This briefing covers active market intelligence, regulatory guidelines, and tactical capture recommendations for federal and defense contractors pursuing opportunities in this procurement classification.
Late last month, Congress enacted and the president signed the 2016 National Defense Authorization Act (Pub L. No. 114-92) and, as has been the case with the annual National Defense Authorization Acts in recent years, the 2016 version contains several provisions that tweak the Small Business Administration’s government contracting programs and rules.
Nonmanufacturer Rule Clarification
The 2016 NDAA amended the nonmanufacturer rule (15 U.S.C. § 637(a)(17)) to clarify that the NMR applies only to contracts that are principally for supplies and that it does not apply to those contracts that are primarily for services or construction but that also may have a supply component. The upshot of this change is that small businesses will find it easier to bid on services and construction contracts as they will not need to meet the requirements of the NMR for these types of contracts. This clarification follows a virtual tug-of-war between the Court of Federal Claims and the SBA regarding the scope and the meaning of the NMR, principally focusing on the issue of whether the NMR applied only to contracts that were primarily supply contracts or whether it also applied to contracts with mixed supply and services components.
Read more: How 2016 NDAA Changes Small Business Gov’t Contracting
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