Reference · Contracting basics & process
Simplified Acquisition Threshold (SAT)
Simplified Acquisition Threshold
The Simplified Acquisition Threshold (SAT) is a dollar level below which agencies may use streamlined simplified acquisition procedures instead of full negotiated procurement. Its exact value is set in the FAR and adjusted periodically for inflation.
What it is
Below the SAT, agencies can use faster, less burdensome methods (simplified acquisition procedures) and reserve most such buys for small businesses. The threshold is a defined dollar figure in the FAR.
Why it exists
It lets the government buy routine, lower-dollar items quickly without the full overhead of large-contract procedures.
Who it applies to
Small businesses especially — acquisitions between the micro-purchase threshold and the SAT are generally reserved for them.
Regulatory dates and requirements in this area change. Confirm the current guidance against the official sources below before you rely on it.
Frequently asked
What is the Simplified Acquisition Threshold?
The Simplified Acquisition Threshold (SAT) is a dollar level below which agencies may use streamlined simplified acquisition procedures rather than full procurement processes. The exact figure is set in the FAR and adjusted for inflation over time.
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