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FAR Threshold Updates: What Small Businesses Need to Know
Marissa Henkel, Procurement Counselor serving Knox, Kennebec, Lincoln, Sagadahoc, and Somerset Counties
Every five years, the Federal Acquisition Regulation (FAR) Council reviews and updates acquisition thresholds to account for inflation—and as of October 1, 2025, several key thresholds have increased. These changes are intended to simplify procurement processes and make it easier for agencies to buy what they need quickly, while also creating new opportunities for small businesses.
These threshold updates include:
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Micro-Purchase Threshold increased from $10,000 to $15,000 (and higher for contingency and defense support MPTs). Purchases below this amount can often be made without going through a formal competitive bidding process.
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Simplified Acquisition Threshold increased from $250,000 to $350,000, allowing more procurements to use streamlined procedures and faster award cycles.
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Subcontracting Plan Requirements now apply to contracts above $900,000 (up from $750,000), or $2 million for construction.
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Commercial Item Simplified Procedures threshold increased from $7.5 million to $9 million, giving small businesses a greater chance to compete for higher-value contracts under simplified rules.
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View all 2025 FAR Threshold Changes here
For small businesses, these increases could translate into quicker contract awards and simpler processes to compete for federal work. With higher thresholds, more federal purchases may fall under simplified procedures—meaning less paperwork, fewer proposal requirements, and quicker turnarounds. This is good news for Maine manufacturers, service providers, and other small businesses looking to break into federal contracting.
It's important to understand how these threshold changes affect your pricing, competition, and compliance responsibilities. While the streamlined processes can save time, the rules and documentation requirements still apply. Knowing where your business fits within these new thresholds may influence your contracting strategy.
If you have questions about what these updates mean for your business, reach out to your Maine APEX Procurement Counselor. We’re here to help!
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What We Know About DBE Certification Updates
Samuel Updike, Procurement Counselor serving Hancock, Penobscot, Piscataquis and Waldo Counties
On October 3rd, 2025 the DBE Certification underwent some changes when the USDOT published a new rule. Moving forward, all certified businesses will need to demonstrate social and economic disadvantage (SED) based on their own life experiences. To satisfy this requirement and ensure all determinations of disadvantage are not based in whole or in part on race, ethnicity, or sex, an owner must provide a personal narrative (PN) to MaineDOT. While little guidance has been offered for the new rule, we can offer some insight into what we know about the changes. DBE businesses should become familiar with the process, so it does not become an overwhelming experience at the last minute.
The new rule requires DBE & ACDBE businesses to establish social and economic disadvantage through specific individualized proof of barriers experienced by the firm’s owner. To support the owner’s case, these businesses must develop narratives that show concrete examples showing disadvantages. This could include instances of difficulty obtaining financing, bonding, or insurance on terms available to businesses in a similar position. A business could also give examples of barriers encountered in education, employment, or business growth. It is important to show documentation backing up these claims, like loan, bond, or insurance denials.
There is currently no specific deadline given by the new rule. It simply states the process should be completed “as quickly as practicable.” MaineDOT must notify USDOT when it has completed the re-evaluation process for all current DBE and ACDBE businesses. If you are DBE or ACDBE business looking for further clarification, reach out to your APEX counselor or to the MaineDOT Civil Rights office. They can be reached at mary.bryant@maine.gov or at their phone number, (207) 624-3056.
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Give Your Feedback about CMMC to DoD OSBP
Maine APEX recently received a notice from the Department of Defense (DoD) Office of Small Business Programs (OSBP) that the office is seeking input about the upcoming requirements for CMMC that take into effect on November 10th of this year. If you are unfamiliar with CMMC it is the Cybersecurity Maturity Model Certification (CMMC) that the DoD is now requiring all contractors and subcontractors to have to be a part of the supply chain.
This is the first time in the 5 year build up to this certification requirement that the voice of the small business owners can be heard. Your voice is critical in helping the DoD keep informed about the real-time impact on small businesses so they can tailor the resources, support, and guidance during the transition. We encourage you to take just a few minutes to complete this short, anonymous survey:
Survey Link: https://forms.osi.apps.mil/r/Kj8RFat4A8
The survey explores your current readiness, concerns, challenges, and efforts related to CMMC compliance. Your responses will help ensure that the support small businesses receive is relevant, timely, and aligned with real-world needs. Feedback is due November 9.
Participation is completely voluntary. Thank you for taking the time to contribute to this important effort and for your continued role in supporting the defense industrial base.
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