Annual report on the transition of successful prototype projects

(a) In general Not later than the last day of each of fiscal years 2027 through 2031, the Secretary of Defense shall submit to the Committees on Armed Services of the Senate and the House of Representatives a report on the transition of successful prototype projects into procurement, follow-on production, or operational deployment. (b) Annual reporting requirements Each report required under subsection (a) shall include the following information: (1) The average time between the successful completion of a prototype project and a determination regarding procurement, follow-on production, operational deployment, additional testing, or program termination. (2) The number and percentage of successful prototype projects that transitioned into procurement, follow-on production, or programs of record during the preceding year. (3) The number and percentage of successful prototype projects that failed to transition into procurement or production capabilities during the preceding year. (4) Explanations for delays exceeding 365 days between prototype completion and procurement or production decisions. (5) Data on prototype projects funded through the Small Business Innovation Research (SBIR) Program, Other Transaction Authority (OTA) agreements, the Defense Innovation Unit (DIU), and other defense innovation and prototyping initiatives. (6) Data broken down by military department, defense agency, and technology category, including artificial intelligence, autonomy, cyber capabilities, microelectronics, advanced manufacturing, and other critical emerging technologies. (c) One-time reporting requirements In addition to the information required under subsection (b), the final report required under subsection (a) shall include the following information: (1) An identification of acquisition, contracting, budgeting, testing, or requirements-related bottlenecks that delay the transition of innovative technologies into operational capability. (2) Recommendations to improve procurement efficiency and accelerate transition timelines for prototype projects. (3) An assessment of barriers faced by small businesses and nontraditional defense contractors participating in defense innovation programs, including challenges related to financing, cybersecurity compliance, intellectual property protection, and access to follow-on procurement opportunities. (d) Successful prototype project defined In this section, the term successful prototype project means a prototype project that achieved the operational, technical, or mission requirements identified by the sponsoring military department or defense agency. (e) Form of report Each report required under subsection (a) shall be submitted in unclassified form but may include a classified annex.