Extramural acquisition innovation and research activities
(a)
Establishment .—
The Secretary of Defense, acting through the Under Secretary of Defense for Acquisition and Sustainment and in coordination with the Under Secretary of Defense for Research and Engineering, shall establish and maintain extramural acquisition innovation and research activities as described in subsection (c), which shall include an acquisition research organization within a civilian college or university that is not owned or operated by the Federal Government that is established to provide and maintain essential research and development capabilities through a long-term strategic relationship with the Department of Defense.
(b)
Goals .—
The goal of any activity conducted pursuant to this section shall be to provide academic analyses and policy alternatives for innovation in defense acquisition policies and practices to policymakers in the Federal Government by using a variety of means intended to widely disseminate research findings from such an activity, in addition to executing demonstration and pilot programs of innovative acquisition policies and practices.
(c)
Activities .—
The activities described in this subsection are as follows:
(1)
Research on past and current defense acquisition policies and practices, commercial and international best practices, and the application of new technologies and analytical capabilities to improve acquisition policies and practices.
(2)
Pilot programs to prototype and demonstrate new acquisition practices for potential transition to wider use in the Department of Defense.
(3)
Establishment of data repositories and development of analytical capabilities, in coordination with the Chief Data Officer of the Department of Defense, to enable researchers and acquisition professionals to access and analyze historical data sets to support research and new policy and practice development.
(4)
Executive education to—
(A)
support acquisition workforce development, including for early career, mid-career, and senior leaders; and
(B)
provide appropriate education on acquisition issues to non-acquisition professionals.
(5)
On an ongoing basis, a review of the implementation of recommendations contained in relevant Department of Defense and private sector studies on acquisition policies and practices, including—
(A)
for recommendations for the enactment of legislation, identify the extent to which the recommendations have been enacted into law by Congress;
(B)
for recommendations for the issuance of regulations, identify the extent to which the recommendations have been adopted through the issuance or revision of regulations;
(C)
for recommendations for revisions to policies and procedures in the executive branch, identify the extent to which the recommendations have been adopted through issuance of an appropriate implementing directive or other form of guidance; and
(D)
for recommendations for the resources required to implement recommendations contained in relevant Department of Defense and private sector studies on acquisition policies and practices.
(6)
Engagement with researchers and acquisition professionals in the Department of Defense, as appropriate.
(d)
Funding .—
Subject to the availability of appropriations, the Secretary may use amounts available in the Defense Acquisition Workforce and Development Account to carry out the requirements of this section.
(e)
Annual Report .—
Not later than , and annually thereafter, the Under Secretary of Defense for Acquisition and Sustainment shall submit to the Secretary of Defense and the congressional defense committees a report describing the activities conducted under this section during the previous year.
Pub. L. 118–159, § 835(1)Subsecs. (c), (d). , (2), redesignated subsecs. (d) and (e) as (c) and (d), respectively, and struck out former subsec. (c) which authorized the Secretary of Defense to appoint an individual from civilian life to serve as the director for the extramural acquisition innovation and research to serve a term of five years.
Pub. L. 118–159, § 835(2)Subsec. (e). , (4), redesignated subsec. (f) as (e) and substituted “Under Secretary of Defense for Acquisition and Sustainment” for “Director”. Former subsec. (e) redesignated (d).
Not later than , the Secretary of the Army shall establish a program that—
“(1)
creates partnerships between operational units of the Army and research universities to provide a platform for university-based researchers and small businesses to collaborate directly with soldiers on innovative applied research and development; and
“(2)
integrates soldiers into the problem identification process and early-stage development efforts to ensure technical solutions are meeting soldier needs and enhancing lethality.
“(b)
Activities .—
In carrying out the program, the Secretary shall—
“(1)
establish activities at select divisions of the Army to accelerate the incorporation of soldier insights into capability development;
“(2)
establish policies that streamline collaboration between soldiers, Army Transformation and Training Command, research universities, and small businesses;
“(3)
establish a governance board that includes representatives from the research, development, test, and evaluation, acquisition, requirements, and research university communities; and
“(4)
promote transition of successful program projects to Army programs.
“(c)
Inclusion in Future-years Defense Program .—
section 221 of title 10The program shall be treated as a research, development, test, and evaluation activity in the Army’s input to the future-years defense program submitted to Congress under , United States Code.”
, , , provided that:
Prohibition on Modification of Indirect Cost Rates for Institutions of Higher Education and Nonprofit Organizations
The Secretary of Defense may not change or modify indirect cost rates (otherwise known as facilities and administration cost rates) for Department of Defense grants and contracts awarded to institutions of higher education and nonprofit organizations (as those terms are defined in part 200 of title 2, Code of Federal Regulations) until the Secretary makes the certification described under subsection (b).
“(b)
Certification .—
A certification under this subsection is a certification to the congressional defense committees [Committees on Armed Services and Appropriations of the Senate and the House of Representatives] that the Department of Defense—
“(1)
working with the extramural research community, including representatives from universities, university associations, independent research institutes, and private foundations, has developed an alternative indirect cost model that has—
“(A)
reduced the indirect cost rate for all applicable institutions of higher education and nonprofit organizations (compared to indirect rates for fiscal year 2025); and
“(B)
optimized payment of legitimate and essential indirect costs involved in conducting Department of Defense research to ensure transparency and efficiency for Department of Defense-funded grants and contracts; and
“(2)
established an implementation plan with adequate transition time to change budgeting and accounting processes for affected institutions of higher education and nonprofit organizations.”
section 2361a of title 1010 U.S.C. 4142Not later than , the Secretary of Defense shall establish the extramural acquisition innovation and research activities required by , United States Code [now ] (as added by this subsection).
“(B)
Report.—
“(i)
In general .—
Not later than , the Director of the extramural acquisition innovation and research activities appointed under such section shall submit to the Secretary of Defense a report setting forth a plan, proposed budget, and schedule for execution of such activities.
“(ii)
Transmittal .—
Not later than , the Secretary of Defense shall transmit the report required under clause (i), together with whatever comments the Secretary considers appropriate, to the Committees on Armed Services of the Senate and the House of Representatives.”
Not later than , the records of the Section 809 Panel shall be transferred to, and shall be maintained by, the Defense Technical Information Center.
“(2)
Status of records .—
section 552(b) of title 5Working papers, records of interview, and any other draft work products generated for any purpose by the Section 809 Panel shall be covered by the deliberative process privilege exemption under paragraph (5) of , United States Code.
“(3)
Availability .—
section 2361a of title 1010 U.S.C. 4142To the maximum extent practicable, the Secretary shall make the records available to support activities conducted by the research organization described under , United States Code [now ] (as added by subsection (a)).
“(4)
Section 809 panel defined .—
Public Law 114–92129 Stat. 889 In this subsection, the term ‘Section 809 Panel’ means the panel established by the Secretary of Defense pursuant to section 809 of the National Defense Authorization Act for Fiscal Year 2016 () [].”