What is the Simplified Acquisition Threshold (SAT)?

The Simplified Acquisition Threshold (SAT) is a dollar amount below which federal agencies may use simplified acquisition procedures, reducing administrative burden for both government and contractors: **Current thresholds (as of 2024):** - Standard SAT: $250,000 - Contingency operations: $800,000 - Disaster response: $800,000 - Overseas contracts supporting humanitarian/peacekeeping: $1.5 million **Simplified procedures below SAT allow:** - Reduced competition requirements - Oral quotations for smaller purchases - Less formal documentation requirements - Faster procurement timelines - Combined synopsis/solicitation formats **Key characteristics:** - Contracts below SAT are typically set aside for small business - Commercial item procedures are common - Past performance may be simplified or waived - Bond requirements may be reduced - Source selection is less formal **For contractors:** - Opportunities may post for shorter periods - Proposals can be simpler and shorter - Past performance requirements less stringent - Good entry point for new contractors - Payment terms may be faster **Note on micro-purchase threshold:** Purchases below $10,000 (micro-purchase threshold) can be made without competition, often via government purchase cards. This is separate from SAT procedures.