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What You Need to Know About Changes to the National Defense Authorization Act?

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Created on January 13, 2015
 

The U.S. Small Business Administration (SBA) recently published a proposed rule to implement Section 1651 of the National Defense Authorization Act of 2013 (NDAA), proposing to change several key areas, including: the performance requirements applicable to small business and socioeconomic program set aside contracts and small business subcontracting, the non-manufacturer rule and affiliation rules, and the performance requirements for joint ventures. 

If you’re a small business doing business with the government, the proposed rule includes a number of provisions that could impact you. Comments must be received on or before February 27, 2015.

The highlights of the proposed revisions to the NDAA include:

  1. Subcontracting: Changing the way that performance is calculated on small and socioeconomic set-aside contracts, and authorizes similarly situated subcontractors to count towards the performance requirements. (Section 1651)

  2. Joint Ventures: Making the performance requirements consistent, regardless of whether or not a small business chooses to joint venture or perform in a prime or subcontractor relationship. (Section 1651)

  3. Non-Manufacturer Rule:  Revisions to SBA’s regulations pertaining to the Non-manufacturer rule and affiliation rules including the treatment of software as a commodity and the elimination of waiver requests for procurements within the Simplified Acquisition Threshold (SAT). (Section1651)

Visit Regulations.gov for more information about the proposed revisions.

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