The Department of Defense is requesting comments on a proposed rule to amend the Defense Federal Acquisition Regulation Supplement, or DFARS, to implement National Defense Authorization Act provisions authorizing a pilot program to incentivize contracting with employee-owned businesses.
In a Federal Register notice published Thursday, DOD said it proposes to add new DFARS part 270 that would authorize the department to establish a pilot program that allows the noncompetitive award of certain follow-on contracts to employee-owned businesses meeting the definition of a “qualified business.”
The proposed rule would authorize contracting officers to award a sole source, follow-on contract to procure products or services similar to those acquired under predecessor contracts.
The pilot program is authorized under section 874 of the NDAA for fiscal year 2022 and section 872 of the NDAA for FY 2024.
The comment period is open until July 29.