,,ii  #aagth ,,congress  #ast ,session  
,s4 #bdjb  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,july #bj1     
#bjba,ms4 ,warren 7for herself and ,mr4 
,tillis7 introduced the following bill2 
which was read twice and referred to the
 ,committee on ,armed ,services  ,a     
,,bill  ,to establish a pilot program to
 incentivize employee ownership in      
defense contracting4  #a4 ,pilot program
 to incentivize employee ownership in   
defense contracting  7a7 ,definitions   
,in this section3 7#a7 ,appropriate     
committees of ,congress ,the term       
appropriate committees of ,congress     
means-- 7,a7 the ,committee on ,armed   
,services and the ,committee on         
,homeland ,security and ,governmental   
,affairs of the ,senate2 and  7,b7 the  
,committee on ,armed ,services and the  
,committee on ,oversight and ,government
 ,reform of the ,house of               
,representatives4  7#b7 ,qualified      
business wholly-owned through an ,,esop 
,the term qualified businesses          

wholly-owned through an ,,esop means an 
,s corporation 7as defined in section   
#acfa7;a77#a7 of the ,internal ,revenue 
,code of #aihf7 for which #ajj percent  
of the outstanding stock is held through
 an employee stock ownership plan 7as   
defined in section #dige7;e77#g7 of the 
,internal ,revenue ,code74  7b7         
,authority ,to use noncompetitive       
procedures for follow-,on contracts to  
qualified businesses wholly-,owned      
through an ,,esop ,notwithstanding the  
requirements of section #bcjd of title  
#aj1 ,united ,states ,code1 in the case 
of a follow-on contract for the         
continued development1 production1 or   
provision of products or services that  
are the same as or substantially similar
 to the products or services procured by
 the ,department of ,defense under a    
prior contract held by a qualified      
business wholly-owned through an ,,esop1
 such products or services may be deemed
 to be available only from the holder of
 the prior contract and may be procured 

by the ,department of ,defense through  
procedures other than competitive       
procedures if the performance of the    
qualified business wholly-owned through 
an ,,esop on the prior contract was     
rated as satisfactory 7or the           
equivalent7 or better in the applicable 
past performance database4  7c7         
,verification and reporting of qualified
 businesses wholly-,owned through an    
,,esop ,the ,secretary of ,defense shall
 prescribe such procedures as may be    
necessary for-- 7#a7 businesses to      
verify that they are qualified          
businesses wholly-owned through an      
,,esop for the purposes of subsection   
7b72  7#b7 a qualified businesses       
wholly-owned through an ,,esop to       
certify that not more than #be percent  
of the amount paid under the contract   
will be expended on subcontracts1       
subject to such necessary and reasonable
 waivers as the ,secretary may          
prescribe2 and  7#c7 recording          
information on each use of the authority

 under subsection 7b71 including details
 relevant to the nature of the contract 
and the qualified business wholly-owned 
through an ,,esop1 and providing such   
information to the ,comptroller ,general
 of the ,united ,states4  7d7 ,sunset   
,the authority under subsection 7b7     
shall expire on the date that is three  
years after the date of the enactment of
 this ,act4  7e7 ,comptroller ,general  
of the ,united ,states report  7#a7 ,in 
general ,not later than two years after 
the date of the enactment of this ,act1 
the ,comptroller ,general of the ,united
 ,states shall submit to the appropriate
 committees of ,congress a report on the
 individual and aggregate uses of the   
authority under subsection 7b71 using   
such data as may be available up to that
 time4  7#b7 ,elements ,the report under
 paragraph 7#a7 shall include the       
following elements3 7,a7 ,an assessment 
of the frequency and nature of the use  
of the authority under subsection 7b74  
7,b7 ,the tendency of businesses to     

become qualified businesses wholly-owned
 through an ,,esop in order to qualify  
for the authority under subsection 7b74 
7,c7 ,acquisition authorities that could
 incentivize businesses to become       
qualified businesses wholly-owned       
through an ,,esop1 including the        
extension of the authority under        
subsection 7b74  7,d7 ,any related      
matters the ,comptroller ,general       
considers appropriate4