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TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED MATTERS

Subtitle B--Amendments to General Contracting Authorities, Procedures, and Limitations

P. L. 113-291

Explanatory Statement, 12/4/14, H8671

SEC. 818. AMENDMENTS TO PROOF OF CONCEPT COMMERCIALIZATION PILOT PROGRAM.

(a) Authority for Secretaries of Military Departments to Carry Out Pilot- Section 1603(a) of the National Defense Authorization Act for Fiscal Year 2014 (Public Law 113-66; 127 Stat. 944; 10 U.S.C. 2359 note) is amended by inserting after `Engineering' the following: `and the Secretary of each military department'.

(b) Review Board Revisions-

(1) Section 1603(c)(3)(B)(i) of such Act is amended to read as follows:

`(i) rigorous review of commercialization potential or military utility of technologies, including through use of outside expertise;'.

(2) Section 1603(d)(1) of such Act is amended by striking `, including incentives and activities undertaken by review board experts'.

(c) Increase in Amount of Awards- Section 1603(c)(5)(B)(i) of such Act is amended by striking `$500,000' and inserting `$1,000,000'.

(d) Authority for Use of Basic Research Funds- Section 1603(f) of such Act is amended--

(1) by inserting `and Use of Funds' after `Limitation'; and

(2) by adding at the end the following: `The Secretary of a military department may use basic research funds, or other funds considered appropriate by the Secretary, to conduct the pilot program within the military department concerned.'

(e) One-Year Extension- Section 1603(g) of such Act is amended by striking `2018' and inserting `2019'.

Amendments to Proof of Concept Commercialization Pilot Program (sec. 818)

The House bill included a provision (section 829) which would modify the Small Business Act (section 638 of title 15, United States Code) to require each agency carrying out a Small Business Technology Transfer program to support innovative approaches to technology transfer at institutions of higher education, based on the pilot program established under section 5127 of the National Defense Authorization Act for fiscal Year 2012 (Public Law 112-81).

The Senate committee-reported bill included no similar provision.

The agreement includes the House provision with an amendment that makes technical amendments to section 1603 of the National Defense Authorization Act for Fiscal Year 2014 (Public Law 113-66), which provides authority for the DOD to fund commercialization proof of concept centers. We note that there is commercialization potential in the research activities ongoing in universities, small businesses, and defense labs. Transition of promising research results into fielded defense systems or commercially successful enterprises is a benefit to both DOD and the nation as a whole.

We note that the Senate committee-reported Defense Appropriations Act for Fiscal Year 2015 (H.R. 4870 and Senate report 113-211) encouraged DOD to expand efforts at commercialization of technologies, especially those derived from research at the DOD laboratories. We encourage the Assistant Secretary of Defense for Research and Engineering to work with the Congress to identify appropriate funding to support the commercialization activities envisioned in that bill, as well as those authorized by this provision.

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