The General Services Administration (GSA) has introduced a legislative proposal that could transform small-dollar federal procurement. Today, the micro-purchase threshold (MPT) sits at $15,000 (raised from $10,000 on October 1, 2025). This is the limit under which agencies can buy using streamlined procedures like purchase cards. Anything above that amount typically triggers the full federal acquisition process, which is cumbersome.
GSA wants to change that. Its proposal would raise the MPT in phases:
- $25,000 by 2027
- $50,000 by 2030
- $100,000 thereafter
The goal is simple: make buying common goods and services faster, reduce administrative burden, and open the door for more vendors to participate. If approved, this shift could move roughly 500,000 transactions, worth an estimated $18 billion annually, into simplified procedures. For agencies, that means same-day purchasing for many IT solutions. For vendors, it means shorter sales cycles and fewer compliance hurdles.
Modernizing Federal Buying: An AITGS Perspective
Buying common IT solutions in government takes too long. Agencies know it. Vendors know it. End users definitely know it. The micro-purchase threshold is one of the few places where federal buying behaves like commercial purchasing. It is where cardholders can order what they need without navigating a months-long process. Today, the $15,000 MPT threshold is small compared to the everyday IT needs agencies must meet to keep missions moving.
GSA’s legislative proposal to raise the micro-purchase threshold is not just another tweak to the Federal Acquisition Regulation (FAR). It is a practical modernization lever. If approved, the threshold would increase in phases, eventually to $100,000. The purpose is straightforward. Move more small-dollar buys into simplified procedures. Give agencies speed. Give industry access. Reduce administrative drag on contracting offices so they can focus on complex, high-value work.
From where we sit at Arctic IT Government Solutions, this matters because it changes how agencies can acquire commercial IT capabilities. It replaces red tape with rapid response. And it aligns perfectly with how AITGS already delivers technology solutions for federal agencies.
Why the Threshold Matters
The micro-purchase threshold is the line between commercial-like convenience and full federal process. Below the line, purchase cardholders can order quickly, receive rapidly, and pay on receipt. Above the line, even modest requirements can be saddled with acquisition planning, evaluation steps, and a timeline best measured in months.
That gap affects them more than paperwork. It affects mission outcomes. A $25,000 cyber hardening tool, a $40,000 identity solution, and a $50,000 collaboration upgrade. These are not mega-programs…they are everyday needs. Treating them like multi-million-dollar procurements makes little sense. Raising the threshold is a way to recognize that reality and allow agencies to buy common solutions at the speed of relevance.
What Changes and Why It Helps
Two elements of the proposal deserve attention.
First, the phased increases. $25,000, then $50,000, then $100,000. Each step brings more routine IT spending under streamlined procedures. Each step reduces the cycle time between identifying a need and putting a solution in place.
Second, the decoupling of the threshold from the Buy American Act (BAA) for compliance purposes. This means the BAA would continue to apply to purchases above $15,000, even if the MPT goes up to $100k. This gives domestic manufacturers and suppliers a clear advantage in the $15,000 to $100,000 range, and it gives agencies a way to buy quickly while still advancing domestic supply goals.
The scale is significant. Based on current volumes, raising the micro-purchase threshold to $100,000 could shift roughly 500,000 transactions into simplified procedures each year. That represents an estimated $18 billion in annual spending. Numbers at that level are not academic. They change how organizations plan, staff, and operate.
The AITGS Perspective: Speed with Substance
Our view is pragmatic. Agencies do not need more theory. They need outcomes. Modern identity and access management. Secure collaboration. Resilient DNS and network visibility. Practical cyber improvements that can be ordered easily, implemented quickly, and maintained reliably. That is where AITGS operates.
We specialize in Microsoft-centric solutions for government. That means agency-ready capabilities built on platforms you already own or plan to adopt.
- Microsoft Entra ID for identity and conditional access.
- Microsoft Defender and Sentinel for endpoint security and SIEM.
- Secure collaboration using Microsoft 365 and Teams with governance and compliance controls that match federal standards.
- Infrastructure modernization to strengthen DNS and network resilience.
These are the kinds of solutions that fit naturally into the $15,000 to $100,000 range when scoped correctly. They are also the kinds of solutions agencies can deploy quickly if the acquisition method supports it.
Our job is to make that speed real without sacrificing security or compliance.
- We design small-dollar work packages that align with cardholder purchasing and simplified acquisition procedures.
- We verify BAA and TAA posture where applicable and keep documentation simple and accessible.
- We deliver with repeatable playbooks and short implementation timelines.
- We stand up support structures that meet government expectations without turning every engagement into a multi-year effort.
Put simply, if the threshold rises, agencies should not have to reinvent their buying approach. They should be able to point at a catalog of scoped services and order. That is the experience AITGS is building.
What Agencies Gain
Agencies gain speed (obviously). They also gain focus.
- Purchase card transactions up to $100,000 allow program offices to solve common problems without waiting for contracting queues to clear.
- Reduced administrative overhead lets contracting officers concentrate on larger, complex acquisitions where their expertise delivers the most value.
- Mission teams can identify a need on Monday, engage a vendor on Tuesday, place an order on Wednesday, receive the solution on Thursday, and pay on Friday. That is not just aspirational. It is how commercial buying already works at smaller values.
There is a cultural shift here, too. When purchasing is simple, end users and program teams become more central to solution selection. That rewards vendors who design for clarity. Plain-language scoping. Transparent pricing. Clear deliverables. Measurable outcomes. This is how we structure AITGS federal services offerings. It respects the time of cardholders and program leads. It also creates accountability.
What Vendors Need to Do, and What We Already Do
For vendors, the playbook should not be complicated.
- Be BAA and Trade Agreement Act (TAA) aware. Publish compliance posture.
- Make ordering easy. Quote accurately. Minimize paperwork.
- Deliver quickly with tested deployment paths.
- Provide clean documentation and receipts that support immediate payment.
- Align to agency buying patterns. Be present where cardholders shop and where program teams look for solutions.
This is how AITGS operates today. We have tuned our offerings for purchase card readiness, simplified acquisition, and rapid deliverability. We provide scoped bundles for identity, collaboration, cyber hardening, and DNS resilience. We maintain straightforward price points and outcome-based descriptions that program teams can understand. We deliver with engineers who know federal environments and Microsoft platforms. And we follow through with support that respects federal service expectations.
When the threshold rises, our approach does not change. It scales.
Planning Ahead: A Practical Checklist
Legislation takes time. The proposed timeline is aspirational. Phased implementation will follow. That does not mean wait and see…it means prepare.
Here’s a practical checklist agencies and partners can use today:
- Identify small-dollar IT needs that repeat across programs and sites.
- Map those needs to scoped solutions that fit $15,000 to $100,000.
- Validate BAA and TAA posture for the components and services involved.
- Standardize ordering artifacts. Quotes. Statements of work. Receipts.
- Pre-stage deployment steps and access requirements to eliminate delays.
- Track cycle times and adjust scopes to stay under the threshold when possible.
- Build relationships with cardholders and end users. Provide education, not just sales.
- Document outcomes so future orders can move even faster.
If you need help with any of that, AITGS can engage with a short discovery and produce a purchase-card-ready package. We can also advise on how to partition larger needs into sensible increments that fit simplified procedures without compromising technical integrity.
A Note on Reality and a Call to Action
This is a legislative proposal. In order for it to become reality, Congress has to act. Timelines can shift. Agencies will implement in phases. All true, but it does not change the opportunity. Being ready early has value even in the current $15,000 MPT environment. It shortens cycles. It improves clarity. It builds trust with program teams and cardholders. And when thresholds increase, you are already operating in the model that wins.
If your agency is exploring how to accelerate common IT acquisitions, or if your program office needs scoped solutions that can be ordered and delivered quickly, talk with AITGS. We can align to your mission needs, map solutions to your purchasing methods, and deliver outcomes at the speed your teams expect.
Final Thoughts from a Federal Contractor
Raising the micro-purchase threshold is about more than numbers. It is about buying everyday solutions in a way that respects urgency and reality. Agencies gain speed and focus. Contracting offices gain relief from administrative load. Vendors who design for fast, compliant delivery gain access.
Arctic IT Government Solutions is built for that model with Microsoft-based solutions, government-ready delivery, and purchase-card-friendly scoping. If you are ready to modernize how you acquire common IT capabilities, connect with us today to get the conversation started.
By Robin Zickgraf, Sales Executive at Arctic IT Government Solutions