How does the FAR define a 'micro-purchase threshold' and how does it impact small businesses?

The micro-purchase threshold is a dollar amount established by the FAR that dictates how agencies can procure goods and services, and it directly impacts small businesses by allowing for streamlined acquisition. For services like grounds maintenance, the micro-purchase threshold is $2,500 when subject to the Service Contract Labor Standards, but it is $15,000 for most other purchases (FAR 2.101). Simplified acquisition procedures are related, as they are used for purchases above the micro-purchase threshold up to the simplified acquisition threshold of $350,000 (FAR 13.003(a)).

For your landscaping company, this means that very small groundskeeping jobs might be awarded quickly without extensive competition. Contracting officers can make these purchases with minimal administrative burden, often directly from vendors without formal solicitations on SAM.gov. While these opportunities are less visible, building relationships with local bases and agencies can help you get found for these types of awards. State and local government purchases follow their own procurement codes and vendor guides, which will have different thresholds and procedures.