; (2) provide an enduring, high-cadence test bed to mature technologies for planned reentry vehicles; and (3) transition technologies developed under other programs and projects relating to long-range ballistic or hypersonic strike missiles from the research and development or prototyping phases into operational use. (b) Grants, contracts, and other agreements (1) Authority In carrying out a pilot program under this section, the Secretary may, subject to paragraph (2), award grants and enter into contracts or other agreements with appropriate entities for the conduct of relevant flight tests of reentry vehicles and systems. (2) Grant and contract requirements (A) Merit-based grants Any grant under paragraph (1) shall be awarded through merit-based selection procedures. (B) Competitive contract procedures Any contract or other agreement under paragraph (1) shall be awarded using competitive procedures (as defined in section 3012 of title 10, United States Code). (3) Use of funds An entity that receives a grant, or enters into a contract or other agreement, as part of a pilot program carried out under this section shall use the grant, or any amount received under the contract or other agreement, to carry out one or more of the following activities: (A) Conducting flight tests to develop or validate— (i) aeroshell design; (ii) thermal protective systems; (iii) guidance and control systems; (iv) sensors; (v) communications; (vi) environmental sensors