; and (3) businesses wholly-owned through an ESOP should be rewarded through the Federal contracting process for the benefits that such businesses provide. 4. Deeming of businesses wholly-owned through an ESOP as small business concerns Section 3(a) of the Small Business Act ( 15 U.S.C. 632(a) ) is amended by adding at the end the following new paragraph: (10) Application to businesses wholly-owned through an ESOP (A) In general Notwithstanding the requirements relating to size standards in this subsection, a business wholly-owned through an ESOP shall be deemed to be a small business concern for the purposes of any Federal procurement programs. (B) Definition The term business wholly-owned through an ESOP means a business for which 100 percent of the outstanding stock is held through an employee stock ownership plan (as defined in section 4795(e)(7) of the Internal Revenue Code). . 5. Pricing preference for contracts awarded to businesses wholly-owned through an ESOP (a) Pricing preference for defense contracts Section 2304 of title 10, United States Code, is amended by adding at the end the following new subsection: (m) For a contract awarded pursuant to this section, the head of the agency may enter into a contract with a business wholly-owned through an ESOP using a price evaluation preference not in excess of 10 percent when evaluating an offer received from such a business. In this subsection, the term business wholly-owned through an ESOP means a business for which 100 percent of the outstanding stock is held through an employee stock ownership plan (as defined in section 4795(e)(7) of the Internal Revenue Code). . (b) Pricing preference for civilian contracts Section 3301 of title 41, United States Code, is amended by adding at the end the following new subsection: (g) Pricing preference for contracts For a contract awarded pursuant to this section, the head of an agency may enter into a contract with a business wholly-owned through an ESOP using a price evaluation preference not in excess of 10 percent