Free Federal Grant Procurement Threshold Calculator
Federal grant recipients and subrecipients must follow the procurement standards in 2 CFR § 200.320 when purchasing goods and services with federal funds. The required level of competition depends on the aggregate dollar value of the purchase and the applicable micro-purchase threshold and Simplified Acquisition Threshold (SAT). This calculator compares your planned purchase against current federal thresholds and identifies the procurement method, required procedures, and documentation steps.
For example, if your organization is implementing a workforce grant and needs to hire a training vendor for $180,000, you cannot simply select your preferred vendor. You must obtain price or rate quotes from an adequate number of qualified sources under simplified acquisition procedures, because the amount falls between the micro-purchase threshold ($15,000) and the Simplified Acquisition Threshold ($350,000). Skipping the correct procedure is one of the most common audit findings on federal grants and can result in costs being disallowed. Enter your anticipated purchase amount below to see which method applies.
Rules last reviewed: 2026-10-06 — 2 CFR 200.320 · 2 CFR 200.317 · FAR 2.101 (SAT definition)
Thresholds are set by FAR and update periodically for inflation. Verify current figures at acquisition.gov and 2 CFR 200.1 before relying on this tool for a live procurement decision.
Purchase Details
The total estimated value of all items acquired from the same vendor over the contract period.
This tool is for planning and training purposes only. Consult your organization's procurement officer and written procurement policy before finalizing a purchase method. The thresholds used here have been in effect since October 1, 2025 (FY2026) and remain current for FY2027; FAR adjusts these figures on a five-year cycle (next expected around FY2030).
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Frequently Asked Questions
What procurement rules apply to federal grant spending?
Federal grant recipients and subrecipients must follow the procurement standards in 2 CFR 200.317–200.327. Under 2 CFR 200.320, purchases fall into informal methods (micro-purchases and simplified acquisition procedures), formal methods (sealed bids and proposals), or, in limited circumstances, noncompetitive procurement. The goal is to ensure full and open competition, prevent conflicts of interest, and document that prices are reasonable.
What is the micro-purchase threshold?
The micro-purchase threshold is $15,000, effective October 1, 2025. It is set in the Federal Acquisition Regulation at FAR 2.101 by the FAR Council and adopted by reference in 2 CFR 200.1. Purchases whose aggregate value does not exceed this amount may be made without soliciting competitive quotes, as long as the price is considered reasonable, under 2 CFR 200.320(a)(1). To the extent practicable, micro-purchases should be distributed among qualified suppliers. Organizations may use a lower threshold under their own policies, may self-certify a higher threshold up to $50,000 each year, or may use a threshold above $50,000 with approval from their cognizant agency for indirect costs. See the next question.
Can our organization use a higher micro-purchase threshold?
Yes, within limits set by 2 CFR 200.320(a)(1). Your organization may self-certify a threshold up to $50,000 on an annual basis, and must keep documentation available to your awarding agency or pass-through entity and auditors under 2 CFR 200.334. The documentation should include a justification, the threshold amount, and supporting evidence. A threshold above $50,000 requires approval from your cognizant agency for indirect costs. Your threshold must also be permitted under any applicable state, local, or tribal law, and some pass-through entities set additional requirements. Without a current self-certification or approval, the federal default of $15,000 applies.
What is the Simplified Acquisition Threshold?
The Simplified Acquisition Threshold (SAT) is $350,000, effective October 1, 2025, as set in FAR 2.101 and adopted by 2 CFR 200.1. Purchases above the micro-purchase threshold and up to the SAT use simplified acquisition procedures under 2 CFR 200.320(a)(2): you must obtain price or rate quotes from an adequate number of qualified sources. Many organizations' written policies require at least three quotes.
Can our organization use a lower Simplified Acquisition Threshold?
Yes. Under 2 CFR 200.1, each recipient and subrecipient is responsible for setting its own Simplified Acquisition Threshold, based on its internal controls, an evaluation of risk, and its documented procurement procedures. Your threshold can be lower than the federal $350,000 but must never exceed it. Public agencies such as cities, counties, and school districts should also check state purchasing laws, which often require formal bidding at lower amounts. If your policy uses a lower threshold, select 'Yes' in the calculator and enter it.
When is formal competitive bidding required?
Purchases above the Simplified Acquisition Threshold ($350,000) require a formal procurement method under 2 CFR 200.320(b): sealed bids or proposals. Formal methods require public advertising or publicizing, written specifications or a request for proposals with stated evaluation criteria, and a documented award decision. Noncompetitive (sole source) procurement is allowed only under the specific conditions in 2 CFR 200.320(c).
Does my organization's own procurement policy also apply?
Yes. Under 2 CFR 200.318, your organization must have and use documented procurement procedures that are consistent with applicable State, local, and tribal laws and with the federal standards in 2 CFR 200.318–200.327. This applies to nonprofits, local governments, school districts, and institutions of higher education. States are the exception: under 2 CFR 200.317, a State follows the same policies it uses for its non-federal purchases, plus certain specified federal requirements. Where your organization's policy is more restrictive than the federal standard, follow your policy.
What if my purchase is exactly $350,000?
A purchase of exactly $350,000 uses simplified acquisition procedures. Under 2 CFR 200.320(a), informal methods may be used when the procurement does not exceed the Simplified Acquisition Threshold, and formal procurement is required only above it. The same applies at the micro-purchase threshold: a purchase of exactly $15,000 is a micro-purchase.