Simplified Acquisition Threshold (SAT)

What is Simplified Acquisition Threshold?

The Simplified Acquisition Threshold (SAT) is the dollar level, defined in the FAR, below which contracting officers may use the streamlined methods of FAR Part 13 — simplified acquisition procedures — rather than the more formal sealed-bidding or negotiated processes. The SAT is generally $250,000. A separate, lower level, the micro-purchase threshold, marks the smallest acquisitions; the FAR's micro-purchase threshold was increased to $15,000 effective October 1, 2025. Both thresholds are periodically adjusted, and agencies may set deviations in specific circumstances.

These thresholds shape how the government buys. Acquisitions of commercial items between the micro-purchase threshold and the SAT (and, under special authority, higher for certain commercial products and services) can use simplified procedures, which reduce documentation and competition formalities while still requiring reasonable competition. Acquisitions between the micro-purchase threshold and the SAT are also generally reserved for small businesses under FAR 19.203 when the rule-of-two is met.

For vendors — especially small businesses — the band between the micro-purchase threshold and the SAT is strategically important: it is where simplified procedures and small-business reservation rules make competition more accessible. Knowing where an opportunity falls relative to these thresholds helps a vendor anticipate the procedure, documentation, and competitive field.