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

Subtitle F—Industrial Base Matters

P. L. 117-81

Joint Explanatory Statement

SEC. 852. MODIFICATION OF PILOT PROGRAM FOR DEVELOPMENT OF TECHNOLOGY-ENHANCED CAPABILITIES WITH PARTNERSHIP INTERMEDIARIES.

Section 851 of the National Defense Authorization Act for Fiscal Year 2020 (Public Law 116-92; 133 Stat. 1510; 10 U.S.C. 2283 note) is amended to read as follows:

``SEC. 851. PILOT PROGRAM FOR DEVELOPMENT OF TECHNOLOGY-ENHANCED
CAPABILITIES WITH PARTNERSHIP INTERMEDIARIES.

``(a) Establishment.--The Secretary of Defense may authorize the Commander of the United States Special Operations Command to use funds described in subsection (b) for a pilot program under which the Commander shall make, through the use of a partnership intermediary, covered awards to small business concerns to develop technology-enhanced capabilities for special operations forces.

``(b) Funds.--

``(1) In general.--The funds described in this subsection are funds transferred to the Commander of the United States Special Operations Command to carry out the pilot program established under this section from funds available to be expended by each covered entity pursuant to section 9(f) of the Small Business Act (15 U.S.C. 638(f)).

``(2) Limitations.--

``(A) Fiscal year.--A covered entity may not transfer to the Commander an amount greater than 10 percent of the funds available to be expended by such covered entity pursuant to such section 9(f) for a fiscal year.

``(B) Aggregate amount.--The aggregate amount of funds to be transferred to the Commander may not exceed $20,000,000.

``(c) Partnership Intermediaries.--

``(1) Authorization.--The Commander may modify an existing agreement with a partnership intermediary to assist the Commander in carrying out the pilot program under this section, including with respect to the award of contracts and agreements to small business concerns.

``(2) Limitation.--None of the funds described in subsection (b) may be used to pay a partnership intermediary for any costs associated with the pilot program.

``(3) Data.--With respect to a covered award made under this section, the Commander shall gather data on the role of the partnership intermediary to include the--

``(A) staffing structure;

``(B) funding sources; and

``(C) methods for identifying and evaluating small business concerns eligible for a covered award.

``(d) Report.--

``(1) Annual report.--Not later than October 1 of each year until October 1, 2026, the Commander of the United States Special Operations Command, in coordination with the Under Secretary of Defense for Research and Engineering, shall submit to the congressional defense committees, the Committee on Small Business of the House of Representatives, and the Committee on Small Business and Entrepreneurship of the Senate a report including--

``(A) a description of each agreement with a partnership intermediary entered into pursuant to this section;

``(B) for each covered award made under this section--

``(i) a description of the role served by the partnership intermediary;

``(ii) the amount of funds obligated;

``(iii) an identification of the small business concern that received such covered award;

``(iv) a description of the use of such covered award;

``(v) a description of the role served by the program manager (as defined in section 1737 of title 10, United States Code) of the covered entity with respect to the small business concern that received such covered award, including a description of interactions and the process of the program manager in producing a past performance evaluation of such concern; and

``(vi) the benefits achieved as a result of the use of a partnership intermediary for the pilot program established under this section as compared to previous efforts of the Commander to increase participation by small business concerns in the development of technology-enhanced capabilities for special operations forces; and

``(C) a plan detailing how each covered entity will apply lessons learned from the pilot program to improve processes for directly working with and supporting small business concerns to develop technology-enhanced capabilities for special operations forces.

``(2) Final report.--The final report required under this subsection shall include, along with the requirements of paragraph (1), a recommendation regarding--

``(A) whether and for how long the pilot program established under this section should be extended; and

``(B) whether to increase funding for the pilot program, including a justification for such an increase.

``(e) Termination.--The authority to carry out a pilot program under this section shall terminate on September 30, 2025.

``(f) Definitions.--In this section:

``(1) The term `covered award' means an award made under the Small Business Innovation Research Program.

``(2) The term `covered entity' means--

``(A) the Army;

``(B) the Navy;

``(C) the Air Force;

``(D) the Marine Corps;

``(E) the Space Force; and

``(F) any element of the Department of Defense that makes awards under the Small Business Innovation Research Program.

``(3) The term `partnership intermediary' has the meaning given the term in section 23(c) of the Stevenson-Wydler Technology Innovation Act of 1980 (15 U.S.C. 3715(c)).

``(4) The term `small business concern' has the meaning given the term under section 3 of the Small Business Act (15 U.S.C. 632).

``(5) The term `Small Business Innovation Research Program' has the meaning given the term in section 9(e) of the Small Business Act (15 U.S.C. 638(e)).

``(6) The term `technology-enhanced capability' means a product, concept, or process that improves the ability of a member of the Armed Forces to achieve an assigned mission.''.

Modification of pilot program for development of technology-enhanced capabilities with partnership intermediaries (sec. 852)

The House bill contained a provision (sec. 841) that would amend the pilot program authorized in section 851 of the National Defense Authorization Act for Fiscal Year 2020 (Public Law 116-92) to raise the aggregate amount allowed to be spent on the pilot from $2.0 million to $20.0 million to allow for other entities in the Department of Defense that make awards under the Small Business Innovation Research program to transfer funding to the Commander, U.S. Special Operations Command, to use in the pilot and to extend the activity from September 30, 2021, through September 30, 2025. The annual reporting requirement would be modified to include additional data and information requirements and extended to cover the duration of the pilot program.

The Senate amendment contained no similar provision.

The agreement includes the House provision.


H. R. 4350--House Report 117-118


Section 841--Modification of Pilot Program for Development of Technology-Enhanced Capabilities with Partnership Intermediaries

This section would amend the pilot program authorized in section 851 of the National Defense Authorization Act for Fiscal Year 2020 (Public Law 116-92) to raise the aggregate amount allowed to be spent on the pilot from $2.0 million to $20.0 million, to allow for other entities in the Department of Defense that make awards under the Small Business Innovation Research program to transfer funding to the Commander of the
U.S. Special Operations Command to use in the pilot, and to extend the activity from September 30, 2021, through September 30, 2025. The annual reporting requirement would be modified to include additional data and information requirements and extended to cover the duration of the pilot program.

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