Kensington Sales Group
Guide

Government procurement thresholds by state (2026).

How much can a state agency spend before it needs quotes, or a formal bid? Here are the current purchasing thresholds for state agencies in 17 large states, with the official source for each.

Updated November 1, 2026 · By Kensington Sales Group · 7-minute read

Key takeaways

  • State agency formal bid thresholds range from $25,000 in Georgia and Texas to $350,000 in Colorado.
  • Several states raised their thresholds recently, including New Jersey (July 2025), Washington (September 2025), Georgia (December 2025) and Colorado (July 2026).
  • Federal thresholds rose on October 1, 2025: the micro-purchase threshold to $15,000 and the simplified acquisition threshold to $350,000.
  • Cities, counties and school districts follow their own thresholds under state law and local policy, which often differ from state agency limits.

How procurement thresholds work

Most states set three tiers for state agency purchases of goods and services: a small amount agencies can spend with little or no competition, a middle range that requires informal quotes, and a formal threshold above which a sealed bid or request for proposals is required.

The exact amounts, names and rules differ by state. Some states add tiers, set aside certain ranges for small businesses, or give individual agencies different delegated limits. Construction usually has separate thresholds.

State agency thresholds for goods and services

StateLittle or no competitionInformal quotesFormal solicitation requiredSource
Arizona$10,000 or lessOver $10,000 to $100,000: quotes from at least 3 registered small businessesOver $100,000A.R.S. §41-2535; SPO Technical Bulletin 040
CaliforniaUnder $10,000 (one quote)Non-IT goods: $10,000 to under $100,000Non-IT goods: $100,000 and above. Non-IT services: competitive bidding at $10,000 and aboveState Contracting Manual 3.06
ColoradoUp to $50,000 (discretionary)$50,000 to $350,000: documented quote$350,000 and aboveState Purchasing & Contracts Office (effective July 1, 2026)
FloridaUnder $2,500$2,500 to $35,000: quotes where practicalOver $35,000 (ITB, RFP or ITN)Fla. Stat. §287.017, §287.057
GeorgiaUnder $25,000 (comparing 3 suppliers recommended)None$25,000 and aboveSPD Official Announcement 26-04 (December 17, 2025)
IllinoisSmall purchases up to $100,000 (adjusted for inflation under the statute); $2,000 to $20,000 set aside for small businessesOver the small purchase limit30 ILCS 500/20-20
Maryland$5,000 or lessOver $5,000 to $15,000: at least 2 bids. Over $15,000 to $100,000: at least 2 written bids and an eMMA postingOver $100,000State Fin. & Proc. §13-109; COMAR 21.05.07
Michigan$5,000 or lessOver $5,000 to $50,000: at least 3 written quotesOver $50,000 (RFP or ITN)DTMB Procurement Policy Manual, Ch. 5
Missouri$10,000 or lessOver $10,000 to under $100,000$100,000 and aboveRSMo 34.040 (NASPO summary)
New Jersey$1,000 or lessOver $1,000 to $17,500: 3 quotes. Over $17,500 to $304,000: at least 3 written quotesOver $304,000Treasury Circular 26-02-DPP (July 1, 2025)
New YorkUnder $5,000$5,000 up to the discretionary limit; purchases over $50,000 also need an advertisement in the Contract ReporterAbove the discretionary limit, listed by the State Comptroller as $150,000 (higher for small businesses, MWBEs and SDVOBs)State Finance Law §163(6); OSC guide (June 2026)
North CarolinaUp to $31,000 (small purchase)Above $31,000 up to the agency's delegationAbove the agency's delegation (up to $100,000 for most agencies)G.S. 143-53.1
Ohio$5,000 or lessOver $5,000 to under $50,000: 2 or more suppliers$50,000 and above (DAS competitive selection)ORC §125.05; DAS Policy PM-01
PennsylvaniaUp to $10,000NoneOver $10,000 (agencies handle up to $100,000 for supplies and $250,000 for services; DGS above)DGS Procurement Handbook, Pt. I Ch. 7
Texas$10,000 or lessOver $10,000 to $25,000: at least 3 informal bids, including HUBsOver $25,000 (formal bids and ESBD posting)Gov't Code §2155.132; 34 TAC §20.82
VirginiaUp to $10,000 (single quote)$10,000 to $100,000: quick quotes or unsealed bids on eVAOver $100,000 (IFB or RFP)Va. Code §2.2-4303; DGS
WashingtonDirect buy up to $40,000; up to $50,000 from Washington small or veteran-owned businessesNoneAbove the direct buy limitsRCW 39.26.125; DES-125-03 (September 1, 2025)

Thresholds are for state executive agencies buying goods and services, not construction or local governments. Texas proposed a rule change in July 2026 that could change its delegated limits. Massachusetts, Tennessee and Indiana aren't listed yet because their official sources conflict; we'll add them once confirmed.

Federal thresholds

Federal thresholdAmount since October 1, 2025Previous amount
Micro-purchase threshold$15,000$10,000
Simplified acquisition threshold$350,000$250,000
  • A wide range. Formal bids start at $25,000 in Georgia and Texas, but not until $350,000 in Colorado.
  • Thresholds are rising. New Jersey, Washington, Georgia and Colorado all changed their limits between mid-2025 and mid-2026, and the federal thresholds rose in October 2025.
  • Small business set-asides. Arizona, Illinois, Virginia and Washington reserve some lower-dollar purchases for small or veteran-owned businesses.

Why thresholds matter to sellers

  1. Below the informal threshold, relationships win. A department head who knows your product can often buy quickly without a formal bid.
  2. Pricing and packaging matter. A pilot or first phase priced under a threshold can move much faster than a large contract.
  3. Never encourage splitting. Breaking a purchase into pieces to avoid competition is prohibited.
  4. Cooperative contracts are another path. Agencies can often buy above the formal threshold without their own bid through a cooperative contract.
  5. Above the formal threshold, start early. Shape requirements before the RFP; see government buying signals.

Local government thresholds

Cities, counties, school districts and special districts don't follow state agency limits. Their thresholds come from state laws that apply to each type of local government and from each agency's own purchasing policy, and they vary widely. Check the purchasing policy of each target agency, often posted on its finance or purchasing page.

How KSG helps

Kensington Sales Group reaches the department heads and buyers who can purchase below formal thresholds, and starts conversations early for larger purchases. See our B2G lead generation service.

Thresholds change, and agencies may have their own delegated limits or exceptions. This page is general information, not legal advice; confirm current rules with the state procurement office before relying on them.

Sources: State sources are linked in the table. Federal: Federal Register, FAR inflation adjustment of acquisition-related thresholds (effective October 1, 2025).

FAQ

Frequently asked questions

What is a procurement threshold?
A procurement threshold is a dollar amount that determines how a government agency must buy. Below the lowest threshold, agencies can often buy with a single quote or none; in the middle range they need informal quotes; above the formal threshold they must run a competitive sealed bid or request for proposals.
What is the federal micro-purchase threshold?
As of October 1, 2025, the federal micro-purchase threshold is $15,000, up from $10,000, and the simplified acquisition threshold is $350,000, up from $250,000.
Which state has the highest formal bid threshold?
Among the 17 states on this page, Colorado's is highest: since July 1, 2026, state agencies can use documented quotes up to $350,000 for goods and services, and formal solicitations are required at $350,000 and above.
Do cities and counties use the same thresholds as state agencies?
Usually not. Local governments and school districts follow thresholds set by state laws that apply to them and by their own purchasing policies, which can be higher or lower than state agency limits. Check each local agency's purchasing policy.
Can an agency split a purchase to stay under the threshold?
No. States generally prohibit splitting a purchase into smaller orders to avoid competitive requirements, and several state manuals say so explicitly.

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