House OKs 2022 NDAA

Includes changes to HUBZone appeals, SBIR

      The House on Dec. 7 approved the latest version of the $768 billion National Defense Authorization Act for Fiscal 2022, which was jointly negotiated with the Senate and is expected to pass the Senate this week. Although there is talk of delays, most anticipate approval shortly.

      The massive bill contains several provisions initiated by the House Small Business Committee (see page 2). It also has other items affecting small business federal contractors, including:

• HUBZone status appeals: Section 864 authorizes the Small Business Administration’s Office of Hearings and Appeals to decide appeals relating to protest determinations on the status of HUBZone small businesses. Previously, the SBA’s Associate Administrator for the Office of Government Contracting and Business Development heard such appeals.
• Actions required after losing status in a protest determination: Under Section 863, if a final determination is made that a firm does not meet the requirements of its small business status, then the following actions are required:
  1. The firm must update its status within the System for Award Management (SAM.gov) within two days;
  2. If the firm does not act, the SBA Administrator must make the update; and
  3. The firm must notify its contracting officer about each pending bid and about whether the determination “affects the eligibility of the concern to perform such a contract.”
• Inflation adjustments: Section 861 allows exemption of certain contracts from the periodic inflation adjustments to the acquisition-related dollar threshold.
• Extension of data collection pilot project: Section 862 extends the deadline for a pilot project authorized under Section 873 of the fiscal 2016 NDAA. The project involves collecting and analyzing data and sharing best practices on streamlining awards for innovative technology projects. The deadline has been extended two years to Oct. 1, 2024.
• Unfunded priorities in SBIR/STTR: Section 865 states that early in 2022 the military departments and Research & Engineering under secretary shall each submit a report on unfunded high-priority items for the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs.
• Report on CMMC: Section 866 requires the defense secretary to submit a report to Congress within 180 days on the Cybersecurity Maturity Model Certification (CMMC) framework effects on small business, including estimated cost of compliance and “how those costs will be recoverable” by the firms; estimated change in the number of small firms in the defense industrial base; and details on training and on mitigation of negative effects.
• Phase III SBIR & STTR: Section 867 requires each military department to submit data to the secretary on Phase III SBIR and STTR programs, including funding, topics of research and identification of highest-performing projects.

More information:
NDAA text: https://bit.ly/3IACIuZ

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