Section 1908 of Title 41 of the United States Code requires that statutory acquisition-related thresholds be adjusted for inflation every five years, using the Consumer Price Index for All Urban Consumers (CPI). The statute excludes certain thresholds such as those under the Davis-Bacon Act, Service Contract Labor Standards, performance and payment bonds, and trade agreements. On August 27, 2025, the FAR Council—comprising the Office of Federal Procurement Policy, the Department of Defense (DoD), the General Services Administration, and the National Aeronautics and Space Administration (NASA)—issued a final rule that adjusted numerous acquisition-related thresholds for inflation as follows:
- Micro-Purchase Threshold (FAR 2.101): Increased from $10,000 to $15,000; contingency-related thresholds raised to $25,000 (domestic) and $40,000 (overseas).
- Simplified Acquisition Threshold (FAR 2.101): Increased from $250,000 to $350,000; raised to $1 million for domestic contingency operations and $2 million for overseas contingency operations; and $650,000 for humanitarian/peacekeeping operations.