PILOT PROGRAM ON STRENGTHENING THE DEFENSE INDUSTRIAL AND INNOVATION BASE.

SEC. 1711. [10 U.S.C. 2505 note] PILOT PROGRAM ON STRENGTHENING THE DEFENSE INDUSTRIAL AND INNOVATION BASE. (a) Pilot Program Required.—The Secretary of Defense shall carry out a pilot program to assess the feasibility and advisability of increasing the capability of the defense industrial base and the defense innovation base to support— (1) development, prototyping, and manufacturing production needs to meet military requirements; and (2) development, prototyping, and manufacturing of emerging defense and commercial technologies. (b) Authorities.—The Secretary shall carry out the pilot program under the following: (1) Chapters 137 and 139 and sections 2371, 2371b, and 2373 of title 10, United States Code. (2) Section 230 of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 (Public Law 115–232; 10 U.S.C. 2358 note). (3) Such other legal authorities as the Secretary considers applicable to carrying out the pilot program. (c) Activities.—Activities under the pilot program may include the following: (1) Use of contracts, grants, or other transaction authorities to support development, prototyping, and manufacturing capabilities in small- and medium-sized manufacturers. (2) Purchases of goods or equipment for testing and certification purposes. (3) Incentives, including purchase commitments and cost sharing with nongovernmental sources, for the private sector to develop capabilities in areas of national security interest. (4) Issuing loans or providing loan guarantees to small- and medium-sized companies to support manufacturing and production capabilities in areas of national security interest. (5) Giving awards to third party entities to support investments in small- and medium-sized companies working in areas of national security interest, including debt and equity investments that would benefit missions of the Department of Defense. (6) Such other activities as the Secretary determines necessary. (d) Termination.—The pilot program shall terminate on December 31, 2026. (e) Briefing Required.—No later than January 31, 2027, the Secretary of Defense shall provide a briefing to the Committees on Armed Services in the Senate and the House of Representatives on the results of the pilot program.