What Is the Simplified Acquisition Threshold?
The simplified acquisition threshold (SAT) is $350,000. Federal purchases at or below it can use simpler, faster buying procedures.
Simplified acquisition threshold (SAT) in plain English
The SAT rose from $250,000 to $350,000 on October 1, 2025.
Buys above $15,000 up to the SAT often use short requests for quotations. Above $15,000, a buy must be set aside for small businesses when the rule of two is met.
Several rules start at the SAT. The limitations on subcontracting apply to plain small business set-asides above it, and agencies must file CPARS evaluations for most contracts above it.
Related terms
- Micro-purchase threshold: The micro-purchase threshold is $15,000. Agencies can make most buys at or below it without competing quotes, often with a government purchase card.
- RFQ (request for quotations): A request for quotations (RFQ) is a solicitation asking businesses for price quotes. It's common on smaller and simpler federal purchases.
- Rule of two: The rule of two requires a set-aside for small businesses when at least two responsible small businesses are expected to offer at fair market prices.
- Limitations on subcontracting: The limitations on subcontracting rule caps how much of a set-aside contract a small business can pay other firms to perform. On services, the cap is 50%.
Put it to work
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