The $100,000 Question: How the Micro-Purchase Threshold is About to Change Everything in Federal Contracting

By: Michelle Warren Published on: 13/11/2025

In a recent discussion, our team—led by Michelle Warren and featuring former GSA Chief of Integrated Marketing Robin Zickgraf and Catalyst's Ryan Hay—dove into the monumental, often-overlooked federal Micro-Purchase Threshold (MPT). The MPT dictates the ceiling for simplified acquisition, allowing government agencies to bypass red tape and make quick, credit card-based purchases. This seemingly small detail has an enormous impact: "There are over 500,000 transactions annually that are done under this micro-purchase threshold”, accounting for "$18 billion in annual federal spending" (Michelle Warren). For the furniture industry alone, Michelle estimates that "$240 million in furniture today" is done under these guidelines, a number poised to grow significantly.