RESEARCH UNDER TRANSACTIONS OTHER THAN CONTRACTS AND GRANTS.

SEC. 267. RESEARCH UNDER TRANSACTIONS OTHER THAN CONTRACTS AND GRANTS. (a) Conditions for Use of Authority.— Subsection (e) of section 2371 of title 10, United States Code, is amended— (1) by redesignating paragraphs (1) and (2) as subparagraphs (A) and (B); (2) by inserting “and” after the semicolon at the end of subparagraph (A), as so redesignated; (3) by striking out “; and” at the end of subparagraph (B), as so redesignated, and inserting in lieu thereof a period; (4) by inserting “(1)” after “(e) Conditions.—”; and (5) by striking out paragraph (3) and inserting in lieu thereof the following: “(2) A cooperative agreement containing a clause under subsection (d) or a transaction authorized by subsection (a) may be used for a research project when the use of a standard contract, grant, or cooperative agreement for such project is not feasible or appropriate.”. (b) Revised Requirement for Annual Report.— Section 2371 of such title is amended by striking out subsection (h) and inserting in lieu thereof the following: “(h) Annual Report.— (1) Not later than 90 days after the end of each fiscal year, the Secretary of Defense shall submit to the Committee on Armed Services of the Senate and the Committee on National Security of the House of Representatives a report on the use by the Department of Defense during such fiscal year of— “(A) cooperative agreements authorized under section 2358 of this title that contain a clause under subsection (d); and “(B) transactions authorized by subsection (a). “(2) The report shall include, with respect to the cooperative agreements and other transactions covered by the report, the following: “(A) The technology areas in which research projects were conducted under such agreements or other transactions. “(B) The extent of the cost-sharing among Federal Government and non-Federal sources. “(C) The extent to which the use of the cooperative agreements and other transactions— “(i) has contributed to a broadening of the technology and industrial base available for meeting Department of Defense needs; and 110 STAT. 2468 “(ii) has fostered within the technology and industrial base new relationships and practices that support the national security of the United States. “(D) The total amount of payments, if any, that were received by the Federal Government during the fiscal year covered by the report pursuant to a clause described in subsection (d) that was included in the cooperative agreements and other transactions, and the amount of such payments, if any, that were credited to each account established under subsection (f).”. (c) Division of Section Into Distinct Provisions by Subject Matter.— (1) Chapter 139 of title 10, United States Code, is amended— (A) by inserting before the last subsection of section 2371 (relating to cooperative research and development agreements under the Stevenson-Wydler Technology Innovation Act of 1980) the following: “§ 2371a. Cooperative research and development agreements under Stevenson-Wydler Technology Innovation Act of 1980”; (B) in section 2371a (as designated by the amendment made by subparagraph (A)), by striking out “(i) Cooperative Research and Development Agreements Under Stevenson-Wydler Technology Innovation Act of 1980.—”; and (C) in the table of sections at the beginning of such chapter, by inserting after the item relating to section 2371 the following: “2371a. Cooperative research and development agreements under Stevenson-Wydler Technology Innovation Act of 1980.” (2) Section 2358(d) of such title is amended by striking out “section 2371” and inserting in lieu thereof “sections 2371 and 2371a”