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

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”.