DoD Increases Micro-Purchase Threshold to $10,000, Effective Immediately

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.