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

Subtitle A—Acquisition Policy and Management.

P. L. 117-81

Joint Explanatory Statement

SEC. 803. AUTHORITY TO ACQUIRE INNOVATIVE COMMERCIAL PRODUCTS AND COMMERCIAL SERVICES USING GENERAL SOLICITATION COMPETITIVE PROCEDURES.

(a) Authority.--

(1) In general.--Chapter 140 of title 10, United States Code, is amended by adding at the end the following new section:

``Sec. 2380c. Authority to acquire innovative commercial products and commercial services using general solicitation competitive procedures

``(a) Authority.--The Secretary of Defense and the Secretaries of the military departments may acquire innovative commercial products and commercial services through a competitive selection of proposals resulting from a general solicitation and the peer review of such proposals.

``(b) Treatment as Competitive Procedures.--Use of general solicitation competitive procedures under subsection (a) shall be considered to be use of competitive procedures for purposes of chapter 137 of this title.

``(c) Limitations.--

(1) The Secretary may not enter into a contract or agreement in excess of $100,000,000 using the authority under subsection (a) without a written determination from the Under Secretary of Defense for Acquisition and Sustainment or the relevant service acquisition executive of the efficacy of the effort to meet mission needs of the Department of Defense or the relevant military department.

``(2) Contracts or agreements entered into using the authority under subsection (a) shall be fixed-price, including fixed-price incentive fee contracts.

``(3) Notwithstanding section 2376(1) of this title, products and services acquired using the authority under subsection (a) shall be treated as commercial products and commercial services.

``(d) Congressional Notification Required.--

(1) Not later than 45 days after the award of a contract for an amount exceeding $100,000,000 using the authority in subsection (a), the Secretary shall notify the congressional defense committees of such award.

``(2) Notice of an award under paragraph (1) shall include the
following:

``(A) Description of the innovative commercial product or commercial service acquired.

``(B) Description of the requirement, capability gap, or potential technological advancement with respect to which the innovative commercial product or commercial service acquired provides a solution or a potential new capability.

``(C) Amount of the contract awarded.

``(D) Identification of the contractor awarded the contract.

``(e) Innovative Defined.--In this section, the term `innovative' means--

``(1) any technology, process, or method, including research and development, that is new as of the date of submission of a proposal; or

``(2) any application that is new as of the date of submission
of a proposal of a technology, process, or method existing as of such date.''.

(2) Clerical amendment.--The table of sections at the beginning
of chapter 140 of title 10, United States Code, is amended by
inserting after the item relating to section 2380b the following
new item:

``2380c. Authority to acquire innovative commercial products and commercial services using general solicitation competitive procedures.''.

(3) Data collection.--

(A) In general.--The Secretary of Defense and each Secretary of a military department shall collect and analyze data on the use of the authority under section 2380c of title 10, United States Code, as added by paragraph (1), for the purposes of--

(i) developing and sharing best practices for achieving the objectives of the authority;

(ii) gathering information on the implementation of the authority and related policy issues; and

(iii) informing the congressional defense committees on the use of the authority.

(B) Plan required.--The authority under section 2380c of title 10, United States Code, as added by paragraph (1), may not be exercised by the Secretary of Defense or any Secretary of a military department during the period beginning on October 1, 2022, and ending on the date on which the Secretary of Defense submits to the congressional defense committees a completed plan for carrying out the data collection required under paragraph (1).

(C) Congressional defense committees; military department defined.--In this paragraph, the terms ``congressional defense committees'' and ``military department'' have the meanings given such terms in section 101(a) of title 10, United States Code.

(b) Future Transfer.--

(1) Transfer and redesignation.--Section 2380c of title 10, United States Code, as added by subsection (a), is transferred to chapter 247 of such title, added after section 3457, as transferred and redesignated by section 1821(a) of the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021 (Public Law 116-283), and redesignated as section 3458.

(2) Clerical amendment.--The table of sections at the beginning of chapter 247 of title 10, United States Code, as added by section 1821(a) of the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021 (Public Law 116-283), is amended by inserting after the item related to section 3457 the following new item:

``3458. Authority to acquire innovative commercial products and commercial services using general solicitation competitive procedures.''.

(3) Conforming amendments to internal cross-references.--
Section 3458 of title 10, United States Code, as redesignated by paragraph (1), is amended--

(A) in subsection (b), by striking ``chapter 137'' and inserting ``chapter 221''; and

(B) in subsection (c)(3), by striking ``section 2376(1)'' and inserting ``section 3451(1)''.

(4) Effective date.--The transfer, redesignation, and amendments made by this subsection shall take as if included in title XVIII of the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021 (Public Law 116-283).

(5) References; savings provision; rule of construction.--Sections 1883 through 1885 of the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021 (Public Law 116-283) shall apply with respect to the transfers, redesignations, and amendments made under this subsection as if such transfers, redesignations, and amendments were made under title XVIII of such Act.

(c) Repeal of Obsolete Authority.--Section 879 of the National Defense Authorization Act for Fiscal Year 2017 (Public Law 114-328; 10 U.S.C. 2302 note) is hereby repealed.

Authority to acquire innovative commercial products and commercial services using general solicitation competitive procedures (sec. 803)

The Senate amendment contained a provision (sec. 816) that would permanently authorize the Department of Defense to use what are commonly known as commercial solutions openings to solicit and acquire innovative commercial items, technologies,
or services.

The House bill contained no similar provision.

The agreement includes the Senate provision with an amendment that would expand the authority to all of the military departments and clarify the data collection requirements that will help justify the continued granting and use of the authority.


S. 2792--Senate Report117-39


Authority to acquire innovative commercial products and services using general solicitation competitive procedures (sec. 816)

The committee recommends a provision that would permanently authorize the Department of Defense to use what are commonly known as Commercial Solutions Openings to solicit and acquire innovative commercial items, technologies, or services.

The committee notes that this authority was originally established in section 879 of the National Defense Authorization Act for Fiscal Year 2017 (Public Law 114-328) and that it has been successfully used by the Department to establish agreements with small businesses in technology areas relevant to supporting the National Defense Strategy. The
committee also notes that this authority has been used successfully by the Defense Innovation Unit and the Air Force to support efforts to work with commercial sector firms, as well as to support COVID-19 response activities.

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