FAR Thresholds 2026: Micro-Purchase, Simplified Acquisition and Other Key Dollar Limits

Federal acquisition rules change based on contract dollar value, so every contractor should know the current FAR thresholds. On October 1, 2025, the FAR Council's periodic inflation adjustment raised many key limits, including the micro-purchase threshold and the simplified acquisition threshold. Here is a quick reference and what each threshold means for your business.

Key FAR Thresholds (Effective October 1, 2025)

• Micro-purchase threshold (MPT): $15,000 (up from $10,000). Purchases at or below this level usually need no competition and are often paid by government purchase card.
• Simplified acquisition threshold (SAT): $350,000 (up from $250,000). Simplified procedures apply, and purchases between the MPT and SAT are generally reserved for small businesses.
• Commercial products and services simplified procedures: $9 million (up from $7.5 million).
• Certified cost or pricing data (TINA): $2.5 million (up from $2 million).
• Small business subcontracting plan: required for large primes on contracts above $900,000 (up from $750,000), or $2 million for construction (up from $1.5 million).
• 8(a) sole-source awards: up to $5.5 million, or $8.5 million for manufacturing.

Higher micro-purchase limits apply in some contingency and emergency situations.

Thresholds That Did Not Change

Some thresholds are set by statutes exempt from inflation adjustment, including the Davis-Bacon Act prevailing wage threshold for construction ($2,000) and the Miller Act bonding threshold ($150,000). Always check the current FAR text for the threshold in your solicitation.

Why These Thresholds Matter to Contractors

• More small business set-asides: the higher SAT means more purchases fall into the range usually reserved for small businesses.
• Faster buying: more purchases qualify for simplified procedures with less paperwork.
• Fewer cost disclosures: the higher TINA threshold means fewer contracts require certified cost or pricing data.
• Subcontracting plans: large primes must submit plans on fewer contracts, which affects small business subcontracting goals.

Clause Applicability Depends on Dollar Value

Many FAR and DFARS clauses only apply above certain amounts. When reviewing a solicitation, check the contract value against clause prescriptions so you know which obligations apply, and flow down the required clauses to subcontractors.

Stay Current With FAR Changes

The FAR is being substantially rewritten through the ongoing FAR overhaul, and agencies have issued class deviations as they adopt the changes. Watch acquisition.gov, Federal Register notices and agency deviations so you are not caught off guard.

Frequently Asked Questions

What is the simplified acquisition threshold in 2026?

$350,000, effective October 1, 2025.

What is the micro-purchase threshold in 2026?

$15,000 for most purchases, effective October 1, 2025.

How often are FAR thresholds adjusted for inflation?

Every five years, under 41 U.S.C. 1908.

Do the new thresholds apply to existing contracts?

Generally they apply to solicitations issued on or after the effective date. Existing contracts may be modified in some cases, so check with your contracting officer.

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