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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 (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 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. Section 872 of the NDAA for FY 2024 amends section 874 of the NDAA for FY 2022. RIN 0750-AL94 is merged with this RIN so that section 874 and section 872 may be addressed in the same rule.