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SEC. 801. PILOT PROGRAM ON INTELLECTUAL
PROPERTY EVALUATION FOR ACQUISITION PROGRAMS.
(a) Pilot Program.--Not later than 180 days
after the date of the enactment of this Act, the Secretary of
Defense and the Secretaries of the military departments may
jointly carry out a pilot program to assess mechanisms to
evaluate intellectual property (such as technical data
deliverables and associated license rights), including
commercially available intellectual property valuation analysis
and techniques, in acquisition programs for which each such
Secretary is responsible to better understand the benefits
associated with these mechanisms on--
(1) the development of cost-effective
intellectual property strategies;
(2) the assessment and management of
the value and acquisition costs of intellectual property
during acquisition and sustainment activities (including
source selection evaluation factors) throughout the
acquisition lifecycle for any acquisition program selected by
such Secretary; and
(3) the use of a commercial product
(as defined in section 103 of title 41, United States Code, as
in effect on January 1, 2020), commercial service (as defined
in section 103a of title 41, United States Code, as in effect
on January 1, 2020), or nondevelopmental item (as defined in
section 110 of title 41, United States Code) as an alternative
to a product or service to be specifically developed for a
selected acquisition program, including evaluation of the
benefits of reduced risk regarding cost, schedule, and
performance associated with commercial products, commercial
services, and
nondevelopmental items.
(b) Activities.--Activities carried out
under the pilot program may
include the following:
(1) Establishment of a team of
Department of Defense and private sector subject matter
experts (which may include the cadre of intellectual property
experts established under section 2322(b) of title 10, United
States Code) to--
(A) recommend acquisition programs
to be selected for the pilot program established under
subsection (a);
(B) recommend criteria for the
consideration of types of commercial products, commercial
services, or nondevelopmental items that can used as an
alternative to a product or service to be specifically
developed for a selected acquisition program; or
(C) identify, to the maximum extent
practicable at each milestone established for each selected
acquisition program, intellectual property evaluation
techniques to obtain quantitative and qualitative analysis
of intellectual property during the procurement, production
and deployment, and operations and support phases for the
each selected acquisition
program.
(2) Assessment of commercial valuation
techniques for intellectual property for use by the Department
of Defense.
(3) Assessment of the feasibility of
agency-level oversight to standardize intellectual property
evaluation practices and procedures.
(4) Assessment of contracting
mechanisms to speed delivery of intellectual property to the
Armed Forces or reduce sustainment costs.
(5) Assessment of agency acquisition
planning to ensure procurement of appropriate intellectual
property deliverables and intellectual property rights
necessary for Government-planned sustainment activities.
(6) Engagement with the private sector
to--
(A) support the development of
strategies and program
requirements to aid in acquisition planning for intellectual
property;
(B) support the development and
improvement of intellectual
property strategies as part of life-cycle sustainment plans;
and
(C) propose and implement
alternative and innovative methods of intellectual property
valuation, prioritization, and evaluation techniques for
intellectual property.
(7) Recommendations to the relevant
program manager of an acquisition program selected under
subsection (a), including evaluation techniques and
contracting mechanisms for acquisition and sustainment
activities.
(c) Report.--Not later than November 1,
2020, and annually thereafter through November 1, 2023, the
Secretary of Defense, in coordination with the Secretaries
concerned, shall submit to the congressional defense committees
a joint report on the pilot program conducted under this
section. The report shall, at a minimum, include--
(1) a description of the acquisition
programs selected by the Secretary concerned;
(2) a description of the specific
activities in subsection (c) that were performed under each
program;
(3) an assessment of the effectiveness
of the activities;
(4) an assessment of improvements to
acquisition or sustainment activities related to the pilot
program; and
(5) an assessment of the results
related to the pilot program, including any cost savings and
improvement to mission success during the operations and
support phase of the selected acquisition program.
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Pilot program on
intellectual property evaluation for acquisition programs (sec.
801)
The Senate bill contained a
provision (sec. 801) that would permit the Secretary of Defense
and the Secretaries of the military departments to jointly carry
out a pilot program to assess mechanisms to evaluate
intellectual property in acquisition programs.
The House amendment
contained a similar provision (sec. 861(b)).
The House recedes with an
amendment which clarifies the selection of programs and
activities to be carried out under the pilot.
Senate Report
116-48
Pilot program on
intellectual property evaluation for acquisition programs (sec.
801)
The committee recommends a
provision that would permit the Secretary of Defense and the
Secretaries of the military departments to jointly carry out a
pilot program evaluating intellectual property in acquisition
programs, using commercially available intellectual property
valuation analysis and techniques, in order to determine these
techniques' utility in the formation of strategies and in
assessing the value and costs of intellectual property during
acquisition and sustainment activities. The committee notes that
this provision is based on the recommendation of the
Congressionally-mandated
Technology Data Rights Study (Section 813) panel.
Under the provision, if the
pilot program were to be carried out, the Secretary of Defense
would submit a report on the pilot to the congressional defense
committees not later than November 1, 2020, and annually
thereafter through 2023.
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