Most contractors picture government work as a thick bid package and a room full of competitors. A large share of government buying looks nothing like that. It happens in small purchases, often made quickly, often with little or no competition.
What changed
On October 1, 2025, the federal micro-purchase threshold rose from $10,000 to $15,000. Below that amount, a federal buyer can make a purchase without soliciting competitive quotes, as long as the price is reasonable. Many of these buys are paid with a government purchase card.
The simplified acquisition threshold rose at the same time, from $250,000 to $350,000. Purchases under it follow streamlined procedures, which usually means shorter solicitations and faster awards.
This is not a niche corner of the market. When the FAR Council adjusted the thresholds, it noted that from fiscal years 2022 through 2024 there were, on average, more than 560,000 federal awards a year at or below the old $10,000 threshold.
Why small buys matter for a new government contractor
- They get you paid fast. A small purchase moves in days or weeks, not months.
- They build past performance. Evaluators ask what you have done for government customers. A completed job, even a small one, is an answer.
- They make you known. The facility manager who orders a $12,000 repair is often the same person who writes the scope for next year's $400,000 project.
- They show the government already buys what you do. Seeing agencies in your territory purchase your service is the clearest sign there is a market for you.
State and local agencies have their own rules
Cities, counties, school districts and states set their own small-purchase limits. Some allow informal quotes up to a certain amount; others require a phone call to three vendors. Being registered with those agencies, and known to their buyers, is what puts you on the list they call.
How we use them
We watch for small purchases in your territory alongside the larger bids. For a client new to government work, a quick small award can be the first entry on the past-performance list that helps win the bigger contracts that follow.
Sources: GSA SmartPay, Smart Bulletin No. 002; SmallGovCon, Finalized Increases to Micro-Purchase and Simplified Acquisition Thresholds.