10 U.S.C. § 4123 (ARMED FORCES)
§ 4123. Mechanisms to provide funds for defense laboratories and test organizations for research and development of technologies for military missions
(a) Mechanisms to Provide Funds.—
(1) The Secretary of Defense, in consultation with the Secretaries of the military departments, shall establish mechanisms under which the director of a defense laboratory or test organization may use an amount of funds equal to not less than two percent and not more than four percent of all funds available to the defense laboratory or test organization for the following purposes:
(A) To fund innovative basic and applied research that is conducted at the defense laboratory or test organization and supports military missions.
(B) To fund development programs that support the transition of technologies developed by the defense laboratory or test organization into operational use.
(C) To fund workforce development activities that improve the capacity of the defense laboratory or test organization to recruit and retain personnel with necessary scientific and engineering expertise that support military missions.
(D) To fund the repair or minor military construction of the laboratory or test organization infrastructure and equipment, in accordance with subsection (b).
(2) The mechanisms established under paragraph (1) shall provide that funding shall be used under paragraph (1) at the discretion of the director of a defense laboratory or test organization in consultation with the science and technology executive of the military department concerned.
(3) The science and technology executive of a military department may develop policies and guidance to leverage funding and promote cross-laboratory collaboration, including with laboratories or test organizations of other military departments.
(4) After consultation with the science and technology executive of the military department concerned, the director of a defense laboratory or test organization may charge customer activities a fixed percentage fee, in addition to normal costs of performance, in order to obtain funds to carry out activities authorized by this subsection. The fixed fee may not exceed four percent of costs.
(b) Availability of Funds for Infrastructure Projects.—
Funds shall be available in accordance with subsection (a)(1)(D) only if—
(1) the Secretary notifies the congressional defense committees of the total cost of the project before the date on which the Secretary uses the mechanism under such subsection for such project; and
(2) the Secretary ensures that the project complies with the applicable cost limitations in—
(A) section 2805(d) of this title, with respect to revitalization and recapitalization projects; and
(B) section 2811 of this title, with respect to repair projects.
(c) Release and Dissemination of Information on Contributions From Use of Authority to Military Missions.—
(1) Collection of information.—
The Secretary shall establish and maintain mechanisms for the continuous collection of information on achievements, best practices identified, lessons learned, and challenges arising in the exercise of the authority in this section.
(2) Release of information.—
The Secretary shall establish and maintain mechanisms as follows:
(A) Mechanisms for the release to the public of information on achievements and best practices described in paragraph (1) in unclassified form.
(B) Mechanisms for dissemination to appropriate civilian and military officials of information on achievements and best practices described in paragraph (1) in classified form.
(d) Test Organization Defined.—
In this section, the term “test organization” means a test organization of the Major Range and Test Facility Base specified in Department of Defense Directive 3200.11 or any successor directive.
(Added Pub. L. 115–91, div. A, title II, § 220(a), Dec. 12, 2017, 131 Stat. 1332, § 2363; amended Pub. L. 115–232, div. A, title II, § 250, Aug. 13, 2018, 132 Stat. 1702; renumbered § 4123, Pub. L. 116–283, div. A, title XVIII, § 1843(b)(1), as added Pub. L. 117–81, div. A, title XVII, § 1701(u)(4)(A), Dec. 27, 2021, 135 Stat. 2153; Pub. L. 119–60, div. A, title II, § 212, Dec. 18, 2025, 139 Stat. 772.)
heading: Editorial Notes
heading: Amendments
text: 2025—Pub. L. 119–60, § 212(1), inserted “and test organizations” after “defense laboratories” in section catchline.
Subsec. (a). Pub. L. 119–60, § 212(2), inserted “or test organization” after “laboratory” wherever appearing.
Subsec. (a)(3). Pub. L. 119–60, § 212(3), inserted “or test organizations” after “laboratories”.
Subsec. (d). Pub. L. 119–60, § 212(4), added subsec. (d).
2021—Pub. L. 116–283, § 1843(b)(1), as added by Pub. L. 117–81, § 1701(u)(4)(A), renumbered section 2363 of this title as this section. A former section 1843(b)(1) of Pub. L. 116–283, which directed the renumbering of section 2363 of this title as section 4103 instead of this section, was repealed by Pub. L. 117–81, § 1701(u)(4)(A), effective as if included therein, so that such renumbering was no longer directed.
2018—Subsec. (c). Pub. L. 115–232 amended subsec. (c) generally. Prior to amendment, subsec. (c) related to annual reports on the use of the authority under subsec. (a).
heading: Statutory Notes and Related Subsidiaries
heading: Effective Date of 2021 Amendment
text: Amendment by Pub. L. 117–81 applicable as if included in the enactment of title XVIII of Pub. L. 116–283 as enacted, see section 1701(a)(2) of Pub. L. 117–81, set out in a note preceding section 3001 of this title and note below.
Amendment by Pub. L. 116–283 effective Jan. 1, 2022, with additional provisions for delayed implementation and applicability of existing law, see section 1801(d) of Pub. L. 116–283, set out as a note preceding section 3001 of this title.