Sec. 7. Incentivizing employee stock ownership plans for business growth
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The Administrator may expand the pilot program authorized by section 874 of the National Defense Authorization Act for Fiscal Year 2022 ( Public Law 117–81 ; 10 U.S.C. 3204 note) for Government-wide use, including by coordinating as necessary with the Federal Acquisition Regulatory Council to make related amendments to the Federal Acquisition Regulation. Notwithstanding the requirements of section 3301 of title 41, United States Code, for purposes of carrying out a Government-wide ESOP pilot program established under paragraph (1), the products or services to be procured by an executive agency under a follow-on contract with a qualified business wholly-owned through an ESOP for the continued development, production, or provision of products or services that are the same as or substantially similar to the products or services procured under a prior contract may be procured through procedures other than competitive procedures if the performance of the qualified business on the prior contract was rated as satisfactory (or the equivalent) or better.
A qualified business wholly-owned through an ESOP may have a single opportunity for award of a sole-source follow-on contract under this subsection, unless the senior procurement executive of the executive agency awarding the contract approves a waiver of such limitation. Under a pilot program established under this section, the Administrator shall establish procedures— for businesses to verify status as a qualified business wholly-owned through an ESOP for the purposes of this section by using existing Federal reporting mechanisms; for a qualified businesses wholly-owned through an ESOP to certify that not more than 50 percent of the amount paid under the contract will be expended on subcontracts, including similarly situated ESOPs if determined appropriate by the Administrator, subject to such necessary and reasonable waivers as the implementing guidance or regulations may prescribe; and to record and provide to relevant committees of Congress upon request information on each follow-on contract awarded under authority of this subsection, including details relevant to the nature of such contract and the qualified business wholly-owned through an ESOP that received the contract.
A pilot program established under this section shall expire on the date that is 5 years after the date of the enactment of this Act.
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Sec. 7
Incentivizing employee stock ownership plans for business growth
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