Subject: Federal Acquisition Regulation: Inflation Adjustment of Acquisition-Related Thresholds.

Purpose: To inform the VA acquisition workforce (AWF) that Federal Acquisition Regulation (FAR) Council has issued FAC 2025-006 which increases FAR thresholds.  The AWF should utilize the revised FAR thresholds in accordance with the effective dates and circumstances conditioned in the table below.

FAR Part	Revised FAR Thresholds	Effective Dates
FAR part 2	MMicro-purchase threshold (MPT) at FAR 2.101 increases $10,000 to $15,000. Acquisitions to support contingency operations or to facilitate defense against certain attacks, the thresholds increase $20,000 to $25,000, and $35,000 to $40,000, respectively. Simplified acquisition threshold (SAT) increases $250,000 to $350,000. Acquisitions to support contingency operations or to facilitate defense against certain attacks thresholds increase from $800,000 to $1 million, and from $1.5 million to $2 million, respectively. Humanitarian or peacekeeping operation, the threshold increases from $500,000 to $650,000. In the definition “Major system,” paragraph (2) increases $2.5 million to $3 million.	FAC 2025-06  October 1, 2025, and until a VA FAR part 2 Class Deviation (CD) is effective.
FAR part 3	3.502-2(i) increases $150,000 to $200,000. 3.502-3 increases $150,000 to $200,000. 3.804 increases $150,000 to $200,000. 3.808 in paragraphs (a) and (b) increases $150,000 to $200,000, respectively. 3.1004 in paragraphs (a), (b)(1)(i), and (b)(3) increases $6 million to $7.5 million.	FAC 2025-06 October 1, 2025, and until VA FAR part 3 CD is published and effective. (November 3, 2025)
FAR part 4	Threshold for reporting first-tier subcontract information including executive compensation increases from $30,000 to $40,000.	FAC 2025-06  October 1, 2025, and until VA FAR part 4 CD is published and effective. (November 3, 2025).
FAR part 5	The pre-award and post-award notices remain at $25,000 because of trade agreements. 5.101(a)(2) increases $15,000 to $20,000. 5.205(d)(2) increases $15,000 to $20,000. 5.206(a)(2) increases $15,000 to $20,000. 5.303(a) increases $4.5 million to $5.5 million.	FAC 2025-06  October 1, 2025, and until VA FAR part 5 CD is effective. (November 3, 2025)
FAR part 6	Award of a sole-source contract to an eligible 8(a) participant is increased from $25 million to $30 million. Approval thresholds of justifications for other than full and open competition have increased: from $750,000 to $900,000, from $15 million to $20 million, and $75 million to $90 million.	Federal Acquisition Regulatory Council’s model deviation text to FAR part 6 (October 1, 2025)
FAR part 8	8.404(b)(2)increases $600,000 to $750,000. 8.405-3 (a)(3)(ii), (a)(3)(iii), and (a)(7)(v) increase from $100 million to $150 million, respectively.	FAC 2025-06  October 1, 2025, and until VA FAR part 8 CD is effective. (November 3, 2025)
FAR part 9	9.104-5(a)(2) increases $10,000 to $15,000. 9.104-5(c) increases $5.5 million to $7 million. 9.104-7(b) and (c)(1) increase $600,000 to $750,000, respectively. Increase $35,000, wherever it appears, to $45,000.	FAC 2025-06  October 1, 2025, and until a VA FAR part 9 CD is published and effective. (November 3, 2025)
FAR part 10	N/A	RFO Removed FAC 2025-06 section.
FAR Part 12	12.203(a) increases $7.5 million to $9 million.	FAC 2025-06  October 1, 2025, and until VA FAR part 12 CD is published and effective. (November 3, 2025)
FAR part 13 (NOTE: for the RFO, some of FAR part 13 has moved to FAR part 12.)	13.000 increases $7.5 million to $9 million. 13.003(c)(1)(ii) and (g)(2) increases $7.5 million to $9 million, respectively. 13.303-5(b)(1) increases $7.5 million to$9 million. FAR 13.500(a),the ceiling for simplified procedures for certain commercial products and commercial services is increased from $7.5 million to $9 million. FAR 13.500(c), the $15 million ceiling is not increasing. 13.402(a) increases $35,000 to $45,000. 13.500(a) increases $7.5 million to $9 million.	FAC 2025-06  October 1, 2025, and until VA part 13 CD is published and effective. (November 3, 2025)
FAR part 15	15.403-1(c)(3)(iv) increases $20 million to $25 million. The cost or pricing data threshold at FAR 15.403-4, for contracts awarded before July 1, 2018, increases from $750,000 to $950,000. For contracts issued on or after July 1, 2018, the threshold increases from $2 million to $2.5 million. 15.404-3(c)(1)(i) increases $15 million to $20 million. 15.407-2(c)(1) and (c)(2) increases $15 million to $20 million. 15.408, in Table 15-2, section II, paragraph A. (2) increases $15 million to $20 million.	FAC 2025-06  October 1, 2025, and until VA FAR part 15 CD is published and effective. (November 3, 2025)
FAR part 16	16.503(b)(2) increases $100 million to $150 million. 16.503(d) increases $15 million to $20 million. 16.504(c)(1)(ii)(D) (1) and (D)(3) increases $100 million to $150 million, respectively. 16.504 (c)(2)(i) increases $15 million to $20 million. 16.506(f) and (g) increases $15 million to $20 million, respectively. 16.506(h) increases $6 million to$7.5 million.	FAC 2025-06  October 1, 2025, and until VA FAR part 16 CD is published and effective. (November 3, 2025)
FAR part 17	17.108(a) increases $15 million to $20 million. 17.108(b) increases $150 million to $200 million. 17.500(c)(2) increases $600,000 to $750,000.	FAC 2025-06  October 1, 2025, and until VA FAR part 17 CD is published and effective. (November 3, 2025)
FAR part 19	FAR 19.702, The prime contractor subcontracting plan threshold increases $750,000 to $900,000, and $1.5 million to $2 million for construction. 19.704(a)(9) increases $750,000 to $900,000  and $1.5 million to $2 million for construction. 19.804-6(c)(2) increases $7 million and $4.5 million to $8.5 million and $5.5 million respectively. 19.805-1(a)(2) increases $7 million to $8.5 million for acquisitions assigned manufacturing NAICS codes, and for all other acquisitions $4.5 million to $5.5 million. 19.808-1(a) increases $25 million to $30 million.1 9.1306(a)(2)(i) increases $7 million to $8.5 million. 19.1306 (a)(2)(ii) increases $4.5 million to $5.5 million. 19.1406(a)(2)(i) increases $7 million to $8.5 million. 19.1406 (a)(2)(ii) increases $4 million to $5 million. 19.1506(c)(1)(i) increases $7 million to $8.5 million. 19.1506 (c)(1)(ii) increases $4.5 million to $5.5 million.	FAC 2025-06  October 1, 2025, and until VA FAR part 19 CD is published and effective. (November 3, 2025)
FAR part 22	22.305(a) increases $150,000 to $200,000. 22.602 increases $15,000 to $20,000. 22.603(b) increases $15,000 to $20,000. 22.605 (a)(1), (a)(2), (a)(3), and (a)(5) increase $15,000 to $20,000, wherever it appears.2 2.1103 increases $750,000 to $900,000. 22.1303(a) and (c) increase $150,000 to $200,000, respectively. 22.1310(a)(1) increases $150,000 to $200,000. 22.1402(a) increases $15,000 to $20,000. 22.1408(a) introductory text increases $15,000 to $20,000. 22.1701(b)(2) increases $550,000 to $700,000. 22.1703(c)(1)(i)(B) and (c)(3)(i)(B) increase $550,000 to $700,000, respectively. 22.1705(b)(1) increases $550,000 to $700,000. 23.109(b)(2) increases $150,000 to $200,000.	FAC 2025-06  October 1, 2025, and until VA FAR part 22 CD is published and effective.
FAR part 23	23.109(b)(2) increases $150,000 to $200,000.	FAC 2025-06  October 1, 2025, and until a VA FAR part 23 CD is published and effective.
FAR part 25	25.703-2(a)(2) increases $10,000 to $15,000.	FAC 2025-06  October 1, 2025, and until VA FAR part 25 CD is effective. (November 3, 2025)
FAR part 26	26.404 increases $30,000 to $35,000.	FAC 2025-06  October 1, 2025, and until VA FAR part 26 CD is effective. (November 3, 2025)
FAR part 30	30.201-4(b)(1) increases $2 million to $2.5 million.	FAC 2025-06  October 1, 2025, and until VA FAR part 30 CD is effective. (November 3, 2025)
FAR part 32	32.104(d)(2)(i) and (ii) increase $3 million to $3.5 million, respectively. 32.404(a)(7)(i) increases $15,000 to $20,000.	FAC 2025-06  October 1, 2025, and until VA FAR part 32 CD is published and effective. (November 3, 2025)
FAR part 36	N/A	RFO Removed FAC 2025-06 section.
FAR part 42	42.709-1(b) increases $800,000 to $1 million. 42.709-7 increases $800,000 to $1 million. 42.709-7(e) increases $750,000 to $900,000 wherever it appears. 42.709-7 (f) increases $35,000 to $45,000, wherever it appears.	FAC 2025-06  October 1, 2025, and until VA FAR part 42 CD is published and effective. (November 3, 2025)
FAR part 50	50.102-1(b) increases from $75,000 to $90,000.	No effective date.
FAR part 52	52.204-8, 52.209-12, 52.212-3, 52.212-5, 52.213-4, 52.214-28, 52.215-12, 52.215-13, 52.222-50, 52.222-56, 52.225-8, 52.244-6, 52.248-3.	FAC 2025-06  October 1, 2025

FAR Parts Referenced: 2,3,4,5,6,8, 9,10,12,13,15,16,19,22,23,25,26,30,32, 36,42,50,52

Effective Date: Noted in table above.

Expiration Date:  NA

Background: The FAR Council issued a final rule that amends the FAR to further implement 41 U.S.C. 1908. Section 1908 requires an adjustment, for inflation, every
5 years (in years evenly divisible by 5) of statutory acquisition-related thresholds using the Consumer Price Index for all urban consumers, except for the Construction Wage Rate Requirements statute (Davis-Bacon Act), Service Contract Labor Standards statute, performance and payment bonds (formerly the Miller Act), and trade agreements thresholds. This Acquisition Flash provides guidance on how to proceed with implementing the revised thresholds based on the current state of VA’s implementation of the Revolutionary FAR Overhaul.

Applicability: This deviation applies to all VA components.

Action Required: Contracting officers shall comply with this Acquisition Flash to implement the required changes.

Additional Information: The following information is to provide clarity for adherence to acquisition regulations. The AWF should consider the following.

• Ask if VA’s FAR part CD has been published?
  • If yes,
    • Then, as of that VA FAR part CD’s effective date, adhere to the instructions in that CD. 
    • Prior to a VA CD’s effective date, adhere to the published FAR, FAC Number 2025-06, VA Acquisition Regulation (VAAR), and VA Acquisition Manual (VAAM), and not the CD.
    • If the Federal Acquisition Regulatory Council’s model deviation text to that FAR part conflicts with the published VAAR or VAAM, adhere to the model deviation text as it takes precedence. However, where the VAAR or VAAM provides supplemental direction, continue to adhere to the VAAR or VAAM supplemental direction.

Direct questions or concerns regarding this deviation to the Office of Acquisition and Logistics (003A), Procurement Policy and Warrant Management Service (003A2A), at va.procurement.policy@va.gov.