Independent · not SAM.gov
What is the simplified acquisition threshold?
Updated September 2026
You want to know if your bid has to survive the full weight of federal procurement rules, or if there's a lighter lane for smaller purchases. There is: it's called the simplified acquisition threshold, and it's the dollar line under which a contracting officer gets to skip a lot of the paperwork that governs bigger deals. Worth being upfront about this: zerogov.net is a privately run site, not a federal agency and not SAM.gov, so what follows is independent explanation, not official guidance.
How the threshold works
The simplified acquisition threshold (SAT) is a dollar figure set in federal acquisition regulations. Below it, a contracting officer can use streamlined procedures instead of the full formal process required for larger contracts. Above it, you're in the world of extensive documentation, formal solicitation methods, and slower timelines.
It's not a size standard for your business. It's a size standard for the purchase itself. A ten-person company and a ten-thousand-person company get treated the same way if the contract in question falls under the threshold.
The $250,000 figure you'll see everywhere
For years, the SAT has been cited at $250,000, with higher thresholds carved out for specific situations like contingency operations. That figure is the one repeated across contracting guides, training slide decks, and procurement handbooks going back a long time.
That figure is out of date. A FAR Council inflation adjustment (90 FR 41872) took effect on October 1, 2025, and the definition in FAR 2.101 now sets the simplified acquisition threshold at $350,000, with higher figures for contingency operations, emergencies and similar cases. The micro-purchase threshold in the same section is $15,000. Thresholds are adjusted for inflation every five years, so check the current FAR text before relying on any figure, including these. The FAR overhaul is changing the procedures around the line: the September 2026 proposed rules would move simplified buying of commercial items into FAR part 12, and we cover the broader shape of that overhaul, set-asides, clause renumbering, and all, on our plain-English rundown of the 2026 FAR overhaul.
What actually changes below the threshold
The general shape of the difference looks like this. Treat it as orientation, not a legal citation.
| Below the SAT | Above the SAT |
|---|---|
| Simplified acquisition procedures allowed | Full formal contracting procedures required |
| Fewer certifications, less paperwork per award | Extensive documentation and justification |
| Faster turnaround from posting to award | Longer solicitation and evaluation timelines |
| Purchase card use common for smaller buys | Formal contract vehicles required |
| Still requires an active, eligible entity registration | Same registration requirement, plus more compliance steps |
That last row matters more than people think. Threshold or no threshold, you still need an active SAM.gov registration to be legally eligible for award, and that requirement hasn't moved with any overhaul. If your registration lapses, the size of the purchase doesn't save you.
The Rule of Two still applies
One thing that hasn't changed: the Rule of Two. If a contracting officer has reasonable expectation that at least two qualified small businesses will submit competitive offers, the contract gets set aside for small business competition. That rule survived the 2026 overhaul intact, and it applies regardless of where a contract sits relative to the SAT.
If you don't have past performance yet
New businesses ask about the SAT a lot, because smaller, simplified purchases feel like a more realistic first win than a large formal solicitation. That instinct holds up. Contracting officers can, and regularly do, consider related experience, including non-federal work or subcontract history, when you don't have a federal contract history of your own yet. Purchases under simplified procedures tend to move faster and draw fewer competitors, which is part of why they're a common entry point for a first award.
What this page is not
This is independent research and explanation, not legal advice, and not an official government publication. Zerogov.net is not part of the federal government and is not SAM.gov, no matter how many contracting sites out there sound like they might be. It's a private site built by someone who registered their own business, then noticed how many services charge hundreds of dollars for a process the government provides at no cost. Confirm any specific dollar figure against the current FAR text or your contracting officer before it factors into a bid decision, and if a shutdown ever hits mid-contract, the protections you have as a contractor differ from what covers federal employees, a distinction we lay out on our page on shutdowns and your contract.
The simplified acquisition threshold was cited at $250,000 for years and has been $350,000 since October 1, 2025. The 2026 FAR overhaul is reworking the procedures used below it without removing the underlying distinction, so confirm the current figure and procedures against the FAR itself before a bid decision.
Independent information, not legal advice. Confirm status and rules on sam.gov and the current FAR text.
Quick answers
- Is the SAT $250,000?
- Not anymore. It has been $350,000 since October 1, 2025, under FAR 2.101. Check the current FAR before you bid.
- Does SAT replace SAM.gov?
- No. Award still needs an active registration.
- Does Rule of Two apply below SAT?
- Yes. Set-asides did not vanish under the threshold.