Set-Aside Alert exclusive analysis:

Senate vote on NDAA expected soon; has small biz provisions

SDB Mentor-Proteges, PTACs, tech partnerships & more

      A Senate vote on its draft of the National Defense Authorization Act for Fiscal 2023 (NDAA) is anticipated after the November elections, with a number of small business measures included in the current version and several small business amendments pending.

      The NDAA draft approved by the Senate Armed Services Committee includes measures to:

• Make permanent the Defense Dept.’s Mentor-Protege Program and increase participation of Small Disadvantaged Business (SDB) proteges;
• Add funding to Procurement Technical Assistance Centers (PTACs); and
• Set up a new public-private program to accelerate small business innovation in the industrial base.

      Among the pending amendments are one allowing military spouses to participate in DOD entrepreneurship programs and another that would ease economic price adjustments to account for inflation.

      The House passed its version of the NDAA in July. Once the Senate approves its version, a joint House-Senate panel will meet to prepare a final version to be approved by both chambers. In theory the process is straightforward, but high-stakes elections add uncertainty. .

      Here are more details on the significant Senate NDAA small business items:

Senate NDAA provisions

• Section 827 would increase accelerated payments for large businesses who meet their small business subcontracting goals, among other incentives. The companies who meet those small business goals would get an increased accelerated payment of 55%, up from the usual 50% limit.
• Section 861 sets up a new Public-Private Partnership Technology Investment Pilot program involving small businesses in the defense industrial base. However, the White House put out a statement on Oct. 18 cautioning that “without capital assistance authorities, Section 861 would not be sufficient to address our nation’s critical technology gaps.”
• Section 862 makes permanent the DOD Mentor-Protege Program, incorporating recent regulatory changes in the program, and also adding provisions specifically regarding SDBs. These include allowing SDBs to participate as proteges in the program for three years. The recent final rule limited mentor-protege agreements to two years (see Sept. 9 edition of Set-Aside Alert).
• Sec. 865 would improve PTACs by expanding funding to $1.5 million, up from $1 million currently.

Senate NDAA pending amendments

• The Aerospace Industries Association is supporting a proposed amendment by Sen. Kevin Cramer, R-ND, to allow DOD contracting officials to ease modification of contracts with economic price adjustments to account for inflation (https://bit.ly/3W9KCT0).
• Senators Amy Klobuchar, D-MN, and Thom Tillis, R-NC, introduced an amendment to develop training for military spouse entrepreneurship (https://bit.ly/3feN9KW).

More information:
Senate NDAA text: https://bit.ly/3fg9FTL

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