📈Proposed Rule for Inflation Adjustment of DoD Acquisition Thresholds
Defense Federal Acquisition Regulation Supplement: Inflation Adjustment of Acquisition-Related Thresholds (DFARS Case 2024-D002)
Summary
DoD is proposing to amend 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 is also proposing to use the same methodology to adjust some nonstatutory DFARS acquisition-related thresholds in 2025.
Agencies
- Defense Department
- Defense Acquisition Regulations System
Business Impact
$$ - Med
The proposed rule outlines mechanisms for adjusting acquisition-related thresholds for inflation, impacting compliance and reporting requirements for businesses engaged with the DoD. Increased thresholds may alleviate burdens on contracts, potentially benefiting small businesses by keeping them eligible for simplified acquisition processes.