Office of Small and Disadvantaged Business Utilization

How to Do Business with Treasury
Part II: Formal Contract Procedures

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Purchases over $100,000.00 typically use formal contract procedures (but Simplified Acquisition Procedures can be used if the product or service is a Commercial Item less than $5 Million)

• A Business Should Be Economically Sound and Knowledgeable about the Mechanics, Rules and Regulations of Procurement Before Attempting to Bid on a Federal Contract. Contracts Awarded over $100,000 Are Very Competitive
• A Thorough Knowledge of the Federal Acquisition Regulation (FAR) Is Invaluable
• Publicizing the Requirement in FedBizOpps Advertisement Is Required
• Either a Sealed Bid or a Negotiated Procurement Can Be Used to Solicit Prices and Technical Responses
• Procurements expected to exceed $100,000 (using open market procedures) are reviewed using the following considerations:
  1. 8(a) Program [general rule of thumb: up to $3,000,000 ($5,000,000 for manufacturing), use 8(a) program on sole-source basis; over $3,000,000 ($5,000,000 for manufacturing)], use 8(a) program on competitive basis if 8(a) “rule of two” is met - see FAR 19.8

  or

  1. HubZone Small Business Set-Aside Program (competitive) - reserved for HubZone small businesses if HubZone "rule of 2" is met - see FAR 19.13

  or

  1. HubZone Small Business Sole-Source Program - reserved for a HubZone small business if only one HubZone small business can satisfy the requirement [threshold: up to $3,000,000 ($5,000,000 for manufacturing)] - see FAR 19.13
  2. Small Business Set-Aside Program - reserved for small businesses if small business "rule of 2" is met - see FAR 19.5
  3. Full and Open Competition (aka Unrestricted Competition) – if applicable, use price evaluation adjustment for small disadvantaged business concerns and price evaluation preference for HubZone small business concerns

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Updated September 3, 2002