Inflation Update to FAR Thresholds: What You Need to Know (and How SpendLogic Handles It)

The FAR Council—comprising OFPP, DoD, GSA, and NASA—has issued a final rule adjusting acquisition-related thresholds for inflation, effective October 1, 2025. This is the result of a statutory requirement under 41 U.S.C. 1908 to recalibrate these thresholds every five years using the Consumer Price Index for all urban consumers.  If you’d like to access the source document on the Federal Register, you can find it here.

Key threshold changes include:

  • Micro-Purchase Threshold (MPT) increases from $10,000 to $15,000; contingency and defense-related tiers climb from $20,000 → $25,000 and $35,000 → $40,000.
  • Simplified Acquisition Threshold (SAT) rises from $250,000 to $350,000.
  • Subcontracting-plan thresholds are adjusted upward: prime-level threshold from $750,000 to $900,000, and construction-related from $1.5 million to $2 million.

 

These changes aim to preserve purchasing power and streamline procurement by ensuring thresholds reflect current economic realities rather than outdated figures.

What This Means for SpendLogic Clients

Good news—SpendLogic takes care of it for you:

  • All affected thresholds—MPT, SAT, subcontracting-plan thresholds, and their defense/contingency variants—will be automatically updated in the SpendLogic system effective October 1, 2025.
  • Our team handles the updates behind the scenes, so you can continue working
    with confidence, knowing your procurement tools reflect the latest regulatory thresholds.
  • No manual adjustments required on your part—we’ve got you covered.


Bottom line: The FAR has raised key acquisition thresholds for inflation, effective October 1. As a SpendLogic client, you don’t need to lift a finger—our team will ensure your system is up to date with every threshold change, as they’re required.  

Have you had a chance to see how SpendLogic can streamline your procurement documentation and eliminate headaches like threshold adjustments, gathering CPSR universe documents, and processing compliance workflows without relying on email?  Book a fifteen minute demo here today!