Until September 30, 2017, and subject to subsection (d),[1] the Secretary may carry out a pilot program under which the Secretary may exercise the following authorities:

(1) In general When the Secretary carries out basic, applied, and advanced research and development projects, including the expenditure of funds for such projects, the Secretary may exercise the same authority (subject to the same limitations and conditions) with respect to such research and projects as the Secretary of Defense may exercise under section 2371 of title 10 (except for subsections (b) and (f)), after making a determination that the use of a contract, grant, or cooperative agreement for such project is not feasible or appropriate. The annual report required under subsection (b) 1 of this section, as applied to the Secretary by this paragraph, shall be submitted to the President of the Senate and the Speaker of the House of Representatives.

(2) Prototype projects The Secretary may, under the authority of paragraph (1), carry out prototype projects in accordance with the requirements and conditions provided for carrying out prototype projects under section 845 1 of the National Defense Authorization Act for Fiscal Year 1994 (Public Law 103–160). In applying the authorities of that section 845, subsection (c) of that section shall apply with respect to prototype projects under this paragraph, and the Secretary shall perform the functions of the Secretary of Defense under subsection (d) thereof.

The Secretary may—

(1) procure the temporary or intermittent services of experts or consultants (or organizations thereof) in accordance with section 3109(b) of title 5; and

(2) whenever necessary due to an urgent homeland security need, procure temporary (not to exceed 1 year) or intermittent personal services, including the services of experts or consultants (or organizations thereof), without regard to the pay limitations of such section 3109.

The authority of the Secretary under this section shall terminate September 30, 2017, unless before that date the Secretary—

The authority of the Secretary under this section shall terminate September 30, 2017, unless before that date the Secretary—

(A) issues policy guidance detailing the appropriate use of that authority; and

(B) provides training to each employee that is authorized to exercise that authority.

(2) Report The Secretary shall provide an annual report to the Committees on Appropriations of the Senate and the House of Representatives, the Committee on Homeland Security and Governmental Affairs of the Senate, and the Committee on Homeland Security of the House of Representatives detailing the projects for which the authority granted by subsection (a) was used, the rationale for its use, the funds spent using that authority, the outcome of each project for which that authority was used, and the results of any audits of such projects.

In this section, the term “nontraditional Government contractor” has the same meaning as the term “nontraditional defense contractor” as defined in section 845(e) 1 of the National Defense Authorization Act for Fiscal Year 1994 (Public Law 103–160; 10 U.S.C. 2371 note).

(Pub. L. 107–296, title VIII, § 831, Nov. 25, 2002, 116 Stat. 2224; Pub. L. 110–161, div. E, title V, § 572, Dec. 26, 2007, 121 Stat. 2093; Pub. L. 110–329, div. D, title V, § 537, Sept. 30, 2008, 122 Stat. 3687; Pub. L. 111–83, title V, § 531, Oct. 28, 2009, 123 Stat. 2174; Pub. L. 112–10, div. B, title VI, § 1651, Apr. 15, 2011, 125 Stat. 146; Pub. L. 112–74, div. D, title V, § 527, Dec. 23, 2011, 125 Stat. 974; Pub. L. 113–6, div. D, title V, § 525, Mar. 26, 2013, 127 Stat. 371; Pub. L. 113–76, div. F, title V, § 525, Jan. 17, 2014, 128 Stat. 273; Pub. L. 114–4, title V, § 523, Mar. 4, 2015, 129 Stat. 65; Pub. L. 114–113, div. F, title V, § 523, Dec. 18, 2015, 129 Stat. 2516; Pub. L. 115–31, div. F, title V, § 514, May 5, 2017, 131 Stat. 427.)