Under 41 U.S.C. § 1908, every five years, the Federal Acquisition Regulation (“FAR”) Council must adjust statutory acquisition-related thresholds for economic inflation. These statutory acquisition-related threshold shifts will materially affect government contract sourcing strategies, documentation requirements, and small business planning. These adjustments do not apply to the Davis-Bacon Act, Service Contract Labor Standards, or trade agreements thresholds. The FAR Council’s latest round of modifications for inflation was finalized on August 27, 2025, and became effective October 1, 2025. The final rule was published in the Federal Register as 90 FR 41872. Read more about some notable changes and what federal contractors should expect from them.