DOD Entrepreneurial Innovation Act

I 118TH CONGRESS 1ST SESSION H. R. 273 To amend chapter 303 of title 10, United States Code, to require the Sec- retary of each military department to identify promising research pro- grams of the Small Business Innovation Research Program or Small Business Technology Transfer Program for inclusion in the future budg- ets and plans of the Department of Defense, and for other purposes. IN THE HOUSE OF REPRESENTATIVES JANUARY 11, 2023 Mr. CALVERT introduced the following bill; which was referred to the Committee on Armed Services A BILL To amend chapter 303 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 Busi- ness 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 Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘DOD Entrepreneurial 4 Innovation Act’’. 5 VerDate Sep 11 2014 02:12 Jan 21, 2023 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H273.IH H273 pbinns on DSKJLVW7X2PROD with $$_JOB 2 •HR 273 IH SEC. 2. ENTREPRENEURIAL INNOVATION PROJECT DES- 1 IGNATIONS. 2 (a) IN GENERAL.— 3 (1) DESIGNATING CERTAIN SBIR AND STTR 4 PROGRAMS AS ENTREPRENEURIAL INNOVATION 5 PROJECTS.—Chapter 303 of title 10, United States 6 Code, is amended by inserting after section 4062 the 7 following new section: 8 ‘‘§ 4063. Entrepreneurial Innovation Project designa- 9 tions 10 ‘‘(a) IN GENERAL.—During the first fiscal year be- 11 ginning after the date of the enactment of this section, 12 and during each subsequent fiscal year, each Secretary 13 concerned, in consultation with the each chief of an armed 14 force under the jurisdiction of the Secretary concerned, 15 shall designate not less than five eligible programs as En- 16 trepreneurial Innovation Projects. 17 ‘‘(b) APPLICATION.—An eligible program seeking 18 designation as an Entrepreneurial Innovation Project 19 under this section shall submit to the Secretary concerned 20 an application at such time, in such manner, and con- 21 taining such information as the Secretary concerned deter- 22 mines appropriate. 23 ‘‘(c) DESIGNATION CRITERIA.—In making designa- 24 tions under subsection (a), the Secretary concerned shall 25 consider— 26 VerDate Sep 11 2014 02:12 Jan 21, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H273.IH H273 pbinns on DSKJLVW7X2PROD with $$_JOB 3 •HR 273 IH ‘‘(1) the potential of the eligible program to— 1 ‘‘(A) advance the national security capa- 2 bilities of the United States; 3 ‘‘(B) provide new technologies or proc- 4 esses, or new applications of existing tech- 5 nologies, that will enable new alternatives to ex- 6 isting programs; and 7 ‘‘(C) provide future cost savings; 8 ‘‘(2) whether an advisory panel has rec- 9 ommended the eligible program for designation; and 10 ‘‘(3) such other criteria that the Secretary con- 11 cerned determines to be appropriate. 12 ‘‘(d) DESIGNATION BENEFITS.— 13 ‘‘(1) FUTURE YEARS DEFENSE PROGRAM IN- 14 CLUSION.—With respect to each designated pro- 15 gram, the Secretary of Defense shall include in the 16 next future-years defense program the estimated ex- 17 penditures of such designated program. In the pre- 18 ceding sentence, the term ‘next future-years defense 19 program’ means the future-years defense program 20 submitted to Congress under section 221 of this title 21 after the date on which such designated program is 22 designated under subsection (a). 23 ‘‘(2) PROGRAMMING PROPOSAL.—Each des- 24 ignated program shall be included by the Secretary 25 VerDate Sep 11 2014 02:12 Jan 21, 2023 Jkt 039200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H273.IH H273 pbinns on DSKJLVW7X2PROD with $$_JOB 4 •HR 273 IH concerned under a separate heading in any program- 1 ming proposals submitted to the Secretary of De- 2 fense. 3 ‘‘(3) PPBE COMPONENT.—Each designated 4 program shall be considered by the Secretary con- 5 cerned as an integral part of the planning, program- 6 ming, budgeting, and execution process of the De- 7 partment of Defense. 8 ‘‘(e) ENTREPRENEURIAL INNOVATION ADVISORY 9 PANELS.— 10 ‘‘(1) ESTABLISHMENT.—For each military de- 11 partment, the Secretary concerned shall establish an 12 advisory panel that, starting in the first fiscal year 13 beginning after the date of the enactment of this 14 section, and in each subsequent fiscal year, shall 15 identify and recommend to the Secretary concerned 16 for designation under subsection (a) eligible pro- 17 grams based on the criteria described in subsection 18 (c)(1). 19 ‘‘(2) MEMBERSHIP.— 20 ‘‘(A) COMPOSITION.— 21 ‘‘(i) IN GENERAL.—Each advisory 22 panel shall be composed of four members 23 appointed by the Secretary concerned and 24 one member appointed by the chief of the 25 VerDate Sep 11 2014 02:12 Jan 21, 2023 Jkt 039200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H273.IH H273 pbinns on DSKJLVW7X2PROD with $$_JOB 5 •HR 273 IH relevant armed force under the jurisdiction 1 of the Secretary concerned. 2 ‘‘(ii) SECRETARY CONCERNED AP- 3 POINTMENTS.—The Secretary concerned 4 shall appoint members to the advisory 5 panel as follows: 6 ‘‘(I) Three members who— 7 ‘‘(aa) have experience with 8 private sector entrepreneurial in- 9 novation, including development 10 and implementation of such inno- 11 vations into well established mar- 12 kets; and 13 ‘‘(bb) are not employed by 14 the Federal Government. 15 ‘‘(II) One member who is in the 16 Senior Executive Service in the acqui- 17 sition workforce (as defined in section 18 1705 of this title) of the relevant mili- 19 tary department. 20 ‘‘(iii) SERVICE CHIEF APPOINT- 21 MENT.—The chief of an armed force under 22 the jurisdiction of the Secretary concerned 23 shall appoint to the advisory panel one 24 VerDate Sep 11 2014 02:12 Jan 21, 2023 Jkt 039200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H273.IH H273 pbinns on DSKJLVW7X2PROD with $$_JOB 6 •HR 273 IH member who is a member of such armed 1 forces. 2 ‘‘(B) TERMS.— 3 ‘‘(i) PRIVATE SECTOR MEMBERS.— 4 Members described in subparagraph 5 (A)(ii)(I) shall serve for a term of three 6 years, except that of the members first ap- 7 pointed— 8 ‘‘(I) one shall serve a term of one 9 year; 10 ‘‘(II) one shall serve a term of 11 two years; and 12 ‘‘(III) one shall serve a term of 13 three years. 14 ‘‘(ii) FEDERAL GOVERNMENT EM- 15 PLOYEES.—Members described in clause 16 (ii)(II) or (iii) of subparagraph (A) shall 17 serve for a term of two years, except that 18 the first member appointed under subpara- 19 graph (A)(iii) shall serve for a term of one 20 year. 21 ‘‘(C) CHAIR.—The chair for each advisory 22 panel shall be as follows: 23 ‘‘(i) For the first year of operation of 24 each such advisory panel, and every other 25 VerDate Sep 11 2014 02:12 Jan 21, 2023 Jkt 039200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H273.IH H273 pbinns on DSKJLVW7X2PROD with $$_JOB 7 •HR 273 IH year thereafter, the member appointed 1 under subparagraph (A)(iii). 2 ‘‘(ii) For the second year of operation 3 of each such advisory panel, and every 4 other year thereafter, the member ap- 5 pointed under subparagraph (A)(ii)(II). 6 ‘‘(D) VACANCIES.—A vacancy in an advi- 7 sory panel shall be filled in the same manner as 8 the original appointment. 9 ‘‘(E) CONFLICT OF INTEREST.—Members 10 and staff of each advisory panel shall disclose 11 to the relevant Secretary concerned, and such 12 Secretary concerned shall mitigate to the extent 13 practicable, any professional or organizational 14 conflict of interest of such members or staff 15 arising from service on the advisory panel. 16 ‘‘(F) COMPENSATION.— 17 ‘‘(i) PRIVATE SECTOR MEMBER COM- 18 PENSATION.—Except as provided in clause 19 (ii), members of an advisory panel, and the 20 support staff of such members, shall be 21 compensated at a rate determined reason- 22 able by the Secretary concerned and shall 23 be reimbursed in accordance with section 24 5703 of title 5 for reasonable travel costs 25 VerDate Sep 11 2014 02:12 Jan 21, 2023 Jkt 039200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H273.IH H273 pbinns on DSKJLVW7X2PROD with $$_JOB 8 •HR 273 IH and expenses incurred in performing duties 1 as members of an advisory panel. 2 ‘‘(ii) PROHIBITION ON COMPENSATION 3 OF FEDERAL EMPLOYEES.—Members of an 4 advisory panel who are full-time officers or 5 employees of the United States or Mem- 6 bers of Congress may not receive addi- 7 tional pay, allowances, or benefits by rea- 8 son of their service on an advisory panel. 9 ‘‘(3) SELECTION PROCESS.— 10 ‘‘(A) INITIAL SELECTION.—Each advisory 11 panel shall select not less than ten eligible pro- 12 grams that have submitted an application under 13 subsection (b). 14 ‘‘(B) PROGRAM PLANS.— 15 ‘‘(i) IN GENERAL.—Each eligible pro- 16 gram selected under subparagraph (A) 17 may submit to the advisory panel that se- 18 lected such eligible program a program 19 plan containing the five-year goals, execu- 20 tion plans, schedules, and funding needs of 21 such eligible program. 22 ‘‘(ii) SUPPORT.—Each Secretary con- 23 cerned shall, to the greatest extent prac- 24 ticable, provide eligible programs selected 25 VerDate Sep 11 2014 02:12 Jan 21, 2023 Jkt 039200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H273.IH H273 pbinns on DSKJLVW7X2PROD with $$_JOB 9 •HR 273 IH under subparagraph (A) with access to in- 1 formation to support the development of 2 the program plans described in clause (i). 3 ‘‘(C) FINAL SELECTION.—Each advisory 4 panel shall recommend to the Secretary con- 5 cerned for designation under subsection (a) not 6 less than five eligible programs that submitted 7 a program plan under subparagraph (B) to 8 such advisory panel. If there are less than five 9 such eligible programs, such advisory panel may 10 recommend to the Secretary concerned for des- 11 ignation under subsection (a) less than five 12 such eligible programs. 13 ‘‘(4) ADMINISTRATIVE AND TECHNICAL SUP- 14 PORT.—The Secretary concerned shall provide the 15 relevant advisory panel with such administrative 16 support, staff, and technical assistance as the Sec- 17 retary concerned determines necessary for such advi- 18 sory panel to carry out it duties. 19 ‘‘(5) FUNDING.—The Secretary of Defense may 20 use amounts available from the Department of De- 21 fense Acquisition Workforce Development Account 22 established under section 1705 of this title to sup- 23 port the activities of advisory panels. 24 VerDate Sep 11 2014 02:12 Jan 21, 2023 Jkt 039200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H273.IH H273 pbinns on DSKJLVW7X2PROD with $$_JOB 10 •HR 273 IH ‘‘(6) INAPPLICABILITY OF FACA.—Chapter 10 1 of title 5 shall not apply to the advisory panels es- 2 tablished under this subsection. 3 ‘‘(f) REVOCATION OF DESIGNATION.—If the Sec- 4 retary concerned determines that a designated program 5 cannot reasonably meet the objectives of such designated 6 program in the relevant programming proposal referred 7 to in subsection (d)(2) or such objectives are irrelevant, 8 such Secretary concerned may revoke the designation. 9 ‘‘(g) REPORT TO CONGRESS.—The Secretary of De- 10 fense shall submit to Congress an annual report describing 11 each designated program and the progress each designated 12 program has made toward achieving the objectives of the 13 designated program. 14 ‘‘(h) DEFINITIONS.—In this section: 15 ‘‘(1) ADVISORY PANEL.—The term ‘advisory 16 panel’ means an advisory panel established under 17 subsection (e)(1). 18 ‘‘(2) DESIGNATED PROGRAM.—The term ‘des- 19 ignated program’ means an eligible program that 20 has been designated as an Entrepreneurial Innova- 21 tion Project under this section. 22 ‘‘(3) ELIGIBLE PROGRAM.—The term ‘eligible 23 program’ means work performed pursuant to a 24 Phase III agreement (as such term is defined in sec- 25 VerDate Sep 11 2014 02:12 Jan 21, 2023 Jkt 039200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H273.IH H273 pbinns on DSKJLVW7X2PROD with $$_JOB 11 •HR 273 IH tion 9(r)(2) of the Small Business Act (15 U.S.C. 1 638(r)(2))).’’. 2 (2) CLERICAL AMENDMENT.—The table of sec- 3 tions at the beginning of chapter 303 of title 10, 4 United States Code, is amended by striking the item 5 relating to section 4063 and inserting after the item 6 relating to section 4062 the following new item: 7 ‘‘4063. Entrepreneurial Innovation Project designations.’’. (b) ESTABLISHMENT DEADLINE.—Not later than 8 120 days after the date of the enactment of this Act, the 9 Secretaries of each military department shall establish the 10 advisory panels described in section 4063(e) of title 10, 11 United States Code, as added by subsection (a). 12 Æ VerDate Sep 11 2014 02:12 Jan 21, 2023 Jkt 039200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6301 E:\BILLS\H273.IH H273 pbinns on DSKJLVW7X2PROD with $$_JOB