Insight by: Stephen “Chase” Kunk, Partner
March 20, 2020
An emergency determination was made by the President on March 13, 2020, under the authority of the “Stafford Act” (Robert T. Stafford Disaster Relief and Emergency Assistance Act, 42 U.S.C. 5121-5207) in response to the COVID-19 pandemic. This determination authorizes federal assistance to supplement State and local response efforts and meets the definition of “emergency” at 42 U.S.C. 5122.
In light of this determination, the micro-purchase threshold (MPT) and simplified acquisition threshold (SAT) are increased under FAR 2.101 for contracting actions related to COVID-19 assistance activities, if the head of the contracting activity determines those actions to be in support of this declared emergency. As applicable, and detailed at FAR 2.101, the MPT can increase up to $30,000 and the SAT up to $1,500,000.
Capital Edge recommends contractors secure written concurrence from their cognizant contracting officers prior to utilizing the higher thresholds, if they anticipate procuring any goods or services in response to this emergency.
For more information on if and how this may affect you please connect with our Compliance expert: Stephen “Chase” Kunk