|
Senate panel OK's NDAA
for FY2021
Some DOD proposals bad for small business: NDIA
The Senate Armed Services Committee recently approved the National Defense Authorization Act of Fiscal 2021 with several small business provisions, setting up the bill for a Senate vote.
Meanwhile, the Defense Dept. has floated a number of significant proposals that also could impact small businesses--some beneficially and some not so. Those ideas presumably may be considered in future versions of the NDAA in the coming months.
NDAA small business section
The most significant provisions for small firms are for prompt payments and extension of a pilot technology program:
- Subtitle E, Section 871: The committee recommended strengthening the requirement that the DOD establish a goal to pay small business contractors within 15 days of receipt of an invoice.
The Senate committee, in its report, noted that the Defense Logistics Agency in November 2019 moved from 15-day payment terms to 30-day terms. This move "may have a detrimental effect on small businesses' ability to continue to do business for the US Government," the report said.
- Subtitle E, Section 872: The committee recommended a provision that would extend by three years the authorization of a pilot program to streamline contracting and auditing processes for certain innovative technology projects carried out by small businesses.
The provision may help to accelerate the awards of Small Business Innovation Research (SBIR) contracts and other contracts to innovative non-traditional defense contractors. It would alleviate requirements for small businesses to submit certified cost and pricing data and requirements for certain types of audit and records examination, the committee report stated.
Additional DOD proposals
Defense officials in recent months have offered a number of additional legislative proposals intended for inclusion in the NDAA, including three proposals that would have a negative effect on small businesses.
Consideration of the DOD proposals has been somewhat limited thus far. "Like much in this pandemic year, these came late in the cycle but could affect some foundational aspects on how industry partners with the department," states an analysis published by the National Defense Industrial Association (NDIA).
DOD has proposed classification of the future years defense program for reasons of security. The unclassified budget projection, produced since 1989, would no longer be produced.
Classifying the program "will disproportionately hurt small businesses" and hurt competition, the NDIA analysis said. Those firms need reliable information for their research and development decisions, and they tpically have only a limited view of classified work. "Issuing only a classified future years defense program places those companies at a distinct disadvantage," the NDIA analysis said.
DOD’s proposal regarding disclosure of certain sensitive information to DOD contractors would allow disclosure to a broader category of support contractors without adequate protections. "From an industry perspective, this gives the contractor zero visibility of whom outside the government has access to the information," the NDIA analysis stated. An agreement between the government and a covered support contractor does not protect the owner of the sensitive information, the analysis added.
DOD has proposed to reverse congressional reforms of performance-based payments by limiting such payments to total cost incurred. Congress previously said such payments should be conditioned on performance, not costs incurred, the NDIA said.
More information:
Senate reports: https://bit.ly/38czxrU
NDIA analysis: https://bit.ly/3eH7kMd
|
Inside this edition:
Cardin, small contractors push key amendments to FY21 NDAA
Senate panel OK’s NDAA
for FY2021
Small biz utilization drops in gov-wide Best-In-Class awards
8(a) STARS II ceiling raised
Judge backs ANCs for aid
Updated Coronavirus Resources for Small Business Federal Contractors
'Main Street' lending set up
NDIA survey
Column: Financing Alternatives for Government Contractors
-
SBA not dealing with fraud risks in PPP: GAO
-
CIO-SP3 winners
-
CMMC audit timing
|
