The Department of Defense has issued a class deviation raising the micro-purchase threshold to $10,000, effective immediately.
The increase implements Section 821 of the 2019 National Defense Authorization Act, which was signed into law last month.
The memo explains that there are a few exceptions to the standard $10,000 threshold. The class deviation “does not change the micro-purchase threshold exceptions of $2,000 for acquisitions of construction subject to [the Davis-Bacon Act] and $2,500 for acquisitions of services subject to [the Service Contract Act].” Definitions of these more limited authorities remain “as is” under FAR 2.101. The memo also sets forth instances, such as contingency operations, where the micro-purchase threshold may be as high as $30,000.
Kudos to the DoD for moving so quickly to implement the new statutory authority. No doubt many Contracting Officers will be grateful.