Simplified Acquisition Threshold (SAT)

The Simplified Acquisition Threshold (SAT) is the dollar amount below which agencies can use streamlined procurement procedures. Currently set at $250,000.

How It Works

Between the micro-purchase threshold ($10,000) and the SAT ($250,000), agencies use simplified acquisition procedures — shorter solicitation periods, simplified evaluation criteria, and less paperwork than full and open competition. This range is ideal for small businesses getting started in government contracting. Purchases under the SAT are automatically set aside for small businesses unless the contracting officer determines there is not a reasonable expectation of receiving two or more competitive offers.

Example

An agency needs $150,000 in IT equipment. Under simplified acquisition procedures, they post a combined synopsis/solicitation for just 15 days (vs. 30+ for larger contracts) and receive quotes from three small businesses.

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