Inflation Adjustments to FAR Thresholds Proposed

The Department of Defense, General Services Administration, and National Aeronautics and Space Administration are proposing  to amend the Federal Acquisition Regulation to further implement 41 USC 1908, which requires the government to adjust acquisition-related thresholds every five years for inflation using the Consumer Price Index for all urban consumers. The proposed rule includes adjustments to the following heavily-used thresholds:

  • The FAR 2.101 micro-purchase threshold will increase from $3,000 to $3,500.
  • The FAR 2.101 simplified acquisition threshold of $150,000 will not change.
  • The FAR Part 5 FedBizOpps preaward and post-award notices will remain at $25,000 because of trade agreements.
  • The FAR 13.500 commercial items test program ceiling will increase from $6.5 million to $7 million.
  • The FAR 15.403-4 cost or pricing data threshold will increase from $700,000 to $750,000.
  • The FAR 19.702 prime contractor subcontracting plan floor will increase from $650,000 to $700,000, but the $1.5 million construction threshold will not change.
  • The FAR Subpart 4.14 and FAR 52.204-10 threshold for reporting first-tier subcontract information, including executive compensation, will increase from $25,000 to $30,000.

The rule also proposes adjustments to nonstatutory FAR acquisition-related thresholds. 41 USC 1908 does not require adjustments to the Construction Wage Rate Requirements statute (Davis-Bacon Act), Service Contract Labor Standards statute, or trade agreements thresholds. Comments referencing FAR Case 2014-022 are due January 26, 2015.

For more information, see the full text of the rule.

About William Van Huis

Bill Van Huis is a Senior Writer/Analyst for Wolters Kluwer Law & Business who tracks and analyzes new regulations impacting federal government contracting. He also follows court decisions involving bid protests and contract disputes. You can find his work in WK publications like Government Contract Reports and the FAR and DFARS Matrix Tools. Bill is a Certified Professional Contracts Manager, and he has a law degree from Southern Illinois University, where he graduated summa cum laude. Prior to joining WK, Bill worked both inside and outside state and local government in the areas of procurement and municipal finance. Bill also worked as a staff attorney for the Illinois Supreme Court.
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