related entity
(7) Prize competitions .— (A) In general .— The Secretary may use up to 1 percent of the funds made available under section 51001 of the Transportation Research and Innovative Technology Act of 2012 to carry out a program to competitively award cash prizes to stimulate innovation in basic and applied research and technology development that has the potential for application to the national transportation system. (B) Topics .— In selecting topics for prize competitions under this paragraph, the Secretary shall— (i) consult with a wide variety of governmental and nongovernmental representatives; and (ii) give consideration to prize goals that demonstrate innovative approaches and strategies to improve the safety, efficiency, and sustainability of the national transportation system. (C) Advertising .— The Secretary shall encourage participation in the prize competitions through advertising efforts. (D) Requirements and registration .— For each prize competition, the Secretary shall publish a notice on a public website that describes— (i) the subject of the competition; (ii) the eligibility rules for participation in the competition; (iii) the amount of the prize; and (iv) the basis on which a winner will be selected. (E) Eligibility .— An individual or entity may not receive a prize under this paragraph unless the individual or entity— (i) has registered to participate in the competition pursuant to any rules promulgated by the Secretary under this section; (ii) has complied with all requirements under this paragraph; (iii) (I) in the case of a private entity, is incorporated in, and maintains a primary place of business in, the United States; or (II) in the case of an individual, whether participating singly or in a group, is a citizen or permanent resident of the United States; (iv) is not a Federal entity or Federal employee acting within the scope of his or her employment; and (v) has not received a grant to perform research on the same issue for which the prize is awarded. (F) Liability .— (i) Assumption of risk .— (I) In general .— A registered participant shall agree to assume any and all risks and waive claims against the Federal Government and its related entities, except in the case of willful misconduct, for any injury, death, damage, or loss of property, revenue, or profits, whether direct, indirect, or consequential, arising from participation in a competition, whether such injury, death, damage, or loss arises through negligence or otherwise. (II) Related entity .— In this subparagraph, the term “related entity” means a contractor, subcontractor (at any tier), supplier, user, customer, cooperating party, grantee, investigator, or detailee. (ii) Financial responsibility .— A participant shall obtain liability insurance or demonstrate financial responsibility, in amounts determined by the Secretary, for claims by— (I) a third party for death, bodily injury, or property damage, or loss resulting from an activity carried out in connection with participation in a competition, with the Federal Government named as an additional insured under the registered participant’s insurance policy and registered participants agreeing to indemnify the Federal Government against third party claims for damages arising from or related to competition activities; and (II) the Federal Government for damage or loss to Government property resulting from such an activity. (G) Judges .— (i) Selection .— Subject to clause (iii), for each prize competition, the Secretary, either directly or through an agreement under subparagraph (H), may appoint 1 or more qualified judges to select the winner or winners of the prize competition on the basis of the criteria described in subparagraph (D). (ii) Selection .— Judges for each competition shall include individuals from outside the Federal Government, including the private sector. (iii) Limitations .— A judge selected under this subparagraph may not— (I) have personal or financial interests in, or be an employee, officer, director, or agent of, any entity that is a registered participant in a prize competition under this paragraph; or (II) have a familial or financial relationship with an individual who is a registered participant. (H) Administering the competition .— The Secretary may enter into an agreement with a private, nonprofit entity to administer the prize competition, subject to the provisions of this paragraph. (I) Funding .— (i) In general .— (I) Private sector funding .— A cash prize under this paragraph may consist of funds appropriated by the Federal Government and funds provided by the private sector. (II) Government funding .— The Secretary may accept funds from other Federal agencies, State and local governments, and metropolitan planning organizations for a cash prize under this paragraph. (III) No special consideration .— The Secretary may not give any special consideration to any private sector entity in return for a donation under this subparagraph. (ii) Availability of funds .— Notwithstanding any other provision of law, amounts appropriated for prize awards under this paragraph— (I) shall remain available until expended; and (II) may not be transferred, reprogrammed, or expended for other purposes until after the expiration of the 10-year period beginning on the last day of the fiscal year for which the funds were originally appropriated. (iii) Savings provision .— Nothing in this subparagraph may be construed to permit the obligation or payment of funds in violation of the Anti-Deficiency Act ( 31 U.S.C. 1341 ). (iv) Prize announcement .— A prize may not be announced under this paragraph until all the funds needed to pay out the announced amount of the prize have been appropriated by a governmental source or committed to in writing by a private source. (v) Prize increases .— The Secretary may increase the amount of a prize after the initial announcement of the prize under this paragraph if— (I) notice of the increase is provided in the same manner as the initial notice of the prize; and (II) the funds needed to pay out the announced amount of the increase have been appropriated by a governmental source or committed to in writing by a private source. (vi) Congressional notification .— A prize competition under this paragraph may offer a prize in an amount greater than $1,000,000 only after 30 days have elapsed after written notice has been transmitted to the Committee on Commerce, Science, and Transportation of the Senate and the Committees on Transportation and Infrastructure and Science, Space, and Technology of the House of Representatives. (vii) Award limit .— A prize competition under this section may not result in the award of more than $25,000 in cash prizes without the approval of the Secretary. (J) Compliance with existing law .— The Federal Government shall not, by virtue of offering or providing a prize under this paragraph, be responsible for compliance by registered participants in a prize competition with Federal law, including licensing, export control, and non-proliferation laws, and related regulations. (K) Notice and annual report .— (i) In general .— Not later than 30 days prior to carrying out an activity under subparagraph (A), the Secretary shall notify the Committees on Transportation and Infrastructure and Science, Space, and Technology of the House of Representatives and the Committees on Environment and Public Works and Commerce, Science, and Transportation of the Senate of the intent to use such authority. (ii) Reports .— (I) In general .— The Secretary shall submit to the committees described in clause (i) on an annual basis a report on the activities carried out under subparagraph (A) in the preceding fiscal year if the Secretary exercised the authority under subparagraph (A) in that fiscal year. (II) Information included .— A report under this subparagraph shall include, for each prize competition under subparagraph (A)— (aa) a description of the proposed goals of the prize competition; (bb) an analysis of why the use of the authority under subparagraph (A) was the preferable method of achieving the goals described in item (aa) as opposed to other authorities available to the Secretary, such as contracts, grants, and cooperative agreements; (cc) the total amount of cash prizes awarded for each prize competition, including a description of the amount of private funds contributed to the program, the source of such funds, and the manner in which the amounts of cash prizes awarded and claimed were allocated among the accounts of the Department for recording as obligations and expenditures; (dd) the methods used for the solicitation and evaluation of submissions under each prize competition, together with an assessment of the effectiveness of such methods and lessons learned for future prize competitions; (ee) a description of the resources, including personnel and funding, used in the execution of each prize competition together with a detailed description of the activities for which such resources were used and an accounting of how funding for execution was allocated among the accounts of the agency for recording as obligations and expenditures; and (ff) a description of how each prize competition advanced the mission of the Department.