Set-Aside Alert news analysis:
NDAA’s acquisition provisions
Subcontractor credits, Best-in-class reports, and more
The $738 billion National Defense Authorization Act for Fiscal 2020 has been signed into law with many small business acquisition-related provisions, as is usually the case.
A computer scan of the digitized bill text revealed 136 references to small business. The conference committee’s report had 79 such references.
Here is a list of the major items affecting small business contractors:
Sec. 823 - Modifies the justification and approval requirement: The law removes a requirement that defense officials issue a “justification and approval” memorandum when awarding a sole-source contract of less than $100 million to small disadvantaged firms in the 8(a) Business Development program, including tribes, Alaska Native, and Hawaiian firms.
Sec. 870 - Credit for small business subcontractors: To determine whether a prime contractor has met its small business subcontracting goals, for a single contract with a federal agency, the prime may choose to receive credit for such subcontractors at any tier. If the subcontracting goals pertain to more than one contract with one or more federal agencies, the prime contractor may only receive credit for first tier.
Sec. 871 - Includes Best-in-Class designations in annual small business procurement report: Includes, in the government’s annual small business procurement score card, information on the participation by small businesses (including the socioeconomic categories) in contracts designated as best-in-class.
Sec. 872 - Reauthorizes and Improves the Defense Dept.’s mentor-protege program: Extends the department’s mentor-protege program to Sept. 1, 2024 and removes the requirement that small business participants must be less than one-half the size allowed by their NAICS code. Small size will be defined by the appropriate NAICS code. Also, the law orders performance goals, annual reports with data on participants and independent reports on effectiveness.
Sec. 873 - Orders accelerated payments to small business contractors: The goal is for all federal agencies to pay small business prime contractors 15 days after an invoice is received.
Sec. 874 - Requires post-award explanations for unsuccessful offerers if requested: For offers over the Simplified Acquisition Threshold but less than $5.5 million, the offerer may request an explanation from the contracting officer of why the offer was unsuccessful. The contracting officer must respond with a brief explanation including a rationale for the award and a summary of deficient factors in the offer.
Sec. 875 - Authorizes small business contracting credit for subcontracts in Puerto Rico and territories: This section provides for small business credit for subcontracts awarded to firms in Puerto Rico, U.S. Virgin Islands and other U.S. territories.
Sec. 878 - Raises award limit for the Defense Research and Development Rapid Innovation program: The existing $3 million limit is raised to $6 million for phase II Small Business Technology Transfer Program (STTR) awards, among other changes.
Sec. 880 - Assistance to small businesses in the SBIR (Small Business Innovation Research) and STTR programs: Sets procedures for procurement center representatives to consult with appropriate technical personnel at the relevant agencies, among other changes.
Sec. 881 - Cybersecurity technical assistance for SBIR and STTR programs: This section authorizes the Secretary of Defense to enter into agreements with vendors to provide small firms engaged in the SBIR and STTR programs with cybersecurity assistance.
Sec. 882 - Report on defense research funds going to small businesses: By March 1, 2020, the Defense Dept. must submit a report to Congress on funding and other assistance going to small businesses engaged in DOD research and development, including SBIR and STTR.
Sec. 884 - Pilot program for domestic investment under the SBIR program: The secretary must establish a program allowing each military department to make an SBIR award without the usual written determinations, provided that the firm is majority-owned by U.S. investors. Such awards shall not exceed 10% of the total value of SBIR awards.
Sec. 885 - Review of guidance to contractors of nondiscrimination on the basis of sex: The evaluation shall include a review of guidance regarding workplace harassment and intimidation based on sex.
More information:
Text of the NDAA 2020: https://www.govtrack.us/congress/bills/116/s1790/text