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You are here: Home / Government Contracting News / Simplified acquisition threshold to $500,000? House proposes huge increase

May 11, 2015 By AMK

Simplified acquisition threshold to $500,000? House proposes huge increase

The simplified acquisition threshold would increase to $500,000 under the version of the 2016 National Defense Authorization Act currently before the U.S. House of Representatives.

SAT - May 2015If the House proposal ultimately becomes law, the simplified acquisition threshold would more than triple from its current $150,00 level.  Such a dramatic increase in the simplified acquisition threshold could affect nearly all federal contractors – especially small businesses.

Under federal statute, the simplified acquisition threshold (SAT) is set at $100,000.  However, the law also requires an adjustment for inflation every five years.  Because of the inflation review, the FAR was adjusted in 2010 to raise the threshold to $150,000, where it remains today.

Section 854 of the proposed 2016 NDAA would strike the $100,000 statutory threshold and replace it with a $500,000 threshold.  The revised threshold would still be subject to inflation-based adjustments.  Additionally, the proposed 2016 NDAA would increase the micro-purchase threshold from $3,000 to $5,000.

Keep reading this article at: http://smallgovcon.com/statutes-and-regulations/simplified-acquisition-threshold-to-500000-house-proposes-huge-increase/

Filed Under: Government Contracting News Tagged With: Congress, micro purchase, NDAA, SAT, simplified acquisition, small business, threshold

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