DoD Issues Class Deviations on SAT, MPT, TINA and CAS Thresholds

On April 13, 2018, the Director of Defense Pricing/Defense Procurement and Acquisition Policy (DPAP) issued two class deviations – Class Deviation 2018-O0012 related to the threshold for obtaining certified cost or pricing data (CCOPD) (the CCOPD Deviation) and Class Deviation 2018-O0013 addressing the Simplified Acquisition Threshold (SAT), Micro-Purchase Threshold (MPT), and Special Emergency Procurement Authority (the SAT/MPT Deviation) (which supersedes and rescinds Class Deviations 2017-O0007 and 2018-O0001). 

In particular, and effective July 1, 2018, the CCOPD Deviation directs contracting officers to “use $2 million as the threshold for obtaining [CCOPD],” thereby implementing Section 811 of the FY 2018 National Defense Authorization Act (NDAA). This deviation also recognizes that the CCOPD threshold and “the threshold for the applicability of the cost accounting standards [(“CAS”)]” are linked to and, thus, also increases the CAS threshold to $2 million effective July 1, 2018, through the use of the clauses provided by the deviation. 

The SAT/MPT Deviation, on the other hand, is effective immediately and:

• Increases the SAT for most DoD procurements to $250,000, thereby implementing Section 805 of the FY 2018 NDAA (the SAT is higher for certain types of procurements, e.g. contingency operations).
• Reiterates that the MPT for most DoD procurements has increased to $5,000 and provides the exceptions where the MPT is higher.
• Implements/continues to implement other sections in the FY 2017 and FY 2018 NDAAs by, for example, authorizing “supplies or services that are to be used to facilitate recovery from a cyber-attack be treated as commercial items” and changing “the thresholds for set-asides for small business in the Small Business Act from specified dollar amounts to the terms ‘micro-purchase threshold’ and ‘simplified acquisition threshold.’”