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Defense Contracting: DOD Contracts with Companies Having Employee Stock Ownership Plans

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Report Type Reports and Testimonies
Report Date June 18, 2020
Release Date June 18, 2020
Report No. GAO-20-514R
Summary:

An “employee stock ownership plan” is an employee benefit that can be a way for the company to transfer ownership to employees, or a way for the company to obtain tax-advantaged financing.

We found the Department of Defense (DOD)

awarded almost half of all contracting dollars to companies with these plans during 2014-17

doesn’t consider whether a company has such a plan during its contracting process

DOD generally rated contracts with companies having employee stock ownership plans as satisfactory or better for quality, cost, and schedule. Data isn’t readily available to determine how much of any given company is employee-owned.

Pentagon building

Pentagon building

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