Simplified acquisition threshold
Below a certain dollar value the government is allowed to buy with far less process. That band is where a company with no federal past performance can realistically win its first work, and almost nobody starts there deliberately.
2,365
solicitations set aside for small business are open right now. Purchases between the micro-purchase limit and the simplified acquisition threshold are reserved for small business by default, which is the strongest structural advantage a small firm has.
The two numbers
The micro-purchase threshold is $10,000 for most supplies and services. Below it a government cardholder can simply buy, with no competition required at all, from whoever they already know.
The simplified acquisition threshold is $250,000. Between the two, buying runs under FAR Part 13, which means a much lighter process, and the work is reserved for small business unless the contracting officer cannot find two that can do it.
Why this is the realistic entry point
A first-time bidder loses a large competitive procurement on past performance before anyone reads the technical section. Under the simplified acquisition threshold that barrier mostly is not there, the paperwork is a fraction of the size, and awards happen in weeks. Several small awards build the record that makes the larger ones winnable later.
Micro-purchase is a relationship, not a bid
Under $10,000 there is no solicitation to find and no proposal to submit. Someone with a government purchase card decides to buy from you. That is won by being known to the right office, which is what a capability statement and a conversation are for, and it is invisible to anyone watching solicitation feeds.
Questions people ask
What is the simplified acquisition threshold?
$250,000 for most purchases. Below it, buying runs under FAR Part 13 with substantially less process.
What is the micro-purchase threshold?
$10,000 for most supplies and services, and buying beneath it needs no competition at all.
Is work under the threshold reserved for small business?
Between the micro-purchase threshold and the simplified acquisition threshold, yes, unless the contracting officer cannot find two small businesses able to perform.
Do these purchases appear on SAM?
Often not. Much of it is handled directly, which is why being known to an office matters more than watching feeds at this size.
Do small awards build past performance?
They build a track record you can cite, though awards below the threshold usually generate no formal CPARS entry.
Related
FAR and DFARS · Capability statement · How past performance is scored · Browse open solicitations