Bill > S2402

This bill establishes a pilot program to incentivize employee ownership in defense contracting. The key provisions include: 1. Allowing the Department of Defense to use non-competitive procedures to award follow-on contracts to "qualified businesses wholly-owned through an ESOP" (S corporations where 100% of the stock is held through an employee stock ownership plan), as long as the business's prior performance was satisfactory or better. 2. Requiring the Secretary of Defense to develop procedures for businesses to verify they qualify as ESOP-owned, limit subcontracting to 25% of the contract value, and report on the use of this authority. 3. Sunsetting the non-competitive contracting authority after 3 years, and requiring the Comptroller General to submit a report to Congress within 2 years on the frequency and impact of using this authority. The goal is to incentivize employee ownership in defense contracting by allowing sole-source follow-on contracts for ESOP-owned businesses that have performed well previously.

Military Affairs and Security

https://www.congress.gov/bill/117th-congress/senate-bill/2402/all-info