PF 2026-05 Federal Acquisition Circular (FAC) 2025-06 and Associated Changes to Revolutionary FAR Overhaul Model Deviation Texts

DATE: October 31, 2025

TO: HCAs/Procurement Directors/Contracting Officers

FROM: Director, Contract and Financial Assistance Policy Division, Office of Policy, Office of Acquisition Management

SUMMARY:  Attached is a brief summary of the Federal Acquisition Regulation (FAR) amendment, published in the August 27, 2025 issue of the Federal Register at 90 FR 41872. FAC 2025-06 issued one final rule – FAR Case 2024-001, Inflation Adjustment of Acquisition—Related Thresholds.

FAR Case 2024-001 adjusted many commonly used acquisition-related thresholds, including (but not limited to) the following:

• The micro-purchase threshold (MPT) increased from $10,000 to $15,000 (FAR 2.101)
• The simplified acquisition threshold (SAT) increased from $250,000 to $350,000
• The threshold for reporting first-tier subcontract information including executive compensation increased from $30,000 to $40,000 (FAR 4.1401)
• The threshold for requiring a separate justification or determination and findings when a contracting officer intends to award a sole-source contract to an eligible 8(a) participant increased from $25 million to $30 million (FAR 6.204(b))
• Approval thresholds of justifications for other than full and open competition (FAR 6.304) increased from $750,000 to $900,000 at paragraphs (a)(1) and (2); in paragraphs (a)(2) through (4), the figure of $15 million increased to $20 million, and $75 million increased to $90 million
• The ceiling for simplified procedures for certain commercial products and commercial services (FAR 13.500(a)) increased from $7.5 million to $9 million
• The cost or pricing data threshold at FAR 15.403-4, for contracts awarded before July 1, 2018, increased from $750,000 to $950,000; for contracts issued on or after July 1, 2018, the threshold increased from $2 million to $2.5 million
• The prime contractor subcontracting plan (FAR 19.702) threshold increased from $750,000 to $900,000, and the associated threshold for construction increased from $1.5 million to $2 million

Many of these threshold changes impact class deviations to the FAR resulting from the Revolutionary FAR Overhaul (RFO) that have been issued by DOE and NNSA. Attached is a list of Policy Flashes that transmitted RFO class deviations, and the associated FAR Parts and Sections impacted by the threshold changes. The impacted model deviation text issued via class deviations have been updated to include the revised thresholds and the Policy Flashes that transmitted the impacted model deviation texts have been updated with a note indicating that the model deviation text attached to the class deviation has been updated to implement FAR Case 2024-001, Inflation Adjustment of Acquisition—Related Thresholds. In addition, impacted provisions and clauses have also been updated in STRIPES.

Questions concerning this policy flash should be directed to the Contract and Financial Assistance Policy Division at DOE_oapmpolicy@hq.doe.gov. 

For NNSA questions concerning this policy flash, please contact Acquisition Policy and Oversight Division, Policy & Oversight Branch (NA-PAS-111), at (505) 845-5639.