BidFinds | Government Contracts for IT, Medical, Consulting & Services

Quick Answer

Government Purchase Cards (GPCs) are government-issued credit cards used for micro-purchases under $10,000 (or $25,000 for certain acquisitions). GPCs represent one of the fastest ways to sell to the government—no formal bidding process required. Over 3 million GPC transactions occur annually, totaling $30+ billion in purchases.

$10,000

Micro-Purchase Limit

$30B+

Annual GPC Spend

3M+

Annual Transactions

250K+

Cardholders

What is the GPC Program?

The Government Purchase Card (GPC) program, also known as the government credit card or SmartPay program, allows authorized federal employees to make purchases directly without going through the formal acquisition process. It's designed to streamline small purchases and reduce administrative costs.

For vendors, GPCs represent a significant opportunity to sell to the government quickly and easily. These transactions don't require formal proposals, lengthy evaluations, or complex contract vehicles—cardholders can simply purchase what they need from qualified vendors.

How the GPC Program Works

Cardholders: Federal employees authorized to make purchases for their agency
Approving Officials: Supervisors who approve transactions and monitor cardholder activity
SmartPay Banks: Citibank and U.S. Bank issue cards under GSA's SmartPay contract
Transaction Flow: Cardholder purchases → vendor charges card → bank processes → agency pays
Oversight: Agencies monitor purchases for compliance with regulations

Purchase Thresholds

Different thresholds apply depending on the type of purchase and acquisition method.

Micro-Purchase Thresholds

Standard supplies/services$10,000
Construction$2,000
Services subject to Davis-Bacon$2,000
Acquisitions outside U.S.$25,000
Emergency/disaster response$35,000

Individual Cardholder Limits

• Per-transaction limit (varies by cardholder)
• Monthly spending limit
• Merchant category restrictions
• Agency-specific restrictions
• Individual warrant authority

Limits are set by each agency and can vary significantly between cardholders based on their role and needs.

Split Purchase Prohibition

Cardholders are prohibited from splitting purchases to stay under thresholds. If a requirement totals $15,000, they cannot make two $7,500 purchases. This is considered fraud and can result in card revocation.

Finding GPC Opportunities

Unlike formal contracts, GPC purchases aren't advertised on SAM.gov. Success requires proactive marketing and positioning.

How Cardholders Find Vendors

Primary Sources

1. GSA Advantage (gsaadvantage.gov)
2. AbilityOne/JWOD catalog
3. Agency blanket purchase agreements
4. Existing vendor relationships
5. Internet search (Google, etc.)

Required Considerations

• AbilityOne products (mandatory source)
• Federal Prison Industries (FPI)
• Required sources by agency policy
• Small business set-asides at agency
• Existing BPAs/contract vehicles

Products That Sell Well

• Office supplies and furniture
• IT peripherals and accessories
• Maintenance supplies
• Safety equipment
• Training materials

Services That Sell Well

• Equipment repair
• Subscription services
• Training courses
• Consulting (under threshold)
• Temporary support

Vendor Requirements

Micro-Purchase Requirements

SAM.gov registration NOT required (under $10K)
UEI NOT required (under $10K)
Accept credit card payments
Not debarred or suspended
Competitive pricing

Recommended (Not Required)

SAM.gov registration (makes you searchable)
GSA Schedule contract
Agency BPA/contract vehicle
Level III credit card processing
Government-friendly invoicing

Level III Data Processing

Government cardholders prefer vendors who support Level III credit card data, which captures detailed line-item information for each transaction. This helps agencies with expense reporting and auditing. Contact your merchant services provider to enable this feature.

Strategies for GPC Sales

Register in SAM.gov

While not required, SAM registration makes you searchable to cardholders researching vendors. Many cardholders check SAM.gov before purchasing.

Get on GSA Schedule

GSA Advantage is the primary shopping tool for cardholders. Being listed there dramatically increases visibility to government buyers.

Market to Individual Agencies

Target specific agencies with direct marketing. Identify the small purchase office and provide capability statements.

Establish BPAs

Blanket Purchase Agreements with agencies streamline repeat purchases and create preferred vendor status.

Optimize for Government Buyers

Create government-specific pages on your website, clearly display GSA pricing, and make it easy to purchase with a credit card.

Quick Wins for GPC Sales

✓ Accept Visa and Mastercard (SmartPay)
✓ Display pricing without requiring login
✓ Offer free shipping for government orders
✓ Create quick-checkout options

✓ Provide W-9 and vendor info upfront
✓ Include item-level detail on receipts
✓ Offer government account terms
✓ Respond quickly to inquiries

GSA Advantage Integration

GSA Advantage (gsaadvantage.gov) is the primary online shopping and ordering system for government cardholders.

Why GSA Advantage Matters

• Millions of products searchable
• Pre-negotiated pricing displayed
• Cardholders prefer it (simplified compliance)
• Direct ordering capability
• eBuy for larger quotes
• Automated order processing

Getting Listed

1. Obtain GSA Schedule contract
2. Upload products to GSA Advantage
3. Maintain accurate pricing
4. Update catalog regularly
5. Monitor and respond to RFQs
6. Track sales through GSA systems

Pricing Compliance

GSA Schedule holders must maintain pricing at or below their negotiated ceiling rates. Cardholders often compare GSA Advantage pricing to commercial sources—ensure your government pricing is competitive.

Best Practices

Fast Fulfillment

Government buyers expect quick delivery. Aim for same-day or next-day shipping on in-stock items.

Detailed Receipts

Include line-item detail, shipping, taxes, and order numbers. Cardholders need this for reconciliation.

Tax Exemption

Federal government purchases are tax-exempt. Have a process to handle exemption certificates.

Compliance Ready

Understand Buy American Act, Trade Agreements Act, and country of origin requirements for your products.

Year-End Focus

Government fiscal year ends September 30. GPC spending increases significantly in August-September as agencies spend remaining budgets.

Build Relationships

Repeat business comes from satisfied cardholders. Excellent service creates preferred vendor relationships.

Frequently Asked Questions

Do I need to be registered in SAM.gov for GPC purchases?

No, SAM.gov registration is not required for micro-purchases under $10,000. However, registration makes you searchable to cardholders and is required for purchases above the micro-purchase threshold.

How do I know if a customer is paying with a GPC?

GPCs are issued under the SmartPay program and are standard Visa or Mastercard. You can identify them by the billing address (usually a government facility) or if the customer identifies themselves as a federal buyer.

Can I offer government-specific discounts?

Yes, you can offer government pricing. However, if you have a GSA Schedule, your GPC pricing must not exceed your GSA contract rates. Many vendors offer the same pricing to all government buyers for simplicity.

What if a cardholder wants to exceed the micro-purchase threshold?

Purchases above the micro-purchase threshold require additional procedures (SAM.gov verification, competition requirements). The cardholder may need to use a different procurement method or involve their contracting office.

How can I track my GPC sales to the government?

Your merchant services provider can help identify government card transactions. If you're on GSA Schedule, GSA provides sales reporting through their systems. You can also track by billing addresses or customer identification.

Find Government Contract Opportunities

While GPC purchases don't require formal solicitations, larger opportunities are posted daily. BidFinds helps you discover contracts across federal, state, and local government agencies.

Start Finding Opportunities