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Code · BILL · 118th Congress · H.R. 2670 (Reported in House) — To authorize appropriations for fiscal year 2024 for military activities of the Department of Defense and for militar... · Sec. 925

Sec. 925. Codification of the Defense Innovation Unit and establishment of the nontraditional innovation fielding enterprise

1,551 words·~7 min read·/bill/118/hr/2670/rh/section-925·

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Chapter 303 of title 10, United States Code, is amended by adding at the end the following new section: There is established in the Department of Defense a Defense Innovation Unit (referred to in this section as the Unit ). There is a Director and a Deputy Director of the Unit, each of whom shall be appointed by the Secretary of Defense from among persons with substantial experience in innovation and commercial technology, as determined by the Secretary. The Director is the head of the Unit.
The Director— shall serve as a principal staff assistant to the Secretary on matters within the responsibility of the Unit; shall report directly to the Secretary of Defense without intervening authority; and may communicate views on matters within the responsibility of the Unit directly to the Secretary without obtaining the approval or concurrence of any other official within the Department of Defense. The Unit shall have the following responsibilities: Seek out, identify, and support the development of commercial technologies that have the potential to be implemented within the Department.
Accelerate the adoption of commercial technologies within the Department of Defense to transform military capacity and capabilities. Serve as the principal liaison between the Department of Defense and individuals and entities in the national security innovation base, including, entrepreneurs, startups, commercial technology companies, and venture capital sources. Carry out programs, projects, and other activities to strengthen the national security innovation base. Coordinate the activities of other organizations and elements of the Department of Defense on matters relating to commercial technologies, dual use technologies, and the innovation of such technologies.
Coordinate and oversee the nontraditional defense innovation fielding enterprise established under section 4063 of this title. Carry out such other activities as the Secretary of Defense determines appropriate. . Section 4022 of title 10, United States Code, is amended— in subsection (a)— in paragraph (1), by inserting the Director of the Defense Innovation Unit, after Defense Advanced Research Projects Agency, ; in paragraph (2)(A), by inserting , the Defense Innovation Unit, after Defense Advanced Research Projects Agency ; and in paragraph (3), by inserting , Defense Innovation Unit, after Defense Advanced Research Projects Agency ; and in subsection (e)(1)— by redesignating subparagraphs
(C)through
(E)as subparagraphs
(D)through (F), respectively; and by inserting after subparagraph
(B)the following new subparagraph: the Director of the Defense Innovation Unit; . Section 4021 of title 10, United States Code, is amended— in subsection (b), by inserting , the Defense Innovation Unit, after Defense Advanced Research Projects Agency ; and in subsection (f), by striking and the Defense Advanced Research Projects Agency and inserting , the Defense Innovation Unit, and the Defense Advanced Research Projects Agency . Section 1766 of title 10, United States Code, is amended— in subsection (b), by striking as determined by the Under Secretary of Defense for Research and Engineering and inserting as determined by the Secretary of Defense ; and in subsection (c)(3), by striking as directed by the Under Secretary of Defense for Research and Engineering and inserting as directed by the Secretary of Defense . Subchapter I of chapter 303 of title 10, United States Code, is amended by inserting after section 4062 the following new section: The Secretary of Defense shall designate within the Department of Defense a group of organizations to be known, collectively, as the nontraditional innovation fielding enterprise (referred to in this section as the NIFE ). The purpose of the NIFE is to streamline coordination and minimize duplication of efforts among elements of the Department of Defense on matters relating to the development, procurement, and fielding of nontraditional capabilities. The NIFE shall consist of— the Defense Innovation Unit; and each organization designated as a service-level NIFE lead under subsection (c). Not later than 120 days after the effective date of this section, each Secretary of a military department, in consultation with the Director of the Defense Innovation Unit, shall designate a single organization within each armed force under the jurisdiction of such Secretary to serve as the lead organization within that armed force on matters within the responsibility of the NIFE. Each organization so designated shall be known as a service-level NIFE lead . An organization designated under paragraph
(1)shall be an organization of an armed force that— exists as of the effective date of this section; and has a demonstrated ability to engage at scale with nontraditional defense contractors, as determined by the Secretary concerned. Subject to the authority, direction, and control of the Secretary of Defense, the Director of the Defense Innovation Unit shall serve as the head of the NIFE and, in such capacity, shall be responsible for the overall oversight and coordination of the NIFE. Each head of an organization of an armed force designated as a service-level NIFE lead under subsection
(c)shall serve as the head of the NIFE within that armed force and, in such capacity, shall be responsible for the oversight and coordination of the activities of the NIFE within that armed force. The Director of the Defense Innovation Unit shall carry out the following activities in support of the NIFE: Coordinate with the Joint Staff and the commanders of the combatant commands to identify operational challenges that have the potential to be addressed through the use of nontraditional capabilities, including dual-use technologies, that are being developed and financed in the commercial sector. Using funds made available to the Defense Innovation Unit for the activities of the NIFE— select projects to be carried out by one or more of the service-level NIFE leads; allocate funds to service-level NIFE leads to carry out such projects; and monitor the execution of such projects by the service-level NIFE leads. On a semiannual basis, submit to the Secretary of Defense and the congressional defense committees a report on the progress of the projects described in paragraph (2). Each such report shall identify any gaps in resources or authorities that have the potential to disrupt the progress of such projects. Serve as Chair of the NIFE Resource Advisory Board under subsection (f). Serve as the principal liaison between the Department of Defense, nontraditional defense contractors, investors in nontraditional defense companies, and departments and agencies of the Federal Government pursing nontraditional capabilities similar to those pursued by the Department. Lead engagement with industry, academia, and other non-government entities to develop— domestic capacity with respect to innovative, commercial, and dual-use technologies and the use of nontraditional defense contractors; and the capacity of international allies and partners of the United States with respect to such technologies and the use of such contractors. There is established in the Department of Defense an advisory board to be known as the NIFE Resource Advisory Board (referred to in this subsection as the Board ). The Board shall be composed of the following members— The Director of the Defense Innovation Unit. The head of each service-level NIFE lead. The Director of the Joint Staff. The Chief Digital and Artificial Intelligence Officer of the Department of Defense. The Director of the Office of Strategic Capital of the Department of Defense. The Director of the Defense Innovation Unit shall serve as Chair of the Board. The Board shall meet annually and may meet more frequently at the call of the Chair. On an annual basis the Board shall— identify not fewer than 10 objectives of the Department of Defense that have the potential to be supported using nontraditional capabilities that are capable of being fielded at scale within a period of three years; and for each objective identified under subparagraph (A)— develop a specific set of requirements and a budget for the development and fielding of nontraditional capabilities to support such objective; and based on such budget and requirements, solicit proposals from public and private sector entities for providing such capabilities. Section 1013(a)(2) of title 5 (relating to the termination of advisory committees) shall not apply to the Board. In this section: The term nontraditional capability means a solution to an operational challenge that can significantly leverage commercial innovation or external capital with minimal dependencies on fielded systems. The term nontraditional defense contractor has the meaning given that term in section 3014 of this title. . The amendments made by subsections
(a)and
(b)shall take effect 180 days after the date of the enactment of this Act. Not later than the effective date specified in paragraph (1), the Secretary of Defense shall issue or modify any rules, regulations, policies, or other guidance necessary to implement the amendments made by subsections
(a)and (b). The Secretary of Defense shall evaluate the staffing levels of the Defense Innovation Unit as of the date of the enactment of this Act to determine if the Unit is sufficiently staffed to achieve the responsibilities of the Unit under sections 4063 and 4127 of title 10, United States Code, as added by subsections
(a)and
(b)of this section. Not later than the effective date specified in subsection (c)(1), the Secretary of Defense shall submit to the Committees on Armed Services of the Senate and the House of Representatives a report on the results of the evaluation under paragraph (1). The report shall include a plan— to address any staffing shortfalls identified as a part of the assessment; and for funding any activities necessary to address such shortfalls.
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