[Congressional Record Volume 169, Number 120 (Thursday, July 13, 2023)]
[Senate]
[Pages S2780-S2782]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 668. Ms. ERNST submitted an amendment intended to be proposed by 
her to the bill S. 2226, to authorize appropriations for fiscal year 
2024 for military activities of the Department of Defense, for military 
construction, and for defense activities of the Department of Energy, 
to prescribe military personnel strengths for such fiscal year, and for 
other purposes; which was ordered to lie on the table; as follows:
       At the appropriate place, insert the following:

     SEC. __. CODIFICATION OF THE DEFENSE INNOVATION UNIT AND 
                   ESTABLISHMENT OF THE NONTRADITIONAL INNOVATION 
                   FIELDING ENTERPRISE.

       (a) Codification of Defense Innovation Unit.--
       (1) Codification.--
       (A) In general.--Chapter 303 of title 10, United States 
     Code, is amended by adding at the end the following new 
     section:

     ``Sec. 4127. Defense Innovation Unit

       ``(a) Establishment.--There is established in the 
     Department of Defense a Defense Innovation Unit (referred to 
     in this section as the `Unit').
       ``(b) Director and Deputy Director.--There is a Director 
     and a Deputy Director of the Unit, each of whom shall be 
     appointed by the Secretary of Defense from among persons with 
     substantial experience in innovation and commercial 
     technology, as determined by the Secretary.
       ``(c) Authority of Director.--The Director is the head of 
     the Unit. The Director--
       ``(1) shall serve as a principal staff assistant to the 
     Secretary on matters within the responsibility of the Unit;
       ``(2) shall report directly to the Secretary of Defense 
     without intervening authority; and
       ``(3) may communicate views on matters within the 
     responsibility of the Unit directly to the Secretary without 
     obtaining the approval or concurrence of any other official 
     within the Department of Defense.
       ``(d) Responsibilities.--The Unit shall have the following 
     responsibilities:
       ``(1) Seek out, identify, and support the development of 
     commercial technologies that have the potential to be 
     implemented within the Department.
       ``(2) Accelerate the adoption of commercial technologies 
     within the Department of Defense to transform military 
     capacity and capabilities.
       ``(3) Serve as the principal liaison between the Department 
     of Defense and individuals

[[Page S2781]]

     and entities in the national security innovation base, 
     including, entrepreneurs, startups, commercial technology 
     companies, and venture capital sources.
       ``(4) Carry out programs, projects, and other activities to 
     strengthen the national security innovation base.
       ``(5) Coordinate the activities of other organizations and 
     elements of the Department of Defense on matters relating to 
     commercial technologies, dual use technologies, and the 
     innovation of such technologies.
       ``(6) Coordinate and oversee the nontraditional defense 
     innovation fielding enterprise established under section 4063 
     of this title.
       ``(7) Carry out such other activities as the Secretary of 
     Defense determines appropriate.''.
       (B) Clerical amendment.--The table of sections at the 
     beginning of chapter 303 of title 10, United States Code, is 
     amended by inserting after the item relating to section 4126 
     the following new item:

``4127. Defense Innovation Unit.''.
       (2) Modification of authority to carry out certain 
     prototype projects.--Section 4022 of title 10, United States 
     Code, is amended--
       (A) in subsection (a)--
       (i) in paragraph (1), by inserting ``the Director of the 
     Defense Innovation Unit,'' after ``Defense Advanced Research 
     Projects Agency,'';
       (ii) in paragraph (2)(A), by inserting ``, the Defense 
     Innovation Unit,'' after ``Defense Advanced Research Projects 
     Agency''; and
       (iii) in paragraph (3), by inserting ``, Defense Innovation 
     Unit,'' after ``Defense Advanced Research Projects Agency''; 
     and
       (B) in subsection (e)(1)--
       (i) by redesignating subparagraphs (C) through (E) as 
     subparagraphs (D) through (F), respectively; and
       (ii) by inserting after subparagraph (B) the following new 
     subparagraph:
       ``(C) the Director of the Defense Innovation Unit;''.
       (3) Modification of other transaction authority.--Section 
     4021 of title 10, United States Code, is amended--
       (A) in subsection (b), by inserting ``, the Defense 
     Innovation Unit,'' after ``Defense Advanced Research Projects 
     Agency''; and
       (B) in subsection (f), by striking ``and the Defense 
     Advanced Research Projects Agency'' and inserting ``, the 
     Defense Innovation Unit, and the Defense Advanced Research 
     Projects Agency''.
       (4) Conforming amendments.--Section 1766 of title 10, 
     United States Code, is amended--
       (A) in subsection (b), by striking ``as determined by the 
     Under Secretary of Defense for Research and Engineering'' and 
     inserting ``as determined by the Secretary of Defense''; and
       (B) in subsection (c)(3), by striking ``as directed by the 
     Under Secretary of Defense for Research and Engineering'' and 
     inserting ``as directed by the Secretary of Defense''.
       (b) Establishment of Nontraditional Innovation Fielding 
     Enterprise.--
       (1) In general.--Subchapter I of chapter 303 of title 10, 
     United States Code, is amended by inserting after section 
     4062 the following new section:

     ``Sec. 4063. Nontraditional innovation fielding enterprise

       ``(a) Establishment.--The Secretary of Defense shall 
     designate within the Department of Defense a group of 
     organizations to be known, collectively, as the 
     `nontraditional innovation fielding enterprise' (referred to 
     in this section as the `NIFE'). The purpose of the NIFE is to 
     streamline coordination and minimize duplication of efforts 
     among elements of the Department of Defense on matters 
     relating to the development, procurement, and fielding of 
     nontraditional capabilities.
       ``(b) Composition.--The NIFE shall consist of--
       ``(1) the Defense Innovation Unit; and
       ``(2) each organization designated as a service-level NIFE 
     lead under subsection (c).
       ``(c) Designation of Service-level NIFE Leads.--
       ``(1) Not later than 120 days after the effective date of 
     this section, each Secretary of a military department, in 
     consultation with the Director of the Defense Innovation 
     Unit, shall designate a single organization within each armed 
     force under the jurisdiction of such Secretary to serve as 
     the lead organization within that armed force on matters 
     within the responsibility of the NIFE. Each organization so 
     designated shall be known as a `service-level NIFE lead'.
       ``(2) An organization designated under paragraph (1) shall 
     be an organization of an armed force that--
       ``(A) exists as of the effective date of this section; and
       ``(B) has a demonstrated ability to engage at scale with 
     nontraditional defense contractors, as determined by the 
     Secretary concerned.
       ``(d) Leadership.--
       ``(1) Head of nife.--Subject to the authority, direction, 
     and control of the Secretary of Defense, the Director of the 
     Defense Innovation Unit shall serve as the head of the NIFE 
     and, in such capacity, shall be responsible for the overall 
     oversight and coordination of the NIFE.
       ``(2) Service-level leads.--Each head of an organization of 
     an armed force designated as a service-level NIFE lead under 
     subsection (c) shall serve as the head of the NIFE within 
     that armed force and, in such capacity, shall be responsible 
     for the oversight and coordination of the activities of the 
     NIFE within that armed force.
       ``(e) Duties.--The Director of the Defense Innovation Unit 
     shall carry out the following activities in support of the 
     NIFE:
       ``(1) Coordinate with the Joint Staff and the commanders of 
     the combatant commands to identify operational challenges 
     that have the potential to be addressed through the use of 
     nontraditional capabilities, including dual-use technologies, 
     that are being developed and financed in the commercial 
     sector.
       ``(2) Using funds made available to the Defense Innovation 
     Unit for the activities of the NIFE--
       ``(A) select projects to be carried out by one or more of 
     the service-level NIFE leads;
       ``(B) allocate funds to service-level NIFE leads to carry 
     out such projects; and
       ``(C) monitor the execution of such projects by the 
     service-level NIFE leads.
       ``(3) On a semiannual basis, submit to the Secretary of 
     Defense and the congressional defense committees a report on 
     the progress of the projects described in paragraph (2). Each 
     such report shall identify any gaps in resources or 
     authorities that have the potential to disrupt the progress 
     of such projects.
       ``(4) Serve as Chair of the NIFE Resource Advisory Board 
     under subsection (f).
       ``(5) Serve as the principal liaison between the Department 
     of Defense, nontraditional defense contractors, investors in 
     nontraditional defense companies, and departments and 
     agencies of the Federal Government pursing nontraditional 
     capabilities similar to those pursued by the Department.
       ``(6) Lead engagement with industry, academia, and other 
     non-government entities to develop--
       ``(A) domestic capacity with respect to innovative, 
     commercial, and dual-use technologies and the use of 
     nontraditional defense contractors; and
       ``(B) the capacity of international allies and partners of 
     the United States with respect to such technologies and the 
     use of such contractors.
       ``(f) NIFE Resource Advisory Board.--
       ``(1) Establishment.--There is established in the 
     Department of Defense an advisory board to be known as the 
     `NIFE Resource Advisory Board' (referred to in this 
     subsection as the `Board').
       ``(2) Members.--The Board shall be composed of the 
     following members--
       ``(A) The Director of the Defense Innovation Unit.
       ``(B) The head of each service-level NIFE lead.
       ``(C) The Director of the Joint Staff.
       ``(D) The Chief Digital and Artificial Intelligence Officer 
     of the Department of Defense.
       ``(E) The Director of the Office of Strategic Capital of 
     the Department of Defense.
       ``(3) Chair.--The Director of the Defense Innovation Unit 
     shall serve as Chair of the Board.
       ``(4) Meetings.--The Board shall meet annually and may meet 
     more frequently at the call of the Chair.
       ``(5) Responsibilities.--On an annual basis the Board 
     shall--
       ``(A) identify not fewer than 10 objectives of the 
     Department of Defense that have the potential to be supported 
     using nontraditional capabilities that are capable of being 
     fielded at scale within a period of three years; and
       ``(B) for each objective identified under subparagraph 
     (A)--
       ``(i) develop a specific set of requirements and a budget 
     for the development and fielding of nontraditional 
     capabilities to support such objective; and
       ``(ii) based on such budget and requirements, solicit 
     proposals from public and private sector entities for 
     providing such capabilities.
       ``(6) Nonapplicability of certain requirements.--Section 
     1013(a)(2) of title 5 (relating to the termination of 
     advisory committees) shall not apply to the Board.
       ``(g) Definitions.--In this section:
       ``(1) The term `nontraditional capability' means a solution 
     to an operational challenge that can significantly leverage 
     commercial innovation or external capital with minimal 
     dependencies on fielded systems.
       ``(2) The term `nontraditional defense contractor' has the 
     meaning given that term in section 3014 of this title.''.
       (2) Clerical amendment.--The table of sections at the 
     beginning of chapter 303 of title 10, United States Code, is 
     amended by inserting after the item relating to section 4062 
     the following new item:

``4063. Defense Innovation Unit.''.
       (c) Effective Date and Implementation.--
       (1) Effective date.--The amendments made by subsections (a) 
     and (b) shall take effect 180 days after the date of the 
     enactment of this Act.
       (2) Implementation.--Not later than the effective date 
     specified in paragraph (1), the Secretary of Defense shall 
     issue or modify any rules, regulations, policies, or other 
     guidance necessary to implement the amendments made by 
     subsections (a) and (b).
       (d) Manpower Sufficiency Evaluation.--
       (1) Evaluation.--The Secretary of Defense shall evaluate 
     the staffing levels of the Defense Innovation Unit as of the 
     date of the enactment of this Act to determine if the Unit is 
     sufficiently staffed to achieve the responsibilities of the 
     Unit under sections 4063 and 4127 of title 10, United States 
     Code, as added by subsections (a) and (b) of this section.

[[Page S2782]]

       (2) Report.--Not later than the effective date specified in 
     subsection (c)(1), the Secretary of Defense shall submit to 
     the Committees on Armed Services of the Senate and the House 
     of Representatives a report on the results of the evaluation 
     under paragraph (1). The report shall include a plan--
       (A) to address any staffing shortfalls identified as a part 
     of the assessment; and
       (B) for funding any activities necessary to address such 
     shortfalls.
                                 ______