Government Contracts Monitor

Short Take: House-Passed FY15 NDAA Contains Important Small Business Provisions.

June 13, 2014

On May 22, 2014 the U.S. House of Representatives passed House Resolution No. 4435, the National Defense Authorization Act (NDAA) for Fiscal Year 2015. This bill includes several important provisions that would materially impact small businesses if concurred in by the Senate and carried forward into law. Most importantly, under an amendment sponsored by the chair of the House Small Business Committee, the federal government’s goal for small business prime contracts would rise from 23% to 25%. The subcontracting goal similarly would rise from 35.9% to 40%. Among other things, the House bill also would (1) allow sole source contracts to be awarded under the Women-Owned Small Business program, (2) transfer the certification of service-disabled veteran–owned small businesses to the Small Business Administration from the Department of Veterans Affairs, (3) require that justifications for bundling be published prior to a strategic sourcing solicitation, and (4) improve data reporting on bundling and consolidation of contracts. The House-passed bill now goes to the Senate for consideration. Any differences will then go to a joint House-Senate conference committee for negotiation, and votes by both chambers on a mutually agreed version, before a final bill can go to the President and become law. Interested parties should contact their respective Senators if they want to be heard and have input on any of these issues.

Hopewell Darneille is the attorney responsible for the content of this article.