*This article has been updated to clarify that the threshold change applies only to certain 8(a) firms.
The Department of Defense (DoD) is amending the Defense Federal Acquisition Regulation Supplement (DFARS) to increase the threshold for requiring a justification and approval (J&A) before awarding an 8(a) sole source contract. The current threshold is $22 million and it is being increased to $100 million. This threshold change applies only to sole source awards made to 8(a) firms that are owned by an Indian tribe, Alaska Native Corporation, or Native Hawaiian Organization, or when the contracting agency determines there is no other eligible 8(a) participant that will submit an offer at a fair market price. As a result, no J&A will be required for certain 8(a) sole source contracts that do not exceed $100 million. The revised threshold will be included in a new DFARS section 206.303–1, Requirements. The change is being made to implement Section 823 of the fiscal year 2020 National Defense Authorization Act and is set forth in the June 5 Federal Register.
For certain 8(a) firms, this change should increase your contracting opportunities with the DoD for larger dollar value contracts.