Government Contracts Final DFARS Rule Addresses Architect-Engineer Thresholds
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Friday, June 7, 2019

Final DFARS Rule Addresses Architect-Engineer Thresholds

By Government Contracts Editorial Staff

The Department of Defense has amended the Defense Federal Acquisition Regulation Supplement. The DFARS Case 2018-D057 rule (¶70,016.985) finalizes, without change, a proposed rule (¶70,020.424) to implement section 2804 of the NDAA for FY 2019, which amended the thresholds at 10 USC 2855 for small business set-asides for architect-engineer services, including construction design, in connection with military construction projects or military family housing projects. Section 2804 required these acquisitions to be set aside for small business if valued at less than $1 million. Section 2804 also removed the prohibition on setting aside these acquisitions. As a result, these acquisitions may now be set aside for small business, if valued at $1 million or more. This rule deletes DFARS 219.502-1(2), which prohibited small business set-asides for A-E services for military construction or family housing projects valued at $400,000 or more. In addition, this rule increases the DFARS 219.502-2(a)(iii) ceiling for A-E services set-asides from $400,000 to $1 million.

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