Thresholds Raised For Inflation The FAR councils have adopted a final rule increasing various procurement thresholds to account for inflation. The simplified acquisition threshold of $100,000 will not be raised. The councils said an increase was not justified by the formula used to adjust for inflation. However, they expect the SAT will increase in 2010, and that would increase the range for small business set-asides. The micro-purchase threshold was raised from $2,500 to $3,000. But, by law, it remains at $2,500 for services subject to the Service Contract Act. The threshold for reporting contract actions to the Federal Procurement Data System is raised from $2,500 to $3,000. Prime contractors are now required to submit a subcontracting plan on all contracts above $550,000, rather than the old floor of $500,000. The threshold for construction contracts is unchanged at $1 million. The commercial items test program ceiling goes from $5 million to $5.5 million. The cost and pricing data threshold increased from $550,000 to $600,000. The 2005 Defense Authorization Act requires the thresholds to be adjusted for inflation every five years. The rule was effective Sept. 28.