Micro-Purchase and Simplified Acquisition Thresholds Raised by DoD

Department of Defense Class Deviation 2018-O0013 raises micro-purchase and simplified acquisition thresholds and revises the special emergency procurement authority.

The deviation raises the DoD micro-purchase threshold to $5,000, except the threshold is $10,000 for certain DoD research program and laboratory activities and for acquisitions from qualifying higher education institutions and research groups.

For acquisitions supporting specified contingency operations, emergencies, and disaster assistance, the threshold is $20,000 for contracts to be awarded and performed, or purchases to be made, inside the United States, and $30,000 for any contract to be awarded and performed, or purchase to be made, outside the U.S.

For simplified acquisitions, the new threshold is $250,000.

However, for acquisitions supporting certain contingency operations, emergencies, and disaster assistance, the threshold is $750,000, if the contract will be awarded and performed, or the purchase will be made, inside the U.S., and $1.5 million, for any contract to be awarded and performed, or purchase to be made, outside the U.S.

For acquisitions of supplies or services that will be used to support a humanitarian or peacekeeping operation the threshold is $500,000 if the contract will be awarded and performed, or purchase will made, outside the U.S.

In addition, the deviation authorizes supplies or services to be used to facilitate recovery from a cyberattack to be treated as commercial items, and transfers the authority to determine whether an acquisition supports contingency operations, emergencies, or disaster assistance eligible for the higher thresholds from the “head of the agency” to the “head of the contracting activity.”

Finally, the deviation exempts specified contingency operations, emergencies, and disaster assistance acquisitions from the DoD unique identification requirements in DFARS 211.274-2(b), the policies in DFARS 215.371-2 on receiving only one offer, and the approval requirements at DFARS 215.371-4 on the use of time-and-materials contracts.

The class deviation implements sections 805 and 1702(a) of the National Defense Authorization Act for Fiscal Year 2018 (PL 115-91) and section 217(b) of the FY 2017 NDAA (PL 114-328).

The class deviation went into effect on April 13, 2018. It will remain in effect until it is incorporated in the Federal Acquisition Regulation and the DoD FAR Supplement, or until it is otherwise rescinded.

The full text of the notice can be found here.

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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