Federal Micro-Purchase and Small Purchase Thresholds

Summary

Effective August 1, 2018, all CNP Operators may use the micropurchase method to procure goods and services equal to or less than the new federal micropurchase threshold of $10,000 (increased from $3,500), and the small purchase method to procure goods or services equal to or less than the new federal small purchase threshold of $250,000 (increased from $150,000). For the procurement of goods and services exceeding $250,000, CNP Operators must use the formal procurement method.

As a reminder, on January 1, 2018, amendments to the Public Contract Code (PCC) Section 20111, occurring in the 2017–18 legislative session permitting public school districts (PSD) and County Offices of Education (COE) to follow the federal small purchase threshold, unless their local small purchase threshold is more restrictive. Please note that this amendment only affects purchases made by CNP Operators using federal CNP funds. Local agencies may set a lower threshold than the federal small purchase threshold mandated in Title 2, Code of Federal Regulations (2 CFR), Section 200.320; therefore, CNP Operators should check with their legal counsel to ensure they are following the correct threshold amount and amend their procurement procedures accordingly.

Related Information

USDA Policy Memo SP-20-2019, CACFP-07-2019, SFSP-06-2019: Federal Micro-Purchase and Simplified Acquisition Procurement Thresholds is on the USDA School Meals Policy Federal Micro-Purchase and Simplified Acquisition Thresholds Food and Nutrition Service web page.

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