Federal Procurement Update

The Department of Defense has increased the Micro-Purchase Threshold, Simplified Acquisition Threshold and Special Procurement Authority effective April 2018.

The Micro-Purchase Threshold has been increased to $5,000. Micro-purchase means a purchase of supplies or services using simplified acquisition procedures. Many micro purchases are made via an authorized government purchase card. The threshold can increase up to $10,000 for specified research and contingency programs.

The Simplified Acquisition Threshold has been increased to $250,000. Simplified Acquisition Procedures (SAP) are contracting methods designed to streamline the acquisition process and facilitate the procurement of goods and services. The results include less paperwork and lower costs for both the contractor and the Government. The threshold can increase up to $750,000 for contingency operations.

Changes the thresholds for set-asides for small business from specified dollar amounts to the terms Micro-Purchase Threshold and Simplified Acquisition Threshold. Set-asides for small business will be automatic for anticipated procurements greater than $5,000 but not over $250,000.

Leonard Bean
Procurement Specialist, Norcal PTAC