‘‘(B) fix the base pay compensation of an em-
ployee appointed under this subsection— 
‘‘(i) without regard to any other provision 
of law, including the General Schedule under 
section 5332 of title 5; and 
‘‘(ii) at a rate determined by the Secretary 
that does not exceed the amount of annual com-
pensation (excluding expenses) established by 
section 102 of title 3. 
‘‘(2) In carrying out paragraph (1), the Secretary 
shall— 
‘‘(A) make lawful efforts to recruit a diverse 
workforce, including individuals under represented in 
clinical and other relevant technical and non-tech-
nical areas of expertise, including racial and ethnic 
minorities; and 
‘‘(B) recruit employees with a variety of profes-
sional experiences and backgrounds, or dem-
onstrated expertise in a wide range of relevant dis-
ciplines and management skills. 
‘‘(3) If the Secretary determines that maximum num-
ber of positions under paragraph (1) is insufficient, the 
Secretary shall submit to the Committees on Veterans’ Af-
fairs of the Senate and House of Representatives a written 
notification of such determination. 
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‘‘(4) The Secretary may enter into an agreement with 
a private entity to identify and recruit highly qualified 
candidates for a position described in paragraph (1). 
‘‘(b) OTHER EMPLOYEES.—The Secretary may use 
any other authority under this title to hire administrative, 
financial, clerical, and other employees necessary to sup-
port employees appointed under subsection (a). 
‘‘(c) WAIVER OF INTERGOVERNMENTAL PERSONNEL 
ACT MOBILITY PROGRAM LIMITS.—The Secretary may 
waive the limit on the period and number of assignments 
required under section 3372(a) of title 5 with respect to 
an individual who carries out the function established by 
section 7391(b) of this title under the mobility program 
under subchapter VI of chapter 33 of such title (commonly 
referred to as the ‘Intergovernmental Personnel Act Mo-
bility Program’). 
‘‘(d) 
AUTHORITY
TO
ACCEPT
FEDERAL 
DETAILEES.—Upon request of the Secretary, the head of 
any Federal department or agency may detail, on a reim-
bursable or nonreimbursable basis (as determined by the 
Secretary and such head), any personnel of that depart-
ment or agency to the Department to assist in carrying 
out the function of the Office of Innovation. Such a detail 
may not exceed three years. 
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‘‘(e) RECORDKEEPING.—The Secretary shall keep 
records regarding the exercise of authorities under this 
section. Such records shall include the following: 
‘‘(1) the number of appointments made; 
‘‘(2) the types of positions filled, including ti-
tles, occupational series, and grade; 
‘‘(3) the number of positions filled for which 
notices were publicly issued; 
‘‘(4) the number of qualified applicants who ap-
plied for such positions; 
‘‘(5) the qualification criteria for such positions; 
and, 
‘‘(6) the demographic information of individuals 
hired for such positions. 
‘‘(f) REPORT.—Not less than once annually, the Sec-
retary shall submit to the Committees on Veterans’ Affairs 
of the Senate and House of Representatives a report on 
appointments under this section. Such report shall include 
the number of such appointments and an explanation of 
how such employees carry out the function established by 
section 7391(b) of this title. 
‘‘§ 7393. Acceleration fund 
‘‘(a) ESTABLISHMENT.—There is established an ac-
count, to be known as the ‘Veterans Health Care Innova-
tion Acceleration Fund’ (in this section referred to as the 
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‘Fund’), which shall be available to carry out the function 
of the Office of Innovation, in addition to such amounts 
that are otherwise available for such purpose. To manage 
the fund, the Secretary may— 
‘‘(1) accept monies from authorized sources for 
the Fund; 
‘‘(2) accept and distribute monies within the 
Department as the Secretary determines necessary; 
‘‘(3) establish a health care franchise function; 
and 
‘‘(4) pay for expenses (including information 
technology or acquisition, advisory, or legal services, 
whether provided by an employee of the Department 
or pursuant to an agreement with a non-Department 
entity) that the Secretary determines necessary to 
carry out the function of the Office of Innovation, 
without regard to restrictions on funding type. 
‘‘(b) AUTHORIZATION
OF
APPROPRIATIONS.—(1) 
There are authorized to be appropriated to the Fund such 
sums as may be necessary to carry out the function of 
the Office of Innovation. Such sums shall remain available 
until expended or five years after receipt. 
‘‘(2) The budget request for the Fund shall be sepa-
rate from the rest of the budget of the Department. 
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‘‘(3) Appropriations for the Fund shall be separate 
and distinct from the rest of the budget for the Depart-
ment and not affect annual operational dollar allocations. 
‘‘(c) NON-PROFIT CORPORATIONS.—To support the 
administration of the Fund with regard to acceptance of 
certain types of external funding, the Secretary shall au-
thorize existing nonprofit corporations, established under 
section 7361 of this title, to carry out the function of the 
Office of Innovation. 
‘‘(d) REPORT TO CONGRESS.—The Secretary shall 
submit to Congress a detailed account, program, and 
project allocations of the amount recommended for alloca-
tion in a fiscal year from amounts in the Fund— 
‘‘(1) for Fiscal Years 2026 and 2027, not later 
than 60 days after the date of enactment of the In-
novation for VA Technology and Entrepreneurship 
Act; and 
‘‘(2) for each fiscal year thereafter through 
2035, as part of the annual budget submission of 
the President under section 1105(a) of title 31. 
‘‘§ 7394. Agreements with non-Department entities for 
access to key assets of the Department 
‘‘(a) AUTHORITY.—The Secretary may enter into an 
agreement under which the Secretary provides a non-De-
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partment entity access to a key asset of the Department 
so such entity may develop a technology or service that— 
‘‘(1) supports the strategic plan of the Depart-
ment regarding health care; and 
‘‘(2) addresses a veteran-specific core com-
petency. 
‘‘(b) FEES.—(1) Subject to paragraphs (2) and (3), 
the Secretary shall negotiate fees under this section on 
a case-by-case basis, taking into consideration factors in-
cluding the costs and benefits to the United States of such 
agreement. 
‘‘(2) The Secretary shall discount a fee under this 
section if the entity is a small business concern owned and 
controlled by a veteran. 
‘‘(3) The Secretary shall not charge a fee under this 
section if the entity is a small business concern owned and 
controlled by a veteran with a service-connected disability. 
‘‘(c) DEFINITIONS.—In this section: 
‘‘(1) The term ‘key asset’ includes the fol-
lowing: 
‘‘(A) Subject matter expertise & perspec-
tive. 
‘‘(B) Properly protected data sets. 
‘‘(C) Research evaluations, studies, and 
trials. 
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‘‘(D) Customer feedback and insights. 
‘‘(E) Simulation and production test envi-
ronments. 
‘‘(F) Health care professionals, students, 
and trainees. 
‘‘(G) Advanced manufacturing and three- 
dimensional printing. 
‘‘(H) Engagement from other Federal enti-
ties. 
‘‘(I) A network of academic affiliates. 
‘‘(2) The term ‘veteran-specific core com-
petency’ means a health condition that the Secretary 
determines disproportionately affects veterans. Such 
term includes the following: 
‘‘(A) Prostheses. 
‘‘(B) Spinal cord injury. 
‘‘(C) Toxic exposure. 
‘‘(D) Traumatic brain injury. 
‘‘(E) Mental health (including suicide pre-
vention and post-traumatic stress disorder); 
‘‘(F) Diabetes. 
‘‘(G) Heart disease. 
‘‘(H) Obesity. 
‘‘(I) Cancer. 
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‘‘§ 7395. Advance market commitments 
‘‘(a) AUTHORITY.—The Secretary may enter into an 
advance market commitment, under which the Secretary 
shall guarantee to purchase, for a predetermined price, a 
technology or service provided by an entity that addresses 
an unmet need in the provision of health care to veterans. 
‘‘(b) REQUIREMENTS.—An advanced market commit-
ment under this section shall include the following: 
‘‘(1) Clearly defined and transparent rules. 
‘‘(2) Clear definition of the technology or serv-
ice to ensure safety, effectiveness, and feasible deliv-
ery. 
‘‘(3) Dispute settlement mechanisms. 
‘‘(4) The ability to modify the terms of the 
agreement on the basis of new information regarding 
the number of veterans to be served with such tech-
nology or service. 
‘‘(c) REPORT.—Not later than 120 days after exe-
cuting an advance market agreement, the Secretary shall 
submit to the House and Senate Committees on Veterans 
Affairs an annual report on the status and efficacy of such 
agreement. 
‘‘§ 7396. Other transactional authorities 
‘‘(a) AUTHORITY.—The Secretary may enter into an 
agreement, other than a contract, cooperative agreement, 
or grant agreement, with a non-Department entity that 
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principally operates in the United States, to conduct ac-
tivities associated with basic or applied research, proto-
typing, or production deployment, if— 
‘‘(1) the Senior Procurement Executive of the 
Department has determined that a contract, cooper-
ative agreement, or grant agreement is not feasible 
or appropriate; and 
‘‘(2) the cost to the United States to carry out 
such agreement does not exceed— 
‘‘(A) $10,000,000 (including all options); 
or 
‘‘(B) a greater amount that the Senior 
Procurement Executive determines appropriate. 
‘‘(b) LIMITATION.—The only kinds of research on 
human embryonic stem cells that may be conducted pursu-
ant to an agreement under this section are the following: 
‘‘(1) Research involving the derivation and use 
of human embryonic germ cells from fetal tissue 
that complies with— 
‘‘(A) sections 498, 498A, and 498B of the 
Public Health Service Act (42 U.S.C. 289g, 
289g–1, 289–2); 
‘‘(B) title 45, Code of Federal Regulations, 
part 46, subpart B; 
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‘‘(C) applicable regulations of the Food 
and Drug Administration; and 
‘‘(D) any other applicable Federal, State, 
or local law. 
‘‘(2) Research on existing human embryonic 
stem cell lines in accordance with criteria established 
by the Director of the National Institutes of Health. 
‘‘(c) REIMBURSEMENT.—Any amounts received by 
the Secretary under this section shall be used to reimburse 
the accounts from which funds were used to incur the ex-
penses of carrying out this section. 
‘‘(d) REPORTING; TRANSPARENCY.—The Secretary 
shall— 
‘‘(1) submit to the appropriate congressional 
committees— 
‘‘(A) a copy of each determination under 
subsection (a)(1); 
‘‘(B) not less than twice each year, a re-
port on agreements made under this section; 
and 
‘‘(C) upon request, any information re-
garding an agreement made under this section; 
and 
‘‘(2) ensure that the terms of an agreement 
under this section permit the Comptroller General of 
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