The Civilian Agency Acquisition Council and the Defense Acquisition Council (FAR Councils) increased the maximum purchase threshold for micro-purchases from $2,500 to $3,000. Section 807 of the Ronald Reagan National Defense Authorization Act of 2005 mandated this action directing that certain acquisition thresholds be adjusted in response to future inflation every five years. The micro-purchase threshold for construction contracts remains $2,000 because Congress did not alter the threshold for applicability of the Davis-Bacon Wage Act. The Davis-Bacon Act still applies to contracts over $2,000, so that remains the limit of the micro-purchase threshold for construction contracts. Because many service contracts are subject to the Service Contract Act which applies to certain service contracts exceeding $2,500, there is now a new, separate micro-purchase threshold of $2,500 for contracts subject to the Service Contract Act. Prior to adjusting the micro-purchase threshold up from $2,500 to $3,000, there was no need for a separate "service contracts micro-purchase threshold" because the old micro-purchase threshold of $2,500 was consistent with the Service Contract Act. The result of these threshold changes is that we now have three separate micro-purchase thresholds: $2,000 (construction); $2,500 (contracts subject to the Service Contract Act); and $3,000 for all other contracts, in addition to the adjustments for contingency operations. Congress did not change any of the micro-purchase contingency thresholds.
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