Streamlined Acquisitions Get a Boost with New FAR Thresholds
Zoe Waldman, Intern, contributed to this client alert. What Changed and Why? The FAR Council Issues a Rule to Amend FAR Thresholds for Inflation Every Five Years Pursuant to a Statute. Effective October 1, 2025, the Federal Acquisition Regulation (FAR) Council issued a final rule to amend FAR thresholds applied in federal procurements . By statute, these thresholds are required to be updated for inflation every five years, using the Consumer Price Index . The threshold changes do not apply to the Construction Wage Rate Requirements statute, the Service Contract Labor Standards statute, performance and payment bonds, and trade agreements thresholds . What Are the Key Changes ? 1. Micro-Purchase Threshold (MPT): The MPT is the threshold below which government purchases can be made without soliciting competitive bids, simplifying procurement procedures to expedite small transactions. Standard MPT : Increased from $10,000 → $15,000 Contingency Operations : U.S...