FEDERAL DEFENSE LABORATORY DIVERSIFICATION AND NAVY REINVESTMENT IN THE TECHNOLOGY AND INDUSTRIAL BASE.

SEC. 1113. FEDERAL DEFENSE LABORATORY DIVERSIFICATION AND NAVY REINVESTMENT IN THE TECHNOLOGY AND INDUSTRIAL BASE. (a) Federal Defense Laboratory Diversification Program.— Subchapter III of chapter 148 of title 10, United States 108 STAT. 2865Code, is amended by inserting at the end thereof the following new section: “§2519. Federal Defense Laboratory Diversification Program “(a) Establishment of Program.— The Secretary of Defense shall conduct a program in accordance with this section for the purpose of promoting cooperation between Department of Defense laboratories and industry on research and development of dual-use technologies in order to further the national security objectives set forth in section 2501(a) of this title. “(b) Partnerships.— (1) The Secretary shall provide for the establishment under the program of cooperative arrangements (hereinafter in this section referred to as ‘partnerships’) between a Department of Defense laboratory and eligible firms and nonprofit research corporations referred to in section 2511(b) of this title. A partnership may also include one or more additional Federal laboratories, institutions of higher education, agencies of State and local governments, and other entities, as determined appropriate by the Secretary. “(2) For purposes of this section, a federally funded research and development center shall be considered a Department of Defense laboratory if the center is sponsored by the Department of Defense. “(c) Assistance Authorized.— (1) The Secretary may make grants, enter into contracts, enter into cooperative agreements and other transactions pursuant to section 2371 of this title, and enter into cooperative research and development agreements under section 12 of the Stevenson-Wydler Technology Innovation Act of 1980 (15 U.S.C. 3710a) in order to establish partnerships. “(2) Subject to subsection (d), the Secretary may provide a partnership with technical and other assistance in order to facilitate the achievement of the purpose of this section. “(d) Financial Commitment of Non-Federal Government Participants.— (1) The Secretary shall ensure that the non-Federal Government participants in a partnership make a substantial contribution to the total cost of partnership activities. The amount of the contribution shall be commensurate with the risk undertaken by such participants and the potential benefits of the activities for such participants. “(2) The regulations prescribed pursuant to section 2511(c)(2) of this title shall apply to in-kind contributions made by non-Federal Government participants in a partnership. “(e) Selection Process.— Competitive procedures shall be used in the establishment of partnerships. “(f) Selection Criteria.— The criteria for the selection of a proposed partnership for establishment under this section shall include the criteria set forth in section 2511(f) of this title. “(g) Regulations.— The Secretary shall prescribe regulations for the purposes of this section.”. (b) Navy Reinvestment Program.— Such subchapter is further amended by inserting after section 2519 (as added by subsection (a)) the following new section: “§ 2520. Navy Reinvestment Program “(a) Establishment of Program.— The Secretary of the Navy shall conduct a program in accordance with this section for the purpose of promoting cooperation between the Department of the 108 STAT. 2866Navy and industry on research and development of dual-use technologies in order to further the national security objectives set forth in section 2501(a) of this title. “(b) Partnerships.— The Secretary shall provide for the establishment under the program of cooperative arrangements (hereinafter in this section referred to as ‘partnerships’) between Department of the Navy entities and eligible firms and nonprofit research corporations referred to in section 2511(b) of this title. A partnership may also include one or more Federal laboratories, institutions of higher education, agencies of State and local governments, and other entities, as determined appropriate by the Secretary. “(c) Program Requirements and Administration.— Subsections (c) through (f) of section 2519 of this title shall apply in the administration of the program. “(d) Additional Selection Criteria.— The selection criteria for a proposed partnership for establishment under this section shall also include the potential effectiveness of the partnership in the further development and application of each technology proposed to be developed by the partnership for Navy acquisition programs. “(e) Regulations.— The Secretary shall prescribe regulations for the purposes of this section.”. (c) Clerical Amendments.— The table of sections at the beginning of such subchapter is amended by adding at the end the following: “2519. Federal Defense Laboratory Diversification Program. “2520. Navy Reinvestment Program.”. (d) Definition of Federal Laboratory.— Section 2491(5) of title 10, United States Code, is amended by inserting before the period at the end the following: “, except that such terms include a federally funded research and development center sponsored by a Federal agency”.