President Trump signed the National Defense Authorization Act for Fiscal Year 2026, authorizing over $900 billion for DoD and national security programs, including $161.7 billion for procurement—$8.9 billion above the White House request.
Key impacts for GovCon firms include raised thresholds for certified cost/pricing data to $10M (from $2M), sole-source awards to $100M without higher approvals, and Cost Accounting Standards applicability to $35M (from $2M), easing compliance burdens for smaller contracts effective after June 30, 2026; these changes accelerate acquisitions and reduce administrative costs, driving operational efficiency and business development.
Additional reforms prioritize “best value” over lowest cost for GSA MAS orders by DoD, harmonize cybersecurity requirements by June 2026, and penalize frivolous GAO protests by incumbents with up to 5% payment withholding.
Source: