Micro-Purchase Threshold

The micro-purchase threshold is the dollar amount below which federal agencies may purchase goods and services from any responsible source without soliciting competitive quotes, obtaining SAM.gov registration, or complying with most FAR procurement requirements.

What is the Micro-Purchase Threshold?

The micro-purchase threshold is established in FAR 2.101 and is periodically adjusted for inflation. As of 2024, the standard micro-purchase threshold is:

• $15,000 for most civilian agency purchases
• $35,500 for defense agencies making purchases in support of contingency operations or for authorized research
• $15,000 for construction (no change)
• $15,000 for services

Purchases below the micro-purchase threshold are governed by FAR Part 13.2 (Micro-Purchase Procedures) and are characterized by maximum simplification:

• No requirement to solicit competitive quotes (though encouraged)
• No requirement for the vendor to be registered in SAM.gov (though registration is required for payments above $25,000 via electronic funds transfer)
• No small business set-aside requirement (though FAR encourages distribution of micro-purchases among small businesses)
• No requirement for extensive documentation of the purchase decision
• Payment typically via government purchase card (P-Card/GPC, Government Purchase Card)
• Approval authority may rest with any government employee designated as a micro-purchase authority holder

The government purchase card is the primary payment mechanism for micro-purchases. Agency cardholders, program assistants, office managers, CORs, can make micro-purchases directly from vendors, including from SAM.gov registered vendors, without going through formal contracting channels.

Why the Micro-Purchase Threshold matters for government contractors

The micro-purchase market is enormous, hundreds of thousands of small purchases occur across the federal government every year. For small businesses, the micro-purchase channel represents accessible revenue without the complexity of formal contracting. Getting on agency vendor lists, accepting credit cards, and having your products available through channels like GSA Advantage positions you for micro-purchase revenue that requires no proposal writing and minimal compliance burden. The limitation is that each transaction is small and there is no guarantee of repeat business. Micro-purchases also fall outside the requirement for SAM.gov registration for the purchase itself (though registration is needed for EFT payments above $25,000).

Example

An agency IT coordinator needs 10 USB security keys for new employees. Total cost: $850. The coordinator uses the government purchase card to buy directly from a GSA Schedule vendor's web store without issuing an RFQ or documenting a competition. The purchase is complete in minutes. The vendor ships next day. No contract file, no legal review, no formal source selection. This micro-purchase approach lets the agency meet an immediate operational need while giving the vendor fast, low-friction revenue.

Frequently Asked Questions

Can agencies split a purchase to keep it below the micro-purchase threshold?

No. Splitting requirements to stay under the micro-purchase threshold, called "splitting the purchase", is prohibited under FAR 13.003. Agencies must aggregate reasonably related purchases into a single procurement. Artificially splitting a $30,000 purchase into two $14,000 transactions to avoid competitive requirements is illegal.

Does the micro-purchase threshold apply to construction?

Yes. The construction micro-purchase threshold is $2,000 for purchases subject to the Davis-Bacon Act and $15,000 for other construction purchases. At the micro-purchase level, even construction purchases can be made by direct purchase without competitive solicitation.

Are small businesses given preference in micro-purchases?

FAR 13.003 encourages contracting officers to distribute micro-purchases equitably among responsible suppliers and to purchase from small businesses when they offer items at reasonable prices. However, there is no mandatory set-aside for micro-purchases below the threshold.

How do I position my company for government micro-purchases?

Accept government purchase cards (Visa/Mastercard payment processing). Register in SAM.gov for electronic payment eligibility. List products on GSA Advantage if you hold a GSA Schedule. Maintain a government-specific pricing page on your website. Attend agency outreach events to get onto informal vendor lists maintained by agency offices for routine small purchases.