A micro-purchase refers to a type of acquisition where supplies or services are obtained using simplified procedures, and the total cost does not exceed a specific threshold set by law. This threshold is defined in federal regulations, allowing for more efficient purchasing processes, particularly for small-scale transactions.
Micro-purchases are commonly used in government contracting and procurement. They simplify the purchasing process for small items or services, allowing agencies to make quick purchases without extensive bidding procedures. This term is relevant in areas such as public procurement, government contracting, and small business operations. Users can often manage these transactions themselves using legal templates from resources like US Legal Forms.
Here are a couple of examples of abatement:
Example 1: A government agency needs to buy office supplies, such as paper and pens, totaling $500. This purchase qualifies as a micro-purchase because it is below the threshold.
Example 2: A small business contracts for a service to clean their office space for $2,000. This transaction does not qualify as a micro-purchase since it exceeds the threshold. (hypothetical example)
The primary regulation governing micro-purchases is found in the Federal Acquisition Regulation (FAR), specifically 48 CFR 2.101, which outlines the definition and threshold for micro-purchases.
| Term | Definition | Difference |
|---|---|---|
| Small Purchase | Purchases that exceed the micro-purchase threshold but are below a certain limit. | Small purchases involve more formal procedures than micro-purchases. |
| Standard Purchase | Any purchase that does not meet the criteria for micro or small purchases. | Standard purchases require full procurement processes and are not simplified. |
If you are involved in making micro-purchases, ensure you understand the threshold limits and maintain proper documentation. Consider using legal templates from US Legal Forms to streamline your purchasing process. If your transactions become more complex, consulting a legal professional may be beneficial.
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| Attribute | Details |
|---|---|
| Typical threshold | $10,000 |
| Jurisdiction | Federal and applicable state laws |
| Documentation required | Yes, records must be kept |
The micro-purchase threshold is currently set at $10,000 for most federal purchases.