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[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 4900 Enrolled Bill (ENR)]

        S.4900

                    One Hundred Seventeenth Congress

                                 of the

                        United States of America

                          AT THE SECOND SESSION

           Begun and held at the City of Washington on Monday,
          the third day of January, two thousand and twenty two

                                 An Act

 
 To reauthorize the SBIR and STTR programs and pilot 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 and STTR Extension Act of 
2022''.
SEC. 2. DEFINITIONS.
    In this Act:
        (1) Administration; administrator.--The terms 
    ``Administration'' and ``Administrator'' mean the Small Business 
    Administration and the Administrator thereof, respectively.
        (2) Federal agency; phase i; phase ii; phase iii; sbir; sttr.--
    The terms ``Federal agency'', ``Phase I'', ``Phase II'', ``Phase 
    III'', ``SBIR'', and ``STTR'' have the meanings given those terms, 
    respectively, in section 9(e) of the Small Business Act (15 U.S.C. 
    638(e)).
SEC. 3. REAUTHORIZATION OF SBIR AND STTR PROGRAMS AND PILOT PROGRAMS.
    Section 9 of the Small Business Act (15 U.S.C. 638) is amended by 
striking ``2022'' each place that term appears and inserting ``2025''.
SEC. 4. FOREIGN RISK MANAGEMENT.
    (a) Definitions.--Section 9(e) of the Small Business Act (15 U.S.C. 
638(e)) is amended--
        (1) in paragraph (13)(B), by striking ``and'' at the end;
        (2) in paragraph (14), by striking the period at the end and 
    inserting a semicolon; and
        (3) by adding at the end the following:
        ``(15) the term `covered individual' means an individual who--
            ``(A) contributes in a substantive, meaningful way to the 
        scientific development or execution of a research and 
        development project proposed to be carried out with a research 
        and development award from a Federal research agency; and
            ``(B) is designated as a covered individual by the Federal 
        research agency concerned;
        ``(16) the term `foreign affiliation' means a funded or 
    unfunded academic, professional, or institutional appointment or 
    position with a foreign government or government-owned entity, 
    whether full-time, part-time, or voluntary (including adjunct, 
    visiting, or honorary);
        ``(17) the term `foreign country of concern' means the People's 
    Republic of China, the Democratic People's Republic of Korea, the 
    Russian Federation, the Islamic Republic of Iran, or any other 
    country determined to be a country of concern by the Secretary of 
    State;
        ``(18) the term `malign foreign talent recruitment program' has 
    the meaning given such term in section 10638 of the Research and 
    Development, Competition, and Innovation Act (division B of Public 
    Law 117-167); and
        ``(19) the term `federally funded award' means a Phase I, Phase 
    II (including a Phase II award under subsection (cc)), or Phase III 
    SBIR or STTR award made using a funding agreement.''.
    (b) Due Diligence Program to Assess Security Risks.--
        (1) In general.--Section 9 of the Small Business Act (15 U.S.C. 
    638) is amended by adding at the end the following:
    ``(vv) Due Diligence Program to Assess Security Risks.--
        ``(1) Establishment.--The head of each Federal agency required 
    to establish an SBIR or STTR program, in coordination with the 
    Administrator, shall establish and implement a due diligence 
    program to assess security risks presented by small business 
    concerns seeking a federally funded award.
        ``(2) Risks.--Each program established under paragraph (1) 
    shall--
            ``(A) assess, using a risk-based approach as appropriate, 
        the cybersecurity practices, patent analysis, employee 
        analysis, and foreign ownership of a small business concern 
        seeking an award, including the financial ties and obligations 
        (which shall include surety, equity, and debt obligations) of 
        the small business concern and employees of the small business 
        concern to a foreign country, foreign person, or foreign 
        entity; and
            ``(B) assess awards and proposals or applications, as 
        applicable, using a risk-based approach as appropriate, 
        including through the use of open-source analysis and 
        analytical tools, for the nondisclosures of information 
        required under (g)(13).
        ``(3) Administrative costs.--
            ``(A) In general.--In addition to the amount allocated 
        under subsection (mm)(1), each Federal agency required to 
        establish an SBIR program may allocate not more than 2 percent 
        of the funds allocated to the SBIR program of the Federal 
        agency for the cost of establishing the due diligence program 
        required under this subsection.
            ``(B) Reporting.--
                ``(i) In general.--Not later than December 31 of the 
            year in which this subparagraph is enacted, and not later 
            than December 31 of each year thereafter, the head of a 
            Federal agency that exercises the authority under 
            subparagraph (A) shall submit to the Committee on Small 
            Business and the Committee on Science, Space, and 
            Technology of the House of Representatives, the Committee 
            on Small Business and Entrepreneurship of the Senate, and 
            the Administrator, for the covered year--

                    ``(I) the total funds allowed to be allocated for 
                the cost of establishing the due diligence program 
                required under this subsection;
                    ``(II) the total amount of funds obligated or 
                expended under subparagraph (A); and
                    ``(III) the due diligence activities carried out or 
                to be carried out using amounts allocated under 
                subparagraph (A).

                ``(ii) Annual report inclusion.--The Administrator 
            shall include the information submitted by head of a 
            Federal agency under clause (i) in the next annual report 
            submitted under subsection (b)(7) after the Administrator 
            receives such information.
                ``(iii) Covered year.--In this subparagraph, the term 
            `covered year' means, with respect to the information 
            required under clause (i), the year covered by the annual 
            report submitted under subsection (b)(7) in which the 
            Administrator is required to include such information by 
            clause (ii).
            ``(C) Termination date.--This paragraph shall terminate on 
        September 30, 2025.''.
        (2) Implementation.--
            (A) In general.--Not later than 270 days after the date of 
        enactment of this Act, the head of a Federal agency required to 
        establish an SBIR or STTR program shall implement a due 
        diligence program under subsection (vv) of section 9 of the 
        Small Business Act (15 U.S.C. 638), as added by paragraph (1), 
        at the Federal agency that, to the extent practicable, 
        incorporates the applicable best practices disseminated under 
        paragraph (3).
            (B) Paperwork reduction act.--Chapter 35 of title 44, 
        United States Code (commonly known as the ``Paperwork Reduction 
        Act''), shall not apply to the implementation of a due 
        diligence program under subsection (vv) of section 9 of the 
        Small Business Act (15 U.S.C. 638), as added by paragraph (1).
            (C) Briefing.--Not later than 30 days after the date of 
        enactment of this Act, and on a recurring basis until 
        implementation is complete, each Federal agency required to 
        establish a due diligence program under subsection (vv) of 
        section 9 of the Small Business Act (15 U.S.C. 638), as added 
        by paragraph (1), shall brief the Committee on Small Business 
        and Entrepreneurship of the Senate and the Committee on Small 
        Business and the Committee on Science, Space, and Technology of 
        the House of Representatives on the implementation of the due 
        diligence program.
        (3) Best practices.--Not later than 180 days after the date of 
    enactment of this Act, the Administrator shall--
            (A) in coordination with the Director of the Office of 
        Science and Technology Policy and in consultation with the 
        Committee on Foreign Investment in the United States, 
        disseminate among Federal agencies required to establish an 
        SBIR or STTR program best practices of those Federal agencies 
        for due diligence programs required under subsection (vv) of 
        section 9 of the Small Business Act (15 U.S.C. 638), as added 
        by paragraph (1); and
            (B) in consultation with the Committee on Foreign 
        Investment in the United States, provide to Federal agencies 
        described in subparagraph (A) guidance on the business 
        relationships required to be disclosed under paragraph (13)(G) 
        of subsection (g) and paragraph (17)(G) of subsection (o) of 
        section 9 of the Small Business Act (15 U.S.C. 638), as added 
        by this Act.
        (4) GAO study.--Not later than 1 year after the date of 
    enactment of this Act, and annually thereafter for 3 years, the 
    Comptroller General of the United States shall conduct a study and 
    submit to the Committee on Small Business and Entrepreneurship and 
    the Committee on Armed Services of the Senate and the Committee on 
    Small Business, the Committee on Armed Services, and the Committee 
    on Science, Space, and Technology of the House of Representatives a 
    report on the implementation and best practices of due diligence 
    programs established under subsection (vv) of section 9 of the 
    Small Business Act (15 U.S.C. 638), as added by paragraph (1), 
    across Federal agencies required to establish an SBIR or STTR 
    program.
        (5) Rule of construction.--Nothing in subsection (vv) of 
    section 9 of the Small Business Act (15 U.S.C. 638), as added by 
    paragraph (1), shall be construed to--
            (A) apply to any Federal agency with a due diligence 
        program that applies to the SBIR or STTR programs required 
        under subsection (vv) of section 9 of the Small Business Act 
        (15 U.S.C. 638), as added by paragraph (1), in existence as of 
        the date of enactment of this Act; or
            (B) restrict any Federal agency from taking due diligence 
        measures in addition to those required under such subsection 
        (vv) at the Federal agency.
    (c) Disclosures Regarding Ties to People's Republic of China and 
Other Foreign Countries.--
        (1) SBIR.--Section 9(g) of the Small Business Act (15 U.S.C. 
    638(g)) is amended--
            (A) in paragraph (11), by striking ``and'' at the end;
            (B) in paragraph (12), by striking the period at the end 
        and inserting a semicolon; and
            (C) by adding at the end the following:
        ``(13) require each small business concern submitting a 
    proposal or application for a federally funded award to disclose in 
    the proposal or application--
            ``(A) the identity of all owners and covered individuals of 
        the small business concern who are a party to any foreign 
        talent recruitment program of any foreign country of concern, 
        including the People's Republic of China;
            ``(B) the existence of any joint venture or subsidiary of 
        the small business concern that is based in, funded by, or has 
        a foreign affiliation with any foreign country of concern, 
        including the People's Republic of China;
            ``(C) any current or pending contractual or financial 
        obligation or other agreement specific to a business 
        arrangement, or joint venture-like arrangement with an 
        enterprise owned by a foreign state or any foreign entity;
            ``(D) whether the small business concern is wholly owned in 
        the People's Republic of China or another foreign country of 
        concern;
            ``(E) the percentage, if any, of venture capital or 
        institutional investment by an entity that has a general 
        partner or individual holding a leadership role in such entity 
        who has a foreign affiliation with any foreign country of 
        concern, including the People's Republic of China;
            ``(F) any technology licensing or intellectual property 
        sales to a foreign country of concern, including the People's 
        Republic of China, during the 5-year period preceding 
        submission of the proposal; and
            ``(G) any foreign business entity, offshore entity, or 
        entity outside the United States related to the small business 
        concern;
        ``(14) after reviewing the disclosures of a small business 
    concern under paragraph (13), and if determined appropriate by the 
    head of such Federal agency, request such small business concern to 
    provide true copies of any contractual or financial obligation or 
    other agreement specific to a business arrangement, or joint-
    venture like arrangement with an enterprise owned by a foreign 
    state or any foreign entity in effect during the 5-year period 
    preceding submission of the proposal with respect to which such 
    small business concern made such disclosures;''.
        (2) STTR.--Section 9(o) of the Small Business Act (15 U.S.C. 
    638(o)) is amended--
            (A) in paragraph (15), by striking ``and'' at the end;
            (B) in paragraph (16), by striking the period at the end 
        and inserting a semicolon; and
            (C) by adding at the end the following:
        ``(17) require each small business concern submitting a 
    proposal or application for a federally funded award to disclose in 
    the proposal or application--
            ``(A) the identity of all owners and covered individuals of 
        the small business concern who are a party to any foreign 
        talent recruitment program of any foreign country of concern, 
        including the People's Republic of China;
            ``(B) the existence of any joint venture or subsidiary of 
        the small business concern that is based in, funded by, or has 
        a foreign affiliation with any foreign country of concern, 
        including the People's Republic of China;
            ``(C) any current or pending contractual or financial 
        obligation or other agreement specific to a business 
        arrangement, or joint venture-like arrangement with an 
        enterprise owned by a foreign state or any foreign entity;
            ``(D) whether the small business concern is wholly owned in 
        the People's Republic of China or another foreign country;
            ``(E) the percentage, if any, of venture capital or 
        institutional investment by an entity that has a general 
        partner or individual holding a leadership role in such entity 
        who has a foreign affiliation with any foreign country of 
        concern, including the People's Republic of China;
            ``(F) any technology licensing or intellectual property 
        sales to a foreign country of concern, including the People's 
        Republic of China, during the 5-year period preceding 
        submission of the proposal; and
            ``(G) any foreign business entity, offshore entity, or 
        entity outside the United States related to the small business 
        concern;
        ``(18) after reviewing the disclosures of a small business 
    concern under paragraph (17), and if determined appropriate by the 
    head of such Federal agency, request such small business concern to 
    provide true copies of any contractual or financial obligation or 
    other agreement specific to a business arrangement, or joint-
    venture like arrangement with an enterprise owned by a foreign 
    state or any foreign entity in effect during the 5-year period 
    preceding submission of the proposal with respect to which such 
    small business concern made such disclosures;''.
    (d) Denial of Awards.--
        (1) SBIR.--Section 9(g) of the Small Business Act (15 U.S.C. 
    638(g)), as amended by subsection (c)(1), is further amended by 
    adding at the end the following:
        ``(15) not make an award under the SBIR program of the Federal 
    agency to a small business concern if the head of the Federal 
    agency determines that--
            ``(A) the small business concern submitting the proposal or 
        application--
                ``(i) has an owner or covered individual that is party 
            to a malign foreign talent recruitment program;
                ``(ii) has a business entity, parent company, or 
            subsidiary located in the People's Republic of China or 
            another foreign country of concern; or
                ``(iii) has an owner or covered individual that has a 
            foreign affiliation with a research institution located in 
            the People's Republic of China or another foreign country 
            of concern; and
            ``(B) the relationships and commitments described in 
        clauses (i) through (iii) of subparagraph (A)--
                ``(i) interfere with the capacity for activities 
            supported by the Federal agency to be carried out;
                ``(ii) create duplication with activities supported by 
            the Federal agency;
                ``(iii) present concerns about conflicts of interest;
                ``(iv) were not appropriately disclosed to the Federal 
            agency;
                ``(v) violate Federal law or terms and conditions of 
            the Federal agency; or
                ``(vi) pose a risk to national security;''.
        (2) STTR.--Section 9(o) of the Small Business Act (15 U.S.C. 
    638(o)), as amended by subsection (c)(2), is further amended by 
    adding at the end the following:
        ``(19) not make an award under the STTR program of the Federal 
    agency to a small business concern if the head of the Federal 
    agency determines that--
            ``(A) the small business concern submitting the proposal or 
        application--
                ``(i) has an owner or covered individual that is party 
            to a malign foreign talent recruitment program;
                ``(ii) has a business entity, parent company, or 
            subsidiary located in the People's Republic of China or 
            another foreign country of concern; or
                ``(iii) has an owner or covered individual that has a 
            foreign affiliation with a research institution located in 
            the People's Republic of China or another foreign country 
            of concern; and
            ``(B) the relationships and commitments described in 
        clauses (i) through (iii) of subparagraph (A)--
                ``(i) interfere with the capacity for activities 
            supported by the Federal agency to be carried out;
                ``(ii) create duplication with activities supported by 
            the Federal agency;
                ``(iii) present concerns about conflicts of interest;
                ``(iv) were not appropriately disclosed to the Federal 
            agency;
                ``(v) violate Federal law or terms and conditions of 
            the Federal agency; or
                ``(vi) pose a risk to national security;''.
SEC. 5. AGENCY RECOVERY AUTHORITY AND ONGOING REPORTING.
    (a) SBIR.--Section 9(g) of the Small Business Act (15 U.S.C. 
638(g)), as amended by section 4(d)(1), is further amended by adding at 
the end the following:
        ``(16) require a small business concern receiving an award 
    under its SBIR program to repay all amounts received from the 
    Federal agency under the award if--
            ``(A) the small business concern makes a material 
        misstatement that the Federal agency determines poses a risk to 
        national security; or
            ``(B) there is a change in ownership, change to entity 
        structure, or other substantial change in circumstances of the 
        small business concern that the Federal agency determines poses 
        a risk to national security; and
        ``(17) require a small business concern receiving an award 
    under its SBIR program to regularly report to the Federal agency 
    and the Administration throughout the duration of the award on--
            ``(A) any change to a disclosure required under 
        subparagraphs (A) through (G) of paragraph (13);
            ``(B) any material misstatement made under paragraph 
        (16)(A); and
            ``(C) any change described in paragraph (16)(B).''.
    (b) STTR.--Section 9(o) of the Small Business Act (15 U.S.C. 
638(o)), as amended by section 4(d)(1), is further amended by adding at 
the end the following:
        ``(20) require a small business concern receiving an award 
    under its STTR program to repay all amounts received from the 
    Federal agency under the award if--
            ``(A) the small business concern makes a material 
        misstatement that the Federal agency determines poses a risk to 
        national security; or
            ``(B) there is a change in ownership, change to entity 
        structure, or other substantial change in circumstances of the 
        small business concern that the Federal agency determines poses 
        a risk to national security; and
        ``(21) require a small business concern receiving an award 
    under its STTR program to regularly report to the Federal agency 
    and the Administration throughout the duration of the award on--
            ``(A) any change to a disclosure required under 
        subparagraphs (A) through (G) of paragraph (17);
            ``(B) any material misstatement made under paragraph 
        (20)(A); and
            ``(C) any change described in paragraph (20)(B).''.
    (c) Paperwork Reduction Act.--Chapter 35 of title 44, United States 
Code (commonly known as the ``Paperwork Reduction Act''), shall not 
apply to the implementation of paragraphs (16) and (17) of subsection 
(g) or paragraphs (20) and (21) of subsection (o) of section 9 of the 
Small Business Act (15 U.S.C. 638), as added by subsections (a) and 
(b).
SEC. 6. REPORT ON ADVERSARIAL MILITARY AND FOREIGN INFLUENCE IN THE 
SBIR AND STTR PROGRAMS.
    (a) Covered Agency Defined.--In this section, the term ``covered 
agency'' means--
        (1) the Department of Defense;
        (2) the Department of Energy;
        (3) the Department of Health and Human Services; or
        (4) the National Science Foundation.
    (b) Requirement.--
        (1) In general.--Except as provided in paragraph (2), not later 
    than 180 days after the date of enactment of this Act, the head of 
    each covered agency shall submit a report assessing the adversarial 
    military and foreign influences in the SBIR and STTR programs at 
    the covered agency to--
            (A) the Committee on Armed Services, the Committee on Small 
        Business and Entrepreneurship, and the Committee on Commerce, 
        Science, and Transportation of the Senate; and
            (B) the Committee on Armed Services, the Committee on Small 
        Business, and the Committee on Science, Space, and Technology 
        of the House of Representatives.
        (2) Department of health and human services.--The Secretary of 
    Health and Human Services shall submit 2 reports under paragraph 
    (1)--
            (A) 1 assessing the adversarial military and foreign 
        influences in the SBIR and STTR programs of the National 
        Institutes of Health; and
            (B) 1 assessing the adversarial military and foreign 
        influences in the SBIR and STTR programs of the Department of 
        Health and Human Services other than those of the National 
        Institutes of Health.
    (c) Contents.--Each report submitted by a covered agency under 
subsection (b) shall include an analysis of--
        (1) the national security and research and integrity risks of 
    the SBIR and STTR programs of the covered agency; and
        (2) the capability of such covered agency to identify and 
    mitigate such risks.
    (d) Form.--Each report submitted under subsection (b) shall be in 
unclassified form, but may include a classified annex.
    (e) Independent Entity Contracting.--The head of each covered 
agency, in coordination with the heads of other Federal agencies, as 
appropriate, may enter into a contract with an independent entity to 
prepare a report required under subsection (b).
SEC. 7. PROGRAM ON INNOVATION OPEN TOPICS.
    (a) In General.--Section 9 of the Small Business Act (15 U.S.C. 
638), as amended by this Act, is further amended--
        (1) in subsection (b)(7)--
            (A) in subparagraph (G), by striking ``and'' at the end; 
        and
            (B) by adding at the end the following:
            ``(I) the number of applications submitted to each Federal 
        agency participating in the SBIR or STTR program in innovation 
        open topics as compared to conventional topics, and how many 
        small business concerns receive funding from open topics 
        compared to conventional topics;
            ``(J) the total number and dollar amount, and average size, 
        of awards made by each Federal agency participating in the SBIR 
        or STTR program, by phase, from--
                ``(i) open topics; and
                ``(ii) conventional topics;''; and
        (2) by adding at the end the following:
    ``(ww) Program on Innovation Open Topics.--
        ``(1) Establishment.--Not later than 180 days after the date of 
    enactment of this subsection, the Secretary of Defense shall 
    establish innovation open topic activities using the SBIR and STTR 
    programs of the Department of Defense in order to--
            ``(A) increase the transition of commercial technology to 
        the Department of Defense;
            ``(B) expand the small business nontraditional industrial 
        base;
            ``(C) increase commercialization derived from investments 
        of the Department of Defense; and
            ``(D) expand the ability for qualifying small business 
        concerns to propose technology solutions to meet the needs of 
        the Department of Defense.
        ``(2) Frequency.--The Secretary of Defense shall conduct not 
    less than 1 open topic announcement at each component of the 
    Department of Defense per fiscal year.
        ``(3) Briefing.--Not later than 180 days after the date of 
    enactment of this subsection, the Secretary of Defense shall 
    provide a briefing on the establishment of the program required 
    under paragraph (1) to--
            ``(A) the Committee on Armed Services and the Committee on 
        Small Business and Entrepreneurship of the Senate; and
            ``(B) the Committee on Small Business, the Committee on 
        Armed Services, and the Committee on Science, Space, and 
        Technology of the House of Representatives.''.
    (b) GAO Report.--Not later than 1 year after the date of enactment 
of this Act, and annually thereafter for 3 years, the Comptroller 
General of the United States shall submit to Congress and issue a 
publicly available report comparing open topics and conventional topics 
under the SBIR and STTR programs that includes, to the extent 
practicable--
        (1) an assessment of the percentage of small business concerns 
    that progress from Phase I to Phase II awards, then to Phase III 
    awards;
        (2) the number of awards under the SBIR and STTR programs made 
    to first-time applicants and first-time awardees;
        (3) the number of awards under the SBIR and STTR programs made 
    to non-traditional small business concerns, including those owned 
    by women, minorities, and veterans;
        (4) a description of outreach and assistance efforts by the 
    Department of Defense to encourage and prepare new and diverse 
    small business concerns to participate in the program established 
    under subsection (ww) of section 9 of the Small Business Act (15 
    U.S.C. 638), as added by subsection (a);
        (5) the length of time to review and disburse awards under such 
    subsection (ww), evaluated in a manner enabling normalized 
    comparisons of such times taken by each Federal agency that is 
    required to establish an SBIR or STTR program and offers open 
    topics;
        (6) the ratio, and an assessment, of the amount of funding 
    allocated towards open topics as compared to conventional topics at 
    each Federal agency that is required to establish an SBIR or STTR 
    program and offers open topics; and
        (7) a comparison of the types of technology and end users 
    funded under open topics compared to the types of technology and 
    end users funded under conventional topics.
SEC. 8. INCREASED MINIMUM PERFORMANCE STANDARDS FOR EXPERIENCED FIRMS.
    Section 9 of the Small Business Act (15 U.S.C. 638), as amended by 
this Act, is further amended--
        (1) in subsection (b)(7), by adding at the end the following:
            ``(K) the minimum performance standards established under 
        subsection (qq), including any applicable modifications under 
        paragraph (3) of such subsection, and the number of small 
        business concerns that did not meet those minimum performance 
        standards, provided that the Administrator does not publish any 
        personally identifiable information, the identity of each such 
        small business concern, or any otherwise sensitive information; 
        and
            ``(L) the aggregate number and dollar amount of SBIR and 
        STTR awards made pursuant to waivers under subsection 
        (qq)(3)(E), provided that the Administrator does not publish 
        any personally identifiable information, the identity of each 
        such small business concern, or any otherwise sensitive 
        information;''; and
        (2) in subsection (qq)--
            (A) by redesignating paragraphs (3) and (4) as paragraphs 
        (4) and (5), respectively;
            (B) by inserting after paragraph (2) the following:
        ``(3) Increased minimum performance standards for experienced 
    firms.--
            ``(A) Progress to phase ii success.--
                ``(i) In general.--With respect to a small business 
            concern that received or receives more than 50 Phase I 
            awards during a covered period, each minimum performance 
            standard established under paragraph (1)(A)(ii) shall be 
            doubled for such covered period.
                ``(ii) Consequence of failure to meet standard.--If the 
            head of a Federal agency determines that a small business 
            concern that received a Phase I award from the Federal 
            agency is not meeting an applicable increased minimum 
            performance standard modified under clause (i), the small 
            business concern may not receive more than 20 total Phase I 
            awards and Phase II awards under subsection (cc) from each 
            Federal agency during the 1-year period beginning on the 
            date on which such determination is made.
                ``(iii) Covered period defined.--In this subparagraph, 
            the term `covered period' means a consecutive period of 5 
            fiscal years preceding the most recent fiscal year.
            ``(B) Progress to phase iii success.--
                ``(i) In general.--Each minimum performance standard 
            established under paragraph (2)(A)(ii) shall--

                    ``(I) with respect to a small business concern that 
                received or receives more than 50 Phase II awards 
                during a covered period, require an average of $250,000 
                of aggregate sales and investments per Phase II award 
                received during such covered period; and
                    ``(II) with respect to a small business concern 
                that received or receives more than 100 Phase II awards 
                during a covered period, require an average of $450,000 
                of aggregate sales and investments per Phase II award 
                received during such covered period.

                ``(ii) Consequence of failure to meet standard.--If the 
            head of a Federal agency determines that a small business 
            concern that received a Phase I award from the agency is 
            not meeting an applicable increased minimum performance 
            standard modified under clause (i), the small business 
            concern may not receive more than 20 total Phase I awards 
            and Phase II awards under subsection (cc) from each agency 
            during the 1-year period beginning on the date on which 
            such determination is made.
                ``(iii) Documentation.--

                    ``(I) In general.--A small business concern that is 
                subject to an increased minimum performance standard 
                described in clause (i) shall submit to the 
                Administrator supporting documentation evidencing that 
                all covered sales of the small business concern were 
                properly used to meet the increased minimum performance 
                standard.
                    ``(II) Covered sale defined.--In this clause, the 
                term `covered sale' means a sale by a small business 
                concern--

                        ``(aa) that the small business concern claims 
                    to be attributable to an SBIR or STTR award;
                        ``(bb) for which no amount of the payment was 
                    or is made using Federal funds;
                        ``(cc) which the small business concern uses to 
                    meet an applicable increased minimum performance 
                    standard under clause (i); and
                        ``(dd) that was or is received during the 5 
                    fiscal years immediately preceding the fiscal year 
                    in which the small business concern uses the sale 
                    to meet the increased minimum performance standard.
                ``(iv) Covered period defined.--In this subparagraph, 
            the term `covered period' means a consecutive period of 10 
            fiscal years preceding the most recent 2 fiscal years.
            ``(C) Patents for increased minimum performance 
        standards.--A small business concern with respect to which an 
        increased minimum performance standard under subparagraph (B) 
        applies may not meet the increased minimum performance standard 
        by obtaining patents.
            ``(D) Effective date.--Subparagraphs (A) through (C) shall 
        take effect on April 1, 2023.
            ``(E) Waiver.--
                ``(i) In general.--The Administrator may, upon the 
            request of a senior official of a Federal agency, grant a 
            waiver with respect to a topic for the SBIR or STTR program 
            of the Federal agency if--

                    ``(I) the topic is critical to the mission of the 
                Federal agency or relates to national security; and
                    ``(II) the official submits to the Administrator a 
                request for the waiver in accordance with clause (iii).

                ``(ii) Waiver effects.--If the Administration grants a 
            waiver with respect to a topic for the SBIR or STTR program 
            of a Federal agency, subparagraphs (A)(ii) and (B)(ii) 
            shall not prohibit any covered small business concern from 
            receiving an SBIR or STTR award under such topic.
                ``(iii) Agency request and congressional 
            notification.--Not later than 15 days before the release of 
            a solicitation including a topic for which a senior 
            official of a Federal agency is requesting a waiver under 
            clause (i), the senior official shall submit to the 
            Administrator, the Committee on Small Business and the 
            Committee on Science, Space, and Technology of the House of 
            Representatives, and the Committee on Small Business and 
            Entrepreneurship of the Senate a request for the waiver.
                ``(iv) Administrator determination and congressional 
            notification.--Not later than 15 days after receiving a 
            request for a waiver under clause (i), the Administrator 
            shall make a determination with respect to the request and 
            notify the senior official at the Federal agency that made 
            the request, the Committee on Small Business and the 
            Committee on Science, Space, and Technology of the House of 
            Representatives, and the Committee on Small Business and 
            Entrepreneurship of the Senate of the determination.
                ``(v) Definitions.--In this subparagraph:

                    ``(I) Covered small business concern.--The term 
                `covered small business concern' means a small business 
                concern that is subject to the consequences under 
                subparagraph (A)(ii) or (B)(ii) pursuant to a 
                determination by the head of a Federal agency that such 
                small business concern did not meet an increased 
                minimum performance standard that was applicable to 
                such small business concern.
                    ``(II) Senior official.--The term `senior official' 
                means an individual appointed to a position in a 
                Federal agency that is classified above GS-15 pursuant 
                section 5108 of title 5, United States Code, or any 
                equivalent position, as determined by the 
                Administrator.

            ``(F) Reporting.--
                ``(i) In general.--Not later than July 1, 2023, and 
            annually thereafter, the Administrator shall submit to 
            Congress a list of the small business concerns that did not 
            meet--

                    ``(I) an applicable minimum performance standard 
                established under paragraph (1)(A)(ii) or (2)(A)(ii); 
                or
                    ``(II) an applicable increased minimum performance 
                standard.

                ``(ii) Waivers.--Each list submitted under clause (i) 
            shall identify each small business concern that received an 
            SBIR or STTR award pursuant to a waiver granted under 
            subparagraph (E) by the Administrator during the period 
            covered by the list.
                ``(iii) Confidentiality.--Each list submitted under 
            clause (i) shall be confidential and exempt from disclosure 
            under section 552(b)(3) of title 5, United States Code 
            (commonly known as the `Freedom of Information Act').
            ``(G) Implementation.--Not later than April 1, 2023, the 
        Administration shall implement the increased minimum 
        performance standards under this paragraph.
            ``(H) Rules of construction.--Nothing in this paragraph 
        shall be construed--
                ``(i) to prohibit a small business concern from 
            participating in a Phase I (or Phase II if under the 
            authority of subsection (cc)) of an SBIR or STTR program 
            under paragraph (1)(B) or (2)(B) solely on the basis of a 
            determination by the head of a Federal agency that the 
            small business concern is not meeting an increased minimum 
            performance standard; or
                ``(ii) to prevent the head of a Federal agency from 
            implementing more restrictive limitations on the number of 
            federally funded Phase I awards and direct to Phase II 
            awards under subsection (cc) that may be awarded to a small 
            business concern than the limitations described in 
            subparagraphs (A)(ii) and (B)(ii).
            ``(I) Termination.--This paragraph shall terminate on 
        September 30, 2025.'';
            (C) in paragraph (5), as so redesignated, by striking 
        ``paragraph (3)(A)'' and inserting ``paragraph (4)(A)''; and
            (D) by adding at the end the following:
        ``(6) Inspector general audit.--Not later than 1 year after the 
    date on which the Administrator implements the increased minimum 
    performance standards under paragraph (3), and periodically 
    thereafter, the Inspector General of the Administration shall--
            ``(A) conduct an audit on whether the small business 
        concerns subject to increased minimum performance standards 
        under paragraph (3)(B) verified--
                ``(i) the sales by and investments in the small 
            business concerns--

                    ``(I) during the 5 fiscal years immediately 
                preceding the fiscal year in which the small business 
                concern used such sales and investments to meet an 
                applicable increased performance standard; and
                    ``(II) as a direct result of a Phase I award or 
                Phase II award made under subsection (cc) during the 
                covered period (as defined in paragraph (3)(B)(iv)), 
                consistent with the definition of Phase III, as 
                applicable;

                ``(ii) any third-party revenue the small business 
            concerns list as investments or incomes to meet the 
            increased minimum performance standard--

                    ``(I) is a direct result of a Phase I award or 
                Phase II award made under subsection (cc) during the 
                covered period (as defined in paragraph (3)(B)(iv)); 
                and
                    ``(II) consistent with the requirements of the 
                Administrator as in effect on September 30, 2022, or 
                any successor requirements; and

                ``(iii) any dollar amounts such small business concerns 
            list as investments or income to meet such increased 
            minimum performance standard the providence of which is 
            unclear and that is not directly attributable to a Phase I 
            award or Phase II award made under subsection (cc) during 
            the covered period (as defined in paragraph (3)(B)(iv)), 
            consistent with the definition of Phase III, as applicable;
            ``(B) assess the self-certification requirements for the 
        minimum performance standards established under paragraph 
        (2)(A)(ii) and the increased minimum performance standards 
        under paragraph (3)(B); and
            ``(C) submit to the Committee on Small Business and 
        Entrepreneurship of the Senate and the Committee on Small 
        Business and the Committee on Science, Space, and Technology of 
        the House of Representatives a report on the audit conducted 
        under subparagraph (A) and the assessment conducted under 
        subparagraph (B).
        ``(7) Increased minimum performance standard defined.--In this 
    subsection, the term `increased minimum performance standard' means 
    a minimum performance standard established under paragraph 
    (1)(A)(ii) or (2)(A)(ii) as modified under subparagraph (A) or (B), 
    respectively, of paragraph (3) with respect to a small business 
    concern.''.
SEC. 9. PROHIBITION AGAINST WRITING SOLICITATION TOPICS.
    (a) In General.--Section 9 of the Small Business Act (15 U.S.C. 
638), as amended by this Act, is further amended by adding at the end 
the following subsection:
    ``(xx) Additional Provisions Relating to Solicitation Topics.--
        ``(1) In general.--A Federal agency required to establish an 
    SBIR or STTR program shall implement a multi-level review and 
    approval process within the Federal agency for solicitation topics 
    to ensure adequate competition and that no private individual or 
    entity is shaping the requirements for eligibility for the 
    solicitation topic after the selection of the solicitation topic, 
    except that the Federal agency may amend the requirements to 
    clarify the solicitation topic.
        ``(2) Referral.--A Federal agency that does not comply with 
    paragraph (1) shall be referred to the Inspector General of the 
    Administration for further investigation.''.
  SEC. 10. GAO STUDY ON MULTIPLE AWARD WINNERS.
    Not later than 18 months after the date of enactment of this Act, 
the Comptroller General of the United States shall conduct a study and 
submit to the Committee on Small Business and Entrepreneurship of the 
Senate and the Committee on Small Business and the Committee on 
Science, Space, and Technology of the House of Representatives a 
report, which shall be made publicly available, on small business 
concerns that are awarded not less than 50 Phase II awards under the 
SBIR or STTR programs during the consecutive period of 10 fiscal years 
preceding the most recent 2 fiscal years, including, to the extent 
practicable, an analysis of--
        (1) the impact of the small business concerns on the SBIR and 
    STTR programs;
        (2) the ratio of the number of Phase II awards received by the 
    small business concerns to the total number of Phase II awards;
        (3) the ability of the small business concerns to commercialize 
    and meet the tenets of the SBIR and STTR programs;
        (4) the impact on new entrants and seeding technology necessary 
    to the Federal agency mission or commercial markets and, with 
    respect to the Department of Defense, whether the types of 
    technology the small business concerns are pursuing are primarily 
    hardware, software, or system components for the warfighter;
        (5) an evaluation and study of varying levels of award caps and 
    lifetime program earning caps;
        (6) an assessment of the increased minimum performance 
    standards under paragraph (3) of section 9(qq) of the Small 
    Business Act (15 U.S.C. 638(qq)), as added by section 8, on the 
    behavior of those concerns and on the SBIR and STTR programs, and 
    whether to continue such increased minimum performance standards; 
    and
        (7) recommendations on whether alternative minimum performance 
    standards under section 9(qq) of the Small Business Act (15 U.S.C. 
    638(qq)) should be considered, and the extent to which such 
    alternative minimum performance standards preserve the competitive, 
    merit-based foundation of the SBIR and STTR programs.
  SEC. 11. GAO REPORT ON SUBCONTRACTING IN SBIR AND STTR PROGRAMS.
    Not later than 1 year after the date of the enactment of this Act, 
the Comptroller General of the United States shall submit to the 
Committee on Small Business and Entrepreneurship of the Senate and the 
Committee on Small Business and the Committee on Science, Space, and 
Technology of the House of Representatives a report evaluating, to the 
extent practicable, the following:
        (1) The extent to which SBIR awardees and STTR awardees are in 
    compliance with the Federal Funding Accountability and Transparency 
    Act (31 U.S.C. 6101 note).
        (2) The extent to which SBIR awardees and STTR awardees enter 
    into subcontracting agreements with respect to an SBIR or STTR 
    award.
        (3) The total number and dollar amount of subcontracts entered 
    into between an SBIR awardee or an STTR awardee and a concern that 
    is not a small business concern (including such concerns that are 
    defense contractors) with respect to an SBIR or STTR award.
        (4) A description of the type and purpose of subcontracting 
    agreements described in paragraph (2).
        (5) An analysis of whether the use of subcontracts by an SBIR 
    awardee or an STTR awardee is consistent with the purposes of 
    section 9 of the Small Business Act (15 U.S.C. 638).

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.
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