[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[S. 493 Reported in Senate (RS)]
Calendar No. 17
112th CONGRESS
1st Session
S. 493
To reauthorize and improve the SBIR and STTR programs, and for other
purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
March 4, 2011
Ms. Landrieu (for herself, Ms. Snowe, Mr. Kerry, Mr. Brown of
Massachusetts, Mrs. Shaheen, Ms. Ayotte, Mr. Cardin, Mr. Pryor, and Mr.
Levin) introduced the following bill; which was read twice and referred
to the Committee on Small Business and Entrepreneurship
March 9, 2011
Reported by Ms. Landrieu, with amendments
[Omit the part struck through and insert the part printed in italic]
_______________________________________________________________________
A BILL
To reauthorize and improve the SBIR and STTR programs, and for other
purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``SBIR/STTR Reauthorization Act of
2011''.
SEC. 2. TABLE OF CONTENTS.
The table of contents for this Act is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. Definitions.
TITLE I--REAUTHORIZATION OF THE SBIR AND STTR PROGRAMS
Sec. 101. Extension of termination dates.
Sec. 102. Status of the Office of Technology.
Sec. 103. SBIR allocation increase.
Sec. 104. STTR allocation increase.
Sec. 105. SBIR and STTR award levels.
Sec. 106. Agency and program flexibility.
Sec. 107. Elimination of Phase II invitations.
Sec. 108. Participation by firms with substantial investment from
multiple venture capital operating
companies in a portion of the SBIR program.
Sec. 109. SBIR and STTR special acquisition preference.
Sec. 110. Collaborating with Federal laboratories and research and
development centers.
Sec. 111. Notice requirement.
Sec. 112. Express authority for an agency to award sequential Phase II
awards for SBIR or STTR funded projects.
TITLE II--OUTREACH AND COMMERCIALIZATION INITIATIVES
Sec. 201. Rural and State outreach.
<DELETED>Sec. 202. SBIR-STEM Workforce Development Grant Pilot Program.
</DELETED>Sec. <DELETED>203</DELETED>202. Technical assistance for
awardees.
Sec. <DELETED>204</DELETED>203. Commercialization Readiness Program at
Department of Defense.
Sec. <DELETED>205</DELETED>204. Commercialization Readiness Pilot
Program for civilian agencies.
Sec. <DELETED>206</DELETED>205. Accelerating cures.
Sec. <DELETED>207</DELETED>206. Federal agency engagement with SBIR and
STTR awardees that have been awarded
multiple Phase I awards but have not been
awarded Phase II awards.
Sec. <DELETED>208</DELETED>207. Clarifying the definition of ``Phase
III''.
Sec. <DELETED>209</DELETED>208. Shortened period for final decisions on
proposals and applications.
TITLE III--OVERSIGHT AND EVALUATION
Sec. 301. Streamlining annual evaluation requirements.
Sec. 302. Data collection from agencies for SBIR.
Sec. 303. Data collection from agencies for STTR.
Sec. 304. Public database.
Sec. 305. Government database.
Sec. 306. Accuracy in funding base calculations.
Sec. 307. Continued evaluation by the National Academy of Sciences.
Sec. 308. Technology insertion reporting requirements.
Sec. 309. Intellectual property protections.
Sec. 310. Obtaining consent from SBIR and STTR applicants to release
contact information to economic development
organizations.
Sec. 311. Pilot to allow funding for administrative, oversight, and
contract processing costs.
Sec. 312. GAO study with respect to venture capital operating company
involvement.
Sec. 313. Reducing vulnerability of SBIR and STTR programs to fraud,
waste, and abuse.
Sec. 314. Interagency policy committee.
Sec. 315. Simplified paperwork requirements.
TITLE IV--POLICY DIRECTIVES
Sec. 401. Conforming amendments to the SBIR and the STTR Policy
Directives.
TITLE V--OTHER PROVISIONS
Sec. 501. Research topics and program diversification.
Sec. 502. Report on SBIR and STTR program goals.
Sec. 503. Competitive selection procedures for SBIR and STTR programs.
SEC. 3. DEFINITIONS.
In this Act--
(1) the terms ``Administration'' and ``Administrator'' mean
the Small Business Administration and the Administrator
thereof, respectively;
(2) the terms ``extramural budget'', ``Federal agency'',
``Small Business Innovation Research Program'', ``SBIR'',
``Small Business Technology Transfer Program'', and ``STTR''
have the meanings given such terms in section 9 of the Small
Business Act (15 U.S.C. 638); and
(3) the term ``small business concern'' has the meaning
given that term under section 3 of the Small Business Act (15
U.S.C. 632).
TITLE I--REAUTHORIZATION OF THE SBIR AND STTR PROGRAMS
SEC. 101. EXTENSION OF TERMINATION DATES.
(a) SBIR.--Section 9(m) of the Small Business Act (15 U.S.C.
638(m)) is amended--
(1) by striking ``Termination.--'' and all that follows
through ``the authorization'' and inserting ``Termination.--The
authorization'';
(2) by striking ``2008'' and inserting ``2019''; and
(3) by striking paragraph (2).
(b) STTR.--Section 9(n)(1)(A) of the Small Business Act (15 U.S.C.
638(n)(1)(A)) is amended--
(1) by striking ``In general.--'' and all that follows
through ``with respect'' and inserting ``In general.--With
respect'';
(2) by striking ``2009'' and inserting ``2019''; and
(3) by striking clause (ii).
SEC. 102. STATUS OF THE OFFICE OF TECHNOLOGY.
Section 9(b) of the Small Business Act (15 U.S.C. 638(b)) is
amended--
(1) in paragraph (7), by striking ``and'' at the end;
(2) in paragraph (8), by striking the period at the end and
inserting ``; and'';
(3) by redesignating paragraph (8) as paragraph (9); and
(4) by adding at the end the following:
``(10) to maintain an Office of Technology to carry out the
responsibilities of the Administration under this section,
which shall be--
``(A) headed by the Assistant Administrator for
Technology, who shall report directly to the
Administrator; and
``(B) independent from the Office of Government
Contracting of the Administration and sufficiently
staffed and funded to comply with the oversight,
reporting, and public database responsibilities
assigned to the Office of Technology by the
Administrator.''.
SEC. 103. SBIR ALLOCATION INCREASE.
Section 9(f) of the Small Business Act (15 U.S.C. 638(f)) is
amended--
(1) in paragraph (1)--
(A) in the matter preceding subparagraph (A), by
striking ``Each'' and inserting ``Except as provided in
paragraph (2)(B), each'';
(B) in subparagraph (B), by striking ``and'' at the
end; and
(C) by striking subparagraph (C) and inserting the
following:
``(C) not less than 2.5 percent of such budget in
fiscal year 2013;
``(D) not less than 2.6 percent of such budget in
fiscal year 2014;
``(E) not less than 2.7 percent of such budget in
fiscal year 2015;
``(F) not less than 2.8 percent of such budget in
fiscal year 2016;
``(G) not less than 2.9 percent of such budget in
fiscal year 2017;
``(H) not less than 3.0 percent of such budget in
fiscal year 2018;
``(I) not less than 3.1 percent of such budget in
fiscal year 2019;
``(J) not less than 3.2 percent of such budget in
fiscal year 2020;
``(K) not less than 3.3 percent of such budget in
fiscal year 2021;
``(L) not less than 3.4 percent of such budget in
fiscal year 2022; and
``(M) not less than 3.5 percent of such budget in
fiscal year 2023 and each fiscal year thereafter.'';
<DELETED>and
</DELETED> (2) in paragraph (2)--
(A) by redesignating subparagraphs (A) and (B) as
clauses (i) and (ii), respectively, and adjusting the
margins accordingly;
(B) by striking ``A Federal agency'' and inserting
the following:
``(A) In general.--A Federal agency''; and
(C) by adding at the end the following:
``(B) Department of defense and department of
energy.--For the Department of Defense and the
Department of Energy, to the greatest extent
practicable, the percentage of the extramural budget in
excess of 2.5 percent required to be expended with
small business concerns under subparagraphs (D) through
(M) of paragraph (1)--
``(i) may not be used for new Phase I or
Phase II awards; and
``(ii) shall be used for activities that
further the readiness levels of technologies
developed under Phase II awards, including
conducting testing and evaluation to promote
the transition of such technologies into
commercial or defense products, or systems
furthering the mission needs of the Department
of Defense or the Department of Energy, as the
case may be.''<DELETED>.</DELETED>; and
(3) by adding at the end the following:
``(4) Rule of construction.--Nothing in this subsection may
be construed to prohibit a Federal agency from expending with
small business concerns an amount of the extramural budget for
research or research and development of the Federal agency that
exceeds the amount required under paragraph (1).''.
SEC. 104. STTR ALLOCATION INCREASE.
Section 9(n)(1)(B) of the Small Business Act (15 U.S.C.
638(n)(1)(B)) is amended--
(1) in clause (i), by striking ``and'' at the end;
(2) in clause (ii), by striking ``thereafter.'' and
inserting ``through fiscal year 2012;''; <DELETED>and
</DELETED> (3) by adding at the end the following:
``(iii) 0.4 percent for fiscal years 2013
and 2014;
``(iv) 0.5 percent for fiscal years 2015
and 2016; and
``(v) 0.6 percent for fiscal year 2017 and
each fiscal year
thereafter.''<DELETED>.</DELETED>; and
(4) by adding at the end the following:
``(4) Rule of construction.--Nothing in this subsection may
be construed to prohibit a Federal agency from expending with
small business concerns an amount of the extramural budget for
research or research and development of the Federal agency that
exceeds the amount required under paragraph (1).''.
SEC. 105. SBIR AND STTR AWARD LEVELS.
(a) SBIR Adjustments.--Section 9(j)(2)(D) of the Small Business Act
(15 U.S.C. 638(j)(2)(D)) is amended--
(1) by striking ``$100,000'' and inserting ``$150,000'';
and
(2) by striking ``$750,000'' and inserting ``$1,000,000''.
(b) STTR Adjustments.--Section 9(p)(2)(B)(ix) of the Small Business
Act (15 U.S.C. 638(p)(2)(B)(ix)) is amended--
(1) by striking ``$100,000'' and inserting ``$150,000'';
and
(2) by striking ``$750,000'' and inserting ``$1,000,000''.
(c) Annual Adjustments.--Section 9 of the Small Business Act (15
U.S.C. 638) is amended--
(1) in subsection (j)(2)(D), by striking ``once every 5
years to reflect economic adjustments and programmatic
considerations'' and inserting ``every year for inflation'';
and
(2) in subsection (p)(2)(B)(ix), as amended by subsection
(b) of this section, by inserting ``(each of which the
Administrator shall adjust for inflation annually)'' after
``$1,000,000,''.
(d) Limitation on Size of Awards.--Section 9 of the Small Business
Act (15 U.S.C. 638) is amended by adding at the end the following:
``(aa) Limitation on Size of Awards.--
``(1) Limitation.--No Federal agency may issue an award
under the SBIR program or the STTR program if the size of the
award exceeds the award guidelines established under this
section by more than 50 percent.
``(2) Maintenance of information.--Participating agencies
shall maintain information on awards exceeding the guidelines
established under this section, including--
``(A) the amount of each award;
``(B) a justification for exceeding the award
amount;
``(C) the identity and location of each award
recipient; and
``(D) whether an award recipient has received any
venture capital investment and, if so, whether the
recipient is majority-owned by multiple venture capital
operating companies.
``(3) Reports.--The Administrator shall include the
information described in paragraph (2) in the annual report of
the Administrator to Congress.
``(4) Rule of construction.--Nothing in this subsection
shall be construed to prevent a Federal agency from
supplementing an award under the SBIR program or the STTR
program using funds of the Federal agency that are not part of
the SBIR program or the STTR program of the Federal agency.''.
SEC. 106. AGENCY AND PROGRAM FLEXIBILITY.
Section 9 of the Small Business Act (15 U.S.C. 638), as amended by
this Act, is amended by adding at the end the following:
``(bb) Subsequent Phase II Awards.--
``(1) Agency flexibility.--A small business concern that
received an award from a Federal agency under this section
shall be eligible to receive a subsequent Phase II award from
another Federal agency, if the head of each relevant Federal
agency or the relevant component of the Federal agency makes a
written determination that the topics of the relevant awards
are the same and both agencies report the awards to the
Administrator for inclusion in the public database under
subsection (k).
``(2) SBIR and sttr program flexibility.--A small business
concern that received an award under this section under the
SBIR program or the STTR program may receive a subsequent Phase
II award in either the SBIR program or the STTR program and the
participating agency or agencies shall report the awards to the
Administrator for inclusion in the public database under
subsection (k).
``(3) Preventing duplicative awards.--Before making an
award under paragraph (1) or (2), the head of a Federal agency
shall verify that the project to be performed with the award
has not been funded under the SBIR program or STTR program of
another Federal agency.''.
SEC. 107. ELIMINATION OF PHASE II INVITATIONS.
(a) In General.--Section 9(e) of the Small Business Act (15 U.S.C.
638(e)) is amended--
(1) in paragraph (4)(B), by striking ``to further'' and
inserting: ``which shall not include any invitation, pre-
screening, pre-selection, or down-selection process for
eligibility for the second phase, that will further''; and
(2) in paragraph (6)(B), by striking ``to further develop
proposed ideas to'' and inserting ``which shall not include any
invitation, pre-screening, pre-selection, or down-selection
process for eligibility for the second phase, that will further
develop proposals that''.
SEC. 108. PARTICIPATION BY FIRMS WITH SUBSTANTIAL INVESTMENT FROM
MULTIPLE VENTURE CAPITAL OPERATING COMPANIES IN A PORTION
OF THE SBIR PROGRAM.
(a) In General.--Section 9 of the Small Business Act (15 U.S.C.
638), as amended by this Act, is amended by adding at the end the
following:
``(cc) Participation of Small Business Concerns Majority-Owned by
Venture Capital Operating Companies in the SBIR Program.--
``(1) Authority.--Upon a written determination described in
paragraph (2) provided to the Administrator and to the
Committee on Small Business and Entrepreneurship of the Senate
and the Committee on Small Business of the House of
Representatives not later than 30 days before the date on which
an award is made--
``(A) the Director of the National Institutes of
Health, the Secretary of Energy, and the Director of
the National Science Foundation may award not more than
25 percent of the funds allocated for the SBIR program
of the Federal agency to small business concerns that
are owned in majority part by multiple venture capital
operating companies through competitive, merit-based
procedures that are open to all eligible small business
concerns; and
``(B) the head of a Federal agency other than a
Federal agency described in subparagraph (A) that
participates in the SBIR program may award not more
than 15 percent of the funds allocated for the SBIR
program of the Federal agency to small business
concerns that are owned in majority part by multiple
venture capital operating companies through
competitive, merit-based procedures that are open to
all eligible small business concerns.
``(2) Determination.--A written determination described in
this paragraph is a written determination by the head of a
Federal agency that explains how the use of the authority under
paragraph (1) will--
``(A) induce additional venture capital funding of
small business innovations;
``(B) substantially contribute to the mission of
the Federal agency;
``(C) demonstrate a need for public research; and
``(D) otherwise fulfill the capital needs of small
business concerns for additional financing for the SBIR
project.
``(3) Registration.--A small business concern that is
majority-owned by multiple venture capital operating companies
and qualified for participation in the program authorized under
paragraph (1) shall--
``(A) register with the Administrator on the date
that the small business concern submits an application
for an award under the SBIR program; and
``(B) indicate in any SBIR proposal that the small
business concern is registered under subparagraph (A)
as majority-owned by multiple venture capital operating
companies.
``(4) Compliance.--
``(A) In general.--The head of a Federal agency
that makes an award under this subsection during a
fiscal year shall collect and submit to the
Administrator data relating to the number and dollar
amount of Phase I awards, Phase II awards, and any
other category of awards by the Federal agency under
the SBIR program during that fiscal year.
``(B) Annual reporting.--The Administrator shall
include as part of each annual report by the
Administration under subsection (b)(7) any data
submitted under subparagraph (A) and a discussion of
the compliance of each Federal agency that makes an
award under this subsection during the fiscal year with
the maximum percentages under paragraph (1).
``(5) Enforcement.--If a Federal agency awards more than
the percent of the funds allocated for the SBIR program of the
Federal agency authorized under paragraph (1) for a purpose
described in paragraph (1), the head of the Federal agency
shall transfer an amount equal to the amount awarded in excess
of the amount authorized under paragraph (1) to the funds for
general SBIR programs from the non-SBIR and non-STTR research
and development funds of the Federal agency not later than 180
days after the date on which the Federal agency made the award
that caused the total awarded under paragraph (1) to be more
than the amount authorized under paragraph (1) for a purpose
described in paragraph (1).
``(6) Final decisions on applications under the sbir
program.--
``(A) Definition.--In this paragraph, the term
`covered small business concern' means a small business
concern that--
``(i) was not majority-owned by multiple
venture capital operating companies on the date
on which the small business concern submitted
an application in response to a solicitation
under the SBIR programs; and
``(ii) on the date of the award under the
SBIR program is majority-owned by multiple
venture capital operating companies.
``(B) In general.--If a Federal agency does not
make an award under a solicitation under the SBIR
program before the date that is 9 months after the date
on which the period for submitting applications under
the solicitation ends--
``(i) a covered small business concern is
eligible to receive the award, without regard
to whether the covered small business concern
meets the requirements for receiving an award
under the SBIR program for a small business
concern that is majority-owned by multiple
venture capital operating companies, if the
covered small business concern meets all other
requirements for such an award; and
``(ii) the head of the Federal agency shall
transfer an amount equal to any amount awarded
to a covered small business concern under the
solicitation to the funds for general SBIR
programs from the non-SBIR and non-STTR
research and development funds of the Federal
agency, not later than 90 days after the date
on which the Federal agency makes the award.
``<DELETED>(6)</DELETED>(7) Evaluation criteria.--A Federal
agency may not use investment of venture capital as a criterion
for the award of contracts under the SBIR program or STTR
program.
(b) Technical and Conforming Amendment.--Section 3 of the Small
Business Act (15 U.S.C. 632) is amended by adding at the end the
following:
``(aa) Venture Capital Operating Company.--In this Act, the term
`venture capital operating company' means an entity described in clause
(i), (v), or (vi) of section 121.103(b)(5) of title 13, Code of Federal
Regulations (or any successor thereto).''.
(c) Rulemaking To Ensure That Firms That Are Majority-Owned by
Multiple Venture Capital Operating Companies Are Able To Participate in
a Portion of the SBIR Program.--
(1) Statement of congressional intent.--It is the stated
intent of Congress that the Administrator should promulgate
regulations to carry out the authority under section 9(cc) of
the Small Business Act, as added by this section, that--
(A) permit small business concerns that are
majority-owned by multiple venture capital operating
companies to participate in the SBIR program in
accordance with section 9(cc) of the Small Business
Act;
(B) provide specific guidance for small business
concerns that are majority-owned by multiple venture
capital operating companies with regard to eligibility,
participation, and affiliation rules; and
(C) preserve and maintain the integrity of the SBIR
program as a program for small business concerns in the
United States, prohibiting large businesses or large
entities or foreign-owned businesses or entities from
participation in the program established under section
9 of the Small Business Act.
(2) Rulemaking required.--
(A) Proposed regulations.--Not later than 4 months
after the date of enactment of this Act, the
Administrator shall issue proposed regulations to amend
section 121.103 (relating to determinations of
affiliation applicable to the SBIR program) and section
121.702 (relating to ownership and control standards
and size standards applicable to the SBIR program) of
title 13, Code of Federal Regulations, for firms that
are majority-owned by multiple venture capital
operating companies and participating in the SBIR
program solely under the authority under section 9(cc)
of the Small Business Act, as added by this section.
(B) Final regulations.--Not later than 1 year after
the date of enactment of this Act, and after providing
notice of and opportunity for comment on the proposed
regulations issued under subparagraph (A), the
Administrator shall issue final or interim final
regulations under this subsection.
(3) Contents.--
(A) In general.--The regulations issued under this
subsection shall permit the participation of applicants
majority-owned by multiple venture capital operating
companies in the SBIR program in accordance with
section 9(cc) of the Small Business Act, as added by
this section, unless the Administrator determines--
(i) in accordance with the size standards
established under subparagraph (B), that the
applicant is--
(I) a large business or large
entity; or
(II) majority-owned or controlled
by a large business or large entity; or
(ii) in accordance with the criteria
established under subparagraph (C), that the
applicant--
(I) is a foreign business or a
foreign entity or is not a citizen of
the United States or alien lawfully
admitted for permanent residence; or
(II) is majority-owned or
controlled by a foreign business,
foreign entity, or person who is not a
citizen of the United States or alien
lawfully admitted for permanent
residence.
(B) Size standards.--Under the authority to
establish size standards under paragraphs (2) and (3)
of section 3(a) of the Small Business Act (15 U.S.C.
632(a)), the Administrator shall, in accordance with
paragraph (1) of this subsection, establish size
standards for applicants seeking to participate in the
SBIR program solely under the authority under section
9(cc) of the Small Business Act, as added by this
section.
(C) Criteria for determining foreign ownership.--
The Administrator shall establish criteria for
determining whether an applicant meets the requirements
under subparagraph (A)(ii), and, in establishing the
criteria, shall consider whether the criteria should
include--
(i) whether the applicant is at least 51
percent owned or controlled by citizens of the
United States or domestic venture capital
operating companies;
(ii) whether the applicant is domiciled in
the United States; and
(iii) whether the applicant is a direct or
indirect subsidiary of a foreign-owned firm,
including whether the criteria should include
that an applicant is a direct or indirect
subsidiary of a foreign-owned entity if--
(I) any venture capital operating
company that owns more than 20 percent
of the applicant is a direct or
indirect subsidiary of a foreign-owned
entity; or
(II) in the aggregate, entities
that are direct or indirect
subsidiaries of foreign-owned entities
own more than 49 percent of the
applicant.
(D) Criteria for determining affiliation.--The
Administrator shall establish criteria, in accordance
with paragraph (1), for determining whether an
applicant is affiliated with a venture capital
operating company or any other business that the
venture capital operating company has financed and, in
establishing the criteria, shall specify that--
(i) if a venture capital operating company
that is determined to be affiliated with an
applicant is a minority investor in the
applicant, the portfolio companies of the
venture capital operating company shall not be
determined to be affiliated with the applicant,
unless--
(I) the venture capital operating
company owns a majority of the
portfolio company; or
(II) the venture capital operating
company holds a majority of the seats
on the board of directors of the
portfolio company;
(ii) subject to clause (i), the
Administrator retains the authority to
determine whether a venture capital operating
company is affiliated with an applicant,
including establishing other criteria;
(iii) the Administrator may not determine
that a portfolio company of a venture capital
operating company is affiliated with an
applicant based solely on one or more shared
investors; and
(iv) subject to clauses (i), (ii), and
(iii), the Administrator retains the authority
to determine whether a portfolio company of a
venture capital operating company is affiliated
with an applicant based on factors independent
of whether there is a shared investor, such as
whether there are contractual obligations
between the portfolio company and the
applicant.
(4) Enforcement.--If the Administrator does not issue final
or interim final regulations under this subsection on or before
the date that is 1 year after the date of enactment of this
Act, the Administrator may not carry out any activities under
section 4(h) of the Small Business Act (15 U.S.C. 633(h)) (as
continued in effect pursuant to the Act entitled ``An Act to
extend temporarily certain authorities of the Small Business
Administration'', approved October 10, 2006 (Public Law 109-
316; 120 Stat. 1742)) during the period beginning on the date
that is 1 year and 1 day after the date of enactment of this
Act, and ending on the date on which the final or interim final
regulations are issued.
(5) Definition.--In this subsection, the term ``venture
capital operating company'' has the same meaning as in section
3(aa) of the Small Business Act, as added by this section.
(d) Assistance for Determining Affiliates.--
(1) Clear explanation required.--Not later than 30 days
after the date of enactment of this Act, the Administrator
shall post on the Web site of the Administration (with a direct
link displayed on the homepage of the Web site of the
Administration or the SBIR and STTR Web sites of the
Administration)--
(A) a clear explanation of the SBIR and STTR
affiliation rules under part 121 of title 13, Code of
Federal Regulations; and
(B) contact information for officers or employees
of the Administration who--
(i) upon request, shall review an issue
relating to the rules described in subparagraph
(A); and
(ii) shall respond to a request under
clause (i) not later than 20 business days
after the date on which the request is
received.
(2) Inclusion of affiliation rules for certain small
business concerns.--On and after the date on which the final
regulations under subsection (c) are issued, the Administrator
shall post on the Web site of the Administration information
relating to the regulations, in accordance with paragraph (1).
SEC. 109. SBIR AND STTR SPECIAL ACQUISITION PREFERENCE.
Section 9(r) of the Small Business Act (15 U.S.C. 638(r)) is
amended by adding at the end the following:
``(4) Phase iii awards.--To the greatest extent
practicable, Federal agencies and Federal prime contractors
shall issue Phase III awards relating to technology, including
sole source awards, to the SBIR and STTR award recipients that
developed the technology.''.
SEC. 110. COLLABORATING WITH FEDERAL LABORATORIES AND RESEARCH AND
DEVELOPMENT CENTERS.
Section 9 of the Small Business Act (15 U.S.C. 638), as amended by
this Act, is amended by adding at the end the following:
``(dd) Collaborating With Federal Laboratories and Research and
Development Centers.--
``(1) Authorization.--Subject to the limitations under this
section, the head of each participating Federal agency may make
SBIR and STTR awards to any eligible small business concern
that--
``(A) intends to enter into an agreement with a
Federal laboratory or federally funded research and
development center for portions of the activities to be
performed under that award; or
``(B) has entered into a cooperative research and
development agreement (as defined in section 12(d) of
the Stevenson-Wydler Technology Innovation Act of 1980
(15 U.S.C. 3710a(d))) with a Federal laboratory.
``(2) Prohibition.--No Federal agency shall--
``(A) condition an SBIR or STTR award upon entering
into agreement with any Federal laboratory or any
federally funded laboratory or research and development
center for any portion of the activities to be
performed under that award;
``(B) approve an agreement between a small business
concern receiving a SBIR or STTR award and a Federal
laboratory or federally funded laboratory or research
and development center, if the small business concern
performs a lesser portion of the activities to be
performed under that award than required by this
section and by the SBIR Policy Directive and the STTR
Policy Directive of the Administrator; or
``(C) approve an agreement that violates any
provision, including any data rights protections
provision, of this section or the SBIR and the STTR
Policy Directives.
``(3) Implementation.--Not later than 180 days after the
date of enactment of this subsection, the Administrator shall
modify the SBIR Policy Directive and the STTR Policy Directive
issued under this section to ensure that small business
concerns--
``(A) have the flexibility to use the resources of
the Federal laboratories and federally funded research
and development centers; and
``(B) are not mandated to enter into agreement with
any Federal laboratory or any federally funded
laboratory or research and development center as a
condition of an award.''.
SEC. 111. NOTICE REQUIREMENT.
(a) SBIR Program.--Section 9(g) of the Small Business Act (15
U.S.C. 638(g)) is amended--
(1) in paragraph (10), by striking ``and'' at the end;
(2) in paragraph (11), by striking the period at the end
and inserting a semicolon; and
(3) by adding at the end the following:
``(12) provide timely notice to the Administrator of any
case or controversy before any Federal judicial or
administrative tribunal concerning the SBIR program of the
Federal agency; and''.
(b) STTR Program.--Section 9(o) of the Small Business Act (15
U.S.C. 638(o)) is amended--
(1) by striking paragraph (15);
(2) in paragraph (16), by striking the period at the end
and inserting ``; and'';
(3) by redesignating paragraph (16) as paragraph (15); and
(4) by adding at the end the following:
``(16) provide timely notice to the Administrator of any
case or controversy before any Federal judicial or
administrative tribunal concerning the STTR program of the
Federal agency.''.
SEC. 112. EXPRESS AUTHORITY FOR AN AGENCY TO AWARD SEQUENTIAL PHASE II
AWARDS FOR SBIR OR STTR FUNDED PROJECTS.
Section 9 of the Small Business Act (15 U.S.C. 638), as amended by
this Act, is amended by adding at the end the following:
``(ee) Additional Phase II SBIR and STTR Awards.--A small business
concern that receives a Phase II SBIR award or a Phase II STTR award
for a project remains eligible to receive an additional Phase II SBIR
award or Phase II STTR award for that project.''.
TITLE II--OUTREACH AND COMMERCIALIZATION INITIATIVES
SEC. 201. RURAL AND STATE OUTREACH.
(a) In General.--Section 9 of the Small Business Act (15 U.S.C.
638) is amended by inserting after subsection (r) the following:
``(s) Federal and State Technology Partnership Program.--
``(1) Definitions.--In this subsection, the following
definitions apply:
``(A) Applicant.--The term `applicant' means an
entity, organization, or individual that submits a
proposal for an award or a cooperative agreement under
this subsection.
``(B) FAST program.--The term `FAST program' means
the Federal and State Technology Partnership Program
established under this subsection.
``(C) Recipient.--The term `recipient' means a
person that receives an award or becomes party to a
cooperative agreement under this subsection.
``(D) State.--The term `State' means each of the
several States, the District of Columbia, the
Commonwealth of Puerto Rico, the Virgin Islands, Guam,
and American Samoa.
``(E) Definitions relating to mentoring networks.--
The terms `business advice and counseling', `mentor',
and `mentoring network' have the meanings given those
terms in section 34(e).
``(2) Establishment of program.--The Administrator shall
establish a program to be known as the Federal and State
Technology Partnership Program, the purpose of which shall be
to strengthen the technological competitiveness of small
business concerns in the States.
``(3) Grants and cooperative agreements.--
``(A) Joint review.--In carrying out the FAST
program, the Administrator and the program managers for
the SBIR program and STTR program at the National
Science Foundation, the Department of Defense, and any
other Federal agency determined appropriate by the
Administrator shall jointly review proposals submitted
by applicants and may make awards or enter into
cooperative agreements under this subsection based on
the factors for consideration set forth in subparagraph
(B), in order to enhance or develop in a State--
``(i) technology research and development
by small business concerns;
``(ii) technology transfer from university
research to technology-based small business
concerns;
``(iii) technology deployment and diffusion
benefitting small business concerns;
``(iv) the technological capabilities of
small business concerns through the
establishment or operation of consortia
comprised of entities, organizations, or
individuals, including--
``(I) State and local development
agencies and entities;
``(II) representatives of
technology-based small business
concerns;
``(III) industries and emerging
companies;
``(IV) universities; and
``(V) small business development
centers; and
``(v) outreach, financial support, and
technical assistance to technology-based small
business concerns participating in or
interested in participating in an SBIR program
or STTR program, including initiatives--
``(I) to make grants or loans to
companies to pay a portion or all of
the cost of developing SBIR or STTR
proposals;
``(II) to establish or operate a
Mentoring Network within the FAST
program to provide business advice and
counseling that will assist small
business concerns that have been
identified by FAST program
participants, program managers of
participating SBIR agencies, the
Administration, or other entities that
are knowledgeable about the SBIR and
STTR programs as good candidates for
the SBIR and STTR programs, and that
would benefit from mentoring, in
accordance with section 34;
``(III) to create or participate in
a training program for individuals
providing SBIR or STTR outreach and
assistance at the State and local
levels; and
``(IV) to encourage the
commercialization of technology
developed through funding under the
SBIR program or the STTR program.
``(B) Selection considerations.--In making awards
or entering into cooperative agreements under this
subsection, the Administrator and the program managers
referred to in subparagraph (A)--
``(i) may only consider proposals by
applicants that intend to use a portion of the
Federal assistance provided under this
subsection to provide outreach, financial
support, or technical assistance to technology-
based small business concerns participating in
or interested in participating in the SBIR
program or STTR program; and
``(ii) shall consider, at a minimum--
``(I) whether the applicant has
demonstrated that the assistance to be
provided would address unmet needs of
small business concerns in the
community, and whether it is important
to use Federal funding for the proposed
activities;
``(II) whether the applicant has
demonstrated that a need exists to
increase the number or success of small
high-technology businesses in the State
or an area of the State, as measured by
the number of Phase I and Phase II SBIR
awards that have historically been
received by small business concerns in
the State or area of the State;
``(III) whether the projected costs
of the proposed activities are
reasonable;
``(IV) whether the proposal
integrates and coordinates the proposed
activities with other State and local
programs assisting small high-
technology firms in the State;
``(V) the manner in which the
applicant will measure the results of
the activities to be conducted; and
``(VI) whether the proposal
addresses the needs of small business
concerns--
``(aa) owned and controlled
by women;
``(bb) that are socially
and economically disadvantaged
small business concerns (as
defined in section 8(a)(4)(A));
``(cc) that are HUBZone
small business concerns;
``(dd) located in areas
that have historically not
participated in the SBIR and
STTR programs;
``(ee) owned and controlled
by service-disabled veterans;
``(ff) owned and controlled
by Native Americans; and
``(gg) located in
geographic areas with an
unemployment rate that exceeds
the national unemployment rate,
based on the most recently
available monthly publications
of the Bureau of Labor
Statistics of the Department of
Labor.
``(C) Proposal limit.--Not more than 1 proposal may
be submitted for inclusion in the FAST program under
this subsection to provide services in any one State in
any 1 fiscal year.
``(D) Process.--Proposals and applications for
assistance under this subsection shall be in such form
and subject to such procedures as the Administrator
shall establish. The Administrator shall promulgate
regulations establishing standards for the
consideration of proposals under subparagraph (B),
including standards regarding each of the
considerations identified in subparagraph (B)(ii).
``(4) Cooperation and coordination.--In carrying out the
FAST program, the Administrator shall cooperate and coordinate
with--
``(A) Federal agencies required by this section to
have an SBIR program; and
``(B) entities, organizations, and individuals
actively engaged in enhancing or developing the
technological capabilities of small business concerns,
including--
``(i) State and local development agencies
and entities;
``(ii) State committees established under
the Experimental Program to Stimulate
Competitive Research of the National Science
Foundation (as established under section 113 of
the National Science Foundation Authorization
Act of 1988 (42 U.S.C. 1862g));
``(iii) State science and technology
councils; and
``(iv) representatives of technology-based
small business concerns.
``(5) Administrative requirements.--
``(A) Competitive basis.--Awards and cooperative
agreements under this subsection shall be made or
entered into, as applicable, on a competitive basis.
``(B) Matching requirements.--
``(i) In general.--The non-Federal share of
the cost of an activity (other than a planning
activity) carried out using an award or under a
cooperative agreement under this subsection
shall be--
``(I) except as provided in clause
(iii), 35 cents for each Federal
dollar, in the case of a recipient that
will serve small business concerns
located in 1 of the 18 States receiving
the fewest Phase I SBIR awards;
``(II) except as provided in clause
(ii) or (iii), 1 dollar for each
Federal dollar, in the case of a
recipient that will serve small
business concerns located in 1 of the
16 States receiving the greatest number
of Phase I SBIR awards; and
``(III) except as provided in
clause (ii) or (iii), 50 cents for each
Federal dollar, in the case of a
recipient that will serve small
business concerns located in a State
that is not described in subclause (I)
or (II) that is receiving Phase I SBIR
awards.
``(ii) Low-income areas.--The non-Federal
share of the cost of the activity carried out
using an award or under a cooperative agreement
under this subsection shall be 35 cents for
each Federal dollar that will be directly
allocated by a recipient described in clause
(i) to serve small business concerns located in
a qualified census tract, as that term is
defined in section 42(d)(5)(B)(ii)(I) of the
Internal Revenue Code of 1986. Federal dollars
not so allocated by that recipient shall be
subject to the matching requirements of clause
(i).
``(iii) Rural areas.--
``(I) In general.--Except as
provided in subclause (II), the non-
Federal share of the cost of the
activity carried out using an award or
under a cooperative agreement under
this subsection shall be 35 cents for
each Federal dollar that will be
directly allocated by a recipient
described in clause (i) to serve small
business concerns located in a rural
area.
``(II) Enhanced rural awards.--For
a recipient located in a rural area
that is located in a State described in
clause (i)(I), the non-Federal share of
the cost of the activity carried out
using an award or under a cooperative
agreement under this subsection shall
be 15 cents for each Federal dollar
that will be directly allocated by a
recipient described in clause (i) to
serve small business concerns located
in the rural area.
``(III) Definition of rural area.--
In this clause, the term `rural area'
has the meaning given that term in
section 1393(a)(2) of the Internal
Revenue Code of 1986.
``(iv) Types of funding.--The non-Federal
share of the cost of an activity carried out by
a recipient shall be comprised of not less than
50 percent cash and not more than 50 percent of
indirect costs and in-kind contributions,
except that no such costs or contributions may
be derived from funds from any other Federal
program.
``(v) Rankings.--For the first full fiscal
year after the date of enactment of the SBIR/
STTR Reauthorization Act of 2011, and each
fiscal year thereafter, based on the statistics
for the most recent full fiscal year for which
the Administrator has compiled statistics, the
Administrator shall reevaluate the ranking of
each State for purposes of clause (i).
``(C) Duration.--Awards may be made or cooperative
agreements entered into under this subsection for
multiple years, not to exceed 5 years in total.
``(6) Annual reports.--The Administrator shall submit an
annual report to the Committee on Small Business of the Senate
and the Committee on Science and the Committee on Small
Business of the House of Representatives regarding--
``(A) the number and amount of awards provided and
cooperative agreements entered into under the FAST
program during the preceding year;
``(B) a list of recipients under this subsection,
including their location and the activities being
performed with the awards made or under the cooperative
agreements entered into; and
``(C) the Mentoring Networks and the mentoring
database, as provided for under section 34, including--
``(i) the status of the inclusion of
mentoring information in the database required
by subsection (k); and
``(ii) the status of the implementation and
description of the usage of the Mentoring
Networks.
``(7) Program levels.--
``(A) In general.--There is authorized to be
appropriated to carry out the FAST program, including
Mentoring Networks, under this subsection and section
34, $15,000,000 for each of fiscal years 2011 through
2016.
``(B) Mentoring database.--Of the total amount made
available under subparagraph (A) for fiscal years 2011
through 2016, a reasonable amount, not to exceed a
total of $500,000, may be used by the Administration to
carry out section 34(d).
``(8) Termination.--The authority to carry out the FAST
program under this subsection shall terminate on September 30,
2016.''.
(b) Technical and Conforming Amendments.--The Small Business Act
(15 U.S.C. 631 et seq.) is amended--
(1) by striking section 34 (15 U.S.C. 657d);
(2) by redesignating sections 35 through 43 as sections 34
through 42, respectively;
(3) in section 9(k)(1)(D) (15 U.S.C. 638(k)(1)(D)), by
striking ``section 35(d)'' and inserting ``section 34(d)'';
(4) in section 34 (15 U.S.C. 657e), as so redesignated--
(A) in subsection (c)(1), by striking ``section
34(c)(1)(E)(ii)'' and inserting ``section
9(s)(3)(A)(v)(II)'';
(B) by striking ``section 34'' each place it
appears and inserting ``section 9(s)''; and
(C) by adding at the end the following:
``(e) Definitions.--In this section, the following definitions
apply:
``(1) Business advice and counseling.--The term `business
advice and counseling' means providing advice and assistance on
matters described in subsection (c)(2)(B) to small business
concerns to guide them through the SBIR and STTR program
process, from application to award and successful completion of
each phase of the program.
``(2) FAST program.--The term `FAST program' means the
Federal and State Technology Partnership Program established
under section 9(s).
``(3) Mentor.--The term `mentor' means an individual
described in subsection (c)(2).
``(4) Mentoring network.--The term `Mentoring Network'
means an association, organization, coalition, or other entity
(including an individual) that meets the requirements of
subsection (c).
``(5) Recipient.--The term `recipient' means a person that
receives an award or becomes party to a cooperative agreement
under this section.
``(6) SBIR program.--The term `SBIR program' has the same
meaning as in section 9(e)(4).
``(7) State.--The term `State' means each of the several
States, the District of Columbia, the Commonwealth of Puerto
Rico, the Virgin Islands, Guam, and American Samoa.
``(8) STTR program.--The term `STTR program' has the same
meaning as in section 9(e)(6).'';
(5) in section 36(d) (15 U.S.C. 657i(d)), as so
redesignated, by striking ``section 43'' and inserting
``section 42'';
(6) in section 39(d) (15 U.S.C. 657l(d)), as so
redesignated, by striking ``section 43'' and inserting
``section 42''; and
(7) in section 40(b) (15 U.S.C. 657m(b)), as so
redesignated, by striking ``section 43'' and inserting
``section 42''.
<DELETED>SEC. 202. SBIR-STEM WORKFORCE DEVELOPMENT GRANT PILOT
PROGRAM.</DELETED>
<DELETED> (a) Pilot Program Established.--From amounts made
available to carry out this section, the Administrator shall establish
a SBIR-STEM Workforce Development Grant Pilot Program to encourage the
business community to provide workforce development opportunities for
college students, in the fields of science, technology, engineering,
and math (in this section referred to as ``STEM college students''),
particularly those that are socially and economically disadvantaged
individuals, from rural areas, or from areas with high unemployment, as
determined by the Administrator, by providing a SBIR bonus
grant.</DELETED>
<DELETED> (b) Eligible Entities Defined.--In this section the term
``eligible entity'' means a grantee receiving a grant under the SBIR
Program on the date of the bonus grant under subsection (a) that
provides an internship program for STEM college students.</DELETED>
<DELETED> (c) Awards.--An eligible entity shall receive a bonus
grant equal to 10 percent of either a Phase I or Phase II grant, as
applicable, with a total award maximum of not more than $10,000 per
year.</DELETED>
<DELETED> (d) Evaluation.--Following the fourth year of funding
under this section, the Administrator shall submit to Congress as part
of the report under section 9(b)(7) of the Small Business Act (15
U.S.C. 638(b)(7)) the results of the SBIR-STEM Workforce Development
Grant Pilot Program.</DELETED>
<DELETED> (e) Authorization of Appropriations.--There are authorized
to be appropriated to carry out this section--</DELETED>
<DELETED> (1) $1,000,000 for fiscal year 2012;</DELETED>
<DELETED> (2) $1,000,000 for fiscal year 2013;</DELETED>
<DELETED> (3) $1,000,000 for fiscal year 2014;</DELETED>
<DELETED> (4) $1,000,000 for fiscal year 2015; and</DELETED>
<DELETED> (5) $1,000,000 for fiscal year 2016.</DELETED>
SEC. <DELETED>203</DELETED>202. TECHNICAL ASSISTANCE FOR AWARDEES.
Section 9(q) of the Small Business Act (15 U.S.C. 638(q)) is
amended--
(1) in paragraph (1)--
(A) by inserting ``or STTR program'' after ``SBIR
program''; and
(B) by striking ``SBIR projects'' and inserting
``SBIR or STTR projects'';
(2) in paragraph (2), by striking ``3 years'' and inserting
``5 years''; and
(3) in paragraph (3)--
(A) in subparagraph (A)--
(i) by inserting ``or STTR'' after
``SBIR''; and
(ii) by striking ``$4,000'' and inserting
``$5,000'';
(B) by striking subparagraph (B) and inserting the
following:
``(B) Phase ii.--A Federal agency described in
paragraph (1) may--
``(i) provide to the recipient of a Phase
II SBIR or STTR award, through a vendor
selected under paragraph (2), the services
described in paragraph (1), in an amount equal
to not more than $5,000 per year; or
``(ii) authorize the recipient of a Phase
II SBIR or STTR award to purchase the services
described in paragraph (1), in an amount equal
to not more than $5,000 per year, which shall
be in addition to the amount of the recipient's
award.''; and
(C) by adding at the end the following:
``(C) Flexibility.--In carrying out subparagraphs
(A) and (B), each Federal agency shall provide the
allowable amounts to a recipient that meets the
eligibility requirements under the applicable
subparagraph, if the recipient requests to seek
technical assistance from an individual or entity other
than the vendor selected under paragraph (2) by the
Federal agency.
``(D) Limitation.--A Federal agency may not--
``(i) use the amounts authorized under
subparagraph (A) or (B) unless the vendor
selected under paragraph (2) provides the
technical assistance to the recipient; or
``(ii) enter a contract with a vendor under
paragraph (2) under which the amount provided
for technical assistance is based on total
number of Phase I or Phase II awards.''.
SEC. <DELETED>204</DELETED>203. COMMERCIALIZATION READINESS PROGRAM AT
DEPARTMENT OF DEFENSE.
(a) In General.--Section 9(y) of the Small Business Act (15 U.S.C.
638(y)) is amended--
(1) in the subsection heading, by striking ``Pilot'' and
inserting ``Readiness'';
(2) by striking ``Pilot'' each place that term appears and
inserting ``Readiness'';
(3) in paragraph (1)--
(A) by inserting ``or Small Business Technology
Transfer Program'' after ``Small Business Innovation
Research Program''; and
(B) by adding at the end the following: ``The
authority to create and administer a Commercialization
Readiness Program under this subsection may not be
construed to eliminate or replace any other SBIR
program or STTR program that enhances the insertion or
transition of SBIR or STTR technologies, including any
such program in effect on the date of enactment of the
National Defense Authorization Act for Fiscal Year 2006
(Public Law 109-163; 119 Stat. 3136).'';
(4) in paragraph (2), by inserting ``or Small Business
Technology Transfer Program'' after ``Small Business Innovation
Research Program'';
(5) by striking paragraphs (5) and (6); and
(6) by inserting after paragraph (4) the following:
``(5) Insertion incentives.--For any contract with a value
of not less than $100,000,000, the Secretary of Defense is
authorized to--
``(A) establish goals for the transition of Phase
III technologies in subcontracting plans; and
``(B) require a prime contractor on such a contract
to report the number and dollar amount of contracts
entered into by that prime contractor for Phase III
SBIR or STTR projects.
``(6) Goal for sbir and sttr technology insertion.--The
Secretary of Defense shall--
``(A) set a goal to increase the number of Phase II
SBIR contracts and the number of Phase II STTR
contracts awarded by that Secretary that lead to
technology transition into programs of record or
fielded systems;
``(B) use incentives in effect on the date of
enactment of the SBIR/STTR Reauthorization Act of 2011,
or create new incentives, to encourage agency program
managers and prime contractors to meet the goal under
subparagraph (A); and
``(C) include in the annual report to Congress the
percentage of contracts described in subparagraph (A)
awarded by that Secretary, and information on the
ongoing status of projects funded through the
Commercialization Readiness Program and efforts to
transition these technologies into programs of record
or fielded systems.''.
(b) Technical and Conforming Amendment.--Section 9(i)(1) of the
Small Business Act (15 U.S.C. 638(i)(1)) is amended by inserting
``(including awards under subsection (y))'' after ``the number of
awards''.
SEC. <DELETED>205</DELETED>204. COMMERCIALIZATION READINESS PILOT
PROGRAM FOR CIVILIAN AGENCIES.
Section 9 of the Small Business Act (15 U.S.C. 638), as amended by
this Act, is amended by adding at the end the following:
``(ff) Pilot Program.--
``(1) Authorization.--The head of each covered Federal
agency may allocate not more than 10 percent of the funds
allocated to the SBIR program and the STTR program of the
covered Federal agency--
``(A) for awards for technology development,
testing, and evaluation of SBIR and STTR Phase II
technologies; or
``(B) to support the progress of research or
research and development conducted under the SBIR or
STTR programs to Phase III.
``(2) Application by federal agency.--
``(A) In general.--A covered Federal agency may not
establish a pilot program unless the covered Federal
agency makes a written application to the
Administrator, not later than 90 days before to the
first day of the fiscal year in which the pilot program
is to be established, that describes a compelling
reason that additional investment in SBIR or STTR
technologies is necessary, including unusually high
regulatory, systems integration, or other costs
relating to development or manufacturing of
identifiable, highly promising small business
technologies or a class of such technologies expected
to substantially advance the mission of the agency.
``(B) Determination.--The Administrator shall--
``(i) make a determination regarding an
application submitted under subparagraph (A)
not later than 30 days before the first day of
the fiscal year for which the application is
submitted;
``(ii) publish the determination in the
Federal Register; and
``(iii) make a copy of the determination
and any related materials available to the
Committee on Small Business and
Entrepreneurship of the Senate and the
Committee on Small Business of the House of
Representatives.
``(3) Maximum amount of award.--The head of a covered
Federal agency may not make an award under a pilot program in
excess of 3 times the dollar amounts generally established for
Phase II awards under subsection (j)(2)(D) or (p)(2)(B)(ix).
``(4) Registration.--Any applicant that receives an award
under a pilot program shall register with the Administrator in
a registry that is available to the public.
``(5) Report.--The head of each covered Federal agency
shall include in the annual report of the covered Federal
agency to the Administrator an analysis of the various
activities considered for inclusion in the pilot program of the
covered Federal agency and a statement of the reasons why each
activity considered was included or not included, as the case
may be.
``(6) Termination.--The authority to establish a pilot
program under this section expires at the end of fiscal year
2014.
``(7) Definitions.--In this subsection--
``(A) the term `covered Federal agency'--
``(i) means a Federal agency participating
in the SBIR program or the STTR program; and
``(ii) does not include the Department of
Defense; and
``(B) the term `pilot program' means the program
established under paragraph (1).''.
SEC. <DELETED>206</DELETED>205. ACCELERATING CURES.
(a) In General.--The Small Business Act (15 U.S.C. 631 et seq.) is
amended by inserting after section 42, as redesignated by section 201
of this Act, the following:
``SEC. 43. SMALL BUSINESS INNOVATION RESEARCH PROGRAM.
``(a) NIH Cures Pilot.--
``(1) Establishment.--An independent advisory board shall
be established at the National Academy of Sciences (in this
section referred to as the `advisory board') to conduct
periodic evaluations of the SBIR program (as that term is
defined in section 9) of each of the National Institutes of
Health (referred to in this section as the `NIH') institutes
and centers for the purpose of improving the management of the
SBIR program through data-driven assessment.
``(2) Membership.--
``(A) In general.--The advisory board shall consist
of--
``(i) the Director of the NIH;
``(ii) the Director of the SBIR program of
the NIH;
``(iii) senior NIH agency managers,
selected by the Director of NIH;
``(iv) industry experts, selected by the
Council of the National Academy of Sciences in
consultation with the Associate Administrator
for Technology of the Administration and the
Director of the Office of Science and
Technology Policy; and
``(v) owners or operators of small business
concerns that have received an award under the
SBIR program of the NIH, selected by the
Associate Administrator for Technology of the
Administration.
``(B) Number of members.--The total number of
members selected under clauses (iii), (iv), and (v) of
subparagraph (A) shall not exceed 10.
``(C) Equal representation.--The total number of
members of the advisory board selected under clauses
(i), (ii), (iii), and (iv) of subparagraph (A) shall be
equal to the number of members of the advisory board
selected under subparagraph (A)(v).
``(b) Addressing Data Gaps.--In order to enhance the evidence-base
guiding SBIR program decisions and changes, the Director of the SBIR
program of the NIH shall address the gaps and deficiencies in the data
collection concerns identified in the 2007 report of the National
Academy of Science entitled `An Assessment of the Small Business
Innovation Research Program at the NIH'.
``(c) Pilot Program.--
``(1) In general.--The Director of the SBIR program of the
NIH may initiate a pilot program, under a formal mechanism for
designing, implementing, and evaluating pilot programs, to spur
innovation and to test new strategies that may enhance the
development of cures and therapies.
``(2) Considerations.--The Director of the SBIR program of
the NIH may consider conducting a pilot program to include
individuals with successful SBIR program experience in study
sections, hiring individuals with small business development
experience for staff positions, separating the commercial and
scientific review processes, and examining the impact of the
trend toward larger awards on the overall program.
``(d) Report to Congress.--The Director of the NIH shall submit an
annual report to Congress and the advisory board on the activities of
the SBIR program of the NIH under this section.
``(e) SBIR Grants and Contracts.--
``(1) In general.--In awarding grants and contracts under
the SBIR program of the NIH each SBIR program manager shall
emphasize applications that identify products, processes,
technologies, and services that may enhance the development of
cures and therapies.
``(2) Examination of commercialization and other metrics.--
The advisory board shall evaluate the implementation of the
requirement under paragraph (1) by examining increased
commercialization and other metrics, to be determined and
collected by the SBIR program of the NIH.
``(3) Phase i and ii.--To the greatest extent practicable,
the Director of the SBIR program of the NIH shall reduce the
time period between Phase I and Phase II funding of grants and
contracts under the SBIR program of the NIH to 90 days.
``(f) Limit.--Not more than a total of 1 percent of the extramural
budget (as defined in section 9 of the Small Business Act (15 U.S.C.
638)) of the NIH for research or research and development may be used
for the pilot program under subsection (c) and to carry out subsection
(e).''.
(b) Prospective Repeal.--Effective 5 years after the date of
enactment of this Act, the Small Business Act (15 U.S.C. 631 et seq.)
is amended--
(1) by striking section 43, as added by subsection (a); and
(2) by redesignating sections 44 and 45 as sections 43 and
44, respectively.
SEC. <DELETED>207</DELETED>206. FEDERAL AGENCY ENGAGEMENT WITH SBIR AND
STTR AWARDEES THAT HAVE BEEN AWARDED MULTIPLE PHASE I
AWARDS BUT HAVE NOT BEEN AWARDED PHASE II AWARDS.
Section 9 of the Small Business Act (15 U.S.C. 638), as amended by
this Act, is amended by adding at the end the following:
``(gg) Requirements Relating to Federal Agency Engagement With
Certain Phase I SBIR and STTR Awardees.--
``(1) Definition.--In this subsection, the term `covered
awardee' means a small business concern that--
``(A) has received multiple Phase I awards over
multiple years, as determined by the head of a Federal
agency, under the SBIR program or the STTR program of
the Federal agency; and
``(B) has not received a Phase II award--
``(i) under the SBIR program or STTR
program, as the case may be, of the Federal
agency described in subparagraph (A); or
``(ii) relating to a Phase I award
described in subparagraph (A) under the SBIR
program or the STTR program of another Federal
agency.
``(2) Performance measures.--The head of each Federal
agency that participates in the SBIR program or the STTR
program shall develop performance measures for any covered
awardee relating to commercializing research or research and
development activities under the SBIR program or the STTR
program of the Federal agency.''.
SEC. <DELETED>208</DELETED>207. CLARIFYING THE DEFINITION OF ``PHASE
III''.
(a) Phase III Awards.--Section 9(e) of the Small Business Act (15
U.S.C. 638(e)) is amended--
(1) in paragraph (4)(C), in the matter preceding clause
(i), by inserting ``for work that derives from, extends, or
completes efforts made under prior funding agreements under the
SBIR program'' after ``phase'';
(2) in paragraph (6)(C), in the matter preceding clause
(i), by inserting ``for work that derives from, extends, or
completes efforts made under prior funding agreements under the
STTR program'' after ``phase'';
(3) in paragraph (8), by striking ``and'' at the end;
(4) in paragraph (9), by striking the period at the end and
inserting a semicolon; and
(5) by adding at the end the following:
``(10) the term `commercialization' means--
``(A) the process of developing products,
processes, technologies, or services; and
``(B) the production and delivery of products,
processes, technologies, or services for sale (whether
by the originating party or by others) to or use by the
Federal Government or commercial markets;''.
(b) Technical and Conforming Amendments.--The Small Business Act
(15 U.S.C. 631 et seq.) is amended--
(1) in section 9 (15 U.S.C. 638)--
(A) in subsection (e)--
(i) in paragraph (4)(C)(ii), by striking
``scientific review criteria'' and inserting
``merit-based selection procedures'';
(ii) in paragraph (9), by striking ``the
second or the third phase'' and inserting
``Phase II or Phase III''; and
(iii) by adding at the end the following:
``(11) the term `Phase I' means--
``(A) with respect to the SBIR program, the first
phase described in paragraph (4)(A); and
``(B) with respect to the STTR program, the first
phase described in paragraph (6)(A);
``(12) the term `Phase II' means--
``(A) with respect to the SBIR program, the second
phase described in paragraph (4)(B); and
``(B) with respect to the STTR program, the second
phase described in paragraph (6)(B); and
``(13) the term `Phase III' means--
``(A) with respect to the SBIR program, the third
phase described in paragraph (4)(C); and
``(B) with respect to the STTR program, the third
phase described in paragraph (6)(C).'';
(B) in subsection (j)--
(i) in paragraph (1)(B), by striking
``phase two'' and inserting ``Phase II'';
(ii) in paragraph (2)--
(I) in subparagraph (B)--
(aa) by striking ``the
third phase'' each place it
appears and inserting ``Phase
III''; and
(bb) by striking ``the
second phase'' and inserting
``Phase II'';
(II) in subparagraph (D)--
(aa) by striking ``the
first phase'' and inserting
``Phase I''; and
(bb) by striking ``the
second phase'' and inserting
``Phase II'';
(III) in subparagraph (F), by
striking ``the third phase'' and
inserting ``Phase III'';
(IV) in subparagraph (G)--
(aa) by striking ``the
first phase'' and inserting
``Phase I''; and
(bb) by striking ``the
second phase'' and inserting
``Phase II''; and
(V) in subparagraph (H)--
(aa) by striking ``the
first phase'' and inserting
``Phase I'';
(bb) by striking ``second
phase'' each place it appears
and inserting ``Phase II''; and
(cc) by striking ``third
phase'' and inserting ``Phase
III''; and
(iii) in paragraph (3)--
(I) in subparagraph (A)--
(aa) by striking ``the
first phase (as described in
subsection (e)(4)(A))'' and
inserting ``Phase I'';
(bb) by striking ``the
second phase (as described in
subsection (e)(4)(B))'' and
inserting ``Phase II''; and
(cc) by striking ``the
third phase (as described in
subsection (e)(4)(C))'' and
inserting ``Phase III''; and
(II) in subparagraph (B), by
striking ``second phase'' and inserting
``Phase II'';
(C) in subsection (k)--
(i) by striking ``first phase'' each place
it appears and inserting ``Phase I''; and
(ii) by striking ``second phase'' each
place it appears and inserting ``Phase II'';
(D) in subsection (l)(2)--
(i) by striking ``the first phase'' and
inserting ``Phase I''; and
(ii) by striking ``the second phase'' and
inserting ``Phase II'';
(E) in subsection (o)(13)--
(i) in subparagraph (B), by striking
``second phase'' and inserting ``Phase II'';
and
(ii) in subparagraph (C), by striking
``third phase'' and inserting ``Phase III'';
(F) in subsection (p)--
(i) in paragraph (2)(B)--
(I) in clause (vi)--
(aa) by striking ``the
second phase'' and inserting
``Phase II''; and
(bb) by striking ``the
third phase'' and inserting
``Phase III''; and
(II) in clause (ix)--
(aa) by striking ``the
first phase'' and inserting
``Phase I''; and
(bb) by striking ``the
second phase'' and inserting
``Phase II''; and
(ii) in paragraph (3)--
(I) by striking ``the first phase
(as described in subsection
(e)(6)(A))'' and inserting ``Phase I'';
(II) by striking ``the second phase
(as described in subsection
(e)(6)(B))'' and inserting ``Phase
II''; and
(III) by striking ``the third phase
(as described in subsection
(e)(6)(A))'' and inserting ``Phase
III'';
(G) in subsection (q)(3)--
(i) in subparagraph (A)--
(I) in the subparagraph heading, by
striking ``First phase'' and inserting
``Phase i''; and
(II) by striking ``first phase''
and inserting ``Phase I''; and
(ii) in subparagraph (B)--
(I) in the subparagraph heading, by
striking ``Second phase'' and inserting
``Phase ii''; and
(II) by striking ``second phase''
and inserting ``Phase II'';
(H) in subsection (r)--
(i) in the subsection heading, by striking
``Third Phase'' and inserting ``Phase III'';
(ii) in paragraph (1)--
(I) in the first sentence--
(aa) by striking ``for the
second phase'' and inserting
``for Phase II'';
(bb) by striking ``third
phase'' and inserting ``Phase
III''; and
(cc) by striking ``second
phase period'' and inserting
``Phase II period''; and
(II) in the second sentence--
(aa) by striking ``second
phase'' and inserting ``Phase
II''; and
(bb) by striking ``third
phase'' and inserting ``Phase
III''; and
(iii) in paragraph (2), by striking ``third
phase'' and inserting ``Phase III''; and
(I) in subsection (u)(2)(B), by striking ``the
first phase'' and inserting ``Phase I''; and
(2) in section 34(c)(2)(B)(vii) (15 U.S.C.
657e(c)(2)(B)(vii)), as redesignated by section 201 of this
Act, by striking ``third phase'' and inserting ``Phase III''.
SEC. <DELETED>209</DELETED>208. SHORTENED PERIOD FOR FINAL DECISIONS ON
PROPOSALS AND APPLICATIONS.
(a) In General.--Section 9 of the Small Business Act (15 U.S.C.
638) is amended--
(1) in subsection (g)(4)--
(A) by inserting ``(A)'' after ``(4)'';
(B) by adding ``and'' after the semicolon at the
end; and
(C) by adding at the end the following:
``(B) make a final decision on each proposal submitted
under the SBIR program--
``(i) not later than 90 days after the date on
which the solicitation closes; or
``(ii) if the Administrator authorizes an extension
for a solicitation, not later than 180 days after the
date on which the solicitation closes;''; and
(2) in subsection (o)(4)--
(A) by inserting ``(A)'' after ``(4)'';
(B) by adding ``and'' after the semicolon at the
end; and
(C) by adding at the end the following:
``(B) make a final decision on each proposal submitted
under the STTR program--
``(i) not later than 90 days after the date on
which the solicitation closes; or
``(ii) if the Administrator authorizes an extension
for a solicitation, not later than 180 days after the
date on which the solicitation closes;''.
(b) NIH Peer Review Process.--
(1) In general.--Section 9 of the Small Business Act (15
U.S.C. 638), as amended by this Act, is amended by adding at
the end the following:
``(hh) NIH Peer Review Process.--The Director of the National
Institutes of Health may make an award under the SBIR program or the
STTR program of the National Institutes of Health if the application
for the award has undergone technical and scientific peer review under
section 492 of the Public Health Service Act (42 U.S.C. 289a).''.
(2) Technical and conforming amendments.--Section 105 of
the National Institutes of Health Reform Act of 2006 (42 U.S.C.
284n) is amended--
(A) in subsection (a)(3)--
(i) by striking ``A grant'' and inserting
``Except as provided in section 9(hh) of the
Small Business Act (15 U.S.C. 638(hh)), a
grant''; and
(ii) by striking ``section 402(k)'' and all
that follows through ``Act)'' and inserting
``section 402(l) of such Act''; and
(B) in subsection (b)(5)--
(i) by striking ``A grant'' and inserting
``Except as provided in section 9(hh) of the
Small Business Act (15 U.S.C. 638(hh)), a
grant''; and
(ii) by striking ``section 402(k)'' and all
that follows through ``Act)'' and inserting
``section 402(l) of such Act''.
TITLE III--OVERSIGHT AND EVALUATION
SEC. 301. STREAMLINING ANNUAL EVALUATION REQUIREMENTS.
Section 9(b) of the Small Business Act (15 U.S.C. 638(b)), as
amended by section 102 of this Act, is amended--
(1) in paragraph (7)--
(A) by striking ``STTR programs, including the
data'' and inserting the following: ``STTR programs,
including--
``(A) the data'';
(B) by striking ``(g)(10), (o)(9), and (o)(15), the
number'' and all that follows through ``under each of
the SBIR and STTR programs, and a description'' and
inserting the following: ``(g)(8) and (o)(9); and
``(B) the number of proposals received from, and
the number and total amount of awards to, HUBZone small
business concerns and firms with venture capital
investment (including those majority-owned by multiple
venture capital operating companies) under each of the
SBIR and STTR programs;
``(C) a description of the extent to which each
Federal agency is increasing outreach and awards to
firms owned and controlled by women and social or
economically disadvantaged individuals under each of
the SBIR and STTR programs;
``(D) general information about the implementation
of, and compliance with the allocation of funds
required under, subsection (cc) for firms owned in
majority part by venture capital operating companies
and participating in the SBIR program;
``(E) a detailed description of appeals of Phase
III awards and notices of noncompliance with the SBIR
Policy Directive and the STTR Policy Directive filed by
the Administrator with Federal agencies; and
``(F) a description''; and
(2) by inserting after paragraph (7) the following:
``(8) to coordinate the implementation of electronic
databases at each of the Federal agencies participating in the
SBIR program or the STTR program, including the technical
ability of the participating agencies to electronically share
data;''.
SEC. 302. DATA COLLECTION FROM AGENCIES FOR SBIR.
Section 9(g) of the Small Business Act (15 U.S.C. 638(g)) is
amended--
(1) by striking paragraph (10);
(2) by redesignating paragraphs (8) and (9) as paragraphs
(9) and (10), respectively; and
(3) by inserting after paragraph (7) the following:
``(8) collect annually, and maintain in a common format in
accordance with the simplified reporting requirements under
subsection (v), such information from awardees as is necessary
to assess the SBIR program, including information necessary to
maintain the database described in subsection (k), including--
``(A) whether an awardee--
``(i) has venture capital or is majority-
owned by multiple venture capital operating
companies, and, if so--
``(I) the amount of venture capital
that the awardee has received as of the
date of the award; and
``(II) the amount of additional
capital that the awardee has invested
in the SBIR technology;
``(ii) has an investor that--
``(I) is an individual who is not a
citizen of the United States or a
lawful permanent resident of the United
States, and if so, the name of any such
individual; or
``(II) is a person that is not an
individual and is not organized under
the laws of a State or the United
States, and if so the name of any such
person;
``(iii) is owned by a woman or has a woman
as a principal investigator;
``(iv) is owned by a socially or
economically disadvantaged individual or has a
socially or economically disadvantaged
individual as a principal investigator;
``(v) received assistance under the FAST
program under section 34, as in effect on the
day before the date of enactment of the SBIR/
STTR Reauthorization Act of 2011, or the
outreach program under subsection (s);
``(vi) is a faculty member or a student of
an institution of higher education, as that
term is defined in section 101 of the Higher
Education Act of 1965 (20 U.S.C. 1001); or
``(vii) is located in a State described in
subsection (u)(3); and
``(B) a justification statement from the agency, if
an awardee receives an award in an amount that is more
than the award guidelines under this section;''.
SEC. 303. DATA COLLECTION FROM AGENCIES FOR STTR.
Section 9(o) of the Small Business Act (15 U.S.C. 638(o)) is
amended by striking paragraph (9) and inserting the following:
``(9) collect annually, and maintain in a common format in
accordance with the simplified reporting requirements under
subsection (v), such information from applicants and awardees
as is necessary to assess the STTR program outputs and
outcomes, including information necessary to maintain the
database described in subsection (k), including--
``(A) whether an applicant or awardee--
``(i) has venture capital or is majority-
owned by multiple venture capital operating
companies, and, if so--
``(I) the amount of venture capital
that the applicant or awardee has
received as of the date of the
application or award, as applicable;
and
``(II) the amount of additional
capital that the applicant or awardee
has invested in the SBIR technology;
``(ii) has an investor that--
``(I) is an individual who is not a
citizen of the United States or a
lawful permanent resident of the United
States, and if so, the name of any such
individual; or
``(II) is a person that is not an
individual and is not organized under
the laws of a State or the United
States, and if so the name of any such
person;
``(iii) is owned by a woman or has a woman
as a principal investigator;
``(iv) is owned by a socially or
economically disadvantaged individual or has a
socially or economically disadvantaged
individual as a principal investigator;
``(v) received assistance under the FAST
program under section 34 or the outreach
program under subsection (s);
``(vi) is a faculty member or a student of
an institution of higher education, as that
term is defined in section 101 of the Higher
Education Act of 1965 (20 U.S.C. 1001); or
``(vii) is located in a State in which the
total value of contracts awarded to small
business concerns under all STTR programs is
less than the total value of contracts awarded
to small business concerns in a majority of
other States, as determined by the
Administrator in biennial fiscal years,
beginning with fiscal year 2008, based on the
most recent statistics compiled by the
Administrator; and
``(B) if an awardee receives an award in an amount
that is more than the award guidelines under this
section, a statement from the agency that justifies the
award amount;''.
SEC. 304. PUBLIC DATABASE.
Section 9(k)(1) of the Small Business Act (15 U.S.C. 638(k)(1)) is
amended--
(1) in subparagraph (D), by striking ``and'' at the end;
(2) in subparagraph (E), by striking the period at the end
and inserting ``; and''; and
(3) by adding at the end the following:
``(F) for each small business concern that has
received a Phase I or Phase II SBIR or STTR award from
a Federal agency, whether the small business concern--
``(i) has venture capital and, if so,
whether the small business concern is
registered as majority-owned by multiple
venture capital operating companies as required
under subsection (cc)(4);
``(ii) is owned by a woman or has a woman
as a principal investigator;
``(iii) is owned by a socially or
economically disadvantaged individual or has a
socially or economically disadvantaged
individual as a principal investigator;
``(iv) received assistance under the FAST
program under section 34, as in effect on the
day before the date of enactment of the SBIR/
STTR Reauthorization Act of 2011, or the
outreach program under subsection (s); or
``(v) is owned by a faculty member or a
student of an institution of higher education,
as that term is defined in section 101 of the
Higher Education Act of 1965 (20 U.S.C.
1001).''.
SEC. 305. GOVERNMENT DATABASE.
Section 9(k) of the Small Business Act (15 U.S.C. 638(k)) is
amended--
(1) in paragraph (2)--
(A) in the matter preceding subparagraph (A), by
striking ``Not later'' and all that follows through
``Act of 2000'' and inserting ``Not later than 90 days
after the date of enactment of the SBIR/STTR
Reauthorization Act of 2011'';
(B) by striking subparagraph (C);
(C) by redesignating subparagraphs (A) and (B) as
subparagraphs (B) and (C), respectively;
(D) by inserting before subparagraph (B), as so
redesignated, the following:
``(A) contains, for each small business concern
that applies for, submits a proposal for, or receives
an award under Phase I or Phase II of the SBIR program
or the STTR program--
``(i) the name, size, and location, and an
identifying number assigned by the
Administration of the small business concern;
``(ii) an abstract of the project;
``(iii) the specific aims of the project;
``(iv) the number of employees of the small
business concern;
``(v) the names of key individuals that
will carry out the project;
``(vi) the percentage of effort each
individual described in clause (iv) will
contribute to the project;
``(vii) whether the small business concern
is majority-owned by multiple venture capital
operating companies; and
``(viii) the Federal agency to which the
application is made, and contact information
for the person or office within the Federal
agency that is responsible for reviewing
applications and making awards under the SBIR
program or the STTR program;'';
(E) by redesignating subparagraphs (D), and (E) as
subparagraphs (E) and (F), respectively;
(F) by inserting after subparagraph (C), as so
redesignated, the following:
``(D) includes, for each awardee--
``(i) the name, size, location, and any
identifying number assigned to the awardee by
the Administrator;
``(ii) whether the awardee has venture
capital, and, if so--
``(I) the amount of venture capital
as of the date of the award;
``(II) the percentage of ownership
of the awardee held by a venture
capital operating company, including
whether the awardee is majority-owned
by multiple venture capital operating
companies; and
``(III) the amount of additional
capital that the awardee has invested
in the SBIR technology, which
information shall be collected on an
annual basis;
``(iii) the names and locations of any
affiliates of the awardee;
``(iv) the number of employees of the
awardee;
``(v) the number of employees of the
affiliates of the awardee; and
``(vi) the names of, and the percentage of
ownership of the awardee held by--
``(I) any individual who is not a
citizen of the United States or a
lawful permanent resident of the United
States; or
``(II) any person that is not an
individual and is not organized under
the laws of a State or the United
States;'';
(G) in subparagraph (E), as so redesignated, by
striking ``and'' at the end;
(H) in subparagraph (F), as so redesignated, by
striking the period at the end and inserting ``; and'';
and
(I) by adding at the end the following:
``(G) includes a timely and accurate list of any
individual or small business concern that has
participated in the SBIR program or STTR program that
has committed fraud, waste, or abuse relating to the
SBIR program or STTR program.''; and
(2) in paragraph (3), by adding at the end the following:
``(C) Government database.--Not later than 60 days
after the date established by a Federal agency for
submitting applications or proposals for a Phase I or
Phase II award under the SBIR program or STTR program,
the head of the Federal agency shall submit to the
Administrator the data required under paragraph (2)
with respect to each small business concern that
applies or submits a proposal for the Phase I or Phase
II award.''.
SEC. 306. ACCURACY IN FUNDING BASE CALCULATIONS.
(a) In General.--Not later than 1 year after the date of enactment
of this Act, and every year thereafter until the date that is 5 years
after the date of enactment of this Act, the Comptroller General of the
United States shall--
(1) conduct a fiscal and management audit of the SBIR
program and the STTR program for the applicable period to--
(A) determine whether Federal agencies comply with
the expenditure amount requirements under subsections
(f)(1) and (n)(1) of section 9 of the Small Business
Act (15 U.S.C. 638), as amended by this Act;
(B) assess the extent of compliance with the
requirements of section 9(i)(2) of the Small Business
Act (15 U.S.C. 638(i)(2)) by Federal agencies
participating in the SBIR program or the STTR program
and the Administration;
(C) assess whether it would be more consistent and
effective to base the amount of the allocations under
the SBIR program and the STTR program on a percentage
of the research and development budget of a Federal
agency, rather than the extramural budget of the
Federal agency; and
(D) determine the portion of the extramural
research or research and development budget of a
Federal agency that each Federal agency spends for
administrative purposes relating to the SBIR program or
STTR program, and for what specific purposes, including
the portion, if any, of such budget the Federal agency
spends for salaries and expenses, travel to visit
applicants, outreach events, marketing, and technical
assistance; and
(2) submit a report to the Committee on Small Business and
Entrepreneurship of the Senate and the Committee on Small
Business of the House of Representatives regarding the audit
conducted under paragraph (1), including the assessments
required under subparagraphs (B) and (C), and the determination
made under subparagraph (D) of paragraph (1).
(b) Definition of Applicable Period.--In this section, the term
``applicable period'' means--
(1) for the first report submitted under this section, the
period beginning on October 1, 2005, and ending on September 30
of the last full fiscal year before the date of enactment of
this Act for which information is available; and
(2) for the second and each subsequent report submitted
under this section, the period--
(A) beginning on October 1 of the first fiscal year
after the end of the most recent full fiscal year
relating to which a report under this section was
submitted; and
(B) ending on September 30 of the last full fiscal
year before the date of the report.
SEC. 307. CONTINUED EVALUATION BY THE NATIONAL ACADEMY OF SCIENCES.
Section 108 of the Small Business Reauthorization Act of 2000 (15
U.S.C. 638 note) is amended by adding at the end the following:
``(e) Extensions and Enhancements of Authority.--
``(1) In general.--Not later than 6 months after the date
of enactment of the SBIR/STTR Reauthorization Act of 2011, the
head of each agency described in subsection (a), in
consultation with the Small Business Administration, shall
cooperatively enter into an agreement with the National Academy
of Sciences for the National Research Council to, not later
than 4 years after the date of enactment of the SBIR/STTR
Reauthorization Act of 2011, and every 4 years thereafter--
``(A) continue the most recent study under this
section relating to--
``(i) the issues described in subparagraphs
(A), (B), (C), and (E) of subsection (a)(1);
and
``(ii) the effectiveness of the government
and public databases described in section 9(k)
of the Small Business Act (15 U.S.C. 638(k)) in
reducing vulnerabilities of the SBIR program
and the STTR program to fraud, waste, and
abuse, particularly with respect to Federal
agencies funding duplicative proposals and
business concerns falsifying information in
proposals;
``(B) make recommendations with respect to the
issues described in subparagraph (A)(ii) and
subparagraphs (A), (D), and (E) of subsection
(a)(2)<DELETED>.</DELETED>; and
``(C) estimate, to the extent practicable, the
number of jobs created by the SBIR program or STTR
program of the agency.
``(2) Consultation.--An agreement under paragraph (1) shall
require the National Research Council to ensure there is
participation by and consultation with the small business
community, the Administration, and other interested parties as
described in subsection (b).
``(3) Reporting.--An agreement under paragraph (1) shall
require that not later than 4 years after the date of enactment
of the SBIR/STTR Reauthorization Act of 2011, and every 4 years
thereafter, the National Research Council shall submit to the
head of the agency entering into the agreement, the Committee
on Small Business and Entrepreneurship of the Senate, and the
Committee on Small Business of the House of Representatives a
report regarding the study conducted under paragraph (1) and
containing the recommendations described in paragraph (1).''.
SEC. 308. TECHNOLOGY INSERTION REPORTING REQUIREMENTS.
Section 9 of the Small Business Act (15 U.S.C. 638), as amended by
this Act, is amended by adding at the end the following:
``(ii) Phase III Reporting.--The annual SBIR or STTR report to
Congress by the Administration under subsection (b)(7) shall include,
for each Phase III award made by the Federal agency--
``(1) the name of the agency or component of the agency or
the non-Federal source of capital making the Phase III award;
``(2) the name of the small business concern or individual
receiving the Phase III award; and
``(3) the dollar amount of the Phase III award.''.
SEC. 309. INTELLECTUAL PROPERTY PROTECTIONS.
(a) In General.--The Comptroller General of the United States shall
conduct a study of the SBIR program to assess whether--
(1) Federal agencies comply with the data rights
protections for SBIR awardees and the technologies of SBIR
awardees under section 9 of the Small Business Act (15 U.S.C.
638);
(2) the laws and policy directives intended to clarify the
scope of data rights, including in prototypes and mentor-
protege relationships and agreements with Federal laboratories,
are sufficient to protect SBIR awardees; and
(3) there is an effective grievance tracking process for
SBIR awardees who have grievances against a Federal agency
regarding data rights and a process for resolving those
grievances.
(b) Report.--Not later than 18 months after the date of enactment
of this Act, the Comptroller General shall submit to the Committee on
Small Business and Entrepreneurship of the Senate and the Committee on
Small Business of the House of Representatives a report regarding the
study conducted under subsection (a).
SEC. 310. OBTAINING CONSENT FROM SBIR AND STTR APPLICANTS TO RELEASE
CONTACT INFORMATION TO ECONOMIC DEVELOPMENT
ORGANIZATIONS.
Section 9 of the Small Business Act (15 U.S.C. 638), as amended by
this Act, is amended by adding at the end the following:
``(jj) Consent To Release Contact Information to Organizations.--
``(1) Enabling concern to give consent.--Each Federal
agency required by this section to conduct an SBIR program or
an STTR program shall enable a small business concern that is
an SBIR applicant or an STTR applicant to indicate to the
Federal agency whether the Federal agency has the consent of
the concern to--
``(A) identify the concern to appropriate local and
State-level economic development organizations as an
SBIR applicant or an STTR applicant; and
``(B) release the contact information of the
concern to such organizations.
``(2) Rules.--The Administrator shall establish rules to
implement this subsection. The rules shall include a
requirement that a Federal agency include in the SBIR and STTR
application a provision through which the applicant can
indicate consent for purposes of paragraph (1).''.
SEC. 311. PILOT TO ALLOW FUNDING FOR ADMINISTRATIVE, OVERSIGHT, AND
CONTRACT PROCESSING COSTS.
(a) In General.--Section 9 of the Small Business Act (15 U.S.C.
638), as amended by this Act, is amended by adding at the end the
following:
``(kk) Assistance for Administrative, Oversight, and Contract
Processing Costs.--
``(1) In general.--Subject to paragraph (2), for the 3 full
fiscal years beginning after the date of enactment of this
subsection, the Administrator shall allow each Federal agency
required to conduct an SBIR program to use not more than 3
percent of the funds allocated to the SBIR program of the
Federal agency for--
``(A) the administration of the SBIR program or the
STTR program of the Federal agency;
``(B) the provision of outreach and technical
assistance relating to the SBIR program or STTR program
of the Federal agency, including technical assistance
site visits and personnel interviews;
``(C) the implementation of commercialization and
outreach initiatives that were not in effect on the
date of enactment of this subsection;
``(D) carrying out the program under subsection
(y);
``(E) activities relating to oversight and
congressional reporting, including the waste, fraud,
and abuse prevention activities described in section
313(a)(1)(B)(ii) of the SBIR/STTR Reauthorization Act
of 2011;
``(F) targeted reviews of recipients of awards
under the SBIR program or STTR program of the Federal
agency that the head of the Federal agency determines
are at high risk for fraud, waste, or abuse, to ensure
compliance with requirements of the SBIR program or
STTR program, respectively;
``(G) the implementation of oversight and quality
control measures, including verification of reports and
invoices and cost reviews;
``(H) carrying out subsection (cc);
``(I) carrying out subsection (ff);
``(J) contract processing costs relating to the
SBIR program or STTR program of the Federal agency; and
``(K) funding for additional personnel and
assistance with application reviews.
``(2) Performance criteria.--A Federal agency may not use
funds as authorized under paragraph (1) until after the
effective date of performance criteria, which the Administrator
shall establish, to measure any benefits of using funds as
authorized under paragraph (1) and to assess continuation of
the authority under paragraph (1).
``(3) Rules.--Not later than 180 days after the date of
enactment of this subsection, the Administrator shall issue
rules to carry out this subsection.''.
(b) Technical and Conforming Amendments.--
(1) In general.--Section 9 of the Small Business Act (15
U.S.C. 638) is amended--
(A) in subsection (f)(2)(A), as so designated by
section 103(2) of this Act, by striking ``shall not''
and all that follows through ``make available for the
purpose'' and inserting ``shall not make available for
the purpose''; and
(B) in subsection (y), as amended by section
<DELETED>204</DELETED> 203--
(i) by striking paragraph (4);
(ii) by redesignating paragraphs (5) and
(6) as paragraphs (4) and (5), respectively.
(2) Transitional rule.--Notwithstanding the amendments made
by paragraph (1), subsection (f)(2)(A) and (y)(4) of section 9
of the Small Business Act (15 U.S.C. 638), as in effect on the
day before the date of enactment of this Act, shall continue to
apply to each Federal agency until the effective date of the
performance criteria established by the Administrator under
subsection (kk)(2) of section 9 of the Small Business Act, as
added by subsection (a).
(3) Prospective repeal.--Effective on the first day of the
fourth full fiscal year following the date of enactment of this
Act, section 9 of the Small Business Act (15 U.S.C. 638), as
amended by paragraph (1) of this section, is amended--
(A) in subsection (f)(2)(A), by striking ``shall
not make available for the purpose'' and inserting the
following: ``shall not--
``(i) use any of its SBIR budget
established pursuant to paragraph (1) for the
purpose of funding administrative costs of the
program, including costs associated with
salaries and expenses; or
``(ii) make available for the purpose'';
and
(B) in subsection (y)--
(i) by redesignating paragraphs (4) and (5)
as paragraphs (5) and (6), respectively; and
(ii) by inserting after paragraph (3) the
following:
``(4) Funding.--
``(A) In general.--The Secretary of Defense and
each Secretary of a military department may use not
more than an amount equal to 1 percent of the funds
available to the Department of Defense or the military
department pursuant to the Small Business Innovation
Research Program for payment of expenses incurred to
administer the Commercialization Pilot Program under
this subsection.
``(B) Limitations.--The funds described in
subparagraph (A)--
``(i) shall not be subject to the
limitations on the use of funds in subsection
(f)(2); and
``(ii) shall not be used to make Phase III
awards.''.
SEC. 312. GAO STUDY WITH RESPECT TO VENTURE CAPITAL OPERATING COMPANY
INVOLVEMENT.
Not later than 3 years after the date of enactment of this Act, and
every 3 years thereafter, the Comptroller General of the United States
shall--
(1) conduct a study of the impact of requirements relating
to venture capital operating company involvement under section
9(cc) of the Small Business Act, as added by section 108 of
this Act; and
(2) submit to Congress a report regarding the study
conducted under paragraph (1).
SEC. 313. REDUCING VULNERABILITY OF SBIR AND STTR PROGRAMS TO FRAUD,
WASTE, AND ABUSE.
(a) Fraud, Waste, and Abuse Prevention.--
(1) Guidelines for fraud, waste, and abuse prevention.--
(A) Amendments required.--Not later than 90 days
after the date of enactment of this Act, the
Administrator shall amend the SBIR Policy Directive and
the STTR Policy Directive to include measures to
prevent fraud, waste, and abuse in the SBIR program and
the STTR program.
(B) Content of amendments.--The amendments required
under subparagraph (A) shall include--
(i) definitions or descriptions of fraud,
waste, and abuse;
(ii) a requirement that the Inspectors
General of each Federal agency that
participates in the SBIR program or the STTR
program cooperate to--
(I) establish fraud detection
indicators;
(II) review regulations and
operating procedures of the Federal
agencies;
(III) coordinate information
sharing between the Federal agencies;
and
(IV) improve the education and
training of, and outreach to--
(aa) administrators of the
SBIR program and the STTR
program of each Federal agency;
(bb) applicants to the SBIR
program or the STTR program;
and
(cc) recipients of awards
under the SBIR program or the
STTR program;
(iii) guidelines for the monitoring and
oversight of applicants to and recipients of
awards under the SBIR program or the STTR
program; and
(iv) a requirement that each Federal agency
that participates in the SBIR program or STTR
program include the telephone number of the
hotline established under paragraph (2)--
(I) on the Web site of the Federal
agency; and
(II) in any solicitation or notice
of funding opportunity issued by the
Federal agency for the SBIR program or
the STTR program.
(2) Fraud, waste, and abuse prevention hotline.--
(A) Hotline established.--The Administrator shall
establish a telephone hotline that allows individuals
to report fraud, waste, and abuse in the SBIR program
or STTR program.
(B) Publication.--The Administrator shall include
the telephone number for the hotline established under
subparagraph (A) on the Web site of the Administration.
(b) Study and Report.--
(1) Study.--Not later than 1 year after the date of
enactment of this Act, and every 3 years thereafter, the
Comptroller General of the United States shall--
(A) conduct a study that evaluates--
(i) the implementation by each Federal
agency that participates in the SBIR program or
the STTR program of the amendments to the SBIR
Policy Directive and the STTR Policy Directive
made pursuant to subsection (a);
(ii) the effectiveness of the management
information system of each Federal agency that
participates in the SBIR program or STTR
program in identifying duplicative SBIR and
STTR projects;
(iii) the effectiveness of the risk
management strategies of each Federal agency
that participates in the SBIR program or STTR
program in identifying areas of the SBIR
program or the STTR program that are at high
risk for fraud;
(iv) technological tools that may be used
to detect patterns of behavior that may
indicate fraud by applicants to the SBIR
program or the STTR program;
(v) the success of each Federal agency that
participates in the SBIR program or STTR
program in reducing fraud, waste, and abuse in
the SBIR program or the STTR program of the
Federal agency; and
(vi) the extent to which the Inspector
General of each Federal agency that
participates in the SBIR program or STTR
program effectively conducts investigations of
individuals alleged to have submitted false
claims or violated Federal law relating to
fraud, conflicts of interest, bribery,
gratuity, or other misconduct; and
(B) submit to the Committee on Small Business and
Entrepreneurship of the Senate, the Committee on Small
Business of the House of Representatives, and the head
of each Federal agency that participates in the SBIR
program or STTR program a report on the results of the
study conducted under subparagraph (A).
SEC. 314. INTERAGENCY POLICY COMMITTEE.
(a) Establishment.--The Director of the Office of Science and
Technology Policy (in this section referred to as the ``Director''), in
conjunction with the Administrator, shall establish an Interagency
SBIR/STTR Policy Committee (in this section referred to as the
``Committee'') comprised of 1 representative from each Federal agency
with an SBIR program or an STTR program and 1 representative of the
Office of Management and Budget.
(b) Cochairpersons.--The Director and the Administrator shall serve
as cochairpersons of the Committee.
(c) Duties.--The Committee shall review, and make policy
recommendations on ways to improve the effectiveness and efficiency of,
the SBIR program and the STTR program, including--
(1) reviewing the effectiveness of the public and
government databases described in section 9(k) of the Small
Business Act (15 U.S.C. 638(k));
(2) identifying--
(A) best practices for commercialization assistance
by Federal agencies that have significant potential to
be employed by other Federal agencies; and
(B) proposals by Federal agencies for initiatives
to address challenges for small business concerns in
obtaining funding after a Phase II award ends and
before commercialization; and
(3) developing and incorporating a standard evaluation
framework to enable systematic assessment of the SBIR program
and STTR program, including through improved tracking of awards
and outcomes and development of performance measures for the
SBIR program and STTR program of each Federal agency.
(d) Reports.--The Committee shall submit to the Committee on Small
Business and Entrepreneurship of the Senate and the Committee on
Science and Technology and the Committee on Small Business of the House
of Representatives--
(1) a report on the review by and recommendations of the
Committee under subsection (c)(1) not later than 1 year after
the date of enactment of this Act;
(2) a report on the review by and recommendations of the
Committee under subsection (c)(2) not later than 18 months
after the date of enactment of this Act; and
(3) a report on the review by and recommendations of the
Committee under subsection (c)(3) not later than 2 years after
the date of enactment of this Act.
SEC. 315. SIMPLIFIED PAPERWORK REQUIREMENTS.
Section 9(v) of the Small Business Act (15 U.S.C. 638(v)) is
amended--
(1) in the subsection heading, by striking ``Simplified
Reporting Requirements'' and inserting ``Reducing Paperwork and
Compliance Burden'';
(2) by striking ``The Administrator'' and inserting the
following:
``(1) Standardization of reporting requirements.--The
Administrator''; and
(3) by adding at the end the following:
``(2) Simplification of application and award process.--Not
later than one year after the date of enactment of this
paragraph, and after a period of public comment, the
Administrator shall issue regulations or guidelines, taking
into consideration the unique needs of each Federal agency, to
ensure that each Federal agency required to carry out an SBIR
program or STTR program simplifies and standardizes the program
proposal, selection, contracting, compliance, and audit
procedures for the SBIR program or STTR program of the Federal
agency (including procedures relating to overhead rates for
applicants and documentation requirements) to reduce the
paperwork and regulatory compliance burden on small business
concerns applying to and participating in the SBIR program or
STTR program.''.
TITLE IV--POLICY DIRECTIVES
SEC. 401. CONFORMING AMENDMENTS TO THE SBIR AND THE STTR POLICY
DIRECTIVES.
(a) In General.--Not later than 180 days after the date of
enactment of this Act, the Administrator shall promulgate amendments to
the SBIR Policy Directive and the STTR Policy Directive to conform such
directives to this Act and the amendments made by this Act.
(b) Publishing SBIR Policy Directive and the STTR Policy Directive
in the Federal Register.--Not later than 180 days after the date of
enactment of this Act, the Administrator shall publish the amended SBIR
Policy Directive and the amended STTR Policy Directive in the Federal
Register.
TITLE V--OTHER PROVISIONS
SEC. 501. RESEARCH TOPICS AND PROGRAM DIVERSIFICATION.
(a) SBIR Program.--Section 9(g) of the Small Business Act (15
U.S.C. 638(g)) is amended--
(1) in paragraph (3)--
(A) in the matter preceding subparagraph (A), by
striking ``broad research topics and to topics that
further 1 or more critical technologies'' and inserting
``applications to the Federal agency for support of
projects relating to nanotechnology, rare diseases,
security, energy, transportation, or improving the
security and quality of the water supply of the United
States, and the efficiency of water delivery systems
and usage patterns in the United States (including the
territories of the United States) through the use of
technology (to the extent that the projects relate to
the mission of the Federal agency), broad research
topics, and topics that further 1 or more critical
technologies or research priorities'';
(B) in subparagraph (A), by striking ``or'' at the
end; and
(C) by adding at the end the following:
``(C) the National Academy of Sciences, in the
final report issued by the `America's Energy Future:
Technology Opportunities, Risks, and Tradeoffs'
project, and in any subsequent report by the National
Academy of Sciences on sustainability, energy, or
alternative fuels;
``(D) the National Institutes of Health, in the
annual report on the rare diseases research activities
of the National Institutes of Health for fiscal year
2005, and in any subsequent report by the National
Institutes of Health on rare diseases research
activities;
``(E) the National Academy of Sciences, in the
final report issued by the `Transit Research and
Development: Federal Role in the National Program'
project and the report entitled `Transportation
Research, Development and Technology Strategic Plan
(2006-2010)' issued by the Research and Innovative
Technology Administration of the Department of
Transportation, and in any subsequent report issued by
the National Academy of Sciences or the Department of
Transportation on transportation and infrastructure; or
``(F) the national nanotechnology strategic plan
required under section 2(c)(4) of the 21st Century
Nanotechnology Research and Development Act (15 U.S.C.
7501(c)(4)) and in any report issued by the National
Science and Technology Council Committee on Technology
that focuses on areas of nanotechnology identified in
such plan;''; and
(2) by adding after paragraph (12), as added by section
111(a) of this Act, the following:
``(13) encourage applications under the SBIR program (to
the extent that the projects relate to the mission of the
Federal agency)--
``(A) from small business concerns in geographic
areas underrepresented in the SBIR program or located
in rural areas (as defined in section 1393(a)(2) of the
Internal Revenue Code of 1986);
``(B) small business concerns owned and controlled
by women;
``(C) small business concerns owned and controlled
by veterans;
``(D) small business concerns owned and controlled
by Native Americans; and
``(E) small business concerns located in a
geographic area with an unemployment rates that exceed
the national unemployment rate, based on the most
recently available monthly publications of the Bureau
of Labor Statistics of the Department of Labor.''.
(b) STTR Program.--Section 9(o) of the Small Business Act (15
U.S.C. 638(o)), as amended by section 111(b) of this Act, is amended--
(1) in paragraph (3)--
(A) in the matter preceding subparagraph (A), by
striking ``broad research topics and to topics that
further 1 or more critical technologies'' and inserting
``applications to the Federal agency for support of
projects relating to nanotechnology, security, energy,
rare diseases, transportation, or improving the
security and quality of the water supply of the United
States (to the extent that the projects relate to the
mission of the Federal agency), broad research topics,
and topics that further 1 or more critical technologies
or research priorities'';
(B) in subparagraph (A), by striking ``or'' at the
end; and
(C) by adding at the end the following:
``(C) the National Academy of Sciences, in the
final report issued by the `America's Energy Future:
Technology Opportunities, Risks, and Tradeoffs'
project, and in any subsequent report by the National
Academy of Sciences on sustainability, energy, or
alternative fuels;
``(D) the National Institutes of Health, in the
annual report on the rare diseases research activities
of the National Institutes of Health for fiscal year
2005, and in any subsequent report by the National
Institutes of Health on rare diseases research
activities;
``(E) the National Academy of Sciences, in the
final report issued by the `Transit Research and
Development: Federal Role in the National Program'
project and the report entitled `Transportation
Research, Development and Technology Strategic Plan
(2006-2010)' issued by the Research and Innovative
Technology Administration of the Department of
Transportation, and in any subsequent report issued by
the National Academy of Sciences or the Department of
Transportation on transportation and infrastructure; or
``(F) the national nanotechnology strategic plan
required under section 2(c)(4) of the 21st Century
Nanotechnology Research and Development Act (15 U.S.C.
7501(c)(4)) and in any report issued by the National
Science and Technology Council Committee on Technology
that focuses on areas of nanotechnology identified in
such plan;'';
(2) in paragraph (15), by striking ``and'' at the end;
(3) in paragraph (16), by striking the period at the end
and inserting ``; and''; and
(4) by adding at the end the following:
``(17) encourage applications under the STTR program (to
the extent that the projects relate to the mission of the
Federal agency)--
``(A) from small business concerns in geographic
areas underrepresented in the STTR program or located
in rural areas (as defined in section 1393(a)(2) of the
Internal Revenue Code of 1986);
``(B) small business concerns owned and controlled
by women;
``(C) small business concerns owned and controlled
by veterans;
``(D) small business concerns owned and controlled
by Native Americans; and
``(E) small business concerns located in a
geographic area with an unemployment rates that exceed
the national unemployment rate, based on the most
recently available monthly publications of the Bureau
of Labor Statistics of the Department of Labor.''.
(c) Research and Development Focus.--Section 9(x) of the Small
Business Act (15 U.S.C. 638(x)) is amended--
(1) by striking paragraph (2); and
(2) by redesignating paragraph (3) as paragraph (2).
SEC. 502. REPORT ON SBIR AND STTR PROGRAM GOALS.
Section 9 of the Small Business Act (15 U.S.C. 638), as amended by
this Act, is amended by adding at the end the following:
``(ll) Annual Report on SBIR and STTR Program Goals.--
``(1) Development of metrics.--The head of each Federal
agency required to participate in the SBIR program or the STTR
program shall develop metrics to evaluate the effectiveness,
and the benefit to the people of the United States, of the SBIR
program and the STTR program of the Federal agency that--
``(A) are science-based and statistically driven;
``(B) reflect the mission of the Federal agency;
and
``(C) include factors relating to the economic
impact of the programs.
``(2) Evaluation.--The head of each Federal agency
described in paragraph (1) shall conduct an annual evaluation
using the metrics developed under paragraph (1) of--
``(A) the SBIR program and the STTR program of the
Federal agency; and
``(B) the benefits to the people of the United
States of the SBIR program and the STTR program of the
Federal agency.
``(3) Report.--
``(A) In general.--The head of each Federal agency
described in paragraph (1) shall submit to the
appropriate committees of Congress and the
Administrator an annual report describing in detail the
results of an evaluation conducted under paragraph (2).
``(B) Public availability of report.--The head of
each Federal agency described in paragraph (1) shall
make each report submitted under subparagraph (A)
available to the public online.
``(C) Definition.--In this paragraph, the term
`appropriate committees of Congress' means--
``(i) the Committee on Small Business and
Entrepreneurship of the Senate; and
``(ii) the Committee on Small Business and
the Committee on Science and Technology of the
House of Representatives.''.
SEC. 503. COMPETITIVE SELECTION PROCEDURES FOR SBIR AND STTR PROGRAMS.
Section 9 of the Small Business Act (15 U.S.C. 638), as amended by
this Act, is amended by adding at the end the following:
``(mm) Competitive Selection Procedures for SBIR and STTR
Programs.--All funds awarded, appropriated, or otherwise made available
in accordance with subsection (f) or (n) must be awarded pursuant to
competitive and merit-based selection procedures.''.
Calendar No. 17
112th CONGRESS
1st Session
S. 493
_______________________________________________________________________
A BILL
To reauthorize and improve the SBIR and STTR programs, and for other
purposes.
_______________________________________________________________________
March, 9, 2011
Reported with amendments