hi and welcome to tenderspage channel
if you're on this here in the first
place
you're probably interested in working
with the federal government
we've all heard about the juicy
contracts that you can get once you
register with the system for award
management or s a.m. if you're a small
business owner you probably know about
set aside funds for small business
contract that's all old news . but what
if I told you there was a way for you to
work with the federal government without
all the drawn-out process of going
through Sam registration and a
complicated bidding process that's right
you don't have to spend hours working
over your registration or combing
through the fed biz ops data banks
because with federal micro purchases
your small business can work with the
government with a simple credit card
transaction sounds too good to be true
right
well it's not in the average year the
federal government spends somewhere
between 15 and 20 billion dollars on
micro purchases give me just a minute
and i'll explain how it works
the micro purchase system was developed
by the federal government as a way to
ensure that the government has
discretionary funds on hand for senior
officials to diverge in case of
emergencies these expenditures happen
when the government needs work done but
because it's such a small project it's
not worth issuing a procurement to have
contractors compete for it
that means micro purchases are small
projects your small business should be
well able to take care of the maximum
threshold for any micro purchase is 3500
dollars it used to be three thousand
dollars but was raised on october first
2015 there are a few exceptions that
kick in in case of nuclear biological
chemical or radiological attack but as a
rule you can count on a maximum of
thirty-five hundred dollars micro
purchases are done at the discretion of
senior officials will hold a government
purchase card or GPC more often referred
to as a pcard p card holders are found
in most federal agencies including the
Department of Defense Veterans
Administration Department of Justice
Department of the Interior Health and
Human Services
Department of Agriculture Department of
Homeland Security the Postal Service
Department of Transportation and the
Department of Commerce state and local
governments also issues similar cards to
their officials p card purchases are
done with minimal paperwork and there's
no registration necessary to qualify so
how does it work
government expenditures always start
with a decision to procure if the
government needs work done, somebody
makes the decision to procure in some
cases that leads to the government
issuing the procurement the kind you see
on the fed biz op site that's because
when the expected expenditure reaches
the 3500 dollar mark government agencies
are required to put those procurements
out into the open market and allow
competition between contractors if the
scope of the project falls below that
threshold however the agency ops for a
micro purchase a micro purchase is
usually undertaken by an organization
the agency has worked with before or by
a local business that accepts payments
with the P cards note it's important
that your business is able to accept
visa or mastercard in order to be able
to process a micro purchase if your
business usually runs through a third
party such as paypal the government
considers it a high-risk expenditure and
will be less likely to seek you out
that's something you should keep in mind
if you run a small business and hope to
work with the government at some point
in the future
how can I get in on this if you want to
make sure your business has a shot at
winning these micro purchases there are
a few things you can do the main thing
is to remember that micro purchases are
done without competition or procurement
so you've got to find ways to make sure
the decision-makers know you're ready
and willing to help them out
I've got a few suggestions ready for you
to help your thinking one make sure your
website makes it clear you're available
when the decision-maker goes to find a
firm to take care of a micro purchase
the most likely thing for them to do is
go online and Google local companies
that can handle the job
naturally it's a given that you'll need
a good looking website and do all you
can to
ranked high on search engines but you'll
also want to include the smart play logo
on your site and marketing materials
just to make sure it's clear that you're
willing to process p card purchases to
introduce yourself to pee card holders
like anybody else government p card
holders prefer to do business with
people they already know so if you take
the time to visit them personally
introduce yourself and make sure they
know you can handle any micro purchases
that come along you'll increase your
odds of landing those government jobs
three develop professional relationships
and track procurement you'll also want
to make sure to keep track of any
government procurements that have been
issued
there's plenty of work out there for
your small business and if you're Sam
registered it pays to check on the
tenders page database so you can keep
track of the latest government
procurements there's always plenty of
work the government needs done and
there's no reason to deny yourself a
piece of that set aside action so let me
give you the takeaway the federal
government spends roughly 20 billion
dollars a year in micro purchases of
less than 3,500 dollars apiece these
micro purchases are simple credit card
transactions that require no red tape
with micro purchases there's no
requirement for competition between
contractors there's no requirement for
Sam registration and there's no
complicated bidding process to qualify
all you need to do for your small
business to get a chance at these
smaller projects is to make it clear you
accept government smart pay cards and
get to know some government employees
unlike everything else in the federal
government micro purchases are quick
easy and don't require a huge file of
paperwork give it a try today please
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