2019 NDAA Helps Small Business Contractors in Several Key Ways

February 3, 2019

Associates Mitchell Bashur and Amy Fuentes were quoted by WashingtonExec on the provisions made to the 2019 National Defense Authorization Act (NDAA) that will help small business contractors. One of the most important small business provisions seeks to ensure small prime contractors are paid in a timely manner. Mr. Bashur and Ms. Fuentes explain that Section 852 of the NDAA will require the U.S. Department of Defense (DoD) to establish a goal of paying small business primes within 15 days of receiving a invoice if the contract does not establish a specific payment date.

"That’s an important change because it makes sure those small businesses get funding on time," Mr. Bashur said. "They realize that prompt payment is important for small businesses to continue performance on a contract. This provision is meant to ensure that the government does its part to support these companies."

Mr. Bashur notes there are new Section 809 panel recommendations for reforming the defense procurement system envision a more limited role in defense contracting for small businesses. The recommendations call to eliminate or significantly reduce small business set-asides in commercial contracts and substituting a 5 percent price reference. Mr. Bashur argues that this would be a step backward and limits contracting opportunities for small companies.

"With small businesses competing against the big guys, 5 percent isn’t going to be as important as a set-aside," Mr. Bashur said.

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