💰Inflation Adjustments in Defense Acquisition Regulations
Defense Federal Acquisition Regulation Supplement: Inflation Adjustment of Acquisition-Related Thresholds (DFARS Case 2024-D002)
Summary
DoD is issuing a final rule amending the Defense Federal Acquisition Regulation Supplement (DFARS) to further implement the statute that requires an adjustment every 5 years of statutory acquisition-related thresholds for inflation. The adjustment uses the Consumer Price Index for all urban consumers and does not apply to the Construction Wage Rate Requirements statute (Davis-Bacon Act), Service Contract Labor Standards statute, performance and payment bonds, and trade agreements thresholds. DoD also used the same methodology to adjust some nonstatutory DFARS acquisition-related thresholds in 2025.
Agencies
- Defense Department
- Defense Acquisition Regulations System
Business Impact
$$ - Med
The regulatory change introduces inflation adjustments to DFARS acquisition-related thresholds, affecting compliance and financial planning for contractors. These adjustments impact the bid structures for government contracts, with significant increases in thresholds that may influence competitive strategies and cost management.