Tag Archives: threshold

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

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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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Senate-Passed 2024 NDAA set to Raise DoD Set-Aside Sole-Source Contract Threshold Limits

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Through an amendment to the Senate-Passed 2024 NDAA, the Department of Defense (“DoD”) sole source threshold for many socioeconomic set-aside programs would be increased significantly under the Senate-passed version of the 2024 National Defense Authorization Act. Also a method to adjust DoD sole-source thresholds for inflation would be created.

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President Invokes Stafford Act: What that Means for Federal Contractors

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Under the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121-5207), or more commonly the “Stafford Act,” the President can declare an “emergency” or, if the incident is more serious, a “major disaster.” These declarations, among other things, give federal contracting officials certain acquisition flexibilities not normally available.

In response to COVID-19, President Trump declared a nationwide emergency (an unusual step because these declarations are typically limited to a limited geographic area). And he has since approved major disaster declarations for at least seven states: New York, Washington, California, Iowa, Louisiana, Texas, and Florida. What are some of the flexibilities that have been unleashed by these declarations and how might they impact federal government contractors?

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