In July 2024, both the House Armed Services Committee and the Senate Armed Services Committee introduced their respective versions of the NDAA for Fiscal Year (“FY”) 2025. Each version contains proposed language that would amend 10 U.S.C. 2271 and the Senate version includes language to: (1) specify the factors that would support inclusion of a contractor on the Contractor Responsibility Watch List (“CRWL”); and (2) make clear that the Air Force will not procure goods and services under prime contracts or subcontracts from contractors listed on the CRWL. The proposed language results from a determination by the Department of the Air Force that statutory grounds, to allow essentially contractor blacklisting, are needed to ensure proper performance of space programs. Thus, it is important that contractors not only avoid being placed on the CRWL (or, if that were to occur, to take action immediately to be removed from the CRWL), contractors must also ensure their subcontractors are not listed on CRWL. To date, this has been challenging because the CRWL is not public. Indeed, the Air Force has not confirmed whether any companies are listed on CRWL.
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