Short answer: in the current FAR, the micro-purchase threshold is $15,000 and the simplified acquisition threshold is $350,000. Both come from FAR 2.101, and both have exceptions.
The figures, with the exceptions
| Threshold | General figure | Exceptions in FAR 2.101 |
|---|---|---|
| Micro-purchase | $15,000 | $2,000 for construction subject to Davis-Bacon. $2,500 for services subject to the Service Contract Labor Standards. $25,000 in the U.S. and $40,000 outside it for contingency, certain attack defense or recovery, international disaster assistance, and emergency or major disaster response. A higher agency-set figure is possible for institutions of higher education and certain nonprofits and research organizations |
| Simplified acquisition | $350,000 | $1 million in the U.S. and $2 million outside it for the contingency and emergency categories. $650,000 for humanitarian or peacekeeping operations, for contracts awarded and performed, or purchases made, outside the U.S. |
The contingency and emergency figures depend on a determination by the head of the agency, so a supplier will not normally see them on an ordinary order. The Davis-Bacon and Service Contract Labor Standards micro-purchase figures matter more: a purchase that includes installation labor or a covered service can fall under a much lower micro-purchase ceiling than $15,000, even though the product alone would fit under it.
These figures are periodically adjusted for inflation under FAR 1.109, which describes a five-year cycle. The FAR is also being rewritten, and agencies issue class deviations. Check the current text on acquisition.gov before relying on a number, and check your agency's own procedures, which can be tighter than the FAR.
What it changes from the supplier side
A higher micro-purchase ceiling means more orders fit within a purchase card's reach. For a supplier that sells commercial products, that changes a few things in practice.
- More small buys, fewer formal solicitations. A buyer with a $12,000 need can have a different process available than one with a $40,000 need. The quote still has to hold up, but the reader is often a cardholder, not a contracting officer.
- Quotes landing near the line. If your total is close to $15,000, the exact total matters. Shipping, handling and any added service can push an order over a threshold or under it. A supplier should show the total plainly and not split an order to fit.
- A faster decision. Cardholders often decide from the quote alone. Anything missing gets the quote set aside, because they do not have time to chase it.
Do not split a requirement into pieces to stay under a threshold. Buyers and agencies watch for it, and a supplier should not propose it.
What to put on a quote so a cardholder can buy
Keep it short and complete. The goal is that the cardholder can approve it without a follow-up question.
- Each line with a plain description, manufacturer part number, quantity, unit and unit price.
- The total, including shipping, stated clearly.
- Country of origin for each line.
- The channel, such as manufacturer, distributor or retail, if you are showing sourcing.
- Delivery date and ship-to address, and whether the order ships complete or in partials.
- A note that you accept the purchase card, and who to call. Details on that side are in paying a supplier by government purchase card.
- The quote's validity period and one named contact.
For the longer version of what belongs in a quote, see what a complete supply quote includes.
How Lunula Supply handles it
We treat a card-sized order the same as a larger one: confirm each line in writing, check availability of the exact item, send country of origin with the quote, and keep one contact through delivery. If an order is close to a threshold, we show the total plainly and never suggest splitting it. More on the standard we hold ourselves to is in what to expect from a government supplier.
Have a requirement near the card limit? Send it over or see what we supply.
Frequently asked questions
What is the micro-purchase threshold?
In the current FAR 2.101 it is $15,000, with different figures for construction subject to Davis-Bacon, services subject to the Service Contract Labor Standards and certain contingency or emergency situations. Check the definition for your purchase.
What is the simplified acquisition threshold?
It is $350,000 in the current FAR 2.101, with higher figures for contingency and emergency situations and for certain operations outside the United States.
Can an agency set a different figure?
Agency procedures can be stricter than the FAR, and the FAR itself is being rewritten with class deviations. Check the current FAR and your agency's rules before relying on a number.
Should a supplier split an order to stay under the threshold?
No. Splitting a requirement to avoid a threshold is something buyers and agencies look for. Quote the full requirement and let the buyer choose the purchase method.
General information, not legal advice. Figures were checked against FAR 2.101 on acquisition.gov (FAC 2026-01) on the publish date. Agency procedures and the FAR rewrite can change them.