Optimizing Procurement: The Effect of GPC Limit Increases on Acquisition Speed and Oversight

Abstract

To support streamlining governmental purchase and cost savings, this project explores how increasing Government Purchase Card (GPC) spending limits can enhance procurement practices within the Department of Defense (DoD) while maintaining rigorous oversight and accountability. The study examines the potential benefits associated with raising the Micro-Purchase Threshold (MPT) to $25,000, focusing on improvements to acquisition speed, administrative burden reduction, and responsive procurement processes. To ensure proper checks and balances in this high-limit GPC environment, the research addresses comprehensive oversight mechanisms, such as data analytics tools, robust auditing protocols, and supportive leadership. At the same time, the project acknowledges some of the key risks that may arise from the elevated GPC limit, to include heightened fraud potential, and compliance challenges. The research provides some recommended mitigation measures to safeguard against these risks. Finally, by collating policy analysis, stakeholder perspectives, best practices in financial oversight, and historical contracting data, the project provides insights aimed to support decision-makers as they consider policy adjustments to optimize DoD procurement efficiency, accountability, and transparency.