HR 5726119th CongressIn Committee

DOD Entrepreneurial Innovation Act

Introduced: Oct 10, 2025

Sponsor: Rep. Calvert, Ken [R-CA-41] (R-California)

Standard Summary

Comprehensive overview in 1-2 paragraphs

This bill, titled the DOD Entrepreneurial Innovation Act, would require the Secretary of each military department to identify and designate certain Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs as Entrepreneurial Innovation Projects. Each fiscal year, at least five programs would be designated, with an advisory panel (per department) identifying eligible programs (based on criteria such as national security impact and potential cost savings) and recommending them for designation. Once designated, these programs must be included in the Department of Defense’s (DoD) future budgets and planning documents, and treated as integral to the DoD’s planning, programming, budgeting, and execution (PPBE) process. The bill also creates advisory panels, sets selection and governance rules, requires program plans, and mandates annual reporting to Congress on progress. The act would establish a deadline for forming the panels and would authorize funding for panel operations.

Key Points

1Entrepreneurial Innovation Project designations
2- The bill adds a new Sec. 4063 to Chapter 303 of Title 10, U.S.C., requiring designations of at least five SBIR/STTR programs as Entrepreneurial Innovation Projects each fiscal year.
3Advisory panels
4- Each military department must establish an advisory panel to identify and recommend eligible programs for designation.
5- Panels include private-sector entrepreneurs and acquisition workforce members; they have defined terms, chair rotation rules, conflict-of-interest disclosures, and compensation standards.
6Eligibility and designation process
7- Eligible programs must be work under a Phase III SBIR/STTR agreement.
8- Panels first select at least ten eligible programs, allow program plans (five-year goals, execution plans, schedules, funding needs), then recommend at least five for designation (can be fewer if fewer eligible programs exist).
9- Designations are based on criteria such as national security impact, new technologies/applications, and potential future cost savings.
10Budget and planning integration
11- Each designated program must be included in the next DoD future-years defense program with its estimated expenditures.
12- Designated programs must be listed under a separate heading in DoD programming proposals and treated as an integral part of PPBE.
13Oversight, revocation, and reporting
14- Secretaries may revoke a designation if the program cannot meet objectives.
15- DoD must report annually to Congress on each designated program and progress toward its objectives.
16Administration and timeline
17- Panels must be established within 120 days of enactment.
18- DoD Acquisition Workforce Development Account funds may be used to support advisory panel activities.
19- FACA (the Federal Advisory Committee Act) does not apply to these panels.

Impact Areas

Primary group/area affected- Department-level DoD leadership and acquisition workforce; SBIR/STTR program participants (small businesses, especially those with Phase III, commercialization-focused projects); private-sector entrepreneurial talent engaging with defense-oriented research.Secondary group/area affected- Congress and DoD program budgeting processes; private sector collaborators seeking DoD contracts; public-private collaboration ecosystems around defense innovation.Additional impacts- Potential acceleration of transition from SBIR/STTR Phase III to DoD programs and budgets; formal integration of select entrepreneurial projects into long-range defense planning; enhanced visibility of high-potential technologies within DoD.- Increased emphasis on cost savings and dual-use or defense-relevant applications in SBIR/STTR portfolio; potential need for safeguards to manage conflicts of interest among panel members.

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