Encouraging Small Business Innovators

Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 6368) to encourage R&D small business set-asides, to encourage SBIR and STTR participants to serve as mentors under the Small Business Administration's mentor-protege program, to promote the use of interagency contracts, and for other purposes, as amended.

Mr. Speaker, I ask unanimous consent that all Members have 5 legislative days to revise and extend their remarks and include extraneous materials on the bill under consideration.

Mr. Speaker, I yield myself such time as I may consume.

Mr. Speaker, this bipartisan legislation was introduced by the gentleman from New York (Mr. Espaillat) and cosponsored by the gentleman from South Carolina (Mr. Norman), so it is bipartisan. I thank the gentlemen, both of them, for their leadership on this important issue.

This legislation would make small but important changes to the Small Business Innovation Research, or SBIR, and the Small Business Technology Transfer, or STTR, programs.

A healthy and vibrant Federal marketplace is important to our Nation. Competition breeds innovation, which is critical in our national defense to save lives on the battlefield or healthcare advancements to improve and prolong lives.

The SBIR and STTR programs are often one of the first places small innovators and manufacturers venture into the Federal contracting arena. The process can be daunting for small firms completely new to contracting with the Federal Government.

H.R. 6368 provides an avenue for more experienced SBIR and STTR companies to mentor newer companies to help them adjust to how the Federal Government does business. By doing so, it aims to strengthen the industrial base by bringing new firms into the contracting process.

The bill also rewards mentors with a past-performance rating boost so they can be more advantaged when applying for a full research and development set-aside or sole-source contracts going forward outside of the program.

Additionally, this legislation provides clarity in the use of government-side interagency acquisitions permitted through the fiscal year 2009 National Defense Authorization Act, or NDAA, by updating and harmonizing the terminology used in acquisitions.

Finally, the bill expressly allows the GSA, General Services Administration, to assist agencies with contract awards and vehicle creation for small businesses receiving sole-source or set-aside contracts in the SBIR and STTR programs.

Historically, there have been lengthy delays in the programs at various stages, including award notification, payment, and advancement. The bill aims to reduce these delays by allowing the GSA to assist participating agencies in the SBIR and STTR contract creation and management.

I urge my colleagues to support this bipartisan legislation, and I reserve the balance of my time.

House of Representatives, Committee on Oversight and

Government Reform,

Washington, DC, September 18, 2018.

Hon. Steve Chabot,

Chairman, Committee on Small Business,

House of Representatives, Washington, DC.

Dear Mr. Chairman: I write concerning H.R. 6368, the

Encouraging Small Business Innovators Act of 2018. This bill

contains provisions within the jurisdiction of the Committee

on Oversight and Government Reform. As a result of your

having consulted with me concerning the provisions of the

bill that fall within our Rule X jurisdiction, I agree to

forgo consideration of the bill, so the bill may proceed

expeditiously to the House floor.

The Committee takes this action with our mutual

understanding that by foregoing consideration of H.R. 6368,

we do not waive any jurisdiction over the subject matter

contained in this or similar legislation, and we will be

appropriately consulted and involved as the bill or similar

legislation moves forward so we may address any remaining

issues within our Rule X jurisdiction. Further, I request

your support for the appointment of conferees from the

Committee on Oversight and Government Reform during any

House-Senate conference on this or related legislation.

Finally, I would appreciate a response confirming this

understanding and ask that a copy of our exchange of letters

on this matter be included in the bill report filed by the

Committee on Small Business, as well as in the Congressional

Record during floor consideration thereof.

Sincerely,

Trey Gowdy.

Mr. Speaker, I reserve the balance of time.

Mr. Speaker, I continue to reserve the balance of my time.

Mr. Speaker, I yield myself such time as I may consume to close.

Mr. Speaker, I, first of all, thank the gentlewoman, the ranking member, for her leadership on this, and Mr. Espaillat, as well, and Mr. Norman for working together in a bipartisan manner.

Mr. Speaker, the SBIR and STTR play pivotal roles in the development of new technologies while giving Federal agencies innovative and cost- effective ways to solve operational problems. They are highly popular and have helped thousands of small businesses create new technologies, commercialize their ideas, and generate new jobs.

The reforms contained in H.R. 6368 will bring more firms into the programs and make it easier for them to win contracts. This is a win- win for small businesses and the Federal Government as competition breeds innovation, and innovation leads to saving taxpayer dollars.

Mr. Speaker, I urge my colleagues to support the bipartisan and commonsense reforms of H.R. 6368, and I yield back the balance of my time.

Mr. Speaker, I object to the vote on the ground that a quorum is not present and make the point of order that a quorum is not present.

Mr. Speaker, I rise in support of H.R. 6368, the ``Encouraging Small Business Innovators Act,'' which encourages R&D small business set-asides, to incentivize Small Business Innovation Research Program (SBIR) and Small Business Technology Transfer Program (STTR) participants to serve as mentors under the Small Business Administration's mentor-protege program.

The SBIR program is a highly competitive program that encourages domestic small businesses to engage in Federal Research/Research and Development (R/R&D) that has the potential for commercialization.

Through a competitive awards-based program, SBIR enables small businesses to explore their technological potential and provides the incentive to profit from its commercialization.

By including qualified small businesses in the nation's R&D arena, high-tech innovation is stimulated and the United States gains entrepreneurial capacity as it meets its specific research and development needs.

STTR is another program that expands funding opportunities in the federal innovation research and development (R&D) arena.

Central to the STTR program is expansion of the public/private sector partnerships to include the joint venture opportunities for small businesses and nonprofit research institutions.

The unique feature of the STTR program is the requirement for the small business to formally collaborate with a research institution in Phase I and Phase II.

STTR's most important role is to bridge the gap between performance of basic science and commercialization of resulting innovations.

As a member of Congress, I have worked to advance policies that promote business opportunities and business growth because I believe that this is at the heart of the American dream--small businesses are the backbone of the American economy.

To this end, I have authored numerous Legislative proposals empowering small businesses such as the American Rising Act and the Transitioning Heroes Act, to name a few to provide opportunities for small businesses.

I have also hosted events to create a platform for entrepreneurial and small business participants to hear from experts in the industry and to network with supplier outreach representatives from major government agencies and corporations.

By finding the right mentors like SBIR and STTR, small business owners and incubators can learn valuable tools to aid in leading small businesses to success.

For these reasons, I urge my colleagues to stand with me in the support of H.R. 6368.

Mr. Speaker, before I begin, I thank Ranking Member Velazquez and Chairman Chabot for their leadership in the Small Business Committee, and the colead in this bill, the Congressman from South Carolina (Mr. Norman).

Mr. Speaker, I rise today in support of H.R. 6368, Encouraging Small Business Innovators.

Mr. Speaker, access to capital remains limited for underrepresented minority- and women-owned small businesses. I hear this concern from many in New York City whose ventures in science and technology are full of promise and potential for success.

However, a 2013 report commissioned by the Small Business Administration found that women-owned businesses do not have equal access to capital from the private sector as compared to their male peers. The Small Business Administration's own Office of Advocacy has said that ``there are fewer minority-owned businesses representing high-patenting industries than in all industries.''

Through the Small Business Innovation Research and the Small Business Technology Transfer programs, the Small Business Administration works with partners in 11 Federal agencies, ranging from agriculture to NASA, to support small businesses, and especially those that are minority and disadvantaged owned.

These programs are committed to fostering and encouraging participation and innovation and entrepreneurship by socially and economically disadvantaged individuals and expanding private-sector commercialization of innovations resulting from federally funded research and development. But this is limited only to research and development. There is no consideration given for testing and evaluation.

What good is a product or a method when you don't know if it works effectively, efficiently, or can be used in variable ways?

H.R. 6368 addresses this problem by including testing and evaluation among the activities that SBIR and STTR participants can apply for. This is how we can encourage more underrepresented entrepreneurs and their expertise into a process where they can

develop new products, ideas, and gain respected external validators.

H.R. 6368 also incentivizes mentorship with previous SBIR and STTR companies that have found success in the programs to share and impart that knowledge and experience.

Today's bill is endorsed by the National Defense Industrial Association, an association whose majority are small businesses.

Mr. Speaker, I urge my colleagues to support this bipartisan legislation.

Mr. Speaker, I yield myself such time as I may consume.

Mr. Speaker, I rise in support of H.R. 6368, Encouraging Small Business Innovators.

For almost 40 years, our Nation has experienced increased innovation and job creation through the Small Business Innovation Research program, or SBIR, and the Small Business Technology Transfer program, or STTR. Research conducted by SBIR and STTR awardees has helped address our country's most technological and research-based challenges while generating tremendous economic growth and employment opportunities.

By incentivizing more experienced SBIR/STTR companies to mentor newer companies and rewarding mentors through a past-performance rating increase, Congressman Espaillat's legislation positively promotes integrating these program participants into the larger Federal marketplace. That is why I urge Members to support this legislation.

Mr. Speaker, I reserve the balance of my time.

Mr. Speaker, I yield 5 minutes to the gentleman from New York (Mr. Espaillat), the sponsor of the bill.

Mr. Speaker, I thank the gentleman from New York (Mr. Espaillat) for introducing today's bill to spur increased contracting activities in the SBIR/STTR programs, and I ask all my colleagues to support this important piece of legislation.

Mr. Speaker, I yield back the balance of my time.

Mr. Speaker, I was unavoidably detained. Had I been present, I would have voted YEA on Roll Call No. 400.