P-Cards (or Purchase Cards) allow the government to buy products & services without competition under a certain dollar threshold. Essentially a government issued credit card, purchases made with P-Cards are most commonly known as micro-purchases. Approximately $21.8 billion was spent in FY2023 on 16.8 million P-Card transactions for open market micro-purchases, orders, and contract payments. Most P-Card transactions are under $10,000 and do not require competition. However, orders against existing contracts and contract payments can be up to $9,999,999.99 (one penny under $10 million), when authorized by the agency.
This 90-minute briefing will address how agencies use P-Cards, how you can find P-Card holders, and the best way to leverage P-Card transactions to gain traction in the Federal Marketplace. Before you accept a micro-purchase, it is important to understand that the government has certain limitations when it comes to P-cards, and what situations make micro-purchases more likely.
Great way to get federal sales started. There are several benefits of P-Cards: Vendors/contractors do not need to register with SAM.gov, the government can reach out to any contractor they want who accepts a P-Card (with no need to make a formal purchase order), and there is no competition requirement. If your company doesn’t have any past performance, micro-purchases are a great way to get past performance.
P-Cards provide hidden contracts. These micro-purchases help build trust and relationships with federal decision makers in government agencies, which can be vital in opening up avenues to get larger contracts later on down the road.
IMPORTANT:
- P-Card buys (to include orders under existing contracts) are not posted on SAM.gov.
- P-Card buys under the micro-purchase threshold do not require competition, though the Government may choose to receive more than one quote if there is limited history purchasing the same product or services.
- Orders placed against existing contracts using the P-Card may require competition in accordance with contract terms and conditions and fair opportunity requirements (i.e., multiple award contracts).
- GSA Contract is NOT Required for P-Card buys made in the open market under the Micro-Purchase threshold.
Q: Is this briefing only for GSA holders?
A: While P-Cards can be used on GSA contracts, this briefing will discuss P-Card ordering procedures for both GSA and Non-GSA contracts as well as how small businesses can find and market to P-Card holders. Small businesses that hold Multiple Award Schedules contracts must accept orders placed with the P-Card up to $250,000 (the Simplified Acquisition Threshold) when requested by the ordering activity. P-Card holders can be any trained employee in federal agencies.
Q: Do vendors need to be registered on SAM.gov to accept P-Cards?
A: No. Any business can accept government P-Cards.
Recommended attending personnel:
Commodity product providers, service industry, small businesses, contracting/accounting personnel, federal sales/business development professionals, quote/pricing personnel.
1 speaker on this recording.
