Uniform Guidance Update – OMB Has Increased the Simplified Acquisition Threshold and Micro-Purchase Threshold for Procurements
by Joshua Jumper, CPA, CGFM, Audit Manager
Posted on August 1, 2018
Expected to provide relief to local governments, on June 20, 2018, the Office of Management and Budget (OMB) issued memorandum M-18-18 titled, Implementing Statutory Changes to the Micro-Purchase and Simplified Acquisition Thresholds for Financial Assistance, to implement the effect of the National Defense Authorization Acts (NDAA) of 2017 and 2018. With this memorandum:
- the Simplified Acquisition Threshold increased from $150,000 to $250,000; and
- the Micro-Purchase Threshold increased from $3,500 to $10,000
The Simplified Acquisition Threshold increase will not have a major impact on local Arizona governments due to lower existing state requirements. However, the increase in the micro-purchase threshold eliminates the procurement “gap” that existed for many local Arizona governments, especially school districts.
Based on the wording in the memorandum, the changes are effective immediately. Grantees should note that they are required to follow the thresholds established in accordance with their own internal procurement policies. Therefore, thresholds in such policies should be updated to reflect these new figures before applying them. Moreover, the increased thresholds are not required to be implemented, if lower thresholds are desired.