Effective October 1, 2025, the Federal Acquisition Regulation (FAR) thresholds are getting their first major inflation adjustment in years—bringing big changes for contracting officers, small businesses, and government suppliers like Aldevra.
The Federal Acquisition Regulatory Council has finalized a rule that raises key dollar thresholds across the FAR, impacting everything from micro-purchases to cost and pricing data requirements. Here’s what you need to know.
Key Changes Coming in October 2025
1. Micro-Purchase Threshold (MPT)
• Old: $10,000
• New: $15,000
• Contingency operations: $20K → $25K (U.S.), $35K → $40K (Overseas)
Why it matters: More transactions can be purchased without competition or simplified procedures, creating faster opportunities for small businesses.
2. Simplified Acquisition Threshold (SAT)
• Old: $250,000
• New: $350,000
• Contingency operations: $800K → $1M (U.S.), $1.5M → $2M (Overseas)
• Humanitarian/peacekeeping (Overseas): $500K → $650K
Why it matters: More procurements qualify for streamlined methods—less paperwork, faster awards.
3. Other Notable Increases
• Commercial item test program ceiling: $7.5M → $9M
• Sole-source 8(a) justification: $25M → $30M
• Cost or pricing data threshold: $2M → $2.5M
• Subcontracting plan thresholds: $750K → $900K (supplies/services), $1.5M → $2M (construction)
What This Means for You
For small businesses like Aldevra, these increases create more room to compete quickly under less restrictive rules. For agencies, it means fewer administrative hurdles when buying mission-critical goods and services.
For example:
• A kitchen equipment buy that used to require a full solicitation at $275K? Starting October 1, it can use simplified acquisition procedures.
• More buys fall under the micro-purchase limit, which can be paid by purchase card—ideal for speed and convenience.
Stay Ready
Government buyers will start planning for FY 2026 with these new thresholds in mind. If you sell to the federal government, now is the time to update your pricing strategies, contracting vehicles, and marketing outreach.
At Aldevra, we’re already preparing our GSA MAS offerings, OASIS+ opportunities, and foodservice equipment solutions to align with these changes.
Need help navigating these updates?
Aldevra is a Service-Disabled Veteran-Owned Small Business (SDVOSB) and SBA 8(a) firm with 16+ years of experience in federal procurement. Whether it’s commercial kitchen equipment, installation services, or professional staffing, we know how to help agencies meet mission needs efficiently and compliantly.
📅 Effective Date: October 1, 2025
📄 Source: Federal Register Notice (2025-16412)
