NDAA for FY 2021 Will Include Numerous Provisions Affecting Acquisition Programs and Cybersecurity Requirements

NDAA for FY 2021 Will Include Numerous Provisions Affecting Acquisition Programs and Cybersecurity Requirements

October 2020


Congress is currently negotiating the final version of the National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2021, which sets funding levels and outlines policy priorities for the U.S. Department of Defense (DOD). Given the law’s size and scope, it is not surprising that the U.S. House and Senate versions of the FY21 NDAA address many areas of importance to government contractors, including acquisition policy and management, supply chain and industrial base matters, cybersecurity, and small business issues. Among other important proposed developments, these bills would expand transparency and reporting requirements for contractors, repeal a pilot program that required large contractors to reimburse DOD for the cost of responding to unsuccessful bid protests, expand the industrial base for certain industries and types of products, and implement numerous provisions from the Cyberspace Solarium Commission Report.


This article summarizes by topic the most relevant proposed provisions for government contractors, and their effect if enacted into law. Provisions in the House and Senate versions often evolve or fall out of the consolidated version of the NDAA that emerges from conference, so it is likely not all of these proposals will be included in the final law.


  • House Bill

  • Acquisition Policy and Management


  • Modification to the Definition of Nontraditional Defense Contractor (Sec. 802): Under 10 U.S.C. § 2371, DOD could exercise its Other Transaction Authority (OTA) for a prototype project when there is at least one nontraditional defense contractor (defined in 10 U.S.C. § 2302) or nonprofit research institution participating in the project. This provision would expand the definition of “nontraditional defense contractor” to include a corporation whose stock is owned entirely by an employee stock ownership plan.

  • Alternative Space Acquisition System for Space Force (Sec. 807): This provision would direct DOD to d ..

    Support the originator by clicking the read the rest link below.