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Federal Market Intelligence for Small Business |
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Set-Aside Alert Congressional legislation analysis:NDAA has 17 small biz provisionsReauthorizes SBIR and STTR programs for another five yearsCongress approved the National Defense Authorization Act for Fiscal 2017 with 17 provisions affecting small business federal contracting. Only one provision--affecting the Veterans Affairs Dept. and Small Business Administration roles in overseeing veteran-owned contractors--is likely to have significant impact (click here for full analysis). While Rep. Steve Chabot, R-OH, chair of the House Small Business Committee, usually wants to reduce or eliminate regulations, he appears to make an exception for rules he believes improve small business contracting. Chabot said in a press release that he was “especially proud” that many of the 17 new measures in the NDAA originated in the committee. “The FY17 NDAA recognizes that small businesses play a vital and indispensable role in providing for the common defense,” Chabot said in the release. Here is a summary of the provisions, by order of their numerical section. The statutory language will need to be made into regulations to go into effect. Section 1801: Requires a “plain language” rewrite of requirements for the government’s small business procurements. Section 1802: According to the House-Senate conference report on the NDAA, this section requires the General Services Administration to issue an annual report on the small business share of federal contracting. The House small business committee said this will ensure that goals are measured against the GSA’s measure of total contracting dollars, rather than the SBA’s figures. The SBA excludes a portion of the contract spending that it deems as inaccessible to small businesses. In fiscal 2016, it ceased exclusions of overseas contract spending. It was not immediately clear whether SBA would be required to use the GSA figure, or whether the GSA figure simply would provide additional insight into the SBA’s calculations. Section 1811: Amends Section 15(l) of the Small Business Act regarding SBA’s Procurement Center Representatives. The change is being made to reverse an internal SBA decision that prevents SBA’s procurement center representatives from reviewing consolidated contracts if the contract was set aside for small businesses. The change will allow the representatives to review those contracts. This provision was amended to include contracts awarded and performed overseas. Section 1812: Expands authorities of the Offices of Small and Disadvantaged Business Utilization (OSDBUs). It allows the OSDBUs to provide assistance to service-disabled veterans and HUBZone firms for the first time. It also allows review of agency purchases made using government credit cards to ensure compliance with the Small Business Act. Section 1813: Requires SBA to develop a list of no-cost compliance assistance programs for small business federal contractors. The list must be made available to OSDBUs and PCRs. No extra funding is made available. This section amends sections 15 and 45 of the Small Business Act, and Section 831 of the NDAA for FY1991. Mentor agreements also must address contractor compliance to comply with this section. Section 1814: Requires the SBA to develop an annual list of regulatory changes affecting small business federal contractors. The SBA also must share the list with entities that train federal contracting personnel, including the Federal Acquisition Institute and the Defense Acquisition University. This section amends Section 15 of the Small Business Act. Section 1821: Aims to improve reporting of small business subcontracting goals. This section amends section 8(d) of the Small Business Act to make sure that subcontracting goals are accurately reported. Within 270 days, the SBA must provide examples of failures to comply with this section. It also implements recommendations from the Government Accountability Office on how the subcontracting goals are set. Section 1822: Creates a pilot program to provide opportunities for subcontractors to obtain past performance ratings. This section amends section 8(d) of the Small Business Act. It sets up a new pilot program that allows small businesses to apply for past performance credit for work performed as a first tier subcontractor. Section 1823: According to the House-Senate conference report on the NDAA of FY2017, this section requires the SBA to determine whether a prospective protege firm is affiliated with its proposed mentor prior to approval of a mentor-protege agreement. However, the House Small Business Committee’s summary of the NDAA states that this section allows the DOD to rely on size determinations from the SBA’s hearings and appeals office. Further clarification was not immediately available. Section 1831: Changes how agricultural enterprises are defined. This section authorizes the SBA to establish different size standards for various types of agricultural enterprises. “Size standards would be established according to the existing method and appeals process by which the SBA establishes other size standards,” the conference report states. Section 1832: Requires the Veterans Affairs Dept. to adopt the definitions of veteran-owned and service-disabled veteran-owned small firms used by the SBA. This section also requires the VA to use the SBA regulations for establishing ownership and control of VOSBs and SDVOSBs. However, the VA would be responsible for verification of applicants. Applicants may appeal VA denials of verification to the SBA’s Office of Hearings and Appeals. Section 1833: Clarifies the jurisdiction of the SBA’s Office of Hearings and Appeals. Section 1834: Extends authorization of the Small Business Innovation Research (SBIR) and the Small Technology Transfer (STTR) programs to 2022. The programs were due to expire shortly. Sections 1841-1844: Offers small businesses cybersecurity services through the SBA’s Small Business Development Centers. The goal is to give small businesses access to tools and expertise to safeguard their digital data. The bill calls for SBA and the Homeland Security Dept. to work with the small business centers to provide cybersecurity assistance.
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