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  • Question

    Given the purchase is exempted from 41 USC Chapter 67, Service Contract Labor Standards, and therefore the micro-purchase threshold (MPT) is $10k. For instance, can you pay a monthly phone bill at or below $10k each month (each invoice is a varying charge below the MPT). Or is it the annual sum of a recurring bill? In this case, the sum of all parts (12 months) would be more than $10k. Thank you for your time.


    Answer

    The definition of micropurchase threshold in FAR part 2 establishes the threshold for services at $2,500 as does 41 U.S.C. chapter 67, which applies the $2,500 amount per contract. In accordance with FAR subpart 13.003(c)(2), splitting purchases is strictly prohibited. The funding made available for the purchase card will limit the time frame, so annual appropriations shall be spent in the fiscal year of the appropriation unless an exception exists. 

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