True or False: Agencies must use Simplified Acquisition Procedures for all purchases of supplies or services not exceeding the Simplified Acquisition Threshold.

The statement is true because agencies are required to use Simplified Acquisition Procedures (SAP) for all purchases of supplies or services that do not exceed the Simplified Acquisition Threshold (SAT), which is set to facilitate the procurement process and to reduce the administrative burden when dealing with lower-value contracts. The use of these simplified procedures aims to promote efficiency and expedite the acquisition of goods and services, making it easier for agencies to meet their needs promptly without being mired in lengthy procurement processes for smaller purchases.

When purchases fall within the threshold, agencies are encouraged to leverage these streamlined methods to ensure that they can acquire necessary items quickly and economically. This approach also helps support small businesses and ensures equitable opportunities for participation in government contracting.

The other options suggest limitations or exceptions that do not align with the overall requirement that SAP must be used for all qualifying purchases below the SAT. There is no specific limitation based on dollar amounts beyond the SAT itself, nor is the use of these procedures restricted to commercial product acquisitions only.