41 U.S.C. 1908 requires an inflation adjustment of statutory acquisition-related thresholds every five years. As a result, the following statutory thresholds became effective on 1 October 2015:
• The micro-purchase threshold of $3,000 (FAR 2.101) is increased to $3,500. Note: The simplified acquisition threshold (FAR 2.101) of $150,000 is unchanged.
• The threshold for use of simplified acquisition procedures for acquisition of commercial items (FAR 13.500) is raised 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 are raised from $700,000 to $750,000.
• The prime contractor subcontracting plan (FAR 19.702) threshold is raised from $650,000 to $700,000, while the construction threshold of $1,500,000 stays the same.
• The threshold for reporting first-tier subcontract information, including executive compensation, will increase from $25,000 to $30,000 (FAR 4.14 and 52.204–10).
While it is important to know that these thresholds changed, it’s also important to remember that these changes resonate throughout the FAR wherever these ceilings are referenced.
For example, FAR 19.502-2(a) now states that each acquisition with an anticipated dollar value exceeding $3,500, but not over $150,000, is automatically reserved exclusively for small business. The lower limit had to be changed to address the overall change to the micro-purchase threshold.
So be careful when reading new solicitations and contracts to ensure that you are addressing the new thresholds rather than the old ones.