What is the simplified acquisition threshold?
The simplified acquisition threshold (SAT) is the federal dollar limit below which agencies can use streamlined "simplified" procurement procedures instead of full negotiated procurement. The current SAT is $250,000 for most agencies and $750,000 for emergency or contingency operations.
The Simplified Acquisition Threshold (SAT) determines which procurement procedures a federal agency uses. Below the SAT, agencies can use streamlined procedures under FAR Part 13 (Simplified Acquisition Procedures): less competition, less documentation, faster award.
The current SAT is $250,000 for most federal procurement (raised from $150,000 in 2018), with higher thresholds in specific situations: $750,000 for contingency operations and major disaster recovery, and even higher for some commercial item purchases.
Below the SAT, agencies typically use a Request for Quotation (RFQ) and award based primarily on price plus past performance. They are also encouraged to set aside acquisitions in this range exclusively for small businesses if two or more small businesses are reasonably expected to compete at fair prices.
The Micro-Purchase Threshold (currently $10,000) is a still-lower threshold below which agencies can purchase without competition at all, often using government purchase cards.
For vendors, contracts in the SAT range are often the most accessible entry points to federal contracting — particularly for small businesses that lack the past performance to compete on multi-million-dollar contracts.