On October 4, 2016, the GSA issued a final rule (81 Fed. Reg. 68,335) amending the General Services Acquisition Regulation (GSAR) to align acquisition-related thresholds with the FAR. In particular, the rule makes three primary changes to align acquisition-related thresholds with the FAR:
- FAR 52.203.14 is a contract clause dealing with the display of fraud hotline posters that contractors must display in common work areas on jobsites when certain threshold requirements are met. Before this final rule, FAR 52.203.14 had to be inserted in contracts where the value exceeded $5 million. This rule has removed that threshold by amending GSAR 503.1004(a). The reference to the $1 million threshold remains in place, however, for disaster assistance funds contracts.
- GSAR clauses 552.219-71, Notice to Offerors of Subcontracting Plan Requirements, and 552.219-72, Preparation, Submission and Negotiation of Subcontracting Plans, have been updated to remove reference to the acquisition threshold of $650,000, and the language has also been restructured to no longer state the threshold; rather, the reader is directed to FAR 52.219-9 (Small Business Subcontracting Plan), which clearly addresses the threshold for subcontracting plans. The threshold is $700,000, but $1.5 million for construction contracts for a public facility.
- Finally, GSAR clause 552.270-13, Proposal for Adjustment, has been updated to include the new minimum amount of $750,000. With this change, whenever a proposal for adjustment exceeds $750,000, the lessor must provide cost or pricing data. GSAR clause 552.270-13, as prescribed by 48 C.F.R. 570.703, must be inserted in solicitations and contracts for leasehold interests that exceed the simplified lease acquisition threshold. Furthermore, the party (contractor or subcontractor) whose portion of the work exceeds $750,000 must sign and return the “Certificate of Current Cost or Pricing Data.”
The final rule became effective October 4, 2016.