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Federal procurement thresholds and what each one requires
The micro-purchase threshold is $10,000 and the simplified acquisition threshold is $250,000. Those two numbers decide whether a grant-funded purchase needs no quotes, informal quotes, or a formal solicitation. Use the checker below, then keep the documentation the band calls for.
Threshold checker
Enter the total expected value of the purchase — including options, renewals, and related items bought to meet the same need — and see the federal procurement method that applies.
Results appear here. Nothing you type is sent anywhere — the calculation runs in your browser.
The threshold bands
Micro-purchase
$0 – $10,000 · 2 CFR 200.320(a)(1)
No quotations required if the price is considered reasonable and purchases are distributed equitably among qualified suppliers.
Documentation to retain
- Note on why the price is reasonable
- Funding source and budget line charged
- Requester and authorizing approver
Small purchase (informal competition)
$10,000.01 – $250,000 · 2 CFR 200.320(a)(2)
Rate quotations from an adequate number of qualified sources.
Documentation to retain
- Every quote received, with dates
- Written basis for the selection
- Scope or specification the vendors quoted against
- Conflict-of-interest disclosure for the selector
Sealed bids or competitive proposals
Above $250,000 · 2 CFR 200.320(b)
Formal solicitation with written specifications, public advertising, and a documented evaluation of responsive offers.
Documentation to retain
- Solicitation and any addenda issued
- Independent cost or price analysis (200.324)
- Evaluation scores and award decision memo
- Executed contract and required federal clauses
- Prior written approval where the award requires it
Non-competitive (sole source)
Any amount · 2 CFR 200.320(c)
Allowed only for a single available source, a public emergency, express written authorization from the awarding agency, or after competition is determined inadequate.
Documentation to retain
- Written justification citing which condition applies
- Cost or price analysis
- Approval by an authorized official
Three things that change the answer
- Your own policy. 2 CFR 200.318(a) requires written procurement procedures, and many recipients set lower internal limits — for example, three quotes above $5,000. The stricter limit applies.
- Aggregation. Splitting one need into several smaller orders to stay under a threshold is a common single-audit finding. Judge the threshold on the total need, not the invoice.
- Award terms. Individual awards can require prior written approval, specific clauses, or lower thresholds regardless of the federal default.
Run it against your actual award and policy
GrantGuard checks a purchase against your award terms, budget, and written policy — not just the federal threshold — and returns the required method, a documentation checklist, and cited sources before the money is committed.
Thresholds are set by the Federal Acquisition Regulation and referenced by 2 CFR 200.320; confirm the current figures before relying on them. This page is general information, not legal or audit advice. GrantGuard provides procurement workflow, documentation, marketplace, and compliance-support tools. AI-generated observations and platform recommendations assist human review and do not constitute legal, accounting, audit, procurement, or regulatory advice. Organizations remain responsible for determining applicable requirements, evaluating vendors, approving purchases, and making final procurement decisions.