2019 NDAA Raises Micro-purchase Threshold for DoD

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The 2019 NDAA brought a welcome surprise for many defense contractors—the DoD plans to increase its micro-purchase threshold from $5,000 to $10,000, which matches the increase given to civilian agencies in last year’s NDAA.

Earlier this year, the Civilian Agency Acquisition Council (CAAC) issued a class deviation to the FAR to implement the revised simplified acquisition threshold (SAT) and micro-purchase threshold that were included in the 2018 NDAA before the FAR was revised. These deviations increased the SAT to $250,000 and the micro-purchase threshold to $10,000 (from $150,000 and $3,500, respectively). However, CAAC’s instructions left it to the individual agencies to authorize the threshold changes in their own regulations, which created a less than uniform implementation of these changes across civilian agencies.

Because the 2019 NDAA’s increase to the micro-purchase threshold is applicable only to DoD, it is likely that DoD will act quickly to put in place a similar class deviation until the FAR can be amended to account for the changed limit. Stay tuned to see when this change will become a reality for DoD contractors.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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