Sec. 842. Designating certain SBIR and STTR programs as entrepreneurial innovation projects
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The Secretary of Defense and the covered Secretaries concerned shall each establish and carry out a pilot program to more effectively transition projects that have completed a Phase II SBIR or STTR award and that present the potential to meet operational needs of elements of the Department of Defense to Phase III by designating eligible programs as Entrepreneurial Innovation Projects. Not later than one year after the date of the enactment of this section, and annually thereafter, not less than five eligible programs shall be designated as Entrepreneurial Innovation Projects by— each covered Secretary concerned, in consultation with each chief of a covered Armed Force under the jurisdiction of the Secretary concerned; and the Secretary of Defense for each covered element of the Department.
The Secretary of Defense shall include the estimated expenditures of each designated program in the first future-years defense program submitted to Congress under section 221 of title 10, United States Code, after such designated program is designated under subsection (a)(2). Each designated program shall be considered by the designating Secretary as an integral part of the planning, programing, budgeting, and execution process of the Department of Defense. Each designated program shall be included by the designating Secretary under a separate heading in any programming proposals submitted to the congressional defense committees.
In making designations required under subsection (a)(2), the covered Secretary concerned or the Secretary of Defense, as applicable, shall consider— the potential of the eligible program to— advance the national security capabilities of the United States; provide new technologies or processes, or new applications of existing technologies, that will enable new alternatives to existing programs; provide future cost savings; and significantly reduce the time to deliver capabilities to members of the covered Armed Forces; and any other criteria that the covered Secretary concerned or Secretary of Defense, as applicable, determines appropriate.
The covered Secretary concerned or the Secretary of Defense, as applicable, shall establish procedures for the designation of Entrepreneurial Innovation Projects which will mitigate, to the greatest extent practicable, organizational conflicts of interests, including those from within Governmental organizations or programs that could view the designation and successful completion of an Entrepreneurial Innovation Project as a competing alternative to an existing or proposed program or other activity.
The Secretary of Defense and each covered Secretary concerned shall establish an application process for eligible programs seeking designation as Entrepreneurial Innovation Projects. If the designating Secretary determines that a designated program no longer meets the criteria in subsection (b)(4) or that the technology has become irrelevant, the designating Secretary may revoke the Entrepreneurial Innovation Project designation for such designated program. The Secretary of Defense shall submit to congressional defense committees, the Committee on Small Business and Entrepreneurship of the Senate, and the Committee on Small Business of the House of Representatives, concurrently with the President’s annual budget request, an annual report that includes for each designated program— a description of the designated program; a summary of the potential of the designated program as considered under subsection (b)(4)(A); the progress made towards inclusion in the future-years defense program; the progress made towards delivering on the potential of the designated program; and such other information that the Secretary determines appropriate to inform the congressional defense committees about the status of the pilot programs established under this section.
In the last report submitted under paragraph
(1)prior to December 31, 2027, the Secretary of Defense shall include a recommendation on whether to extend the pilot programs established under this section and the appropriate duration of such extension, if any. This section shall take effect on January 1, 2022. The pilot programs established under this section shall terminate on December 31, 2027. In this section: The term covered Armed Forces means— the Army; the Navy; the Air Force; the Marine Corps; and the Space Force. The term covered element of the Department means any element of the Department of Defense, other than an element referred to in paragraph (3), that is associated with the Small Business Innovation Research or Small Business Technology Transfer programs. The term covered Secretary concerned means— the Secretary of the Army, with respect to matters concerning the Department of the Army; the Secretary of the Navy, with respect to matters concerning the Department of the Navy (other than matters concerning the Coast Guard); and the Secretary of the Air Force, with respect to matters concerning the Department of the Air Force. The term eligible program means a project that has completed a Phase II SBIR or STTR award. The term designated program means an eligible program that has been designated as an Entrepreneurial Innovation Project under this section and for which such designation has not been revoked under subsection (c). The term designating Secretary means— with respect to a designated program designated as an Entrepreneurial Innovation Project under this section by a covered Secretary concerned, such covered Secretary concerned; and with respect to all other designated programs, the Secretary of Defense. The terms Phase II , Phase III , SBIR , and STTR have the meanings given such terms in section 9(e) of the Small Business Act ( 15 U.S.C. 638(e) ).
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Sec. 842
Designating certain SBIR and STTR programs as entrepreneurial innovation projects
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