Type: Law Bulletins
Date: 06/27/2018

Increased Dollar Thresholds for Department of Defense Procurements

The 2018 National Defense Authorization Act (NDAA) changed the dollar thresholds for the simplified acquisition threshold (SAT), the micro-purchase threshold (MPT), and the threshold at which certified cost or pricing data is required to be obtained.

The changes are as follows:

  • SAT– Increased from $150,000 to $250,000 (higher for certain procurements such as contingency operations).
  • MPT– Increased from $3,500 to $5,000 (although the NDAA provided for an increase to $10,000, the Department of Defense chose to raise it to only $5,000 except for certain procurements).
  • Certified Cost or Pricing Data– Increased from $750,000 to $2 million.

Because the NDAA applies primarily to the Department of Defense, the statutory change meant that the two acquisition thresholds in the FAR were out of sync with their authorizing statutes. So, on April 13, two Class Deviations (2018-O0012 and 2018-O0013) were issued to address the new thresholds. Although the increased SAT and MPT thresholds are already in effect, the increased threshold for certified cost or pricing date is effective starting July 1.

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