Large, multi-year contracts get most of the attention in federal contracting, but a great many purchases are much smaller. Agencies buy supplies, equipment, training and services every day using simplified procedures designed to reduce paperwork and speed up buying. For small businesses, these smaller purchases can be an accessible way to start working with federal customers.
Two key thresholds
The FAR defines two thresholds that shape how smaller purchases are made:
- The micro-purchase threshold. Purchases below this amount can generally be made without obtaining competitive quotes if the price is reasonable, often using a government purchase card. Agencies are expected to distribute micro-purchases among qualified suppliers.
- The simplified acquisition threshold. Purchases above the micro-purchase threshold and up to this level can use simplified acquisition procedures, which are less formal than full negotiated competitions.
The dollar amounts are set in law and regulation, adjusted periodically and may differ for certain purposes, such as contingency operations. Check the current values on acquisition.gov rather than relying on figures you have seen elsewhere.
Small business reservation
A notable feature of simplified acquisitions is that purchases above the micro-purchase threshold and up to the simplified acquisition threshold are generally reserved for small businesses, if the contracting officer reasonably expects to receive offers from two or more responsible small businesses competitive on market prices, quality and delivery. That makes this range especially important for small firms.
How simplified purchases happen
Simplified acquisitions can take several forms:
- Requests for quotations posted on SAM.gov or sent to a few vendors
- Purchase orders issued after receiving quotes
- Blanket purchase agreements for recurring needs
- Government purchase card transactions for micro-purchases
Not every simplified acquisition is posted publicly. Depending on the amount and circumstances, contracting officers may solicit quotes from a few known sources. That is why being known to buyers matters as much as watching SAM.gov.
Selling to purchase card holders
Government purchase card holders are often program staff, not contracting officers. They value vendors who make buying easy. To position your firm:
- Accept credit cards and provide clear, fixed pricing.
- Keep your SAM.gov registration active, even when it is not strictly required for every card purchase, since many buyers check it.
- Provide quick, accurate quotes with all required details.
- Deliver on time and follow up to confirm satisfaction.
- Ask satisfied customers whether they have other needs or colleagues who buy similar items.
Why smaller buys are worth your time
Small purchases build relationships, references and familiarity with how agencies operate. They can lead to repeat business and to larger opportunities as buyers come to know your work. For a firm new to federal contracting, a series of small, successful purchases can be a more realistic first step than a large competitive contract. Treat each small order with the same care as a large one, because it is often the start of a longer relationship.