Simplified Acquisition Threshold
$250,000
Also known as: SAT, simplified acquisition limit
At a Glance
- Current amount
- $250,000 (standard; higher for contingency/overseas buys)
- Where it is set
- FAR 2.101 definition, implemented by FAR Part 13
- What changes at the line
- At or below it, streamlined simplified-acquisition procedures apply; above it, full FAR Part 15 negotiation or Part 14 sealed bidding
- Inflation-adjusted?
- Yes — re-indexed periodically under FAR 1.109
- Applies to
- Most acquisitions above the micro-purchase threshold; special higher SATs apply to contingency operations
What It Is
The simplified acquisition threshold is the dollar line — $250,000 for most acquisitions under FAR 2.101 — below which agencies may use the streamlined procedures of FAR Part 13 instead of the full negotiation rules of Part 15 or the sealed-bidding rules of Part 14. Simplified acquisition procedures are designed to reduce administrative burden: they allow abbreviated solicitations (often a Request for Quotation), reduced documentation, and faster award. Crucially, the band between the micro-purchase threshold and the simplified acquisition threshold — roughly $10,000 to $250,000 — is automatically reserved for small business under FAR 19.203 and 13.003, which is where a large share of SDVOSB and other small-business set-asides live. Elevated simplified acquisition thresholds apply to acquisitions supporting contingency, humanitarian, or combat operations (for example, $800,000 domestically and $1.5 million overseas). Commercial products and services have a separate, much higher simplified-procedures ceiling under FAR 13.500.
What Changes at This Dollar Level
- At or below the SAT, the contracting officer may use FAR Part 13 simplified procedures — abbreviated solicitations, reduced documentation, and quicker award.
- Every acquisition above the micro-purchase threshold but at or below the SAT is automatically reserved exclusively for small business (subject to the rule of two).
- Above the SAT, the buy generally shifts to full negotiation (FAR Part 15) or sealed bidding (FAR Part 14), with more competition and documentation.
- Higher simplified acquisition thresholds apply to contingency, humanitarian, and combat-support acquisitions.
Key Features
| Feature | What It Means |
|---|---|
| Streamlined procedures | Below the SAT, agencies use FAR Part 13 — abbreviated solicitations (often an RFQ), less documentation, and faster award than full negotiation. |
| The small-business reserve band | The zone from the micro-purchase threshold up to the SAT is automatically set aside for small business, making it the heartland of SDVOSB set-aside activity. |
| The line to full competition | Cross the SAT and the buy generally becomes a full FAR Part 15 negotiated procurement or a Part 14 sealed bid, with more formality and documentation. |
| Elevated contingency amounts | For acquisitions supporting contingency, humanitarian, or combat operations, the SAT rises substantially, expanding the range where simplified procedures apply. |
What It Means for an SDVOSB
The band between the micro-purchase threshold and the simplified acquisition threshold is the single most important range for a service-disabled veteran-owned small business, because FAR 19.203 automatically reserves it for small business — so buys from roughly $10,000 to $250,000 are not open competition, they are small-business-only unless the rule of two fails. Within that reserve, the contracting officer still must consider an SDVOSB (or other socioeconomic) set-aside before a general small-business set-aside. That makes the SAT a bright line worth watching: a solicitation just under it should almost always be a small-business or SDVOSB set-aside, and one written as full-and-open in that band is a candidate for a set-aside challenge. Simplified acquisitions also move fast, so an SDVOSB that is SAM-registered, VetCert-certified, and quick to quote is well positioned to win in this band.
Watch Out For
- Confusing the SAT with the micro-purchase threshold — set-aside obligations attach above the MPT and up to the SAT, not below the MPT.
- Assuming simplified means 'no competition' — FAR Part 13 still expects the contracting officer to promote competition to the extent practicable.
- Overlooking the automatic reserve — a full-and-open buy in the $10,000–$250,000 band may be improperly bypassing the small-business set-aside.
- Applying the standard $250,000 figure to a contingency acquisition, where a higher SAT may apply.
Run the Numbers
Frequently Asked
What is the simplified acquisition threshold?
The simplified acquisition threshold is the dollar line — $250,000 for most acquisitions under FAR 2.101 — below which agencies may use the streamlined procedures of FAR Part 13 rather than full negotiation (Part 15) or sealed bidding (Part 14). Simplified procedures allow abbreviated solicitations, reduced documentation, and faster award. Higher SATs apply for acquisitions supporting contingency, humanitarian, or combat operations.
Why does the simplified acquisition threshold matter for SDVOSBs?
Because the range between the micro-purchase threshold and the simplified acquisition threshold — roughly $10,000 to $250,000 — is automatically reserved for small business under FAR 19.203 and 13.003. Within that reserve, the contracting officer must consider an SDVOSB or other socioeconomic set-aside before a general small-business set-aside. So the SAT effectively caps the band where the largest share of SDVOSB set-asides is made, and a full-and-open buy in that band may be improperly bypassing the reserve.
What happens when an acquisition exceeds the simplified acquisition threshold?
Above the SAT, the acquisition generally moves out of FAR Part 13 simplified procedures into full negotiation under FAR Part 15 or sealed bidding under FAR Part 14, with more competition, more documentation, and a formal solicitation such as an RFP or IFB. Set-asides are still available above the SAT, but they are discretionary rule-of-two decisions rather than the automatic reserve that applies below it.
Primary Sources
- FAR 2.101 — Definitions (simplified acquisition threshold)
- FAR 13.003 — Policy (small-business reserve)
- FAR Part 13 — Simplified Acquisition Procedures
Plain-English reference, not legal advice. Acquisition-related dollar thresholds are periodically re-indexed for inflation and the underlying FAR sections and statutes are amended from time to time — always confirm the current figure and its exceptions against the FAR and the actual solicitation before relying on it, and consult qualified counsel for your specific situation.
Change log (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.