I 
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. 
IN THE HOUSE OF REPRESENTATIVES 
NOVEMBER 30, 2018 
Mr. BUCSHON introduced the following bill; which was referred to the Com-
mittee on Oversight and Government Reform, and in addition to the 
Committee on Armed Services, for a period to be subsequently deter-
mined 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 Representa-
tives 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: 
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(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 man-
agers and employees. 
(2) Current Federal contracting laws may inad-
vertently exclude businesses wholly-owned through 
an ESOP from key projects. 
(3) The growth of the number businesses whol-
ly-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 busi-
nesses 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. 
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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 amend-
ed— 
(1) in subsection (a), by inserting ‘‘in sub-
section (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 procure-
ment for property or services under section 3303, 3304(a), 
or 3305.’’. 
(b) USE OF NONCOMPETITIVE PROCEDURES.—Sec-
tion 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 award-
ed 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 
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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: 
‘‘§ 117. Business wholly-owned through an ESOP 
‘‘In this subtitle, the term ‘business wholly-owned 
through an ESOP’ means a business for which 100 per-
cent 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 sec-
tion, the head of the agency may enter into a contract 
with a business wholly-owned through an ESOP using a 
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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.’’. 
Æ 
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