As a professional, it is crucial to understand the technical jargon used in various domains. In the context of contract actions, one of the most critical questions that arise is, “what is the dollar threshold for public announcement of contract actions?”
The dollar threshold for public announcement of contract actions, commonly known as the threshold for public contract announcement, is the minimum value of a contract that a federal agency must publicly announce before awarding it. The purpose of publicizing a contract action is to ensure transparency, promote competition, and prevent any potential corrupt practices.
The dollar threshold for public announcement of contract actions varies and depends on different factors such as the type of procurement, the agency`s size, and the government jurisdiction. As per the Federal Acquisition Regulation (FAR), the threshold for public announcement of contract actions for most procurement actions is $25,000.
However, for construction or architectural-engineering services, the threshold for public announcement of contract actions is $150,000. For services to be performed in the US, the threshold for public announcement of contract actions is $7.5 million.
The FAR also prescribes that agencies must report all contract actions exceeding the above thresholds to the government`s System for Award Management (SAM). This reporting system helps to improve the procurement process and increase transparency by having adequate records of all contracts awarded.
In conclusion, the dollar threshold for public announcement of contract actions is a critical aspect of government procurement. Knowing the threshold for public announcement of contract actions assists businesses that wish to bid on government contracts to know the values of contracts they can expect the government to announce publicly. It also ensures that the procurement process remains open and competitive, benefiting both contractors and the government.
