On December 20, 2019, President Trump signed the fiscal year 2020 (FY20) National Defense Authorization Act (NDAA) into law (Pub. L. 116-92). The NDAA, Congress’ annual defense policy bill, is a critical piece of legislation for the contracting community because it provides the funding authority for programs and activities of the Department of Defense (DoD), the largest procurer of goods and services within the US government. In addition, the NDAA is a vehicle for encouraging in some cases, and requiring in others, changes to both DoD and government-wide procurement practices. Therefore, it is critical for the contracting community to understand the provisions of the enacted NDAA.
Budget/Funding
The NDAA provides $738 billion in topline funding for the DoD, defense-related programs of the Department of Energy, and defense-related activities of other federal agencies, with a base budget of nearly $660 billion and an additional $71.5 billion in funding for overseas contingency operations. In total, the FY20 NDAA authorizes an increase of nearly $25 billion in national defense topline funding in comparison to the FY19 NDAA.
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