PUBLIC LAW 107-314—DEC. 2, 2002 116 STAT. 2497 (c)(6), the office carrying out the acquisition program to which the proposal relates shall, in consultation with the prime system contractor carrying out such program, conduct a full review and evaluation of the proposal. "(2) The full review and evaluation shall, independent of the determination of a Panel under subsection (c)(4), determine each of the matters specified in subparagraphs (A), (B), and (C) of such subsection. The full review and evaluation shall also include— "(A) an assessment of the cost of adopting the challenge proposal and implementing it in the acquisition program; and "(B) consideration of any intellectual property issues associated with the challenge proposal. "(e) ACTION UPON FAVORABLE FULL REVIEW AND EVALUATION. — (1) Under procedures prescribed by the Under Secretary, each challenge proposal determined under a full review and evaluation to satisfy each of the criteria specified in subsection (c)(4) with respect to an acquisition program shall be considered by the office carrying out the applicable acquisition program and the prime system contractor for incorporation into the acquisition program as a new technology insertion at the component, subsystem, or system level. "(2) The Under Secretary shall encourage the adoption of each challenge proposal referred to in paragraph (1) by providing suitable incentives to the office carrying out the acquisition program and the prime system contractor carrying out such program. " (f) ACCESS TO TECHNICAL RESOURCES. —(1) Under procedures established by the Under Secretary, the technical resources of the laboratories, research, development, and engineering centers, test and evaluation activities, and other elements of the Department may be called upon to support the activities of the Challenge Program. "(2) Funds available to carry out this program may be used to compensate such laboratories, centers, activities, and elements for technical assistance provided to a Panel pursuant to paragraph (1). "(g) ELIMINATION OF CONFLICTS OF INTEREST. —In carrying out each preliminary evaluation under subsection (c) and full review under subsection (d), the Under Secretary shall ensure the elimination of conflicts of interest. "(h) LIMITATION ON USE OF FUNDS.— Funds made available for the Challenge Program may be used only for activities authorized by this section, and not for implementation of challenge proposals. "(i) ANNUAL REPORT.— The Under Secretary shall submit an annual report on the Challenge Program to Congress. The report shall be submitted at the same time as the President submits the budget for a fiscal year to Congress under section 1105(a) of title 31, and shall cover the conduct of the Challenge Program for the preceding fiscal year. The report shall include the number and scope of challenge proposals submitted, preliminarily evaluated, subjected to full review and evaluation, and adopted. No report is required for a fiscal year in which the Challenge Program is not carried out. "0") TERMINATION OF AUTHORITY.— The Secretary may not carry out the Challenge Program under this section after September 30, 2007. ". Procedures. Procedures.
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