Guidance and Support for Government Contractors

By: s.m.amend | September 12, 2017

Did you know that over the summer there was a class deviation to the definition of the micro-purchase threshold?  Most people didn't! Unless you are keen on reading FAR Part 2 daily, you may have missed this deviation.


Class Deviation- 2017-O0007, Increased Micro-Purchase Threshold. This clause deviation is effective on Sept 01, 2017, and remains in effect until incorporated into the DFARS, or until otherwise rescinded.

“Micro-purchase threshold,” means $5,000 (10 U.S.C. 2338), except it means-

    (1) For DoD acquisition of supplies or services for basic research programs and for activities of the DoD science and technology reinvention laboratories, $10,000 (10 U.S.C. 2339);

    (4) For acquisitions of supplies or services that, as determined by the head of the agency, are to be used to support a contingency operation or to facilitate defense against or recovery from cyber, nuclear, biological, chemical or radiological attack; international disaster assistance (22 U.S.C. 2292 et seq.); an emergency, or major disaster (42 U.S.C. 5122), as described in 13.201(g)(1), except for construction subject to 40 U.S.C. chapter 31, subchapter IV, Wage Rate Requirements (Construction) (41 U.S.C. 1903)-


What does this mean for a contractor? Well, if your purchasing policy is written with the FAR/DFARS in mind, it may be time to give your policy an update. It can be helpful to have a procurement fall below the  micro-purchase limit. With a higher threshold now,  this could mean less work for your procurement folks.

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