SpendQueryBeta

FAR and DFARS › FAR Part 1: Federal Acquisition Regulations System › Subpart 1.1

FAR 1.109 Statutory acquisition-related dollar thresholds—adjustment for inflation.

The codified text (eCFR, as of 2026-10-02). Under the Revolutionary FAR Overhaul ↗, agencies follow class deviations with new text for many parts while the formal rules go through the Federal Register: check the solicitation and your contract's clauses, which rule.

In plain English

This section explains that the FAR Council must periodically adjust statutory acquisition-related dollar thresholds for inflation, generally every 5 years using the CPI-U. It also lists certain thresholds that cannot be escalated and states that adjusted thresholds apply to contracts and subcontracts regardless of award date. This matters because a changed threshold can apply during the remaining term of an existing contract.

Applies to: Statutory acquisition-related dollar thresholds in the FAR

Key terms: acquisition-related dollar threshold · FAR Council · Consumer Price Index for All Urban Consumers (CPI-U) · statutory acquisition-related dollar thresholds · contracts and subcontracts

Written by AI from this section's text. A guide, not legal advice: the text below rules.

The text

(a) 41 U.S.C. 1908 requires that the FAR Council periodically adjust all statutory acquisition-related dollar thresholds in the FAR for inflation, except as provided in paragraph (c) of this section. This adjustment is calculated every 5 years, starting in October 2005, using the Consumer Price Index for All Urban Consumers (CPI-U), and supersedes the applicability of any other provision of law that provides for the adjustment of such acquisition-related dollar thresholds.

(b) The statute defines an acquisition-related dollar threshold as a dollar threshold that is specified in law as a factor in defining the scope of the applicability of a policy, procedure, requirement, or restriction provided in that law to the procurement of supplies or services by an executive agency, as determined by the FAR Council.

(c) The statute does not permit escalation of acquisition-related dollar thresholds established by:

(1) 40 U.S.C. chapter 31—

(i) Subchapter III, Bonds; and

(ii) Subchapter IV, Wage Rate Requirements (Construction);

(2) 41 U.S.C. chapter 67, Service Contract Labor Standards; or

(3) The United States Trade Representative pursuant to the authority of the Trade Agreements Act of 1979 (19 U.S.C. 2511 et seq.).

(d) The statute, as amended by section 821 of the National Defense Authorization Act for Fiscal Year 2018 (Pub. L. 115-91), requires the adjustment described in paragraph (a) of this section be applied to contracts and subcontracts without regard to the date of award of the contract or subcontract. Therefore, if a threshold is adjusted for inflation as set forth in paragraph (a) of this section, then the changed threshold applies throughout the remaining term of the contract, unless there is a subsequent threshold adjustment.

(e) A matrix showing calculation of the most recent escalation adjustments of statutory acquisition-related dollar thresholds is available via the Internet at http://www.regulations.gov (search FAR case 2024-001, open the docket folder, and go to the supporting documents file).

Sections that refer to it

  • 15.403-4 Requiring certified cost or pricing data (10 U.S.C. chapter 271 and 41 U.S.C. chapter 35).
  • 52.202-1 Definitions.
  • 52.214-28 Subcontractor Certified Cost or Pricing Data—Modifications—Sealed Bidding.
  • 52.215-12 Subcontractor Certified Cost or Pricing Data.
  • 52.215-13 Subcontractor Certified Cost or Pricing Data—Modifications.
  • 52.215-21 Requirements for Certified Cost or Pricing Data and Data Other Than Certified Cost or Pricing Data—Modifications.

← 1.108 FAR conventions. · 1.110 Positive law codification. →

Rule changes for FAR Part 1

Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.

FAR 1.109 Statutory acquisition-related dollar thresholds—adjustment for inflation · SpendQuery