Uniform Grants Guidance

Procurement Thresholds for Federal Funds

Effective January 1, 2024

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 - $23,200

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)

$23,200 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 a number of sources, competition is deemed inadequate
  • solicitation from only one source
  • used only when qualifying circumstances apply
  • fixed price or cost-reimbursement type contract is awarded

Pennsylvania Bulletin

Information included at this site has been derived directly from the Pennsylvania Code, the Commonwealth's official publication of rules and regulations and from the Pennsylvania Bulletin.​