The Simplified Acquisition Threshold and Micro-Purchase Threshold are officially increasing under the FAR. While various agencies had already increased the thresholds through deviations, this change will officially update the rules in the FAR. Although this may seem like a minor update, it will cause changes across the federal contracting landscape and will result in more contracts being issued under the Micro-Purchase and Simplified Acquisition Thresholds.Continue reading
The Department of Defense’s micro-purchase threshold will double, from $5,000 to $10,000, under the 2019 National Defense Authorization Act.
The increase in the DoD micro-purchase threshold will put the DoD on par with civilian agencies after Congress increased the civilian micro-purchase threshold to $10,000 in last year’s NDAA.
Civilian agencies may issue class deviations to quickly implement provisions of the 2018 National Defense Authorization Act increasing the micro-purchase threshold to $10,000 and the simplified acquisition threshold to $250,000.
In a memorandum for civilian agencies issued on February 16, the Civilian Agency Acquisition Council says that agencies may elect to adopt interim authority allowing their Contracting Officers to take advantage of these higher thresholds, even as the FAR Council goes through the formal process of codifying those changes.
The 2018 National Defense Authorization Act (NDAA) has generated lots of headlines regarding the so-called “Amazon amendment” and the Act’s prohibition on the Russian IT company Kaspersky Labs products. But gone under reported is a huge change to how the government makes small purchases.
The 2018 NDAA, signed by President Donald Trump on December 12, increases the standard micro-purchase threshold applicable to civilian agencies from $3,000 to $10,000. Last year, the NDAA increased the Department of Defense (DoD) micro-purchase threshold to $5,000. This larger jump for civilian agencies is likely to have large impact on government purchasing.
The increase to DoD’s micro-purchase threshold mandated by the 2017 National Defense Authorization Act is now in effect.
A Class Deviation issued earlier this month provides, effective immediately, that the DoD micro-purchase threshold is $5,000 for many acquisitions.