41 U.S.C. § 1902 — Procedures applicable to purchases below micro-purchase threshold

(a) Definition. (1) Unless paragraph (2) provides otherwise, the "micro-purchase threshold" for this section is $10,000. (2) For procurement activities administered under sections 6303 through 6305 of title 31 by an institution of higher education, a related or affiliated nonprofit entity, a nonprofit research organization, or an independent research institute, the threshold is— (A) $10,000; or (B) a higher amount that the head of the relevant executive agency decides is appropriate and that is consistent with clean audit findings under chapter 75 of title 31, an internal institutional risk assessment, or State law. The institution of higher education must be one defined in section 101(a) of the Higher Education Act of 1965 (20 U.S.C. 1001(a)). (b) Compliance With Certain Requirements and Nonapplicability of Certain Authority. (1) Compliance with certain requirements. The head of each executive agency must ensure that the agency's procuring activities comply with section 8(a) of the Small Business Act (15 U.S.C. 637(a)) and section 7102 of the Federal Acquisition Streamlining Act of 1994 (Public Law 103–355, 15 U.S.C. 644 note) when the agency awards a contract whose price is more than the micro-purchase threshold. (2) Nonapplicability of certain authority. Part 13.106(a)(1) of the Federal Acquisition Regulation (48 C.F.R. 13.106(a)(1)), as it existed on November 18, 1993, gives authority to make purchases without getting competitive quotations. That authority does not apply when the purchase price is more than the micro-purchase threshold. (c) Nonapplicability of Certain Provisions. An executive agency purchase with an expected value equal to or less than the micro-purchase threshold is not subject to section 15(j) of the Small Business Act (15 U.S.C. 644(j)) or chapter 83 of this title. (d) Purchases Without Competitive Quotations. An authorized employee of an executive agency or an authorized member of the armed forces may make a purchase without getting competitive quotations if that person determines that the purchase price is reasonable. This rule applies when the price is equal to or less than the micro-purchase threshold. (e) Equitable Distribution. Purchases priced at or below the micro-purchase threshold must be distributed fairly among qualified suppliers. (f) Implementation Through Federal Acquisition Regulation. The Federal Acquisition Regulation must implement this section. This section uses but does not define the terms "executive agency", "procuring activities", "clean audit findings", "internal institutional risk assessment", "State law", "armed forces", "authorized", "reasonable", and "qualified suppliers".