Micro-Purchase Threshold

Micro-Purchase Threshold Increased

Congress passed the National Defense Authorization Act for Fiscal Year 2017 late last year, and President Obama signed the bill into law.

The bill increases the micro-purchase threshold within the Department of Defense to $5,000. That is $1,500 greater than other agencies that contract with private companies. The regulation allows the Department of Defense to purchase goods or services without many of the regular bidding requirements of a federal contract up to $5,000.

The 43% increase gives procurement specialists within the Department of Defense greater flexibility, and they will be able to quickly purchase the required goods and service for the Department of Defense to operate. However, the language in the bill does not require the agency to use small business contractors for the micro-purchases.


KDuncan & Company is dedicated to providing knowledge and support for small government contractors about concerns regarding government contracting. For questions on areas such as as cost proposals, accounting systems, DCAA compliance, and incurred cost audits, reach out to KDuncan & Company.

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