What is the Micro-purchase Threshold (MPT) amount according to FAR 2.101?

The Micro-purchase Threshold (MPT), as defined in FAR 2.101, is established at $10,000. This threshold is significant in the context of federal procurement because it allows government agencies to make small purchases without the need for a formal procurement process, thereby streamlining the acquisition of goods and services. This flexibility is especially beneficial for urgent needs or small purchases that do not require extensive justifications or competitive bidding. The purpose of the MPT is to promote efficiency and ease in government purchasing, making it easier for agencies to obtain low-cost items.

Understanding this threshold is crucial for those involved in contracting, as it sets limits on the types of purchases that can be made without following the more rigorous acquisition regulations that apply to larger contracts. Knowing the MPT helps ensure compliance with federal procurement policies while effectively managing small-scale expenditures.