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 con-
cerned 
A BILL 
To amend title 10, United States Code, and the Small Busi-
ness Act to improve innovation in defense procurement, 
and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE AND TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Accelerating Defense Innovation Act of 2019’’. 
(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 Depart-
ment of Defense with the National Defense Science and Tech-
nology 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 Innova-
tion Program. 
Sec. 7. Establishment of joint reserve detachments at Defense Innovation Unit. 
SEC. 2. ALIGNMENT OF THE SMALL BUSINESS INNOVATION 
RESEARCH PROGRAM AND SMALL BUSINESS 
TECHNOLOGY TRANSFER PROGRAM OF THE 
DEPARTMENT OF DEFENSE WITH THE NA-
TIONAL 
DEFENSE 
SCIENCE 
AND 
TECH-
NOLOGY STRATEGY. 
(a) IN GENERAL.—The Secretary of Defense and 
Secretaries of the military departments shall, to the extent 
possible, align the research topics selected for activities 
conducted under the Small Business Innovation Research 
Program and Small Business Technology Transfer Pro-
gram (as defined under section 9 of the Small Business 
Act (15 U.S.C. 638)) with the National Defense Science 
and Technology Strategy established under section 218 of 
the John S. McCain National Defense Authorization Act 
for Fiscal Year 2019 (Public Law 115–232; 132 Stat. 
1679). 
(b) USE
OF NATIONAL DEFENSE SCIENCE
AND 
TECHNOLOGY STRATEGY TO DETERMINE RESEARCH 
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TOPICS.—Section 9 of the Small Business Act (15 U.S.C. 
638) is amended— 
(1) in subsection (g)(3)(B), by striking ‘‘, in the 
1992 report’’ and all that follows through ‘‘that au-
thority’’ and inserting ‘‘in the National Defense 
Science and Technology Strategy established under 
section 218 of the John S. McCain National Defense 
Authorization Act for Fiscal Year 2019 (Public Law 
115–232; 132 Stat. 1679)’’; and 
(2) in subsection (o)(3)(B), by striking ‘‘, in ac-
cordance with section 2522 of title 10, United States 
Code’’ and inserting ‘‘in the National Defense 
Science and Technology Strategy established under 
section 218 of the John S. McCain National Defense 
Authorization Act for Fiscal Year 2019 (Public Law 
115–232; 132 Stat. 1679)’’. 
SEC. 3. PILOT PROGRAM FOR DOMESTIC INVESTMENT 
UNDER THE SBIR PROGRAM. 
(a) SENSE OF CONGRESS.—It is the sense of Con-
gress that the Administrator of the Small Business Ad-
ministration should promulgate regulations to carry out 
the requirements under section 9(dd) of the Small Busi-
ness Act (15 U.S.C. 638(dd)) that— 
(1) permit small business concerns that are ma-
jority-owned by multiple venture capital operating 
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companies, hedge funds, or private equity firms to 
participate in the SBIR program in accordance with 
such section; 
(2) provide specific information regarding eligi-
bility, participation, and affiliation rules to such 
small business concerns; and 
(3) preserve and maintain the integrity of the 
SBIR program as a program for small business con-
cerns in the United States by prohibiting large enti-
ties or foreign-owned entities from participation in 
the SBIR program. 
(b) DOMESTIC INVESTMENT PILOT PROGRAM.— 
(1) IN GENERAL.—Not later than 1 year after 
the date of the enactment of this Act and notwith-
standing the requirements of section 9(dd) of the 
Small Business Act (15 U.S.C. 638(dd)), the Sec-
retary of Defense shall create and administer a pro-
gram to be known as the ‘‘Domestic Investment 
Pilot Program’’ under which the Secretary and the 
service acquisition executive for each military de-
partment may make a SBIR award to a small busi-
ness concern that is majority-owned by multiple ven-
ture capital operating companies, hedge funds, or 
private equity firms without providing the written 
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determination described under paragraph (2) of such 
section 9(dd). 
(2) LIMITATION.—The Secretary of Defense 
may award not more than 15 percent of the funds 
allocated for the SBIR program of the Department 
of Defense under section 9(f) of the Small Business 
Act (15 U.S.C. 638(f)) to small business concerns 
that are owned in majority part by multiple venture 
capital operating companies, hedge funds, or private 
equity firms through competitive, merit-based proce-
dures that are open to all eligible small business con-
cerns. 
(3) EVALUATION
CRITERIA.—In carrying out 
the Domestic Investment Pilot Program, the Sec-
retary of Defense may not use investment of venture 
capital or investment from hedge funds or private 
equity firms as a criterion for the award of contracts 
under the SBIR program or STTR program. 
(4) ANNUAL
REPORTING.—The Secretary of 
Defense shall include as part of each annual report 
required under section 9(b)(7) of the Small Business 
Act (15 U.S.C. 638(9)(b)(7))— 
(A) information on the implementation of 
the Domestic Investment Pilot Program; 
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(B) the number of proposals received from 
small business concerns that are majority- 
owned by multiple venture capital operating 
companies, hedge funds, or private equity firms 
for the Domestic Investment Pilot Program; 
and 
(C) the number of awards made to such 
small business concerns. 
(5) TERMINATION.—The Domestic Investment 
Pilot Program established under this subsection 
shall terminate on September 30, 2022. 
(c) DEFINITIONS.—In this section: 
(1) SBIR.—The term ‘‘SBIR’’ has the meaning 
given in section 9(e) of the Small Business Act (15 
U.S.C. 638(e)). 
(2) SMALL BUSINESS ACT DEFINITIONS.—The 
terms ‘‘small business concern’’, ‘‘venture capital op-
erating company’’, ‘‘hedge fund’’, and ‘‘private eq-
uity firm’’ have the meanings given those terms, re-
spectively, in section 3 of the Small Business Act 
(15 U.S.C. 632). 
SEC. 4. CYBERSECURITY TECHNICAL AND BUSINESS AS-
SISTANCE FOR SBIR AND STTR PROGRAMS. 
Section 9(q)(1) of the Small Business Act (15 U.S.C. 
638(q)(1)) is amended— 
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(1) in the matter preceding subparagraph (A), 
by inserting ‘‘cybersecurity,’’ after ‘‘product sales,’’; 
and 
(2) in subparagraph (A), by striking ‘‘deci-
sions’’ and inserting ‘‘decisions, including decisions 
relating to cybersecurity practices’’. 
SEC. 5. PHASE 0 PROOF OF CONCEPT PARTNERSHIP PRO-
GRAM FOR THE DEPARTMENT OF DEFENSE. 
Section 9(jj) of the Small Business Act (15 U.S.C. 
638) is amended— 
(1) in paragraph (1), by striking ‘‘The Director 
of the National Institutes of Health’’ and inserting 
‘‘A covered agency head’’; 
(2) by striking ‘‘The Director’’ each place it ap-
pears and inserting ‘‘A covered agency head’’; 
(3) by striking ‘‘the Director’’ each place it ap-
pears and inserting ‘‘a covered agency head’’; 
(4) in paragraph (2)— 
(A) by amending subparagraph (A) to read 
as follows: 
‘‘(A) the term ‘covered agency head’ 
means— 
‘‘(i) with respect to the STTR pro-
gram of the National Institutes of Health, 
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the Director of the National Institutes of 
Health; or 
‘‘(ii) with respect to the STTR pro-
gram of the Department of Defense, the 
Secretary of Defense;’’; and 
(B) in subparagraph (C), by striking ‘‘in 
the National Institutes of Health’s STTR pro-
gram’’ and inserting ‘‘in either the STTR pro-
gram of the Department of Defense or the 
STTR program of the National Institutes of 
Health’’; and 
(5) in paragraph (4)(A), by inserting ‘‘partici-
pating in the STTR program administered by such 
agency head’’ after ‘‘a qualifying institution’’. 
SEC. 6. MODIFICATION TO THE DEFENSE RESEARCH AND 
DEVELOPMENT 
RAPID 
INNOVATION 
PRO-
GRAM. 
(a) INCREASE TO FUNDING.—Section 2359a(b)(3) of 
title 10, United States Code, is amended by striking 
‘‘$3,000,000’’ and inserting ‘‘$6,000,000’’. 
(b) REPORT.—Not later than 180 days after the date 
of the enactment of this Act, the Secretary of Defense 
shall submit to the congressional defense committees a re-
port 
on 
the 
program 
established 
under 
section 
2359a(b)(3) of title 10, United States Code (commonly 
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known as the ‘‘Defense Research and Development Rapid 
Innovation Program’’), which shall include— 
(1) with respect to the two fiscal years pre-
ceding the submission of the report— 
(A) a description of the total number of 
proposals funded under the program; 
(B) the percent of funds made available 
under the program for Small Business Innova-
tion Research Program projects; and 
(C) a list of Small Business Innovation Re-
search Program projects that received funding 
under the program that were included in major 
defense acquisition programs (as defined in sec-
tion 2430 of title 10, United States Code) and 
other defense acquisition programs that meet 
critical national security needs; and 
(2) an assessment on the effectiveness of the 
program in stimulating innovation technologies, re-
ducing acquisition or life-cycle costs, addressing 
technical risk, and improving the timeliness and 
thoroughness of test and evaluation outcomes. 
SEC. 7. ESTABLISHMENT OF JOINT RESERVE DETACH-
MENTS AT DEFENSE INNOVATION UNIT. 
(a) ESTABLISHMENT.—The Secretary of Defense, in 
consultation with the Secretaries of the military depart-
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ments, shall establish not fewer than three joint reserve 
detachments (referred to in this section as ‘‘Detach-
ments’’) at locations of the Defense Innovation Unit— 
(1) to support engagement and collaboration 
with commercial innovation hubs; and 
(2) to accelerate the transition and adoption of 
commercial technologies for national security pur-
poses. 
(b) COMPOSITION.—Each Detachment shall be com-
posed of members of the reserve components who possess 
relevant private sector experience in the fields of business, 
acquisition, intelligence, engineering, technology transfer, 
science, mathematics, contracting, procurement, logistics, 
cyberspace security, or such other fields as are determined 
to be relevant by the Under Secretary of Defense for Re-
search and Engineering. 
(c) RESPONSIBILITIES.—The Detachments shall have 
the following responsibilities: 
(1) Each Detachment shall provide the Depart-
ment of Defense with expertise, analysis, alternatives 
for innovation, and opportunities for greater engage-
ment and collaboration between the defense innova-
tion ecosystem and commercial industry. 
(2) Each Detachment shall, on an ongoing 
basis— 
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(A) recruit, retain, and employ members of 
the reserve components who possess relevant 
private sector experience, as described in sub-
section (b); 
(B) partner with the military services, the 
combatant commands, and other Department of 
Defense organizations to seek and rapidly pro-
totype advanced commercial solutions while 
lowing the barrier to entry to serve defense re-
quirements; 
(C) increase awareness of— 
(i) the technology portfolios of the De-
fense Innovation Unit; and 
(ii) the technology requirements of the 
Department of Defense as identified in the 
National Defense Science and Technology 
Strategy developed under section 218 of 
the John S. McCain National Defense Au-
thorization Act for Fiscal Year 2019 (Pub-
lic Law 115–232; 132 Stat. 1679); 
(D) capitalize on the growing investment 
in research and development made by the com-
mercial industry in assessing and maturing 
dual-use technologies; and 
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(E) carry out such other activities as may 
be directed by the Under Secretary of Defense 
for Research and Engineering. 
(d) DEADLINE FOR ESTABLISHMENT OF DETACH-
MENTS.—The Secretary of Defense shall ensure that— 
(1) at least one Detachment is established on or 
before October 1, 2020; and 
(2) all three Detachments required under sub-
section (a) are established on or before October 1, 
2022. 
(e) IMPLEMENTATION REPORT.— 
(1) IN
GENERAL.—Not later than 120 days 
after the date of the enactment of this Act, the 
Under Secretary of Defense for Research and Engi-
neering shall submit to the congressional defense 
committees a report that includes— 
(A) an organizational plan for the Detach-
ments; 
(B) the estimated costs of establishing the 
Detachments; and 
(C) a timeline specifying when each De-
tachment will attain initial operational capa-
bility and full operational capability, respec-
tively. 
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(2) CONSULTATION.—In preparing the report 
required under paragraph (1), the Under Secretary 
of Defense for Research and Engineering shall con-
sult with the Director of the Defense Innovation 
Unit and the head of each military service. 
Æ 
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