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Federal Acquisition Regulation (FAR) Case 2014-022, IAE, and You

Effective October 1, 2015, FAR Case 2014-022 will implement the inflation adjustment of acquisition-related dollar thresholds. This adjustment will impact four IAE systems.

Effective October 1, 2015, the Department of Defense (DOD), General Services Administration (GSA), and National Aeronautics Administration (NASA) are issuing FAR Case 2014-022 as a final rule amending the Federal Acquisition Regulation (FAR) to implement the inflation adjustment of acquisition-related dollar thresholds. 

This amendment is taking place because a statute requires an adjustment every five years of acquisition-related thresholds for inflation using the Consumer Price Index (CPI) for all urban consumers, with the following exceptions:

●     Construction Wage Rate Requirements statute (formerly Davis-Bacon Act)

●     Service Contract Labor Standards statute

●     Trade agreements thresholds

DoD, GSA, and NASA also have used the same methodology to adjust nonstatutory FAR acquisition-related thresholds.

This amendment will have an impact on the following Integrated Award Environment (IAE) systems:

●     System for Award Management (SAM)

●     Federal Procurement Data System - Next Generation (FPDS-NG)

●     Electronic Subcontracting Reporting System (eSRS)

●     FFATA Subaward Reporting System (FSRS)

FAR Case 2014-022 Impact to Thresholds

The following table shows the new thresholds due to the release of FAR Case 2014-022:

Threshold Title FAR Authority Current Threshold

October 1, 2015 FY 2016 Threshold

Micro-purchase FAR 2.101 $3,000.00 $3,500.00
Simplified Acquisition  FAR 2.101 $150,000.00 No change
FBO pre award notice FAR 5.2 $25,000.00 No change
FBO post award notice FAR 5.3 $25,000.00 No change
Simplified Acquisition Procedures for Commercial test item program FAR 13.500

$150,000.01 up to $12,000,000.00

$150,000.01 up to $13,000,000.00

Cost and pricing data FAR 15.403-4 $700,000.00 $750,000.00

Subcontracting
-products & services

FAR 19.702 $650,000.00 $700,000.00
Subcontracting- construction FAR 19.702 $1.500,000.00 No change
1st Sub contract reporting including Executive Compensation FAR 4.14 $25,000.00 $30,000.00
Davis Bacon FAR 22 $2,000.00 No change
Service Contract Act FAR 22 $2,500.00 No change
Trade agreements FAR 25.4 Various thresholds No change
Executive Compensation FAR 4.14 $25,000.00 $30,000.00

Other IAE System Impacts

FAR Case 2014-022 also impacts IAE two other ways:

●     Update to SAM for FAR Clause 52.209-5 Certification Reporting Responsibility Matters. The dollar threshold for attesting to whether or not entity has been notified of tax delinquency increases to $3,500.00

●     Update to SAM for FAR Clause 52.212-3 Offeror Representations and Certifications- Commercial Items. The    dollar threshold for attesting to whether or not entity has been notified of tax delinquency increases to $3,500.00

For Further Information

Please consult the Federal Service Desk (FSD) for further information about the IAE system changes due to FAR Case 2014-022.

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