Corey Rosen
Bipartisan Bill Extends ESOP Company DoD Procurement Program to All Agencies
In 2022, the National Defense Authorization Act created the first-ever government contracting program to specifically encourage ESOPs. Section 874 of the new law created a Department of Defense (DoD) pilot program to allow companies that are or become 100% ESOP-owned to receive noncompete follow-on contracts for their work. The award is contingent on finding that the contractor’s performance is satisfactory or better. The program will run for five years, and the Government Accountability Office is required to provide an assessment of it within three years of the program’s enactment.