Simplified Acquisition Procedures (SAP) are streamlined federal procurement rules that apply to contracts under $350,000. Under SAP, agencies can buy from vendors with far less paperwork than full competitive procurement — making these contracts the fastest and most accessible entry point for small
SAP Contracts Under $350K: A Small Business Guide | AIGovBid
Simplified Acquisition Procedures (SAP) are streamlined federal procurement rules that apply to contracts under $350,000. Under SAP, agencies can buy from vendors with far less paperwork than full competitive procurement — making these contracts the fastest and most accessible entry point for small
SAP Contracts Under $350K: A Small Business Guide
SAP contracts under $350K are the fastest entry point for small businesses into federal contracting. Learn what SAP means, how to qualify, and how to win your first award.
Simplified Acquisition Procedures (SAP) are streamlined federal procurement rules that apply to contracts under $350,000. Under SAP, agencies can buy from vendors with far less paperwork than full competitive procurement — making these contracts the fastest and most accessible entry point for small
This AIGovBid guide covers federal contracting for small business government contractors and explains the next steps contractors should take.
Frequently asked questions
What is the Simplified Acquisition Threshold?
The Simplified Acquisition Threshold is $350,000, raised from $250,000 effective October 1, 2025 under FAR Case 2024-001. Purchases at or below this amount can be awarded using the streamlined procedures in FAR Part 13 rather than a full competitive solicitation.
What is the micro-purchase threshold?
The micro-purchase threshold is $15,000, raised from $10,000 in the same October 2025 inflation adjustment. Purchases at or below it can generally be made without competition, often on a government purchase card, which makes them the fastest possible entry point for a new contractor.
Do SAP contracts require competition?
Above the micro-purchase threshold, contracting officers must obtain competition among at least three sources when practicable, but this is far lighter than a full solicitation. Response windows are often five to ten days, so contractors need to be registered, findable, and ready to quote quickly.
Why do simplified acquisitions matter for new contractors?
They are the most realistic path to first federal past performance. Evaluation is streamlined, documentation requirements are lighter, and completed work still generates a performance record you can cite on larger competitive bids later. Most contractors who win big started here.
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