(a) Pilot program
The Director of the Defense Innovation Unit (referred to in this section as the Director) shall carry out a pilot program under which the Director awards prizes, on a competitive basis, to recognize outstanding achievements in technology development and prototype development that——
have the potential to address operational problems and capability gaps identified by the Secretary of Defense, the Secretaries of the military departments, and combatant commanders; or
have potential for application to the performance of the military missions of the Department of Defense.
(b) Form of prizes
Prizes awarded under this section may include—
cash prizes; or
the award of contracts or other agreements.
(c) Information dissemination
The Director shall carry out activities to publicize the prize competitions carried out under this section and to solicit participation in such competitions from eligible individuals and entities.
(d) Prize maximum and coinvestment requirements
(1) Maximum value
The value of a prize awarded under this section may not exceed $15,000,000.
(2) Coinvestment
The Director may award a prize under this section without receiving approval from the Under Secretary of Defense for Research and Engineering if—
the value of the prize is not more than $2,000,000; or
in the case of a prize with a value exceeding $2,000,000, at least half of the funds for the portion of the prize in excess of $2,000,000 are provided by the portfolio acquisition executive of an organization of the Department of Defense outside the Defense Innovation Unit.
(e) Use of prize authority
Use of prize authority under this section shall be considered the use of competitive procedures for the purposes of chapter 221 of title 10, United States Code.
(f) Commencement and termination
(1) Deadline for commencement
The Director shall commence implementation of the pilot program under subsection (a) not later than 90 days after the date of the enactment of this Act.
(2) Termination
The authority to carry out the pilot program under subsection (a) shall terminate on the date that is three years after the date of the enactment of this Act.
(g) Congressional notice
(1) In general
Not later than 15 days after a contract or other agreement that exceeds a fair market value of $2,000,000 is awarded under this section, the Director shall submit to the congressional defense committees written notice of such award.
(2) Contents
Each notice submitted under paragraph (1) shall include—
the value of the relevant contract or other agreement, as applicable, including all options;
an identification of any portfolio acquisition executive responsible for implementation or oversight of technology development or prototype development (as applicable) for which an award was made under this section, and a brief summary of lessons learned by such portfolio acquisition executive in carrying out such implementation or oversight;
a brief description of the technology development or prototype for which such contract or other agreement, as applicable, was awarded; and
an explanation of the benefit to the performance of the military mission of the Department of Defense resulting from the award.
(h) Portfolio acquisition executive defined
In this section, the term portfolio acquisition executive has the meaning given that term in section 1737 of title 10, United States Code.