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Sept. 30, 2025
Thresholds are Going FARther on Oct. 1, 2025
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On Aug. 27, 2025, the Federal Acquisition Regulatory (FAR) Council issued the final rule for FAR Case 2024-001 updating multiple acquisition-related thresholds to account for inflation. This update occurs every five years (see 41 U.S.C. 1908). The changes ensure procurement regulations reflect current market conditions and reduce administrative burden.
Effective Date:
The final rule becomes effective on Oct. 1, 2025.
How This Affects You:
- Begin using thresholds for all acquisitions on Oct. 1, 2025, as applicable.
- Update procurement tools, templates, and internal processes accordingly.
- Use the new thresholds to improve and add more flexibility to meet procurement requirements.
It’s important to note that because of the Revolutionary FAR Overhaul updates being made, the threshold updates may not be immediately reflected in each applicable part on www.acquisition.gov/far-overhaul. In the meantime, this chart will help you navigate the changes to common thresholds.
Impact on GSA Most Commonly Used Thresholds
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Threshold Category
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Reference
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Previous Threshold
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New Threshold Effective Oct. 1, 2025
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Micro Purchase Threshold
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FAR 2.101
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$10,000
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$15,000
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Simplified Acquisition Threshold
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FAR 2.101
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$250,000
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$350,000
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Simplified Procedures - Commercial Products and Commercial Services
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FAR RFO 12.201-1
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$7,500,000
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$9,000,000
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Justification
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FAR RFO 6.104-2
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$750,000
$15,000,000
$75,000,000
$100,000,000
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$900,000
$20,000,000
$95,000,000
$150,000,000
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This table is not an exhaustive list. A complete table of threshold updates will be available on Acquisition.gov on Oct. 1, 2025.
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FAR Model Deviations Now Available — Learn Through Practitioner Albums and Earn CLPs
The FAR Council recently posted model deviations as part of the Revolutionary FAR Overhaul (RFO), reshaping how federal acquisition gets done. Among the updates, three stand out:
FAR Part 15: Redefines government-offeror exchanges during source selection, clarifies terminology, and modernizes processes to address long-term pain points for both government and industry.
FAR Part 16: Expands the acquisition workforce’s ability to use innovative contract types, simplifies fair opportunity ordering under multiple award contracts, and permits establishment of BPAs under multiple award contracts.
FAR Part 19: Streamlines small business regulations, making rules clearer and more intuitive. It maintains the requirement to set-aside contracts (“rule of two”) above the MPT, reaffirms contracting officer discretion on set-aside decisions for orders under multiple award contracts, and prioritizes competitive 8(a) awards. Read more here!
Practitioner Albums Available Now
To help the workforce understand and apply these changes, FAI has released a growing collection of FAR Practitioner Albums:
By exploring the albums—especially those tied to the latest model deviations (Parts 15, 16, and 19)—you’ll gain actionable takeaways to reduce administrative burden, improve compliance, and strengthen mission delivery.
Earn CLPs in Three Steps
- Open any Practitioner Album or visit the Revolutionary FAR Overhaul Playlist.
- Explore the content and complete the short attestation.
- See your CLP credit instantly added to your CSOD transcript.
Stay Connected
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FAR Forward Office Hours Continue in Fiscal Year 2026
The FAR Forward Office Hours return this fall with three new sessions on the Revolutionary FAR Overhaul (RFO). Over the summer, hundreds of acquisition professionals joined and reported gaining new tools and concepts, taking away lessons they could apply immediately, and valuing the peer-to-peer Q&A format.
Upcoming Sessions (all 1–2 p.m. ET):
- Oct. 20, 2025
- Nov. 17, 2025
- Dec. 15, 2025
(One CLP per session, .gov/.mil email required)
Don’t miss out—your peers are already benefiting. If you’ve attended before, invite a colleague to join you. If you haven’t, now is the perfect time to take part in the conversations shaping the future of federal acquisition.
Register here!
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