NCAI Opposition to Sec. 842 of H.R. 4909, the National Defense Authorization Act for Fiscal Year 2017

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May 26, 2016

Chairman John McCain
Senate Armed Services Committee
U.S. Senate
228 Russell Senate Office Building
Washington, DC 20510

Ranking Member Jack Reed
Senate Armed Services Committee
228 Russell Senate Office Building
Washington, DC 20510

RE: NCAI OPPOSITION TO SEC. 842 OF H.R. 4909, THE NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2017

Dear Chairman McCain and Ranking Member Reed:

On behalf of the National Congress of American Indians (NCAI), the oldest, largest, and most representative organization of American Indian and Alaska Native tribal governments, I write to express our opposition to the inclusion of Sec. 842, “Modifications to the Justification and Approval Process for Certain Sole-Source Contracts for Small Business Concerns”, in H.R. 4909, the National Defense Authorization Act for Fiscal Year 2017.

During the House Armed Services Committee Markup of H.R. 4909 on April 27, 2016, Amendment Log 297 was accepted as part of En Block Package #2 and sought to repeal Sec. 811 of the 2010 National Defense Authorization Act (P.L. 111- 17 84; 123 Stat. 2405; 41 U.S.C. 3304 note). Upon adoption, Amendment Log 297 became Sec. 842 of H.R. 4909 and was passed by the House of Representatives on May 18, 2016.

While NCAI, along with our partners, has raised serious concerns over Sec. 811 of the 2010 NDAA, we do not support Sec. 842 of H.R. 4909 because it does not equitably address Sec. 811 issues. Sec. 811 of the 2010 NDAA has placed significant burdens on Native 8(a) contractors, which has led to reductions in contracts awarded to Native American contractors in excess of $20 million. However, Sec. 842 of H.R. 4909 removes the five step justification and approval process established for direct awards above $20 million to Native 8(a) businesses and instead replaces it with the twelve step justification and approval process codified under FAR 6.303-2(b) of the Competition in Contracting Act.

The Native 8(a) program was created to promote tribal self-determination and self-sufficiency through business development. However, Sec. 842 of H.R. 4909 would be detrimental to the growth of Native 8(a) businesses because it would unfairly elevate them to compete with multibillion dollar corporations. NCAI respectfully requests that Sec. 842 of H.R. 4909 not be included in the Senate version of the NDAA and in any further considerations.

Sincerely,
Jacqueline Pata
Executive Director
National Congress of American Indians