Impact of FY19 NDAA negotiations on government contractors

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Eric Crusius, partner at Holland & Knight, discusses some provisions in the 2019 NDAA that could affect how defense contractors do business, and talks about developments with GSA’s e-commerce portal.


As conferencing begins in the House and Senate to consolidate both versions of the 2019 National Defense Authorization Act, defense contractors are looking for provisions that could impact their business. Eric Crusius, partner at Holland & Knight, says that companies should be aware of possible changes to purchasing.

 

“One really important area for contractors is the micro-purchase threshold for DoD is going to be raised from $5,000 to $10,000. That allows a lot of commercial companies to sell lower priced items to the federal government without having the burdens of those regulations on them. The right now the [non-DoD] agencies have the ability to sell up to $10,000 on that micro-purchase threshold, but DoD is kind of stuck at the $5000 mark… Since it’s in both versions I see the conferenced version having the $10,000 limit as well,” said Crusius. “The companies that don’t sell everything to the DoD space but commercial companies that happen to sell to the federal government are most benefited by having that limit raised. Then they can sell higher priced products without having to worry about compliance programs and things like that.”