How Should Small Businesses Prepare for FAR Dollar Threshold Adjustments?

According to FAR 1.109, the FAR Council must periodically adjust statutory acquisition-related dollar thresholds for inflation every five years using CPI-U, and that adjustment supersedes any other law that provides for threshold inflation updates. The Acquisition.gov threshold table effective October 1, 2025 shows changes that can affect small businesses, including the micro-purchase threshold, simplified acquisition threshold, subcontract reporting thresholds, subcontracting plan thresholds, cost or pricing data thresholds, and several competition and justification thresholds. Small businesses should map active bids, contracts, and subcontracts to those thresholds, then update proposal templates, pricing reviews, compliance checklists, and reporting calendars before the effective date. FAR 1.109 also states that an adjusted threshold applies to contracts and subcontracts without regard to award date, so a change can affect performance after award and continue for the remaining term unless another adjustment occurs. The practical response is to treat this as a procurement compliance update, not as a benefits COLA change.