ASA Supports Change Order Reform in FY24 National Defense Authorization Act (NDAA)

ASA supports the inclusion of the Amendment 453, Small Business Payment for Performance Act, to H.R. 2670, National Defense Authorization Act for Fiscal Year 2024, which would require timely partial payments for agency directed changes to a federal contract.  Amendment 453 to H.R. 2670 would require federal agencies to make interim partial payments to their construction prime contractors for unilateral changes in contract performance directed by the buying agencies. These reforms will help small business construction contractors and subcontractors shoulder the financial burden of unilateral agency changes to a contract.

H.R. 2670 would authorize $886.3 billion, which would align with the spending limit set for national security programs under the June debt-limit deal. The House Armed Services Committee approved the bill on June 21st by a 58-1 vote.  The Senate Armed Services Committee approved its version of the fiscal 2024 defense authorization measure on June 22nd by a vote of 24-1.