Reference

Federal Procurement Dollar Thresholds Explained for SDVOSBs

Federal contracting runs on dollar lines. Cross one and the rules change — a buy that could go to anyone becomes reserved for small business, a competition becomes a sole-source award, a price justified by the market suddenly has to be justified by certified cost data, and a service contract picks up a wage floor. These plain-English pages take one threshold at a time — the micro-purchase and simplified acquisition thresholds, the automatic small-business reserve, the SDVOSB sole-source ceiling, the subcontracting-plan threshold, the certified cost or pricing data (TINA) and Cost Accounting Standards thresholds, and the labor-standards and FFATA reporting thresholds — each with an at-a-glance card showing the current dollar amount, what changes at the line, and the SDVOSB angle, tied to its controlling FAR section or statute and cross-linked to the glossary, regulation explainers, clauses, how-to guides, FAQ, and calculators.

Last updated Update cadence: Quarterly, plus on FAR inflation re-indexing or amendment

Compiled from: Federal Acquisition Regulation (Title 48 CFR, Parts 2, 13, 15, 19, 22 & 52) · Truthful Cost or Pricing Data statute (41 U.S.C. § 3502) and Cost Accounting Standards (48 CFR Chapter 99) · Service Contract Labor Standards (41 U.S.C. § 6702), Davis-Bacon Act (40 U.S.C. § 3142), and FFATA (FAR 52.204-10)

Change log (1)
  1. LaunchedPublished the federal procurement dollar thresholds reference covering the dollar lines that shape an SDVOSB set-aside — the micro-purchase threshold (FAR 2.101), the simplified acquisition threshold and the automatic small-business reserve (FAR 2.101 / 19.203), the commercial simplified-procedures ceiling (FAR 13.500), the SDVOSB sole-source ceiling (FAR 19.1406), the subcontracting-plan threshold (FAR 52.219-9), the certified cost or pricing data / TINA threshold (FAR 15.403-4), the Cost Accounting Standards threshold (48 CFR 9903.201-1), the Service Contract Labor Standards (41 U.S.C. § 6702) and Davis-Bacon (40 U.S.C. § 3142) labor thresholds, and the FFATA subaward reporting threshold (FAR 52.204-10) — each with an at-a-glance quick-facts card showing the current dollar amount, a what-changes-at-the-line list, a key-features table, an SDVOSB-specific angle, watch-outs, FAQPage, Article, Dataset, and BreadcrumbList structured data, primary-source citations, and cross-links into the glossary, regulation explainers, clauses, how-to guides, FAQ, and the size-standard, set-aside eligibility, subcontracting, and price-to-win calculators.

Small-Purchase & Simplified Acquisition

$10,000Micro-Purchase ThresholdThe dollar line below which the government can buy with minimal process — often on a purchase card, without competing quotes or reserving the buy for small business.
$250,000Simplified Acquisition ThresholdThe dollar line below which agencies use the streamlined FAR Part 13 procedures — and, together with the micro-purchase threshold, the band in which most small-business set-asides are made.
$7.5 millionCommercial Products & Services Simplified-Procedures CeilingThe elevated dollar ceiling — $7.5 million, and up to $15 million for certain emergency and support acquisitions — under which agencies may use simplified procedures to buy commercial products and services.

Set-Aside & Small Business

$10,000–$250,000Automatic Small-Business ReserveThe rule that every acquisition above the micro-purchase threshold and at or below the simplified acquisition threshold is reserved exclusively for small business — the band where most SDVOSB set-asides are made.
$4.5M / $7MSDVOSB Sole-Source CeilingThe dollar ceiling under which a contracting officer may award an SDVOSB contract on a sole-source basis — $4.5 million for most requirements and $7 million for manufacturing.
$750,000Subcontracting Plan ThresholdThe dollar line above which a large-business prime must adopt a small-business subcontracting plan — $750,000 for most contracts and $1.5 million for construction.

Cost, Pricing & Audit

$2 millionCertified Cost or Pricing Data (TINA) ThresholdThe dollar line above which a contractor generally must submit and certify cost or pricing data to support a negotiated price — currently $2 million.
$2 millionCost Accounting Standards ThresholdThe dollar line above which a negotiated contract becomes subject to the Cost Accounting Standards — tied to the certified cost or pricing data threshold, with numerous exemptions.

Labor & Reporting

over $2,500Service Contract Labor Standards ThresholdThe dollar line — over $2,500 — above which a service contract must pay locally prevailing wages and fringe benefits set by Department of Labor wage determinations.
over $2,000Construction Wage Rate (Davis-Bacon) ThresholdThe dollar line — over $2,000 — above which a federal construction contract must pay laborers and mechanics locally prevailing wages set by Department of Labor wage determinations.
$30,000Subaward & Executive-Compensation Reporting ThresholdThe dollar line — $30,000 — above which a prime contractor must report its first-tier subcontract awards, and certain executive compensation, in the Federal Subaward Reporting System.

Know which side of the line you're on

The dollar band a buy falls in decides whether it's reserved for you, whether it can be sole-sourced, and what you'll have to prove after award. Check your eligibility, run your size standard, and let the weekly Brief surface the set-asides that fit — so you're bidding in the band where the rules work in your favor.

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