2013 - Defense Authorization Act - Small Business Contracting Reform Signed Into Law

Notable Contracting Provisions In The NDAA:
• Enforces existing small business contracting goals by requiring that meeting the goals be a part of senior agency employee reviews and bonus discussions. The federal government has missed the 23% small business goal for six consecutive years.
• Changes limitations on subcontracting from cost to price, which will make it easier for small businesses to comply with procurement rules, while also allowing them to team together to pursue larger contracts.
• Prevents contracting fraud by placing penalties on violating limitations on subcontracting, and makes it easier to suspend and debar companies intentionally defrauding the government.
• Helps woman-owned small contractors by removing the set-aside caps on the women’s contracting program.
• Requires the SBA to develop size standards that accurately define what is a small business for each of the over 1100 industries where small firms operate, instead of allowing SBA to continue taking short cuts for its own administrative convenience.  
• Gives small business a “safe harbor” if they acted on a written advisory opinion from either a Small Business Development Center or Procurement Technical Assistance Center and violated a rule by mistake. 
• Brings transparency to insourcing decisions by requiring OMB and agencies to publish procedures, methodologies, and guidance documents associated with the decisions.
• Fights contract bundling, the practice of grouping several contracts together for bidding, thereby making it difficult for small businesses to compete. The law requires additional oversight and a report that will analyze whether contract bundlings are justified.