FAR 13.003—Policy.
Plain-English Summary
FAR 13.003 states the core policy for using simplified acquisition procedures (SAP) and explains when they must be used, when they do not apply, and how they interact with other acquisition methods. It covers purchases at or below the micro-purchase threshold, purchases up to the simplified acquisition threshold, and certain commercial acquisitions under the higher SAP ceiling in FAR subpart 13.5. It also addresses mandatory small business set-asides, the ability to place awards under the 8(a), HUBZone, SDVOSB, and WOSB programs, and the limited reviewability of certain set-aside decisions at or below the simplified acquisition threshold. The section further explains when SAP may not be used because the requirement can be met through required sources of supply, existing IDIQ contracts, or other established contracts. In practice, this policy is meant to make low-dollar buying faster and less burdensome while still preserving competition, small business participation, and compliance with statutory and regulatory priorities. It also emphasizes avoiding improper contract splitting, using electronic commerce and purchase cards where practical, and selecting the most efficient acquisition method based on the circumstances.
Key Rules
Use SAP to the maximum
Agencies must use simplified acquisition procedures to the maximum extent practicable for supplies and services at or below the simplified acquisition threshold, including micro-purchases. This is the default approach unless another mandatory or existing contracting vehicle can satisfy the need.
Required sources come first
SAP does not apply when the agency can meet the requirement through required sources of supply under FAR part 8, existing IDIQ contracts, or other established contracts. The agency must use those sources before turning to a new simplified acquisition.
Small business set-aside rule
Acquisitions above the micro-purchase threshold and at or below the simplified acquisition threshold must be set aside for small business concerns. This is a mandatory rule, not a discretionary preference, unless another specific exception or program applies.
Optional socioeconomic programs
The contracting officer may award under the 8(a), HUBZone, SDVOSB, or WOSB programs for acquisitions at or below the simplified acquisition threshold. These are available tools, but the section does not require use of any one of them in every case.
Limited review of set-aside decisions
For acquisitions at or below the simplified acquisition threshold, certain decisions not to use the 8(a), HUBZone, SDVOSB, or WOSB programs are not subject to review under FAR subpart 19.4. This limits formal review rights for those small-dollar decisions.
Solicitation content still matters
Written solicitations for set-asides must include the appropriate FAR part 19 provisions. If the solicitation is oral, the contracting officer must provide substantially identical information to potential quoters.
Do not split requirements
Contracting officers may not break down requirements that exceed the applicable threshold into smaller purchases just to use SAP or avoid rules that apply above the micro-purchase threshold. Artificial splitting is prohibited whether the threshold is the simplified acquisition threshold or the commercial-item threshold in subpart 13.5.
Higher ceiling for certain commercial buys
SAP may not be used if the anticipated award will exceed the simplified acquisition threshold, or exceed $9 million—or $15 million for acquisitions under FAR 13.500(c)—when buying commercial products or commercial services under subpart 13.5. The dollar ceiling controls the availability of SAP for those commercial acquisitions.
Personal services only with authority
An agency may use SAP to acquire personal services only if it has specific statutory authority to do so. Without that authority, SAP does not create permission to buy personal services.
Use cards and electronic commerce
Agencies must use the Governmentwide commercial purchase card and electronic purchasing techniques to the maximum extent practicable, and maximize electronic commerce when practical and cost-effective. Hard-copy or off-line methods may still be used for drawings and lengthy specifications when needed.
Choose the most suitable method
Authorized individuals must use the simplified buying method that is most suitable, efficient, and economical for the acquisition. Depending on the dollar value and whether the buy is commercial or noncommercial, they may use combinations of procedures from FAR parts 12, 13, 14, 15, 35, or 36.
Promote competition and timely responses
Contracting officers must promote competition to the maximum extent practicable, set reasonable response deadlines, consider all timely quotations or offers, and use innovative approaches when awarding under SAP. These requirements keep simplified buying fair and market-oriented.
Responsibilities
Agency
Use simplified acquisition procedures to the maximum extent practicable for purchases at or below the simplified acquisition threshold, use purchase cards and electronic purchasing techniques where practical, maximize electronic commerce, and ensure buying practices do not improperly bypass required sources or statutory thresholds.
Contracting Officer
Determine whether SAP may be used, confirm whether required sources or existing contracts satisfy the need, set aside eligible acquisitions for small business, decide whether to use 8(a), HUBZone, SDVOSB, or WOSB programs, include required solicitation provisions, avoid contract splitting, promote competition, set reasonable response times, consider all timely quotes or offers, and use innovative acquisition approaches.
Authorized Individual / Buyer
Make purchases using the most suitable, efficient, and economical simplified method based on the circumstances, and use the appropriate combination of procedures allowed for the acquisition type and dollar value.
Small Business Concerns
Compete for and perform set-aside acquisitions above the micro-purchase threshold and at or below the simplified acquisition threshold, and participate in applicable socioeconomic programs when eligible.
Agency with Statutory Authority for Personal Services
Use SAP for personal services only within the limits of its specific statutory authority and applicable personal-services rules.
Practical Implications
This section is a strong preference rule: for low-dollar buys, the government should move quickly, but only after checking required sources and existing contract vehicles. Skipping that check is a common compliance mistake.
Contract splitting is a major risk area. If a requirement is intentionally divided to stay under a threshold, the purchase can be challenged as improper even if each individual order is small.
Small business set-asides are mandatory for many buys above the micro-purchase threshold and at or below the simplified acquisition threshold, so contracting officers should document the basis for any exception or alternative program use.
Electronic buying is not optional in spirit; agencies are expected to use purchase cards and e-commerce tools whenever practical and cost-effective, which can affect how quotes are collected, evaluated, and documented.
Even though SAP is streamlined, competition and fairness still apply. Short deadlines are allowed only if they still give suppliers a reasonable chance to respond, and all timely quotes or offers must be considered.
Official Regulatory Text
(a) Agencies shall use simplified acquisition procedures to the maximum extent practicable for all purchases of supplies or services not exceeding the simplified acquisition threshold (including purchases at or below the micro-purchase threshold). This policy does not apply if an agency can meet its requirement using- (1) Required sources of supply under part 8 ( e.g., Federal Prison Industries, Committee for Purchase from People Who are Blind or Severely Disabled, and Federal Supply Schedule contracts); (2) Existing indefinite delivery/indefinite quantity contracts; or (3) Other established contracts. (b) (1) Acquisitions of supplies or services that have an anticipated dollar value above the micro-purchase threshold, but at or below the simplified acquisition threshold, shall be set aside for small business concerns (see 19.000 , 19.203 , and subpart 19.5 ). (2) The contracting officer may make an award to a small business concern under the- (i) 8(a) Program (see subpart 19.8 ); (ii) Historically Underutilized Business Zone (HUBZone) Program (but see 19.1305 ); (iii) Service-Disabled Veteran-Owned Small Business (SDVOSB) Program (see subpart 19.14 ); or (iv) Women-Owned Small Business (WOSB) Program (see subpart 19.15 ). (3) The following contracting officer’s decisions for acquisitions at or below the simplified acquisition threshold are not subject to review under subpart 19.4 : (i) A decision not to make an award under the 8(a) Program. (ii) A decision not to set aside an acquisition for HUBZone small business concerns, service-disabled veteran-owned small business concerns, or EDWOSB concerns and WOSB concerns eligible under the WOSB Program. (4) Each written solicitation under a set-aside shall contain the appropriate provisions prescribed by part 19 . If the solicitation is oral, however, information substantially identical to that in the provision shall be given to potential quoters. (c) (1) The contracting officer shall not use simplified acquisition procedures to acquire supplies and services if the anticipated award will exceed- (i) The simplified acquisition threshold; or (ii) $9 million ($15 million for acquisitions as described in 13.500 (c)), including options, for acquisitions of commercial products or commercial services using subpart 13.5 . (2) Do not break down requirements aggregating more than the simplified acquisition threshold (or for commercial products and commercial services, the threshold in subpart 13.5 ) or the micro-purchase threshold into several purchases that are less than the applicable threshold merely to- (i) Permit use of simplified acquisition procedures; or (ii) Avoid any requirement that applies to purchases exceeding the micro-purchase threshold. (d) An agency that has specific statutory authority to acquire personal services (see 37.104 ) may use simplified acquisition procedures to acquire those services. (e) Agencies shall use the Governmentwide commercial purchase card and electronic purchasing techniques to the maximum extent practicable in conducting simplified acquisitions (but see 32.1108 (b)(2)). (f) Agencies shall maximize the use of electronic commerce when practicable and cost-effective (see subpart 4.5 ). Drawings and lengthy specifications can be provided off-line in hard copy or through other appropriate means. (g) Authorized individuals shall make purchases in the simplified manner that is most suitable, efficient, and economical based on the circumstances of each acquisition. For acquisitions not expected to exceed- (1) The simplified acquisition threshold when acquiring other than commercial products or commercial services, use any appropriate combination of the procedures in parts 13 , 14 , 15 , 35 , or 36 , including the use of Standard Form1442 , Solicitation, Offer, and Award (Construction, Alteration, or Repair), for construction contracts (see 36.701 (a)); or (2) $9 million ($15 million for acquisitions as described in 13.500 (c)), for commercial products or commercial services, use any appropriate combination of the procedures in parts 12 , 13 , 14 , and 15 (see paragraph (d) of this section). (h) In addition to other considerations, contracting officers shall- (1) Promote competition to the maximum extent practicable (see 13.104 ); (2) Establish deadlines for the submission of responses to solicitations that afford suppliers a reasonable opportunity to respond (see 5.203 ); (3) Consider all quotations or offers that are timely received. For evaluation of quotations or offers received electronically, see 13.106-2 (b)(4); and (4) Use innovative approaches, to the maximum extent practicable, in awarding contracts using simplified acquisition procedures.