[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7206 Introduced in House (IH)]

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115th CONGRESS
  2d Session
                                H. R. 7206

   To amend titles 41 and 10 of the United States Code to establish 
certain procurement procedures with respect to businesses wholly-owned 
                through an ESOP, and for other purposes.


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                    IN THE HOUSE OF REPRESENTATIVES

                           November 30, 2018

 Mr. Bucshon introduced the following bill; which was referred to the 
 Committee on Oversight and Government Reform, and in addition to the 
Committee on Armed Services, for a period to be subsequently determined 
 by the Speaker, in each case for consideration of such provisions as 
        fall within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
   To amend titles 41 and 10 of the United States Code to establish 
certain procurement procedures with respect to businesses wholly-owned 
                through an ESOP, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be referred to as the ``ESOP Business Act of 2018''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) Businesses wholly-owned through an ESOP--
                    (A) offer unique benefits to the United States and 
                to customers of such businesses;
                    (B) provide better retirement security, work 
                culture, and wage growth for workers; and
                    (C) reduce wealth inequality among managers and 
                employees.
            (2) Current Federal contracting laws may inadvertently 
        exclude businesses wholly-owned through an ESOP from key 
        projects.
            (3) The growth of the number businesses wholly-owned 
        through an ESOP benefits employees of such businesses.

SEC. 3. SENSE OF CONGRESS.

    It is the sense of Congress that--
            (1) businesses wholly-owned through an ESOP are beneficial 
        to the economy;
            (2) Congress should provide incentives for businesses to 
        become businesses wholly-owned through an ESOP; and
            (3) businesses wholly-owned through an ESOP should be 
        rewarded through the Federal contracting process for the 
        benefits that such businesses provide.

SEC. 4. FULL AND OPEN CONTRACT COMPETITION FOR BUSINESSES WHOLLY-OWNED 
              THROUGH AN ESOP.

    (a) Full and Open Contract Competition.--Section 3301 of title 41, 
United States Code, is amended--
            (1) in subsection (a), by inserting ``in subsection (d) 
        and'' before ``in sections 3303, 3304(a), and 3305''; and
            (2) by adding at the end the following:
    ``(d) Businesses Wholly-Owned Through an ESOP.--A business wholly-
owned through an ESOP may submit a bid to an executive agency 
conducting a procurement for property or services under section 3303, 
3304(a), or 3305.''.
    (b) Use of Noncompetitive Procedures.--Section 3304(b) of title 41, 
United States Code, is amended--
            (1) in paragraph (1), by striking ``or'' after 
        ``procurement;'';
            (2) in paragraph (2)(B), by striking the period and 
        inserting ``; or''; and
            (3) by adding at the end the following:
            ``(3) a follow-on contract for a contract awarded to a 
        business wholly-owned through an ESOP if the executive agency 
        rates the performance of such business on the original contract 
        as satisfactory or better in the Contractor Performance 
        Assessment Reporting System (or a successor system).''.
    (c) Definition of Business Wholly-Owned Through an ESOP.--
            (1) Title 10.--Section 2302 of title 10, United States 
        Code, is amended by adding at the end the following:
            ``(10) The term `business wholly-owned through an ESOP' has 
        the meaning given the term in section 117 of title 41.''.
            (2) Title 41.--Chapter 1 of title 41, United States Code, 
        is amended by adding after section 116 the following new 
        section:
``Sec. 117. Business wholly-owned through an ESOP
    ``In this subtitle, the term `business wholly-owned through an 
ESOP' means a business for which 100 percent of the outstanding stock 
is held through an employee stock ownership plan (as defined in section 
4795(e)(7) of title 26).''.
    (d) Pricing Preference.--Section 2304 of title 10, United States 
Code, is amended by adding at the end the following:
    ``(m) For a contract awarded pursuant to this section, the head of 
the agency may enter into a contract with a business wholly-owned 
through an ESOP using a price evaluation preference not in excess of 10 
percent when evaluating an offer received from such a business.''.
    (e) Inclusion in Contract Goals.--Section 2323(a) of title 10, 
United States Code, is amended by adding at the end the following:
            ``(4) For the purposes of this subsection, a business 
        wholly-owned through an ESOP shall be considered a small 
        business concern.''.
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