On July 15, the House of Representatives’ Armed Services Committee began marking up its version of the National Defense Authorization Act for FY 2026, H.R. 3838. The NDAA sets out the budget for the Department of Defense and this year’s bill places a strong emphasis on comprehensive acquisition reform. Some key provisions are listed below:
- Section 312 – PFAS Reporting – Requires the DoD to include detailed cost information about PFAS investigation and remediation efforts in its annual environmental report.
- Section 802 – Assumption of Uninsurable Risk – Provides DoD coverage for contractors who cannot secure insurance for classified work
- Section 2801 – Other Transaction Authority – Grants permanent authority for DoD to use “other transactions” (OTAs) for military construction and repair projects.
- Section 2804 – Progressive Design-Build Authority – Authorizes DoD to use progressive design-build methods.
- Section 2805 – Modular Construction Requirements – Directs DoD to consider modular construction for projects with protective design features.
- Section 2806 – Multiyear Contracting for housing and childhood centers – Authorizes multiyear contracting for unaccompanied housing and child development centers if cost savings are validated and standardized designs are used.
- Section 2826 – Review of UFC – Directs GAO to assess whether UFC imposes burdens beyond commercial standards and identify areas for potential cost reductions and efficiency improvements.
- Section 2827 – Cost Premium Reporting – Requires an annual report identifying causes of cost premiums in military facility construction, aimed at aligning MILCON more closely with private-sector practices.
Last week, the Senate’s Armed Services Committee finished marking up its version of the bill. The Senate holds closed markups, in contrast to the more open process followed by the House of Representatives. It is expected that much of Chairman Roger Wicker’s FoRGED Act will be included.
Congress has passed the NDAA for about 65 consecutive years and it is considered must-pass legislation, which is why AGC takes any attempt to add harmful construction policy to it very seriously. AGC will continue to advocate for contractor priorities as the House and Senate conference their versions of the NDAA.
For more information, please contact Jordan Howard.