Government Contracts
Final Rule to Adjust Certain Thresholds to Account for Inflation
20th November 2025
On August 27, 2025, the FAR Council issued a final rule to implement statutorily required adjustments to certain acquisition-related thresholds to account for inflation. Notable threshold adjustments include the following:
- FAR 15.403-4 cost or pricing data threshold for contracts issued on or after July 1, 2018 increased from $2 million to $2.5 million.
- Simplified acquisition threshold increased from $250,000 to $350,000.
- Micro-purchase threshold increased from $10,000 to $15,000.
- Prime contractor subcontracting plan floor increased from $750,000 to $900,000.
The threshold adjustments were effective on October 1, 2025.
The August 27 final rule can be found here.