Micro-Purchase Threshold Increase
The micro-purchase threshold will increase from $3,500.00 to $10,000.00 effective January 1, 2019. The increased micro-purchase threshold is only applicable to those procurements conducted on or after January 1, 2019. All TDA handbooks will be updated to reflect the procurement change. For more information on the micro-purchase threshold increase, please read below:
Informal Procurement Methods:
Micro-Purchase (Purchases between $0 - $10,000)
Effective January, 1, 2019, the micro-purchase threshold is increased from $3,500 to $10,000. Therefore, for procurements of supplies or services equal to or less than $10,000, CEs may follow the micro-purchase procurement method, unless the CE has a more restrictive micro-purchase policy in place. The increased micro-purchase threshold is only applicable to those procurements conducted on or after January 1, 2019. CEs must continue to following the existing small purchase threshold ($50,000) as described in the TDA Handbooks.
Micro-purchases may be awarded without soliciting competitive quotations if the price is considered to be reasonable and must be equitably distributed among qualified suppliers. For example, a CE must not make all purchases from one source rather; the CE must make purchases from all qualified sources equally. Routine purchases must not be broken into smaller purchase amounts in order to qualify for micro-purchasing. If the CE is routinely using the micro-purchase method for the same items, the CE must maintain documentation that demonstrates why this is the most suitable method for purchasing these products and/or services and why the use of another procurement method is not possible or reasonable.
Small Purchase (Purchases between $10,000 - $50,000)
As noted above, the small purchase threshold is not changing and will continue to apply to the procurement of supplies or services between $10,000.01 and $50,000. Small purchase procedures require CEs to obtain at least three price quotations from an adequate number of qualified sources. Price quotations must be documented; the CE must document the date, vendors consulted, and quotes received (including for verbal quotes). USDA also allows for store advertisements to be used as documentation when receiving quotes.