Micro-purchase ($15,000) and simplified acquisition ($350,000) thresholds explained

The federal micro-purchase threshold is $15,000 and the simplified acquisition threshold is $350,000, both since October 1, 2025. Purchases up to $15,000 can be bought without competition, often with a government purchase card; purchases above that and up to $350,000 use simplified procedures and are generally reserved for small businesses. The micro-purchase limit is lower for construction ($2,000) and for services covered by the Service Contract Labor Standards ($2,500).

These two numbers decide how much paperwork a federal purchase involves, whether it is posted publicly, and whether large companies can compete for it. For a small contractor, the range between them is the friendliest part of the federal market: smaller jobs, fewer forms, and a legal preference for small businesses. Here is how it works and how to get those jobs.

The thresholds that matter to small contractors

The $15,000 and $350,000 figures took effect on October 1, 2025, when the FAR Council adjusted acquisition thresholds for inflation, as the law requires every five years. The micro-purchase threshold rose from $10,000 and the simplified acquisition threshold from $250,000. Higher thresholds apply to purchases supporting contingency operations, emergencies and major disasters.

Micro-purchases: up to $15,000

How they are bought

Most micro-purchases are made with the governmentwide purchase card, a credit card issued to authorized buyers in agencies and military units. Under FAR 13.203, a micro-purchase can be awarded without soliciting competitive quotes if the buyer considers the price reasonable, and micro-purchases should be distributed equitably among qualified suppliers "to the extent practicable".

In practice that means the cardholder often calls a supplier they already know, or checks two or three websites, and buys. There is usually no public notice at all.

What that means for you

• The buyer must already know you. Introduce your business to the contracting offices, facilities and maintenance departments and small business specialists at the federal sites near you: military bases, VA medical centers, national parks, federal buildings, Corps of Engineers offices.
• Accept credit cards. If a cardholder can't pay you by card, you are not an option for most micro-purchases.
• Make quoting easy. A one-page quote template, fast response and a clear price get repeat calls.
• Watch the construction and services limits. A $10,000 repair is a micro-purchase for supplies, but not for construction covered by Davis-Bacon, where the limit is $2,000.

Simplified acquisitions: from $15,000 to $350,000

Reserved for small businesses

This is the key rule. Under FAR 19.502-2(a), each acquisition above the micro-purchase threshold and up to the simplified acquisition threshold is set aside for small business unless the contracting officer does not reasonably expect offers from two or more responsible small businesses competitive on price, quality and delivery. If only one acceptable offer from a small business arrives, the contracting officer should award to it. The rewritten small business rules under the Revolutionary FAR Overhaul keep this reservation for the simplified acquisition range.

Put simply: in this range, large companies are usually kept out, and the agency only needs to believe that two small businesses like yours will quote.

How they are bought

• Request for quotations (RFQ). Often a short notice or a combined synopsis/solicitation on SAM.gov, or an email to a few known vendors for smaller amounts. Contracting officers are told to solicit quotes orally when practicable for small purchases, though for actions over $25,000 that is often not practicable (FAR 13.106-1).
• Simple evaluation. The notice says how award will be made: price alone, or price plus a few factors such as past performance. No formal scoring is required.
• Quotes are not offers. Under FAR 13.004, a quotation cannot be accepted to form a contract. The government issues an order (its offer) and the contract forms when you accept it, in writing or by starting the work.
• Short response times. For actions over $25,000 and at or below the simplified acquisition threshold, the contracting officer sets "a reasonable opportunity to respond", with no fixed minimum (FAR 5.203). Above the threshold, non-commercial solicitations generally get at least 30 days.

Above $350,000

Above the simplified acquisition threshold, agencies use full procedures: sealed bidding or negotiated proposals, longer response times and more documentation. The contracting officer must still set the contract aside when there is a reasonable expectation of offers from at least two responsible small businesses at fair market prices (FAR 19.502-2(b)). The difference is the starting point: below $350,000 the reservation is automatic unless the contracting officer finds otherwise; above it, market research has to show the small businesses are there. Commercial products and services can still use simplified procedures up to $9 million, which is why many service contracts above $350,000 appear on SAM.gov as combined synopsis/solicitations with short instructions.

How to win more small federal purchases: step by step

1. Register in SAM.gov and list every NAICS code you can perform. It is free; see our SAM.gov registration guide.
2. Map the federal buyers near you. List the federal facilities within your service area. Your state page shows which agencies post work there, for example federal contracts in Texas or Virginia.
3. Introduce yourself. Send your capability statement to the contracting office and small business specialist at each site, and ask how they buy work like yours under $15,000.
4. Accept the purchase card and keep a simple quote template ready.
5. Watch SAM.gov daily for RFQs over $25,000 in your NAICS codes and states. Short response times reward the businesses that see notices first.
6. Answer sources sought notices. Your response is the evidence that two small businesses exist, which keeps the job set aside. See how to respond to a sources sought notice.
7. Deliver well and ask for a reference. Small jobs done right become the past performance that wins bigger ones. See how to win your first government contract.

Small purchases by trade

• Construction and repair: anything above $2,000 under Davis-Bacon needs a contract with a wage determination, so even small repair jobs come with prevailing wages and certified payrolls. Browse federal construction contracts.
• Janitorial, landscaping and other services covered by the Service Contract Labor Standards: above $2,500 they come with a wage determination. See janitorial and landscaping contracts.
• Supplies, equipment and IT: the full $15,000 micro-purchase threshold applies, and many purchases happen on GSA Advantage. See is a GSA Schedule worth it?

Frequently asked questions

What is the micro-purchase threshold in 2026?

$15,000 for most purchases, since October 1, 2025. It is lower for construction covered by Davis-Bacon ($2,000) and for services covered by the Service Contract Labor Standards ($2,500), and higher for some emergency and contingency purchases. The definition is in FAR 2.101.

What is the simplified acquisition threshold?

$350,000 since October 1, 2025, up from $250,000. Purchases at or below it can use simplified acquisition procedures with less paperwork, and purchases above the micro-purchase threshold and up to $350,000 are generally reserved for small businesses when the contracting officer expects quotes from at least two of them.

Are micro-purchases posted on SAM.gov?

Usually not. Agencies only have to synopsize proposed contract actions over $25,000 on SAM.gov, and actions from $20,000 to $25,000 are displayed in a public place for at least 10 days. Micro-purchases are often made with a government purchase card from a supplier the buyer already knows, so you have to make yourself known to the buyers.

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

Registering is free and strongly recommended. Most contract awards require an active SAM.gov registration, and buyers find suppliers through it. Some micro-purchases paid by card may not require it, but being registered keeps every option open.

When do these thresholds change next?

The law requires inflation adjustments every five years, on October 1 of years divisible by five, so the next scheduled adjustment is October 1, 2030. The Davis-Bacon, Service Contract Labor Standards and bond thresholds are set by statute and are not adjusted for inflation.

See the small jobs as soon as they post

Simplified acquisitions often have short deadlines, so seeing them on day one matters. BidFox checks SAM.gov every morning and emails you the new notices for your trade and states, with the deadline and set-aside on top. See a free sample alert or browse today's new notices.

The FAR is being rewritten under the Revolutionary FAR Overhaul and many agencies apply the new text through class deviations; the dollar thresholds above are the same, but section numbers can differ.

Last reviewed October 20, 2026. This guide is general information, not legal advice. Rules and dollar thresholds change, so check the solicitation and the official sources linked above.