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    Uniform Grants Guidance

    Procurement Thresholds for Federal Funds

    Effective January 1, 2025

    The Uniform Guidance (UG) updates from the Federal Office of Management and Budget increased the Micro-purchase procurement method from $3,500 to $10,000 and increased the Small Purchase Procedures threshold from $150,000 to $250,000, effective June 20, 2018. Under UG, non-Federal entities must comply with the more restrictive of Federal, state, and entity-level requirements. The following table outlines the procurement methods to be used for the acquisition of goods and services when using Federal funds.

    Note: Federal and state acquisition thresholds are adjusted periodically.

    ​​Procurement Method §200.320

    		Goods/SuppliesServicesRequirements

    Micro-purchase
    (No quotes required)

    Less than $10,000

    Note: Must use more restrictive $0 Federal threshold instead of no state requirements under $12,600

    Less than $10,000

    Note: Must use more restrictive $10,000 Federal threshold instead of state exemption for services

    • consider price to be reasonable
    • distribute equitably among suppliers to the extent practical

    Small Purchase Procedures
    (Relatively simple and informal)

    $10,000 - $23,800

    Note: Must use more restrictive $10,000 Federal threshold instead of $23,200 state threshold

    ​$10,000 - $249,999

    Note: Must use more restrictive $10,000 Federal threshold instead of state exemption for services

    • obtain/document price or rate quotations from a reasonable number of qualified sources (at least three per 24 PS 8.807.1)
    • written or documented quotes

    Sealed Bids
    (Formal advertising)

    $23,800 or more

    Note: Must use more restrictive $23,200 state threshold instead of $250,000 Federal threshold

    N/A

    • bids are publicly solicited
    • firm fixed price contract awarded to the responsible bidder lowest in price
    • cost or price analysis for purchases in excess of the Simplified Acquisition Threshold ($250,000)

    Competitive Proposals
    (Formal RFPs)

    N/A

    ​$250,000 or more

    ​Note: Must use more restrictive $250,000 Federal threshold instead of state exemption for services

    • conducted with more than one source submitting an offer
    • price in not used as sole selection factor.
    • fixed price or cost-reimbursement type contract is awarded
    • cost or price analysis for purchases in excess of the Simplified Acquisition
      Threshold ($250,000)

      Non-competitive proposals

     

    Appropriate only when these circumstances apply:

    • Available only from a single source (sole source)
    • Public emergency
    • After soliciting from several sources, competition is deemed inadequate
    • Consult with your (LEA) solicitor
    		​
    • solicitation from only one source
    • used only when qualifying circumstances apply
    • fixed price or cost-reimbursement type contract is awarded

    Updated 2025 - Reference:  Pennsylvania Bulletin

    NOTE: State threshold $12,900 is not applicable to Federal Procurement Thresholds.