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Pilot Program to Incentivize Employee Ownership in Defense Contracting

A new pilot program aims to encourage employee-owned defense contractors to continue working with the Department of Defense. This allows such companies to more easily secure follow-on contracts without open competition, potentially stabilizing their operations and jobs. The program supports businesses where employees have a direct stake in the company's success.
Key points
Defense companies wholly owned by employees (through an ESOP) can more easily secure follow-on contracts with the Department of Defense if their previous performance was satisfactory.
This facilitation means such companies can be selected without open competition, potentially ensuring their stability and continued employment.
The pilot program will last for three years, and its effects will be evaluated by the government to determine whether to continue or expand it.
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Status:
Expired
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Additional Information
Print number: 117_S_2402
Sponsor: Sen. Warren, Elizabeth [D-MA]
Process start date: 2021-07-20
System Note: Lustra is free, publicly auditable civic infrastructure, with full source code available on GitHub. You are reading sterilized legislative data, processed by our radical neutrality engine to strip political spin and retain factual mechanics. We process only official government data. Original documents remain the authoritative source, always verify them if you can.
Summarized by: gemini-2.5-flash-preview-05-20
Source data: api.congress.gov
AI work logs for this document launch

OFFICIAL LEGAL TITLE

A bill to establish a pilot program to incentivize employee ownership in defense contracting.

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 117_S_2402.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2021-07-20.

What are the main provisions?

Key points include:

  • Defense companies wholly owned by employees (through an ESOP) can more easily secure follow-on contracts with the Department of Defense if their previous performance was satisfactory.
  • This facilitation means such companies can be selected without open competition, potentially ensuring their stability and continued employment.
  • The pilot program will last for three years, and its effects will be evaluated by the government to determine whether to continue or expand it.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Sen. Warren, Elizabeth [D-MA].

What is the latest detailed status?

The latest detailed status is: Introduced in Senate

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-29.

What is the impact of this bill?

We don't know, that is up to you to decide. Summarizing raw data with AI is fundamentally different from predicting socio-economic outcomes. As of 2026, we believe impact assessment strictly requires a human in the loop to verify and judge.

CATEGORIES

Labor Economy Security