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DoD Finalizes Inflation Adjustments for Acquisition Thresholds

The Department of Defense has issued a final rule (DFARS Case 2009-D003) amending the Defense Federal Acquisition Regulation Supplement, and its companion resource, Procedures, Guidance and Information, to implement Section 807 of the Ronald W. Reagan National Defense Authorization Act for Fiscal Year 2005 (PL 108-375). Section 807 provides for five-year adjustments of statutory acquisition-related thresholds, except for Davis-Bacon Act, Service Contract Act, and trade agreements thresholds. This rule also adjusts some non-statutory acquisition-related thresholds. The first review of DFARS acquisition-related thresholds was conducted under DFARS Case 2004-D022 (¶70,016.414) during fiscal year 2005. This is the second review of DFARS acquisition-related thresholds. DoD published a proposed rule (¶70,020.261) that contained a detailed explanation of what an acquisition-related threshold is, which acquisition-related thresholds are not subject to escalation adjustment under the rule, and how DoD analyzes statutory and non-statutory acquisition-related thresholds. The applicable thresholds increase as follows:

l $55,000 to $65,000,

l $100,000 to $150,000,

l $250,000 to $300,000,

l $300,000 to $350,000,

l $550,000 to $650,000,

l $1 million to $1.5 million,

l $5.5 million to $6.5 million,

l $11.5 million to $12.5 million,

l $78.5 million to $85.5 million, and

l $572.5 million to $625.5 million.

A full list of the impacted DFARS provisions appears in the regulation table below. For the full text of the final rule, which goes into effect October 1, 2010, see ¶70,016.582.

(The news featured above is a selection from the news covered in the Government Contracts Report Letter, which is published weekly and distributed to subscribers of the Government Contracts Reporter. )

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