Bill Summary
This is a bill that aims to improve innovation in defense procurement in the United States. It seeks to align the Small Business Innovation Research Program and Small Business Technology Transfer Program with the National Defense Science and Technology Strategy. It also includes provisions for a pilot program for domestic investment under the SBIR program, cybersecurity assistance for SBIR and STTR programs, and a proof of concept partnership program for the Department of Defense. Additionally, the bill modifies the Defense Research and Development Rapid Innovation Program and establishes joint reserve detachments at the Defense Innovation Unit. These detachments will be composed of members of the reserve components with relevant private sector experience and will have responsibilities such as increasing collaboration between the defense industry and commercial industry and identifying technology requirements for the Department of Defense. The bill also includes a requirement for a report on the implementation of the detachments and associated costs.
Possible Impacts
1. The pilot program for domestic investment under the SBIR program could give small businesses owned by venture capital operating companies, hedge funds, or private equity firms more opportunities for funding, potentially leading to increased innovation in defense procurement. This could benefit the people working for these small businesses by providing them with more resources and job opportunities.
2. The alignment of the Small Business Innovation Research Program and Small Business Technology Transfer Program with the National Defense Science and Technology Strategy could potentially limit the types of research topics that are selected for these programs. This could impact researchers and small businesses who may be interested in pursuing different areas of research that are not aligned with the strategy.
3. The establishment of joint reserve detachments at the Defense Innovation Unit could provide reserve members with the opportunity to work on projects related to national security and technology. This could potentially benefit both the reserve members by giving them valuable experience and skills, as well as the Department of Defense by providing them with access to a diverse pool of talent.
[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3014 Introduced in House (IH)]
<DOC>
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
concerned
_______________________________________________________________________
A BILL
To amend title 10, United States Code, and the Small Business Act to
improve innovation in defense procurement, 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 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.
Sec. 2. Alignment of the Small Business Innovation Research Program and
Small Business Technology Transfer Program
of the Department of Defense with the
National Defense Science and Technology
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
Innovation 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 NATIONAL DEFENSE SCIENCE
AND TECHNOLOGY 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
Program (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 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 authority'' 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 accordance
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 Congress that the
Administrator of the Small Business Administration should promulgate
regulations to carry out the requirements under section 9(dd) of the
Small Business Act (15 U.S.C. 638(dd)) that--
(1) permit small business concerns that are majority-owned
by multiple venture capital operating companies, hedge funds,
or private equity firms to participate in the SBIR program in
accordance with such section;
(2) provide specific information regarding eligibility,
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 concerns in the United States
by prohibiting large entities 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 notwithstanding the requirements
of section 9(dd) of the Small Business Act (15 U.S.C. 638(dd)),
the Secretary of Defense shall create and administer a program
to be known as the ``Domestic Investment Pilot Program'' under
which the Secretary and the service acquisition executive for
each military department may make a SBIR award to a small
business concern that is majority-owned by multiple venture
capital operating companies, hedge funds, or private equity
firms without providing the written 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 procedures that are open
to all eligible small business concerns.
(3) Evaluation criteria.--In carrying out the Domestic
Investment Pilot Program, the Secretary 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;
(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 operating company'',
``hedge fund'', and ``private equity firm'' have the meanings
given those terms, respectively, in section 3 of the Small
Business Act (15 U.S.C. 632).
SEC. 4. CYBERSECURITY TECHNICAL AND BUSINESS ASSISTANCE FOR SBIR AND
STTR PROGRAMS.
Section 9(q)(1) of the Small Business Act (15 U.S.C. 638(q)(1)) is
amended--
(1) in the matter preceding subparagraph (A), by inserting
``cybersecurity,'' after ``product sales,''; and
(2) in subparagraph (A), by striking ``decisions'' and
inserting ``decisions, including decisions relating to
cybersecurity practices''.
SEC. 5. PHASE 0 PROOF OF CONCEPT PARTNERSHIP PROGRAM 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 appears and
inserting ``A covered agency head'';
(3) by striking ``the Director'' each place it appears 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 program of
the National Institutes of Health, the Director
of the National Institutes of Health; or
``(ii) with respect to the STTR program of
the Department of Defense, the Secretary of
Defense;''; and
(B) in subparagraph (C), by striking ``in the
National Institutes of Health's STTR program'' and
inserting ``in either the STTR program of the
Department of Defense or the STTR program of the
National Institutes of Health''; and
(5) in paragraph (4)(A), by inserting ``participating in
the STTR program administered by such agency head'' after ``a
qualifying institution''.
SEC. 6. MODIFICATION TO THE DEFENSE RESEARCH AND DEVELOPMENT RAPID
INNOVATION PROGRAM.
(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 report on the program established
under section 2359a(b)(3) of title 10, United States Code (commonly
known as the ``Defense Research and Development Rapid Innovation
Program''), which shall include--
(1) with respect to the two fiscal years preceding 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 Innovation Research Program
projects; and
(C) a list of Small Business Innovation Research
Program projects that received funding under the
program that were included in major defense acquisition
programs (as defined in section 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, reducing 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 DETACHMENTS AT DEFENSE
INNOVATION UNIT.
(a) Establishment.--The Secretary of Defense, in consultation with
the Secretaries of the military departments, shall establish not fewer
than three joint reserve detachments (referred to in this section as
``Detachments'') 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 purposes.
(b) Composition.--Each Detachment shall be composed 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 Research and
Engineering.
(c) Responsibilities.--The Detachments shall have the following
responsibilities:
(1) Each Detachment shall provide the Department of Defense
with expertise, analysis, alternatives for innovation, and
opportunities for greater engagement and collaboration between
the defense innovation ecosystem and commercial industry.
(2) Each Detachment shall, on an ongoing basis--
(A) recruit, retain, and employ members of the
reserve components who possess relevant private sector
experience, as described in subsection (b);
(B) partner with the military services, the
combatant commands, and other Department of Defense
organizations to seek and rapidly prototype advanced
commercial solutions while lowing the barrier to entry
to serve defense requirements;
(C) increase awareness of--
(i) the technology portfolios of the
Defense 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 Authorization
Act for Fiscal Year 2019 (Public Law 115-232;
132 Stat. 1679);
(D) capitalize on the growing investment in
research and development made by the commercial
industry in assessing and maturing dual-use
technologies; and
(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 Detachments.--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 subsection (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 Engineering shall submit to the congressional
defense committees a report that includes--
(A) an organizational plan for the Detachments;
(B) the estimated costs of establishing the
Detachments; and
(C) a timeline specifying when each Detachment will
attain initial operational capability and full
operational capability, respectively.
(2) Consultation.--In preparing the report required under
paragraph (1), the Under Secretary of Defense for Research and
Engineering shall consult with the Director of the Defense
Innovation Unit and the head of each military service.
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