Provisions in the FY19 NDAA impacting government contractors

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Eric Crusius, partner at Holland & Knight, details important provisions in the NDAA that contractors should know about, and why changing commercial definitions will help both the government and contractors.


While the National Defense Authorization Act is already law, the money to fund its provisions won’t be allocated until after Labor Day. The NDAA features many changes to acquisition that the vendor community should be aware of as they begin their plans for FY19. Eric Crusius, partner at Holland & Knight, says that the changes include raising the micropurchase threshold, and changing the definitions of commercial items.

 

“What they are trying to do is separate services from products. Commercial item definition, as the Section 809 Panel pointed out, has been a little bit messy. There’s different definitions throughout the statutes and the FAR,” Crusius said. “This will institutionalize and standardize that definition and make one for services and one for products. That’s tremendous because products and services are quite different. Having those different definitions will help the government and contractors determine if something is a commercial service or not.”