Recommendation 16: Encourage Use of the Defense Modernization Account

Explanation and Justification: The Commission recommends revising the authorization for the Defense Modernization Account (DMA) to allow the use of funds to promote innovation and encouraging the DoD to use DMA funds for this purpose. The DMA, codified in 10 U.S.C. 3136, permits the use of up to $1 billion of expiring funds achieved through efficiencies or other savings for various purposes, including reducing costs or achieving more efficient production. To keep pace or outpace near-peer competitors like China, the DoD needs to increase its use of innovative technology. Expanded use of the DMA could be a powerful tool to develop, procure, and adopt innovative capabilities for warfighters. See pages 93-94 of the Final Report for additional information.

SEC. __. Enhanced Use of Defense Modernization Account

Section 3136 of title 10, United States Code is amended in subsection (d) by adding the following new paragraph after paragraph (4):
“(5) For time-sensitive opportunities to develop or procure modern equipment and technology, or adopt cutting-edge commercial products and services, along with associated infrastructure costs, for military adoption and fielding.”