FAR Councils raise simplified acquisition threshold

The simplified acquisition and subcontracting thresholds are among several acquisition ceilings that will increase on Oct. 1.

The Federal Acquisition Councils issued a final rule today detailing several changes, including increasing the simplified acquisition threshold to $150,000 from $100,000.

The simplified acquisition threshold governs when agencies can buy products or services more quickly, more economically and with a focus on small businesses.

In another significant change, prime vendors will have to submit subcontracting plan on all contracts worth more than $650,000 instead of $500,000.


The FAR Councils state that the final rule doesn’t change from the proposed rule issued in February.

Other changes in the final rule include:

  • The FedBizOpps pre-award and post-award notices remain at $25,000 because of trade agreements.
  • Commercial items test program ceiling is raised from to $6.5 million from $5.5 million.
  • The cost or pricing data threshold is raised to $700,000 from $650,000.
  • The Miller Act threshold is raised by this rule to $150,000 from $100,000. The Miller Act requires payment and performance bonds when agencies acquire construction services at rates higher than the threshold.

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