IA joins pushback against Section 828 of the National Defense Authorization Act

The Irrigation Association, Fairfax, Virginia, has recently joined a coalition of associations representing thousands of federal contractors in opposing Section 828 of S. 4638, the National Defense Authorization Act for Fiscal Year 2025.  

The section mandates that Department of Defense procurement contracts be contingent on contractors providing continuous access to all repair materials and information. 

In a joint letter addressed to the leaders of the U.S. Senate and House Armed Services Committees, the associations expressed their concerns about the sweeping requirements of Section 828. The letter argues that this provision would force contractors to disclose sensitive trade secrets and enforce strict pricing controls on repair materials, which could discourage companies from entering into contracts with the DoD and undermine the defense supply chain. 

Nathan Bowen, vice president of advocacy and public affairs for the Irrigation Association, emphasizes the potential repercussions for the irrigation industry and its contractors.  

“Section 828’s compulsory licensing mandate is an overreach that threatens the operational stability of countless businesses that support our national defense,” says Bowen. “This provision not only undermines existing agreements that ensure the availability of necessary materials but also places an undue burden on small and medium-sized businesses that are vital to maintaining our defense infrastructure.” 

The letter highlights that defense contractors and original equipment manufacturers already provide an array of resources to the DoD, including parts, manuals and training. These existing agreements ensure that repair and maintenance needs are met without compromising sensitive proprietary information. The signatories argue that the DoD’s Regional Sustainment Framework calls for stronger industry partnerships, not the broad, compulsory mandates proposed in Section 828. 

The letter points out that Section 828’s pricing mandates would disrupt the economics of the dealer distribution model, adversely affecting small and medium-sized businesses that rely on these margins for their livelihood. The policy could further exacerbate the decline in small business participation in the defense industrial base, which has already decreased by over 40% in the past decade. 

The associations urged Congress to remove Section 828 from the NDAA, arguing that it poses a significant threat to the defense supply chain without delivering a corresponding benefit to national security. “At a time when the defense industrial base needs robust support and collaboration, policies like Section 828 risk driving away the very businesses that are crucial to our national defense,” Bowen adds.