,,ii #aahth ,,congress #ast ,session ,s4 #adfc ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,may #d1 #bjbc,ms4 ,rosen 7for herself and ,mrs4 ,blackburn7 introduced the following bill2 which was read twice and referred to the ,committee on ,armed ,services ,a ,,bill ,to establish a defense industrial base advanced capabilities pilot program4 #a4 ,defense industrial base advanced capabilities pilot program 7a7 ,establishment 7#a7 ,in general ,the ,under ,secretary of ,defense for ,acquisition and ,sustainment shall carry out a public-private partnership pilot program to accelerate the scaling1 production1 and acquisition of advanced capabilities for national security by creating incentives for investment in domestic small businesses or nontraditional businesses to create a robust and resilient defense industrial base4 7#b7 ,goals ,the goals of the public-private partnership pilot program are as follows3 7,a7 ,to bolster the defense industrial base through acquisition and deployment of advanced capabilities necessary to field ,department of ,defense modernization programs and priorities4 7,b7 ,to strengthen domestic defense supply chain resilience and capacity by investing in innovative defense companies4 7,c7 ,to leverage private equity capital to accelerate domestic defense scaling1 production1 and manufacturing4 7b7 ,public-,private partnerships 7#a7 ,in general ,in carrying out subsection 7a71 the ,under ,secretary shall enter into public-private partnerships1 consistent with the phased implementation provided for in subsection 7e71 with for-profit persons using the criteria set forth in paragraph 7#b74 7#b7 ,criteria ,the criteria referred to in paragraph 7#a7 shall include the following3 7,a7 ,the person shall be independent4 7,b7 ,the person shall be free from foreign oversight1 control1 influence1 or beneficial ownership4 7,c7 ,the person shall have commercial private equity fund experience in the defense and commercial sectors4 7,d7 ,the person shall be eligible for access to classified information 7as defined in the procedures established pursuant to section #hja7;a7 of the ,national ,security ,act of #aidg 7#ej ,u4,s4,c4 #cafa7;a7774 7#c7 ,operating agreement ,the ,under ,secretary and a person or persons with whom the ,under ,secretary enters a partnership under paragraph 7#a7 shall enter into an operating agreement that sets forth the roles1 responsibilities1 authorities1 reporting requirements1 and governance framework for the partnership and its operations4 7c7 ,investment of equity 7#a7 ,in general ,pursuant to public-private partnerships entered into under subsection 7b71 a person or persons with whom the ,under ,secretary has entered into a partnership shall invest equity in domestic small businesses or nontraditional businesses consistent with subsection 7a71 with investments selected based on technical merit1 economic value1 and the ,department's modernization priorities4 7#b7 ,authorities ,a person or persons described in paragraph 7#a7 shall have sole authority to operate1 manage1 and invest4 7d7 ,loan guarantee 7#a7 ,in general ,the ,under ,secretary shall provide an up to #hj percent loan guarantee1 pursuant to the public-private partnerships entered into under subsection 7b71 with investment of equity that qualifies under subsection 7c7 and consistent with the goals set forth under subsection 7a77#b74 7#b7 ,pilot program authority ,the temporary loan guarantee authority described under paragraph 7#a7 is exclusively for the public-private partnerships authorized under this section and may not be utilized for other programs or purposes4 7#c7 ,subject to operating agreement ,the loan guarantee under paragraph 7#a7 shall be subject to the operating agreement entered into under subsection 7b77#c74 7#d7 ,use of funds ,obligations incurred by the ,under ,secretary under this paragraph shall be subject to the availability of funds provided in advance specifically for the purpose of such loan guarantees4 7e7 ,phased implementation schedule and required reports and briefings ,the program established under subsection 7a7 shall be carried out in two phases as follows3 7#a7 ,phase #a 7,a7 ,in general ,phase #a shall consist of an initial pilot program with one public-private partnership1 consistent with subsection 7b71 to assess the feasibility and advisability of expanding the scope of the program4 ,the ,under ,secretary shall begin implementation of phase #a not later than #ahj days after the date of the enactment of this ,act4 7,b7 ,implementation schedule and framework ,not later than #ij days after the date of the enactment of this ,act1 the ,secretary shall submit an implementation plan to the congressional defense committees on the design of phase #a4 ,the plan shall include-- 7i7 an overview of1 and the activities undertaken1 to execute the public-private partnership2 7ii7 a description of the advanced capabilities and defense industrial base areas under consideration for investment2 and 7iii7 implementation milestones and metrics4 7,c7 ,report and briefing required ,not later than #bg months after the date of the enactment of this ,act1 the ,secretary shall provide to the congressional defense committees a report and briefing on the implementation of this section and the feasibility and advisability of expanding the scope of the pilot program4 ,the report and briefing shall include1 at minimum-- 7i7 an overview of program performance1 and implementation and execution milestones and outcomes2 7ii7 an overview of progress in-- 7,i7 achieving new products in production aligned with ,department of ,defense needs2 7,,ii7 scaling businesses aligned to targeted industrial base and capability areas2 7,,iii7 generating defense industrial base job growth2 7,,iv7 increasing supply chain resilience and capacity2 and 7,v7 enhancing competition on advanced capability programs2 and 7iii7 an accounting of activities undertaken and outline of the opportunities and benefits of expanding the scope of the pilot program4 7#b7 ,phase #b 7,a7 ,in general ,not later than #cj months after the date of the enactment of this ,act1 the ,secretary may expand the scope of the phase #a pilot program with the ability to increase to not more than three public-private partnerships1 consistent with subsection 7b74 7,b7 ,report and briefing required ,not later than five years after the date of the enactment of this ,act1 the ,secretary shall provide to the congressional defense committees a report and briefing on the outcomes of the pilot program under subsection 7a71 including the elements described in paragraph 7#a77;,c71 and the feasibility and advisability of making the program permanent4 7f7 ,termination ,the authority to enter into an agreement to carry out the pilot program under subsection 7a7 shall terminate on the date that is five years after the date of the enactment of this ,act4 7g7 ,definitions ,in this section3 7#a7 ,congressional defense committees ,the term congressional defense committees has the meaning given the term in section #aja7;a77#af7 of title #aj1 ,united ,states ,code4 7#b7 ,domestic business ,the term domestic business has the meaning given the term ,u4,s4 business in section #hjj4beb of title #ca1 ,code of ,federal ,regulations1 or successor regulation4 7#c7 ,domestic small businesses or nontraditional businesses ,the term domestic small businesses or nontraditional businesses means-- 7,a7 a small business that is a domestic business2 or 7,b7 a nontraditional business that is a domestic business4 7#d7 ,free from foreign oversight1 control1 influence1 or beneficial ownership ,the term free from foreign oversight1 control1 influence1 or beneficial ownership1 with respect to a person1 means a person who has not raised and managed capital from a person or entity that is not trusted and who is otherwise free from foreign oversight1 control1 influence1 or beneficial ownership4 7#e7 ,independent ,the term independent1 with respect to a person1 means a person who lacks a conflict of interest accomplished by not having entity or manager affiliation or ownership with an existing fund4 7#f7 ,nontraditional business ,the term nontraditional business has the meaning given the term nontraditional defense contractor in section #cjad of title #aj1 ,united ,states ,code4 7#g7 ,small business ,the term small business has the meaning given the term small business concern in section #c of the ,small ,business ,act 7#ae ,u4,s4,c4 #fcb74