FY19 National Defense Authorization Act Includes Key Provisions Impacting Contractors

Arlington, Va. (Aug. 13, 2018) – PSC welcomed today’s presidential signing of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 (H.R. 5515), which includes key provisions impacting federal government contractors. 

“PSC applauds the leaders of the Armed Services Committees in finalizing this important legislation well in advance of the start of the federal fiscal year,” PSC president and CEO David Berteau said. “The final conference report recognizes the critical role that contractors play in the Defense Department’s mission success, and when implemented, many provisions will help ensure that the federal government purchases services in an effective and efficient manner.”

The NDAA authorizes national security funding and includes changes to acquisition policies for both the Department of Defense and the broader federal government. PSC was actively engaged on a number of key provisions that will impact the federal contractor community, including: 

Section 880: Imposes government-wide restrictions on the use of “lowest-price technically-acceptable” (LPTA) evaluation factors for complex professional or IT services, allowing federal agencies to have the flexibility necessary to seek and obtain innovative solutions, better outcomes, and ultimately the best value on behalf of taxpayers;
Section 878: Requires a government-wide, uniform definition of, and plan for measuring, Procurement Administrative Lead Time (PALT) to help ensure that agencies solicit and acquire goods and services from contractors in the most effective and efficient manner;
Section 852: Restores prompt payments to small business subcontractors who support the Department of Defense, continuing a critical life line for small businesses who work in the market; 
Sections 938, and 941-943: Initiates a number of reporting requirements for security clearances that will provide valuable information that Congress can use to craft new programs to reduce the backlog and wait times associated with government security clearances and make overall improvements to the process moving forward. 

The House passed the conference report by a 359-54 vote on July 26, and the Senate followed on August 1 by an 87-10 vote. PSC compiled a summary of provisions of importance to contractors.


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Media Contact: 
Ashlei Stevens
Director, Media Relations
703.875.8974 stevens@pscouncil.org  


About PSC: PSC is the voice of the government technology and professional services industry. PSC’s nearly 400 member companies represent small, medium and large businesses that provide federal agencies with services of all kinds, including information technology, engineering, logistics, facilities management, operations and maintenance, consulting, international development, scientific, social, environmental services, and more. Together, the trade association’s members employ hundreds of thousands of Americans in all 50 states. Follow PSC on Twitter @PSCSpeaks. To learn more, visit www.pscouncil.org.