In FAR, what does “micro-purchase threshold” refer to?

The micro-purchase threshold refers to a specific dollar amount established in the Federal Acquisition Regulation that allows for simplified acquisition procedures. This threshold enables federal agencies to make small purchases without the need for the formalities required in larger contracts, thus streamlining the procurement process for items or services that are generally lower in value.

By utilizing simplified acquisition procedures within this threshold, agencies can reduce administrative costs and expedite transactions, making it easier to meet their needs efficiently. This threshold is particularly beneficial for small purchases where the procurement process can be cumbersome or overly complex for the amount of money involved.

This understanding highlights the importance of the micro-purchase threshold in facilitating quick and efficient procurement processes for small dollar transactions within the federal government.