The simplified acquisition threshold impacts federal procurement by dictating when agencies must use simplified acquisition procedures and how small business set-asides are applied. As of late 2026, the simplified acquisition threshold is an amount that was recently updated (FAR 2.101, FAC 2026-01, effective March 13, 2026). This threshold affects the types of solicitations you will see, including RFQ notices.
For acquisitions above the micro-purchase threshold but not exceeding the simplified acquisition threshold, agencies are required to set aside the acquisition for small businesses. This happens unless the contracting officer determines there is no reasonable expectation of receiving offers from two or more responsible small businesses that are competitive in price, quality, and delivery (FAR 19.502-2(a)). For acquisitions above the simplified acquisition threshold, the contracting officer must set aside the acquisition for small business concerns when there is a reasonable expectation of offers from at least two responsible small business concerns and an award can be made at fair market prices, which is known as the Rule of Two (FAR 19.502-2(b)). This means that as a small business, you should look for opportunities both below and above this threshold, as both can be set aside.