Compensation and Pay Practices

ARTICLE

100% ESOP-Owned Defense Department Government Contractors Eligible for Sole Source Awards on Follow-On Contracts

January 12, 2022

The NDAA includes the first-ever government contracting program to encourage employee ownership. Specifically, Section 874 of the new law creates a DoD pilot program that allows contractors that are 100% ESOP-owned to receive automatic follow-on contracts to continue performing the work.