Overview
FAR 13.201 establishes the foundational policies for micro-purchases, emphasizing administrative simplicity through the use of the Governmentwide commercial purchase card and providing exemptions from standard procurement procedures while maintaining critical security prohibitions. It outlines when the micro-purchase threshold may be increased and specifies which overarching federal requirements (such as supply chain security) still apply to these low-dollar transactions.
Key Rules
- Preferred Method: The Governmentwide commercial purchase card is the preferred method for both purchasing and paying for micro-purchases.
- Clause Exemptions: Micro-purchases do not require standard FAR provisions or clauses, except for specific requirements regarding local taxes and electronic funds transfer. This rule takes precedence over other FAR requirements.
- Mandatory Compliance: Despite their small size, micro-purchases must still comply with FAR Part 8 (Required Sources of Supplies and Services) and FAR 23.1 (Sustainable Procurement requirements).
- Emergency Thresholds: For acquisitions supporting contingency operations, international disaster assistance, or emergency/disaster response, the threshold increases to $25,000 (inside the U.S.) and $40,000 (outside the U.S.).
- SAM/TOP Exemption: When using the purchase card, agencies are exempt from verifying if a contractor has delinquent debt in the System for Award Management (SAM) via the Treasury Offset Program (TOP).
- Security Prohibitions: Micro-purchases are strictly prohibited from including:
- Kaspersky Lab products or services.
- Covered telecommunications equipment or services (e.g., Huawei, ZTE).
- TikTok on government-used devices (unless specific exceptions apply).
- Items prohibited by Federal Acquisition Supply Chain Security Act (FASCSA) orders.
- Prohibited unmanned aircraft systems (drones).
Practical Implications
- Streamlined Administration: This section empowers non-contracting personnel (cardholders) to make quick purchases without the burden of traditional contract clauses, provided they are trained and authorized.
- Supply Chain Vigilance: Even for very small "off-the-shelf" purchases, buyers must actively vet vendors to ensure they are not inadvertently procuring prohibited technology or services from restricted entities like Kaspersky or covered Chinese telecommunications firms.