I 

116TH CONGRESS 

1ST SESSION H. R. 3014 

To amend title 10, United States Code, and the Small Business Act to 

improve innovation in defense procurement, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 23, 2019 

Mr. THORNBERRY introduced the following bill; which was referred to the 

Committee on Armed Services, and in addition to the Committees on 

Small Business, and Science, Space, and Technology, for a period to be 

subsequently determined by the Speaker, in each case for consideration 

of such provisions as fall within the jurisdiction of the committee concerned 

A BILL 

To amend title 10, United States Code, and the Small Business Act to improve innovation in defense procurement, 

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 AND TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Accelerating Defense Innovation Act of 2019’’. 

6 (b) TABLE OF CONTENTS.— 

Sec. 1. Short title and table of contents. 


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Sec. 2. Alignment of the Small Business Innovation Research Program and 

Small Business Technology Transfer Program of the Department of Defense with the National Defense Science and Technology Strategy. 

Sec. 3. Pilot program for domestic investment under the SBIR program. 

Sec. 4. Cybersecurity technical and business assistance for SBIR and STTR 

programs. 

Sec. 5. Phase 0 proof of concept partnership program for the Department of 

Defense. 

Sec. 6. Modification to the Defense Research and Development Rapid Innovation Program. 

Sec. 7. Establishment of joint reserve detachments at Defense Innovation Unit. 

1 SEC. 2. ALIGNMENT OF THE SMALL BUSINESS INNOVATION 

2 RESEARCH PROGRAM AND SMALL BUSINESS 

3 TECHNOLOGY TRANSFER PROGRAM OF THE 

4 DEPARTMENT OF DEFENSE WITH THE NA5 TIONAL DEFENSE SCIENCE AND TECH6 NOLOGY STRATEGY. 

7 (a) IN GENERAL.—The Secretary of Defense and 

8 Secretaries of the military departments shall, to the extent 

9 possible, align the research topics selected for activities 

10 conducted under the Small Business Innovation Research 

11 Program and Small Business Technology Transfer Pro12 gram (as defined under section 9 of the Small Business 

13 Act (15 U.S.C. 638)) with the National Defense Science 

14 and Technology Strategy established under section 218 of 

15 the John S. McCain National Defense Authorization Act 

16 for Fiscal Year 2019 (Public Law 115–232; 132 Stat. 

17 1679). 

18 (b) USE OF NATIONAL DEFENSE SCIENCE AND

19 TECHNOLOGY STRATEGY TO DETERMINE RESEARCH


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1 TOPICS.—Section 9 of the Small Business Act (15 U.S.C. 

2 638) is amended— 

3 (1) in subsection (g)(3)(B), by striking ‘‘, in the 

4 1992 report’’ and all that follows through ‘‘that au5 thority’’ and inserting ‘‘in the National Defense 

6 Science and Technology Strategy established under 

7 section 218 of the John S. McCain National Defense 

8 Authorization Act for Fiscal Year 2019 (Public Law 

9 115–232; 132 Stat. 1679)’’; and 

10 (2) in subsection (o)(3)(B), by striking ‘‘, in ac11 cordance with section 2522 of title 10, United States 

12 Code’’ and inserting ‘‘in the National Defense 

13 Science and Technology Strategy established under 

14 section 218 of the John S. McCain National Defense 

15 Authorization Act for Fiscal Year 2019 (Public Law 

16 115–232; 132 Stat. 1679)’’. 

17 SEC. 3. PILOT PROGRAM FOR DOMESTIC INVESTMENT 

18 UNDER THE SBIR PROGRAM. 

19 (a) SENSE OF CONGRESS.—It is the sense of Con20 gress that the Administrator of the Small Business Ad21 ministration should promulgate regulations to carry out 

22 the requirements under section 9(dd) of the Small Busi23 ness Act (15 U.S.C. 638(dd)) that— 

24 (1) permit small business concerns that are ma25 jority-owned by multiple venture capital operating 


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1 companies, hedge funds, or private equity firms to 

2 participate in the SBIR program in accordance with 

3 such section; 

4 (2) provide specific information regarding eligi5 bility, participation, and affiliation rules to such 

6 small business concerns; and 

7 (3) preserve and maintain the integrity of the 

8 SBIR program as a program for small business con9 cerns in the United States by prohibiting large enti10 ties or foreign-owned entities from participation in 

11 the SBIR program. 

12 (b) DOMESTIC INVESTMENT PILOT PROGRAM.— 

13 (1) IN GENERAL.—Not later than 1 year after 

14 the date of the enactment of this Act and notwith15 standing the requirements of section 9(dd) of the 

16 Small Business Act (15 U.S.C. 638(dd)), the Sec17 retary of Defense shall create and administer a pro18 gram to be known as the ‘‘Domestic Investment 

19 Pilot Program’’ under which the Secretary and the 

20 service acquisition executive for each military de21 partment may make a SBIR award to a small busi22 ness concern that is majority-owned by multiple ven23 ture capital operating companies, hedge funds, or 

24 private equity firms without providing the written 


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1 determination described under paragraph (2) of such 

2 section 9(dd). 

3 (2) LIMITATION.—The Secretary of Defense 

4 may award not more than 15 percent of the funds 

5 allocated for the SBIR program of the Department 

6 of Defense under section 9(f) of the Small Business 

7 Act (15 U.S.C. 638(f)) to small business concerns 

8 that are owned in majority part by multiple venture 

9 capital operating companies, hedge funds, or private 

10 equity firms through competitive, merit-based proce11 dures that are open to all eligible small business con12 cerns. 

13 (3) EVALUATION CRITERIA.—In carrying out 

14 the Domestic Investment Pilot Program, the Sec15 retary of Defense may not use investment of venture 

16 capital or investment from hedge funds or private 

17 equity firms as a criterion for the award of contracts 

18 under the SBIR program or STTR program. 

19 (4) ANNUAL REPORTING.—The Secretary of 

20 Defense shall include as part of each annual report 

21 required under section 9(b)(7) of the Small Business 

22 Act (15 U.S.C. 638(9)(b)(7))— 

23 (A) information on the implementation of 

24 the Domestic Investment Pilot Program; 


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1 (B) the number of proposals received from 

2 small business concerns that are majority3 owned by multiple venture capital operating 

4 companies, hedge funds, or private equity firms 

5 for the Domestic Investment Pilot Program; 

6 and 

7 (C) the number of awards made to such 

8 small business concerns. 

9 (5) TERMINATION.—The Domestic Investment 

10 Pilot Program established under this subsection 

11 shall terminate on September 30, 2022. 

12 (c) DEFINITIONS.—In this section: 

13 (1) SBIR.—The term ‘‘SBIR’’ has the meaning 

14 given in section 9(e) of the Small Business Act (15 

15 U.S.C. 638(e)). 

16 (2) SMALL BUSINESS ACT DEFINITIONS.—The 

17 terms ‘‘small business concern’’, ‘‘venture capital op18 erating company’’, ‘‘hedge fund’’, and ‘‘private eq19 uity firm’’ have the meanings given those terms, re20 spectively, in section 3 of the Small Business Act 

21 (15 U.S.C. 632). 

22 SEC. 4. CYBERSECURITY TECHNICAL AND BUSINESS AS23 SISTANCE FOR SBIR AND STTR PROGRAMS. 

24 Section 9(q)(1) of the Small Business Act (15 U.S.C. 

25 638(q)(1)) is amended— 


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1 (1) in the matter preceding subparagraph (A), 

2 by inserting ‘‘cybersecurity,’’ after ‘‘product sales,’’; 

3 and 

4 (2) in subparagraph (A), by striking ‘‘deci5 sions’’ and inserting ‘‘decisions, including decisions 

6 relating to cybersecurity practices’’. 

7 SEC. 5. PHASE 0 PROOF OF CONCEPT PARTNERSHIP PRO8 GRAM FOR THE DEPARTMENT OF DEFENSE. 

9 Section 9(jj) of the Small Business Act (15 U.S.C. 

10 638) is amended— 

11 (1) in paragraph (1), by striking ‘‘The Director 

12 of the National Institutes of Health’’ and inserting 

13 ‘‘A covered agency head’’; 

14 (2) by striking ‘‘The Director’’ each place it ap15 pears and inserting ‘‘A covered agency head’’; 

16 (3) by striking ‘‘the Director’’ each place it ap17 pears and inserting ‘‘a covered agency head’’; 

18 (4) in paragraph (2)— 

19 (A) by amending subparagraph (A) to read 

20 as follows: 

21 ‘‘(A) the term ‘covered agency head’ 

22 means— 

23 ‘‘(i) with respect to the STTR pro24 gram of the National Institutes of Health, 


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1 the Director of the National Institutes of 

2 Health; or 

3 ‘‘(ii) with respect to the STTR pro4 gram of the Department of Defense, the 

5 Secretary of Defense;’’; and 

6 (B) in subparagraph (C), by striking ‘‘in 

7 the National Institutes of Health’s STTR pro8 gram’’ and inserting ‘‘in either the STTR pro9 gram of the Department of Defense or the 

10 STTR program of the National Institutes of 

11 Health’’; and 

12 (5) in paragraph (4)(A), by inserting ‘‘partici13 pating in the STTR program administered by such 

14 agency head’’ after ‘‘a qualifying institution’’. 

15 SEC. 6. MODIFICATION TO THE DEFENSE RESEARCH AND 

16 DEVELOPMENT RAPID INNOVATION PRO17 GRAM. 

18 (a) INCREASE TO FUNDING.—Section 2359a(b)(3) of 

19 title 10, United States Code, is amended by striking 

20 ‘‘$3,000,000’’ and inserting ‘‘$6,000,000’’. 

21 (b) REPORT.—Not later than 180 days after the date 

22 of the enactment of this Act, the Secretary of Defense 

23 shall submit to the congressional defense committees a re24 port on the program established under section 

25 2359a(b)(3) of title 10, United States Code (commonly 


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1 known as the ‘‘Defense Research and Development Rapid 

2 Innovation Program’’), which shall include— 

3 (1) with respect to the two fiscal years pre4 ceding the submission of the report— 

5 (A) a description of the total number of 

6 proposals funded under the program; 

7 (B) the percent of funds made available 

8 under the program for Small Business Innova9 tion Research Program projects; and 

10 (C) a list of Small Business Innovation Re11 search Program projects that received funding 

12 under the program that were included in major 

13 defense acquisition programs (as defined in sec14 tion 2430 of title 10, United States Code) and 

15 other defense acquisition programs that meet 

16 critical national security needs; and 

17 (2) an assessment on the effectiveness of the 

18 program in stimulating innovation technologies, re19 ducing acquisition or life-cycle costs, addressing 

20 technical risk, and improving the timeliness and 

21 thoroughness of test and evaluation outcomes. 

22 SEC. 7. ESTABLISHMENT OF JOINT RESERVE DETACH23 MENTS AT DEFENSE INNOVATION UNIT. 

24 (a) ESTABLISHMENT.—The Secretary of Defense, in 

25 consultation with the Secretaries of the military departVerDate Sep 11 2014 20:10 Jun 10, 2019 Jkt 089200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H3014.IH H3014

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1 ments, shall establish not fewer than three joint reserve 

2 detachments (referred to in this section as ‘‘Detach3 ments’’) at locations of the Defense Innovation Unit— 

4 (1) to support engagement and collaboration 

5 with commercial innovation hubs; and 

6 (2) to accelerate the transition and adoption of 

7 commercial technologies for national security pur8 poses. 

9 (b) COMPOSITION.—Each Detachment shall be com10 posed of members of the reserve components who possess 

11 relevant private sector experience in the fields of business, 

12 acquisition, intelligence, engineering, technology transfer, 

13 science, mathematics, contracting, procurement, logistics, 

14 cyberspace security, or such other fields as are determined 

15 to be relevant by the Under Secretary of Defense for Re16 search and Engineering. 

17 (c) RESPONSIBILITIES.—The Detachments shall have 

18 the following responsibilities: 

19 (1) Each Detachment shall provide the Depart20 ment of Defense with expertise, analysis, alternatives 

21 for innovation, and opportunities for greater engage22 ment and collaboration between the defense innova23 tion ecosystem and commercial industry. 

24 (2) Each Detachment shall, on an ongoing 

25 basis— 


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1 (A) recruit, retain, and employ members of 

2 the reserve components who possess relevant 

3 private sector experience, as described in sub4 section (b); 

5 (B) partner with the military services, the 

6 combatant commands, and other Department of 

7 Defense organizations to seek and rapidly pro8 totype advanced commercial solutions while 

9 lowing the barrier to entry to serve defense re10 quirements; 

11 (C) increase awareness of— 

12 (i) the technology portfolios of the De13 fense Innovation Unit; and 

14 (ii) the technology requirements of the 

15 Department of Defense as identified in the 

16 National Defense Science and Technology 

17 Strategy developed under section 218 of 

18 the John S. McCain National Defense Au19 thorization Act for Fiscal Year 2019 (Pub20 lic Law 115–232; 132 Stat. 1679); 

21 (D) capitalize on the growing investment 

22 in research and development made by the com23 mercial industry in assessing and maturing 

24 dual-use technologies; and 


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1 (E) carry out such other activities as may 

2 be directed by the Under Secretary of Defense 

3 for Research and Engineering. 

4 (d) DEADLINE FOR ESTABLISHMENT OF DETACH5 MENTS.—The Secretary of Defense shall ensure that— 

6 (1) at least one Detachment is established on or 

7 before October 1, 2020; and 

8 (2) all three Detachments required under sub9 section (a) are established on or before October 1, 

10 2022. 

11 (e) IMPLEMENTATION REPORT.— 

12 (1) IN GENERAL.—Not later than 120 days 

13 after the date of the enactment of this Act, the 

14 Under Secretary of Defense for Research and Engi15 neering shall submit to the congressional defense 

16 committees a report that includes— 

17 (A) an organizational plan for the Detach18 ments; 

19 (B) the estimated costs of establishing the 

20 Detachments; and 

21 (C) a timeline specifying when each De22 tachment will attain initial operational capa23 bility and full operational capability, respec24 tively. 


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1 (2) CONSULTATION.—In preparing the report 

2 required under paragraph (1), the Under Secretary 

3 of Defense for Research and Engineering shall con4 sult with the Director of the Defense Innovation 

5 Unit and the head of each military service. 

Æ 


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