What is Simplified Acquisition Procedures (SAP)?
Simplified Acquisition Procedures (SAP) are streamlined procurement methods under FAR Part 13 that agencies use for purchases under the Simplified Acquisition Threshold (SAT). These methods reduce administrative burden, speed up awards, and expand opportunities for small businesses.
Purpose of SAP
As outlined in FAR 13.002, the goals of SAP are to:
- Reduce administrative costs
- Improve efficiency and economy in contracting
- Promote small business participation, including disadvantaged, women-owned, HUBZone, and veteran-owned businesses
- Avoid unnecessary burdens on agencies and contractors
Policy and Small Business Set-Asides
According to FAR 13.003, agencies must use SAP “to the maximum extent practicable” for purchases at or below the Simplified Acquisition Threshold (SAT).
- Purchases between the Micro-Purchase Threshold (MPT) and SAT are generally reserved for small businesses unless an exception applies.
Key Thresholds
The federal government adjusts acquisition-related thresholds every five years based on inflation, as required by 41 U.S.C. § 1908. The most recent update was published in the Federal Register on November 29, 2024.
New Thresholds:
- Micro-Purchase Threshold (MPT): $15,000 (up from $10,000)
- Simplified Acquisition Threshold (SAT): $350,000 (up from $250,000)
- Commercial Item Ceiling (FAR 13.500): $9.5 million (up from $7.5 million)
- Contingency/ Emergency Ceiling (FAR 13.500): $20 million (up from $15 million)
For certain contingency, defense, or disaster-related procurements, the MPT is even higher:
- $20,000 for domestic purchases
- $35,000 for overseas purchases
Additional Simplified Acquisition Tools
Blanket Purchase Agreements (BPAS): Agencies may use BPAs for recurring needs under the SAT. They streamline purchases by establishing “charge accounts” with trusted vendors.
Fast Payment Procedures: Under FAR Subpart 13.4, agencies may use fast payment methods for routine, low-value purchases. This accelerates order fulfillment and payments when criteria are met.
Indefinite-Delivery Contracts Under SAP: Simplified Indefinite-Delivery Contracts (SIDCs) allow recurring orders under the SAT while maintaining flexibility in quantities and timing.
Exemptions From Certain Laws: Far 13.005 provides that some statues do not apply to contracts at or below the SAT, further reducing administrative burdens.
Streamlined Procedures for Commercial Items
Far Subpart 13.5 permits agencies to use SAP for commercial acquisitions above the SAT but below the designated ceiling ($9.5M, or $20M in emergencies). This provides contracting officers with flexibility to speed up procurements for widely available goods and services.
Small Business Opportunities
The Small Business Administration (SBA) reinforces that purchases above the micro-purchase threshold and under the SAT are automatically set aside for small businesses when there are at least two capable firms (known as the “Rule of Two”). This ensures that businesses gain priority access to billions in simplified acquisition contracts each year.
Taking advantage of these opportunities requires more than just being eligible. Businesses must ensure their registrations, profiles, and certifications are accurate and complete. This is where FAMR supports clients by helping them stay compliant, visible, and ready to respond when opportunities arise.
Small business programs that benefit include:
- 8(a) Business Development Program
- Women-Owned Small Business (WOSB) Program
- HUBZone Program
- Service-Disabled Veteran-Owned Small Business (SDVOSB) Program
Conclusion
The updated Simplified Acquisition Thresholds expand opportunities for small businesses while making it easier and faster for agencies to procure goods and services. With reduced administrative requirements, agencies benefit from efficiency, and small businesses gain greater access to federal contracting opportunities.
Simplified acquisitions are posted on SAM.gov, just like larger contracts. However, many agencies also use local procurement offices, BPA calls, or direct outreach for purchases under the SAT. Monitoring agency forecasts and networking with contracting officers can help uncover opportunities before they are advertised.
s, or direct outreach for purchases under the SAT. Monitoring agency forecasts and networking with contracting officers can help uncover opportunities before they are advertised.
No. Any small business with an active SAM registration can compete. However, having SBA certifications such as 8(a), HUBZone, WOSB, or SDVOSB increases your chances because agencies often use SAP to meet their small business contracting goals.
Awards are generally much faster than larger procurements. Instead of taking months, SAP awards can take weeks or even days, depending on the agency’s need and the complexity of the purchase. This makes it critical to have your registrations, profiles, and capability statements ready at all times.
Common mistakes include failing to keep SAM registrations active, not using the right NAICS codes, ignoring micro-purchase and BPA opportunities, and waiting too long to respond. Another mistake is treating SAP contracts casually because they are “smaller.” In reality, many businesses build strong past performance through SAP awards that later position them for larger contracts.
