What is the simplified acquisition threshold for Simplified acquisition threshold?

$350,000, per FAR 2.101. FAR 2.101 sets higher figures in support of a contingency operation or disaster response ($1 million inside the United States, $2 million outside) and for humanitarian or peacekeeping operations outside the United States ($650,000). This figure was read from that source on 2026-08-04; thresholds are revised, so check the citation before relying on it in a bid.

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What is the simplified acquisition threshold?

Simplified Acquisition Threshold (SAT)

The simplified acquisition threshold is the dollar level below which agencies may use the streamlined buying procedures in FAR Part 13, and FAR 2.101 currently sets it at $350,000 with higher figures for contingency and humanitarian operations.

Also written as: SAT, simplified acquisition, simplified acquisition procedures.

Below the threshold the machinery gets much lighter: shorter public notice, simpler solicitations, fewer clauses, faster award. Acquisitions above the micro-purchase threshold but not over the simplified acquisition threshold are also reserved exclusively for small business under FAR 19.502-2(a), unless the contracting officer determines there is no reasonable expectation of obtaining offers from two or more responsible small businesses that are competitive on price, quality and delivery.

That reservation is the most under-appreciated fact in federal contracting for a small firm. A very large share of federal buying happens in this band, and in that band the competition is small businesses only, by rule.

The threshold moves. It is subject to periodic inflation adjustment under 41 U.S.C. 1908 and to statutory change, and several figures published on contractor-education sites are years out of date. Check FAR 2.101 rather than a secondary source before relying on it.

What this means when you bid

Work between the micro-purchase threshold and the SAT is reserved for small business by rule. If you are small and registered, that band is where the winnable volume is.

Simplified acquisition threshold: the published figures

Each figure below was read from the regulation cited beside it on 2026-08-04. Thresholds are adjusted for inflation and changed by statute — follow the citation and confirm the figure in effect on your solicitation's date before you rely on it.

Simplified acquisition threshold: $350,000

Simplified acquisition threshold compared with the terms it gets confused with

Simplified acquisition threshold vs Micro-purchase threshold

The micro-purchase threshold is the much lower level below which a buy can be made without competitive quotes at all; the SAT is the ceiling on the simplified procedures above it.

What Micro-purchase thresholdmeans →

Where this definition comes from

Federal contracting is one of the few fields where the authoritative answer is free, public and one click away. These are the sources this page is built from — go and read them.

FAR 2.101→
The FAR's own definitions section.
FAR Part 13→
Simplified acquisition procedures.
FAR 19.502-2→
Total small business set-asides.

This page explains a term in plain English and cites the authority it comes from. It is not legal advice, and the regulation governs where this page and the regulation differ.

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Simplified acquisition threshold— common questions

What is the simplified acquisition threshold?: The simplified acquisition threshold is the dollar level below which agencies may use the streamlined buying procedures in FAR Part 13, and FAR 2.101 currently sets it at $350,000 with higher figures for contingency and humanitarian operations.
What is the difference between Simplified acquisition threshold and Micro-purchase threshold?: The micro-purchase threshold is the much lower level below which a buy can be made without competitive quotes at all; the SAT is the ceiling on the simplified procedures above it.
What is the simplified acquisition threshold for Simplified acquisition threshold?: $350,000, per FAR 2.101. FAR 2.101 sets higher figures in support of a contingency operation or disaster response ($1 million inside the United States, $2 million outside) and for humanitarian or peacekeeping operations outside the United States ($650,000). This figure was read from that source on 2026-08-04; thresholds are revised, so check the citation before relying on it in a bid.
Why does the simplified acquisition threshold matter when you are bidding?: Work between the micro-purchase threshold and the SAT is reserved for small business by rule. If you are small and registered, that band is where the winnable volume is.

Related terms

Micro-purchase threshold
Rule of two
Set-aside
RFQ — Request for Quotation
CPARS — Contractor Performance Assessment Reporting System