Federal Acquisition Streamlining Act (FASA)

The Federal Acquisition Streamlining Act (FASA) of 1994 is landmark federal legislation that significantly reformed government procurement by raising the simplified acquisition threshold, creating preferential treatment for commercial item purchases, establishing multiple award task order contracts, and reducing regulatory burdens on contractors and the acquisition workforce.

What is FASA?

FASA was enacted in response to widespread criticism that government procurement was too slow, bureaucratic, and costly relative to commercial purchasing. Its key reforms included: raising the small purchase threshold (now called the simplified acquisition threshold) from $25,000 to $100,000, creating a streamlined commercial item acquisition preference under FAR Part 12, establishing statutory authority for multiple-award task order and delivery order contracts (IDIQs), reducing the number of required certifications contractors must provide, and allowing agencies to use commercial contract terms and conditions when buying commercial products and services. FASA's commercial item preferences were particularly transformative, they allowed agencies to buy COTS products without extensive cost or pricing data requirements, using the commercial marketplace's competitive pricing as evidence of reasonableness. The law also codified the preference for performance-based acquisition and laid groundwork for many of the simplified procedures still in use today. FASA's legacy is visible throughout the current FAR, where its reforms continue to shape the legal framework for simplified acquisitions, commercial item purchasing, and multiple-award vehicles.

Why FASA matters for government contractors

FASA's reforms directly benefit contractors: simplified acquisition procedures reduce bid costs, commercial item treatment eliminates burdensome cost accounting requirements for commercial products, and multiple-award IDIQ authority opened up the large contract vehicle market that now generates trillions in federal contract spending. Understanding FASA's legal underpinnings helps contractors invoke commercial item treatment and simplified procedures appropriately.

Example

A software company selling a commercial data analytics platform to federal agencies benefits directly from FASA's commercial item preferences. Under FAR Part 12 (which FASA created), the agency purchases the platform using commercial terms and conditions, does not require the company to submit certified cost or pricing data, and accepts commercial license terms, a dramatically simpler transaction than would have been possible under pre-FASA acquisition rules.

Frequently Asked Questions

What is the current simplified acquisition threshold (SAT)?

The simplified acquisition threshold is currently $250,000 for most federal purchases (elevated from FASA's original $100,000 through subsequent legislation). Purchases at or below the SAT can use simplified acquisition procedures with reduced competition and documentation requirements.

Did FASA create the IDIQ contract authority?

FASA codified and strengthened the statutory authority for multiple-award task order and delivery order contracts, establishing the legal framework for large IDIQ vehicles. Subsequent legislation and regulations have expanded IDIQ vehicle authority further, but FASA was the foundational statutory authorization.

What is FAR Part 12 and how does it relate to FASA?

FAR Part 12 (Acquisition of Commercial Products and Commercial Services) implements FASA's commercial item acquisition preferences. It allows agencies to use commercial terms, streamlined solicitation procedures, and existing commercial pricing as the basis for price reasonableness determinations when buying items sold commercially.

Is FASA still in effect?

Yes. FASA's reforms have been codified into permanent law and the FAR, and they continue to govern federal procurement. Subsequent legislation has built on FASA's foundation, but the core commercial item preferences and simplified acquisition authorities created by FASA remain active and influential.