FAR Acquisition Thresholds Updated

The FAR Case 2014-022 final rule issued with Federal Acquisition Circular 2005-83, which goes into effect today, updates the acquisition-related thresholds prescribed in the Federal Acquisition Regulation. The rule implements 41 USC 1908, which requires an adjustment for inflation every five years of acquisition-related thresholds using the Consumer Price Index for all urban consumers. As a matter of policy, DoD, GSA, and NASA use the same methodology to adjust nonstatutory FAR acquisition-related thresholds. The rule does not change the Construction Wage Rate Requirements statute (Davis-Bacon Act), Service Contract Labor Standards statute, and trade agreements thresholds (see FAR 1.109). This was the third review of FAR acquisition-related thresholds. The rule impacts the thresholds as follows:

  • the micro-purchase base threshold of $3,000 (FAR 2.101) increases to $3,500;
  • the simplified acquisition threshold (FAR 2.101) of $150,000 remains unchanged;
  • the FedBizOpps preaward and post-award notices (FAR Part 5) remains at $25,000 because of trade agreements;
  • the threshold for use of simplified acquisition procedures for acquisition of commercial items (FAR 13.500) goes from $6.5 million to $7 million;
  • the cost or pricing data threshold (FAR 15.403-4) and the statutorily equivalent Cost Accounting Standard threshold increases from $700,000 to $750,000;
  • the prime contractor subcontracting plan (FAR 19.702) floor goes from $650,000 to $700,000, and the construction threshold of $1.5 million stays the same; and
  • the threshold for reporting first-tier subcontract information including executive compensation increases from $25,000 to $30,000 (FAR Subpart 4.14 and FAR 52.204-10).

About George Gullo

George Gullo is a Senior Writer/Analyst in the Government Contracts group at Wolters Kluwer Law and Business. George serves as the principal editor of Cost Accounting Standards Guide and supports all of the group’s print and electronic publications, as well as legal research tools, including the Government Contracts Reporter, Board of Contract Appeals Decisions, and the FAR and DFARS Matrix Smart Charts. With more than 20 years experience in the legal publishing industry, including over 10 years in the government contracts area, George also has a background in legal and business transactions. He is a graduate of DePaul University College of Law and a licensed Illinois attorney.
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