Senate-Passed 2024 NDAA set to Raise DoD Set-Aside Sole-Source Contract Threshold Limits

Through an amendment to the Senate-Passed 2024 NDAA, the Department of Defense (“DoD”) sole source threshold for many socioeconomic set-aside programs would be increased significantly under the Senate-passed version of the 2024 National Defense Authorization Act. Also a method to adjust DoD sole-source thresholds for inflation would be created.

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Help on the Way? Proposed National Defense Authorization Act for 2023 Grants DoD Discretion to Allow Inflation Relief for DoD Contractors

The annual National Defense Authorization Act (NDAA), in essence Congress’ annual budget for the Department of Defense (DoD), commonly includes various riders and attachments that amend or create other federal laws. For example, the 2022 NDAA (finally) gave SBA’s Office of Hearings and Appeals the authority to hear appeals of HUBZone protests (something SBA just recently proposed a rule regarding), and the 2021 NDAA is why SDVOSB self-certification is ending and SBA is taking over the job of carrying out certifications from the VA (SDVOSB contractors, SBA will start accepting applications on January 9, 2023, as we discuss here.) The 2023 NDAA is no exception, and as it is currently proposed, the DoD would get a lot more discretion to help out its contractors in light of inflation.

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Friendly Inflation: SBA Adjusts Size Standards, Economic Disadvantage Limits, and 8(a) Sole Source Dollar Limits for Inflation

It probably doesn’t need to be said that all of us have been chafing under inflation lately, and federal contractors are certainly no exception. Rises in costs for goods and labor have exerted serious pressure on businesses and households worldwide. However, not all inflation is bad. SBA recently released a final rule taking into account the inflation of the past few years when it comes to the various receipts-based size-standards and economic disadvantage limits, as well as finally adjusting the 8(a) Business Development Program sole source limits. These changes are crucially important for those businesses that have just barely exceeded the applicable size standards, or that were getting close to the maximum. In this post, we’re going to explore this rule.

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