Question 1

What is the simplified acquisition threshold (SAT)?

Accepted Answer

The current simplified acquisition threshold is $350,000 (FAR 2.101). The frequently cited $150,000 (and the interim $250,000) are outdated. Contingency-operation amounts are $1 million inside the U.S. and $2 million outside; humanitarian/peacekeeping is $650,000 outside the U.S. [Source: FAR 2.101, Definitions (acquisition.gov) — "Simplified acquisition threshold means $350,000, except for—(1) Acquisitions of supplies or services that ... support a contingency operation ... (i) $1 million ... inside the United States; and (ii) $2 million ... outside the United States" https://www.acquisition.gov/far/2.101]

Question 2

What is simplified acquisition?

Accepted Answer

Simplified acquisition is a set of less rigorous methods for entering into relatively low-dollar contracts (at or below the simplified acquisition threshold) that do not require the elaborate, formal solicitation techniques of sealed bidding or negotiation. Agencies must use these procedures to the maximum extent practicable for purchases not exceeding the SAT. [Source: FAR 13.003, Policy (acquisition.gov) — "Agencies shall use simplified acquisition procedures to the maximum extent practicable for all purchases of supplies or services not exceeding the simplified acquisition threshold." https://www.acquisition.gov/far/13.003]

Question 3

Which acquisitions must be set aside for small business under simplified acquisition procedures?

Accepted Answer

Each acquisition with an anticipated dollar value above the micro-purchase threshold but at or below the simplified acquisition threshold is automatically reserved (set aside) for small business concerns. [Source: FAR 13.003, Policy (acquisition.gov) — "Acquisitions of supplies or services that have an anticipated dollar value above the micro-purchase threshold, but at or below the simplified acquisition threshold, shall be set aside for small business concerns." https://www.acquisition.gov/far/13.003]

Question 4

May a requirement be broken down into smaller purchases to permit use of simplified acquisition procedures?

Accepted Answer

No. Requirements aggregating more than the micro-purchase or simplified acquisition threshold (including options) must not be broken down into several smaller purchases merely to permit use of simplified procedures or to avoid the requirements that apply above the threshold. [Source: FAR 13.003, Policy (acquisition.gov) — "Do not break down requirements aggregating more than the simplified acquisition threshold ... into several purchases that are less than the applicable threshold merely to permit use of simplified acquisition procedures." https://www.acquisition.gov/far/13.003]

Question 5

What is the preferred method to purchase and pay for micro-purchases?

Accepted Answer

The Governmentwide commercial purchase card (GPC) is the preferred method to purchase and to pay for micro-purchases. Purchases at or below the micro-purchase threshold may also use any of the methods in FAR subpart 13.3. [Source: FAR 13.201, General — micro-purchases (acquisition.gov) — "The Governmentwide commercial purchase card shall be the preferred method to purchase and to pay for micro-purchases." https://www.acquisition.gov/far/13.201]

Question 6

What is a purchase order?

Accepted Answer

A purchase order is an offer by the Government to buy supplies or services, including construction and research and development, upon specified terms and conditions, using simplified acquisition procedures. It is one of the methods available under FAR subpart 13.3. [Source: FAR 13.201, General — micro-purchases (acquisition.gov) — "Purchases at or below the micro-purchase threshold may be conducted using any of the methods described in subpart 13.3." https://www.acquisition.gov/far/13.201]

Question 7

What is a Blanket Purchase Agreement (BPA)?

Accepted Answer

A BPA is a simplified method of filling anticipated repetitive needs for supplies or services by establishing “charge accounts” with qualified sources. A BPA is not itself a contract; it is a charge-account arrangement that serves as a baseline for future orders. [Source: FAR 13.303-1, Blanket purchase agreements — general (acquisition.gov) — "A blanket purchase agreement (BPA) is a simplified method of filling anticipated repetitive needs for supplies or services by establishing “charge accounts” with qualified sources." https://www.acquisition.gov/far/13.303-1]

Question 8

Must the Governmentwide commercial purchase card and electronic purchasing be used in simplified acquisitions?

Accepted Answer

Yes. Agencies must use the Governmentwide commercial purchase card and electronic purchasing techniques to the maximum extent practicable in conducting simplified acquisitions. [Source: FAR 13.003, Policy (acquisition.gov) — "Agencies shall use the Governmentwide commercial purchase card and electronic purchasing techniques ... to the maximum extent practicable in conducting simplified acquisitions." https://www.acquisition.gov/far/13.003]

Question 9

Under simplified acquisition procedures, from what source must the contracting officer seek the most advantageous purchase?

Accepted Answer

The contracting officer must promote competition to the maximum extent practicable and obtain supplies and services from the source whose offer is the most advantageous to the Government, considering the administrative cost of the purchase — not simply the lowest price. [Source: FAR 13.003, Policy (acquisition.gov) — "Agencies shall use simplified acquisition procedures to the maximum extent practicable for all purchases of supplies or services not exceeding the simplified acquisition threshold." https://www.acquisition.gov/far/13.003]

Question 10

Are micro-purchases exempt from a small-business set-aside?

Accepted Answer

Yes. The automatic small-business reservation applies to acquisitions above the micro-purchase threshold but at or below the SAT. Purchases at or below the micro-purchase threshold are not subject to that reservation, though the GPC is still the preferred payment method. [Source: FAR 13.201, General — micro-purchases (acquisition.gov) — "Purchases at or below the micro-purchase threshold may be conducted using any of the methods described in subpart 13.3." https://www.acquisition.gov/far/13.201]

Simplified Acquisition (FAR Part 13)

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