Federal Acquisition Streamlining Act (FASA)
The Federal Acquisition Streamlining Act (FASA) is a 1994 law enacted to simplify and modernize the federal procurement process by reducing administrative burden and encouraging more efficient acquisition practices.
What Is the Federal Acquisition Streamlining Act (FASA)?
The Federal Acquisition Streamlining Act (FASA) is a 1994 law enacted to simplify and modernize the federal procurement process by reducing administrative burden and encouraging more efficient acquisition practices.
Raised the Simplified Acquisition Threshold to allow faster purchasing for lower-value contracts
Promoted the use of commercial products and services
Encouraged performance-based contracting focused on outcomes
Supported increased use of electronic procurement systems
Reduced unique government requirements when commercial solutions exist
How It Works in Government Contracting
FASA applies throughout the federal procurement lifecycle, especially during acquisition planning and contract award. Contracting officers use FASA principles when deciding whether simplified acquisition procedures are appropriate, and agencies rely on FASA to justify purchasing commercial items instead of developing custom government solutions.
For contractors, FASA affects solicitation structure, proposal requirements, and compliance obligations. The law helps shorten procurement timelines and lowers transaction costs for both the government and its vendors.
Regulatory Framework
FASA is implemented through the Federal Acquisition Regulation. Key FAR parts influenced by FASA include FAR Part 12 for acquisition of commercial items and FAR Part 13 for simplified acquisition procedures.
Subsequent legislation, including the Clinger-Cohen Act, expanded on FASA's emphasis on commercial and performance-based acquisitions.
Why It Matters for Contractors
Lower Barriers to Entry: FASA lowers barriers to federal contracting, particularly for small businesses, by reducing proposal complexity and compliance costs for qualifying acquisitions.
Fewer Government-Unique Requirements: Contractors offering commercial products benefit from reduced government-unique requirements, allowing them to sell largely the same solutions they offer in the commercial marketplace.
Faster Award Cycles and Reduced Bid Risk: Shorter procurement timelines enabled by FASA improve contractor cash flow, reduce bid and proposal costs, and make federal contracting more accessible for firms of all sizes.
Common Misconceptions
FASA eliminated all procurement regulations.
FASA streamlined and simplified federal procurement processes but did not remove compliance obligations. Contractors are still required to follow the FAR and applicable agency supplements.
FASA applies only to small businesses.
FASA's reforms benefit contractors of all sizes. While small businesses gain particular advantages from reduced complexity, the law's commercial item and simplified acquisition provisions apply broadly.
All contracts qualify for simplified acquisition procedures.
Simplified acquisition procedures apply only to contracts below the Simplified Acquisition Threshold. Larger or more complex acquisitions are subject to standard full and open competition requirements.
Frequently Asked Questions
What is the Simplified Acquisition Threshold?
It is the dollar limit under which agencies may use streamlined purchasing procedures, generally set at $250,000 with certain exceptions for specific acquisition types.
Does FASA apply to all federal contracts?
No. FASA applies primarily to simplified acquisitions and commercial item procurements. Larger, more complex contracts remain subject to standard FAR requirements.
How does FASA help small businesses?
It reduces administrative complexity and makes it easier to compete for lower-value federal contracts by lowering proposal burden and compliance costs.
Are contractors still required to follow the FAR?
Yes. FASA streamlines certain processes but does not remove compliance obligations under the Federal Acquisition Regulation.
Related Government Contracting Topics
Simplified Acquisition Threshold (SAT): The dollar limit for using streamlined procurement methods, raised by FASA to reduce administrative burden for lower-value federal purchases.
FAR Part 12: The Federal Acquisition Regulation section governing the acquisition of commercial products and services, directly shaped by FASA's emphasis on commercial market solutions.
FAR Part 13: The Federal Acquisition Regulation section establishing procedures for simplified acquisitions, providing the operational framework for FASA's streamlining reforms.
Commercial Item Acquisition: The practice of purchasing products and services available in the commercial marketplace, a key priority promoted by FASA to reduce government-unique development costs.
Performance-Based Contracting: A contracting method focused on results rather than processes, encouraged by FASA as a more efficient and outcome-oriented approach to federal procurement.
Clinger-Cohen Act: A subsequent law that expanded on FASA's commercial and performance-based acquisition principles, particularly in the context of federal information technology procurement.
Strategic Importance
The Federal Acquisition Streamlining Act is one of the most consequential procurement reform laws in U.S. history. By elevating the Simplified Acquisition Threshold, promoting commercial item purchasing, and encouraging performance-based contracting, FASA fundamentally reshaped how the federal government buys goods and services.
For contractors, FASA represents an enduring framework that reduces friction, lowers entry barriers, and aligns federal procurement more closely with commercial market practices — making it easier for a broader range of firms to compete for and win government business.