Small biz items in 2021 NDAA

Final version due in Nov.

      House and Senate conference committee members are expected to be named in November to begin negotiating the final version of the National Defense Authorization Act (NDAA) for Fiscal 2021. A vote is anticipated in early December.

      The final bill is likely to contain at least some of the small business items from the separate House and Senate versions of the bill.

      Small business provisions in the NDAA bill approved by the House (HR6395) in July included:

• SBIR: Sect. 275 orders a report on Air Force small business research projects (SBIR and STTR) that were selected but not funded;
• Veteran verification: Sect. 831 orders transfer of verification of small businesses owned by veterans and service-disabled veterans (VOSBs and SDVOSBs) to the Small Business Administration;
• Construction adjustments: Sect. 832 allows for equitable adjustments for small business construction contracts when a change in the scope of work is ordered without the small business’ agreement;
• Exemptions from category management: Sect. 833 exempts 8(a) and women-owned small business contracts, among others, from category management provisions; orders a report on how to increase small business participation in governmentwide multiple-award contracts; and orders that goals be set for such participation, and a plan be implemented;
• Accelerated payments: Sect. 834 orders a report on timeliness of payments to small business contractors;
• 8(a) extensions: In apparent response to the COVID-19 pandemic, Sect. 835 allows 8(a) participants as of March 13, 2020 to extend their participation by a year. Provision is also included in the Senate NDAA bill, under Sect. 5874;
• Past performance: Sect. 836 describes how past performance of a joint venture partner or prime contractor can be used in past performance ratings;
• Boots to Business: Sect. 840 authorizes the SBA’s Boots to Business program to train veterans and their family members to be entrepreneurs;
• Subcontract credit: Sect. 840a makes a number of rule changes, including doubling the credit toward small business subcontracting goals for contracts with small firms located in the same state or within 60 miles of where the work is to be performed; and
• Industrial base resiliency: Sect. 844 authorizes funding for small businesses during the COVID-19 pandemic (similar to Sect. 3610 of the CARES Act).

      Small business measures in the version approved by the Senate (S4049) in July included:

• Pilot program extension: Sect. 872 provides that a pilot program to streamline approvals of innovative technology, created under Sect. 873(f) of the 2016 NDAA, be extended to 2023;
• ”OSBDU” directors: Sect. 5871 states that if an agency’s Office of Small Business Development and Utilization is out of compliance with regulations, the agency must produce a report on the situation and how to fix it;
• Manufacturing contracts: Sect. 5875 raises the maximum award price for sole-source manufacturing contracts to $7 million; and
• SBIR reports: Sect. 5876 requires annual reports on the Defense Dept.’s SBIR program.

      One of the provisions, to extend 8(a) participation by a year for all participants as of March 2020, is included in both House and Senate bills.

      House and Senate conferees will determine what makes it into the final NDAA. It’s not clear which provisions will be chosen for the final bill.

More information:
NDAA 2021:
House version (HR6395) text: https://bit.ly/3miVBH2
Senate version (S4049) text: https://bit.ly/2IXDUOM

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