What document is required for all federal contracts exceeding $10,000?

The requirement for a written contract for all federal contracts exceeding $10,000 stems from the Federal Acquisition Regulation (FAR) guidelines, specifically to ensure transparency, accountability, and compliance with federal procurement laws. Written contracts provide a clear and enforceable record of the obligations, terms, and conditions agreed upon by both the federal agency and the contractor. This written documentation helps to mitigate misunderstandings and disputes that may arise during contract performance.

Verbal agreements, while they may be legally binding in some contexts, do not provide the written evidence needed to enforce contract terms and are therefore not acceptable for federal contracts exceeding this monetary threshold. A purchase order is typically used for smaller transactions and does not fulfill the comprehensive requirements of a written contract. Similarly, a bid proposal is part of the bidding process but does not constitute the contract itself. Contracts are formalized only after a selection process and indicate mutual consent to specific terms, making the written format essential for federal acquisitions over $10,000.