"The Times, They are A-Changin" We're talking about acquisition-related thresholds!

The Federal Register published the proposed "Inflation Adjustment of acquisition-related Thresholds" on 11/29/2024 while everyone was busy with their holiday weekend!

Comments closed on 1/28/2025 with 34 comments on the docket.

The proposed rule affects the most heavily used thresholds as follows:

• The micro-purchase threshold at FAR 2.101 will increase from $10,000 to $15,000. Paragraphs (3)(i) and (ii) of the definition, for acquisitions to support contingency operations or to facilitate defense against certain attacks, are proposed to increase from $20,000 to $25,000 and from $35,000 to $40,000, respectively. Paragraph (4)(i), for acquisitions from institutions of higher education, nonprofit entities, or nonprofit and independent research activities, is proposed to increase from $10,000 to $15,000.

• The simplified acquisition threshold will increase from $250,000 to $350,000. Paragraphs (1)(i) and (ii) of the definition, for acquisitions to support contingency operations or to facilitate defense against certain attacks, are proposed to increase from $800,000 to $1 million and from $1.5 million to $2 million, respectively. Paragraph (2) of the definition, for acquisitions to support humanitarian or peacekeeping operations, is proposed to increase from $500,000 to $650,000.

• The threshold for reporting first-tier subcontract information including executive compensation (FAR subpart 4.14) will increase from $30,000 to $40,000.

• The preaward and postaward notices (FAR part 5) remain at $25,000 because of trade agreements.

• The threshold requirement for limiting competition (FAR part 6) to eligible 8(a) awards over $25 million is increased to $30 million.

• Approval thresholds of justifications for other than full and open competition (FAR 6.304) will increase from $750,000 to $950,000. Paragraphs (a)(3) and (4) will increase from $15 million to $20 million and from $75 million to $95 million, respectively. The $100 million threshold applicable to DoD, NASA, and the Coast Guard will increase to $150 million.

• The ceiling for using simplified procedures for certain commercial products and commercial services (FAR 13.500) will increase from $7.5 million to $9.5 million. For acquisitions described at FAR 13.500(c), the ceiling will increase from $15 million to $20 million.

• The cost or pricing data threshold (FAR 15.403-4) will increase from $2 million to $2.5 million.

• The threshold for justifications of single-award indefinite-delivery contracts (FAR 16.504(c)(1)(ii)(D)( 1 )) will increase from $100 million to $150 million.

• The prime contractor subcontracting plan (FAR 19.702) floor will increase from $750,000 to $950,000. The construction threshold will increase from $1.5 million to $2 million.

Keep an eye out for the final ruling!

The the proposed rule is based on a projected CPI of 323.193 for March 2025. If the actual CPI for March 2025 is higher than 323.193, then additional statutory thresholds may be subject to escalation in the final rule, even though not included in the proposed rule.