DOD Entrepreneurial Innovation Act
- Bill Number
- H.R. 5726
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Armed Forces and National Security
- Status
- Introduced
- Latest Action
- 2025-10-10: Referred to the House Committee on Armed Services.
- Last Updated
- 2025-11-25T18:47:09Z
AI-Generated Summary
Purpose
The DOD Entrepreneurial Innovation Act (H.R. 5726) aims to strengthen the Department of Defense's (DoD) integration of innovative technologies from small businesses into its long-term planning and budgeting. It focuses on identifying and prioritizing promising research from the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs—federal initiatives that fund small businesses to develop cutting-edge technologies—to enhance national security and reduce costs.
Key Provisions
- Designation of Projects: Starting in the first fiscal year after enactment, each Secretary of a military department (Army, Navy, Air Force) must designate at least five "eligible programs" as Entrepreneurial Innovation Projects. Eligible programs are those in Phase III of SBIR/STTR, which involves commercializing research into practical applications.
- Application and Criteria: Programs apply to the relevant Secretary, who evaluates them based on potential to advance U.S. national security, introduce new technologies or processes as alternatives to current ones, achieve cost savings, recommendations from advisory panels, and other factors deemed relevant.
- Benefits for Designated Programs:
- Inclusion in the DoD's future-years defense program (a multi-year budget plan submitted to Congress).
- Listed separately in programming proposals to the Secretary of Defense.
- Treated as a core part of the DoD's planning, programming, budgeting, and execution (PPBE) process, which outlines how resources are allocated.
- Advisory Panels:
- Each military department must establish a panel within 120 days of enactment.
- Panels consist of five members: three private-sector experts in entrepreneurial innovation (not federal employees), one senior executive from the department's acquisition workforce (professionals handling procurement), and one active-duty service member.
- Panels review applications, select at least ten programs initially, request five-year plans from them, and recommend at least five for designation.
- Members serve staggered terms (1-3 years); panels are chaired alternately by the service member and acquisition expert.
- Panels receive administrative support and funding from the DoD Acquisition Workforce Development Account; they are exempt from the Federal Advisory Committee Act (FACA), a law requiring public transparency for advisory groups, to allow faster operations.
- Conflicts of interest must be disclosed and mitigated; private members are compensated reasonably, but federal employees receive no extra pay.
- Oversight and Reporting:
- Designations can be revoked if programs fail to meet goals.
- The Secretary of Defense must submit an annual report to Congress on designated programs and their progress.
Significant Changes to Existing Law
- Amends Chapter 303 of Title 10, United States Code (which covers DoD's research and development activities), by adding a new Section 4063 on Entrepreneurial Innovation Project designations and updating the chapter's table of contents.
- Introduces mandatory annual designations and advisory panels, which did not previously exist in this form for SBIR/STTR Phase III programs.
- Explicitly integrates these programs into DoD's core budgeting processes (future-years plans and PPBE), providing them with dedicated visibility and stability not guaranteed under prior law.
- Exempts advisory panels from FACA requirements, streamlining their operations compared to other federal advisory bodies.
Potential Impacts
- On Government Agencies: The DoD and military departments will need to allocate resources for panels and program integration, potentially leading to more innovative and cost-effective defense technologies. This could accelerate the adoption of small-business innovations into military use, improving efficiency in research funding.
- On Citizens: Enhances national security by fostering advanced technologies (e.g., new weapons systems or processes) that could protect the U.S. more effectively, while promoting economic growth through support for small businesses.
- On International Relations: May strengthen U.S. military technological superiority, indirectly influencing global defense dynamics by encouraging domestic innovation over reliance on foreign suppliers.
Main Stakeholders Affected
- Department of Defense and Military Departments: Responsible for implementation, designations, and budgeting integration.
- Small Businesses Participating in SBIR/STTR: Gain opportunities for sustained funding and visibility, especially those in Phase III commercialization.
- Advisory Panel Members: Private-sector experts, DoD acquisition professionals, and service members involved in reviews.
- Congress: Receives annual reports and oversees budget inclusions, ensuring accountability.
Notable Legal, Constitutional, or Political Implications
- Legal: The FACA exemption allows quicker decision-making but raises questions about transparency in federal advice; conflicts of interest provisions help maintain integrity. Revocation authority provides flexibility without undermining due process.
- Constitutional: Aligns with Congress's power to regulate military funding (Article I, Section 8), promoting efficient use of taxpayer dollars without infringing on executive branch operations.
- Political: Encourages bipartisan support for small business innovation and defense modernization; annual reporting enhances congressional oversight, potentially influencing future defense budgets toward entrepreneurship-friendly policies. No major controversies noted in the bill text, but it prioritizes domestic innovation amid ongoing debates on DoD spending efficiency.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Recent Actions
- 2025-10-10: Referred to the House Committee on Armed Services.
- 2025-10-10: Introduced in House
- 2025-10-10: Introduced in House
Bill Versions
- DOD Entrepreneurial Innovation Act — issued 2025-10-10 — PDF (11 pages)