(Added
252.270-7000 Pilot Program to Incentivize Contracting with Employee-Owned Businesses—Representation.
252.270-7001 Pilot Program to Incentivize Contracting with Employee-Owned Businesses—Subcontracting Certification.
252.270-7002 Pilot Program to Incentivize Contracting with Employee-Owned Businesses.
252.270-7000 Pilot Program to Incentivize Contracting with Employee-Owned Businesses—Representation.
As prescribed in 270.105(a), use the following provision:
PILOT PROGRAM TO INCENTIVIZE CONTRACTING WITH EMPLOYEE-OWNED BUSINESSES—REPRESENTATION (NOV 2024)
(a) Definition. As used in this provision, qualified business has the meaning given in the Defense Federal Acquisition Regulation Supplement 252.270-7002, Pilot Program to Incentivize Contracting with Employee-Owned Businesses, clause of this solicitation.
(b) Representation. The Offeror represents that it is a qualified business.
(End of provision)
252.270-7001 Pilot Program to Incentivize Contracting with Employee-Owned Businesses—Subcontracting Certification.
As prescribed in 270.105(b), use the following provision:
PILOT PROGRAM TO INCENTIVIZE CONTRACTING WITH EMPLOYEE-OWNED BUSINESSES—SUBCONTRACTING CERTIFICATION (NOV 2024)
(a) Definition. As used in this provision, qualified business has the meaning given in the Defense Federal Acquisition Regulation Supplement 252.270-7002, Pilot Program to Incentivize Contracting with Employee-Owned Businesses, clause of this solicitation.
(b) Limitations on subcontracting. The Offeror certifies that in performance of the contract it will not expend more than 50 percent of the amount paid under the contract on subcontracts unless—
(1) The subcontract is awarded to a qualified business;
(2) The contract is for products and the subcontract is for materials not available from another qualified business; or
(3) A waiver is granted.
(End of provision)
252.270-7002 Pilot Program to Incentivize Contracting with Employee-Owned Businesses.
As prescribed in 270.105(c), use the following clause:
PILOT PROGRAM TO INCENTIVIZE CONTRACTING WITH EMPLOYEE-OWNED BUSINESSES (NOV 2024)
(a) Definition. As used in this clause—
Qualified business means an S corporation as defined in 26 U.S.C. 1361(a)(1) for which 100 percent of the outstanding stock is held through an employee stock ownership plan as defined in 26 U.S.C. 4975(e)(7).
(b) Limitations on subcontracting. In performance of the contract, the Contractor shall not expend more than 50 percent of the amount paid under the contract on subcontracts, unless—
(1) The subcontract is awarded to a qualified business;
(2) The contract is for products and the subcontract is for materials not available from another qualified business; or
(3) A waiver is granted.
(c) Reporting requirement. Not later than 30 days after the end of the contract period of performance, the Contractor shall submit to the Contracting Officer the following information in writing:
(1) The number of years the Contractor has been wholly-owned by its employee stock ownership plan.
(2) Challenges, if any, the Contractor experienced in attracting and retaining a talented workforce in a competitive market due to the Contractor’s corporate ownership structure.
(3) Challenges, if any, the Contractor experienced that hinder its ability to contract with DoD to scale its technologies and capabilities due to the Contractor’s corporate ownership structure.
(4) Challenges, if any, the Contractor experienced, due to its corporate ownership structure, in obtaining capital necessary to bridge funding gaps, for example, between prototype demonstration and full-scale development.
(End of clause)