Procurement Thresholds To Be Adjusted For Inflation The Federal Acquisition Regulation councils are proposing inflation adjustments for some procurement thresholds, as required by the 2005 Defense Authorization Act. The simplified acquisition threshold will not be changed from the current $100,000. The councils estimated it is likely to be increased to $150,000 in the next inflation adjustment in 2010. The rule includes the following proposed changes to heavily used thresholds: *The threshold for requiring a prime contractor to submit a subcontracting plan would be raised from $500,000 to $550,000, but the $1 million threshold for subcontracting plans in construction is unchanged. *The micro-purchase threshold would be raised from $2,500 to $3,000. This means purchases up to $3,000 would not be required to be set aside for small businesses. *The threshold for reporting a contract to the Federal Procurement Data System would be raised from $2,500 to $3,000. *Commercial items test program ceiling would be raised from $5 million to $5.5 million. *The cost and pricing data threshold would be raised from $550,000 to $600,000. *The $25,000 threshold for requiring a synopsis before awarding a contract (under FAR Part 5) is unchanged. The councils propose to increase the threshold for public announcement of contract awards from $3 million to $3.5 million. The law requires inflation adjustments every five years, except for thresholds in the Davis-Bacon Act, Service Contract Act and trade agreements. The proposed rule is FAR case 2004-033. Comments are due Feb. 10.