NDAA: Massive Expansion of Commercial Solutions Openings and Other Key Takeaways for Defense Contractors
Government Contracts attorney Jeremy Burkhart wrote an article for Nextgov/FCW recapping the most consequential provisions for defense contractors in the 2026 National Defense Authorization Act (NDAA). He begins with Section 1823, which amends 10 U.S.C. § 3458 to allow the U.S. Department of War (DOW) and military groups to use commercial solutions openings (CSOs) to acquire products and services; this change expands CSO availability, previously limited to "innovative" commercial solutions, and positions it as a general commercial acquisition tool. In addition to creating new pathways for contractors, the NDAA eliminates a major compliance burden under Section 1806 by reducing the number of contracts covered by cost accounting standards (CAS) through adjusting coverage thresholds. Mr. Burkhart highlights other provisions creating a new portfolio acquisition executive (PAE) position and permitting the DOW, under certain circumstances, to withhold up to 5 percent of payments to incumbent contractors because of a protest filed before the U.S. Government Accountability Office (GAO). He also takes a look at notable aspects eliminated from the final bill, including funding for Small Business Innovation Research and Small Business Technology Transfer programs as well as a "right to repair" provision requiring contractors to supply the government with the necessary technical information for the military to repair equipment on its own.