Regulators nudge up simplified acquisition dollar thresholds

Regulatory changes offer modest benefits for both small businesses and large companies

Government procurement regulators are tweaking the numbers on the simplified acquisition threshold, making it easier for agencies to make some purchases without going through burdensome procedures.

The simplified acquisition threshold is increasing from $100,000 to $150,000, according to a Federal Register notice dated Aug. 30.

The Civilian Agency Acquisition Council and the Defense Acquisition Regulations Council are required to consider adjusting the dollar figure every five years to keep pace with inflation. Inflation adjustment of thresholds is a means of maintaining the status quo, regulators said.

However, they haven’t raised the simplified acquisition threshold in 15 years.

The modest increase, which takes effect Oct. 1, benefits small businesses because it allows agencies to make slightly larger purchases without the lengthy formal procedures of purchasing, said Larry Allen, president of the Coalition for Government Procurement.

The rule change has something for larger companies, too. Regulators raised their purchasing threshold by $100,000, so the larger companies won’t have to set up a subcontracting plan unless the contract is valued at $650,000 or more, the notice states.

In addition, the cost or pricing data threshold, which helps a contracting officer determine whether a price is reasonable, will increase from $650,000 to $700,000.

About the Author

Matthew Weigelt is a freelance journalist who writes about acquisition and procurement.

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