Blog

Small Business Provisions in the FY17 National Defense Authorization Act

You can read the full text of the Conference Report for the FY17 NDAA HERE.  

Section 1801 – Plain Language Rewrite of Requirements for Small Business Procurements

This section rewords section 15 (a) of the Small Business Act as plain English so that small businesses and contracting agencies will better understand the current requirements of the law. This language originated from H.R. 4341, the Defending America’s Small Contractors Act, introduced by Chairman Chabot and co-sponsored by Ranking Member Velazquez.

Section 1802 – Transparency in Small Business Goals

This section amends section 15(g) of the Small Business Act to ensure that the goals established by the Act are measured against the total contract dollars spent that year rather than allowing SBA to exclude up to 20 percent of all spending. The language is from H.R. 4329, the Transparency in Small Business Goaling Act of 2016, introduced by Rep. Chu and cosponsored by Rep. Kelly.

Section 1811 –Clarifying the Roles of Small Business Advocates

This section amends section 15(l) of the Small Business Act to remedy an internal SBA decision that prevents SBA’s procurement center representatives from reviewing consolidated contracts if the contract was set aside or partially set aside for small businesses, even if the acquisition strategy harmed the ability of small businesses to compete for contracts.  This bill allows Procurement Center Representatives (PCRs) to review those contracts, which should improve opportunities for small firms.  This bill originates from H.R. 4332, the Maximizing Small Business Competition Act of 2016, introduced by Rep. Kelly. 

·         This provision was amended to include contracts awarded and performed overseas as being exempt from small business goaling.  This amendment covered a tiny fraction of contracts that weren’t otherwise already exempt. 

Section 1812 – Duties of Office of Small and Disadvantages Business Utilization

This section amends section 15(k) of the Small Business Act to allow the Offices of Small and Disadvantaged Business Utilization (OSDBU) to review agency purchases made using government credit cards to ensure compliance with the Small Business Act.  The committee learned last year that in one agency over $6 billion in such purchases were made without regard to statutory requirements.  Additionally, the section furthers the committee’s long-standing commitment to parity between the contracting programs. The language is from H.R. 4326, Small and Disadvantaged Business Enhancement Act of 2016, introduced by Rep. Adams and cosponsored by Rep. Hardy.  Also passed the House by voice under suspension on 4/19/16. 

Section 1813 – Improving Contractor Compliance

This section amends sections 15 and 45 of the Small Business Act, and section 831 of the National Defense Authorization Act for Fiscal Year 1991 to improve opportunities for small contractors attempting to navigate federal contracting regulations. While there are no-cost compliance assistance programs available for these companies, the companies themselves are often unaware of the resources.  This section directs PCRs, OSDBUs, mentors in approved mentor-protégé programs and other small business advocates to help small businesses find these free resources. No extra funds for SBA would be required.  This language is taken from H.R. 4331, the Small Business Easy Contract Compliance Enhancement and List Act of 2016, introduced by Rep. Hardy and cosponsored by Rep. Adams.

Section 1814 – Improving Education on Small Business Regulations

This section amends section 15 of the Small Business Act to require the SBA to annually share a list of regulatory changes affecting small business contracting with the entities responsible for training contracting personnel. This language originated from H.R. 4337, the Education for Contracting Personnel Improvement Act of 2016, introduced by Rep. Meng and cosponsored by Rep. Hanna.

Section 1821 – Good Faith in Subcontracting

This section amends section 8(d) of the Small Business Act to ensure that subcontracting goals are accurately reported and implement GAO recommendations on how goals are set.  This section originated from H.R. 4284, the Service Provider Opportunity Clarification Act of 2015, introduced by Rep. Curbelo and cosponsored by Rep. Clarke.  Passed the House under suspension on 4/19/16.

Section 1822 – Pilot Program to Provide Opportunities for Qualified Subcontractors to Obtain Past Performance Ratings

This section amends section 8(d) of the Small Business Act to add a new paragraph creating a pilot program that allows small businesses to apply for past performance credit for work performed as a first tier subcontractor.  This section is from H.R. 4317, the Promoting Reliable Subcontractors Act of 2016, introduced by Rep. Hanna and cosponsored by Rep. Takai. 

Section 1823 -- Amendments to Mentor-Protégé Program of the Department of Defense

This section amends section 831 of National Defense Authorization Act for Fiscal Year 1991 to allow the Department of Defense to rely upon SBA’s Office of Hearings and Appeals to make size determinations. This language is from H.R. 4322, the Mentor-Protégé Cooperation Reform Act, which was introduced by Rep. Knight and cosponsored by Rep. Chu.

Section 1831 – Improvements to Size Standards for Small Agriculture Producers

This section amends sections 3(a) and 18(b) of the Small Business Act to allow SBA to establish individual size standards for small agricultural producers following the same process used for all other industries. This language is taken from H.R. 3714, the Small Agriculture Producer Size Standard Improvements Act of 2015, introduced by Rep. Bost and cosponsored by Rep. Meng. Passed the House by voice vote under suspension on 4/19/16.  

Section 1832 – Uniformity in Service-Disabled Veteran Definitions

This section amends section 3(q) of the Small Business Act and 38 U.S.C. § 8127 to unify the definitions and regulations applicable to the government-wide and Department of Veterans Affairs specific contracting programs for veterans and service-disabled veterans and moves appeals from the VA’s program to the Office of Hearings and Appeals at the SBA.  This language is from H.R. 3945, the Improving Opportunities for Service-Disabled Veteran-Owned Small Businesses Act of 2015, introduced by Rep. Mike Coffman and cosponsored by Rep. Chabot, Rep. Velázquez, Rep. Hanna, and Rep. Moulton. Passed the House by voice vote under suspension on 4/19/16.

Section 1834 - Extension of SBIR/STTR Programs

The Conference Report includes an extension of the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs. The extension of these programs to 2022 will prevent these popular programs from expiring. The language originated from H.R. 4783, the Commercializing on Small Business Innovation Act of 2016, introduced by Chairman Chabot and co-sponsored by Ranking Member Velazquez.

Sections 1841-1844 – Small Business Cybersecurity

The Conference Report also includes a bill to provide cybersecurity resources to small businesses through Small Business Development Centers.  These provisions came from a bill introduced by SBC Contracting and Workforce Subcommittee Chairman Rep. Hanna, which separately passed the House in September, 2016.  This bill gives small businesses access to tools, resources, and expertise to help protect their sensitive electronic data from cyber-threats.  The bill calls for SBA and DHS to work with Small Businesses Development Centers to provide assistance to small businesses. 

Section 1801 – Plain Language Rewrite of Requirements for Small Business Procurements

This section rewords section 15 (a) of the Small Business Act as plain English so that small businesses and contracting agencies will better understand the current requirements of the law. This language originated from H.R. 4341, the Defending America’s Small Contractors Act, introduced by Chairman Chabot and co-sponsored by Ranking Member Velázquez.

Section 1802 – Transparency in Small Business Goals

This section amends section 15(g) of the Small Business Act to ensure that the goals established by the Act are measured against the total contract dollars spent that year rather than allowing SBA to exclude up to 20 percent of all spending. The language is from H.R. 4329, the Transparency in Small Business Goaling Act of 2016, introduced by Rep. Chu and cosponsored by Rep. Kelly.

Section 1811 – Duties of Procurement Center Representatives with Respect to Solicitations

This section amends section 15(l) of the Small Business Act to remedy an internal SBA decision that prevents SBA’s procurement center representatives from reviewing consolidated contracts if the contract was set aside or partially set aside for small businesses, even if the acquisition strategy harmed the ability of small businesses to compete for contracts.  This bill allows Procurement Center Representatives (PCRs) to review those contracts, which should improve opportunities for small firms.  This bill originates from H.R. 4332, the Maximizing Small Business Competition Act of 2016, introduced by Rep. Kelly. 

·         This provision was amended to include contracts awarded and performed overseas as being exempt from small business goaling.  This amendment covered a tiny fraction of contracts that weren’t otherwise already exempt. 

Section 1812 – Duties of Office of Small and Disadvantages Business Utilization

This section amends section 15(k) of the Small Business Act to allow the Offices of Small and Disadvantaged Business Utilization (OSDBU) to review agency purchases made using government credit cards to ensure compliance with the Small Business Act.  The committee learned last year that in one agency over $6 billion in such purchases were made without regard to statutory requirements.  Additionally, the section furthers the committee’s long-standing commitment to parity between the contracting programs. The language is from H.R. 4326, Small and Disadvantaged Business Enhancement Act of 2016, introduced by Rep. Adams and cosponsored by Rep. Hardy.  Also passed the House by voice under suspension on 4/19/16. 

Section 1813 – Improving Contractor Compliance

This section amends sections 15 and 45 of the Small Business Act, and section 831 of the National Defense Authorization Act for Fiscal Year 1991 to improve opportunities for small contractors attempting to navigate federal contracting regulations. While there are no-cost compliance assistance programs available for these companies, the companies themselves are often unaware of the resources.  This section directs PCRs, OSDBUs, mentors in approved mentor-protégé programs and other small business advocates to help small businesses find these free resources. No extra funds for SBA would be required.  This language is taken from H.R. 4331, the Small Business Easy Contract Compliance Enhancement and List Act of 2016, introduced by Rep. Hardy and cosponsored by Rep. Adams.

Section 1814 – Improving Education on Small Business Regulations

This section amends section 15 of the Small Business Act to require the SBA to annually share a list of regulatory changes affecting small business contracting with the entities responsible for training contracting personnel. This language originated from H.R. 4337, the Education for Contracting Personnel Improvement Act of 2016, introduced by Rep. Meng and cosponsored by Rep. Hanna.

Section 1821 – Good Faith in Subcontracting

This section amends section 8(d) of the Small Business Act to ensure that subcontracting goals are accurately reported and implement GAO recommendations on how goals are set.  This section originated from H.R. 4284, the Service Provider Opportunity Clarification Act of 2015, introduced by Rep. Curbelo and cosponsored by Rep. Clarke.  Passed the House under suspension on 4/19/16.

Section 1822 – Pilot Program for Mentor-Protégé Program to Provide Opportunities for Qualified Subcontractors to Obtain Past Performance Ratings

This section amends section 8(d) of the Small Business Act to add a new paragraph creating a pilot program that allows small businesses to apply for past performance credit for work performed as a first tier subcontractor.  This section is from H.R. 4317, the Promoting Reliable Subcontractors Act of 2016, introduced by Rep. Hanna and cosponsored by Rep. Takai. 

Section 1823 -- Amendments to Mentor-Protégé Program at Department of Defense

This section amends section 831 of National Defense Authorization Act for Fiscal Year 1991 to allow the Department of Defense to rely upon SBA’s Office of Hearings and Appeals to make size determinations. This language is from H.R. 4322, the Mentor-Protégé Cooperation Reform Act, which was introduced by Rep. Knight and cosponsored by Rep. Chu.

Section 1831 – Improving Size Standards for Small Agriculture Producers

This section amends sections 3(a) and 18(b) of the Small Business Act to allow SBA to establish individual size standards for small agricultural producers following the same process used for all other industries. This language is taken from H.R. 3714, the Small Agriculture Producer Size Standard Improvements Act of 2015, introduced by Rep. Bost and cosponsored by Rep. Meng. Passed the House by voice vote under suspension on 4/19/16.  

Section 1832 – Uniformity in Service-Disabled Veteran Definitions

This section amends section 3(q) of the Small Business Act and 38 U.S.C. § 8127 to unify the definitions and regulations applicable to the government-wide and Department of Veterans Affairs specific contracting programs for veterans and service-disabled veterans and moves appeals from the VA’s program to the Office of Hearings and Appeals at the SBA.  This language is from H.R. 3945, the Improving Opportunities for Service-Disabled Veteran-Owned Small Businesses Act of 2015, introduced by Rep. Mike Coffman and cosponsored by Rep. Chabot, Rep. Velázquez, Rep. Hanna, and Rep. Moulton. Passed the House by voice vote under suspension on 4/19/16.

Section 1834 - SBIR/STTR Programs

The Conference Report includes an extension of the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs. The extension of these programs to 2022 will prevent these popular programs from expiring. The language originated from H.R. 4783, the Commercializing on Small Business Innovation Act of 2016, introduced by Chairman Chabot and co-sponsored by Ranking Member Velázquez.

Sections 1841-1844 – Improving Cyber Preparedness for Small Businesses

The Conference Report also includes a bill to provide cybersecurity resources to small businesses through Small Business Development Centers.  These provisions came from a bill introduced by SBC Contracting and Workforce Subcommittee Chairman Rep. Hanna, which separately passed the House in September, 2016.  This bill gives small businesses access to tools, resources, and expertise to help protect their sensitive electronic data from cyber-threats.  The bill calls for SBA and DHS to work with Small Businesses Development Centers to provide assistance to small businesses.