A large number of federal purchases are small. Many are made by trained agency staff using a government purchase card, often with little paperwork and no formal solicitation. For a small business, these micro-purchases can be a practical first step into federal sales — if you are easy to find and easy to buy from.
What a micro-purchase is
A micro-purchase is an acquisition of supplies or services whose total price does not exceed the micro-purchase threshold. The threshold is defined in FAR 2.101 and is adjusted from time to time, including for inflation. It is lower for construction covered by Davis-Bacon wage requirements and for services covered by the Service Contract Labor Standards statute, and higher for certain emergency and contingency purchases. Check FAR 2.101 for the current figures rather than relying on a number you saw years ago.
How agencies make micro-purchases
The rules are in FAR subpart 13.2. Key points:
- The purchase card is preferred. The Governmentwide commercial purchase card is the preferred method to purchase and pay for micro-purchases (FAR 13.201(b)).
- Competition is not always required. Micro-purchases may be awarded without soliciting competitive quotations if the authorized buyer considers the price reasonable (FAR 13.203(a)(2)).
- Purchases should be spread around. To the extent practicable, micro-purchases are to be distributed equitably among qualified suppliers (FAR 13.203(a)(1)).
- Buyers are trained cardholders, not just contracting officers. Agency heads are encouraged to delegate micro-purchase authority, so the person buying may be a program office employee with a card.
- Minimal paperwork. Micro-purchases generally do not require FAR provisions or clauses, with limited exceptions.
- Required sources still apply. Part 8 required sources — and certain prohibitions, such as those on covered telecommunications equipment — still apply to micro-purchases.
The government purchase card
The Governmentwide commercial purchase card is, in the FAR's words, a card similar in nature to a commercial credit card, issued to authorized agency personnel to buy and pay for supplies and services (FAR 13.001). Cards are issued under GSA's SmartPay program. Under FAR 13.301, the card can be used to make micro-purchases, place orders under existing contracts when authorized, and make payments when the contractor agrees to accept the card — so card acceptance is useful well beyond micro-purchases.
Do you need to be in SAM.gov?
Usually you should be. FAR 4.1102 requires offerors and quoters to be registered in SAM, but it exempts purchases under the micro-purchase threshold that use the purchase card as both the purchasing and payment mechanism. In practice, many agencies still prefer or require registered vendors, and SAM registration makes you visible in market research. Registration is free; see how to register.
How to win micro-purchases
Accept cards
If you cannot take a card payment, you are hard to buy from. Make sure your payment processing can accept the government purchase card and that your receipts show clear item descriptions, which cardholders need for their records.
Publish clear prices
Cardholders need to judge that a price is reasonable. Clear, published pricing — on your website, in a simple price sheet, or in a GSA Advantage! catalog if you hold a schedule — makes that easy.
Make quoting fast
When a cardholder asks for a quote, respond the same day with a clear, all-in price, delivery date and how to pay.
Know the local buyers
Many micro-purchases are made close to where the work happens: a military installation, a VA medical center, a national park, a field office. Introduce yourself to the contracting office and the small business specialist at federal sites near you, and ask how they handle small purchases.
Watch for the line
If a purchase would exceed the micro-purchase threshold, the buyer must use other procedures. Never suggest splitting a requirement into smaller purchases to stay under the threshold — FAR 13.003 prohibits breaking down requirements merely to avoid the threshold.
From micro-purchases to bigger work
Micro-purchases rarely build a business on their own, but they create customers who know you. Above the micro-purchase threshold, purchases move into simplified acquisition procedures, which the FAR directs be set aside for small businesses. A satisfied cardholder can be the person who later recommends you for that bigger requirement.
Keep good records
Cardholders must document their purchases, so make that easy: itemized receipts, your company name exactly as registered, and a clear description of what was bought. If you deliver services, a short completion note helps the cardholder confirm receipt. Good records also help you track which offices buy from you repeatedly — the start of a customer list.
Frequently asked questions
What is the micro-purchase threshold?
It is the dollar limit defined in FAR 2.101, with lower limits for certain construction and service contracts and higher limits for certain emergencies. Because it is adjusted periodically, check FAR 2.101 for the current amount.
Can the government buy from me without getting other quotes?
For micro-purchases, yes — the FAR allows award without competitive quotations if the buyer considers the price reasonable, while asking agencies to spread purchases equitably among qualified suppliers.
Do I need a contract to sell by purchase card?
Not for a micro-purchase. The card transaction itself is the purchase. Larger purchases need a contract or order, which may still be paid by card if you agree.
Can a cardholder split a purchase to stay under the limit?
No. FAR 13.003 prohibits breaking a requirement into several smaller purchases merely to avoid the threshold. Larger requirements must use the appropriate procedures.
This guide is general information, not legal advice. Rules change — always check the solicitation and the official sources linked here.