Procurement Purchasing Thresholds Are Changing
Certain procurement purchasing thresholds are changing, effective October 1, 2015. As noted in the Federal Register on July 2, 2015, 41 U.S.C. 1908 requires the adjustment of statutory acquisition-related thresholds every five years to reflect changes in inflation. The changes are listed below along with the section where they can be found in the Federal Acquisition Regulation (FAR):
- Micro-purchase, from $3,000 to $3,500 (FAR 2.101).
- Simplified acquisition, no change from the existing $150,000 threshold (FAR 2.101).
- FedBizOpps pre-award and post-award notices, no change from the existing $25,000 threshold (FAR Part 5).
- Use of simplified acquisition procedures for commercial items, from $6.5 million to $7 million (FAR 13.500).
- Cost or pricing data and related Cost Accounting Standards, from $700,000 to $750,000 (FAR 15.403-4).
- Prime contractor subcontracting plan minimum, from $650,000 to $700,000 (FAR 19.702); construction threshold remains the same at $1,500,000.
- Reporting first-tier subcontract information, including executive compensation, from $25,000 to $30,000 (FAR 4.14 and 52.204-10).
The changes in these thresholds will affect the types of procurement actions Federal agencies use for acquiring goods and services, and the types of documentation required of contractors proposing on those procurement actions. If you have any questions regarding these changes, please contact your local Cherry Bekaert GovCon professional.