SEC. 2. PRIZE PROGRAM FOR THE DEVELOPMENT OF A 
FULLY-INTEGRATED 
ELECTRONIC 
HEALTH 
RECORDS PROGRAM FOR USE BY THE DE-
PARTMENT OF DEFENSE AND THE DEPART-
MENT OF VETERANS AFFAIRS. 
(a) PRIZE AUTHORITY.— 
(1) IN
GENERAL.—The Secretary of Defense 
and the Secretary of Veterans Affairs shall jointly 
carry out a program to award a cash prize in the 
amount of $50,000,000 and contract to an entity 
that develops a fully-integrated electronic health 
records program for national use by the Department 
of Defense and the Department of Veterans Affairs. 
(2) ADVERTISING AND SOLICITATION OF COM-
PETITORS.— 
(A) ADVERTISING.—The Secretaries shall 
widely advertise prize competitions under this 
section to encourage broad participation by re-
searchers, large and small businesses, institu-
tions of higher education, and any other quali-
fied applicants, including veterans. 
(B) ANNOUNCEMENT THROUGH FEDERAL 
REGISTER NOTICE.—The Secretaries shall an-
nounce each prize competition under this sec-
tion by publishing a notice in the Federal Reg-
ister. This notice shall include essential ele-
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ments of the competition such as the subject of 
the competition, the duration of the competi-
tion, the eligibility requirements for participa-
tion in the competition, the process for partici-
pants to register for the competition, the 
amount of the prize, and the criteria for award-
ing the prize and contract. 
(3) ANNOUNCEMENT
OF
PRIZES.—The Sec-
retary may not issue a notice required by paragraph 
(2)(B) until all the funds needed to pay out the an-
nounced amount of the prize have been appro-
priated. 
(b) ELIGIBILITY.—To be eligible to win a prize under 
this section, an individual or entity— 
(1) shall have complied with all the require-
ments in accordance with the Federal Register no-
tice required under subsection (a)(2)(B); 
(2) in the case of a private entity, shall be in-
corporated in and maintain a primary place of busi-
ness in the United States, and in the case of an in-
dividual, whether participating singly or in a group, 
shall be a citizen of, or an alien lawfully admitted 
for permanent residence in, the United States; and 
(3) shall not be a Federal entity, a Federal em-
ployee acting within the scope of his employment, or 
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an employee of a national laboratory acting within 
the scope of his employment. 
(c) JOINT PANEL.— 
(1) ESTABLISHMENT.—The Secretary of De-
fense and the Secretary of Veterans Affairs shall es-
tablish a joint panel to establish the criteria for the 
development of a fully-integrated electronic health 
records program eligible for an award and contract 
under this section to ensure that the program meets 
the requirements of the Department of Defense and 
the Department of Veterans Affairs. 
(2) MEMBERSHIP.— 
(A) IN
GENERAL.—The members of the 
joint panel shall be— 
(i) one physician from each of the 
military departments, to be appointed by 
the Secretary of the military department 
concerned; 
(ii) two physicians employed by the 
Department of Veterans Affairs, to be ap-
pointed by the Secretary of Veterans Af-
fairs; and 
(iii) two representatives of the Vet-
erans Benefits Administration of the De-
partment of Veterans Affairs, to be ap-
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pointed by the Secretary of Veterans Af-
fairs. 
(B) DEADLINE FOR APPOINTMENT.—Mem-
bers of the joint panel shall be appointed by not 
later than 14 days after the date of the enact-
ment of this Act. Any member who is not ap-
pointed by such deadline shall not be appointed 
to the panel. 
(3) DEADLINE FOR CRITERIA.—The joint panel 
shall establish criteria with sufficient specificity for 
development, taking best practices of private and 
public electronic health records under consideration. 
If the panel fails to agree on such criteria or if an 
insufficient number of members are appointed to the 
panel before the deadline under paragraph (2)(B), 
the National Health Information Technology Coordi-
nator shall determine such criteria, taking best prac-
tices of private and public electronic health record 
systems into consideration. 
(d) DEADLINE FOR SUBMISSIONS.—The deadline for 
the submission of an application to participate in the com-
petition under this section is the date that is one year after 
the date on which the criteria are established under sub-
section (c), or if such date falls on a weekend, the next 
weekday following such date. 
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(e) AWARD SELECTION.—The Secretary of Defense 
and the Secretary of Veterans Affairs shall award prizes 
under this section on the basis of the criteria published 
in the notice required under subsection (a)(2)(B). 
(f) CONTRACT.—Notwithstanding any other provision 
of law, the entity that is awarded a prize under this sec-
tion shall be awarded a contract with the Department of 
Defense and the Department of Veterans Affairs to pro-
vide the fully-integrated electronic health records program 
for which the prize is awarded to the Departments and 
to provide maintenance and support for such program for 
a five-year period and under such contract shall be com-
pensated in an amount of $25,000,000 for each year. 
(g) INTELLECTUAL PROPERTY.— 
(1) TREATMENT
OF
WINNING
INTELLECTUAL 
PROPERTY.—Upon the expiration of the contract re-
ferred to in subsection (e) the intellectual property 
rights in the fully-integrated electronic health 
records program for which a prize is awarded under 
this section shall revert to the Federal Government. 
The entity that is awarded a prize under this section 
shall retain the intellectual property rights in any 
upgrades to the program developed by the entity. 
(2) OTHER INTELLECTUAL PROPERTY.—Except 
as provided in paragraph (1), the Federal Govern-
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ment shall not, by virtue of offering or awarding a 
prize under this section, be entitled to any intellec-
tual property rights derived as a consequence of, or 
direct relation to, the participation by a registered 
participant in a competition authorized by this sec-
tion. This subsection shall not be construed to pre-
vent the Federal Government from negotiating a li-
cense for the use of intellectual property developed 
for a prize competition under this section. 
(h) LIABILITY.— 
(1) WAIVER OF LIABILITY.—The Secretary of 
Defense and the Secretary of Veterans Affairs may 
require registered participants to waive claims 
against the Federal Government (except claims for 
willful misconduct) for any injury, death, damage, or 
loss of property, revenue, or profits arising from the 
registered participants’ participation in a competi-
tion under this section. The Secretary shall give no-
tice of any waiver required under this paragraph in 
the notice required by subsection (a)(2)(B). 
(2) LIABILITY INSURANCE.— 
(A) REQUIREMENTS.—Registered partici-
pants in a prize competition under this section 
shall be required to obtain liability insurance or 
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demonstrate financial responsibility, in amounts 
determined by the Secretary, for claims by— 
(i) a third party for death, bodily in-
jury, or property damage or loss resulting 
from an activity carried out in connection 
with participation in a competition under 
this section; and 
(ii) the Federal Government for dam-
age or loss to Government property result-
ing from such an activity. 
(B) FEDERAL
GOVERNMENT
INSURED.— 
The Federal Government shall be named as an 
additional insured under a registered partici-
pant’s insurance policy required under subpara-
graph (A) with respect to claims described in 
clause (i) of that subparagraph, and registered 
participants shall be required to agree to in-
demnify the Federal Government against third 
party claims for damages arising from or re-
lated to competition activities under this sec-
tion. 
(i) 
NONSUBSTITUTION.—The 
programs 
created 
under this section shall not be considered a substitute for 
Federal research and development programs. 
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(j) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated $50,000,000 to carry out 
this section. 
Æ 
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