Reminder: revised acquisition-related dollar thresholds amending the Federal Acquisition Regulation for government contractors take effect Oct. 1.
Section 1908 of the Federal Acquisition Regulation (FAR) requires an adjustment every five years of statutory acquisition-related thresholds for inflation, using the Consumer Price Index. Government contractors should be aware of these adjustments since they affect a number of areas, including when contractors must report the executive compensation of their first-tier subcontracts, when they must report certified cost or pricing data, and more.
Under a final rule issued in July by the Department of Defense, General Services Administration, and National Aeronautics and Space Administration, the following frequently used thresholds will be adjusted for prime contracts issued on or after Oct. 1:
The micro-purchase base threshold of $3,000 will increase to $3,500 (FAR 2.101).
The simplified acquisition threshold of $150,000 will remain unchanged (FAR 2.101).
The FedBizOpps pre- and post-award notices will remain at $25,000 because of trade agreements (FAR part 5).
The threshold for use of simplified acquisition procedures for acquisition of commercial items will increase from $6.5 million to $7 million (FAR 13.500).
The cost or pricing data threshold and the statutorily equivalent Cost Accounting Standard threshold will increase from $700,000 to $750,000 (FAR 15.403–4).
The prime contractor subcontracting plan floor will increase from $650,000 to $700,000; the construction threshold of $1,500,000 will stay the same (FAR 19.702).
The threshold for reporting first-tier subcontract information including executive compensation will increase from $25,000 to $30,000 (FAR subpart 4.14 and section 52.204–10).
The full list may be found here.