Good news! The FAR is proposing to keep up with inflation. Small and small, disadvantaged businesses will be pleased to see the increase in the Simplified Acquisition Threshold (SAT) and the sole-source thresholds. Comments are due by January 28, 2025.
The rule includes the following proposed changes to heavily-used thresholds. All these inflation increases assume that the current rate of inflation continues.
- The micro-purchase threshold at FAR 2.101 will increase from $10,000 to $15,000.
- The simplified acquisition threshold will increase from $250,000 to $350,000. Paragraph (2) of the definition, for acquisitions to support humanitarian or peacekeeping operations, is proposed to increase from $500,000 to $650,000.
- The threshold for reporting first-tier subcontract information including executive compensation (FAR subpart 4.14) will increase from $30,000 to $40,000.
- The preaward and postaward notices (FAR part 5) remain at $25,000 because of trade agreements.
- The threshold requirement for limiting competition (FAR part 6) to eligible 8(a) awards over $25 million is increased to $30 million.
- Approval thresholds of justifications for other than full and open competition (FAR 6.304) will increase from $750,000 to $950,000.
- The ceiling for using simplified procedures for certain commercial products and commercial services (FAR 13.500) will increase from $7.5 million to $9.5 million. For acquisitions described at FAR 13.500(c), the ceiling will increase from $15 million to $20 million. Note that FAR 13.500(c ) may be invoked to support a request from the Secretary of State or the Administrator of the United States Agency for International Development to facilitate provision of international disaster assistance; or to support response to an emergency or major disaster.
- The cost or pricing data threshold (FAR 15.403-4) will increase from $2 million to $2.5 million.
- The threshold for justifications of single-award indefinite-delivery contracts (FAR 16.504(c)(1)(ii)(D)(1)) will increase from $100 million to $150 million.
- The prime contractor subcontracting plan (FAR 19.702 – Small Business Subcontracting Plan) floor will increase from $750,000 to $950,000. The construction threshold will increase from $1.5 million to $2 million.
- Under FAR Part 19 (Small Business Programs) for the competitive thresholds for services will increase from $4.5 million to $5.5 million.
Read the 11/29/24 Federal Register Notice here.
