Section 846 refers to a provision in the National Defense Authorization Act (NDAA) for Fiscal Year 2018 that authorized the General Services Administration (GSA) to establish a government-wide program for federal agencies to procure commercial products through commercial e-commerce portals. The purpose of this initiative is to modernize the government’s purchasing process for routine, commercially available items by leveraging existing online marketplaces, such as those offered by large private sector platforms.
Section 846 enables federal buyers to make micro-purchases and other simplified acquisitions more efficiently, with the goal of improving transparency, competition, ease of use, and access to commercial offerings.
Legislative Background and Intent
Section 846 was signed into law in December 2017 and titled “Procurement Through Commercial E-Commerce Portals.” It emerged from growing congressional interest in streamlining the acquisition of commercial off-the-shelf (COTS) products and reducing procurement burdens for low-risk, low-dollar purchases.
The provision directed GSA, in coordination with the Office of Management and Budget (OMB), to develop an implementation plan that would:
- Assess existing commercial e-commerce models
- Establish program goals and governance
- Address cybersecurity, data privacy, and supplier responsibility
- Create a framework for agency use of commercial platforms
Section 846 is not intended to replace existing GSA schedules or large acquisitions, but to provide an additional channel for acquiring commonly used commercial products.
Key Features of the E-Commerce Portals Program
The Section 846 initiative introduced several structural features to guide how federal agencies may use commercial e-commerce portals:
- Multiple portal models
Agencies may use more than one commercial provider. Models include e-marketplaces (multiple vendors), e-procurement platforms (buyer-managed), and e-commerce sites (single vendor). - Micro-purchase thresholds
The primary focus is on purchases below the micro-purchase threshold, currently set at $10,000 for most agencies. However, some simplified acquisition procedures may also apply. - Commercial terms and conditions
Purchases made through approved portals follow standard commercial terms, simplifying transactions. - Data reporting and analytics
GSA is responsible for collecting purchasing data from the portals to ensure visibility and monitor compliance with government standards. - Pilot phase implementation
The program was initially launched as a pilot to test scalability, compliance, and market response.
These features collectively enable more agile and responsive procurement for common-use items.
GSA’s Implementation: Commercial Platforms Program
GSA branded its implementation of Section 846 as the Commercial Platforms Program. In June 2020, GSA awarded contracts to three platform providers:
- Amazon Business
- Overstock Government
- Fischer Scientific
These platforms were selected for the initial proof-of-concept phase and made available to selected agencies. The program focused on gathering lessons learned before broader rollout.
Benefits of Using E-Commerce Portals
Section 846 and the resulting program offer a number of advantages for both agencies and taxpayers:
- Streamlined purchasing
Reduced administrative burden for low-dollar, high-volume purchases. - Faster acquisition cycles
Eliminates the need for extensive contract negotiations or procurement packages. - Access to commercial innovations
Agencies can quickly access evolving commercial products and technologies. - Improved transparency
Centralized data collection enhances spend analysis and category management. - Small business participation
Many marketplace vendors are small or disadvantaged businesses.
These benefits support government-wide efforts to modernize procurement and increase operational efficiency.
Considerations and Challenges
Despite its promise, Section 846 raised several concerns and implementation challenges:
- Regulatory compliance
Ensuring that purchases through portals still comply with federal requirements like the Buy American Act or AbilityOne. - Data protection
Addressing security and privacy risks associated with commercial platforms handling federal transaction data. - Fair opportunity and competition
Preventing platform dominance and ensuring a level playing field for vendors. - Transparency of fees
Monitoring how service fees or platform charges may affect total costs. - Integration with agency systems
Making sure that e-commerce platforms can connect with federal financial and procurement systems.
GSA worked closely with OMB and federal stakeholders to develop policies and procedures addressing these issues.
Comparison With Traditional Procurement Methods
| Feature | Section 846 E-Commerce Portals | GSA Schedule Contracts |
|---|---|---|
| Ideal for | Micro-purchases, COTS items | Complex, large-scale buys |
| Transaction time | Minutes to hours | Days to weeks |
| Competition mechanism | Real-time marketplace | Pre-negotiated vendor pool |
| Compliance oversight | Limited, automated | Full FAR compliance |
| Contracting officer involvement | Minimal | Required |
Section 846 portals complement, rather than replace, traditional procurement channels. Agencies retain the discretion to choose the most appropriate method.
Best Practices for Agency Buyers
To use Section 846 portals effectively, agencies should:
- Understand current thresholds and eligible purchase types
- Identify approved commercial platform providers
- Train buyers on portal functionality and compliance expectations
- Track purchases through internal systems for transparency
- Use purchasing data for category management and planning
Following these practices helps agencies remain compliant while benefiting from e-commerce speed and convenience.
The Future of Section 846
GSA’s pilot program under Section 846 continues to evolve. Based on feedback and data from early participants, possible future developments include:
- Expanding to additional agencies and platform providers
- Increasing the purchase threshold for select categories
- Enhancing data analytics and spend tracking capabilities
- Integrating sustainability or socio-economic goals into platform filters
As commercial platforms mature and more vendors participate, Section 846 is expected to become a more prominent tool in the federal acquisition ecosystem.
Conclusion: A Modern Procurement Gateway
Section 846 represents a strategic effort to align federal purchasing with the efficiencies of the commercial e-commerce world. By allowing agencies to buy low-risk commercial products through familiar online platforms, the government can reduce friction, increase responsiveness, and gain better insight into spending patterns.
However, careful oversight and balanced implementation are necessary to protect competition, compliance, and data integrity. For agencies seeking to simplify the acquisition of everyday goods, Section 846 offers a compelling and evolving pathway.
