This week, Congress passed its $874.2 billion defense policy bill, better known as the National Defense Authorization Act (NDAA). This highly anticipated bill sets the funding and policy agenda for the Department of Defense (DoD) for Fiscal Year (FY) 2024. The DoD is currently operating under a stopgap funding bill, barring the agency from starting most new initiatives or moving forward with many acquisitions, so once signed by President Biden, this bill will enact a series of significant changes within the DoD.
While there are many initiatives and budget updates within this bill, we’re going to focus on some of the most impactful changes for Veteran-Owned businesses, especially small businesses. Here’s what you need to know.
The NDAA is Removing Self-Certification for Veteran-Owned Businesses
Within the NDAA for FY 2024, there’s an amendment stating that Veteran-Owned Small Businesses (VOSBs) and Service-Disabled Veteran-Owned Small Businesses (SDVOSBs) who self-certify cannot count toward the federal government’s target for how much contracting dollars are allocated to these small businesses. In other words, if you self-certify as a VOSB or SDVOSB, you will not be formally recognized as being Veteran-Owned when it comes to set-aside contracts, specialized government programs, resources, etc.
This amendment was added to disincentivize federal agencies from awarding contracts to businesses that are not going through the process of being certified through the Small Business Administration (SBA). When the certification process was recently moved from the Department of Veterans Affairs (VA) to the SBA, making it less redundant and more straightforward, it did not fully remove the ability to self-certify. The SBA was still allowing self-certified businesses to count toward the federal government’s small business contracting goals.
So, what’s next for VOSBs and SDVOSBs? Let’s discuss what you can do to certify or re-certify to take advantage of these federal contracting dollars.
Certifying as a VOSB or a SDVOSB
If you are already certified through the VA, your certification was automatically transferred to the SBA and will remain active under the end of your current certification period. Once that ends, you can apply for re-certification through the SBA Veteran Small Business Certification (VetCert) which we’ll cover below.
If you have been relying on self-certification in the past, or are up for re-certification, you’ll want to first make sure you are registered in SAM.gov, or their registration is up to date. The VetCert process pulls your SAM record in, so it’s important this is updated and accurate. Next, you’ll want to visit the visit the VetCert webpage and register, following the questionnaire. It will walk you through all the steps to complete your certification successfully.
Alternatively, if you are new to the world of government contracting and are wondering if you qualify as a VOSB or SDVOSB, check out our blog.
The NDAA is Raising the Contracting Dollar Goal for Veteran-Owned Small Businesses
Another provision of the defense policy bill is to increase the Department of Defense’s goal of how many contracting dollars go to Veteran small businesses from 3% to 5%. Every year, federal agencies report on what their spending goal percentage is for small businesses, to increase competition and opportunities for small business contractors. For a chart on the past spending goals for the DoD broken down by small business set-asides, check out this site.
Additional Updates in the NDAA for FY 2024
Let’s review some of the other aspects of the NDAA for FY 2024 that may impact you as a contractor. Arguably one of the most reported on changes is the 5.2% pay increase for service members and DoD civilian employees. As far as budget goes, the FY24 NDAA authorizes $100 million for the Air Force to begin a limited number of new programs. Additionally, the bill expands the list of munitions eligible for emergency and multiyear procurement authorities and institutionalizes a sea-launched cruise missile nuclear program at the Defense Department and National Nuclear Security Administration.
Taking Advantage of Your Small Business Designation
When the NDAA is officially signed and enacted into law, you’ll want to make sure you are prepared for these changes so you can take full advantage of the increased federal contracting dollars. The government works to prioritize small business spending, so it’s important you are going through the steps of becoming certified to get access to small business support programs, resources, and set-aside contracts.
If you want to learn more about small business spending in the federal government, check out our blogs SDVOSB Federal Contracting Landscape and Breaking Down GSA Schedule Small Business Sales. If you need help managing your GSA Schedule to go after opportunities, or need help certifying as a VOSB and SDVOSB, feel free to reach out to our expert consultants today.
