Acquisition Thresholds Could Change with New Rule

Dollar threshold to increase for some acquisition categories, could affect small businesses

Source: FierceGovernment, Article written by Ryan McDermott, published July 7, 2015

A new final rule on the Federal Register would change the monetary thresholds for certain acquisition categories commensurate with inflation.

Acquisition thresholds are the top dollar amount for certain types of federal purchases.

The Federal Acquisition Regulation requires the federal Civilian Agency Acquisition Council and the Defense Acquisition Regulations Council update the statutory acquisition thresholds every five years – on October 1 of each year evenly divisible by five – using the Consumer Price Index, the July 2 Federal Register notice says.

Changes include:

  • The micro-purchase base threshold of $3,000 is increased to $3,500.
  • The threshold for use of simplified acquisition procedures for acquisition of commercial items is raised from $6.5 million to $7 million.
  • The cost or pricing data threshold and the statutorily equivalent Cost Accounting Standard threshold are raised from $700,000 to $750,000.
  • The prime contractor subcontracting plan floor is raised from $650,000 to $700,000.
  • The threshold for reporting first-tier subcontract information including executive compensation will increase from $25,000 to $30,000.

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