; and (2) by adding at the end the following: (B) Subparagraph (A) shall not apply with respect to a contract entered into under this subsection with the Department of Defense. . C Industrial base matters 831. Defense industrial base advanced capabilities pilot program (a) Establishment (1) In general The Under Secretary of Defense for Acquisition and Sustainment shall carry out a pilot program through a public-private partnership to accelerate the scaling, production, and acquisition of advanced defense capabilities determined by the Under Secretary to be critical to the national security by creating incentives for investment in domestic small businesses or nontraditional businesses to create a robust and resilient defense industrial base. (2) Goals The goals of the public-private partnership pilot program are as follows: (A) To bolster the defense industrial base through acquisition and deployment of advanced capabilities necessary to field Department of Defense modernization programs and priorities. (B) To strengthen domestic defense supply chain resilience and capacity by investing in innovative defense companies. (C) To leverage private equity capital to accelerate domestic defense scaling, production, and manufacturing. (b) Public-private partnerships (1) In general In carrying out subsection (a), the Under Secretary shall enter into one or more public-private partnerships, consistent with the phased implementation provided for in subsection (e), with for-profit persons using the criteria set forth in paragraph (2). (2) Criteria The Under Secretary shall establish criteria for entering into one or more public-private partnerships and shall submit to the congressional defense committees such criteria, which shall not take effect for the purposes of entering into any agreement until 30 days after submission. (3) Operating agreement The Under Secretary and a person or persons with whom the Under Secretary enters a partnership under paragraph (1) shall enter into an operating agreement that sets forth the