The dollar lines that organize federal procurement moved twice in the past year — once on October 1, 2025, when the statutory inflation adjustment reset nearly every acquisition threshold in the FAR, and again on December 18, 2025, when the FY2026 NDAA rewrote two of the biggest ones outright. One of those changes lands on June 30, 2026, and it is large enough to change how mid-sized contractors price their next proposal. Here is the full map of where the numbers stand today, what is statute versus still-pending rulemaking, and which dates to circle.
The October 2025 Reset
Every five years, acquisition thresholds are adjusted for inflation under 41 U.S.C. 1908. The October 1, 2025 adjustment, implemented through FAR Case 2024-001, was the steepest in memory because it captured the 2021–2024 inflation run-up. The headline moves:
| Threshold | Old | New (Oct 1, 2025) |
|---|---|---|
| Micro-purchase threshold (MPT) | $10,000 | $15,000 |
| Simplified acquisition threshold (SAT) | $250,000 | $350,000 |
| Certified cost or pricing data (TINA) | $2,000,000 | $2,500,000 |
| Commercial simplified procedures ceiling (FAR 13.5) | $7,500,000 | $9,000,000 |
| 8(a) sole-source cap (manufacturing) | $7,000,000 | $8,500,000 |
| 8(a) sole-source cap (all other NAICS) | $4,500,000 | $5,500,000 |
| 8(a) competitive threshold | $25,000,000 | $30,000,000 |
The contingency-operation variants moved in step: for acquisitions supporting a contingency operation or defense against attack, the MPT is now $25,000 when the contract is awarded and performed inside the United States and $40,000 outside it, while the corresponding SAT rose to $1 million inside the United States and $2 million outside. The humanitarian and peacekeeping SAT is $650,000.
Small-Business Sole-Source Ceilings
The socioeconomic sole-source caps all rose together, which matters for anyone structuring a pipeline around direct awards. SDVOSB sole-source awards now run to $8.5 million in manufacturing NAICS codes and $5 million in everything else, per the current text of FAR 19.1406. WOSB, EDWOSB, and HUBZone sole-source caps run slightly higher on the non-manufacturing side: $8.5 million for manufacturing, $5.5 million for other codes. The 8(a) program keeps its higher manufacturing cap of $8.5 million and a $5.5 million cap elsewhere, with the competition limitation threshold — the line above which a sole-source 8(a) award requires a written justification — now at $30 million.
The June 30 Cliff: TINA Goes to $10 Million
The inflation adjustment was the small move. Section 1804(c) of the FY2026 NDAA raises the TINA threshold in 10 U.S.C. 3702 — the line above which contractors must submit certified cost or pricing data — from $2.5 million to $10 million for contracts entered into after June 30, 2026. Contracts signed on or before that date stay under the $2.5 million standard. One scope note matters enormously: the amendment touches only Title 10, which governs DoD, NASA, and Coast Guard acquisitions. The parallel civilian-agency statute, 41 U.S.C. 3502, was not amended, so civilian awards remain at $2.5 million unless and until the FAR Council harmonizes.
The practical effect is hard to overstate. Certified cost or pricing data is the trigger for defective-pricing liability, for most of the cost-buildup audit apparatus, and for a large share of the compliance overhead that makes companies hesitate to take negotiated, non-commercial work. A $10 million floor takes the entire band of awards between $2.5 million and $10 million — a band where a great deal of small and mid-tier contracting lives — out of the certified-data regime. For competitive awards in that band after June 30, contracting officers will rely on data other than certified cost or pricing data to establish price reasonableness.
CAS: The Bigger Rewrite Is Still Pending
The Cost Accounting Standards thresholds are mid-flight, and the distinction between statute and rulemaking matters here. The CAS applicability threshold has historically tracked TINA, so it stood at $2.5 million after the October adjustment. Section 1806 of the FY2026 NDAA decouples and raises it to $35 million, and lifts the full-CAS-coverage threshold from $50 million to $100 million, with implementation required within 180 days of enactment.
The CAS Board published its proposed rule on March 20, 2026: a $35 million basic threshold, elimination of the $7.5 million trigger-contract concept, and agency-head waiver authority raised to $100 million. Comments closed April 20. As of this writing the rule is not final — so contractors should treat $35 million as where CAS is going, not yet where it is. Until the final rule lands, the operative applicability number remains the lower one, and disclosure-statement planning should be done with both regimes in mind.
Where the FAR Overhaul Fits
None of these increases came from the Revolutionary FAR Overhaul, the administration’s project to strip the FAR back to its statutory core. The overhaul is still operating through class deviations: agencies adopted model deviation texts for the rewritten FAR parts beginning in mid-2025, and those texts were conformed to carry the new October 2025 thresholds. The twelve overhaul final rules were still sitting at OMB as of April 2026 with no confirmed publication timeline. The only codified Federal Acquisition Circular since the threshold reset is FAC 2026-01, effective March 13, 2026, a single rule updating Trade Agreements thresholds. Translation: the deviation texts, not the printed FAR, are the operative documents at most agencies right now, and they carry the numbers above.
What It Means for Contractors
Keep this page bookmarked — we will update it as the CAS final rule and the stalled overhaul FACs publish. Three planning points fall out of the 2026 numbers. First, the $350,000 SAT materially widens the set-aside-by-default zone — acquisitions between the MPT and the SAT are reserved for small businesses absent an exception, and that band just got 40 percent wider. Second, for defense work, timing negotiated awards around June 30 has real money attached: a $6 million DoD negotiated contract signed July 1 carries no TINA certification, while the same deal signed June 28 does. Expect some agencies and primes to let award dates drift accordingly. Third, if your accounting system roadmap was driven by an approaching CAS trigger, re-baseline it against the $35 million proposal before spending another compliance dollar — but do not book the savings until the CAS Board issues its final rule. Thresholds are the quiet architecture of this market; this year they moved more than they have in a generation.
Sources
- Threshold Changes Effective October 1, 2025 — Acquisition.gov
- FAR 19.1406, Sole-Source Awards to SDVOSB Concerns — Acquisition.gov
- CAS Board Proposed Rule: Increase of Monetary Thresholds — Federal Register, March 20, 2026
- FY26 NDAA Raises CAS and TINA Thresholds — Covington, Inside Government Contracts
- FAR Overhaul Final Rules Stall at OMB — Washington Technology
