The Micro Purchase Threshold (MPT) is the maximum dollar amount that an authorized buyer can purchase without having to go through acquisition bidding processes and they preferred method of payment is the Government Purchase Card. What this simply means, is that the agencies do not have to obtain quotes or bids from multiple contractors when an order is below the MPT. In this case, they can purchase directly from the contractor. The MPT is regulated by FAR 13.2.
Simplifying The Purchasing Process
The idea behind developing this ceiling or threshold is to help keep administrative costs down and to simplify the purchasing process for authorized agencies. The MPT was updated to $10,000 on August 31, 2020 to further reduce administrative costs for both contractors and agencies. If the Government Agency wants to make a purchase below this limit, they can do so directly with the contractor. However, all commercial acquisitions exceeding the MPT must follow the competitive bidding process under FAR 12.
Use of Government Purchase Cards (GPC)
The use of Government Purchase Cards is the preferred, and most likely, method of procurement under the MPT. Individual agencies are responsible for determining establishing their own procedures for use of the GPC, though generally all authorized users have authority to purchase supplies, services, or construction in accordance with FAR 1.603-3 and 13.301.
All GSA vendors are required by the contract to accept GPC order below the MPT, but have the authority to refuse GPC use above the MPT.
If you have more questions on the Micro Purchase Threshold or how this affects your contract, please contact Coley GCS directly by phone at 210-402-6766, email at [email protected] or schedule a call.
Vice President for Coley GCS, LLC, a Government Contracts Consulting, Coaching and Training company. Daniel is a Certified Federal Contracts Manager (CFCM) and leads the day-to-day operations of Coley’s consulting practice. He has two decades of experience with the acquisition, management, and marketing of Federal, State, and Local government contracts. Daniel specializes in all aspects of GSA Schedules management and marketing and has helped hundreds of Coley clients remain compliant with the terms of their GSA contract while helping them expand their business.