Federal Contracting Acronym
SAT
Simplified Acquisition Threshold
What does SAT mean?
SAT means Simplified Acquisition Threshold—the dollar level in FAR Subpart 2.1 that separates simplified acquisition procedures from more formal competitive requirements.
In federal contracting
Below the SAT (with micropurchase as a lower tier), agencies may use streamlined FAR Part 13 procedures with fewer formalities. Above it, full competition and documentation rules generally apply unless another authority applies.
When you will see it
SAT appears in FAR clauses, market research, acquisition plans, and small-business set-aside discussions when determining procedure type.
Why it matters
Procedure choice affects competition rules, documentation, and small business participation—teams verify the threshold in effect for the action’s date and agency.
Related terms
Related RFPCapture guides
Why it matters
Simplified Acquisition Threshold (SAT) is a core federal acquisition term used in regulations, solicitations, and contract administration.
Where you will see it
Federal notices on SAM.gov, contract attachments, registration systems, audit requests, and internal capture/proposal documentation.
Example in context
When reviewing a solicitation, a contractor confirms how SAT is used in the notice, whether related clauses apply, and which internal subject-matter experts should validate the response.