What is the simplified acquisition threshold?

The FAR defines it as $350,000, with higher figures for certain contingency, disaster, humanitarian, and similar buys. The general micro-purchase threshold is $15,000, but it is $2,000 for construction subject to the Wage Rate Requirements (Construction) statute.

Is my quote binding once I send it?

No. A quotation is not an offer and cannot be accepted to form a binding contract. The government’s order in response is the offer, and a contract forms when you accept it, in writing or by performing. The government may withdraw, amend, or cancel the order before you accept.

Do I need to be registered in SAM to submit a quote?

Yes, in most cases. Offerors and quoters must be registered in SAM when the offer or quotation is submitted, with limited exceptions such as purchase card micro-purchases.

Will the agency tell me if my quote was not selected?

Not automatically on many small buys. Where no automatic electronic notice is provided, unsuccessful suppliers are notified only if they request it. If the award was based on factors other than price alone, you can ask for a brief explanation of the basis for the decision.

Guide

How do I answer a federal RFQ under the simplified acquisition threshold?

Updated October 30, 2026

Federal buys of supplies and services, including construction, at or below the simplified acquisition threshold, currently $350,000, run under the simplified acquisition procedures in FAR Part 13, and many of them reach you as a request for quotations (RFQ). [FAR 2.101, Definitions] [FAR 13.000, Scope of part (simplified acquisition procedures)] A response to an RFQ is a quotation, not an offer: the government’s order is the offer, and a contract forms when you accept it. [FAR 13.004, Legal effect of quotations] To answer one, be registered in SAM when you submit, follow the instructions in the RFQ, and build your quote around the basis for award it states, either price alone or price and other factors such as past performance and quality. [FAR 4.1102, SAM registration policy] [FAR 13.106-1, Soliciting competition]

Step 1: Know which thresholds apply

The FAR defines the simplified acquisition threshold as $350,000, with higher figures for certain contingency, disaster, and similar buys. The micro-purchase threshold is $15,000, except it means $2,000 for construction subject to the Wage Rate Requirements (Construction) statute, and $2,500 for services subject to the Service Contract Labor Standards statute. [FAR 2.101, Definitions] FAR Part 13 covers the acquisition of supplies and services, including construction, the aggregate amount of which does not exceed the simplified acquisition threshold. [FAR 13.000, Scope of part (simplified acquisition procedures)] Agencies shall use simplified acquisition procedures to the maximum extent practicable for purchases not exceeding that threshold, and may not break a larger requirement into smaller purchases just to use them. [FAR 13.003, Simplified acquisition policy]

At the micro-purchase level, the government purchase card is the preferred method to purchase and to pay, and micro-purchases do not require provisions or clauses except in limited cases. [FAR 13.201, Micro-purchases: general] For a trade contractor, that means most construction jobs above $2,000 and up to $350,000 are simplified acquisitions with written terms.

One note: the government is undertaking a comprehensive overhaul of the FAR, and acquisition.gov keeps a list of overhauled FAR parts and agency deviations. [Acquisition.gov, Revolutionary FAR Overhaul] This guide follows the FAR text at FAC 2026-01. If an RFQ cites a deviation or agency procedure, follow the RFQ.

Step 2: Check who the job is set aside for

Each acquisition with an anticipated dollar value above the micro-purchase threshold but not over the simplified acquisition threshold shall be set aside for small business unless the contracting officer determines there is not a reasonable expectation of obtaining offers from two or more responsible small business concerns that are competitive in terms of fair market prices, quality, and delivery. [FAR 19.502-2, Total small business set-asides] Part 13 repeats that rule and says the contracting officer may instead make an award under the 8(a), HUBZone, SDVOSB, or WOSB programs. [FAR 13.003, Simplified acquisition policy] [FAR 19.203, Relationship among small business programs]

A contracting officer may set aside acquisitions exceeding the micro-purchase threshold for SDVOSB concerns when market research gives a reasonable expectation that two or more eligible SDVOSB concerns will submit offers and award will be made at a fair market price. Since January 1, 2024, the contracting officer verifies that each offer is eligible by checking that the offeror is designated in SAM as an SDVOSB certified by SBA, or represented SDVOSB status in SAM and applied to SBA on or before December 31, 2023, and removes offerors that do not meet those criteria. [FAR 19.1405, Set-aside procedures] Contracting officers should use SAM as their primary source of vendor information, and offices that keep extra source lists should identify the status of each source, including service-disabled veteran-owned and veteran-owned small business. [FAR 13.102, Source list] Keep your SAM profile complete. For which set-asides fit your firm, see SDVOSB vs VOSB set-asides.

Step 3: Understand what your quote means

Under the FAR, responses to invitations for bids and requests for proposals are offers, but responses to requests for quotations are quotations, not offers. Solicitations under simplified acquisition procedures may require submission of either a quotation or an offer, so read which one the solicitation asks for. [FAR 2.101, Definitions]

A quotation cannot be accepted by the government to form a binding contract. When the government issues an order in response to your quotation, the order is the government’s offer, and a contract is established when you accept it. The contracting officer may ask you to indicate acceptance by notification, preferably in writing. In other cases, you may indicate acceptance by furnishing the supplies or services or by proceeding with the work to the point where substantial performance has occurred. Until you accept, the government may withdraw, amend, or cancel its offer by written notice. [FAR 13.004, Legal effect of quotations] When the contracting officer wants a binding contract before performance starts, the contracting officer shall require your written acceptance of the purchase order. [FAR 13.302-3, Obtaining contractor acceptance and modifying purchase orders] Accept the order the way it asks before you mobilize.

Step 4: Find the RFQ and watch the deadline

Contracting officers must synopsize proposed contract actions expected to exceed $25,000 on the Governmentwide point of entry, which is located at SAM.gov. [FAR 2.101, Definitions] Actions expected to exceed $20,000 but not $25,000 are displayed in a public place or by appropriate electronic means, and that notice stays posted at least 10 days or until after quotations have been opened, whichever is later. [FAR 5.101, Methods of disseminating information] When the government does not post the notice and solicitation on the point of entry, maximum practicable competition ordinarily can be obtained by soliciting quotations from sources within the local trade area, and unless the action requires synopsis, the contracting officer considers soliciting at least three sources. [FAR 13.104, Promoting competition] That is why a local relationship with a contracting office can matter on small jobs.

Contracting officers shall solicit quotations orally to the maximum extent practicable when conditions allow, but must issue a written solicitation for construction requirements exceeding $2,000. [FAR 13.106-1, Soliciting competition] For actions over $25,000 and up to the simplified acquisition threshold, the FAR requires a response time that affords a reasonable opportunity to respond, and the fixed 30-day minimum applies only above the threshold. [FAR 5.203, Publicizing and response time] Short deadlines are normal, so set up saved searches. Our guide to finding veteran set-aside bids on SAM.gov shows how.

Step 5: Recognize the forms

For other than commercial products and services, an RFQ may come on the SF 1449, the SF 18, Request for Quotations, or an agency form, and agency forms should conform with the SF 18 or SF 1449 to the maximum extent practicable. The SF 1449 and OF 347, Order for Supplies or Services, are multipurpose forms used for negotiated purchases, orders, inspection and receiving reports, and invoices. [FAR 13.307, Forms (simplified acquisitions)] The FAR prescribes the SF 18 (Rev. 6/95) for obtaining price, cost, delivery, and related information from suppliers, and lists OF 347 (Rev. 2/2012) for simplified acquisitions. [FAR 53.213, Simplified acquisition procedures forms]

For construction, the SF 1442 may be used at or below the simplified acquisition threshold, and OF 347 may be used for construction at or below that threshold if the contracting officer includes the required construction clauses. [FAR 36.701, Standard and optional forms for construction] For other than commercial buys at this level, contracting officers may use any appropriate combination of the procedures in FAR parts 13, 14, 15, 35, or 36, including SF 1442 for construction. [FAR 13.003, Simplified acquisition policy] Many simplified purchase orders also use FAR 52.213-4, a compilation of the most commonly used clauses for simplified acquisitions above the micro-purchase threshold. [FAR 13.302-5, Clauses (purchase orders)] If your RFQ arrives on an SF 1442, see our guide to reading a federal construction solicitation.

Step 6: Price to the basis for award

When soliciting quotations or offers, the contracting officer shall tell you the basis on which award will be made: price alone, or price and other factors such as past performance and quality. Contracting officers are encouraged to use best value, and the solicitation does not have to state the relative importance of each factor. [FAR 13.106-1, Soliciting competition] Quotations are evaluated in an impartial manner, on the basis established in the solicitation, and all quotations are considered. [FAR 13.106-2, Evaluation of quotations or offers]

The contracting officer has broad discretion in fashioning evaluation procedures, and the procedures in FAR parts 14 and 15 are not mandatory. Formal evaluation plans, a competitive range, discussions, and scoring are not required, and comparative evaluations are allowed. Past performance may be judged from the contracting officer’s own knowledge, customer surveys and past performance questionnaire replies, CPARS, or any other reasonable basis. [FAR 13.106-2, Evaluation of quotations or offers] Before award, the contracting officer must determine that the price is fair and reasonable, based on competing quotations whenever possible. With only one response, the file needs a statement of price reasonableness, which may rest on market research, prior prices, or comparison to an independent government estimate, among other bases. [FAR 13.106-3, Award and documentation] For building the number, see how to price your first federal bid, and if you are new, bidding with no past performance.

Step 7: Account for construction rules that still apply

Simplified does not mean rule-free on a construction job. The Wage Rate Requirements (Construction) statute, formerly known as the Davis-Bacon Act, covers contracts in excess of $2,000 for construction, alteration, or repair of public buildings or public works within the United States, and those contracts must contain a clause requiring at least the prevailing wage rates set by the Secretary of Labor. [FAR 22.403-1, Construction Wage Rate Requirements] Contracting officers insert FAR 52.222-6, Construction Wage Rate Requirements, and the related labor standards clauses in solicitations and contracts in excess of $2,000 for construction within the United States. [FAR 22.407, Solicitation provision and contract clauses] See our Davis-Bacon wage determination guide.

Performance and payment bonds are required for any construction contract exceeding $150,000. For construction contracts greater than $35,000 but not greater than $150,000, the contracting officer selects two or more payment protections, such as a payment bond or an irrevocable letter of credit, and you furnish them before receiving a notice to proceed. [FAR 28.102-1, Bonds (Miller Act)] A bid guarantee may be required only when a performance bond or a performance and payment bond is also required. [FAR 28.101-1, Bid guarantees: policy on use] See bonding for your first federal construction job. Some clauses do not apply at or below the simplified acquisition threshold, including 52.222-4, Contract Work Hours and Safety Standards, Overtime Compensation. [FAR 13.006, Inapplicable provisions and clauses]

Step 8: Have SAM registration and representations current

Offerors and quoters are required to be registered in SAM at the time an offer or quotation is submitted, with limited exceptions such as micro-purchases made and paid with the government purchase card. [FAR 4.1102, SAM registration policy] When the SAM provision is in the solicitation, you must be registered when you submit and at the time of award, and you enter your Unique Entity Identifier on the cover page of your offer. [FAR 52.204-7, System for Award Management]

Representations and certifications are completed in SAM as part of registration. You must review and update them as necessary, but at least annually, and they are effective until one year from submission or update. [FAR 4.1201, Representations and certifications policy] The Annual Representations and Certifications provision states the NAICS code and the small business size standard for the acquisition, so check that you are small under that code before you quote. [FAR 52.204-8, Annual Representations and Certifications] The glossary explains UEI, CAGE, and NAICS.

After you quote

For simplified acquisitions where no automatic electronic notice is provided, unsuccessful suppliers are notified only if they request it or 5.301 requires it. If you ask about an award that was based on factors other than price alone, the contracting officer shall give you a brief explanation of the basis for the award decision. [FAR 13.106-3, Award and documentation] Ask. The answer tells you what to sharpen on the next RFQ. If you receive the award, read the order, accept it the way it asks, and keep your SAM registration active.

Common questions

What is the simplified acquisition threshold?: The FAR defines it as $350,000, with higher figures for certain contingency, disaster, humanitarian, and similar buys. The general micro-purchase threshold is $15,000, but it is $2,000 for construction subject to the Wage Rate Requirements (Construction) statute. [FAR 2.101, Definitions]
Is my quote binding once I send it?: No. A quotation is not an offer and cannot be accepted to form a binding contract. The government’s order in response is the offer, and a contract forms when you accept it, in writing or by performing. The government may withdraw, amend, or cancel the order before you accept. [FAR 13.004, Legal effect of quotations]
Do I need to be registered in SAM to submit a quote?: Yes, in most cases. Offerors and quoters must be registered in SAM when the offer or quotation is submitted, with limited exceptions such as purchase card micro-purchases. [FAR 4.1102, SAM registration policy]
Does Davis-Bacon apply to a small construction job?: Yes, if the contract is in excess of $2,000 for construction, alteration, or repair of public buildings or public works within the United States. Those solicitations and contracts carry FAR 52.222-6 and related labor standards clauses. [FAR 22.403-1, Construction Wage Rate Requirements] [FAR 22.407, Solicitation provision and contract clauses]
Will the agency tell me if my quote was not selected?: Not automatically on many small buys. Where no automatic electronic notice is provided, unsuccessful suppliers are notified only if they request it. If the award was based on factors other than price alone, you can ask for a brief explanation of the basis for the decision. [FAR 13.106-3, Award and documentation]

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Sources

Checked against these sources on October 30, 2026. Rules change, so always read the current solicitation and regulation. This guide is general information, not legal advice.