Regulatory Burdens

Small businesses have been overwhelmed in recent years by a proliferation of costly regulatory burdens. Of note are a number of recent Executive Orders (EOs) assessed to be particularly costly for small businesses. Small businesses have borne the cost of having to understand not only additions and changes to the Federal Acquisition Regulation (FAR) and regulations of various Departments and agencies, but also how the agencies will implement those changes. This requires careful study of resulting agency procedures, guidance, and instructions, in addition to projecting workforce behaviors, which are largely driven by the actual or perceived interpretation of the original regulations by oversight actors (Government Accountability Office, agency Inspectors Generals, etc.). Once those are understood, small businesses must incur significant initial and reoccurring compliance costs, which are higher for small businesses per employee than average firms. These costs place a burden on small business, and take the place of investments in research and development (R&D), human capital, and other means to grow and diversify businesses.  NDIA supports policies that ensure accountability for taxpayer dollars spent on contracts with small businesses, however, absent sufficient materiality standards, audit and regulatory burdens threaten to undermine the goals of these programs and greater participation by small businesses in the government marketplace.