FAR Amendment: Micro-purchase threshold limit increased to $10,000
GSA SmartPay® Smart Bulletin No. 002
UPDATE:
| Date | Version History Action Log - Summary of Action/Changes |
|---|---|
| January 18, 2007 | Implementation of Smart Bulletin #02 |
| November 14, 2023 | Re-written to reflect current information for the micro-purchase threshold, in accordance with the Federal Acquisition Regulation and applicable United States Code. |
| March 22, 2024 | Revised for administrative updates |
Effective Date
From Issuance until superseded
Business Line(s) Affected
Purchase, and Integrated
Introduction
In accordance with the Federal Acquisition Regulation (FAR) Subpart 13.2 - Actions At or Below the Micro-Purchase Threshold, “The Government wide commercial purchase card shall be the preferred method to purchase and to pay for micro-purchases.” The purpose of this GSA SmartPay Smart Bulletin is to provide information to charge card managers, cardholders, and stakeholders about the government micro-purchase threshold.
Definition
In accordance with FAR 2.101 Definitions, a “Micro-purchase means an acquisition of supplies or services using simplified acquisition procedures, the aggregate amount of which does not exceed the micro-purchase threshold.” The micro-purchase threshold limit is established in FAR 2.101 Definitions. Convenience checks may not be issued for an amount in excess of one half of the micro-purchase threshold under 41 U.S.C. chapter 12, Simplified Acquisition Procedures.
Exceptions
FAR 2.101 Definitions establishes the micro-purchase threshold limit. However there are exceptions to this limit, which are each defined and the threshold is established in the definition of micro-purchase threshold in FAR 2.101 Definitions. These include the following:
- Construction: Defined under construction and subject to 40 U.S.C. chapter 31, subchapter IV, Wage Rate Requirements.
- Services: Subject to 41 U.S.C. chapter 67, Service Contract Labor Standards.
- Contingency Operations: Defined under contingency operations and 10 U.S.C. 101, Definitions. Please see FAR 2.101 Definitions for micro-purchase limits for purchases within the United States and purchases made outside of the United States.
- Higher Education: Acquisitions of supplies or services from institutions of higher education or related or affiliated nonprofit entities, or from nonprofit research organizations or independent research institutes.
Action
Agencies are not required to designate purchase limits at the maximum micro-purchase limits established by the FAR. Instead, agencies should consider evaluating current procurement needs, established spending controls, and current purchase card spending limits to determine whether or setting spending limits at the micro-purchase threshold is required to meet the needs of an agency.
