TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED MATTERS

  Subtitle G--Other Matters

P. L. 118-31

SEC. 872. EXTENSION OF PILOT PROGRAM TO INCENTIVIZE CONTRACTING WITH EMPLOYEE-OWNED BUSINESSES.

Section 874 of the National Defense Authorization Act for Fiscal Year 2022 (10 U.S.C. 3204 note) is amended--

(1) in subsection (b)--

(A) in paragraph (1), by inserting ``and prescribe regulations'' after ``establish a pilot program'';

(B) in paragraph (2)--

(i) by inserting ``or for'' after ``services procured by''; and

(ii) by inserting ``or for'' after ``may be procured by''; and

(C) in paragraph (3), by striking ``A qualified'' and inserting

``Each contract held by a qualified'';

(2) in subsection (c)(2), by striking ``expended on subcontracts, subject to such necessary and reasonable waivers'' and inserting the following: ``expended on subcontracts, except--

``(A) to the extent subcontracted amounts exceeding 50 percent are subcontracted to other qualified businesses wholly-owned through an Employee Stock Ownership Plan;

``(B) in the case of contracts for products, to the extent subcontracted amounts exceeding 50 percent are for materials not available from another qualified business wholly-owned through an Employee Stock Ownership Plan; or

``(C) pursuant to such necessary and reasonable waivers''; and

(3) in subsection (e), by striking ``five years after'' and inserting ``eight years after''.

Sec. 872--Extension of pilot program to incentivize contracting with employee-owned businesses

The House bill contained a provision (sec. 891) that would extend the length of the employee-owned business contracting incentive pilot program by 3 years and increase the number of available contracts from 9 to 25.

The Senate amendment contained a similar provision (sec. 848).

The House recedes with a clarifying amendment.

H. Rept. 118-125

Section 891--Employee-Owned Business Contracting Incentive Pilot Program Clarification and Extension

This section would amend section 874 of the National Defense Authorization Act for Fiscal Year 2022 (Public Law 117-81) by extending the length of the Employee-owned Business Contracting Incentive pilot program by 3 years and increasing the number of available contracts from 9 to 25.

S. Rept. 118-58

Extension of pilot program to incentivize contracting with employee-owned businesses (sec. 848)

The committee recommends a provision that would amend section 874 of the National Defense Authorization Act for Fiscal Year 2022 (Public Law 117-81) to extend the pilot program that incentivizes contracting with employee-owned businesses, modify the subcontracting requirement, and require the Department of Defense to prescribe regulations to carry out the pilot program. The committee notes that the extension is required to ensure the Department has requisite time to complete the federal rulemaking process for successful implementation of the pilot program.