PRIA Logo™
Take the PRIA Score
Title 41 — Public ContractsRelease 119-73

§1908 Inflation adjustment of acquisition-related dollar thresholds

Title 41 › Subtitle Subtitle I— - Federal Procurement Policy › Chapter CHAPTER 19— - SIMPLIFIED ACQUISITION PROCEDURES › § 1908

Last updated Apr 6, 2026|Official source

Summary

The Council must update certain dollar limits used in federal buying rules every five years. The updates apply to money amounts that a law uses to decide which buying rules, procedures, or restrictions apply to an executive agency’s purchase of goods or services. The rule does not apply to dollar limits in chapters 67 and 83 of this title, to sections 3141–3144, 3146, and 3147 of title 40, to limits set by the United States Trade Representative under the Trade Agreements Act of 1979, or to sections 3131–3134 of title 40 (except that any regulatory changes to those last limits in effect when this exception was made stay in effect). When a threshold was first set on or before October 1, 2000, its baseline is the October 1, 2000 constant dollar value; if it was first set after October 1, 2000, its baseline is the constant dollar value on the law’s effective date. The Council must publish the adjusted numbers in the Federal Register, and the new numbers take effect the day they are published. The new numbers apply to any contract and any subcontract under it that are in effect on the publication date, no matter when they were awarded. Council — the body described in section 1301. Adjustments use the Consumer Price Index for All Urban Consumers from the Secretary of Labor. After calculating the adjusted amount, the Council must round it as follows: under $10,000 to the nearest $500; $10,000–$99,999 to the nearest $5,000; $100,000–$999,999 to the nearest $50,000; $1,000,000–$9,999,999 to the nearest $500,000; $10,000,000–$99,999,999 to the nearest $5,000,000; $100,000,000–$999,999,999 to the nearest $50,000,000; $1,000,000,000 or more to the nearest $500,000,000. Anyone can ask for a missing threshold to be adjusted by sending a petition to the Administrator. The Administrator must say in writing if the threshold must be adjusted, and if so will publish a revised notice in the Federal Register. Any such adjustment takes effect on the date that revised notice is published.

Full Legal Text

Title 41, §1908

Public Contracts — Source: USLM XML via OLRC

(a)In this section, the term “Council” has the meaning given that term in section 1301 of this title.
(b)(1)Except as provided in paragraph (2), the requirement for adjustment under subsection (c) applies to 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 property or services by an executive agency, as the Council determines.
(2)Subsection (c) does not apply to dollar thresholds—
(A)in chapters 67 and 83 of this title;
(B)in sections 3141 to 3144, 3146, and 3147 of title 40;
(C)the United States Trade Representative establishes pursuant to title III of the Trade Agreements Act of 1979 (19 U.S.C. 2511 et seq.); or
(D)in sections 3131 through 3134 of title 40, except any modification of any such dollar threshold made by regulation in effect on the date of the enactment of this subparagraph shall remain in effect.
(3)This section supersedes the applicability of other provisions of law that provide for the adjustment of a dollar threshold that is adjustable under this section.
(c)(1)For purposes of paragraph (2), the baseline constant dollar value for a dollar threshold—
(A)in effect on October 1, 2000, that was first specified in a law that took effect on or before October 1, 2000, is the October 1, 2000, constant dollar value of that dollar threshold; and
(B)specified in a law that takes effect after October 1, 2000, is the constant dollar value of that threshold as of the effective date of that dollar threshold pursuant to that law.
(2)On October 1 of each year evenly divisible by 5, the Council shall adjust each acquisition-related dollar threshold provided by law, as described in subsection (b)(1), to the baseline constant dollar value of that threshold.
(3)A dollar threshold adjustable under this section shall be adjusted only as provided in this section.
(d)The Council shall publish a notice of the adjusted dollar thresholds under this section in the Federal Register. The thresholds take effect on the date of publication and shall apply, in the case of the procurement of property or services by contract, to a contract, and any subcontract at any tier under the contract, in effect on that date without regard to the date of award of the contract or subcontract.
(e)An adjustment under this section shall be—
(1)calculated on the basis of changes in the Consumer Price Index for all-urban consumers published monthly by the Secretary of Labor; and
(2)rounded, in the case of a dollar threshold that as calculated under paragraph (1) is—
(A)less than $10,000, to the nearest $500;
(B)not less than $10,000, but less than $100,000, to the nearest $5,000;
(C)not less than $100,000, but less than $1,000,000, to the nearest $50,000;
(D)not less than $1,000,000, but less than $10,000,000, to the nearest $500,000;
(E)not less than $10,000,000, but less than $100,000,000, to the nearest $5,000,000;
(F)not less than $100,000,000, but less than $1,000,000,000, to the nearest $50,000,000; and
(G)$1,000,000,000 or more, to the nearest $500,000,000.
(f)(1)A person may request adjustment of a dollar threshold adjustable under this section that is not included in a notice of adjustment published under subsection (d) by submitting a petition for adjustment to the Administrator.
(2)On receipt of a petition for adjustment of a dollar threshold under paragraph (1), the Administrator—
(A)shall determine, in writing, whether the dollar threshold is required to be adjusted under this section; and
(B)on determining that it should be adjusted, shall publish in the Federal Register a revised notice of the adjustment dollar thresholds under this section that includes the adjustment of the dollar threshold covered by the petition.
(3)The adjustment of a dollar threshold pursuant to a petition under this subsection takes effect on the date the revised notice adding the adjustment under paragraph (2)(B) is published.

Legislative History

Notes & Related Subsidiaries

Historical and Revision Notes

Revised SectionSource (U.S. Code)Source (Statutes at Large) 1908(a)no source. 1908(b)(1)41:431a(c).Pub. L. 93–400, § 35A, as added Pub. L. 108–375, title VIII, § 807(a)(1), Oct. 28, 2004, 118 Stat. 2010. 1908(b)(2)41:431a(d). 1908(b)(3)41:431a note.Pub. L. 108–375, title VIII, § 807(c)(1), Oct. 28, 2004, 118 Stat. 2011. 1908(c)(1), (2)41:431a(a). 1908(c)(3)41:431a note.Pub. L. 108–375, title VIII, § 807(c)(2), Oct. 28, 2004, 118 Stat. 2011. 1908(d)41:431a(b). 1908(e)41:431a(e). 1908(f)41:431a(f). In subsection (c)(3), the words “After the date of the enactment of this Act” are omitted as obsolete. In subsection (e)(1), the words “Secretary of Labor” are substituted for “Department of Labor” because of 29:551.

Editorial Notes

References in Text

The Trade Agreements Act of 1979, referred to in subsec. (b)(2)(C), is Pub. L. 96–39, July 26, 1979, 93 Stat. 144. Title III of the Act is classified generally to subchapter I (§ 2511 et seq.) of chapter 13 of Title 19, Customs Duties. For complete classification of this Act to the Code, see

References in Text

note set out under section 2501 of Title 19 and Tables. The date of the enactment of this subparagraph, referred to in subsec. (b)(2)(D), is the date of enactment of Pub. L. 117–81, which was approved Dec. 27, 2021.

Amendments

2021—Subsec. (b)(2)(A). Pub. L. 117–58 substituted “chapters 67 and 83” for “chapter 67”. Subsec. (b)(2)(D). Pub. L. 117–81, § 861(a), added subpar. (D). Subsec. (d). Pub. L. 117–81, § 861(b), struck out second period at end. 2017—Subsec. (d). Pub. L. 115–91 inserted before period at end “and shall apply, in the case of the procurement of property or services by contract, to a contract, and any subcontract at any tier under the contract, in effect on that date without regard to the date of award of the contract or subcontract.” 2015—Subsec. (e)(2). Pub. L. 114–92, § 817(1), substituted “as calculated under paragraph (1)” for “on the day before the adjustment” in introductory provisions. Subsec. (e)(2)(D) to (G). Pub. L. 114–92, § 817(2), (3), added subpars. (D) to (G) and struck out former subpar. (D) which read as follows: “$1,000,000 or more, to the nearest $500,000.”

Statutory Notes and Related Subsidiaries

Adjustment for Inflation of Right-Hand Drive Passenger Sedans Pub. L. 112–81, div. A, title VIII, § 814(b), Dec. 31, 2011, 125 Stat. 1491, provided that: “The Department of Defense representative to the Federal Acquisition Regulatory Council established under section 1302 of title 41, United States Code, shall ensure that the threshold established in section 2253 of title 10, United States Code, for the acquisition of right-hand drive passenger sedans is included on the list of dollar thresholds that are subject to adjustment for inflation in accordance with the requirements of section 1908 of title 41, United States Code, and is adjusted pursuant to such provision, as appropriate.”

Reference

Citations & Metadata

Citation

41 U.S.C. § 1908

Title 41 — Public Contracts

Last Updated

Apr 6, 2026

Release point: 119-73