Update on Procurement Amendments to the FY24 NDAA (Defense Bill)

Unfortunately, the House Rules Committee voted down Rep. Stauber (R-MN)’s change order amendment to the House’s FY24 National Defense Authorization Act (NDAA).  However, we are currently working with Sens. Wicker (R-MS) and Hirono (D-HI) to have it as an amendment to the Senate's version of the bill.  One recent wrinkle regarding the amendment was the Congressional Budget Office (CBO)'s score for it, which could cost $38 million to implement the new change order process.

The Senate version of the FY24 NDAA did include an amendment that would prevent double counting of small businesses, require the U.S. Small Business Administration (SBA) to report on number of small entities instead of just total dollar value, and report on the top 10 and bottom 10 industries for small business participation. This will help prevent agencies from loading up construction, and other select industries, with small business requirements to meet their goals while letting other industries have minimal participation.

This amendment would increase transparency and accuracy of (SBA)’s Procurement Scorecard and the overall participation of small business participation in the federal market. Currently, SBA provides each agency with a single rating for small business participation despite the fact that there are numerous types of small businesses. Among other things, it would require reporting of small business prime contracts and subcontracts during the fiscal year compared to the prior fiscal year, including a breakdown by North American Industry Classification System (NAICS) code, if available.  Hopefully, this amendment will remain in the final bill.