Micro-Purchase Threshold: Selling Under the Limit

The micro-purchase threshold is the maximum amount for a federal purchase to use micro-purchase procedures, subject to applicable rules and exceptions. To sell under it, identify likely buyers, offer a clear quote, and be ready to deliver; many of these purchases are not posted as public solicitations.

A low-dollar sale can be a useful first federal job, but it is not a shortcut around the buyer’s requirements. The purchase still needs a valid order, fair pricing, and delivery that meets the agency’s needs.

What the micro-purchase threshold means

Federal acquisition rules use the micro-purchase threshold to determine when buyers may use simplified procedures for small purchases. The threshold is not one universal price for every situation. The applicable amount can depend on the type of purchase and other circumstances, so confirm the current rule before quoting or accepting an order.

Micro-purchases are often made directly by an authorized buyer, including with a government purchase card. Buyers generally do not have to seek competitive quotes for each micro-purchase, but they must still consider whether the price is reasonable and distribute purchases among qualified suppliers to the extent practicable. Read the current rules in FAR Part 13.

Check the micro purchase limit 2026

Do not rely on an old web page or a remembered dollar figure for the micro purchase limit 2026. Check the current Federal Acquisition Regulation, including the definitions in FAR 2.101 and the procedures in FAR Part 13, along with any agency-specific rules. The FAR is the place to verify the current limit and applicable exceptions.

The micro-purchase threshold is also different from the simplified acquisition threshold. The latter applies to a separate set of simplified acquisition procedures and is generally higher, but its current amount and exceptions must also be checked in the FAR. A buyer may use procedures that fit the purchase; the threshold alone does not promise a particular buying method or opportunity.

How government purchase card sales work

A government purchase card works much like a payment card, but the cardholder can use it only within the authority and rules set by their agency. A cardholder may contact a business, request a quote, and place an order directly. You should still get the buyer’s requirements and an approved purchase order or other written order before starting work.

Confirm what the buyer is purchasing, the delivery location, schedule, quality requirements, acceptance process, and payment instructions. Ask whether the buyer expects you to accept the card or use another payment method. Do not assume every agency, cardholder, or purchase uses the same process.

Find buyers before a public bid appears

Many micro-purchases do not appear as open solicitations, so searching bid notices alone can miss them. Start with agencies that buy what you sell and review their past purchasing patterns. Federal agencies and what they buy and federal contract spending by industry can help you narrow your research. You can also review public award data at USAspending.gov.

Use the correct six-digit NAICS code for your products or services, then look for relevant notices on open federal bids. Not every micro-purchase will be listed there, but notices can reveal agency needs and points of contact. Check with an agency’s small business office or procurement staff to learn how local buyers accept quotes and introduce capable vendors.

Prepare a simple, complete quote

Make it easy for a buyer to see what you offer, how much it costs, and when you can deliver. Keep your quote aligned with the requested specifications. Include shipping, labor, materials, taxes where applicable, and any other costs the buyer asked you to address. For pricing help, see government contract pricing.

Do not divide a larger known requirement into smaller orders to stay below the micro-purchase threshold. Buyers cannot use that approach to avoid competition or other acquisition rules. If the requirement is larger or more complex, the agency may need a different process, such as a competition under simplified acquisition procedures.

• Describe the exact product or service, including quantities and specifications.
• State your total price, delivery date, quote expiration date, and any assumptions.
• Ask the buyer how to submit the quote and what documentation is required.
• Keep copies of the quote, written order, delivery records, and payment correspondence.

Registration, records, and getting help

For federal prime contracts, a business must complete a full registration in SAM.gov. Registration is free, and third-party services that charge to register you are not required. Some direct purchase-card buying processes may differ, so ask the buyer what entity information and registration status they require before you pursue an order. Keep an active registration if you plan to compete for federal prime contracts.

Track each order and confirm acceptance before invoicing or submitting a payment request as instructed. Payment methods and invoice procedures vary, so follow the order and the buyer’s directions rather than assuming a standard timeline. Free help is available through APEX Accelerators, Small Business Development Centers, and SCORE. For problems using SAM.gov, contact the Federal Service Desk.

Frequently asked questions

How do government contractors get paid?

The contract or purchase order explains how to submit an invoice or payment request and what records the agency needs. A micro-purchase may be paid by government purchase card, while other orders may use an agency payment process. Follow the buyer’s instructions and keep proof of delivery and acceptance.

How do I get my first government contract with no experience?

Start with a small, clearly defined product or service you already deliver well, then research agencies that buy it and contact their procurement or small business offices. Micro-purchases can be one way to earn an initial federal sale, but buyers still expect reliable delivery, reasonable pricing, and compliance with the order. Free assistance is available from APEX Accelerators, SBDCs, and SCORE.

Do I need to be registered to bid on government contracts?

You must complete a full SAM.gov registration to bid on federal prime contracts, and registration is free. For a direct purchase-card transaction, ask the buyer what registration and entity information the agency requires. A UEI is also available from SAM.gov at no cost.

Can a government purchase card be used for a micro-purchase?

Yes, authorized cardholders commonly use government purchase cards for eligible purchases, subject to their agency’s rules and the applicable threshold. The buyer decides whether the card is appropriate for the transaction. Confirm payment and order details before you begin work.

What is the difference between the micro-purchase threshold and simplified acquisition threshold?

They are separate limits tied to different federal purchasing procedures. Micro-purchase procedures apply to eligible small purchases, while simplified acquisition procedures cover a broader range of acquisitions. Check the current FAR and any applicable agency rules for the amounts and exceptions.