Federal Acquisition Regulation: Inflation Adjustment of Acquisition-Related Thresholds

Key Points

• 1NASA updates dollar thresholds each year to reflect inflation, so a contract worth $100,000 in 2023 might trigger different rules than the same dollar amount in 2025
• 2These threshold changes affect when government agencies must open contracts to multiple bidders rather than awarding them to a single contractor
• 3Companies bidding on federal contracts need to know the new thresholds to understand what competition and documentation requirements apply to their bids
• 4The regulation simplifies procurement rules by keeping the value-based cutoff points consistent with economic reality instead of using outdated dollar amounts
• 5This update applies specifically to NASA contracts but follows federal standards that other agencies also use for their purchasing decisions

Key Dates