What is the micro-purchase threshold limit as established by the Federal Acquisition Regulation (FAR)?

What is the micro-purchase threshold limit as established by the Federal Acquisition Regulation (FAR)?

• A. $5,000
• B. $10,000
• C. $15,000
• D. $20,000

Answer: (B)

The micro-purchase threshold limit established by the Federal Acquisition Regulation (FAR) is set at $10,000. This threshold is significant because it represents the maximum amount that can be spent without the need for competitive quotations or bids, allowing for a more streamlined purchasing process. The rationale behind the micro-purchase threshold is to facilitate acquisition for low-value purchases, which helps to expedite procurement processes and reduce administrative burdens for federal agencies. The $10,000 limit provides a useful reference point for understanding the range of small purchases and emphasizes the government's goal of making procurement more efficient for routine and lower-cost items. This threshold can be particularly beneficial for government personnel who handle frequent, small transactions, providing flexibility while ensuring accountability and adherence to procurement policies.

The micro-purchase threshold limit established by the Federal Acquisition Regulation (FAR) is set at $10,000. This threshold is significant because it represents the maximum amount that can be spent without the need for competitive quotations or bids, allowing for a more streamlined purchasing process. The rationale behind the micro-purchase threshold is to facilitate acquisition for low-value purchases, which helps to expedite procurement processes and reduce administrative burdens for federal agencies.

The $10,000 limit provides a useful reference point for understanding the range of small purchases and emphasizes the government's goal of making procurement more efficient for routine and lower-cost items. This threshold can be particularly beneficial for government personnel who handle frequent, small transactions, providing flexibility while ensuring accountability and adherence to procurement policies.