Government Contracts

Final Rule to Adjust Certain Thresholds to Account for Inflation

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.

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