An Industry Guide to the FY2026 NDAA

The Fiscal Year 2026 National Defense Authorization Act introduces a series of negotiated changes to Defense Department policy, contracting, and compliance. While many initially ambitious acquisition reforms were weakened, the bill still advances incremental changes like establishing the portfolio acquisition executive role and redefining the Joint Requirements Oversight Council. New contracting authorities make commercial sourcing the procedural default, grant exemptions to nontraditional contractors, and limit compliance burdens on subcontractors. The legislation also expands authorities for commercial solutions openings, consumption-based pricing, and multi-year procurement for munitions. Ultimately, the true impact of these reforms will depend on the Defense Department's ability to effectively implement the new policies and guidance.