What is the Simplified Acquisition Threshold (SAT) amount as defined in FAR 2.101?

The Simplified Acquisition Threshold (SAT) is defined in the Federal Acquisition Regulation (FAR) under section 2.101. The correct amount for the SAT is $250,000. This threshold is significant because it determines the maximum dollar value for which certain simplified acquisition procedures can be used, making it easier for government agencies to procure goods and services.

Acquisitions below this threshold typically involve less administrative burden and can often be processed more quickly, which is beneficial for addressing urgent needs. Understanding the SAT is crucial for contracting professionals, as it influences procurement strategies and the methods by which contracts are awarded.

Other amounts provided in the options represent different thresholds for various procurement areas. For example, $10,000 is relevant as a micro-purchase threshold, while $1M pertains to the limit for certain commercial item acquisitions. Additionally, $7.5M generally reflects thresholds pertinent to specific federal laws or program regulations. However, for the definition within FAR 2.101 specifically about the SAT, the established and correct figure is indeed $250,000.