On December 26, 2013, the National Defense Authorization Act (NDAA) for Fiscal Year 2014 was signed into law. That law, along with broader ranging Bipartisan Budget Act of 2013 (BBA), will impact government contracting in a number of ways, including new requirements for contracting with suspended/debarred entities, new requirements for small business acknowledgements and new regulations requiring prime contractors to review and monitor subcontractors’ subcontract plans.
Specifically, the NDAA now requires:
- Contracting with Suspended/Debarred Entities – NDAA Section 813 now requires that the DOD provide a written justification to the GSA when it determines that there is a compelling reason to award a contract to a suspended or debarred contractor. The GSA could previously request that the DOD submit that information, but now that information is not only required, but also must be published for public viewing.
- New Small Business Acknowledgments – NDAA Section 1611 requires that the DOD develop a contract clause for small business contracts requiring the contractor “to acknowledge that acceptance of the contract may cause the business to exceed the applicable small business size standards” and that the “contractor may no longer qualify as a small business concern for that industry.”
- Review of Subcontracting Plans – NDAA Section 1614 requires prime contractors to review and monitor subcontractors’ subcontracting plans and ensure compliance with those plans.
Government contractors should keep these changes in mind moving forward.