Department of Health and Human Services - IMB

Simplified procurement of IT maintenance using Purchase Cards

Federal Acquisition Regulations (FAR) and government Purchase Card (credit card) policy currently preclude the use of Purchase Cards to buy annual IT hardware and software maintenance or support. This leads to the use of purchase orders instead. As someone who purchases such services for an IT-intensive organization, I find myself submitting requisitions for as little as $50 or $60. Given the weeks of delay and hundreds of dollars of administrative costs associated with producing a government PO, this makes no sense at all. The FAR and Purchase Card policy should be modified to allow the use of Purchase Cards for maintenance orders that are beneath the $3000 micro-purchase threshold. This would obviate the need to spend increasingly scarce contracting and procurement resources on such small purchases and would move control of IT hardware and software maintenance services closer to the program offices where such services are required. Although my area of expertise is IT, I would suggest that this approach be broadened to include any annual maintenance services that cost less than $3000.

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Idea No. 16245