FinancialProcess

What is the micro-purchase threshold?

Quick Answer: The micro-purchase threshold is $10,000 for most purchases ($2,000 for construction). Purchases below this threshold can be made without competition, often via government purchase cards.

Detailed Answer

The micro-purchase threshold is the dollar amount below which federal agencies can make purchases without obtaining competitive quotations: **Current thresholds (2024):** - General supplies and services: $10,000 - Construction: $2,000 - Higher education research: $10,000 - Services supporting contingency: $20,000 **Key characteristics:** - No competition required - Government purchase cards commonly used - Single quotation sufficient - Simplified documentation - Immediate purchase authority for cardholders **Benefits for small vendors:** - No proposal writing required - Quick decisions and fast payment - No formal solicitation process - Building relationships with buyers - Can lead to larger opportunities **How agencies use micro-purchases:** - Office supplies and equipment - Minor repairs and maintenance - Training and conferences - Software licenses - Small equipment purchases **For contractors:** - Market directly to purchase cardholders - GSA Advantage for online visibility - Focus on convenience and availability - Competitive pricing still matters - Build relationships at the user level **Limitations:** - Cannot split purchases to stay under threshold - Must be fair and reasonable prices - Should rotate among vendors - Audit trail still required **Getting micro-purchase business:** - Register on GSA Advantage if applicable - Contact agency small business offices - Attend vendor outreach events - Focus on quality and responsiveness

Verified Facts

  • Micro-purchase threshold is $10,000 for most supplies and services

    Source: FAR 2.101 (verified 2024-01)

Want the full picture?

This answer is part of our comprehensive guide on this topic.

Read Full Guide: Getting Started with Federal Contracting: Complete Beginner Guide