NDAA_FY26_Acquisition_Policy_and_Reform_Highlights.pdf

Transcript

1. NDAA FY26: Acquisition Policy and Reform Highlights May 28, 2026
2. NDAA FY26: Acquisition Policy and Reform Highlights Event Agenda 5:30 - 6:00 PM - Networking/ Light Snacks 6:00 - 6:30 PM - NDAA FY 26 Acquisition Reform Highlights Presentation and Discussion 6:30 - 7:30 PM - Continued Discussion/Networking
3. Introduction Acquisition Reform Background and Objectives The Newly Coined “Portfolio Acquisition Executive” 02 04 01 Best Value Redefining Best Value for Comprehensive Defense Solutions PAE 03 New Thresholds Updates to the COPD and CAS Coverage Thresholds Cybersecurity 05 Harmonizing Cybersecurity Regulations GAO Protests 06 Withholding of Contract Payments During Frivolous Protests Presentation Agenda
4. Introduction 01 Acquisition Reform Background and Objectives
5. “[Q]uickly equipping warfighters with needed capabilities in the most cost- effective manner practicable.” Primary Objectives Relating to Defense Acquisition 01 — House Armed Services Committee “[O]ur nation must take action toward reindustrialization and work to rebuild the arsenal of democracy.” — Senate Armed Services Committee “[D]efense procurement system will now emphasize speed of delivery, production capacity, and innovation, revolutionizing the culture of Department’s acquisition activities.” — White House
6. Acquisition Objectives of NDAA FY 2026 Eliminate Statutory Barriers Prioritize Commercial Acquisition Expand the Defense Industrial Base Promote Portfolio Based Management 01
7. Best Value 02 Redefining Best Value for Comprehensive Defense Solutions FY 26 NDAA, § 1801
8. Best Value “the optimal combination of cost, quality, technical capability or solution quality, and delivery schedule.” Section 1801: Alignment of Acquisition with Armed Forces Needs 02
9. Redefining Best Value in Defense Acquisition Technical Capability or Solution Quality Cost Delivery Schedule Quality 01 02 03 04 02
10. PAE 03 The Newly Coined “Portfolio Acquisition Executive” FY 26 NDAA, § 1802
11. Section 1802: Establishment of Portfolio Acquisition Executive (PAE) Plans Program Execution Budgets Portfolio of Capabilities PAE 03
12. Section 1802: Establishment of Portfolio Acquisition Executive (PAE) Significance of PAEs for Defense Contractors Critical decision makers with knowledge of the government’s overarching mission Responsible for ensuring all activities are aligned with the macro-objectives Duties include engaging end users, conducting continuous, effective market research and integrating emerging technologies 03 PAE Program Managers Service Acquisition Executive
13. New Thresholds 04 Updates to the COPD and CAS Coverage Thresholds FY 26 NDAA, § § 1804, 1806, 1826
14. Section 1804: Adjustments to Certain Acquisition Thresholds $10M New Statutory Threshold for Submission of Cost and Pricing Data (COPD) Raised from $2M For contracts entered after June 30, 2026 Removes time consuming procedural hurdles 04
15. Section 1806: Matters Related to Cost Accounting Standards (CAS) $100M New, Higher Threshold for Full CAS Coverage Raised from $50M Certain contract-specific thresholds for mandatory CAS application also raised from $2M to $35M Exempts portions of contracts from CAS 04
16. Section 1826: Exemptions for Nontraditional Defense Contractors Certified COPD Exemption from providing certified COPD FAR 31 Exemption from the certain cost principles in FAR Part 31 SBs CAS Exemption for All Contracts with Small Businesses 04
17. Cybersecurity 05 Harmonizing cybersecurity regulations and Project Spectrum FY 26 NDAA, § § 866, 1807
18. Cybersecurity Harmonization & Project Spectrum Project Spectrum DoD Office of SB to establish digital access to cybersecurity related resources, including assistance for compliance with DoD’s Cybersecurity requirements Regulatory Harmonization Reduction in contract- specific cybersecurity requirements to reduce regulatory burden on DIB Section 866 Section 1807 05
19. GAO Protests 06 Withholding of Contract Payments During Frivolous Protests FY 26 NDAA, § 875
20. Section 875: Withholding Payments During GAO Bid Protests 5% Incumbents Filing Frivolous GAO Protests to Potentially Forfeit Contract Payments Incumbent protests dismissed for lack of “any reasonable legal or factual basis” Only applicable to protests involving DoD contracts, not civilian agencies Implement DFARS revisions by mid-June 2026 06
21. 1688 GAO Protests 380 In FY 2025 – lowest number of GAO protests filed since FY 2008 (excluding FY 2022) Decided on Merit FY 2025 GAO decisions either sustaining or denying the protest (386 in FY 2024) Effectiveness Rate FY 2025 and five-year average of GAO protests either sustained or voluntary corrective action by agency 52% 06
22. GAO Protests Statistics 2025 2024 2023 2022 Cases Filed 1688 1803 2025 1658 Decided on Merit 380 386 608 455 Effectiveness Rate 52% 52% 57% 51% 06
23. Alternative Avenues for Protesters COFC Protests at the U.S. Court of Federal Claims Agency Agency level protests at the DoD GAO Withdrawal Protesters may elect to withdraw their GAO protest before a decision is made on a request for dismissal 06
24. Founder TILLIT LAW PLLC Craig Barrett, Esq. Member, Board of Advisors TILLIT LAW PLLC Sareesh Rawat, Esq.
25. (240) 338-2263 srawat@tillitlawfirm.com tillitlawfirm.com govconfeaturedinsights.com Thank you.