Finalized Increases to Micro-Purchase, Simplified Acquisition, and Other Thresholds

Last year, we noted that the FAR Council (DoD, GSA, and NASA) issued a proposed rule to adjust the statutory acquisition thresholds for inflation. Under 41 U.S.C. § 1908, the federal government must adjust these thresholds every five years to account for inflation. Effective October 1, 2025, the updated thresholds have gone into effect. In this post, we’ll look at the new thresholds.

The finalized rule, issued on August 27, 2025, mostly matches the proposed rule from 2024, although there are some differences.

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Including Dollar Amount in Claim “Sum Certain”-ly Serious Business

In a recent case, the Armed Services Board of Contract Appeals, dismissed a claim for lack of jurisdiction because it did not include a “sum certain.”

The case is a good reminder of the importance of demanding a specific sum of money for most claims.

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ASBCA: Under FAR, “Days” Meant Calendar Days, Not Business Days

The period of performance under a government contract, measured in “days,” meant calendar days–not business days, as the contractor contended.

In a recent decision, the Armed Services Board of Contract Appeals applied the FAR’s general definition of “days” in holding that a contractor had not met the contract’s performance schedule.

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DoD Micro-Purchase Increase Is Now In Effect

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.

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