House-Passed 2022 NDAA Raises Small Business Goal to 25% and Increases SDVOSB, HUBZone, SDB and WOSB Goals

The version of the 2022 National Defense Authorization Act passed by the House of Representatives on September 23 would increase the government’s small business prime contracting goal from 23% to 25%.

The House-passed version of the 2022 NDAA would also increase the prime contracting goals for service-disabled veteran-owned small businesses, HUBZone small businesses, small disadvantaged businesses, and women-owned small businesses.

During floor debate over the NDAA, the House adopted an amendment offered by Representative Kweisi Mfume of Maryland. Representative Mfume’s amendment calls for the following increases in small business goals:

Small Business23%25%
SDB (including 8(a))10%15%
HUBZone 3%4%

If the House bill became law, the new small business, HUBZone and SDVOSB goals appear to kick in immediately. The new SDB goal is phased in over four years, ultimately reaching 15% in Fiscal Year 2025. The new WOSB goal phases in over three years, reaching 7 percent in FY 2023.

Unlike many other amendments, which were adopted overwhelmingly, the vote on the Mfume amendment was nail-bitingly close: it passed 219 – 207. The final NDAA, though, passed with bipartisan support on a 316 – 113 vote.

It is important to note that even though the House has adopted these increased goals, they are not yet law. The debate over the 2022 NDAA now moves to the Senate, and the question of whether to increase the goals ultimately could be answered by a House-Senate conference committee.

My colleagues and I here at Koprince McCall Pottroff LLC will keep you updated on the progress of this legislation.

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