Thursday, July 2, 2015

Threshold for Certified Cost or Pricing Data Will Increase to $750,000

The FAR Councils released a final rule today that will, among other acquisition related thresholds, will increase the threshold for submission of certified cost or pricing data from $700,000 to $750,000. The change will become effective on October 1, 2015.

The certified cost or pricing data threshold as well as other inflation related thresholds are required, by statute to be adjusted every five years for inflation using the Consumer Price Index for all urban consumers. The last adjustment was in 2010 when the threshold was raised from $650,000 to $700,000. By adjusting thresholds, the relative risks to the Government remain essentially the same and the Government does not end up doing more work simply because of inflation.

Other thresholds impacted by the final rule include:
  • The micro-purchase base threshold of $3,000 (FAR 2.101) is increased to $3,500.
  • The simplified acquisition threshold (FAR 2.101) of $150,000 is unchanged.
  • The FedBizOpps preaward and post-award notices (FAR part 5) remain at $25,000 because of trade agreements.
  • The threshold for use of simplified acquisition procedures for acquisition of commercial items (FAR 13.500) is raised from $6.5 million to $7 million.
  • The statutorily equivalent Cost Accounting Standard threshold are raised from $700,000 to $750,000 (FAR 30.201-4(b)(1).
  • The prime contractor subcontracting plan (FAR 19.702) floor is raised from $650,000 to $700,000, and the construction threshold of $1,500,000 stays the same.
  • 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).

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