Short answer: the federal micro-purchase threshold is $15,000, and the simplified acquisition threshold is $350,000 (FAR 2.101, checked October 2026). Both were raised by the FAR inflation adjustment that took effect October 1, 2025. Lower micro-purchase limits apply to construction and some services because of wage laws.
Free tool: Check any amount with the free federal contract threshold checker.
The thresholds at a glance
| Micro-purchase threshold | $15,000 general |
|---|---|
| Construction (Davis-Bacon) | $2,000 |
| Services (Service Contract Act) | $2,500 |
| Simplified acquisition threshold | $350,000 |
Contingency, disaster and humanitarian buys can have higher limits. The definitions are in FAR 2.101.
What the micro-purchase threshold means for you
- Purchases at or below it can be made without competitive quotes, often with a government purchase card, if the price is reasonable.
- There's no requirement to set them aside for small businesses, but buyers are encouraged to spread them around, and many go to local small firms.
- How to get them: accept credit cards, get to know the purchase card holders at nearby bases, VA centers and federal offices, and keep your capability statement handy.
What the simplified acquisition threshold means for you
- Buys above the micro-purchase threshold up to $350,000 use simplified acquisition procedures (FAR Part 13): shorter solicitations, quicker evaluations, often an SF-18 or SF-1449.
- They're generally reserved for small businesses when the contracting officer expects at least two capable small businesses to quote at a fair price (the "rule of two").
- This is the sweet spot for small companies bidding their first contracts. Find them on our open contracts board.
Frequently asked questions
What is the micro-purchase threshold in 2026?
$15,000 in general; $2,000 for construction subject to Davis-Bacon; $2,500 for services subject to the Service Contract Act.
What is the simplified acquisition threshold?
$350,000. Buys up to this amount can use simplified procedures and are generally reserved for small businesses.
When did the thresholds change?
The FAR inflation adjustment effective October 1, 2025 raised the micro-purchase threshold from $10,000 to $15,000 and the simplified acquisition threshold from $250,000 to $350,000.
Start here: how to get government contracts.