Every year, the National Defense Authorization Act (NDAA) outlines the defense policy and budget priorities for the Department of Defense (DoD). In many ways, it greatly affects all the individuals and organizations related to government contracting. So let’s see what all opportunities there are for government contractors with the new NDAA 2023 budget and goals.
Background About NDAA
NDAA has been an important ritual for more than six decades. It’s an annual occurrence of end-of-year legislation in Congress. Like every year, this year, on December 23, 2022, President Biden signed the National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2023. Moreover, it has $858 billion in defense spending.
The various budget and defense policies concerning the Department of Defense (DoD) can affect the federal procurement policy in many ways. It highlights many subjects which may give great opportunities to federal contractors.
Highlights of NDAA 2023
You can reach new opportunities in 2023 with government contracting by exploring the NDAA 2023. Some of its highlights are:
Technology Investment
It focuses on technology by giving $200 million for investments in aircraft technology, electronic warfare, and 5G technology development. Also, there is a $100 million Defense Advanced Research Projects Agency’s quantum computing and artificial intelligence agendas. Moreover, there is an allotment for bio-industrial manufacturing units to strengthen national security and protect fragile supply chains.
Semiconductor Prohibition
The NDAA 2023 orders federal organizations from procuring, receiving, or restarting contracts for electronic parts, products, or services that include “covered semiconductor products or services ‘. These highlight specific Chinese companies like SMIC, CXMT, YMTC, or their subsidiaries.
Cybersecurity
The NDAA 2023 also lays great emphasis on cybersecurity. Therefore, it highlights an increase of $10 million to support cyber consortium seedling funding. Plus, there is an increase of $20 million for DARPA’s enhanced non-kinetic/cyber modeling and simulation activities. Finally, it requires regularly conducting high-level cybersecurity assessments for enhanced security.
Federal Risk and Authorization Management Program
This rule highlights the FedRAMP Authorization Act, which creates a “presumption of adequacy.” Also, it has the Federal Secure Cloud Advisory Committee for FedRAMP and the acquisition of cloud services.
Supply Chain/Stockpile
The NDAA allows $1 billion for the National Defense Stockpile to cultivate strategic and necessary materials to meet defense, industrial, and essential civilian needs. In addition, it requests all the concerned individuals to provide an annual briefing on shortfalls, materials, and other details.
Clean Energy
NDAA 2023 aims to make the department greener with clean energy. For example, by 2023, the vehicles must be electric or zero-emission. The steps taken are great for the environment and concerned contractors.
Inflation
To deal with coming inflation, NDAA is supplying brief power to alter the terms and conditions of a contract or the opportunity to qualify for an economical price adjustment for firm-fixed-price type contracts until December 31, 2023.
All these new official changes affect contractors in many ways. It keeps you updated with new policies, benefits, the budget, and more. Similarly, FAR regulation affects contractors in many ways. So, stay tuned for all the updates.
