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[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 10407 Introduced in House (IH)]

<DOC>

118th CONGRESS
  2d Session
                               H. R. 10407

  To amend the Small Business Act to reauthorize and modify the Small 
  Business Innovation Research and Small Business Technology Transfer 
               Research programs, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                           December 12, 2024

Ms. Velazquez introduced the following bill; which was referred to the 
   Committee on Small Business, and in addition to the Committees on 
Science, Space, and Technology, and Armed Services, for a period to be 
subsequently determined by the Speaker, in each case for consideration 
  of such provisions as fall within the jurisdiction of the committee 
                               concerned

_______________________________________________________________________

                                 A BILL

 
  To amend the Small Business Act to reauthorize and modify the Small 
  Business Innovation Research and Small Business Technology Transfer 
               Research programs, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``SBIR/STTR Reauthorization Act of 
2024''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
                  TITLE I--REAUTHORIZATION OF PROGRAMS

Sec. 101. Sense of Congress.
Sec. 102. Extension of SBIR and STTR authority.
Sec. 103. Extension of FAST Program.
                 TITLE II--DIVERSIFICATION INITIATIVES

Sec. 201. SBIR and STTR fellowships.
Sec. 202. Application assistance to broaden participation.
Sec. 203. Technical and business assistance improvements.
Sec. 204. Improvements to website relating to the SBIR program or STTR 
                            program.
               TITLE III--COMMERCIALIZATION IMPROVEMENTS

Sec. 301. Phase III award education.
Sec. 302. Report on DoD denials of Phase III.
                        TITLE IV--PILOT PROGRAMS

Sec. 401. Extend and modify assistance for administrative, oversight, 
                            and contract processing costs.
Sec. 402. Extend and expand the direct to Phase II authority.
Sec. 403. Acceleration of DoD SBIR and STTR awards.
Sec. 404. Extend commercialization readiness program for civilian 
                            agencies.
Sec. 405. Extend and expand Phase 0 proof of concept partnership 
                            program.
Sec. 406. Extend commercialization assistance programs.
           TITLE V--OVERSIGHT AND SIMPLIFICATION INITIATIVES

Sec. 501. Annual reports to Congress.
Sec. 502. Comptroller General reports on fraud controls.
Sec. 503. Comptroller General report on diversification and 
                            commercialization.
Sec. 504. Extend the report on award timeliness.
Sec. 505. Pilot program to accelerate National Institutes of Health 
                            evaluation process.
Sec. 506. Codifying safeguards for small business concerns majority-
                            owned by venture capital operating 
                            companies, hedge funds, or private equity 
                            firms.
                      TITLE VI--TECHNICAL CHANGES

Sec. 601. Inclusion of SBICs in the SBIR and STTR programs.
Sec. 602. Phase III and sole-source awards.

                  TITLE I--REAUTHORIZATION OF PROGRAMS

SEC. 101. SENSE OF CONGRESS.

    Section 9(a) of the Small Business Act (15 U.S.C. 638(a)) is 
amended--
            (1) by inserting ``(1)'' before ``Research and 
        development''; and
            (2) by adding at the end the following new paragraphs:
    ``(2) It is the sense of the Congress that--
            ``(A) the purpose of the SBIR and STTR programs is to 
        strengthen the role of innovative small business concerns in 
        Federally funded research and development, including--
                    ``(i) stimulating technological innovation;
                    ``(ii) using small business concerns to meet the 
                needs of Federal research and development;
                    ``(iii) fostering and encouraging participation of 
                and by socially and economically disadvantaged small 
                business concerns (as defined in section 8(a)(4)(A)) 
                and small business concerns owned and controlled by 
                women in technological innovation; and
                    ``(iv) increasing private sector commercialization 
                of innovations derived from Federal research and 
                development, thereby increasing competition, 
                productivity, and economic growth; and
            ``(B) in addition to the purposes set forth in subparagraph 
        (A), the purpose of the STTR program is to reserve a portion of 
        the extramural research or research and development budgets of 
        Federal agencies to provide awards to small business concerns 
        for cooperative research and development with research 
        institutions.''.

SEC. 102. EXTENSION OF SBIR AND STTR AUTHORITY.

    (a) SBIR.--Section 9 of the Small Business Act (15 U.S.C. 638) is 
amended by striking subsection (m).
    (b) STTR.--Section 9(n)(1)(A) of the Small Business Act (15 U.S.C. 
638(n)(1)(A)) is amended by striking ``through fiscal year 2025''.

SEC. 103. EXTENSION OF FAST PROGRAM.

    Section 34(i) of the Small Business Act (15 U.S.C. 657d(i)) is 
amended by striking ``September 30, 2005'' and inserting ``September 
30, 2030''.

                 TITLE II--DIVERSIFICATION INITIATIVES

SEC. 201. SBIR AND STTR FELLOWSHIPS.

    Section 9 of the Small Business Act (15 U.S.C. 638) is amended--
            (1) in subsection (f), by adding at the end the following 
        new paragraph:
            ``(5) Fellowships.--
                    ``(A) In general.--A Federal agency may provide 
                grants or awards, either directly or in partnership 
                with a third party, to small business concerns that 
                have received SBIR or STTR Phase II awards to provide 
                fellowship and internship opportunities at the 
                undergraduate, baccalaureate, graduate, and 
                postdoctoral levels in fields that are important to 
                such Federal agency.
                    ``(B) Enhanced outreach.--Each Federal agency that 
                makes an award or enters into a partnership under 
                subparagraph (A) shall provide for enhanced outreach to 
                increase the participation of women, socially 
                disadvantaged individuals (as described in section 
                8(a)(5)), and economically disadvantaged individuals 
                (as described section 8(a)(6)(A)) in the fellowship and 
                internship opportunities described under subparagraph 
                (A).
                    ``(C) Support organization.--Each Federal agency 
                that makes an award or enters into a partnership under 
                subparagraph (A) may partner with or provide grants or 
                awards to a third-party organization to support and 
                facilitate the enhanced outreach under subparagraph (B) 
                provided that such third-party organization is a 
                nonprofit organization with relevant experience and 
                demonstrated expertise in delivery of services 
                described in subparagraph (B).
                    ``(D) Funding.--In carrying out this paragraph, a 
                Federal agency may use only the following amounts:
                            ``(i) With respect to a Federal agency that 
                        uses the authority under subsection (mm), the 
                        funds authorized under such subsection.
                            ``(ii) With respect a Federal agency other 
                        than a Federal agency described in clause (i), 
                        not more than three percent of the funds 
                        required to be expended under paragraph (1).''; 
                        and
            (2) in subsection (n), by adding at the end the following 
        new paragraph:
            ``(4) Fellowships.--
                    ``(A) In general.--A Federal agency may provide 
                grants or awards, either directly or in partnership 
                with a third party, to small business concerns that 
                have received SBIR or STTR Phase II awards to provide 
                fellowship and internship opportunities at the 
                undergraduate, baccalaureate, graduate, and 
                postdoctoral levels in fields that are important to 
                such Federal agency.
                    ``(B) Enhanced outreach.--Each Federal agency that 
                makes an award or enters into a partnership under 
                subparagraph (A) shall provide for enhanced outreach to 
                increase the participation of women, socially 
                disadvantaged individuals (as described in section 
                8(a)(5)), and economically disadvantaged individuals 
                (as described section 8(a)(6)(A)) in the fellowship and 
                internship opportunities described under subparagraph 
                (A).
                    ``(C) Support organization.--Each Federal agency 
                that makes an award or enters into a partnership under 
                subparagraph (A) may partner with or provide grants or 
                awards to a third-party organization to support and 
                facilitate the enhanced outreach under subparagraph (B) 
                provided such third-party organization is a nonprofit 
                organization with relevant experience and demonstrated 
                expertise in delivery of services described in 
                subparagraph (B).
                    ``(D) Funding.--In carrying out this paragraph, a 
                Federal agency may use only the following amounts:
                            ``(i) With respect to a Federal agency that 
                        uses the authority under subsection (mm), the 
                        funds authorized under such subsection.
                            ``(ii) With respect a Federal agency other 
                        than a Federal agency described in clause (i), 
                        not more than three percent of the funds 
                        required to be expended under paragraph (1).''.

SEC. 202. APPLICATION ASSISTANCE TO BROADEN PARTICIPATION.

    (a) In General.--Section 9(mm)(1) of the Small Business Act (15 
U.S.C. 638(mm)(1)) is amended--
            (1) in subparagraph (J), by striking ``and'' at the end;
            (2) in subparagraph (K), by striking the period at the end 
        and inserting ``; and''; and
            (3) by adding at the end the following new subparagraph:
                    ``(L) providing small business concerns with 
                assistance applying to the SBIR program or STTR program 
                of the Federal agency, including providing such 
                assistance to carry out the policy directive required 
                under paragraphs (2)(F) or (5) of subsection (j) and 
                subsection (p)(2)(H) to increase the participation of 
                States with respect to which a low level of SBIR or 
                STTR awards have historically been awarded.''.
    (b) Enhanced Minority Institution Participation.--
            (1) SBIR.--Section 9(j) of the Small Business Act (15 
        U.S.C. 638(j)), is amended by adding at the end the following 
        new paragraph:
            ``(5) Increased outreach requirements.--Not later than 90 
        days after the date of the enactment of this paragraph, the 
        Administration shall modify the policy directives issued 
        pursuant to this subsection to require enhanced outreach 
        efforts to increase the participation of individuals conducting 
        research at minority institutions (as defined in section 365 of 
        the Higher Education Act of 1965 (20 U.S.C. 1067k)) and 
        Hispanic-serving institutions (as defined in section 502(a) of 
        such Act (20 U.S.C. 1101a(a))) in SBIR programs.''.
            (2) STTR.--Section 9(p)(2) of the Small Business Act (15 
        U.S.C. 638(p)(2)) is amended--
                    (A) in subparagraph (F), by striking ``and'' at the 
                end;
                    (B) in subparagraph (G)(iii), by striking the 
                period at the end and inserting ``; and''; and
                    (C) by adding at the end the following new 
                subparagraph:
                    ``(H) procedures for outreach efforts to increase 
                the participation of individuals conducting research at 
                minority institutions (as defined in section 365 of the 
                Higher Education Act of 1965 (20 U.S.C. 1067k)) and 
                Hispanic-serving institutions (as defined in section 16 
                502(a) of such Act (20 U.S.C. 1101a(a))) in STTR 
                programs.''.

SEC. 203. TECHNICAL AND BUSINESS ASSISTANCE IMPROVEMENTS.

    Section 9(q) of the Small Business Act (15 U.S.C. 638(q)) is 
amended by--
            (1) in paragraph (1), in the matter preceding subparagraph 
        (A)--
                    (A) by striking ``may enter into an agreement with 
                1 or more vendors selected under paragraph (2)(A) to 
                provide small business concerns engaged in SBIR or STTR 
                projects with'' and inserting ``shall authorize 
                recipients of awards under the SBIR program or the STTR 
                program to select, if desired, commercialization 
                activities provided under subparagraph (A), (B), or (C) 
                of paragraph (3) to provide such recipients with''; and
                    (B) by inserting ``cybersecurity assistance,'' 
                after ``market validation,'';
            (2) in paragraph (3)--
                    (A) by striking subparagraphs (A) and (B) and 
                inserting the following:
                    ``(A) Phase i.--A Federal agency described in 
                paragraph (1) shall authorize a recipient of a Phase I 
                SBIR or STTR award to use not more than $6,500 per 
                project, in addition to the amount of the award of the 
                recipient as determined appropriate by the head of the 
                Federal agency, for the services described in paragraph 
                (1)--
                            ``(i) provided through a vendor selected 
                        under paragraph (2)(A);
                            ``(ii) provided, to the extent authorized 
                        by the Federal agency, through a vendor other 
                        than a vendor selected under paragraph (2)(A); 
                        or
                            ``(iii) provided through any combination of 
                        clauses (i) and (ii).
                    ``(B) Phase ii.--A Federal agency described in 
                paragraph (1) shall authorize a recipient of a Phase II 
                SBIR or STTR award to use not more than $50,000 per 
                project, included as part of the award of the recipient 
                or in addition to the amount of the award of the 
                recipient as determined appropriate by the head of the 
                Federal agency, for the services described in paragraph 
                (1)--
                            ``(i) provided through a vendor selected 
                        under paragraph (2)(A);
                            ``(ii) provided through a vendor other than 
                        a vendor selected under paragraph (2)(A); or
                            ``(iii) provided through any combination of 
                        clauses (i) and (ii).''; and
                    (B) in subparagraph (E), by inserting ``Phase I 
                or'' before ``Phase II''; and
            (3) by adding at the end the following new paragraph:
            ``(5) I-corps participation.--
                    ``(A) In general.--Each Federal agency that is 
                required to conduct an SBIR or STTR program with an 
                Innovation Corps program (established under section 601 
                of the American Innovation and Competitiveness Act (42 
                U.S.C. 1862s-8); commonly known as `I-Corps') shall--
                            ``(i) provide an option for participation 
                        in an I-Corps teams course, I-Corps bootcamp, 
                        or another equivalent training program to 
                        recipients of an award under the SBIR or STTR 
                        program; and
                            ``(ii) authorize the recipients described 
                        in clause (i) to use amounts authorized under 
                        this subsection to participate in the I-Corps 
                        teams course, I-Corps bootcamp, or another 
                        equivalent training program.
                    ``(B) Cost of participation.--The cost of 
                participation by a recipient described in subparagraph 
                (A)(i) in an I-Corps course, I-Corps bootcamp, or 
                another equivalent training program may be provided 
                by--
                            ``(i) an I-Corps team grant;
                            ``(ii) funds awarded to the recipient under 
                        this subsection;
                            ``(iii) the participating teams or other 
                        sources as appropriate; or
                            ``(iv) any combination of sources described 
                        in clauses (i), (ii), and (iii).''.

SEC. 204. IMPROVEMENTS TO WEBSITE RELATING TO THE SBIR PROGRAM OR STTR 
              PROGRAM.

    (a) SBIR Program.--Section 9(g)(8) of the Small Business Act (15 
U.S.C. 638(g)(8)) is amended--
            (1) in subparagraph (B), by striking ``and'' at the end;
            (2) in subparagraph (C), by adding ``and'' at the end; and
            (3) by adding at the end the following new subparagraph:
                    ``(D) for each research institution subcontracted 
                by a recipient of a Phase I, Phase II, or Phase III 
                SBIR award to perform research or research and 
                development with respect to such award--
                            ``(i) the name and location of such 
                        research institution;
                            ``(ii) whether such research institution 
                        is--
                                    ``(I) an institution of higher 
                                education (as such term is defined in 
                                section 101 of the Higher Education Act 
                                of 1965 (20 U.S.C. 1001));
                                    ``(II) a nonprofit institution (as 
                                defined in section 4 of the Stevenson-
                                Wydler Technology Innovation Act of 
                                1980 (15 U.S.C. 3703)) other than an 
                                institution of higher education; or
                                    ``(III) a federally funded research 
                                and development center (as identified 
                                by the National Scientific Foundation 
                                in accordance with the Federal 
                                Acquisition Regulation); and
                            ``(iii) for each research institution that 
                        is an institution of higher education, whether 
                        such research institution is--
                                    ``(I) a part B institution (as 
                                defined in section 322 the Higher 
                                Education Act of 1965 (20 U.S.C. 
                                1061));
                                    ``(II) a Hispanic-serving 
                                institution (as defined in section 502 
                                of such Act (20 U.S.C. 1101a));
                                    ``(III) a Tribal College or 
                                University (as defined in section 316 
                                of such Act (20 U.S.C. 1059c));
                                    ``(IV) an Alaska Native-serving 
                                institution or a Native Hawaiian-
                                serving institution (as defined in 
                                section 317(b) of such Act (20 U.S.C. 
                                1059d(b)));
                                    ``(V) a Predominantly Black 
                                Institution (as defined in section 
                                371(c) of such Act (20 U.S.C. 
                                1067q(c)));
                                    ``(VI) an Asian American and Native 
                                American Pacific Islander-serving 
                                institution (as defined in section 
                                371(c) of such Act (20 U.S.C. 10 
                                1067q(c))); or
                                    ``(VII) a Native American-serving 
                                nontribal institution (as defined in 
                                section 371(c) of such Act (20 U.S.C. 
                                1067q(c)));''.
    (b) STTR Program.--Section 9(o)(9) of the Small Business Act (15 
U.S.C. 638(o)(9)) is amended--
            (1) in subparagraph (B), by striking ``and'' at the end;
            (2) in subparagraph (C), by adding ``and'' at the end; and
            (3) by adding at the end the following new subparagraph:
                    ``(D) for each research institution subcontracted 
                by a recipient of a Phase I or Phase II STTR award to 
                perform research or research and development with 
                respect to such award--
                            ``(i) the name and location of such 
                        research institution;
                            ``(ii) whether such research institution 
                        is--
                                    ``(I) an institution of higher 
                                education (as such term is defined in 
                                section 101 of the Higher Education Act 
                                of 1965 (20 U.S.C. 1001));
                                    ``(II) a nonprofit institution (as 
                                defined in section 4 of the Stevenson-
                                Wydler Technology Innovation Act of 
                                1980 (15 U.S.C. 3703)) other than an 
                                institution of higher education; or
                                    ``(III) a federally funded research 
                                and development center (as identified 
                                by the National Scientific Foundation 
                                in accordance with the Federal 
                                Acquisition Regulation); and
                            ``(iii) for each research institution that 
                        is an institution of higher education, whether 
                        such research institution is--
                                    ``(I) a part B institution (as 
                                defined in section 322 the Higher 
                                Education Act of 1965 (20 U.S.C. 
                                1061));
                                    ``(II) a Hispanic-serving 
                                institution (as defined in section 502 
                                of such Act (20 U.S.C. 1101a));
                                    ``(III) a Tribal College or 
                                University (as defined in section 316 
                                of such Act (20 U.S.C. 1059c));
                                    ``(IV) an Alaska Native-serving 
                                institution or a Native Hawaiian-
                                serving institution (as defined in 
                                section 317(b) of such Act (20 U.S.C. 
                                1059d(b)));
                                    ``(V) a Predominantly Black 
                                Institution (as defined in section 
                                371(c) of such Act (20 U.S.C. 
                                1067q(c)));
                                    ``(VI) an Asian American and Native 
                                American Pacific Islander-serving 
                                institution (as defined in section 
                                371(c) of such Act (20 U.S.C. 25 
                                1067q(c))); or
                                    ``(VII) a Native American-serving 
                                nontribal institution (as defined in 
                                section 371(c) of such Act (20 U.S.C. 
                                1067q(c)));''.
    (c) Database Reporting.--
            (1) In general.--Section 9(k) of the Small Business Act (15 
        U.S.C. 638(k)) is amended--
                    (A) by striking ``Phase I or Phase II SBIR or 
                STTR'' each place it appears and inserting ``Phase I, 
                Phase II, or Phase III SBIR or STTR'';
                    (B) in paragraph (1)(B)--
                            (i) in clause (ii), by striking ``and'' at 
                        the end;
                            (ii) in clause (iii), by adding ``and'' at 
                        the end; and
                            (iii) by adding at the end the following 
                        new clause:
                            ``(iv) information regarding any research 
                        institution subcontracted by such small 
                        business concern to perform research or 
                        research and development with respect to such 
                        award, including--
                                    ``(I) the name and location of such 
                                research institution;
                                    ``(II) whether such research 
                                institution is--
                                            ``(aa) an institution of 
                                        higher education (as such term 
                                        is defined in section 101 of 
                                        the Higher Education Act of 
                                        1965 (20 U.S.C. 1001));
                                            ``(bb) a nonprofit 
                                        institution (as defined in 
                                        section 4 of the Stevenson-
                                        Wydler Technology Innovation 
                                        Act of 1980 (15 U.S.C. 3703)) 
                                        other than an institution of 
                                        higher education; or
                                            ``(cc) a federally funded 
                                        research and development center 
                                        (as identified by the National 
                                        Scientific Foundation in 
                                        accordance with the Federal 
                                        Acquisition Regulation); and
                                    ``(III) for each research 
                                institution that is an institution of 
                                higher education (as such term is 
                                defined in section 101 of the Higher 
                                Education Act of 1965 (20 U.S.C. 
                                1001)), whether such research 
                                institution is an institution described 
                                in paragraphs (1) through (7) of 
                                section 371(a) of such Act (20 U.S.C. 
                                1067q(a));'';
                    (C) in paragraph (2)--
                            (i) in subparagraph (A), by striking 
                        ``Phase I or Phase II of the SBIR program or 
                        the STTR'' and inserting ``Phase I, Phase II, 
                        or Phase III of the SBIR program or the STTR'';
                            (ii) in subparagraph (F), by striking 
                        ``and'' at the end;
                            (iii) in subparagraph (G)(ii), by striking 
                        the period at the end and inserting ``; and''; 
                        and
                            (iv) by adding at the end the following new 
                        subparagraph:
                    ``(H) contains information for each research 
                institution subcontracted by a recipient of a Phase I, 
                Phase II, or Phase III STTR or SBIR award to perform 
                research or research and development with respect to 
                such award, including--
                            ``(i) the name and location of such 
                        research institution;
                            ``(ii) whether such research institution 
                        is--
                                    ``(I) an institution of higher 
                                education (as such term is defined in 
                                section 101 of the Higher Education Act 
                                of 1965 (20 U.S.C. 1001));
                                    ``(II) a nonprofit institution (as 
                                defined in section 4 of the Stevenson-
                                Wydler Technology Innovation Act of 
                                1980 (15 U.S.C. 3703)) other than an 
                                institution of higher education; or
                                    ``(III) a federally funded research 
                                and development center (as identified 
                                by the National Scientific Foundation 
                                in accordance with the Federal 
                                Acquisition Regulation); and
                            ``(iii) for each research institution that 
                        is an institution of higher education (as such 
                        term is defined in section 101 of the Higher 
                        Education Act of 1965 (20 U.S.C. 1001)), 
                        whether such research institution is an 
                        institution described in paragraphs (1) through 
                        (7) of section 371(a) of such Act (20 U.S.C. 
                        1067q(a)).''; and
                    (D) in paragraph (3)(C), by striking ``Phase I or 
                Phase II award'' each place it appears and inserting 
                ``Phase I, Phase II, or Phase III award''.
            (2) Database update deadline.--Notwithstanding paragraphs 
        (1) or (2) of section 9(k) of the Small Business Act (15 U.S.C. 
        638(k)), the Administrator shall, not later than 1 year after 
        the date of the enactment of this Act, include--
                    (A) in the database described such paragraph (1) 
                the information required under such paragraph, as 
                amended by subparagraphs (A) and (B) of paragraph (1) 
                of this Act; and
                    (B) in the database described such paragraph (2) 
                the information required under such paragraph, as 
                amended by subparagraphs (A) and (C) of paragraph (1) 
                of this Act.

               TITLE III--COMMERCIALIZATION IMPROVEMENTS

SEC. 301. PHASE III AWARD EDUCATION.

    Section 9(r) of the Small Business Act (15 U.S.C. 638(r)) is 
amended by adding at the end the following new paragraph:
            ``(5) Workforce training.--
                    ``(A) In general.--The Administrator, in 
                coordination with the Secretary of Defense, the 
                Administrator of the General Services Administration, 
                and the head of any such other Federal agency that the 
                Administrator determines appropriate, shall establish 
                training activities for contracting officers and agency 
                acquisition workforce of Federal agencies to ensure 
                that such individuals are fully aware of all aspects of 
                Phase III acquisitions under the SBIR and STTR 
                programs, as applicable.
                    ``(B) Training topics.--The training activities 
                required under subparagraph (A) shall include training 
                on--
                            ``(i) the missions, goals, and authorities 
                        of the SBIR and STTR programs;
                            ``(ii) the use of Phase III agreement; and
                            ``(iii) Phase III data rights.
                    ``(C) Definitions.--In this paragraph:
                            ``(i) Agency acquisition workforce.--The 
                        term `agency acquisition workforce' means the 
                        employees of a Federal agency that have 
                        procurement or acquisition responsibilities, 
                        including--
                                    ``(I) employees described in 
                                section 1703 of title 41, United States 
                                Code; and
                                    ``(II) individuals that are part of 
                                the acquisition workforce (as such term 
                                is defined in section 101(a) of title 
                                10, United States Code).
                            ``(ii) Phase iii acquisition.--The term 
                        `Phase III acquisition' means the acquisition 
                        of a good or service from a participant in 
                        Phase III that such participant has 
                        commercialized or is seeking to commercialize 
                        as such a participant.''.

SEC. 302. REPORT ON DOD DENIALS OF PHASE III.

    Section 9(r) of the Small Business Act (15 U.S.C. 638(r)), as 
amended by section 301, is further amended by adding at the end the 
following new paragraph:
            ``(6) Reporting.--Not later than 30 days after the date on 
        which the Department of Defense denies a small business concern 
        Phase III agreement, the Secretary of Defense shall report that 
        denial to the Administrator.''.

                        TITLE IV--PILOT PROGRAMS

SEC. 401. EXTEND AND MODIFY ASSISTANCE FOR ADMINISTRATIVE, OVERSIGHT, 
              AND CONTRACT PROCESSING COSTS.

    (a) In General.--Section 9(mm) of the Small Business Act (15 U.S.C. 
638(mm)), as amended by section 202, is further amended--
            (1) by designating the text of paragraph (1) as 
        subparagraph (A); and
            (2) in paragraph (1)--
                    (A) by redesignating subparagraphs (A) through (L) 
                as clauses (i) through (xii), respectively;
                    (B) by striking ``September 30, 2025'' and 
                inserting ``September 30, 2030'';
                    (C) by striking ``3 percent'' and inserting ``3.3 
                percent''; and
                    (D) by adding at the end the following new 
                subparagraph:
                    ``(B) Transfer of funds.--
                            ``(i) In general.--Not later than 2 months 
                        after the date of the enactment of an Act 
                        providing appropriations for the Department of 
                        Defense, the Department of Energy, the 
                        Department of Health and Human Services, the 
                        National Aeronautics and Space Administration, 
                        or the National Science Foundation, the head of 
                        each such entity for which such Act provided 
                        appropriations shall transfer not less than 10 
                        percent of the funds described under 
                        subparagraph (A) to the Administrator to 
                        increase the resources of the Administration 
                        for administering the SBIR and STTR programs.
                            ``(ii) Fund use limits.--None of the funds 
                        transferred under clause (i) may be used for or 
                        with respect to any program established under 
                        the Small Business Investment Act of 1958 (15 
                        U.S.C. 661 et seq.).''.
    (b) Increasing Participation of Underserved Populations in the SBIR 
and STTR Programs.--
            (1) In general.--Section 9(mm)(2) of the Small Business Act 
        (15 U.S.C. 638(mm)(2)) is amended to read as follows:
            ``(2) Outreach and technical assistance.--A Federal agency 
        participating in the program under this subsection may use a 
        portion of the funds authorized for uses under paragraph (1) to 
        carry out the policy directive required under subsection 
        (j)(2)(F) and to increase the participation of States with 
        respect to which a low level of SBIR awards have historically 
        been awarded.''.
            (2) Conforming amendment.--Section 9(mm)(6) of the Small 
        Business Act (15 U.S.C. 638(mm)(6)) is amended by striking 
        ``including'' and all that follows and inserting the following: 
        ``including--
                    ``(A) the use of funds transferred under 
                subparagraph (B) of paragraph (1) for the uses 
                authorized in such subparagraph and to achieve the 
                objectives of paragraph (2); and
                    ``(B) the use of other funds under this subsection 
                to achieve such objectives.''.

SEC. 402. EXTEND AND EXPAND THE DIRECT TO PHASE II AUTHORITY.

    Section 9 of the Small Business Act (15 U.S.C. 638) is amended--
            (1) by designating the text of subsection (cc) as paragraph 
        (1); and
            (2) in subsection (cc)--
                    (A) by striking ``2012 through 2025'' and inserting 
                ``2012 through 2030'';
                    (B) by striking ``the National Institutes of 
                Health, the Department of Defense, and the Department 
                of Education may each'' and inserting ``each Federal 
                agency required to carry out an SBIR program may''; and
                    (C) by adding at the end the following new 
                paragraphs:
            ``(2) Limitation.--The total value of awards provided by a 
        Federal agency under this subsection in a fiscal year shall 
        be--
                    ``(A) except as provided in subparagraph (B), not 
                more than 10 percent of the total funds allocated to 
                the SBIR program of the Federal agency during that 
                fiscal year; and
                    ``(B) with respect to the National Institutes of 
                Health, not more than 15 percent of the total funds 
                allocated to the SBIR program of the National 
                Institutes of Health during that fiscal year.
            ``(3) Report.--Each head of a Federal agency that exercises 
        the authority under this subsection shall include in the next 
        report submitted by such Federal agency under (g)(9) following 
        such exercise the number and amount of awards provided under 
        this subsection by such Federal agency in the period covered by 
        such report.''.

SEC. 403. ACCELERATION OF DOD SBIR AND STTR AWARDS.

    (a) In General.--Section 9(hh) of the Small Business Act (15 U.S.C. 
638(hh)) is amended--
            (1) in the heading, by inserting ``and Simplified DoD 
        Forms'' after ``of Funding''; and
            (2) by amending paragraph (2) to read as follows:
            ``(2) Accelerate department of defense sbir and sttr 
        awards.--
                    ``(A) In general.--Notwithstanding subsections 
                (g)(4) and (o)(4), the Under Secretary of Defense for 
                Research and Engineering, acting through the Director 
                of Defense Procurement and Acquisition Policy of the 
                Department of Defense, shall develop simplified and 
                standardized procedures and model contracts throughout 
                the Department of Defense for Phase I, Phase II, and 
                Phase III SBIR awards that, to the extent practicable, 
                reduce the amount of time between the provision of 
                notice of such awards and the subsequent release of 
                funding with respect to the awards to 90 days.
                    ``(B) Consultation.--In carrying out subparagraph 
                (A), the Director of Defense Procurement and 
                Acquisition Policy of the Department of Defense shall 
                consult with the Director of the Office of Small 
                Business Programs of the Department of Defense.''.
    (b) Timing.--The Under Secretary of Defense for Research and 
Engineering, acting through the Director of Defense Procurement and 
Acquisition Policy of the Department of Defense, shall carry out 
section 9(hh)(2) of the Small Business Act (15 U.S.C. 638(hh)(2)), as 
amended by subsection (a), not later than 1 year after the date of the 
enactment of this Act.

SEC. 404. EXTEND COMMERCIALIZATION READINESS PROGRAM FOR CIVILIAN 
              AGENCIES.

    Section 9(gg) of the Small Business Act (15 U.S.C. 638(gg)) is 
amended--
            (1) in the heading, by striking ``Pilot'' and inserting 
        ``Civilian Agencies Commercialization Readiness'';
            (2) by striking ``pilot program'' each place it appears and 
        inserting ``covered program''; and
            (3) by striking ``fiscal year 2025'' and inserting ``fiscal 
        year 2030''.

SEC. 405. EXTEND AND EXPAND PHASE 0 PROOF OF CONCEPT PARTNERSHIP 
              PROGRAM.

    Section 9(jj) of the Small Business Act (15 U.S.C. 638(jj)) is 
amended--
            (1) in the subsection heading, by striking ``Pilot'';
            (2) in paragraph (1)--
                    (A) by striking ``Director of the National 
                Institutes of Health'' and inserting ``head of a 
                covered agency'';
                    (B) by striking ``pilot program'' and inserting 
                ``program'';
                    (C) by striking ``the Director shall award'' and 
                inserting ``the head of each covered agency shall 
                make''; and
                    (D) by striking ``grants'' each place it appears 
                and inserting ``awards'';
            (3) by amending paragraph (2) to read as follows:
            ``(2) Definitions.--In this subsection--
                    ``(A) the term `covered agency' means the National 
                Institutes of Health, the National Science Foundation, 
                the National Aeronautics and Space Administration, and 
                the Department of Energy;
                    ``(B) the term `Phase 0 program' means a Proof of 
                Concept Partnership program; and
                    ``(C) the term `qualifying institution' mean--
                            ``(i) a university or other research 
                        institution that participates in the STTR 
                        program of the National Institutes of Health, 
                        National Science Foundation, National 
                        Aeronautics and Atmospheric Administration, 
                        Department of Energy, or Department of Defense; 
                        or
                            ``(ii) another U.S.-based organization with 
                        relevant expertise and capability in technology 
                        translation, technology entrepreneurship, or 
                        technical research and development.'';
            (4) in paragraph (3)--
                    (A) by amending subparagraph (A) to read as 
                follows:
                    ``(A) In general.--A Proof of Concept Partnership 
                shall be set up by a qualifying institution to make 
                awards to individual researchers in support of proof of 
                concept work and commercialization mentoring needed to 
                translate promising research projects and technologies 
                into a viable company.''; and
                    (B) in subparagraph (B)--
                            (i) in the matter preceding clause (i)--
                                    (I) by striking ``Proof of Concept 
                                Partnership program'' and inserting 
                                ``Phase 0 program''; and
                                    (II) by striking ``award grants'' 
                                and inserting ``make awards'';
                            (ii) by redesignating clause (ii) as clause 
                        (iv); and
                            (iii) by inserting after clause (i) the 
                        following new clauses:
                            ``(ii) Eligible individual researchers 
                        include faculty members, university staff, 
                        industrial scientists, owners of small business 
                        concerns, postdoctoral scholars, and students.
                            ``(iii) Awards may support technical 
                        validations, market research, entrepreneurial 
                        training, clarifying intellectual property 
                        rights position and strategy, and investigating 
                        commercial or business opportunities.'';
            (5) in paragraph (4)--
                    (A) in subparagraph (A)--
                            (i) by striking ``The Director'' and 
                        inserting ``The head of a covered agency''; and
                            (ii) by striking ``$1,000,000'' and 
                        inserting ``$1,500,000''; and
                    (B) in subparagraph (B)--
                            (i) in the matter preceding clause (i), by 
                        striking ``In determining'' and all that 
                        follows through ``qualifying institutions--'' 
                        and inserting the following: ``In determining 
                        which qualifying institutions receive awards 
                        under the Phase 0 program, the head of a 
                        covered agency shall consider, in addition to 
                        any other criteria such head determines 
                        necessary, the extent to which the qualifying 
                        institution--'';
                            (ii) by amending clause (i) to read as 
                        follows:
                            ``(i) have an established and proven record 
                        of working in the areas of technology transfer, 
                        technology or commercialization, 
                        entrepreneurial development, or another related 
                        innovation practice;'';
                            (iii) in clause (iv), by inserting 
                        ``academic,'' after ``industry,''; and
                            (iv) by amending clause (v) to read as 
                        follows:
    ``(v) have demonstrated a plan for encouraging participation of 
small business concerns owned and controlled by socially and 
economically disadvantaged individuals and small business concerns 
owned and controlled by women;'';
            (6) in paragraph (6)--
                    (A) in the matter preceding subparagraph (A)--
                            (i) by striking ``The Director'' and 
                        inserting ``The head of each covered agency''; 
                        and
                            (ii) by striking ``pilot program'' and 
                        inserting ``Phase 0 program implemented by such 
                        head'';
                    (B) in subparagraph (B), by striking ``the pilot 
                program'' and inserting ``such Phase 0 program'';
                    (C) in subparagraph (C), by striking ``the pilot 
                program'' and inserting ``such Phase 0 program'';
                    (D) in subparagraph (D), by striking ``the pilot 
                program'' and inserting ``such Phase 0 program''; and
                    (E) in subparagraph (E)--
                            (i) by striking ``the program's 
                        effectiveness'' and inserting ``the 
                        effectiveness of such Phase 0 program''; and
                            (ii) by inserting after ``supporting data'' 
                        the following: ``, including how the program 
                        contributes to the implementation of the policy 
                        directive required under subsection 
                        (j)(2)(F)''; and
            (7) by striking paragraph (7).

SEC. 406. EXTEND COMMERCIALIZATION ASSISTANCE PROGRAMS.

    Section 9(uu) of the Small Business Act (15 U.S.C. 638(uu)) is 
amended--
            (1) in the heading, by striking ``Pilot'';
            (2) by striking ``subsequent Phase II'' each place it 
        appears and inserting ``third Phase II'';
            (3) in paragraph (1), by amending the heading to read as 
        follows: ``Program implementations'';
            (4) by striking ``pilot'' each place it appears;
            (5) in paragraph (3), by striking ``September 30, 2025'' 
        and inserting ``September 30, 2030'';
            (6) in paragraph (5)(B)--
                    (A) by striking ``An eligible entity'' and 
                inserting the following:
                            ``(i) In general.--An eligible entity''; 
                        and
                    (B) by adding at the end the following new clause:
                            ``(ii) Certain agency funds.--An eligible 
                        entity may use funds received from Federal 
                        agencies, other than funds received under an 
                        SBIR or STTR program, to meet the matching 
                        requirement of subparagraph (A).'';
            (7) by redesignating paragraph (10) as paragraph (11);
            (8) by inserting after paragraph (9) the following new 
        paragraph:
            ``(10) Timing.--An eligible entity may apply for and 
        receive a third Phase II award any time after the eligible 
        entity receives an additional Phase II SBIR award under 
        subsection (ff), including after the completion of such 
        additional Phase II SBIR award.''; and
            (9) in subparagraph (E) of paragraph (11), as so 
        redesignated, in the heading, by striking ``subsequent phase 
        ii'' and inserting ``third phase ii''.

           TITLE V--OVERSIGHT AND SIMPLIFICATION INITIATIVES

SEC. 501. ANNUAL REPORTS TO CONGRESS.

    Section 9 of the Small Business Act (15 U.S.C. 638) is amended--
            (1) in subsection (g)(9)--
                    (A) by inserting ``Congress,'' after ``SBIR program 
                to'';
                    (B) by inserting a comma after ``Administration''; 
                and
                    (C) by inserting after ``Technology Policy'' the 
                following: ``and publish such report on the website of 
                such Federal agency as soon as practicable'';
            (2) in subsection (o)(10)--
                    (A) by inserting ``Congress,'' after ``STTR program 
                to'';
                    (B) by inserting a comma after ``Administration''; 
                and
                    (C) by inserting after ``Technology Policy'' the 
                following: ``and publish such report on the website of 
                such Federal agency as soon as practicable''; and
            (3) in subsection (gg)(6), by inserting ``Congress and'' 
        after ``agency to''.

SEC. 502. COMPTROLLER GENERAL REPORTS ON FRAUD CONTROLS.

    (a) Report on Study With Respect to Venture Capital Operating 
Company, Hedge Fund, and Private Equity Firm Involvement.--Section 5142 
of the National Defense Authorization Act for Fiscal Year 2012 (15 
U.S.C. 638a) is amended by inserting ``through December 31, 2027'' 
after ``every 3 years thereafter''.
    (b) Report on Program To Fight Fraud, Waste, and Abuse.--Section 
5143(b) of the National Defense Authorization Act for Fiscal Year 2012 
(15 U.S.C. 638b(b)) is amended by inserting ``through December 31, 
2027,'' after ``every 4 years thereafter''.

SEC. 503. COMPTROLLER GENERAL REPORT ON DIVERSIFICATION AND 
              COMMERCIALIZATION.

    (a) In General.--Not later than three years 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 of the House of 
Representatives a report on the effectiveness of the SBIR and STTR 
programs with respect to diversification of participants and 
commercialization.
    (b) Contents.--The report shall include, to the extent practicable, 
an assessment of--
            (1) the demographics of small business concerns receiving 
        SBIR or STTR awards, including new entrants and 
        underrepresented groups;
            (2) the efforts of participating agencies to broaden 
        representation and participation of new entrants and 
        underrepresented groups in the SBIR and STTR programs;
            (3) how participating agencies develop solicitation topics 
        and attract applicants;
            (4) the efforts of participating agencies to support 
        technology commercialization;
            (5) the extent to which the SBIR and STTR awards made by 
        each participating agency align with the research priorities 
        and technology needs of that participating agency; and
            (6) such other matters as the Comptroller General, in 
        consultation with the Committee on Small Business and 
        Entrepreneurship of the Senate and the Committee on Small 
        Business of the House of Representatives, determines 
        appropriate.
    (c) Definitions.--In this section:
            (1) Federal agency; sbir; sttr.--The terms ``Federal 
        agency'', ``SBIR'', and ``STTR'' have the meanings given such 
        terms in section 9(e) of the Small Business Act (15 U.S.C. 
        638(e)).
            (2) New entrant.--The term ``new entrant'' means a small 
        business concern that has not previously received an SBIR or 
        STTR award.
            (3) Underrepresented groups.--The term ``underrepresented 
        groups'' means small business concerns located in States with 
        respect to which a low level of SBIR and STTR awards have 
        historically been awarded, small business concerns owned and 
        controlled by women, and small business concerns owned and 
        controlled by socially and economically disadvantaged 
        individuals.
            (4) Participating agency.--The term ``participating 
        agency'' means a Federal agency carrying out an SBIR or STTR 
        program under section 9 of the Small Business Act (15 U.S.C. 
        638).
            (5) Small business concern.--The term ``small business 
        concern'' has the meaning given such term under section 3 of 
        the Small Business Act (15 U.S.C. 632).
            (6) Small business concern owned and controlled by socially 
        and economically disadvantaged individuals; small business 
        concern owned and controlled by women.--The terms ``small 
        business concern owned and controlled by socially and 
        economically disadvantaged individuals'' and ``small business 
        concern owned and controlled by women'' have the meanings given 
        such terms in section 8(d) of the Small Business Act (15 U.S.C. 
        637(d)).

SEC. 504. EXTEND THE REPORT ON AWARD TIMELINESS.

    Section 9(ii)(2)(A) of the Small Business Act (15 U.S.C. 
638(ii)(2)(A)) is amended--
            (1) in the matter preceding clause (i), by striking ``3 
        years'' and inserting ``11 years'';
            (2) in clause (i), by striking ``and'' at the end;
            (3) by redesignating clause (ii) as clause (iii); and
            (4) by inserting after clause (i) the following new clause:
                            ``(ii) provides the average and median 
                        amount of time that each Federal agency with an 
                        SBIR or STTR program takes to review and make a 
                        final decision on proposals submitted under the 
                        program; and''.

SEC. 505. PILOT PROGRAM TO ACCELERATE NATIONAL INSTITUTES OF HEALTH 
              EVALUATION PROCESS.

    (a) In General.--Section 9(hh) of the Small Business Act (15 U.S.C. 
638(hh)) is amended by adding at the end the following new paragraph:
            ``(3) Pilot program to accelerate the national institutes 
        of health sbir and sttr awards.--
                    ``(A) In general.--Not later than 1 year after the 
                date of the enactment of this paragraph, the Director 
                of the National Institutes of Health shall establish a 
                pilot program to reduce the time for awards under the 
                SBIR and STTR programs of the National Institutes of 
                Health.
                    ``(B) Award procedures.--In carrying out the pilot 
                program under subparagraph (A), the Director shall 
                develop simplified and standardized procedures across 
                all relevant awarding offices at the National 
                Institutes of Health and reduce the amount of time 
                between the provision of notice of such awards and the 
                subsequent release of funding with respect to the 
                awards to be as close to 90 days as possible.
                    ``(C) Merit review.--
                            ``(i) In general.--Under the pilot program 
                        under subparagraph (A), the Director of the 
                        National Institutes of Health may, with respect 
                        to awards under the SBIR and STTR programs of 
                        the National Institute of Health, use such peer 
                        review procedures (including consultation with 
                        appropriate scientific experts) as the Director 
                        determines to be appropriate to obtain 
                        assessments of scientific and technical merit 
                        and potential for commercialization.
                            ``(ii) Deemed.--The use of peer review 
                        procedures under clause (i) shall be deemed to 
                        fulfill any requirements applicable to the 
                        award under the SBIR or STTR program of the 
                        National Institute of Health under sections 
                        406(a)(3)(A) and 492 of the Public Health 
                        Service Act (42 U.S.C. 284a(a)(3)(A); 289a).
                    ``(D) Termination.--The pilot program under 
                subparagraph (A) shall terminate on September 30, 
                2030.''.
    (b) Evaluation Report.--Not later than three years after the date 
of enactment of this Act, the Director of the National Institutes of 
Health shall submit to the Committees on Small Business and Science, 
Space, and Technology of the House of Representatives and the Committee 
on Small Business and Entrepreneurship of the Senate an evaluation of 
the pilot program established under paragraph (3) of section 9(hh) of 
the Small Business Act (15 U.S.C. 638(hh)), as added by subsection (a), 
including an analysis of the peer review procedures used under 
subparagraph (C) of such paragraph and the effects on award times.

SEC. 506. CODIFYING SAFEGUARDS FOR SMALL BUSINESS CONCERNS MAJORITY-
              OWNED BY VENTURE CAPITAL OPERATING COMPANIES, HEDGE 
              FUNDS, OR PRIVATE EQUITY FIRMS.

    (a) In General.--Section 9(dd) of the Small Business Act (15 U.S.C. 
638(dd)) is amended--
            (1) in paragraph (6)(B), by striking ``If a Federal'' and 
        inserting ``Except as provided in paragraph (8), if a 
        Federal''; and
            (2) by adding at the end the following new paragraph:
            ``(8) Participation limits.--
                    ``(A) In general.--A small business concern that is 
                majority-owned by multiple venture capital operating 
                companies, hedge funds, or private equity firms is 
                ineligible to receive an award under any SBIR program 
                if the Administrator determines that such small 
                business concern is, or is owned and controlled in 
                majority part by, a covered foreign entity.
                    ``(B) Ownership determination.--In determining 
                whether a small business concern is ineligible to 
                receive an award under any SBIR program under 
                subparagraph (A), the Administrator shall consider 
                whether the small business concern is a direct or 
                indirect subsidiary of a foreign-owned firm.
                    ``(C) Size standards.--The Administrator shall 
                establish size standards for small business concerns 
                seeking to participate in an SBIR program solely under 
                the authority under this section.
                    ``(D) Definitions.--In this paragraph:
                            ``(i) Covered foreign entity.--the term 
                        `covered foreign entity'--
                                    ``(I) means--
                                            ``(aa) a foreign entity of 
                                        concern;
                                            ``(bb) a government or 
                                        political party of a foreign 
                                        country of concern;
                                            ``(cc) a natural person who 
                                        is not a lawful permanent 
                                        resident of the United States, 
                                        citizen of the United States, 
                                        or any other protected 
                                        individual (as such term is 
                                        defined in section 274B(a)(3) 
                                        of the Immigration and 
                                        Nationality Act (8 U.S.C. 
                                        1324b(a)(3))); or
                                            ``(dd) a partnership, 
                                        association, corporation, 
                                        organization, or other 
                                        combination of persons 
                                        organized under the laws of or 
                                        having its principal place of 
                                        business in a foreign country 
                                        of concern; and
                                    ``(II) includes--
                                            ``(aa) any person owned by, 
                                        controlled by, or subject to 
                                        the jurisdiction or direction 
                                        of a an entity listed in 
                                        subclause (I);
                                            ``(bb) any person, wherever 
                                        located, who acts as an agent, 
                                        representative, or employee of 
                                        an entity listed in subclause 
                                        (I);
                                            ``(cc) any person who acts 
                                        in any other capacity at the 
                                        order, request, or under the 
                                        direction or control, of an 
                                        entity listed in subclause (I), 
                                        or of a person whose activities 
                                        are directly or indirectly 
                                        supervised, directed, 
                                        controlled, financed, or 
                                        subsidized in whole or in 
                                        majority part by an entity 
                                        listed in subclause (I);
                                            ``(dd) any person who 
                                        directly or indirectly through 
                                        any contract, arrangement, 
                                        understanding, relationship, or 
                                        otherwise, owns 25 percent or 
                                        more of the equity interests of 
                                        an entity listed in subclause 
                                        (I);
                                            ``(ee) any person with 
                                        significant responsibility to 
                                        control, manage, or direct an 
                                        entity listed in subclause (I);
                                            ``(ff) any person, wherever 
                                        located, who is a citizen or 
                                        resident of a country 
                                        controlled by an entity listed 
                                        in subclause (I); or
                                            ``(gg) any corporation, 
                                        partnership, association, or 
                                        other organization organized 
                                        under the laws of a country 
                                        controlled by an entity listed 
                                        in subclause (I).
                            ``(ii) Foreign entity of concern.--The term 
                        `foreign entity of concern' means a foreign 
                        entity that is--
                                    ``(I) designated as a foreign 
                                terrorist organization by the Secretary 
                                of State under section 219(a) of the 
                                Immigration and Nationality Act (8 
                                U.S.C. 1189(a));
                                    ``(II) included on the list of 
                                specially designated nationals and 
                                blocked persons maintained by the 
                                Office of Foreign Assets Control of the 
                                Department of the Treasury (commonly 
                                known as the SDN list);
                                    ``(III) owned by, controlled by, or 
                                subject to the jurisdiction or 
                                direction of a government of a foreign 
                                country that is a covered nation (as 
                                such term is defined in section 4872 of 
                                title 10, United States Code);
                                    ``(IV) alleged by the Attorney 
                                General to have been involved in 
                                activities for which a conviction was 
                                obtained under--
                                            ``(aa) chapter 37 of title 
                                        18, United States Code 
                                        (commonly known as the 
                                        Espionage Act);
                                            ``(bb) section 951 or 1030 
                                        of such title;
                                            ``(cc) chapter 90 of such 
                                        title (commonly known as the 
                                        Economic Espionage Act of 
                                        1996);
                                            ``(dd) the Arms Export 
                                        Control Act (22 U.S.C. 2751 et 
                                        seq.);
                                            ``(ee) section 224, 225, 
                                        226, 227, or 236 of the Atomic 
                                        Energy Act of 1954 (42 U.S.C. 
                                        2274, 2275, 2276, 2277, and 
                                        2284);
                                            ``(ff) the Export Control 
                                        Reform Act of 2018 (50 U.S.C. 
                                        4801 et seq.); or
                                            ``(gg) the International 
                                        Emergency Economic Powers Act 
                                        (50 U.S.C. 1701 et seq.); or
                                    ``(V) determined by the Secretary 
                                of Commerce, in consultation with the 
                                Secretary of Defense and the Director 
                                of National Intelligence, to be engaged 
                                in unauthorized conduct that is 
                                detrimental to the national security or 
                                foreign policy of the United States.''.
    (b) Applicability.--The amendments made by subsection (a) shall 
apply only with respect to awards made under an Small Business 
Innovation Research Program (as defined in section 9(e) of the Small 
Business Act (15 U.S.C. 638(e))) after the date of the enactment of 
this Act.

                      TITLE VI--TECHNICAL CHANGES

SEC. 601. INCLUSION OF SBICS IN THE SBIR AND STTR PROGRAMS.

    Section 9 of the Small Business Act (15 U.S.C. 638) is amended--
            (1) by striking ``or private equity firm investment'' each 
        place that term appears and inserting ``private equity firm, or 
        SBIC investment'';
            (2) by striking ``or private equity firms'' each place that 
        term appears and inserting ``private equity firms, or SBICs'';
            (3) in subsection (e)--
                    (A) in paragraph (18), by striking ``and'' at the 
                end;
                    (B) in paragraph (19), by striking the period at 
                the end and inserting ``; and''; and
                    (C) by adding at the end the following new 
                paragraph:
            ``(15) the term `SBIC' means a small business investment 
        company as defined in section 103 of the Small Business 
        Investment Act of 1958 (15 U.S.C. 662).''; and
            (4) in the heading for subsection (dd), by striking ``or 
        Private Equity Firms'' and inserting ``Private Equity Firms, or 
        SBICs''.

SEC. 602. PHASE III AND SOLE-SOURCE AWARDS.

    Section 9(r) of the Small Business Act (15 U.S.C. 638) is amended--
            (1) in the heading, by inserting ``Sole Source and Other'' 
        after ``Justification for''; and
            (2) in the heading for paragraph (4), by inserting ``sole 
        source and other'' after ``justification for''.
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