Small Business Sections in the FY 2025 National Defense Authorization Act

Published: January 15, 2025

Federal Market AnalysisDEFENSENational Defense Authorization ActPolicy and LegislationProcurementSmall Business

This year’s NDAA could have offered more to small businesses.

Last week’s post took a look at provisions in the National Defense Authorization Act for Fiscal Year 2025 that concern the federal government’s use of cloud technology. This week’s post shifts the focus to FY 2025 NDAA sections that deal with small business. The draft versions of the NDAA contained many such sections, several of which did not make it into the final legislation. These include sections that

  • Amended contracting authority for small business concerns.
  • Detailed the so-called Small Business Subcontractor Utilization Act of 2024.
  • Trained the federal acquisition workforce to increase contract awards for certain types of small businesses.
  • Increased the number of contracts awarded to small business concerns.

Instead, the final version of the FY 2025 NDAA contains the following small business-related sections:

Sec. 872 – DOD Pilot Program for Preliminary Calculation Estimates for Certain Programs. This section amends Section 9 of the Small Business Act by ordering the Secretary of Defense to conduct a budget pilot that calculates the DOD’s total expenditures on Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs.

Sec. 873 – Boots to Business Program. This section requires that the DOD Transition Assistance Program provide entrepreneurship training to military personnel transitioning from active service to civilian life. The goals of the Boots to Business Program are to provide assistance and in-depth training to covered individuals interested in business ownership; and provide covered individuals with the tools, skills, and knowledge necessary to identify a business opportunity, draft a business plan, identify sources of capital, connect with local resources for small business concerns, and start a small business concern.

Sec. 874 – Pilot Program for Access to Shared Classified Commercial Infrastructure. This section instructs the Secretary of Defense to establish a pilot program on streamlining access for small business concerns, nontraditional defense contractors, and institutions of higher learning to shared classified commercial infrastructure. This section will make it easier for small businesses to participate in work being carried out on Secret and Top Secret programs.

Sec. 875 – Accessibility and Clarity in Covered Notices for Small Business Concerns. This section requires that covered notices, such as business opportunity announcements, must be written in a manner that small business owners can easily understand; that is clear, concise, and well-organized; and that follows other best practices appropriate to the subject or field of the covered notice and the intended audience of the covered notice.

Sec. 876 – Small Business Bill of Rights. Included in the draft versions of the bill, this section made it into the final version. It requires the Department of Defense (DOD) to develop and adopt a Small Business Bill of Rights, the purpose of which is to ensure that “customer service issues and conflicts related to acquisitions are resolved in an expeditious manner at the lowest level possible, increasing the likelihood that small businesses continue to conduct business with the Department, and ultimately fostering a healthier partnership with the defense industrial base.” The Bill of Rights gives DOD small business professionals the authority to coordinate customer service issues with defense acquisition officials, obtain timely responses, and establish a resolution process that all DOD components must adhere to.