What minimum dollar amount requires competition for procurements according to the FAR?

The correct answer regarding the minimum dollar amount that requires competition for procurements according to the Federal Acquisition Regulation (FAR) is $100,000. This threshold is significant because it determines the requirement for full and open competition in federal contracting processes.

When a procurement exceeds this amount, agencies are often mandated to solicit bids from multiple sources, which fosters transparency, encourages competition, and is intended to ensure that taxpayer funds are used efficiently. Increased competition can lead to better pricing, improved quality of goods and services, and greater innovation in solutions proposed by vendors.

In the context of federal acquisition, understanding these thresholds is crucial for compliance with federal law and regulations, ensuring that procurements are conducted fairly and that government spending is managed responsibly. The FAR establishes these thresholds to balance the need for competition with administrative efficiency and other procurement considerations.