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DoD is issuing a final rule amending the Defense Federal Acquisition Regulation Supplement to implement section 874 of the National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2022 and section 872 of the NDAA for FY 2024. Section 874 of the NDAA for FY 2022 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 26 U.S.C. 1361(a)(1) for which 100% of the outstanding stock is held through an employee stock ownership plan as defined in 26 U.S.C. 4975(e)(7). Section 872 of the NDAA for FY 2024 amends section 874 of the NDAA for FY 2022.