Final Congressional Conference Report on NDAA Includes Two Surety Provisions - updated
Thursday, October 01, 2015
The U.S House Rules Committee released the final conference report on the National Defense Authorization Act (NDAA), which is the annual defense policy legislation. The federal Construction Coalition was successful in having several provisions from its procurement reform legislation included in the final NDAA legislation in the conference report.
Included in the conference report are the two surety provisions from the Construction Coalition’s legislation. One provision would increase in the SBA’s guarantee to sureties in its Preferred Surety bond guarantee program from 70% to 90%. The second provision would require individual sureties play by the same rules as any other person or entity that provides collateral to the federal government. Individual sureties would be required to pledge known and reliable assets to back their bonds, and to relinquish control of those pledged assets to the federal contracting officer, who would deposit them in the Federal Reserve system.
The conference bill, however, delays the effective date of both surety provisions to one year after the date of enactment so that the necessary regulations can be developed to implement both provisions. The final report also eliminates a General Accounting Office (GAO) the study of the impact of this change on the corporate and individual surety market.
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