DoD Formally Increases 8(a) Sole-Source Threshold to $100 Million

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The Department of Defense (DoD) recently issued a formal amendment to the Defense Federal Acquisition Regulation Supplement (DFARS) to increase the threshold for requiring contracting agencies to issue sole-source justifications of federal contract awards to companies participating in the Small Business Administration’s 8(a) program.  The amendment increases the threshold from $22 million to $100 million.

With this change — which was previously the subject of a DoD class deviation — agencies are not required to issue a formal justification and approval for non-competitively bid contracts if the award amount is $100 million or less (as compared to the previous threshold of $22 million or less).  This change provides contracting agencies greater freedom to award non-competitively bid contracts to 8(a) contractors.

The new DFARS provision — which is located at DFARS 206.303-1 and implements § 823 of the FY 2020 National Defense Authorization Act — is effective immediately.

 

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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