Acquisition Tips & Tools #60: Increase to the Micro-purchase and Simplified Acquisition Thresholds

Issue Date: June 11, 2018

This month’s tips and tools is heightening awareness of the recent increase to the micro-purchase threshold and simplified acquisition threshold. On May 2, 2018, the Office of Property and Acquisition Management (PAM) issued DOI-AAAP-0148, Class Deviation - Increasing the Micro-purchase Threshold and the Simplified Acquisition Threshold. This class deviation implements changes to the micro-purchase threshold and the simplified acquisition threshold for DOI until the changes are incorporated into the Federal Acquisition Regulation (FAR).

What is a Micro-purchase?

A micro-purchase is the acquisition of supplies or services in which the total dollar amount does not exceed the micro-purchase threshold.

What is a Micro-purchase?

A micro-purchase is the acquisition of supplies or services in which the total dollar amount does not exceed the micro-purchase threshold.

What is the Micro-purchase Threshold (MPT)?

The micro-purchase threshold was previously $3,500 and with the recent DOI class deviation, it is currently $10,000, with some exceptions.

Those exceptions include the following cases:

1. For acquisitions of construction subject to the Davis-Bacon Act, it is $2,000;
2. For acquisitions of services subject to the Service Contract Act, it is $2,500; and
3. For acquisitions of supplies or services that, as determined by the head of the agency, are to be used to support a contingency operation or to facilitate defense against or recovery from nuclear, biological, chemical, or radiological attack, except for construction subject to the Davis-Bacon Act, it is:

a. $20,000 in the case of any contract to be awarded and performed, or any purchase to be made, inside the United States; and
b. $30,000 in the case of any contract to be awarded and performed, or purchase to be made, outside the United States.

4. 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, it is $10,000; or
5. A higher threshold, as determined appropriate by the head of the agency and consistent with clean audit findings under 31 U.S.C. chapter 75, Requirements for Single Audits; an internal institutional risk assessment; or State law.

What are simplified acquisition procedures?

Simplified acquisition procedures are methods prescribed in FAR Part 13 for making purchases of supplies or services, including construction, research and development, and commercial items, in which the total amount does not exceed the simplified acquisition threshold.

What is Simplified Acquisition Threshold (SAT)?

The Simplified Acquisition Threshold was previously $150,000 and with the recent DOI class deviation, it is currently $250,000, with some exceptions.

Those exceptions include the following:

1. Acquisitions of supplies or services that, as determined by the head of agency, are to be used to support a contingency operation or to facilitate defense or recovery from nuclear, biological, chemical, or radiological attack. In that case, the term means $750,000 for any contract to be awarded and performed, or purchase to be made inside the United States; and $1.5 million, for any contract to be awarded and performed, or purchase to be made outside the United States.
2. Acquisitions of supplies or services that, as determined by the head of the agency, are to be used to support a humanitarian or peacekeeping operation. The terms means $500,000 for any contract to be awarded and performed, or purchase to be made, outside the United States.

What do the new MPT and SAT increases mean for you?

It means for many acquisitions of supplies and services the MPT and SAT are increased but there are still some exceptions that may apply. Below are some of the exceptions to remember when planning your acquisitions.

1. The changes in the MPT and SAT have no effect on the Construction Wage Rate Requirements statute, previously known as the Davis-Bacon Act (DBA). The DBA threshold remains at $2,000 for construction, alteration, or repair (including painting and decorating) of public buildings or public works within the United States.
2. The changes in the MPT and SAT have no effect on the Service Contract Labor Standards statute, previously known as the Service Contract Act (SCA). The SCA threshold remains at $2,500 for services.
3. Also be aware that when approved the MPT and SAT may have an even higher threshold for a contingency or humanitarian effort and differ if performed inside or outside the United States.
Remember these Tips and Tools are for you.  If you have any questions about the acquisition process, please contact your Contracting Officer.  Have a topic you want covered in the future? We want to hear it!  Submit an email to aqdawareness@ibc.doi.gov or call us at 703-964-8800. For more information on acquisition services go to www.doi.gov/ibc/.