The US House of Representatives approved the National Defense Authorization Act (NDAA) for fiscal year 2015 late last week, sending the bill to the Senate for further consideration. Buried within the massive annual spending bill's more than 700 pages were some contracting provisions that NACM has argued could greatly benefit subcontractors and materials suppliers.
After previously emerging from the House Armed Services Committee earlier this month, the NDAA, numbered H.R. 4435, moved on to the Senate with provisions from H.R. 776, the Security in Bonding Act, intact. The included provisions would, according to the Security in Bonding Act's original sponsor Rep. Richard Hanna (R-NY), amend the Federal Acquisition Regulation (FAR) to expand the licensing prerequisites that currently only apply to corporate sureties to so-called individual sureties as well, requiring "non-corporate sureties to pledge specific and secure assets as required from others providing collateral to the federal government" and requiring that "those assets be held by a government entity to ensure payments can be made in the event they are needed."
NACM endorsed H.R. 776 earlier this year when it was first under consideration in the House Small Business Committee, and will continue to monitor the NDAA's progress through the Senate. For more on this story, check out tomorrow's edition of NACM's eNews.
- Jacob Barron, CICP, NACM staff writer