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.

Featured

  • Contracting
    8 prototypes of the border walls as tweeted by CBP San Diego

    DHS contractors face protests – on the streets

    Tech companies are facing protests internally from workers and externally from activists about doing for government amid controversial policies like "zero tolerance" for illegal immigration.

  • Workforce
    By Mark Van Scyoc Royalty-free stock photo ID: 285175268

    At OPM, Weichert pushes direct hire, pay agent changes

    Margaret Weichert, now acting director of the Office of Personnel Management, is clearing agencies to make direct hires in IT, cyber and other tech fields and is changing pay for specialized occupations.

  • Cloud
    Shutterstock ID ID: 222190471 By wk1003mike

    IBM protests JEDI cloud deal

    As the deadline to submit bids on the Pentagon's $10 billion, 10-year warfighter cloud deal draws near, IBM announced a legal protest.

Stay Connected

FCW Update

Sign up for our newsletter.

I agree to this site's Privacy Policy.