$500,000 Threshold for Civilian Cost and Pricing


Contributed by: National Performance Review
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Maintain the $500,000 threshold for cost and pricing data requirements
for DOD.

The Federal Property and Administrative Services Act should be amended
to make it conform to the Truth in Negotiations Act requirements to all
federal agencies.11 The increase in the threshold, and periodic
adjustment of the threshold to account for inflation, should increase
the efficiency and effectiveness of civilian agency acquisitions and
result in better service to the federal manager. Civilian agencies would
be able to reduce procurement lead time by 45 to 60 days for
procurements between $100,000 and $500,000. The paperwork and
administrative burden placed on contractors when submitting offers to
the civilian agencies for certain negotiated contracts between $100,000
and $500,000 should be reduced. The administrative cost of awarding
negotiated contracts for civilian agencies would decrease as a result of
the threshold increase.

Endnote

11. 41 U.S.C. 254(d), and 10 U.S.C. 2306a.

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