Title: DOD Entrepreneurial Innovation Act
Policy area: Armed Forces and National Security

Summary:
DOD Entrepreneurial Innovation Act
This bill requires each military department to annually designate at least five eligible programs as Entrepreneurial Innovation Projects. Eligible programs are certain projects currently pursuing commercialization objectives that initially received funding for research and development through the Small Business Innovation Research Program or Small Business Technology Transfer Program. Once designated, programs must be included in future budgets and plans of the Department of Defense.
Each military department must establish an advisory panel to identify and recommend eligible programs for designation.

[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2005 Introduced in House (IH)]

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117th CONGRESS
  1st Session
                                H. R. 2005

 To amend chapter 139 of title 10, United States Code, to require the 
 Secretary of each military department to identify promising research 
  programs of the Small Business Innovation Research Program or Small 
   Business Technology Transfer Program for inclusion in the future 
budgets and plans of the Department of Defense, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 18, 2021

Mr. Calvert (for himself and Mr. Crist) introduced the following bill; 
         which was referred to the Committee on Armed Services

_______________________________________________________________________

                                 A BILL


 
 To amend chapter 139 of title 10, United States Code, to require the 
 Secretary of each military department to identify promising research 
  programs of the Small Business Innovation Research Program or Small 
   Business Technology Transfer Program for inclusion in the future 
budgets and plans of the Department of Defense, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``DOD Entrepreneurial Innovation 
Act''.

SEC. 2. ENTREPRENEURIAL INNOVATION PROJECT DESIGNATIONS.

    (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:
``Sec. 2359c Entrepreneurial Innovation Project designations
    ``(a) In General.--During the first fiscal year beginning 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 
Entrepreneurial 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 containing such information as the Secretary concerned determines 
appropriate.
    ``(c) Designation Criteria.--In making designations under 
subsection (a), the Secretary concerned shall consider--
            ``(1) the potential of the eligible program to--
                    ``(A) advance the national security capabilities of 
                the United States;
                    ``(B) provide new technologies or processes, or new 
                applications of existing technologies, that will enable 
                new alternatives to existing programs; and
                    ``(C) provide future cost savings;
            ``(2) whether an advisory panel has recommended the 
        eligible program for designation; and
            ``(3) such other criteria that the Secretary concerned 
        determines to be appropriate.
    ``(d) Designation Benefits.--
            ``(1) Future years defense program inclusion.--With respect 
        to each designated program, the Secretary of Defense shall 
        include in the next future-years defense program the estimated 
        expenditures of such designated program. In the preceding 
        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 designated program shall 
        be included by the Secretary concerned under a separate heading 
        in any programming proposals submitted to the Secretary of 
        Defense.
            ``(3) PPBE component.--Each designated program shall be 
        considered by the Secretary concerned as an integral part of 
        the planning, programming, budgeting, and execution process of 
        the Department of Defense.
    ``(e) Entrepreneurial Innovation Advisory Panels.--
            ``(1) Establishment.--For each military department, 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 programs 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 relevant armed 
                        force under the jurisdiction of the Secretary 
                        concerned.
                            ``(ii) Secretary concerned appointments.--
                        The Secretary concerned shall appoint members 
                        to the advisory panel as follows:
                                    ``(I) Three members who--
                                            ``(aa) have experience with 
                                        private sector entrepreneurial 
                                        innovation, including 
                                        development and implementation 
                                        of such innovations into well 
                                        established markets; and
                                            ``(bb) are not employed by 
                                        the Federal Government.
                                    ``(II) One member who is in the 
                                Senior Executive Service in the 
                                acquisition workforce (as defined in 
                                section 1705 of this title) of the 
                                relevant military department.
                            ``(iii) Service chief appointment.--The 
                        chief of an armed force under the jurisdiction 
                        of the Secretary concerned shall appoint to the 
                        advisory panel one 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 appointed--
                                    ``(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 employees.--
                        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 subparagraph (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 year 
                        thereafter, the member appointed under 
                        subparagraph (A)(iii).
                            ``(ii) For the second year of operation of 
                        each such advisory panel, and every other year 
                        thereafter, the member appointed under 
                        subparagraph (A)(ii)(II).
                    ``(D) Vacancies.--A vacancy in an advisory panel 
                shall be filled in the same manner as the original 
                appointment.
                    ``(E) Conflict of interest.--Members and staff of 
                each advisory panel shall disclose to the relevant 
                Secretary concerned, and such Secretary concerned shall 
                mitigate to the extent practicable, any professional or 
                organizational conflict of interest of such members or 
                staff arising from service on the advisory panel.
                    ``(F) Compensation.--
                            ``(i) Private sector member compensation.--
                        Except as provided in clause (ii), members of 
                        an advisory panel, and the support staff of 
                        such members, shall be compensated at a rate 
                        determined reasonable by the Secretary 
                        concerned and shall be reimbursed in accordance 
                        with section 5703 of title 5 for reasonable 
                        travel costs 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 Members of Congress may 
                        not receive additional pay, allowances, or 
                        benefits by reason of their service on an 
                        advisory panel.
            ``(3) Selection process.--
                    ``(A) Initial selection.--Each advisory panel shall 
                select not less than ten eligible programs that have 
                submitted an application under subsection (b).
                    ``(B) Program plans.--
                            ``(i) In general.--Each eligible program 
                        selected under subparagraph (A) may submit to 
                        the advisory panel that selected such eligible 
                        program a program plan containing the five-year 
                        goals, execution plans, schedules, and funding 
                        needs of such eligible program.
                            ``(ii) Support.--Each Secretary concerned 
                        shall, to the greatest extent practicable, 
                        provide eligible programs selected under 
                        subparagraph (A) with access to information to 
                        support the development of the program plans 
                        described in clause (i).
                    ``(C) Final selection.--Each advisory panel shall 
                recommend to the Secretary concerned 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 
                designation under subsection (a) less than five such 
                eligible programs.
            ``(4) Administrative and technical support.--The Secretary 
        concerned shall provide the relevant advisory panel with such 
        administrative support, staff, and technical assistance as the 
        Secretary concerned determines necessary for such advisory 
        panel to carry out it duties.
            ``(5) Funding.--The Secretary of Defense may use amounts 
        available from the Department of Defense Acquisition Workforce 
        Development Account established under section 1705 of this 
        title to support the activities of advisory panels.
            ``(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 Secretary 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 Defense 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 `designated program' 
        means an eligible program that has been designated as an 
        Entrepreneurial Innovation Project under this section.
            ``(3) Eligible program.--The term `eligible program' means 
        work performed pursuant to a Phase III agreement (as such term 
        is defined in section 9(r)(2) of the Small Business Act (15 
        U.S.C. 638(r)(2))).''.
            (2) Clerical amendment.--The table of sections 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 sections.--The table of 
                sections at the beginning of chapter 303 of title 10, 
                United States Code, as added by section 1842(a) of the 
                William M. (Mac) Thornberry National Defense 
                Authorization 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 sections.--The table of 
                sections at the beginning of chapter 139 of title 10, 
                United States Code, is amended by striking the item 
                relating to section 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 amendments made 
        under this subsection as if such amendments were made under 
        title XVIII of such Act.
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