On June 15, 2026, an amended draft of the fiscal year (FY) 2027 NDAA, originally introduced by Representative Mike Rogers of Alabama, was released by the House of Representatives. See below for a list of noteworthy proposals featured in the draft bill:

• Section 804: Elimination of updates to cost or pricing data submitted by the prime contractor or subcontractor after the date of price agreement as a defense against defective pricing.
• Section 808: Shift to a risk-based approach for monitoring contractor business systems. This change minimizes the surveillance requirements of contractor business systems to only those that are necessary to conform with commercial best-practices or industry standards. It also allows contractors to provide internal reports in connection with standard surveillance activities and targeted reviews, and ensures the reports are considered during a business system review.
• Section 811: Third-party comprehensive review of defense audit agencies’ standards, guidance, and policies to streamline the audit process. The review will compare defense audit agencies’ processes and standards against industry best practices to assess the extent to which industry best practices are applicable and transferable to defense contractor audits. Notably, the third party’s report shall include recommendations to ensure defense audit agencies use a materiality standard that is similar to the standard used in generally accepted auditing standards and to improve training of staff.
• Section 821: Inflation adjustments to acquisition thresholds every three years, instead of every five years
• Section 829: Codification of a program that allows contractors to negotiate comprehensive small business subcontracting plans instead of managing subcontracting plans on a contract-by-contract basis.
• Section 874: Establishes a team to promulgate and implement regulations to resolve the backlog of open Defense Federal Acquisition Regulation (DFARS) cases
• Section 877: Requires issuance of regulations, guidance, and class deviations to implement sections 1821 through 1828 of the FY 2026 NDAA, which address commercial acquisition reforms
• Section 1838: Requires a triennial review of merger and acquisition activity associated with major defense suppliers

To read the draft, click here.

Also on June 15, 2026, the Senate released its draft version of the FY 2027 NDAA. Notable provisions are listed below:

• Section 822: Similar to Section 804 in the House draft bill, late submission of cost or pricing data will be designated as an invalid defense against contract price reductions for defective cost or pricing data.  
• Section 815: Precludes the Department of War from entering into contracts unless the contractor agrees in writing not to repurchase its equity securities or pay dividends or make other capital distribution with respect to its equity securities. These requirements could be waived if the contractors agree to a qualifying defense investment plan.

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HKA’s Government Contracting Group