S.Amdt. 668

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.

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(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.
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