The General Services Administration (GSA) has released a sweeping legislative proposal designed to modernize the federal acquisition process, enhance competition, and promote innovation. This comprehensive package addresses nearly every aspect of government contracting, from simplified acquisition thresholds and emergency procurement authority to cost accounting standards and small business support. Information was published on the agency’s website July 16, 2025
Key Highlights of the Legislative Proposal
Simplified Acquisition and Micro-Purchase Reforms
To reduce administrative burdens, GSA proposes gradually increasing the simplified acquisition thresholds, allowing agencies to streamline small-dollar purchases while maintaining competition. The micro-purchase threshold would rise from $10,000 to $100,000 over five years, with the Buy American Act still applying to all purchases above $10,000. GSA estimates this change could streamline more than 500,000 transactions annually.
Emergency Procurement Authority
GSA recommends expanding emergency procurement authority, raising thresholds to $15,000 domestically and $25,000 internationally. Simplified acquisition thresholds during emergencies would also increase to $750,000 and $1.5 million, respectively. These changes aim to enhance federal responsiveness during crises without compromising accountability.
Permanent Commercial Solutions Opening (CSO) Authority
The proposal seeks to grant permanent CSO authority to GSA and the Department of Homeland Security, increasing the contract ceiling to $100 million. This change mirrors Department of Defense authorities and is intended to improve access to non-traditional vendors, such as small tech firms and startups. NASA would also gain CSO authority to facilitate acquisition of emerging technologies.
Task and Delivery Order Clarifications
To restore price competition at the task order level, GSA proposes restoring the original intent of Section 876 of the National Defense Authorization Act. This change responds to a 2023 court ruling in the Polaris protest, which significantly limited the scope of GSA’s interpretation and disrupted multibillion-dollar IT acquisitions.
Integrated Award Environment (IAE) Fees
To address a $73 million funding shortfall in the IAE system, GSA proposes modest user fees: $75–$125 for new Unique Entity Identifier registrations and $25–$50 annually for maintenance. These changes are expected to generate up to $40 million annually.
Workforce Development and Training
To strengthen the acquisition workforce, GSA recommends increasing agency contributions to the Acquisition Workforce Training Fund from 5% to 7.5%, supporting training at the Federal Acquisition Institute and Defense Acquisition University.
Support for Small Businesses and Modernization of MAS
The proposal expands support for Small Business Innovation Research and Small Business Technology Transfer initiatives. It also recommends aligning protest thresholds across defense and civilian agencies. GSA’s flagship Multiple Award Schedule program would be updated to better reflect commercial standards and reduce barriers for small vendors.
Cost Accounting and Reporting Reforms
Cost accounting standards would apply only to contracts above $35 million, easing the burden on small businesses while retaining oversight of 90% of contract dollars. Additionally, GSA proposes eliminating outdated reports, such as executive compensation disclosures and duplicative service contract inventories, and streamlining FAIR Act reporting.
Other Measures
The package includes provisions supporting divestment from Sudan-linked companies and offers safe harbor protections for fiduciaries using credible public data.
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