Be on the lookout for new inflation-adjusted acquisition thresholds will take effect on October 1, 2025. Federal contracts require compliance with Federal Acquisition Regulation (FAR) rules issued by the Federal Acquisition Regulatory (FAR) Council—including the subcontracting plan threshold. See the prime contractor subcontracting plan (FAR 19.702) threshold increase below. Please see the full updates and descriptions in the Federal Register.

For requestors/buyers/staff/faculty assisting Principal Investigators on these federal program plans that may need further assistance, please contact Marliz Copado. 

Prime Contractor Subcontracting Plan (FAR 19.702) Threshold Increase

The prime contractor subcontracting plan (FAR 19.702) threshold is increasing from $750,000 to $900,000, and the associated threshold for construction is increasing from $1.5 million to $2 million.