Simplified Acquisition Threshold (SAT)
The dollar threshold below which agencies may use simplified acquisition procedures rather than full and open competition requirements, currently set at $250,000.
The Simplified Acquisition Threshold (SAT) is a dollar limit established by the FAR that determines which procurement rules apply to a purchase. Acquisitions below the SAT are eligible for streamlined procedures that reduce the time and administrative burden required to make an award. The current SAT is $250,000 for most acquisitions, though higher thresholds apply in certain emergency or overseas contexts.
What Simplified Acquisition Procedures Allow
Below the SAT, contracting officers may use purchase orders, blanket purchase agreements, or simplified procedures without the full competitive requirements that apply to larger acquisitions. They may limit competition to small businesses in certain circumstances, use oral solicitations, accept quotations rather than formal proposals, and make awards more quickly. The micro-purchase threshold of
0,000 allows even further streamlining, permitting purchase card purchases without competition.Implications for Small Businesses
Many small businesses specifically target below-SAT opportunities because the reduced competition, faster award timelines, and simpler procurement process favor smaller and less-resourced contractors. Some contracting offices deliberately structure requirements to stay below the SAT to access this faster procurement pathway, though breaking apart requirements to avoid full competition thresholds is prohibited by the FAR.
SAT and Set-Asides
Acquisitions between
0,000 and $250,000 are generally reserved exclusively for small businesses under FAR 19.502-2, unless the contracting officer certifies that two or more small businesses cannot perform the work at reasonable prices. This rule creates a significant protected market for small businesses in the simplified acquisition range.Changes to the SAT
The SAT has been increased multiple times over the years through the National Defense Authorization Act (NDAA). Staying current on the threshold is important because changes affect what procurement procedures apply and what protest rights are available to offerors.
Frequently asked questions
What is the current simplified acquisition threshold?
The current SAT is $250,000 for most domestic acquisitions. A higher threshold of
million applies in contingency or humanitarian operations. The micro-purchase threshold is 0,000, below which purchases can be made by purchase card without competitive requirements for most categories.Are acquisitions below $250,000 automatically set aside for small business?
Acquisitions between
0,000 and $250,000 are generally required to be set aside exclusively for small business competition unless the contracting officer determines that two or more small businesses are not available to perform at fair prices. In practice most acquisitions in this range are competed among small businesses.