I 

117TH CONGRESS 

1ST SESSION H. R. 2005 

To amend chapter 139 of title 10, United States Code, to require the Secretary of each military department to identify promising research programs of the Small Business Innovation Research Program or Small 

Business Technology Transfer Program for inclusion in the future budgets and plans of the Department of Defense, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 18, 2021 

Mr. CALVERT (for himself and Mr. CRIST) introduced the following bill; which 

was referred to the Committee on Armed Services 

A BILL 

To amend chapter 139 of title 10, United States Code, 

to require the Secretary of each military department 

to identify promising research programs of the Small 

Business Innovation Research Program or Small Business Technology Transfer Program for inclusion in the 

future budgets and plans of the Department of Defense, 

and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘DOD Entrepreneurial 

5 Innovation Act’’. 


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1 SEC. 2. ENTREPRENEURIAL INNOVATION PROJECT DES2 IGNATIONS. 

3 (a) IN GENERAL.— 

4 (1) DESIGNATING CERTAIN SBIR AND STTR

5 PROGRAMS AS ENTREPRENEURIAL INNOVATION

6 PROJECTS.—Chapter 139 of title 10, United States 

7 Code, is amended by inserting after section 2359b 

8 the following new section: 

9 ‘‘§ 2359c Entrepreneurial Innovation Project designa10 tions 

11 ‘‘(a) IN GENERAL.—During the first fiscal year be12 ginning after the date of the enactment of this section, 

13 and during each subsequent fiscal year, each Secretary 

14 concerned, in consultation with the each chief of an armed 

15 force under the jurisdiction of the Secretary concerned, 

16 shall designate not less than five eligible programs as En17 trepreneurial Innovation Projects. 

18 ‘‘(b) APPLICATION.—An eligible program seeking 

19 designation as an Entrepreneurial Innovation Project 

20 under this section shall submit to the Secretary concerned 

21 an application at such time, in such manner, and con22 taining such information as the Secretary concerned deter23 mines appropriate. 

24 ‘‘(c) DESIGNATION CRITERIA.—In making designa25 tions under subsection (a), the Secretary concerned shall 

26 consider— 


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1 ‘‘(1) the potential of the eligible program to— 

2 ‘‘(A) advance the national security capa3 bilities of the United States; 

4 ‘‘(B) provide new technologies or proc5 esses, or new applications of existing tech6 nologies, that will enable new alternatives to ex7 isting programs; and 

8 ‘‘(C) provide future cost savings; 

9 ‘‘(2) whether an advisory panel has rec10 ommended the eligible program for designation; and 

11 ‘‘(3) such other criteria that the Secretary con12 cerned determines to be appropriate. 

13 ‘‘(d) DESIGNATION BENEFITS.— 

14 ‘‘(1) FUTURE YEARS DEFENSE PROGRAM IN15 CLUSION.—With respect to each designated pro16 gram, the Secretary of Defense shall include in the 

17 next future-years defense program the estimated ex18 penditures of such designated program. In the pre19 ceding sentence, the term ‘next future-years defense 

20 program’ means the future-years defense program 

21 submitted to Congress under section 221 of this title 

22 after the date on which such designated program is 

23 designated under subsection (a). 

24 ‘‘(2) PROGRAMMING PROPOSAL.—Each des25 ignated program shall be included by the Secretary 


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1 concerned under a separate heading in any program2 ming proposals submitted to the Secretary of De3 fense. 

4 ‘‘(3) PPBE COMPONENT.—Each designated 

5 program shall be considered by the Secretary con6 cerned as an integral part of the planning, program7 ming, budgeting, and execution process of the De8 partment of Defense. 

9 ‘‘(e) ENTREPRENEURIAL INNOVATION ADVISORY

10 PANELS.— 

11 ‘‘(1) ESTABLISHMENT.—For each military de12 partment, the Secretary concerned shall establish an 

13 advisory panel that, starting in the first fiscal year 

14 beginning after the date of the enactment of this 

15 section, and in each subsequent fiscal year, shall 

16 identify and recommend to the Secretary concerned 

17 for designation under subsection (a) eligible pro18 grams based on the criteria described in subsection 

19 (c)(1). 

20 ‘‘(2) MEMBERSHIP.— 

21 ‘‘(A) COMPOSITION.— 

22 ‘‘(i) IN GENERAL.—Each advisory 

23 panel shall be composed of four members 

24 appointed by the Secretary concerned and 

25 one member appointed by the chief of the 


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1 relevant armed force under the jurisdiction 

2 of the Secretary concerned. 

3 ‘‘(ii) SECRETARY CONCERNED AP4 POINTMENTS.—The Secretary concerned 

5 shall appoint members to the advisory 

6 panel as follows: 

7 ‘‘(I) Three members who— 

8 ‘‘(aa) have experience with 

9 private sector entrepreneurial in10 novation, including development 

11 and implementation of such inno12 vations into well established mar13 kets; and 

14 ‘‘(bb) are not employed by 

15 the Federal Government. 

16 ‘‘(II) One member who is in the 

17 Senior Executive Service in the acqui18 sition workforce (as defined in section 

19 1705 of this title) of the relevant mili20 tary department. 

21 ‘‘(iii) SERVICE CHIEF APPOINT22 MENT.—The chief of an armed force under 

23 the jurisdiction of the Secretary concerned 

24 shall appoint to the advisory panel one 


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1 member who is a member of such armed 

2 forces. 

3 ‘‘(B) TERMS.— 

4 ‘‘(i) PRIVATE SECTOR MEMBERS.— 

5 Members described in subparagraph 

6 (A)(ii)(I) shall serve for a term of three 

7 years, except that of the members first ap8 pointed— 

9 ‘‘(I) one shall serve a term of one 

10 year; 

11 ‘‘(II) one shall serve a term of 

12 two years; and 

13 ‘‘(III) one shall serve a term of 

14 three years. 

15 ‘‘(ii) FEDERAL GOVERNMENT EM16 PLOYEES.—Members described in clause 

17 (ii)(II) or (iii) of subparagraph (A) shall 

18 serve for a term of two years, except that 

19 the first member appointed under subpara20 graph (A)(iii) shall serve for a term of one 

21 year. 

22 ‘‘(C) CHAIR.—The chair for each advisory 

23 panel shall be as follows: 

24 ‘‘(i) For the first year of operation of 

25 each such advisory panel, and every other 


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1 year thereafter, the member appointed 

2 under subparagraph (A)(iii). 

3 ‘‘(ii) For the second year of operation 

4 of each such advisory panel, and every 

5 other year thereafter, the member ap6 pointed under subparagraph (A)(ii)(II). 

7 ‘‘(D) VACANCIES.—A vacancy in an advi8 sory panel shall be filled in the same manner as 

9 the original appointment. 

10 ‘‘(E) CONFLICT OF INTEREST.—Members 

11 and staff of each advisory panel shall disclose 

12 to the relevant Secretary concerned, and such 

13 Secretary concerned shall mitigate to the extent 

14 practicable, any professional or organizational 

15 conflict of interest of such members or staff 

16 arising from service on the advisory panel. 

17 ‘‘(F) COMPENSATION.— 

18 ‘‘(i) PRIVATE SECTOR MEMBER COM19 PENSATION.—Except as provided in clause 

20 (ii), members of an advisory panel, and the 

21 support staff of such members, shall be 

22 compensated at a rate determined reason23 able by the Secretary concerned and shall 

24 be reimbursed in accordance with section 

25 5703 of title 5 for reasonable travel costs 


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1 and expenses incurred in performing duties 

2 as members of an advisory panel. 

3 ‘‘(ii) PROHIBITION ON COMPENSATION

4 OF FEDERAL EMPLOYEES.—Members of an 

5 advisory panel who are full-time officers or 

6 employees of the United States or Mem7 bers of Congress may not receive addi8 tional pay, allowances, or benefits by rea9 son of their service on an advisory panel. 

10 ‘‘(3) SELECTION PROCESS.— 

11 ‘‘(A) INITIAL SELECTION.—Each advisory 

12 panel shall select not less than ten eligible pro13 grams that have submitted an application under 

14 subsection (b). 

15 ‘‘(B) PROGRAM PLANS.— 

16 ‘‘(i) IN GENERAL.—Each eligible pro17 gram selected under subparagraph (A) 

18 may submit to the advisory panel that se19 lected such eligible program a program 

20 plan containing the five-year goals, execu21 tion plans, schedules, and funding needs of 

22 such eligible program. 

23 ‘‘(ii) SUPPORT.—Each Secretary con24 cerned shall, to the greatest extent prac25 ticable, provide eligible programs selected 


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1 under subparagraph (A) with access to in2 formation to support the development of 

3 the program plans described in clause (i). 

4 ‘‘(C) FINAL SELECTION.—Each advisory 

5 panel shall recommend to the Secretary con6 cerned for designation under subsection (a) not 

7 less than five eligible programs that submitted 

8 a program plan under subparagraph (B) to 

9 such advisory panel. If there are less than five 

10 such eligible programs, such advisory panel may 

11 recommend to the Secretary concerned for des12 ignation under subsection (a) less than five 

13 such eligible programs. 

14 ‘‘(4) ADMINISTRATIVE AND TECHNICAL SUP15 PORT.—The Secretary concerned shall provide the 

16 relevant advisory panel with such administrative 

17 support, staff, and technical assistance as the Sec18 retary concerned determines necessary for such advi19 sory panel to carry out it duties. 

20 ‘‘(5) FUNDING.—The Secretary of Defense may 

21 use amounts available from the Department of De22 fense Acquisition Workforce Development Account 

23 established under section 1705 of this title to sup24 port the activities of advisory panels. 


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1 ‘‘(6) INAPPLICABILITY OF FACA.—The Federal 

2 Advisory Committee Act (5 U.S.C. App) shall not 

3 apply to the advisory panels established under this 

4 subsection. 

5 ‘‘(f) REVOCATION OF DESIGNATION.—If the Sec6 retary concerned determines that a designated program 

7 cannot reasonably meet the objectives of such designated 

8 program in the relevant programming proposal referred 

9 to in subsection (d)(2) or such objectives are irrelevant, 

10 such Secretary concerned may revoke the designation. 

11 ‘‘(g) REPORT TO CONGRESS.—The Secretary of De12 fense shall submit to Congress an annual report describing 

13 each designated program and the progress each designated 

14 program has made toward achieving the objectives of the 

15 designated program. 

16 ‘‘(h) DEFINITIONS.—In this section: 

17 ‘‘(1) ADVISORY PANEL.—The term ‘advisory 

18 panel’ means an advisory panel established under 

19 subsection (e)(1). 

20 ‘‘(2) DESIGNATED PROGRAM.—The term ‘des21 ignated program’ means an eligible program that 

22 has been designated as an Entrepreneurial Innova23 tion Project under this section. 

24 ‘‘(3) ELIGIBLE PROGRAM.—The term ‘eligible 

25 program’ means work performed pursuant to a 


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1 Phase III agreement (as such term is defined in sec2 tion 9(r)(2) of the Small Business Act (15 U.S.C. 

3 638(r)(2))).’’. 

4 (2) CLERICAL AMENDMENT.—The table of sec5 tions at the beginning of chapter 139 of title 10, 

6 United States Code, is amended by inserting after 

7 the item related to section 2359b the following new 

8 item: 

‘‘2359c. Entrepreneurial Innovation Project designations.’’. 

9 (b) ESTABLISHMENT DEADLINE.—Not later than 

10 120 days after the date of the enactment of this Act, the 

11 Secretaries of each military department shall establish the 

12 advisory panels described in section 2359c(e) of title 10, 

13 United States Code, as added by subsection (a). 

14 (c) FUTURE TRANSFER.— 

15 (1) TRANSFER AND REDESIGNATION.—Section 

16 2359c of title 10, United States Code, as added by 

17 subsection (a), is transferred to chapter 303 of such 

18 title, added after section 4066, as transferred and 

19 redesignated by section 1842(b) of the William M. 

20 (Mac) Thornberry National Defense Authorization 

21 Act for Fiscal Year 2021 (Public Law 116–283), 

22 and redesignated as section 4067. 

23 (2) CLERICAL AMENDMENTS.— 

24 (A) TARGET CHAPTER TABLE OF SEC25 TIONS.—The table of sections at the beginning 


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1 of chapter 303 of title 10, United States Code, 

2 as added by section 1842(a) of the William M. 

3 (Mac) Thornberry National Defense Authoriza4 tion Act for Fiscal Year 2021 (Public Law 

5 116–283), is amended by inserting after the 

6 item related to section 4066 the following new 

7 item: 

‘‘4067. Entrepreneurial Innovation Project designations.’’. 

8 (B) ORIGIN CHAPTER TABLE OF SEC9 TIONS.—The table of sections at the beginning 

10 of chapter 139 of title 10, United States Code, 

11 is amended by striking the item relating to sec12 tion 2359c. 

13 (3) EFFECTIVE DATE.—The amendments made 

14 by this subsection shall take effect on January 1, 

15 2022. 

16 (4) REFERENCES; SAVING PROVISION; RULE OF

17 CONSTRUCTION.—Sections 1883 through 1885 of 

18 the William M. (Mac) Thornberry National Defense 

19 Authorization Act for Fiscal Year 2021 (Public Law 

20 116–283) shall apply with respect to the amend21 ments made under this subsection as if such amend22 ments were made under title XVIII of such Act. 

Æ 


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