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Acquisition thresholds for certain materials

Division A · Title VIII: Acquisition Policy, Acquisition Management, and Related Matters · Subtitle B: Amendments to General Contracting Authorities, Procedures, and Limitations

Plain-language summaryAI

The section sets minimum dollar amounts for certain defense material purchases, allowing small acquisitions below these thresholds to be exempt from some rules. It also prohibits splitting larger purchases into smaller ones to avoid these rules. Every five years, the Defense Secretary can adjust these dollar limits based on inflation and must announce any changes publicly.

AI-generated from this section’s text — a quick orientation, not a substitute for the full text below. Not legal advice.

Section Text · Sec. 827.
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(a) Strategic materials

Section 4863 of title 10, United States Code, is amended by amending subsection (f) to read as follows:

(f) Exception for small purchases

(1)

Subsection (a) does not apply to acquisitions in amounts not greater than $250,000.

(2)

A proposed acquisition of an item subject to subsection (a) in an amount greater than $250,000 may not be divided into several purchases or contracts for lesser amounts in order to meet the exception under paragraph (1).

(3)

On October 1 of each year that is evenly divisible by five, the Secretary of Defense may adjust the dollar threshold in this subsection based on changes in the Consumer Price Index. Any such adjustment shall take effect on the date on which the Secretary publishes notice of such adjustment in the Federal Register.

(b) Sensitive materials from non-allied foreign nations

(1) In general

Section 4872(c) of title 10, United States Code, as amended by section 1803 of this Act, is further amended—

(A)

by redesignating subparagraphs (A) and (B) as clauses (i) and (ii), respectively;

(B)

by redesignating paragraphs (1) through (4) as subparagraphs (A) through (D), respectively;

(C)

by inserting (1) before Subsection (a) ; and

(D)

by adding at the end the following new paragraph:

(2)
(A)

Subsection (a) does not apply to procurements in amounts not greater than $250,000.

(B)

A proposed procurement of a material or item subject to subsection (a) in an amount greater than $250,000 may not be divided into several purchases or contracts for lesser amounts in order to meet the exception under subsection (a).

(C)

On October 1 of each year that is evenly divisible by five, the Secretary of Defense may adjust the dollar threshold in this subsection based on changes in the Consumer Price Index. Any such adjustment shall take effect on the date on which the Secretary publishes notice of such adjustment in the Federal Register.

(2) Coordination of amendments

For purposes of applying amendments to section 4872 of title 10, United States Code, made by provisions of this Act other than this subsection, the amendments made by this subsection shall be treated as having been enacted immediately after any such amendments to such section 4872 by other provisions of this Act.

(c) Printed circuit boards

Section 4873 of title 10, United States Code, is amended—

(1)

by redesignating subsections (c) through (f) as subsections (d) through (g), respectively; and

(2)

by inserting after subsection (b) the following new subsection:

(c) Exception for small purchases

(1)

Subsection (a)(1) does not apply to acquisitions in amounts not greater than $10,000.

(2)

A proposed acquisition of an item subject to subsection (a)(1) in an amount greater than $10,000 may not be divided into several purchases or contracts for lesser amounts in order to meet the exception under paragraph (1).

(3)

On October 1 of each year that is evenly divisible by five, the Secretary of Defense may adjust the dollar threshold in this subsection based on changes in the Consumer Price Index. Any such adjustment shall take effect on the date on which the Secretary publishes notice of such adjustment in the Federal Register.