Thursday, May 10, 2018

Its Official - TINA Threshold for All Government Contracts Will Increase to $2 Million

Last month, the Defense Department issued a class deviation to the FAR that will raise the threshold for certified cost or pricing data from $750 thousand to $2 million (see TINA Threshold Rises to $2 Million on July 1st 2018). This class deviation was made to comply with Section 811 of the 2018 NDAA (National Defense Authorization Act).

Last week, the Civilian Agency Acquisition Council (CAAC) followed suit and issued its own class deviation for all other Federal agencies (see Class Deviation from the Federal Acquisition Regulation (FAR) to increase the threshold for requiring certified cost or pricing data dated May 3, 2018).

Like its DoD counterpart, the Civilian threshold increase to $2 million and also like DoD, the effective date is July 1, 2018.

The CAAC memo specifically cautions civilian agencies that contracts awarded on or before June 30, 2018 are excluded from the threshold increase.

This threshold increase also impacts other thresholds that are tied into the cost or pricing data threshold including:

  • Cost Accounting Standards (FAR 30.201-45)
  • Penalties for Unallowable Costs (FAR 42.709)

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