Those are considered micro purchase and micro purchase and let me just pull that up on the screen for you to see Micro purchase Everyone out there. I encourage you if this is something that you're interested in to read this section Within the far of micro purchase. It's only literally one two three. It's four paragraphs long So everyone out there can can read four paragraphs The most important paragraph is thirteen dot two oh three Which talks about purchase guidelines and it says which I love and this is the reason why I'm willing to share this with you And read it out loud it says that micro purchases again Remember below ten thousand because they bumped up the threshold micro purchases may be awarded without soliciting competitive quotations What does that sound like they can just give it to you? All right, and under the guidelines for micro purchases it says that if your cost Seems unreasonable That they actually don't have to verify whether or not it's unreasonable because we're dealing with such a small dollar amount The administrative costs of finding out whether or not your price is reasonable not outweighs Actually doing the job Does everyone get that out there? So if you're a thousand dollars or fifteen hundred dollars, it's a difference They don't even care as per the rules the rule state right here and Thirteen dot two oh three number three the administrative costs of verifying the reason illness of the price for purchases Made more than offset put any potential savings from detecting instances of overpricing So how can you guys lose with this? I Don't see how you can lose. I think everyone out there should be exploring Set SAP for their respective agencies for their respective next codes This is another way that you can break into the federal government marketplace And you could probably start off at a much smaller scale where maybe you're more comfortable Spill some past performance build some history and start working with agencies and start earning money today. Alright, thanks for watching We'll see you next time