We recently received an interesting query from a CPO about how states handle contingency contracting & purchase thresholds in the wake of natural disasters. A relevant question to be sure given the tremendous damage in Texas and now Florida, and the clean up effort that awaits.
As readers of our Newswire may recall, GSA recently increased purchase thresholds to enable contracting officers to more easily assist in disaster relief. Specifically, that meant raising the micro-purchase threshold from $3,500 to $20,000 and raising the simplified acquisition threshold to $750,000.
But that’s at the federal level. How do states and localities handle this? I’d be surprised if there weren’t already some policies in place that permit state contracting professionals to spend above and beyond thresholds in the event of a disaster, say when the Governor has declared a state of emergency. However, it’s an interesting thought experiment to consider the amount of that increase.
Clearly, some states are more disaster-prone than others, or at the very least have different types of disasters and cost issues. Do floods require a higher threshold amount, or different contingency contracting mechanisms, than wildfire or tornado damages?
We are curious to learn whether others in the community have worked with contingency contracting thresholds, particularly at the state and local levels. If you’re reading this and would care to link to any relevant policies, procedures or reports (like the NASPO report & others linked below), we’d definitely appreciate it.
Part 2. Recovery Planning | FEMA.gov
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