DoD Budget & Policies - How They Affect Your Business

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Presentation transcript:

DoD Budget & Policies - How They Affect Your Business How many follow budget and other legislation? Do you think this is important? How many had contract awards delayed this past year? June 28, 2018

Constitutional Foundation Congress has the Power of the Purse Article I § 9 - “[n]o Money shall be drawn from the Treasury but in Consequence of an Appropriation made by Law “The established rule is that the expenditure of public funds is proper only when authorized by Congress, not that public funds may be expended unless prohibited by Congress.” United States v. MacCollom, 426 U.S. 317 (1976) Contracts not awarded until Congress passes, President signs and Agency receives funds

Congressional Approval Two bills comprise the Congressional Process Appropriations Bills provide budget authority or the ability to obligate funds Authorization Bills authorizes the use of funds for specific programs consistent with conditions. May also include statutory revisions, requirements on the agency, or other restrictions. Each agency has different bills with DoD having the most complex Omnibus National Defense Authorization Act (NDAA) Congress passes and the President signs Fiscal matters are complex and not part of scope – know that the funding rules may impact your contracts especially if high visibility or new programs

Budget Process Executive Branch submits budget each year 5 Year Plan Informs about agency priorities and programs Congress debates Legislative history is public and informs about purpose of each change Following the Budget Process Can Help You Predict What the Government Will Buy, When and Any High Policy Priorities

2018 NDAA - Examples Acquisition Procedures: threshold changes, audit processes, and bid protests Small Business: HUBZone designations, Phase III SBIR/STTR sole source, and impacts of multi-award contract Supply Chain: enhanced supply chain scrutiny and strengthening manufacturing industry Aerospace: SMC Responsibility and launch modernization

2019 NDAA - Drafts House and Senate passed initial drafts of the 2019 NDAA - https://www.congress.gov/bill/115th- congress/house-bill/5515/text. Provides insight about focus areas. If language concerns your business, contact your representative. Senate 863 – program to improve manufacturing Senate 1602 – redesignates EELV to include reusable rockets House 220A – requires DoD to create database of innovators House 851 – revises DoD small business strategy

What Can You Do? Learn and Become Active Engage with Your Representatives Help Them Understand Why an Issue Matters to Their District https://www.govtrack.us/congress/members/CO Reach Out to Other Business Owners Individuals Trade Associations

Karri L. Palmetier Karri@palmetierlaw Karri L. Palmetier Karri@palmetierlaw.com (303) 697-8914 (317) 397-7344 www.palmetierlaw.com Karri Palmetier @PalmetierLaw