Senate Committee Releases Annual Defense Bill

Billions of Dollars for Military Construction Projects

The Senate Armed Services Committee released its version of the National Defense Authorization Act for FY 2021(NDAA). The defense bill authorizes $8.15 billion for military construction, $955 million provides for previously unfunded military construction requirements, and focuses on the facility sustainment backlog. The Senate NDAA also prohibits Department of Defense (DOD) from conducting additional base realignments and closures in fiscal year 2021. Some notable provisions in the FY2021 NDAA that are important to AGC members include:

  • Sec. 842 – Making applicable Truth in Negotiations Act threshold for DOD contracts if the price of the contract, including a subcontract, is expected to exceed $2,000,000.
  • Sec. 864 - Repeals the pilot program from FY2018 NDAA that would require payment of costs for denied Government Accountability Office bid protests.
  • Sec. 871 – Further strengthening prompt payment of small business DOD contractors.
  • Sec. 893 – Repeal FY2020 NDAA section that would require military construction contractors to make a good faith effort to have twenty percent of the project workers as qualified apprentices.

AGC will continue to monitor and advocate policy reforms in the NDAA as it works its way through the Senate and House of Representatives.

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