Acquisition Related Thresholds Due to Increase

On February 4, 2010, the FAR Councils published a proposal to increase many acquisition related dollar thresholds. The National Defense Authorization Act from 2005 requires an adjustment every five years of acquisition-related thresholds for inflation using the Comsumer Price Index for all urban consumers. The last imflation adjustment was in 2005.

An acquisition-related threshold is a threshold that is specified in law, executive order, or regulation as a factor in defining the scope of the applicability of a policy, procedure, requirement, or restriction provided in that law, executive order or regulation. Examples of thresholds that are not viewed as acquisition-related are those relating to claims, penalties, withholding, payments, required levels of insurance, small business size standards, liquidated damages, etc.

This proposed rule affects thresholds in dozens of FAR sections - to numerous to include here. However, changes to the heavily-used thresholds include:

• The micro-purchase base threshold of $3 thousand will not change.
• The simplified acquisition thresholde will be raised from $100 thousand to $150 thousand.
• The FedBizOpps preaward and post-award notices remain at $25 thousand because of trade agreements.
• Commercial items test proram ceiling will be raised from $5.5 million to $6.5 million.
• The cost and pricing dta threshold will be raised from $650 thousand to $700 thousand.

To view all current FAR thresholds, click here. This reference should update once this is published as a final rule.