The National Defense Authorization Act for Fiscal Year 2014 (H.R. 3304) was slimmer than usual, with only two significant contracting provisions for small businesses. In previous years, there were dozens.

One of those new provisions is sparking some controversy.

Rep. Richard Hanna (R-NY) offered the subbing provision, which passed by voice vote when the House approved the NDAA in June.

The measure aims to help primes consider more small subcontractors. Currently, large firms get credit toward small business goals only for the first tier of subs; under the provision, all tiers will be counted.

But Guy Timberlake, chief visionary for the American Small Business Coalition (ASBC), recently warned of negative consequences.

“Don’t we have enough challenges with entities that are not legit (sic) small businesses being awarded work...? Now we create an unmonitored means for organizations to boost their numbers,” Timberlake wrote on Dec. 22. He fears the new provision may encourage formation of new small vendors that are essentially fronts for large primes.

The other NDAA provision of note allows contracts that are subject to the Small Business Act’s limitations on subcontracting be exempt from Sec. 802 of the FY 2013 NDAA.

More information:
NDAA text: http://goo.gl/YFjjiZ and http://goo.gl/iqE7Id
ASBC blog: http://goo.gl/4KtEPk