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DoD is proposing to amend the Defense Federal Acquisition Regulation Supplement to implement section 874 of the National Defense Authorization Act for Fiscal Year 2022 (Pub. L. 117-81). Section 874 authorizes DoD to establish a pilot program to allow for the noncompetitive award of follow-on contracts, to a qualified business, for the continued development, production, or provision of products or services that are the same as or substantially similar to the products or services procured by DoD under a prior contract held by a qualified business. A qualified business is an S corporation in accordance with section 1361(a)(1) of the Internal Revenue Code of 1986 for which 100% of the outstanding stock is held through an employee stock ownership plan as defined in section 4975(e)(7) of such code. The number of noncompetitive awards that may be made to a qualified business under the pilot program is limited to one.