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).