- Women-Owned Small Businesses (Section 825) – This provision will allow Women-Owned Small Businesses (WOSBs) and Economically Disadvantaged Women-Owned Small Businesses (EDWOSBs) to receive sole-source contracts. This benefit is already provided to HUBZone and Service-Disabled Veteran-Owned Small Business (SDVOSB) firms, so this provision finally gives parity to WOSBs and EDWOSBs.
- Export Assistance for Small Businesses (Section 823) – The intent of this provision is to help small businesses comply with import and export requirements, including the International Traffic in Arms Regulations and Export Administration Regulations.
- Comprehensive Subcontracting Plan Reform (Section 821) – This provision seeks to increase transparency and accountability in the Test Program for Negotiation of Comprehensive Small Business Subcontracting Plans.
The FY 2015 NDAA agreement passed the House on December 4, 2014, and the Senate on
December 12, 2014. It will now go to the President to be signed into law.
Some past examples of business-related provisions included in the NDAA might also demonstrate the importance and implications of the NDAA, particularly for Native contractors. Amendments to the FY 2014 NDAA were offered that would eliminate funding for Indian Incentive Program – a program that encourages subcontracting to Native-owned businesses. While that specific amendment didn’t pass, other harmful provisions have been included in past NDAA measures. For example, in the FY 2010 NDAA, during the House and Senate conference committee (which is used to hash out the differences between the House and Senate passed bills), a provision often referred to as Section 811 was added to the bill. Section 811 requires that any 8(a) Native American sole-source contract over $20 million go through a difficult and time-consuming approval process. This scrutiny is targeted specifically to Native contractors and has resulted in a significant decline in revenue from these contracts. These are just a few examples of the extensive list of business-related provisions included in the NDAA.
In summary, businesses should pay attention to the annual NDAA because of its far-reaching impact. For more information about the NDAA, visit the House Committee on Armed Services and the Senate Committee on Armed Services websites. Please continue to monitor our blog for other updates on legislation that impact businesses.