---
kind: "section"
citation: "48 C.F.R. § 1.109"
title: "48"
number: "1.109"
heading: "Statutory acquisition-related dollar thresholds—adjustment for inflation."
url: "https://uscodex.org/cfr/48/1.109"
---

# §1.109. Statutory acquisition-related dollar thresholds—adjustment for inflation.

- (a) [41 U.S.C. 1908](/usc/41/1908.md) requires that the FAR Council periodically adjust all statutory acquisition-related dollar thresholds in the FAR for inflation, except as provided in [paragraph (c)](#c) of this section. This adjustment is calculated every 5 years, starting in October 2005, using the Consumer Price Index for All Urban Consumers (CPI-U), and supersedes the applicability of any other provision of law that provides for the adjustment of such acquisition-related dollar thresholds.
- (b) The statute defines an acquisition-related dollar threshold as a dollar threshold that is specified in law as a factor in defining the scope of the applicability of a policy, procedure, requirement, or restriction provided in that law to the procurement of supplies or services by an executive agency, as determined by the FAR Council.
- (c) **The statute does not permit escalation of acquisition-related dollar thresholds established by—**
  - (1) 40 U.S.C. chapter 31—
    - (i) Subchapter III, Bonds; and
    - (ii) Subchapter IV, Wage Rate Requirements (Construction);
  - (2) 41 U.S.C. chapter 67, Service Contract Labor Standards; or
  - (3) The United States Trade Representative pursuant to the authority of the Trade Agreements Act of 1979 ([19 U.S.C. 2511](/usc/19/2511.md) et seq.).
- (d) The statute, as amended by section 821 of the National Defense Authorization Act for Fiscal Year 2018 (Pub. L. 115-91), requires the adjustment described in [paragraph (a)](#a) of this section be applied to contracts and subcontracts without regard to the date of award of the contract or subcontract. Therefore, if a threshold is adjusted for inflation as set forth in [paragraph (a)](#a) of this section, then the changed threshold applies throughout the remaining term of the contract, unless there is a subsequent threshold adjustment.
- (e) A matrix showing calculation of the most recent escalation adjustments of statutory acquisition-related dollar thresholds is available via the Internet at http://www.regulations.gov (search FAR case 2024-001, open the docket folder, and go to the supporting documents file).

## Notes

### Amendments

[71 FR 57365, Sept. 28, 2006, as amended at 75 FR 53131, Aug. 30, 2010; 79 FR 24194, Apr. 29, 2014; 80 FR 38295, July 2, 2015; 85 FR 27089, May 6, 2020; 85 FR 62487, Oct. 2, 2020; 88 FR 25477, Apr. 26, 2023; 90 FR 41875, Aug. 27, 2025]

### Authority

Authority: 41 U.S.C. 1121(b); 40 U.S.C. 121(c); 10 U.S.C. chapter 4 and 10 U.S.C. chapter 137 legacy provisions (see 10 U.S.C. 3016); and 51 U.S.C. 20113.

### Source

Source: 48 FR 42103, Sept. 19, 1983, unless otherwise noted.

### Amendments

[71 FR 57365, Sept. 28, 2006, as amended at 75 FR 53131, Aug. 30, 2010; 79 FR 24194, Apr. 29, 2014; 80 FR 38295, July 2, 2015; 85 FR 27089, May 6, 2020; 85 FR 62487, Oct. 2, 2020; 88 FR 25477, Apr. 26, 2023; 90 FR 41875, Aug. 27, 2025]