Compliance Stuff

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...

  As 2025 approaches, the FAR Council has released its   proposed  adjusted  acquisition thresholds . The proposed adjustment increases the thresholds to account for inflation and the Consumer Price Index. The most heavily used thresholds affected by the proposed increase are the   micro-purchase threshold (MPT)   and the   simplified  acquisition  threshold (SAT) . While the proposed adjustment affects several acquisition thresholds, it is important to note it does not apply to the Construction Wage Rate Requirements statute (Davis-Bacon Act), Service Contract Labor Standard statute, performance and payment bonds, or trade agreement thresholds. What is the Micro-Purchase Threshold? The proposed rule increases the MPT from $10,000 to $15,000. For purchases at or below the MPT, authorized agency officials can use a   Governmentwide commercial purchase card , which is similar to a commercial credit card, to make purchases without solicitin...