Federal Acquisition Regulation: Inflation Adjustment of Acquisition Related Thresholds

The FAR Council has issued a final rule amending the Federal Acquisition Regulation to further implement a statute, which requires an adjustment every five years of statutory acquisition related thresholds for inflation. The adjustment uses the Consumer Price Index for all urban consumers and does not apply to the Construction Wage Rate Requirements statute, Service Contract Labor Standards statute, performance and payment bonds, and trade agreements thresholds. OFPP, DoD, GSA, and NASA are also using the same methodology to adjust nonstatutory FAR acquisition-related thresholds in 2025.