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March 15, 2021 By cs

2021 NDAA includes numerous provisions impacting government contracts

The National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2021 (Pub. L. No. 116-283) was enacted into law on January 1, 2021, when the Senate voted to override President Trump’s veto of the bill.

The Senate’s move, the final step in the legislative process, followed the House’s earlier vote to override President Trump’s veto in December 2020.

The FY21 NDAA sets funding levels and outlines policy priorities for the U.S. Department of Defense (DoD). It also addresses many areas of importance to government contractors, including acquisition policy and management, supply chain and industrial base matters, and small business issues.  The final version of the NDAA produced by negotiators on the Conference Committee included provisions from earlier House and Senate versions, which we summarized in an earlier article.

This article includes our annual summary, by topic, of the most relevant provisions of the FY21 NDAA for government contractors. As detailed below, some of the provisions from the earlier House and Senate versions of the NDAA that we highlighted in our previous article were not accepted into the final version.  As we’ve previously summarized, the NDAA also includes numerous provisions addressing cybersecurity and artificial intelligence policies with ramifications far beyond DoD, including implementing recommendations from the Cyberspace Solarium Commission’s 2020 Report.

Keep reading this article at: https://www.jdsupra.com/legalnews/national-defense-authorization-act-for-5444697/

Filed Under: Government Contracting News Tagged With: 8(a), acquisition policy, Adaptive Acquisition Framework, AI, artificial intelligence, bid protest, commercial item, cybersecurity, DoD, GAO, industrial base, intellectual property, NDAA, nontraditional, simplified acquisition threshold, small business, strategic materials, veteran owned businesses, whistleblower

February 25, 2021 By cs

New final rule limits use of LPTA

Businesses and consumers make complex trade-off decisions every day when buying and selling supplies and services.

Sometimes it makes sense to pay more or charge more for a supply or service when quality improvements, added features, or other considerations justify the price.  Other times, paying more or adding features provides no meaningful benefit so we opt for the least expensive item that satisfies our needs.

The federal government uses this same framework, dubbed the “best value continuum,” in negotiated acquisitions.  On one end of this continuum is a full trade-off, where non-price factors, e.g., quality and past performance, take precedence over price.  On the opposite end of the continuum is the lowest price technically acceptable (LPTA) process.  Under LPTA, the government determines its minimum acceptable technical requirements and then seeks to award a contract to the lowest priced offeror who meets the minimum requirements.

Federal agencies have been criticized for overusing the LPTA source selection process, based on the concerns that LPTA procedures chill innovation and hamstring agencies who could benefit from trading cost or price considerations for technically superior capabilities. The business community also criticized government reliance on LPTA to purchase safety-related items; such items should not be purchased based on minimum standards.

In response to these criticisms, Congress included Section 880 in the Fiscal Year (FY) 19 National Defense Authorization Act (NDAA), stating: “[i]t shall be the policy of the United States Government to avoid using lowest price technically acceptable source selection criteria in circumstances that would deny the government the benefits of cost and technical tradeoffs in the source selection process.”

Keep reading this article at: https://www.mondaq.com/unitedstates/government-contracts-procurement-ppp/1034008/you-get-what-you-pay-for-new-final-rule-limits-use-of-lpta

See Jan. 14, 2021 Final Rule affecting LPTA at: https://www.govinfo.gov/content/pkg/FR-2021-01-14/pdf/2020-29087.pdf

Filed Under: Uncategorized Tagged With: best value, best value continuum, FAR, FAR Council, final rule, lowest price, lowest price technically acceptable, LPTA, NDAA, negotiated price, past performance, quality, service contracts, source selection, technical requirements, trade off, tradeoff, value

February 11, 2021 By cs

A reminder of the key provisions of the FY21 National Defense Authorization Act

Each year, Congress presents us in Title VIII of the National Defense Authorization Act (NDAA) a potpourri of procurement reforms, changes, and additions.

Some are effective immediately, while some are bound for rulemaking and regulation and surface years from enactment.

Some require analyses, reports, and studies which have no immediate impact but provide a roadmap that can and should be used by government contractors in their business planning.

Finally, some provisions of the NDAAs just wither away and have no impact whatsoever.

Nineteen days before the Trump Administration ended, the U.S. Senate followed the U.S. House of Representatives in overriding the President’s veto of the William (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021 (H.R. 6395) (FY2021 NDAA), making it law on January 1, 2021.  As for its Title VIII, the FY2021 NDAA is no different from its predecessors in its procurement potpourri.

Here’s a tour of key provisions you oughta know.

Keep reading this article at: https://www.jdsupra.com/legalnews/here-to-remind-you-of-the-key-2306320/

Filed Under: Government Contracting News Tagged With: acquisition reform, commercial item, cost and price, cost and price analysis, cost and pricing, Defense Industrial Base, domestic content preference, industrial base, innovation, NDAA, OTA, other transaction agreements, procurement reform, small business, subcontracting

January 28, 2021 By cs

8(a) participants to receive one-year extension through COVID-19 bill

Congress has included in the new COVID-19 relief bill a one-year extension of the term for participation in the 8(a) Program.

Under the provision, any small business concern participating in the 8(a) program on or before September 9, 2020 may “elect to extend such participation by a period of 1 year.”

This is good news, especially for those concerns in their last year of viability in the 8(a) program who may have felt shortchanged from COVID’s effects on the economy.

This provision is found under Section 330 of the “Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act” (Division N, Title III of the “Consolidated Appropriations Act, 2021”).  The Consolidated Appropriations Act, 2021 was passed on December 27, 2020.  If you’re trying to find it, it’s at page 2183 of the 5593-page (!) law.

Keep reading this article at: https://smallgovcon.com/8a-program/8a-participants-to-receive-one-year-extension-through-covid-19-bill/

Filed Under: Government Contracting News Tagged With: 8(a), budget, COVID-19, NDAA, SBA, small business

January 5, 2021 By cs

More guidance on contracting prohibition with entities using telecom equipment and services

Federal agencies, particularly the General Services Administration (GSA), continue to publish guidance relating to the prohibitions of Section 889 of the FY 2019 National Defense Authorization Act (NDAA).

Section 889 prohibits the federal government from obtaining, and federal contractors from using, certain telecommunications equipment and services offered by Chinese companies, such as Huawei and ZTE.  Previous posts on Section 889 are available here, here, here, and here.

More recently, GSA published a series of resources for federal contractors, including webinar slides and an updated Frequently Asked Questions (FAQ) guide to provide details regarding GSA’s implementation of Section 889.

These resources give federal contractors insight into GSA’s strategy for implementing Section 889, and they help to resolve some of the ambiguities and administrative uncertainties contained in the interim rule.

Read some of the highlights from these resources at: https://www.mondaq.com/unitedstates/government-contracts-procurement-ppp/1013820/more-gsa-guidance-on-section-88939s-prohibition-on-contracting-with-entities-using-certain-telecommunications-equipment-and-services

Filed Under: Government Contracting News Tagged With: China, Chinese firms, GSA, Huawei, NDAA, prohibited activity, Section 889, telecommunications, ZTE

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