2021 NDAA: 8(a) Program Can Be Extended By 1 Year for Some
Last week, the Senate and House Armed Services Committees reached a bicameral agreement on the 2021 National Defense Authorization Act ("NDAA"). Notably, the 2021 NDAA not only creates an SBA SDVOSB certification requirement (discussed here) but also extends the 8(a) program by one year for some program participants.
Section 869 of the 2021 NDAA Conference Report provides the following:
The Administrator of the Small Business Administration shall ensure that a small business concern participating in the program established under section 8(a) of the Small Business Act (15 U.S.C. 637) on or before September 9, 2020, may elect to extend such participation by a period of 1 year, regardless of whether such concern previously elected to suspend participation in such program pursuant to guidance of the Administrator.
Takeaway
Many small business government contractors had a challenging 2020, as the COVID-19 pandemic impacted numerous government procurement efforts. This NDAA provision is welcome news for some 8(a) businesses because it will allow them to "elect to extend" their 8(a) program participation by one year. That said, the NDAA, of course, needs to pass the full House and Senate before heading to the President’s desk. But, even if some NDAA language changes, this section will likely survive.
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