The micropurchase threshold for procurement under the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (or uniform guidance) increased from $3,500 to $10,000 for fiscal year 2017 under Section 217(b) of the National Defense Authorization Act (NDAA).

The raised threshold applies only to the following organizations:

• Institutions of higher education, as defined in Section 101(a) of the Higher Education Act of 1965
• Not-for-profit entities related to or affiliated with institutions of higher education
• Not-for-profit research organizations
• Independent research institutes

This is welcome news to the many higher education institutions and not-for-profit research organizations that considered the threshold—last adjusted to $3,500 in 2015—too low. Our Insight provides more details.

For these organizations, the increased micropurchase threshold should reduce administrative burden. This is especially timely as many organizations are currently updating their procurement policies to reflect procurement standards in accordance with the uniform guidance. For entities not included in the list above, the micropurchase threshold is expected to remain at the current amount of $3,500, unless revised further by the regulatory process.

The Office of Management and Budget will need to determine how this change affects the uniform guidance but has yet to provide a timeline for any update or clarification it may include in the uniform guidance.

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For questions regarding how the micropurchase threshold increasing to $10,000 for fiscal year 2017 might affect your organization, contact your Moss Adams professional.