(B) In such regulations, the Secretary may authorize a participant that is a small business concern to use funds received under the Small Business Innovation Research Program or the Small Business Technology Transfer Program to help pay the costs of partnership activities. Any such funds so used may be considered in calculating the amount of the financial commitment undertaken by the non-Federal Government participants unless the Secretary determines that the small business concern has not made a significant equity percentage contribution in the partnership from nonFederal sources.

(C) The Secretary shall consider a partnership proposal submitted by a small business concern without regard to the ability of the small business concern to immediately meet its share of the anticipated partnership costs. Upon the selection of a partnership proposal submitted by a small business concern, the small business concern shall have a period of not less than 120 days in which to arrange to meet its financial commitment requirements under the partnership from sources other than a person of a foreign country. If the Secretary determines upon the expiration of that period that the small business concern will be unable to meet its share of the anticipated partnership costs, the Secretary shall revoke the selection of the partnership proposal submitted by the small business

concern.

(d) SELECTION PROCESS.-Competitive procedures shall be used in the establishment of partnerships.

(e) SELECTION CRITERIA.-The criteria for the selection of a proposed partnership for establishment under this section shall include the following:

(1) The extent to which the program proposed to be conducted by the partnership advances and enhances the national security objectives set forth in section 2501(a) of this title.

(2) The technical excellence of the program proposed to be conducted by the partnership.

(3) The qualifications of the personnel proposed to participate in the partnership's research activities.

(4) An assessment that timely private sector investment in activities to achieve the goals and objectives of the proposed partnership other than through the partnership.

(5) The potential effectiveness of the partnership in the further development and application of each technology proposed to be developed by the partnership for the industrial and technology base.

(6) The extent of the financial commitment of the eligible firms to the proposed partnership.

(7) The likelihood that the partnership will develop technologies that are sufficiently viable in the commercial sector so that such technologies will be available to meet the future reconstitution requirements and other needs of the Department of Defense described in the most recent national technology and industrial base plan prepared under section 2506 of this title.

(8) The likelihood that, within five years after the establishment of the partnership (or a lesser period established by

the Secretary), Federal Government funding of the partnership will not be necessary.

(9) The extent to which the partnership does not unnecessarily duplicate programs undertaken by other Federal agencies.

(10) Such other criteria as the Secretary prescribes.

(Added P.L. 102-484, §4222(a), Oct. 23, 1992, 106 Stat. 2679, and amended P.L. 103-160, § 1315(b), Nov. 30, 1993, 107 Stat. 1787; P.L. 103–337, § 1115(b), Oct. 5, 1994, 108 Stat. 2868.) §2513. Regional technology alliances assistance program

(a) ESTABLISHMENT OF PROGRAM.-The Secretary of Defense, in consultation and coordination with the Secretary of Commerce, shall conduct a program to further the national security objectives set forth in section 2501(a) of this title by providing assistance for the activities of eligible regional technology alliances in the United States.

(b) ELIGIBLE ALLIANCES.-A regional technology alliance is eligible for assistance under the program if

(1) the purpose of the regional technology alliance is to facilitate the use of one or more defense critical technologies for defense and commercial purposes by an industry in the region served by that regional technology alliance in order to maintain within the United States industrial capabilities that are vital to the national security of the United States; and

(2) the regional technology alliance meets the other requirements of this section. (c) PROGRAM PARTICIPANTS.-(1) The participants in a regional technology alliance

(A) shall include

(i) eligible firms that conduct business in the region of the United States served or to be served by the regional technology alliance; and

(ii) a sponsoring agency in such region; and

(B) may include other organizations considered appropriate by the Secretary of Defense.

(2XA) A sponsoring agency of a regional technology alliance may be any agency described in subparagraph (B) that, as determined by the Secretary, provides adequate assurances that it will— (i) meet the financial requirement in subsection (e); and (ii) provide assistance in the management of the regional technology alliance.

(B) An agency referred to in subparagraph (A) is any of the following:

(i) An agency of a State or local government.

(ii) A nonprofit organization established, or performing functions, pursuant to an agreement entered into by one or more States or local governments.

(iii) A membership organization in which a State or local government is a member.

(iv) An institution of higher education designated by a State or local government.

(d) ASSISTANCE AUTHORIZED.-(1) Under the program, the Secretary may provide

(A) financial assistance for the activities of a regional technology alliance (including, in the case of a proposed regional technology alliance, the establishment of such regional technology alliance) in any amount not in excess of 50 percent of the cost of conducting such activities (including the cost of establishing a proposed regional technology alliance) during the period covered by the financial assistance; and

(B) technical assistance for the activities (and, in the case of a proposed regional technology alliance, the establishment) of a regional technology alliance awarded financial assistance authorized by subparagraph (A).

(2) The Secretary may not provide financial assistance under the program for construction of facilities.

(3) The Secretary may furnish assistance to a regional technology alliance under the program for not more than six years.

(e) FINANCIAL CONTRIBUTIONS OF ALLIANCE PARTICIPANTS.-(1) The sponsoring agency of a regional technology alliance and the eligible firms participating in the regional technology alliance shall pay at least 50 percent of the total cost incurred each year for the activities of the regional technology alliance. Funds contributed for the activities of the regional technology alliance by institutions of higher education or private, nonprofit organizations participating in the regional technology alliance shall be considered as funds contributed by the sponsoring agency.

(2) If the right to use or license the results of any research and development activity of a regional technology alliance is limited by participants in the regional technology alliance to one or more, but less than one-half, of the eligible firms participating in the regional technology alliance, the non-Federal Government participants in the regional technology alliance shall pay the total cost incurred for such activity.

(3) The Secretary may prescribe regulations to provide for consideration of in-kind contributions by non-Federal Government participants in a regional technology alliance for the purpose of calculating the share of the costs that has been or is being undertaken by such participants. In such regulations, the Secretary may authorize a participant that is a small business concern to use funds received under the Small Business Innovation Research Program or the Small Business Technology Transfer Program to help pay the costs of a regional technology alliance. Any such funds so used may be considered in calculating the amount of the financial commitment undertaken by the non-Federal Government participants unless the Secretary determines that the small business concern has not made a significant equity percentage contribution in the regional technology alliance from non-Federal sources.

(4) The Secretary shall consider a proposal for a regional technology alliance that is submitted by a small business concern without regard to the ability of the small business concern to immediately meet its share of the anticipated costs of the alliance. Upon the selection of a proposal submitted by a small business concern, the small business concern shall have a period of not less than 120 days in which to arrange to meet its financial commitment requirements under the regional technology alliance from sources other than a person of a foreign country. If the Secretary determines

upon the expiration of that period that the small business concern will be unable to meet its share of the anticipated costs, the Secretary shall revoke the selection of the proposal submitted by the small business concern.

(f) MANAGEMENT PLAN.-A regional technology alliance shall operate under a management plan that includes provisions for the eligible firms participating in the regional technology alliance to have the primary responsibility for directing the activities of the regional technology alliance and to exercise that responsibility through, among any other means, majority voting membership of such firms on the board of directors of the regional technology alli

ance.

(g) ADMINISTRATION OF PROGRAM.-The Secretary shall prescribe regulations that, to the extent practicable, apply the same requirements and authorities in the administration of this section as apply under subsections (d) and (e) of section 2511 of this title in the case of the dual-use critical technologies partnerships program provided for in that section.

(h) SELECTION CRITERIA.-The criteria for selection of a regional technology alliance to receive financial assistance under this section shall include the following:

(1) The potential for the activities of the regional technology alliance to result in

(A) increased availability of technology for the enhancement of national security; and 2222

(B) the emergence in such region of new firms that are capable of applying dual-use critical technologies.

(2) The potential for the regional technology alliance to be able to apply critical technology research and development supported or conducted by Federal laboratories and institutions of higher education in the advancement of national security interests of the United States.

(3) The potential for the regional technology alliance to sustain itself through support from industry and other nonFederal Government sources after termination of the Federal assistance provided pursuant to this section.

(4) The level of involvement of appropriate State and local agencies, institutions of higher education, and private, nonprofit entities in the regional technology alliance.

(5) The potential for the regional technology alliance to increase industrial competitiveness.

(6) The potential for the regional technology alliance to meet the needs of small- and medium-sized defense-dependent companies across multiple activity areas including

(A) outreach;

(B) manufacturing education and training;

(C) technology development;

(D) technology deployment; and

(E) business counseling.

(7) Such other criteria as the Secretary prescribes.

(Added as § 2524 P.L. 102-190, §821(a), Dec. 5, 1991, 105 Stat. 1428; transferred, redsignated $2513, and amended P.L. 102-484, §4223, Oct. 23, 1992, 106 Stat. 2681; P.L. 103–35, 201(dX3), (eX1), May 31, 1993, 107 Stat. 99; P.L. 103-160, 88 1182(g)(2), 1315(c), 1316, Nov. 30, 1993, 107 Stat. 1774, 1787, 1789; P.L. 103–337, § 1115(c), Oct. 5, 1994, 108 Stat. 2868.)

§ 2514. Encouragement of technology transfer

(a) ENCOURAGEMENT OF TRANSFER REQUIRED.-The Secretary of Defense shall encourage, to the extent consistent with national security objectives, the transfer of technology between laboratories and research centers of the Department of Defense and other Federal agencies, State and local governments, colleges and universities, and private persons in cases that are likely to result in accomplishing the objectives set forth in section 2501(a) of this title.

(b) EXAMINATION AND IMPLEMENTATION OF METHODS TO ENCOURAGE TRANSFER.-The Secretary shall examine and implement methods, in addition to the encouragement referred to in subsection (a) and the program described in subsection (c), that are consistent with national security objectives and will enable Department of Defense personnel to promote technology transfer.

(c) PROGRAM TO ENCOURAGE DIVERSIFICATION OF DEFENSE LABORATORIES. (1) The Secretary of Defense shall establish and implement a program to be known as the Federal Defense Laboratory Diversification Program_(hereinafter in this subsection referred to as the "Program"). The purpose of the Program shall be to encourage greater cooperation in research and production activities carried out by defense laboratories and by private industry of the United States in order to enhance and improve the products of such research and production activities.

(2) Under the Program, the defense laboratories, in coordination with the Office of Technology Transfer in the Office of the Secretary of Defense, shall carry out cooperative activities with private industry in order to promote (by the use or exchange of patents, licenses, cooperative research and development agreements and other cooperative agreements, and the use of symposia, meetings, and other similar mechanisms) the transfer of defense or dual-use technologies from the defense laboratories to private industry, and the development and application of such technologies by the defense laboratories and private industry, for the purpose of the commercial utilization of such technologies by private industry.

(3) The Secretary of Defense shall develop and annually update a plan for each defense laboratory that participates in the Program under which plan the laboratory shall carry out cooperative activities with private industry to promote the transfers described in subsection (b).

(4) In this subsection, the term "defense laboratory" means any laboratory owned or operated by the Department of Defense that carries out research in fiscal year 1993 in an amount in excess of $50,000,000.

(5) The Secretary shall coordinate the Program with the National Defense Technology and Industrial Base Council. (Added P.L. 102–484, § 4224(a), Oct. 23, 1992, 106 Stat. 2682.)

§2515. Office of Technology Transition

(a) ESTABLISHMENT.-The Secretary of Defense shall establish within the Office of the Secretary of Defense an Office of Technology Transition.

(b) PURPOSE.-The purpose of the office shall be to ensure, to the maximum extent practicable, that technology developed for na