What is micro-purchase threshold?

The micro-purchase threshold is a designated dollar amount, set by the federal government, that allows agencies to procure goods and services without requiring competitive bidding or extensive procurement processes. As of 2023, this threshold is typically set at $10,000 for most federal purchases. This streamlined process aims to expedite acquisitions and reduce administrative costs, enabling agencies to make small purchases quickly and efficiently. However, it is important for agencies to ensure fair pricing and compliance with applicable regulations even at this threshold.