Government Contracts DoD Updates Acquisition-Related Dollar Thresholds for Inflation
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Thursday, October 29, 2020

DoD Updates Acquisition-Related Dollar Thresholds for Inflation

By Government Contracts Editorial Staff

A Department of Defense final rule amends the Defense Federal Acquisition Regulation Supplement to adjust acquisition-related dollar thresholds for inflation. The rule further implements 41 USC 1908, which requires DoD to adjust acquisition-related thresholds for inflation every five years using the Consumer Price Index for all urban consumers. As set forth in FAR 1.109, adjustments are not required for the Construction Wage Rate Requirements statute (Davis-Bacon Act) (40 USC 31), the Service Contract Labor Standards statute (41 USC 67), or trade agreement thresholds (19 USC 2511 and following). This is the fourth review of DFARS acquisition-related thresholds since the statute was enacted on October 28, 2004 (section 807 of the National Defense Authorization Act for Fiscal Year 2004, PL 108-136). As a matter of policy, DoD also uses the same methodology to adjust some nonstatutory DFARS acquisition-related thresholds. The preamble to the proposed rule (¶70,020.448) contained a detailed explanation of what an acquisition-related threshold is, which acquisition-related thresholds are not subject to escalation adjustment, and how DoD analyzes statutory and non-statutory acquisition-related thresholds. Although there were no public comments, the final rule corrects the proposed rule to add the threshold at DFARS 215.403-1(c)(4)(B) and DFARS 225.7201 and the threshold pointer, an address, and web page citation at DFARS 252.225-7004. For the text of the rule, which went into effect on October 1, 2020, see ¶70,017.50.

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