Since October 1, 2025, the federal government can buy up to $350,000 of supplies and services using simplified acquisition procedures, and that lighter, faster lane is where many small businesses win their first federal contracts.
Quick answer: The simplified acquisition threshold (SAT) is $350,000 for most buys, up from $250,000, and the micro-purchase threshold is $15,000, up from $10,000. Purchases above the micro-purchase threshold and up to the SAT are generally set aside for small business. Simplified procedures for commercial products and services can reach $9 million under FAR 13.500 ($15 million in certain emergency situations).
Simplified acquisitions run on FAR Part 13. They use requests for quotations instead of formal proposals, informal evaluation, and quick awards, so the paperwork and timelines are much lighter than in a major procurement. This guide covers the current dollar thresholds, how the procedures work, the small business "rule of two," the commercial test program, how the Revolutionary FAR Overhaul is changing Part 13, and how to win these awards.
The simplified acquisition threshold is the dollar ceiling for using FAR Part 13 simplified procedures. FAR 2.101 sets it at $350,000 for most acquisitions, effective October 1, 2025, up from $250,000. Higher SATs apply to contingency, emergency and humanitarian buys. Above the SAT, agencies generally use full FAR Part 14 or Part 15 procedures.
The increase came from FAR Case 2024-001, the FAR Council's five-year inflation adjustment of acquisition-related thresholds, published in the Federal Register on August 27, 2025. The current figures in FAR 2.101 are:
The SAT matters well beyond Part 13. It is the line where many clauses start to apply, where the small business set-aside rule changes, and where you usually go from a short quote to a full proposal. If an older guide or solicitation template still says $250,000, check the date. Anything written before October 2025 is out of date.
Simplified acquisition procedures are the streamlined buying methods in FAR Part 13. Contracting officers use them to buy supplies and services at or below the SAT with less documentation, flexible solicitation and informal evaluation. The aim is to cut administrative cost for agencies and contractors, keep competition going, and give small businesses more chances to win.
The basic idea is that the government should not spend more running a procurement than the purchase is worth. Formal evaluation plans and source selection boards make sense for a $50 million program. They make no sense for a $60,000 equipment buy. Part 13 matches the process to the size of the buy.
Some requirements still apply in full. The contracting officer still has to do market research and find the price fair and reasonable. You still need an active SAM.gov registration with accurate representations and certifications. A purchase order or other simplified award is still a federal contract, with the applicable FAR clauses covering labor standards, equal opportunity, Buy American or Trade Agreements Act rules, and ethics. Even small orders can earn a CPARS evaluation, and invoicing usually runs through an electronic system such as Wide Area Workflow at DoD.
It has, and you should read the solicitation carefully. Under the Revolutionary FAR Overhaul (RFO), the FAR Council released model deviation text for Part 13 on September 18, 2025, and agencies have adopted it by class deviation. GSA's deviation, for example, took effect November 3, 2025. The rewritten Part 13 is called "Simplified Procedures for Noncommercial Acquisitions." It covers only noncommercial products and services at or below the SAT, and only when no commercial product or service meets the need. Simplified procedures for commercial items move to RFO Part 12.
The FAR Council published a proposed rule on September 18, 2026 to make the RFO versions of Parts 8, 12, 13 and others permanent. Comments are due October 19, 2026. Until a final rule is issued, which rules govern a given buy depends on whether the buying agency has adopted the deviation. The proposed rule does not change the dollar thresholds. For a closer look at the deviation, read our breakdown of the FAR Part 13 overhaul and class deviation.
A micro-purchase is a buy at or below the micro-purchase threshold, which FAR 2.101 sets at $15,000 as of October 1, 2025, up from $10,000. Authorized government purchase cardholders can make these buys without soliciting competitive quotes if the price is reasonable. They should spread purchases among qualified suppliers. Small business set-aside rules do not apply.
Some exceptions in FAR 2.101 are lower and some are higher:
Most micro-purchases go on the government purchase card, so the sale looks a lot like a commercial transaction. A single micro-purchase is small, but a cardholder who buys from you every month adds up. To get that repeat business, make it easy to buy from you. Keep your SAM.gov registration active, accept cards, publish clear pricing, answer quickly, and know which offices in your target agencies buy what you sell.
Under FAR 19.502-2(a), every acquisition above the micro-purchase threshold and up to the SAT, now roughly $15,000 to $350,000, must be set aside for small business. The exception is when the contracting officer cannot reasonably expect competitive offers from two or more responsible small businesses on price, quality and delivery. This is the "rule of two."
So in this dollar band, you usually are not competing against large primes at all. Two details from the regulation are worth knowing. If only one acceptable small business offer comes in, the contracting officer should normally award to that firm. If no acceptable offers come in, the set-aside is withdrawn and the requirement is re-solicited without the restriction.
The socioeconomic programs narrow the competition further. FAR 19.203 says there is no order of precedence among the 8(a), HUBZone, service-disabled veteran-owned (SDVOSB) and women-owned (WOSB) programs. At or below the SAT, the contracting officer can award through any of them instead of using a general small business set-aside. Above the SAT, the officer has to consider those programs first.
None of this helps you unless your records are right. Your SAM.gov representations need to show the correct size for the NAICS code in each solicitation. Your SBA certifications need to be current. Misrepresenting size or status can lead to termination, penalties, and suspension or debarment. Our guide to FAR Part 19 small business programs goes deeper on eligibility, and the SBA contracting guide covers how to get certified.
FAR Subpart 13.5 lets agencies use simplified procedures for commercial products and commercial services above the SAT. FAR 13.500 sets the ceiling at $9 million, up from $7.5 million. The ceiling is $15 million for the emergency-related acquisitions described in 13.500(c). The contracting officer must expect, based on market research, that offers will include only commercial products or services.
This program creates a useful middle band. Requirements from $350,000 to $9 million can be bought with simplified evaluation and commercial terms instead of a full Part 15 source selection. Firms that sell commercial products, or services offered on the same terms in the commercial market, can win sizable awards without writing a full proposal. Your offering has to meet the FAR 2.101 definition of commercial product or commercial service, so keep records of your commercial sales and pricing to back up that claim.
The RFO also affects this program. At agencies that adopted the overhaul deviations, commercial acquisitions, including simplified procedures for commercial buys, are handled in the rewritten FAR Part 12 instead of Subpart 13.5. The September 2026 proposed rule would make that permanent. In practice, the solicitation will cite the authority it uses, so check whether it references Part 12 or Subpart 13.5 before you plan your response.
You win simplified acquisitions by being visible before the need comes up, holding the vehicles agencies use, and turning around a short, compliant quote quickly. Many awards under the SAT come from contracting officers' own market research and quote requests rather than big public notices, so preparation and relationships count more than writing a long proposal.
Actions over $25,000 generally have to be synopsized on SAM.gov, but there are exceptions, and many smaller buys never appear there. Contracting officers find vendors through SAM.gov and the SBA's Dynamic Small Business Search, GSA Schedule listings, agency forecasts and industry events. Keep your SAM.gov profile, NAICS codes and capability narrative up to date. You can use OryonIQ Polaris to search SAM.gov opportunities, simplified acquisitions, state and local bids, and FPDS and USAspending award data in one place. Filter by NAICS, agency and set-aside type, and save good leads to a watchlist. For more sources, see where to find government contracts and our roundup of tools for finding contract opportunities.
Under FAR Subpart 8.4, agencies can order from GSA Schedule contracts instead of running a separate open-market competition. Agency IDIQs and blanket purchase agreements work the same way for repeat buys. Holding one makes you an easy purchase. Our guide to getting a GSA Schedule contract walks through the process.
Simplified buys move fast, and a contracting officer short on time asks vendors they already know. Hold capability briefings, go to agency small business events and industry days, and get to know the small business specialists. The OryonIQ events calendar lists industry days, matchmaking sessions and conferences. If you are missing a capability, a teaming partner can fill it. See the power of connections in GovCon.
Keep a simplified acquisition quote short. Show that you understand the requirement, confirm you can deliver it on schedule, give clear and fair pricing, and cite relevant past performance. Then stop. Overbuilt responses make the evaluator's job harder. Underbuilt ones get rejected, so check every required form, representation and certification. Have a capability statement, past performance summaries and pricing templates ready so you can turn a quote around the same day. Our guide to winning government RFP responses helps once you move above the threshold.
Price from real market research and your actual delivery costs. Underpricing to win leaves you with work that loses money, and overpricing loses to the next quote. Treat every award as if it matters, because it does. On-time delivery, correct invoices and good CPARS ratings on small orders give you the past performance that larger competitions ask for. To see where simplified buys sit in the bigger picture, read our overview of the government procurement cycle.
The simplified acquisition threshold is $350,000 for most federal purchases, effective October 1, 2025, up from $250,000. It is $1 million inside the United States and $2 million outside for contingency, emergency and attack-recovery buys, and $650,000 for humanitarian or peacekeeping buys outside the United States.
The micro-purchase threshold is $15,000 for most purchases as of October 1, 2025, up from $10,000. Lower limits apply to construction subject to wage rate requirements ($2,000) and services subject to service contract labor standards ($2,500). Higher limits of $25,000 inside the United States and $40,000 outside apply to contingency and emergency buys.
Generally, yes. Under FAR 19.502-2(a), acquisitions above the micro-purchase threshold and up to the simplified acquisition threshold must be set aside for small business unless the contracting officer cannot reasonably expect competitive offers from two or more responsible small businesses on price, quality and delivery.
Yes. Contracting officers must promote competition to the maximum extent practicable. When the notice is not posted on SAM.gov, FAR 13.104(b) says to consider soliciting at least three sources. The evaluation is informal, and award can go to the best value rather than the lowest price.
FAR 13.500 allows simplified procedures for commercial products and commercial services above the simplified acquisition threshold up to $9 million, including options, up from $7.5 million. The ceiling is $15 million for the emergency-related acquisitions described in FAR 13.500(c).
Yes. Agencies adopting the overhaul class deviation use a rewritten Part 13 that covers only noncommercial acquisitions at or below the simplified acquisition threshold, while simplified procedures for commercial items move to Part 12. A proposed rule to make this permanent was published September 18, 2026. It does not change the dollar thresholds.
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