Government Contracts New FAR Micro and Simplified Acquisition Thresholds Proposed
Tuesday, November 5, 2019

New FAR Micro and Simplified Acquisition Thresholds Proposed

By Government Contracts Editorial Staff

A proposed rule would amend the Federal Acquisition Regulation to implement National Defense Authorization Act provisions increasing the micro-purchase and simplified acquisition thresholds. Sections 805 and 806 of the FY 2018 NDAA (PL 115-91) amended 41 USC 1902(a) to increase the SAT to $250,000 and the MPT to $10,000. Section 217(b) of the FY 2017 NDAA (PL 114-328) increased the MPT for acquisitions from institutions of higher education or related or affiliated nonprofit entities, or from nonprofit research organizations or independent research institutes, to $10,000, but authorized a higher amount under certain circumstances. Section 1702(a) of the FY 2018 NDAA amended section 15(j)(1) of the Small Business Act (15 USC 644(j)(1)) to replace specific dollar thresholds with the terms “micro-purchase threshold” and “simplified acquisition threshold.”

$250,000 SAT. The rule would amend FAR 2.101, Definitions, by increasing the MPT from $3,500 to $10,000. The new MPT definition would also reflect the higher threshold exception for institutions of higher education and other entities covered by section 217(b). For the SAT definition, the existing $150,000 threshold would increase to $250,000. The SAT for acquisitions of supplies or services to support a humanitarian or peacekeeping operation would increase from $300,000 to $500,000. The rule also proposes to replace various non-statutory, stated dollar thresholds that are intended to correspond with the MPT and SAT, with the phrase “micro-purchase threshold” or “simplified acquisition threshold.” Referencing some stated thresholds by name instead of by a specific dollar value will make maintaining the FAR easier. Finally, the rule proposes to add text in FAR Subpart 13.5 clarifying the use of the approval thresholds, based on the increased SAT, for sole source justifications executed under the simplified procedures for certain commercial items. A complete listing of all the FAR sections impacted by the rule appears in the regulation table below. Comments on the proposed rule referencing FAR Case 2018-004 are due December 2, 2019. For the text of the rule, see ¶70,006.345.

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