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 
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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— 
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‘‘(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 
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(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; 
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‘‘(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 
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‘‘(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 
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‘‘(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— 
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‘‘(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). 
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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; 
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(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 
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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 
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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 
S. 4900—13 

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— 
S. 4900—14 

‘‘(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 
S. 4900—15 

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: 
S. 4900—16 

(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.