[Senate Report 118-273]
[From the U.S. Government Publishing Office]


                                                       Calendar No. 676

118th Congress }                                              { Report
                                 SENATE                                
  2d Session   }                                              { 118-273
_______________________________________________________________________

                                     



                     BETTER ENABLING AND SECURING 
                   TRUSTWORTHY (BEST) TECHNOLOGY FOR
                            THE HOMELAND ACT

                               __________

                              R E P O R T

                                 of the

                   COMMITTEE ON HOMELAND SECURITY AND
                          GOVERNMENTAL AFFAIRS
                          UNITED STATES SENATE

                              to accompany

                                S. 4024

             TO AMEND THE HOMELAND SECURITY ACT OF 2002 TO
            ENABLE SECURE AND TRUSTWORTHY TECHNOLOGY THROUGH
                OTHER TRANSACTION CONTRACTING AUTHORITY





              [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]





                December 9, 2024.--Ordered to be printed
                
                                 ------
                                 
                   U.S. GOVERNMENT PUBLISHING OFFICE

59-010                     WASHINGTON : 2025

























        COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS

                   GARY C. PETERS, Michigan, Chairman
THOMAS R. CARPER, Delaware           RAND PAUL, Kentucky
MAGGIE HASSAN, New Hampshire         RON JOHNSON, Wisconsin
KYRSTEN SINEMA, Arizona              JAMES LANKFORD, Oklahoma
JACKY ROSEN, Nevada                  MITT ROMNEY, Utah
JON OSSOFF, Georgia                  RICK SCOTT, Florida
RICHARD BLUMENTHAL, Connecticut      JOSH HAWLEY, Missouri
LAPHONZA R. BUTLER, California       ROGER MARSHALL, Kansas

                   David M. Weinberg, Staff Director
                      Alan S. Kahn, Chief Counsel
                  Michelle M. Benecke, Senior Counsel
   Tiffany Ann Shujath, U.S. Department of Homeland Security Detailee
           William E. Henderson III, Minority Staff Director
              Christina N. Salazar, Minority Chief Counsel
                  Andrew J. Hopkins, Minority Counsel
          Kendal B. Tigner, Minority Professional Staff Member
                     Laura W. Kilbride, Chief Clerk















                                                       Calendar No. 676

118th Congress }                                              { Report
                                 SENATE                                
  2d Session   }                                              { 118-273

=======================================================================


 
                BETTER ENABLING AND SECURING TRUSTWORTHY
                 (BEST) TECHNOLOGY FOR THE HOMELAND ACT

                                _______
                                

                December 9, 2024.--Ordered to be printed

                                _______
                                

        Mr. Peters, from the Committee on Homeland Security and
             Governmental Affairs, submitted the following


                              R E P O R T

                         [To accompany S. 4024]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Homeland Security and Governmental 
Affairs, to which was referred the bill (S. 4024) to amend the 
Homeland Security Act of 2002 to enable secure and trustworthy 
technology through other transaction contracting authority, 
having considered the same, reports favorably thereon with an 
amendment, in the nature of a substitute, and recommends that 
the bill, as amended, do pass.

                                CONTENTS

                                                                   Page
  I. Purpose and Summary..............................................1
 II. Background and Need for the Legislation..........................2
III. Legislative History..............................................2
 IV. Section-by-Section Analysis of the Bill, as Reported.............3
  V. Evaluation of Regulatory Impact..................................3
 VI. Congressional Budget Office Cost Estimate........................4
VII. Changes in Existing Law Made by the Bill, as Reported............4

                         I. Purpose and Summary

    S. 4024, the Better Enabling Secure and Trustworthy 
Technology for the Homeland Act or BEST Technology for the 
Homeland Act authorizes the Department of Homeland Security 
(DHS) to extend its use of other transaction authority (OTA). 
Other Transactions (OTs) are procurement instruments other than 
contracts, grants, or cooperative agreements to access research 
and development for technology advancement or to quickly 
develop a prototype. DHS OTA expired on September 30, 2024. 
This bill reinstates the authority for DHS through fiscal year 
2027. It also requires DHS to notify Congress within 72 hours 
after the use or extension of OTA for a transaction involving 
artificial intelligence technology.

              II. Background and Need for the Legislation

    Under Section 831 of the Homeland Security Act of 2002, DHS 
was granted authority to enter into agreements to meet research 
and development or prototype project requirements and mission 
needs.\1\ OTA allows DHS to enter into flexible agreements with 
businesses rather than traditional contracts, providing DHS 
with the flexibility to work with the most innovative 
businesses, including those that have not previously contracted 
with the federal government, and promoting more collaboration 
between the federal government and the private sector in 
sharing financial and technical risks.\2\ The authority was 
granted to the Secretary of Homeland Security for a period of 5 
years and has since been repeatedly extended.\3\ The Secretary 
of Homeland Security was authorized to exercise the same OTA as 
that granted to the Secretary of Defense under 10 U.S.C. 
Sec. 2371, as revised, but the authority lapsed at the end of 
September 2024.\4\
---------------------------------------------------------------------------
    \1\Pub. L. 107-296
    \2\Id.
    \3\Id.
    \4\Id.
---------------------------------------------------------------------------
    The use of these authorities has resulted in the adoption 
of emerging technologies that address gaps in the security of 
the homeland. For example, the DHS Science and Technology 
Directorate (S&T) used OTA to work with a start-up to develop 
artificial intelligence-based solutions to provide real-time 
feedback about the screening process to Transportation Security 
Administration officers.\5\ This was valuable during the COVID-
19 pandemic, for example, to help minimize exposure and contact 
between officers and passengers.\6\ DHS S&T also used OTA to 
work with a start-up to develop low-cost machine learning and 
computer vision to assist agents with under-vehicle inspections 
at border checkpoints.\7\ The BEST Technology for the Homeland 
Act ensures that DHS will continue to have the authorities to 
be able to quickly access technologies to address critical and 
time-sensitive homeland security missions.
---------------------------------------------------------------------------
    \5\Id.
    \6\DHS S&T Public Affairs, News Release: DHS S&T Awards Funding to 
Design Video Analytics for TSA Checkpoints (Mar. 2, 2021).
    \7\Synthetik Applied Technologies, Synthetik Awarded $1 Million 
Grant from DHS to Develop AI for Vehicle Inspections (Jul. 16, 2019).
---------------------------------------------------------------------------

                        III. Legislative History

    Senator Gary Peters (D-MI) introduced S. 4024, the BEST 
Technology for the Homeland Act, on March 21, 2024, with 
Senator Steve Daines (R-MT) as the original co-sponsor. The 
bill was referred to the Committee on Homeland Security and 
Governmental Affairs.
    The Committee considered S. 4024 at a business meeting on 
April 10, 2024. At the business meeting, Senator Peters offered 
a substitute amendment to the bill and a modification to the 
substitute amendment. The Peters substitute amendment removed 
the word ``pilot'' from the title of section 2. The 
modification to the substitute amendment limited the OTA 
extension to three years and incorporated a notice requirement 
when the OTA is used in a transaction for artificial 
intelligence technology.
    The Committee adopted the modification to the Peters 
substitute amendment and the Peters substitute amendment, as 
modified, by unanimous consent, with Senators Peters, Hassan, 
Sinema, Rosen, Ossoff, Blumenthal, Butler, Paul, Lankford, 
Romney, Scott, Hawley, and Marshall present. The bill, as 
amended by the Peters substitute amendment as modified, was 
ordered reported favorably by roll call vote of 11 yeas to 2 
nays, with Senator Peters, Hassan, Sinema, Rosen, Ossoff, 
Blumenthal, Lankford, Romney, Scott, Hawley, and Marshall 
voting in the affirmative, and Senators Paul and Butler voting 
in the negative. Senator Carper voted yea by proxy, for the 
record only, and Senator Johnson voted nay by proxy, for the 
record only.

        IV. Section-by-Section Analysis of the Bill, as Reported


Section 1. Short title

    This section provides that the Act may be cited as the 
``Better Enabling Secure and Trustworthy Technology for the 
Homeland Act'' or the ``BEST Technology for the Homeland Act.''

Sec. 2. Research and development acquisition program extension

    This section amends Section 831 of the Homeland Security 
Act of 2002 (6 U.S.C. Sec. 391) to extend the DHS other 
transaction authority through fiscal year 2027. It also adds a 
provision at the end of Section 831 requiring DHS to notify the 
Committees on Appropriations and Homeland Security and 
Governmental Affairs of the Senate and the Committees on 
Appropriations and Homeland Security of the House of 
Representatives within 72 hours after the use or extension of 
OTA for a transaction involving artificial intelligence 
technology. DHS must also offer a briefing explaining the 
reason for the use or extension.

                   V. Evaluation of Regulatory Impact

    Pursuant to the requirements of paragraph 11(b) of rule 
XXVI of the Standing Rules of the Senate, the Committee has 
considered the regulatory impact of this bill and determined 
that the bill will have no regulatory impact within the meaning 
of the rules. The Committee agrees with the Congressional 
Budget Office's statement that the bill contains no 
intergovernmental or private-sector mandates as defined in the 
Unfunded Mandates Reform Act (UMRA) and would impose no costs 
on state, local, or tribal governments.

             VI. Congressional Budget Office Cost Estimate

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]


    S. 4024 would extend through 2027 the authority for the 
Department of Homeland Security (DHS) to waive the requirements 
of the Federal Acquisition Regulation (the procedures that 
guide federal procurement actions) for certain research and 
development projects. DHS uses that authority, known as ``Other 
Transaction Authority,'' to participate in research that 
broadens its knowledge base, test emerging technologies, and 
work with organizations that have not previously contracted 
with the federal government. Under current law, that authority 
expires on September 30, 2024. Lastly, the bill would require 
DHS to notify the Congress within 72 hours of using the 
authority to procure artificial intelligence technology.
    The authority is a contracting tool that DHS uses for its 
procurement of some research and development projects, but CBO 
does not expect that it significantly affects DHS spending on 
those activities. CBO estimates that implementing the bill's 
notification requirement would cost less than $500,000 over the 
2024-2029 period. Any related spending would be subject to the 
availability of appropriated funds.
    The CBO staff contact for this estimate is Jeremy Crimm. 
The estimate was reviewed by H. Samuel Papenfuss, Deputy 
Director of Budget Analysis.
                                            Phillip L. Swagel,
                             Director, Congressional Budget Office.

       VII. Changes in Existing Law Made by the Bill, as Reported

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in brackets, new matter is 
printed in italic, and existing law in which no change is 
proposed is shown in roman):

                     HOMELAND SECURITY ACT OF 2002

           *       *       *       *       *       *       *

                 TITLE  VIII--COORDINATION  WITH  NON-
                  FEDERAL  ENTITIES;   INSPECTOR  GEN-
                  ERAL;  UNITED  STATES  SECRET  SERV-
                  ICE; COAST GUARD; GENERAL PROVISIONS

           *       *       *       *       *       *       *

                       SUBTITLE D--ACQUISITIONS

           *       *       *       *       *       *       *

SEC. 831. RESEARCH AND DEVELOPMENT PROJECTS.

           *       *       *       *       *       *       *


    (a) Authority.--Until [September 30, 2024] September 30, 
2027, and subject to subsection (d), the Secretary may carry 
out a pilot program under which the Secretary may exercise the 
following authorities:
          (1) * * *
          (2) * * *
          (3) Other transaction authority involving artificial 
        intelligence.--Not later than 72 hours after the use or 
        extension of the transaction authority authorized under 
        paragraph (1) involving artificial intelligence 
        technology, the Secretary shall notify the Committee on 
        Appropriations and the Committee on Homeland Security 
        and Governmental Affairs of the Senate and the 
        Committee on Appropriations and the Committee on 
        Homeland Security of the House of Representatives and 
        offer a briefing explaining the reason for the use or 
        extension.
    (b) * * *
    (c) Additional Requirements.--
          (1) In general.--The authority of the Secretary under 
        this section shall terminate [September 30, 2024] 
        September 30, 2027 unless before that date the 
        Secretary--

           *       *       *       *       *       *       *


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