DUAL-USE SCIENCE AND TECHNOLOGY PROGRAM.

SEC. 203. DUAL-USE SCIENCE AND TECHNOLOGY PROGRAM. (a) Funding 1998.—Of the amounts authorized to be appropriated by section 201, $75,000,000 is authorized for dual-use projects. (b) Goals.—(1) Subject to paragraph (3), it shall be the objective of the Secretary of each military department to obligate for dualuse projects in each fiscal year referred to in paragraph (2), out of the total amount authorized to be appropriated for such fiscal year for the applied research programs of the military department, the percent of such amount that is specified for that fiscal year in paragraph (2). (2) The objectives for fiscal years under paragraph (1) are as follows: (A) For fiscal year 1998, 5 percent. (B) For fiscal year 1999, 7 percent. (C) For fiscal year 2000, 10 percent. (D) For fiscal year 2001, 15 percent. (3) The Secretary of Defense may establish for a military department for a fiscal year an objective different from the objective set forth in paragraph (2) if the Secretary— (A) determines that compelling national security considerations require the establishment of the different objective; and (B) notifies Congress of the determination and the reasons for the determination. (c) Designation of Official for Dual-Use Programs.—(1) The Secretary of Defense shall designate a senior official in the Office of the Secretary of Defense to carry out responsibilities for dual-use projects under this subsection. The designated official shall report directly to the Under Secretary of Defense for Acquisition and Technology.111 STAT. 1656 (2) The primary responsibilities of the designated official shall include developing policy and overseeing the establishment of, and adherence to, procedures for ensuring that dual-use projects are initiated and administered effectively and that applicable commercial technologies are integrated into current and future military systems. (3) In carrying out the responsibilities, the designated official shall ensure that— (A) dual-use projects are consistent with the joint warfighting science and technology plan referred to in section 270 of the National Defense Authorization Act for Fiscal Year 1997 (Public Law 104–201; 10 U.S.C. 2501 note); and (B) the dual-use projects of the military departments and defense agencies of the Department of Defense are coordinated and avoid unnecessary duplication. (d) Financial Commitment of Non-Federal Government Participants.—The total amount of funds provided by a military department for a dual-use project entered into by the Secretary of that department shall not exceed 50 percent of the total cost of the project. In the case of a dual-use project initiated after the date of the enactment of this Act, the Secretary may consider in-kind contributions by non-Federal participants only to the extent such contributions constitute 50 percent or less of the share of the project costs by such participants. (e) Use of Competitive Procedures.—Funds obligated for a dual-use project may be counted toward meeting an objective under subsection (a) only if the funds are obligated for a contract, grant, cooperative agreement, or other transaction that was entered into through the use of competitive procedures. (f) Report.—(1) Not later than March 1 of each of 1998, 1999, and 2000, the Secretary of Defense shall submit a report to the congressional defense committees on the progress made by the Department of Defense in meeting the objectives set forth in subsection (b) during the preceding fiscal year. (2) The report for a fiscal year shall contain, at a minimum, the following: (A) The aggregate value of all contracts, grants, cooperative agreements, or other transactions entered into during the fiscal year for which funding is counted toward meeting an objective under this section, expressed in relationship to the total amount appropriated for the applied research programs in the Department of Defense for that fiscal year. (B) For each military department, the value of all contracts, grants, cooperative agreements, or other transactions entered into during the fiscal year for which funding is counted toward meeting an objective under this section, expressed in relationship to the total amount appropriated for the applied research program of the military department for that fiscal year. (C) A summary of the cost-sharing arrangements in dual-use projects that were initiated during the fiscal year and are counted toward reaching an objective under this section. (D) A description of the regulations, directives, or other procedures that have been issued by the Secretary of Defense or the Secretary of a military department to increase the percentage of the total value of the dual-use projects undertaken to meet or exceed an objective under this section.111 STAT. 1657 (E) Any recommended legislation to facilitate achievement of objectives under this section. (g) Commercial Operations and Support Savings Initiative.—(1) The Secretary of Defense shall establish a Commercial Operations and Support Savings Initiative (in this subsection referred to as the “Initiative”) to develop commercial products and processes that the military departments can incorporate into operational military systems to reduce costs of operations and support. (2) Of the amounts authorized to be appropriated by section 201, $50,000,000 is authorized for the Initiative. (3) Projects and participants in the Initiative shall be selected through the use of competitive procedures. (4) The budget submitted to Congress by the President for fiscal year 1999 and each fiscal year thereafter pursuant to section 1105(a) of title 31, United States Code, shall set forth separately the funding request for the Initiative. (h) Repeal of Superseded Authority.—Section 203 of the National Defense Authorization Act for Fiscal Year 1997 (Public Law 104–201; 110 Stat. 2451) is repealed. (i) Definitions.—In this section: (1) The term “applied research program” means a program of a military department which is funded under the 6.2 Research, Development, Test and Evaluation account of that department. (2) The term “dual-use project” means a project under a program of a military department or a defense agency under which research or development of a dual-use technology is carried out and the costs of which are shared by the Department of Defense and non-Government entities.