Purchase Card(P-Card)
A government-issued credit card used for micropurchases and low-dollar acquisitions, streamlining small procurements without formal contracting procedures.
Overview
The Purchase Card (P-Card) is a commercial credit card issued to authorized government personnel for making small purchases directly from vendors. It streamlines procurement for low-value acquisitions by bypassing the formal solicitation and contract award process, enabling faster procurement of routine supplies and services.
Why It Matters in GovCon
P-Card spending represents billions in annual government purchases, typically under the micropurchase threshold ($10,000 for most agencies). Vendors who accept standard credit cards and register with common government purchasing systems can capture this revenue stream. Understanding P-Card limits and agency card programs helps contractors position for spot purchases.
Key Details
- Thresholds: Most P-Card purchases fall under the micropurchase threshold; some agencies allow higher limits for specific categories.
- No Formal Competition: P-Card purchases bypass the normal competition requirements of the FAR.
- Commercial Practices: Agencies often use GSA Advantage, Amazon Business, or other pre-approved purchasing channels.
- Spending Data: P-Card transaction data can reveal agency buying patterns and preferences.
Related Terms
- Micropurchase
- Simplified Acquisition Procedures (SAP)
- General Services Administration (GSA)
- Blanket Purchase Agreement (BPA)
More Acquisition Terms
A payment method where the government transfers funds electronically to contractor bank accounts.
A 1994 law that simplified federal procurement by raising thresholds, reducing paperwork, and promoting commercial item acquisition.
The predecessor to SAM.gov; the legacy system where federal solicitations were posted (replaced by beta.SAM.gov).
A formal review gate in the acquisition process where senior leadership decides whether a program may proceed to the next phase, requires changes, or should be terminated.
Written narrative responses that describe a candidate or contractor capability in specific areas, historically used in federal hiring and some proposal evaluations.
Goods and services used to maintain, repair, and operate facilities and equipment — a major category of government procurement.
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