Get Acquisition Alert 17-03

Simplified Acquisition Procedures Policy The simplified acquisition threshold (SAT) is $250,000. The SAT can vary depending on the particular acquisition situation.

The $150,000 is a cumulative limit for services provided by any individual consultant or consulting firm. Such services must be under the direction and control of a full-time employee of the local agency in responsible charge.

The Simplified Acquisition Threshold (SAT) is the dollar amount in federal acquisition represented by the anticipated award amount of a contract, under which contracting officers are directed to use simplified acquisition procedures to solicit and award the resulting contracts. As of summer 2022, the SAT is $250,000.

(c) Except for the acquisition of commercial products or commercial services (see 5.203(b)), agencies shall allow at least a 30-day response time for receipt of bids or proposals from the date of issuance of a solicitation, if the proposed contract action is expected to exceed the simplified acquisition threshold.

Most notable is the long-standing requirement for DoD contracting officers to determination in writing that an acquisition exceeding $1 million in value meets the commercial item definition in FAR 2.101 and to include the written determination in the contract file.

The Fiscal Year 2018 NDAA provided that the Micro-Purchase Threshold for all types of recipients would be $10,000 and that the Simplified Acquisition Threshold would be $250,000. OMB implemented the above described statutory changes in Memorandum M-18-18.

The key distinguishing difference between multi-year contracts and multiple year contracts is that multi-year contracts, defined in the statutes cited at 17.101, buy more than 1 year's requirement (of a product or service) without establishing and having to exercise an option for each program year after the first.

Simplified Acquisition Thresholds (SAT) The Simplified Acquisition Threshold (SAT) (FAR 2.101) is $250,000.