What is a Micro-Purchase Threshold?
Also known as: MPT
The micro-purchase threshold is the dollar limit below which the government can buy goods or services with minimal process — often using a government purchase card — without competition or many standard requirements. For most purchases it is generally $10,000.
How micro-purchases work
Below the micro-purchase threshold, agencies can buy quickly without competing the purchase, as long as the price is reasonable. These buys are frequently made with a government purchase card.
Thresholds are set in the FAR and adjusted periodically for inflation; certain categories (such as some services subject to wage statutes) have different limits.
Frequently asked questions
Do micro-purchases require competition?
No. Purchases at or below the micro-purchase threshold generally don't require competitive quotes, though the contracting official must still ensure the price is fair and reasonable.
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