DODFinal Rule
Federal Acquisition Regulation: Inflation Adjustment of Acquisition-Related Thresholds
Finance & BankingLabor & WorkplaceTechnology
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Summary
The Department of Defense is updating the dollar amounts used to determine how government contracts are awarded and managed, adjusting them for inflation so the rules keep pace with rising costs. This affects how federal agencies buy goods and services, potentially changing which companies can bid on contracts and what rules apply to different purchases.
Key Points
- 1The military updates spending thresholds annually to account for inflation, meaning the dollar limits that trigger different contract rules are being raised
- 2These threshold changes affect when competitive bidding is required, which small businesses can participate, and what oversight rules apply to government purchases
- 3Companies bidding on federal contracts need to know the new dollar amounts to understand if their contracts qualify as small business set-asides or require full competition
- 4This is a routine administrative update that happens every year to keep contracting rules aligned with actual purchasing power rather than outdated dollar amounts
- 5The changes take effect in fiscal year 2025, so federal agencies must use the new thresholds when planning and awarding new contracts
Key Dates
Published
August 27, 2025
This summary is for informational purposes only. It may not capture all nuances of the regulation. Always refer to the official text for authoritative information.
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