2020 NDAA: Space Activities and Space Corps

As you may be aware, the 2020 National Defense Authorization Bill (H.R. 2500) recently made its way through the House Committee on Armed Services. With some space-centric NAICS codes, such as 517410 (Satellite Communications), seeing a 134%+ increase in small business participants in the last decade, how the U.S. approaches the final frontier should be on the mind of many small business government contractors. It definitely was on the mind of the Committee on Armed Services.

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Draft 2020 NDAA Changes Mandatory DoD Debriefings and Permanently Authorizes DoD Mentor-Protégé Program

On June 11, the House Armed Services Committee published its draft of the 2020 National Defense Authorization Act (NDAA), which was updated June 19. Among other proposed sections impacting small business contractors which will be discussed in future blog posts, the draft reduces the monetary threshold for comprehensive Department of Defense debriefings and renews the DoD’s Mentor-Protégé Program.

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SBA Issues Proposed Rule Implementing Small Business Runway Extension Act

On Monday, June 24, SBA will issue its long-awaited proposed rule implementing the Small Business Runway Extension Act. We intend to explore the proposed rule and the accompanying commentary more fully over the next few days (as we have been doing over the past few months), but we wanted to provide a quick update to our readers on the main changes in the proposed rule.

The key takeaway is that, once the rule is in place, SBA size standards will be based on a 5-year average. SBA “proposes to change its regulations on the calculation of annual average receipts for all receipts-based SBA size standards and other agencies’ proposed size standards for service-industry firms from a 3-year averaging period to a 5-year averaging period.”

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GSA Announces Plans to Consolidate MAS Contracts and Asks for Industry Feedback

The General Services Administration is conducting market research for its planned consolidation of the Multiple Award Schedule (MAS) Program. Earlier this month, GSA publicly announced the new single solicitation format, including streamlined terms and conditions, and its intention to collect feedback from government contractors in the industry. According to GSA, the consolidation is part of its two-year modernization process for the program that began in November of 2018. The consolidated MAS solicitation is scheduled for release later this year. And if you have concerns or suggestions for GSA on this significant consolidation, there is still time for your input.

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Senate Highlights Decline in Number of Small Businesses Getting Federal Contracts

Recently, a member of the Senate Committee on Small Business & Entrepreneurship called for increased small business participation in federal contracts during a hearing on the SBA’s contracting programs. Senator Ben Cardin based his concern on a recent report showing that the number of small businesses with federal contracts was at a 10-year low.

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Runway Extension Act: Return of the SBA

Congress and the SBA continue to disagree about the timing for the implementation of the Runway Extension Act (conveniently allowing my Star Wars references to continue).

SBA recently provided testimony before the U.S. Senate Committee on Small Business & Entrepreneurship. Senator Marco Rubio called the hearing to address, among other things, why the “SBA has refused to follow the Runway Extension Act.” (We have wondered the same thing.)

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DoD Proposes Updating DFARS With 15-Day “Prompt Payment” Rules

The Department of Defense awarded contracts to an average 30,806 small businesses each year in fiscal year 2016, 2017, and 2018. A proposed rule to update the DFARS may lead to these same businesses receiving payments from the government, or prime contractors, within 15 days of invoicing.

The proposed rule is found at 84 FR 25225. It was published on May 31, 2019 and comments close on July 30, 2019 if you’d like to put in your two cents.

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