SEC. 2. ENTREPRENEURIAL INNOVATION PROJECT DES-
IGNATIONS. 
(a) IN GENERAL.— 
(1) DESIGNATING
CERTAIN
SBIR
AND
STTR 
PROGRAMS
AS
ENTREPRENEURIAL
INNOVATION 
PROJECTS.—Chapter 139 of title 10, United States 
Code, is amended by inserting after section 2359b 
the following new section: 
‘‘§ 2359c Entrepreneurial Innovation Project designa-
tions 
‘‘(a) IN GENERAL.—During the first fiscal year be-
ginning after the date of the enactment of this section, 
and during each subsequent fiscal year, each Secretary 
concerned, in consultation with the each chief of an armed 
force under the jurisdiction of the Secretary concerned, 
shall designate not less than five eligible programs as En-
trepreneurial Innovation Projects. 
‘‘(b) APPLICATION.—An eligible program seeking 
designation as an Entrepreneurial Innovation Project 
under this section shall submit to the Secretary concerned 
an application at such time, in such manner, and con-
taining such information as the Secretary concerned deter-
mines appropriate. 
‘‘(c) DESIGNATION CRITERIA.—In making designa-
tions under subsection (a), the Secretary concerned shall 
consider— 
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‘‘(1) the potential of the eligible program to— 
‘‘(A) advance the national security capa-
bilities of the United States; 
‘‘(B) provide new technologies or proc-
esses, or new applications of existing tech-
nologies, that will enable new alternatives to ex-
isting programs; and 
‘‘(C) provide future cost savings; 
‘‘(2) whether an advisory panel has rec-
ommended the eligible program for designation; and 
‘‘(3) such other criteria that the Secretary con-
cerned determines to be appropriate. 
‘‘(d) DESIGNATION BENEFITS.— 
‘‘(1) FUTURE
YEARS
DEFENSE
PROGRAM
IN-
CLUSION.—With respect to each designated pro-
gram, the Secretary of Defense shall include in the 
next future-years defense program the estimated ex-
penditures of such designated program. In the pre-
ceding sentence, the term ‘next future-years defense 
program’ means the future-years defense program 
submitted to Congress under section 221 of this title 
after the date on which such designated program is 
designated under subsection (a). 
‘‘(2) PROGRAMMING
PROPOSAL.—Each des-
ignated program shall be included by the Secretary 
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concerned under a separate heading in any program-
ming proposals submitted to the Secretary of De-
fense. 
‘‘(3) PPBE 
COMPONENT.—Each designated 
program shall be considered by the Secretary con-
cerned as an integral part of the planning, program-
ming, budgeting, and execution process of the De-
partment of Defense. 
‘‘(e) ENTREPRENEURIAL
INNOVATION
ADVISORY 
PANELS.— 
‘‘(1) ESTABLISHMENT.—For each military de-
partment, the Secretary concerned shall establish an 
advisory panel that, starting in the first fiscal year 
beginning after the date of the enactment of this 
section, and in each subsequent fiscal year, shall 
identify and recommend to the Secretary concerned 
for designation under subsection (a) eligible pro-
grams based on the criteria described in subsection 
(c)(1). 
‘‘(2) MEMBERSHIP.— 
‘‘(A) COMPOSITION.— 
‘‘(i) IN
GENERAL.—Each advisory 
panel shall be composed of four members 
appointed by the Secretary concerned and 
one member appointed by the chief of the 
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relevant armed force under the jurisdiction 
of the Secretary concerned. 
‘‘(ii) SECRETARY
CONCERNED
AP-
POINTMENTS.—The Secretary concerned 
shall appoint members to the advisory 
panel as follows: 
‘‘(I) Three members who— 
‘‘(aa) have experience with 
private sector entrepreneurial in-
novation, including development 
and implementation of such inno-
vations into well established mar-
kets; and 
‘‘(bb) are not employed by 
the Federal Government. 
‘‘(II) One member who is in the 
Senior Executive Service in the acqui-
sition workforce (as defined in section 
1705 of this title) of the relevant mili-
tary department. 
‘‘(iii) 
SERVICE
CHIEF
APPOINT-
MENT.—The chief of an armed force under 
the jurisdiction of the Secretary concerned 
shall appoint to the advisory panel one 
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member who is a member of such armed 
forces. 
‘‘(B) TERMS.— 
‘‘(i) PRIVATE
SECTOR
MEMBERS.— 
Members 
described 
in 
subparagraph 
(A)(ii)(I) shall serve for a term of three 
years, except that of the members first ap-
pointed— 
‘‘(I) one shall serve a term of one 
year; 
‘‘(II) one shall serve a term of 
two years; and 
‘‘(III) one shall serve a term of 
three years. 
‘‘(ii) FEDERAL
GOVERNMENT
EM-
PLOYEES.—Members described in clause 
(ii)(II) or (iii) of subparagraph (A) shall 
serve for a term of two years, except that 
the first member appointed under subpara-
graph (A)(iii) shall serve for a term of one 
year. 
‘‘(C) CHAIR.—The chair for each advisory 
panel shall be as follows: 
‘‘(i) For the first year of operation of 
each such advisory panel, and every other 
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and expenses incurred in performing duties 
as members of an advisory panel. 
‘‘(ii) PROHIBITION ON COMPENSATION 
OF FEDERAL EMPLOYEES.—Members of an 
advisory panel who are full-time officers or 
employees of the United States or Mem-
bers of Congress may not receive addi-
tional pay, allowances, or benefits by rea-
son of their service on an advisory panel. 
‘‘(3) SELECTION PROCESS.— 
‘‘(A) INITIAL SELECTION.—Each advisory 
panel shall select not less than ten eligible pro-
grams that have submitted an application under 
subsection (b). 
‘‘(B) PROGRAM PLANS.— 
‘‘(i) IN GENERAL.—Each eligible pro-
gram selected under subparagraph (A) 
may submit to the advisory panel that se-
lected such eligible program a program 
plan containing the five-year goals, execu-
tion plans, schedules, and funding needs of 
such eligible program. 
‘‘(ii) SUPPORT.—Each Secretary con-
cerned shall, to the greatest extent prac-
ticable, provide eligible programs selected 
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under subparagraph (A) with access to in-
formation to support the development of 
the program plans described in clause (i). 
‘‘(C) FINAL
SELECTION.—Each advisory 
panel shall recommend to the Secretary con-
cerned for designation under subsection (a) not 
less than five eligible programs that submitted 
a program plan under subparagraph (B) to 
such advisory panel. If there are less than five 
such eligible programs, such advisory panel may 
recommend to the Secretary concerned for des-
ignation under subsection (a) less than five 
such eligible programs. 
‘‘(4) ADMINISTRATIVE
AND
TECHNICAL
SUP-
PORT.—The Secretary concerned shall provide the 
relevant advisory panel with such administrative 
support, staff, and technical assistance as the Sec-
retary concerned determines necessary for such advi-
sory panel to carry out it duties. 
‘‘(5) FUNDING.—The Secretary of Defense may 
use amounts available from the Department of De-
fense Acquisition Workforce Development Account 
established under section 1705 of this title to sup-
port the activities of advisory panels. 
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‘‘(6) INAPPLICABILITY OF FACA.—The Federal 
Advisory Committee Act (5 U.S.C. App) shall not 
apply to the advisory panels established under this 
subsection. 
‘‘(f) REVOCATION
OF DESIGNATION.—If the Sec-
retary concerned determines that a designated program 
cannot reasonably meet the objectives of such designated 
program in the relevant programming proposal referred 
to in subsection (d)(2) or such objectives are irrelevant, 
such Secretary concerned may revoke the designation. 
‘‘(g) REPORT TO CONGRESS.—The Secretary of De-
fense shall submit to Congress an annual report describing 
each designated program and the progress each designated 
program has made toward achieving the objectives of the 
designated program. 
‘‘(h) DEFINITIONS.—In this section: 
‘‘(1) ADVISORY
PANEL.—The term ‘advisory 
panel’ means an advisory panel established under 
subsection (e)(1). 
‘‘(2) DESIGNATED PROGRAM.—The term ‘des-
ignated program’ means an eligible program that 
has been designated as an Entrepreneurial Innova-
tion Project under this section. 
‘‘(3) ELIGIBLE PROGRAM.—The term ‘eligible 
program’ means work performed pursuant to a 
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Phase III agreement (as such term is defined in sec-
tion 9(r)(2) of the Small Business Act (15 U.S.C. 
638(r)(2))).’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of chapter 139 of title 10, 
United States Code, is amended by inserting after 
the item related to section 2359b the following new 
item: 
‘‘2359c. Entrepreneurial Innovation Project designations.’’. 
(b) ESTABLISHMENT DEADLINE.—Not later than 
120 days after the date of the enactment of this Act, the 
Secretaries of each military department shall establish the 
advisory panels described in section 2359c(e) of title 10, 
United States Code, as added by subsection (a). 
(c) FUTURE TRANSFER.— 
(1) TRANSFER AND REDESIGNATION.—Section 
2359c of title 10, United States Code, as added by 
subsection (a), is transferred to chapter 303 of such 
title, added after section 4066, as transferred and 
redesignated by section 1842(b) of the William M. 
(Mac) Thornberry National Defense Authorization 
Act for Fiscal Year 2021 (Public Law 116–283), 
and redesignated as section 4067. 
(2) CLERICAL AMENDMENTS.— 
(A) TARGET
CHAPTER
TABLE
OF
SEC-
TIONS.—The table of sections at the beginning 
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of chapter 303 of title 10, United States Code, 
as added by section 1842(a) of the William M. 
(Mac) Thornberry National Defense Authoriza-
tion Act for Fiscal Year 2021 (Public Law 
116–283), is amended by inserting after the 
item related to section 4066 the following new 
item: 
‘‘4067. Entrepreneurial Innovation Project designations.’’. 
(B) ORIGIN
CHAPTER
TABLE
OF
SEC-
TIONS.—The table of sections at the beginning 
of chapter 139 of title 10, United States Code, 
is amended by striking the item relating to sec-
tion 2359c. 
(3) EFFECTIVE DATE.—The amendments made 
by this subsection shall take effect on January 1, 
2022. 
(4) REFERENCES; SAVING PROVISION; RULE OF 
CONSTRUCTION.—Sections 1883 through 1885 of 
the William M. (Mac) Thornberry National Defense 
Authorization Act for Fiscal Year 2021 (Public Law 
116–283) shall apply with respect to the amend-
ments made under this subsection as if such amend-
ments were made under title XVIII of such Act. 
Æ 
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