FAR Councils Raise Acquisition Thresholds

On August 31, 2010, the Civilian Agency Acquisition Council and the Defense Acquisition Regulations Council published a final rule that amends the Federal Acquisition Regulation (FAR) by adjusting several acquisition-related thresholds for inflation. Because many FAR and Office of Federal Contract Compliance Programs (OFCCP) obligations directly correlate to particular acquisition thresholds, contractors and subcontractors should review and analyze the price thresholds in their existing contracts/subcontracts now. 

The following acquisition thresholds become effective on October 1, 2010:

• The simplified acquisition threshold (FAR 2.101) is raised from $100,000 to $150,000.
• The commercial items test program ceiling (FAR 13.500) is raised from $5,500,000 to $6,500,000.
• The cost or pricing data threshold (FAR 15.403–4) is raised from $650,000 to $700,000.
• The prime contractor subcontracting plan (FAR 19.702) floor is raised from $550,000 to $650,000, and the construction threshold of $1,000,000 increases to $1,500,000.

The micro-purchase base threshold of $3,000 (FAR 2.101) remains unchanged.  Similarly, the FedBizOpps pre-award and post-award notices (FAR part 5) remain at $25,000 because of trade agreements.

For assistance in determining whether your FAR or OFCCP obligations have changed due to the new acquisition thresholds, or for assistance with any other government contracting questions please contact one of our government contracts attorneys.