Sec. 511. Additional transaction authority
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The National Security Act of 1947 ( 50 U.S.C. 3001 et seq. ), as amended by section 502, is further amended by inserting after section 102A the following new section (and conforming the table of contents at the beginning of such Act accordingly): In addition to other acquisition authorities, the head of an element of the intelligence community may exercise the authorities under subsections (b), (c), and (d). The head of an element of the intelligence community may use cooperative agreements and grants, in accordance with chapter 63 of title 31, United States Code, to carry out basic, applied, and advanced research and development, and prototype projects in support of intelligence activities.
The head of an element of the intelligence community may enter into transactions (other than contracts, cooperative agreements, and grants) under the authority of this subsection to carry out basic, applied, and advanced research projects in support of intelligence activities. The head of an element of the intelligence community may, under the authority of subsection (c), enter into a transaction to carry out a prototype project in support of intelligence activities only if each party to the transaction, other than the Federal Government, is a covered contractor.
A transaction entered into under this subsection for a prototype project may provide for the award of a follow-on production contract or a follow-on production transaction to the participants in the transaction. A transaction includes all individual prototype subprojects awarded under the transaction to a consortium of United States industry and academic institutions. A follow-on production contract provided for in a transaction under subparagraph
(A)may be awarded to the participants in the transaction without the use of any competitive procedure that would otherwise apply if the following criteria are satisfied: The authorizing official of the relevant element of the intelligence community determines that Government users of the proposed production product or production service have been consulted. In the case of a proposed production product that is software, there are mechanisms in place for Government users to provide feedback to participants to the follow-on production contract. In the case of a proposed production product that is software, the follow-on production contract includes a requirement that, for the duration of such contract (or such other period of time as may be agreed to as a term of such contract)— the participants provide to the head of the relevant element of the intelligence community the most up-to-date version of the production product that is available in the commercial marketplace; and there are mechanisms in place for the participants to provide real-time updates to the production product. A follow-on production transaction provided for in a transaction under subparagraph
(A)may be awarded to the participants in the transaction without the use of any competitive procedure that would otherwise apply. A cooperative agreement authorized by subsection
(a)and a transaction authorized by subsection
(c)or
(d)may include a clause that requires a person to make payments to the Office of the Director of National Intelligence or any other element of the intelligence community as a condition for receiving support under the agreement or other transaction. The amount of any payment received by the Federal Government pursuant to a requirement imposed under paragraph
(1)may be credited to the appropriate account for research and development or procurement. Amounts so credited shall be merged with other funds in the account and shall be available for the same purposes and the same period for which other funds in such account are available. The Director of National Intelligence and the heads of the elements of the intelligence community shall ensure that management, technical, and contracting personnel of the elements of the intelligence community who are involved in the award or administration of transactions under subsection
(c)or (d), or alternative acquisition pathways, are afforded opportunities for adequate education and training relating to such award or administration. To ensure adequate availability of staff warranted as Agreements Officers, by not later than October 1, 2024, at least 50 percent of the contracting staff within the intelligence community that hold at least some responsibility for buying technology shall have received the appropriate training to become warranted as Agreements Officers, who are given authority to execute and administer the agreements, grants, and transactions authorized by this section. The Director of National Intelligence and the heads of the elements of the intelligence community shall, to the maximum extent practicable, delegate the authority to make a determination or decision referred to in this section to the official responsible for technology adoption in the relevant element of the intelligence community, regardless of whether such official serves in an acquisition position. In this section: The term commercial product has the meaning given that term in section 103 of title 41, United States Code. The term commercial service has the meaning given that term in section 103a of title 41, United States Code. The term covered contractor means a contractor of an element of the intelligence community that is a small- or medium-sized emerging technology company. The term emerging technology company means a company that is in the business of maturing and selling technology that is in a developmental stage, or that may be developed during the 10-year period beginning on January 1, 2022, including with respect to biotechnology, quantum information science, future generation wireless technology, advanced materials, artificial intelligence, nanotechnology, microelectronics, space technology, renewable energy generation and storage, advanced computing, and human-machine interfaces. The term production product means any commercial product that is not a prototype or development product and is intended to provide capability to the United States Government at scale as determined by the authorizing official of the relevant element of the intelligence community. The term production service means any commercial service that is not a prototype or development service and is intended to provide capability to the United States Government at scale as determined by the authorizing official of the relevant element of the intelligence community. The term small- or medium-sized emerging technology company means an emerging technology company with fewer than 1,000 employees. . Not later than 180 days after the date of the enactment of this Act, the Director of National Intelligence shall issue guidance for carrying out the amendments made by subsection (a).
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Sec. 511
Additional transaction authority
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