FAR Final Rule: Increased Micro-Purchase and Simplified Acquisition Thresholds

The Federal Acquisition Regulation has officially been updated to increase the micro-purchase threshold and the simplified acquisition threshold, effective August 31, 2020. Various federal agencies had already increased the thresholds through deviations, but this rule makes it official across the board. A few additional thresholds will increase due to inflation. Read on for the details on how this could impact federal procurement.

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2018 NDAA Increases Civilian Micro-Purchase Threshold to $10,000

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.

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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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