Does the Simplified Acquisition Threshold exemption flow down?
A. Yes, the Simplified Acquisition Threshold exemption does flow down. Executive Order 13201 provides the text of contractual provisions that Federal agencies must include in Government contracts. These provisions, however, need not be included in contracts for purchases under the Simplified Acquisition Threshold. Contractors must include these same provisions in their nonexempt subcontracts and purchase orders, so that the provisions will be binding upon each subcontractor or vendor. Like the initial contractor, subcontractors and vendors need not include the text in contracts for purchases under the Simplified Acquisition Threshold.
