January 10, 2006 | Northern Virginia Technology Council B2G Committee Legal Updates

Proposed Increase in FAR Dollar Thresholds

2 min

On December 12, 2005, both the Federal Acquisition Regulatory Council ("FAR Council") and the Cost Accounting Standards Board ("CAS Board") issued proposed rules that would increase the amount of certain dollar thresholds pursuant to the 2005 Defense Authorization Act. 

Dollar amounts affected by the proposed rule include the following: the micro-purchase threshold (to be increased from $2,500 to $3,000); the Federal Procurement Data System reporting threshold (to be increased from $2,500 to $3,000); the cost and pricing data threshold (to be increased from $550,000 to $600,000); and the threshold for the subcontracting plan requirement (to be increased from $500,000 to $550,000; with the threshold for construction contracts remaining at $1M).  Other FAR Council changes, including an alteration to the dollar amount needed to be considered a "major system", were proposed at the same time. 

The CAS Board has proposed increasing the threshold for contract applicability (from $500,000 to $550,000); the threshold for applicability to a business unit (from $7.5M to $8.5M); the threshold for waiver authority (from $15M to $17M); and a variety of others. 

Comments on the proposed rule must be submitted by February 10, 2006, and can either be submitted by e-mail (casb2@omb.eop.gov) or by facsimile (202-395-5105).  For further explanation of the proposed changes and submission requirements, please see the December 12, 2005 Federal Register (Vol. 70, No. 237).

This update is published by Venable LLP. Venable publications are not intended to provide legal advice or opinion. Such advice may only be given when related to specific fact situations. © Copyright by Venable LLP 2006.