The firm Koprince McCall Pottroff LLC noted last year that the FAR Council (DoD, GSA, and NASA) issued a proposed rule to adjust the statutory acquisition thresholds for inflation. Under 41 U.S.C. § 1908, the federal government must adjust these thresholds every five years to account for inflation. Effective October 1, 2025, the updated thresholds have gone into effect. In this Koprince McCall post, they look at the new thresholds.
The finalized rule, issued on August 27, 2025, mostly matches the proposed rule from 2024, although there are some differences.
- The Micro-Purchase Threshold has been increased from $10,000 to $15,000.
- The Simplified Acquisition Threshold has been increased from $250,000 to $350,000. Both the Micro-Purchase and Simplified Acquisition Thresholds can be found in FAR 2.101.
- The threshold at FAR 6.204(b) for requiring a separate justification or determination when a contracting officer wants to sole source eligible 8(a) awards has been increased from $25 million to $30 million (mainly impacting entity-owned 8(a) companies).