On Oct. 9, the U.S. Senate overwhelmingly passed (77-20) itsversion of the National Defense Authorization Act for FY 2026(NDAA). As AGC has previously reported, this year’s NDAA (H.R. 3838 /S.2296)places a strong emphasis on comprehensive acquisition reform. The House of Representatives passed its version on Sept. 10. The House and Senate will need to conference on a final NDAA bill. Some key provisions are listed below:
- Section 827 – Modifications to other transactions – Grants authority for DoD to use “other transactions” (OTAs) for military construction and repair projects.
- Section 834 – Assumption of Uninsurable Risk – Provides DoD coverage for contractors who cannot secure insurance for classified work
- Section 867 – Reform of contractor performance information requirements – Among other things allows only negative events on CPARS ratings.
- Section 2823 – OTA Pilot for Unaccompanied Housing Project – Allows OTAs to prototype an unaccompanied housing project.
While no date has been set, AGC expects the House and Senate to conference by Thanksgiving, with a final vote likely sometime in December. Congress has passed the NDAA for 64 consecutive years, and it is considered must-pass legislation. That is why AGC is taking seriously any attempt to add harmful construction policy to it. AGC will continue to advocate for contractor priorities as the House and Senate reconcile their versions of the NDAA.
For more information, contact Jordan Howard at Jordan.Howard@agc.org or (703) 837-5368.