RESEARCH PROJECTS.

SEC. 1301. RESEARCH PROJECTS. (a) General Authority.— Section 2358 of title 10, United States Code, is amended to read as follows: “§2358. Research and development projects “(a) Authority.— The Secretary of Defense or the Secretary of a military department may engage in basic research, applied research, advanced research, and development projects that— “(1) are necessary to the responsibilities of such Secretary’s department in the field of research and development; and “(2) either— “(A) relate to weapon systems and other military needs; or 108 STAT. 3285 “(B) are of potential interest to the Department of Defense. “(b) Authorized Means.— The Secretary of Defense or the Secretary of a military department may perform research and development projects— “(1) by contract, cooperative agreement, or grant, in accordance with chapter 63 of title 31; “(2) through one or more military departments; “(3) by using employees and consultants of the Department of Defense; or “(4) by mutual agreement with the head of any other department or agency of the Federal Government. “(c) Requirement of Potential Department of Defense Interest.— Funds appropriated to the Department of Defense or to a military department may not be used to finance any research project or study unless the project or study is, in the opinion of the Secretary of Defense or the Secretary of that military department, respectively, of potential interest to the Department of Defense or to such military department, respectively. “(d) Additional Provisions Applicable to Cooperative Agreements.— Additional authorities, conditions, and requirements relating to certain cooperative agreements authorized by this section are provided in section 2371 of this title.”. (b) Transactions Other Than Contracts and Grants.— Section 2371 of such title is amended to read as follows: “§2371. Research projects: transactions other than contracts and grants “(a) Additional Forms of Transactions Authorized.— The Secretary of Defense and the Secretary of each military department may enter into transactions (other than contracts, cooperative agreements, and grants) under the authority of this subsection in carrying out basic, applied, and advanced research projects. The authority under this subsection is in addition to the authority provided in section 2358 of this title to use contracts, cooperative agreements, and grants in carrying out such projects. “(b) Exercise of Authority by Secretary of Defense.— In any exercise of the authority in subsection (a), the Secretary of Defense shall act through the Advanced Research Projects Agency or any other element of the Department of Defense that the Secretary may designate. “(c) Advance Payments.— The authority provided under subsection (a) may be exercised without regard to section 3324 of title 31. “(d) Recovery of Funds.— (1) A cooperative agreement for performance of basic, applied, or advanced research authorized by section 2358 of this title and a transaction authorized by subsection (a) may include a clause that requires a person or other entity to make payments to the Department of Defense or any other department or agency of the Federal Government as a condition for receiving support under the agreement or other transaction. “(2) The amount of any payment received by the Federal Government pursuant to a requirement imposed under paragraph (1) may be credited, to the extent authorized by the Secretary of Defense, to the appropriate account established under subsection (f). Amounts so credited shall be merged with other funds in the 108 STAT. 3286account and shall be available for the same purposes and the same period for which other funds in such account are available. “(e) Conditions.— The Secretary of Defense shall ensure that— “(1) to the maximum extent practicable, no cooperative agreement containing a clause under subsection (d) and no transaction entered into under subsection (a) provides for research that duplicates research being conducted under existing programs carried out by the Department of Defense; “(2) to the extent that the Secretary determines practicable, the funds provided by the Government under a cooperative agreement containing a clause under subsection (d) or a transaction authorized by subsection (a) do not exceed the total amount provided by other parties to the cooperative agreement or other transaction; and “(3) a cooperative agreement containing a clause under subsection (d) or a transaction authorized under subsection (a) is used for a research project only when the use of a standard contract, grant, or cooperative agreement for such project is not feasible or appropriate. “(f) Support Accounts.— There is hereby established on the books of the Treasury separate accounts for each of the military departments and the Advanced Research Projects Agency for sup-port of research projects and development projects provided for in cooperative agreements containing a clause under subsection (d) and research projects provided for in transactions entered into under subsection (a). Funds in those accounts shall be available for the payment of such support. “(g) Regulations.— The Secretary of Defense shall prescribe regulations to carry out this section. “(h) Annual Report.— Not later than 60 days after the end of each fiscal year, the Secretary of Defense shall submit to the Committees on Armed Services of the Senate and House of Representatives a report on all cooperative agreements entered into under section 2358 of this title during such fiscal year that contain a clause authorized by subsection (d) and on all transactions entered into under subsection (a) during such fiscal year. The report shall contain, with respect to each such cooperative agreement and transaction, the following: “(1) A general description of the cooperative agreement or other transaction (as the case may be), including the technologies for which research is provided for under such agreement or transaction. “(2) The potential military and, if any, commercial utility of such technologies. “(3) The reasons for not using a contract or grant to provide support for such research. “(4) The amount of the payments, if any, that were received by the Federal Government during the fiscal year covered by the report pursuant to a clause included in such cooperative agreement or other transaction pursuant to subsection (d). “(5) The amount of the payments reported under paragraph (4), if any, that were credited to each account established under subsection (f). “(i) Cooperative Research and Development Agreements Under Stevenson-Wydler Technology Innovation Act of 1980.— The Secretary of Defense, in carrying out research projects through the Advanced Research Projects Agency, and the Secretary 108 STAT. 3287of each military department, in carrying out research projects, may permit the director of any federally funded research and development center to enter into cooperative research and development agreements with any person, any agency or instrumentality of the United States, any unit of State or local government, and any other entity under the authority granted by section 12 of the Stevenson-Wydler Technology Innovation Act of 1980 (15 U.S.C. 3710a). Technology may be transferred to a non-Federal party to such an agreement consistent with the provisions of sections 11 and 12 of such Act (15 U.S.C. 3710, 3710a).”. (c) Clerical Amendments.— The table of sections at the beginning of chapter 139 of such title is amended— (1) by striking out the item relating to section 2358 and inserting in lieu thereof the following: “2358. Research and development projects.”; and (2) by striking out the item relating to section 2371 and inserting in lieu thereof the following: “2371. Research projects: transactions other than contracts and grants.”.