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Simplified acquisition threshold (SAT)

Also called: SAT, simplified acquisition, simplified acquisition procedures, SAP

The simplified acquisition threshold is the dollar limit, set in FAR 2.101, below which agencies may use the streamlined buying procedures of FAR Part 13 instead of full sealed bidding or negotiated procurement.

Buys above the micro-purchase threshold and at or below the SAT are reserved for small businesses under FAR 19.502-2(a) unless the contracting officer cannot find two capable small sources, which makes this band the natural starting point for a new firm. Procedures are lighter: RFQs instead of RFPs, oral or written quotes, purchase orders, and evaluation on price and a few factors. The threshold is adjusted for inflation every five years under FAR 1.109 and is higher for certain contingency and disaster buys.

What to check: the current figure in FAR 2.101 rather than a number you read on a blog, whether the notice is a combined synopsis/solicitation under FAR 12.603, and whether the buy is on SAM.gov at all (FAR 5.101 lets some buys under the SAT go to a smaller audience).

What it is not: a limit on your company. It limits the procedure the agency uses, not the size of contract you may hold.

See also: Micro-purchase threshold (MPT), Request for Quotation (RFQ), Set-aside, Federal Acquisition Regulation (FAR)

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