II 

111TH CONGRESS 

1ST SESSION S. 1233 

To reauthorize and improve the SBIR and STTR programs, and for other 

purposes. 

IN THE SENATE OF THE UNITED STATES 

JUNE 10, 2009 

Ms. LANDRIEU (for herself and Ms. SNOWE) introduced the following bill; 

which was read twice and referred to the Committee on Small Business 

and Entrepreneurship 

A BILL 

To reauthorize and improve the SBIR and STTR programs, 

and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘SBIR/STTR Reau5 thorization Act of 2009’’. 

6 SEC. 2. TABLE OF CONTENTS. 

7 The table of contents for this Act is as follows: 

Sec. 1. Short title. 

Sec. 2. Table of contents. 

Sec. 3. Definitions. 

TITLE I—REAUTHORIZATION OF THE SBIR AND STTR PROGRAMS 


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Sec. 101. Extension of termination dates. 

Sec. 102. Status of the Office of Technology. 

Sec. 103. SBIR allocation increase. 

Sec. 104. STTR allocation increase. 

Sec. 105. SBIR and STTR award levels. 

Sec. 106. Agency and program collaboration. 

Sec. 107. Elimination of Phase II invitations. 

Sec. 108. Majority-venture investments in SBIR firms. 

Sec. 109. SBIR and STTR special acquisition preference. 

Sec. 110. Collaborating with Federal laboratories and research and development 

centers. 

Sec. 111. Notice requirement. 

TITLE II—OUTREACH AND COMMERCIALIZATION INITIATIVES 

Sec. 201. Rural and State outreach. 

Sec. 202. SBIR–STEM Workforce Development Grant Pilot Program. 

Sec. 203. Technical assistance for awardees. 

Sec. 204. Commercialization pilot program at Department of Defense. 

Sec. 205. Commercialization Pilot Program for civilian agencies. 

Sec. 206. Nanotechnology initiative. 

Sec. 207. Accelerating cures. 

TITLE III—OVERSIGHT AND EVALUATION 

Sec. 301. Streamlining annual evaluation requirements. 

Sec. 302. Data collection from agencies for SBIR. 

Sec. 303. Data collection from agencies for STTR. 

Sec. 304. Public database. 

Sec. 305. Government database. 

Sec. 306. Accuracy in funding base calculations. 

Sec. 307. Continued evaluation by the National Academy of Sciences. 

Sec. 308. Technology insertion reporting requirements. 

Sec. 309. Intellectual property protections. 

TITLE IV—POLICY DIRECTIVES 

Sec. 401. Conforming amendments to the SBIR and the STTR Policy Directives. 

1 SEC. 3. DEFINITIONS. 

2 In this Act— 

3 (1) the terms ‘‘Administration’’ and ‘‘Adminis4 trator’’ mean the Small Business Administration 

5 and the Administrator thereof, respectively; 

6 (2) the terms ‘‘extramural budget’’, ‘‘Federal 

7 agency’’, ‘‘Small Business Innovation Research Pro8 gram’’, ‘‘SBIR’’, ‘‘Small Business Technology 


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1 Transfer Program’’, and ‘‘STTR’’ have the mean2 ings given such terms in section 9 of the Small Busi3 ness Act (15 U.S.C. 638); and 

4 (3) the term ‘‘small business concern’’ has the 

5 same meaning as under section 3 of the Small Busi6 ness Act (15 U.S.C. 632). 

7 TITLE I—REAUTHORIZATION OF 

8 THE SBIR AND STTR PROGRAMS 

9 SEC. 101. EXTENSION OF TERMINATION DATES. 

10 (a) SBIR.—Section 9(m) of the Small Business Act 

11 (15 U.S.C. 638(m)) is amended by striking ‘‘2008’’ and 

12 inserting ‘‘2023’’. 

13 (b) STTR.—Section 9(n)(1)(A) of the Small Busi14 ness Act (15 U.S.C. 638(n)(1)(A)) is amended by striking 

15 ‘‘2009’’ and inserting ‘‘2023’’. 

16 SEC. 102. STATUS OF THE OFFICE OF TECHNOLOGY. 

17 Section 9(b) of the Small Business Act (15 U.S.C. 

18 638(b)) is amended— 

19 (1) in paragraph (7), by striking ‘‘and’’ at the 

20 end; 

21 (2) in paragraph (8), by striking the period at 

22 the end and inserting ‘‘; and’’; 

23 (3) by redesignating paragraph (8) as para24 graph (9); and 

25 (4) by adding at the end the following: 


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1 ‘‘(10) to maintain an Office of Technology to 

2 carry out the responsibilities of the Administration 

3 under this section, which shall be— 

4 ‘‘(A) headed by the Assistant Adminis5 trator for Technology, who shall report directly 

6 to the Administrator; and 

7 ‘‘(B) independent from the Office of Gov8 ernment Contracting of the Administration and 

9 sufficiently staffed and funded to comply with 

10 the oversight, reporting, and public database re11 sponsibilities assigned to the Office of Tech12 nology by the Administrator.’’. 

13 SEC. 103. SBIR ALLOCATION INCREASE. 

14 Section 9(f) of the Small Business Act (15 U.S.C. 

15 638(f)) is amended— 

16 (1) in paragraph (1)— 

17 (A) in the matter preceding subparagraph 

18 (A), by striking ‘‘Each’’ and inserting ‘‘Except 

19 as provided in paragraph (2)(C), each’’; 

20 (B) in subparagraph (B), by striking 

21 ‘‘and’’ at the end; and 

22 (C) by striking subparagraph (C) and in23 serting the following: 

24 ‘‘(C) not less than 2.5 percent of such 

25 budget in each of fiscal years 2009 and 2010; 


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1 ‘‘(D) not less than 2.6 percent of such 

2 budget in fiscal year 2011; 

3 ‘‘(E) not less than 2.7 percent of such 

4 budget in fiscal year 2012; 

5 ‘‘(F) not less than 2.8 percent of such 

6 budget in fiscal year 2013; 

7 ‘‘(G) not less than 2.9 percent of such 

8 budget in fiscal year 2014; 

9 ‘‘(H) not less than 3.0 percent of such 

10 budget in fiscal year 2015; 

11 ‘‘(I) not less than 3.1 percent of such 

12 budget in fiscal year 2016; 

13 ‘‘(J) not less than 3.2 percent of such 

14 budget in fiscal year 2017; 

15 ‘‘(K) not less than 3.3 percent of such 

16 budget in fiscal year 2018; 

17 ‘‘(L) not less than 3.4 percent of such 

18 budget in fiscal year 2019; and 

19 ‘‘(M) not less than 3.5 percent of such 

20 budget in fiscal year 2020 and each fiscal year 

21 thereafter,’’; and 

22 (2) in paragraph (2)— 

23 (A) by redesignating subparagraphs (A) 

24 and (B) as clauses (i) and (ii), respectively, and 

25 adjusting the margins accordingly; 


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1 (B) by striking ‘‘A Federal agency’’ and 

2 inserting the following: 

3 ‘‘(A) IN GENERAL.—A Federal agency’’; 

4 and 

5 (C) by adding at the end the following: 

6 ‘‘(B) DEPARTMENT OF DEFENSE AND DE7 PARTMENT OF ENERGY.—For the Department 

8 of Defense and the Department of Energy, to 

9 the greatest extent practicable, the percentage 

10 of the extramural budget in excess of 2.5 per11 cent required to be expended with small busi12 ness concerns under subparagraphs (D) 

13 through (M) of paragraph (1)— 

14 ‘‘(i) may not be used for new Phase I 

15 or Phase II awards; and 

16 ‘‘(ii) shall be used for activities that 

17 further the readiness levels of technologies 

18 developed under Phase II awards, includ19 ing conducting testing and evaluation to 

20 promote the transition of such technologies 

21 into commercial or defense products, or 

22 systems furthering the mission needs of 

23 the Department of Defense or the Depart24 ment of Energy, as the case may be. 


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1 ‘‘(C) DEPARTMENT OF HEALTH AND

2 HUMAN SERVICES.—Subparagraphs (D) 

3 through (M) of paragraph (1) shall not apply to 

4 the Department of Health and Human Services. 

5 For fiscal year 2009, and each fiscal year there6 after, the Department of Health and Human 

7 Services shall expend with small business con8 cerns not less than 2.5 percent of the extra9 mural budget for research or research and de10 velopment of the Department of Health and 

11 Human Services.’’. 

12 SEC. 104. STTR ALLOCATION INCREASE. 

13 Section 9(n)(1)(B) of the Small Business Act (15 

14 U.S.C. 638(n)(1)(B)) is amended— 

15 (1) in clause (i), by striking ‘‘and’’ at the end; 

16 (2) in clause (ii), by striking ‘‘thereafter.’’ and 

17 inserting ‘‘through fiscal year 2010;’’; and 

18 (3) by adding at the end the following: 

19 ‘‘(iii) 0.4 percent for fiscal years 2011 

20 and 2012; 

21 ‘‘(iv) 0.5 percent for fiscal years 2013 

22 and 2014; and 

23 ‘‘(v) 0.6 percent for fiscal year 2015 

24 and each fiscal year thereafter.’’. 


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1 SEC. 105. SBIR AND STTR AWARD LEVELS. 

2 (a) SBIR ADJUSTMENTS.—Section 9(j)(2)(D) of the 

3 Small Business Act (15 U.S.C. 638(j)(2)(D)) is amend4 ed— 

5 (1) by striking ‘‘$100,000’’ and inserting 

6 ‘‘$150,000’’; and 

7 (2) by striking ‘‘$750,000’’ and inserting 

8 ‘‘$1,000,000’’. 

9 (b) STTR ADJUSTMENTS.—Section 9(p)(2)(B)(ix) of 

10 the Small Business Act (15 U.S.C. 638(p)(2)(B)(ix)) is 

11 amended— 

12 (1) by striking ‘‘$100,000’’ and inserting 

13 ‘‘$150,000’’; and 

14 (2) by striking ‘‘$750,000’’ and inserting 

15 ‘‘$1,000,000’’. 

16 (c) TRIENNIAL ADJUSTMENTS.—Section 9 of the 

17 Small Business Act (15 U.S.C. 638) is amended— 

18 (1) in subsection (j)(2)(D)— 

19 (A) by striking ‘‘5 years’’ and inserting ‘‘3 

20 years’’; and 

21 (B) by striking ‘‘and programmatic consid22 erations’’; and 

23 (2) in subsection (p)(2)(B)(ix) by striking 

24 ‘‘greater or lesser amounts to be awarded at the dis25 cretion of the awarding agency,’’ and inserting ‘‘an 


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1 adjustment for inflation of such amounts once every 

2 3 years,’’. 

3 (d) LIMITATION ON CERTAIN AWARDS.—Section 9 of 

4 the Small Business Act (15 U.S.C. 638) is amended by 

5 adding at the end the following: 

6 ‘‘(aa) LIMITATION ON CERTAIN AWARDS.— 

7 ‘‘(1) LIMITATION.—No Federal agency may 

8 issue an award under the SBIR program or the 

9 STTR program if the size of the award exceeds the 

10 award guidelines established under this section by 

11 more than 50 percent. 

12 ‘‘(2) MAINTAINANCE OF INFORMATION.—Par13 ticipating agencies shall maintain information on 

14 awards exceeding the guidelines established under 

15 this section, including— 

16 ‘‘(A) the amount of each award; 

17 ‘‘(B) a justification for exceeding the 

18 award amount; 

19 ‘‘(C) the identity and location of each 

20 award recipient; and 

21 ‘‘(D) whether a recipient has received any 

22 venture capital investment and, if so, whether 

23 the recipient is majority-owned and controlled 

24 by multiple venture capital companies. 


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1 ‘‘(3) REPORTS.—The Administrator shall in2 clude the information described in paragraph (2) in 

3 the annual report of the Administrator to Con4 gress.’’. 

5 SEC. 106. AGENCY AND PROGRAM COLLABORATION. 

6 Section 9 of the Small Business Act (15 U.S.C. 638), 

7 as amended by this Act, is amended by adding at the end 

8 the following: 

9 ‘‘(bb) SUBSEQUENT PHASES.— 

10 ‘‘(1) AGENCY COLLABORATION.—A small busi11 ness concern that received an award from a Federal 

12 agency under this section shall be eligible to receive 

13 an award for a subsequent phase from another Fed14 eral agency, if the head of each relevant Federal 

15 agency or the relevant component of the Federal 

16 agency makes a written determination that the top17 ics of the relevant awards are the same and both 

18 agencies report the awards to the Administrator for 

19 inclusion in the public database under subsection 

20 (k). 

21 ‘‘(2) SBIR AND STTR COLLABORATION.—A 

22 small business concern which received an award 

23 under this section under the SBIR program or the 

24 STTR program may receive an award under this 

25 section for a subsequent phase in either the SBIR 


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1 program or the STTR program and the partici2 pating agency or agencies shall report the awards to 

3 the Administrator for inclusion in the public data4 base under subsection (k).’’. 

5 SEC. 107. ELIMINATION OF PHASE II INVITATIONS. 

6 (a) IN GENERAL.—Section 9(e) of the Small Busi7 ness Act (15 U.S.C. 638(e)) is amended— 

8 (1) in paragraph (4)(B), by striking ‘‘to fur9 ther’’ and inserting: ‘‘which shall not include any in10 vitation, pre-screening, pre-selection, or down-selec11 tion process for eligibility for the second phase, that 

12 will further’’; and 

13 (2) in paragraph (6)(B), by striking ‘‘to further 

14 develop proposed ideas to’’ and inserting ‘‘which 

15 shall not include any invitation, pre-screening, pre16 selection, or down-selection process for eligibility for 

17 the second phase, that will further develop proposals 

18 that’’. 

19 (b) TECHNICAL AND CONFORMING AMENDMENTS.— 

20 Section 9 of the Small Business Act (15 U.S.C. 638) is 

21 amended— 

22 (1) in section 9— 

23 (A) in subsection (e)— 

24 (i) in paragraph (8), by striking 

25 ‘‘and’’ at the end; 


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1 (ii) in paragraph (9)— 

2 (I) by striking ‘‘the second or the 

3 third phase’’ and inserting ‘‘Phase II 

4 or Phase III’’; and 

5 (II) by striking the period at the 

6 end and inserting a semicolon; and 

7 (iii) by adding at the end the fol8 lowing: 

9 ‘‘(10) the term ‘Phase I’ means— 

10 ‘‘(A) with respect to the SBIR program, 

11 the first phase described in paragraph (4)(A); 

12 and 

13 ‘‘(B) with respect to the STTR program, 

14 the first phase described in paragraph (6)(A); 

15 ‘‘(11) the term ‘Phase II’ means— 

16 ‘‘(A) with respect to the SBIR program, 

17 the second phase described in paragraph 

18 (4)(B); and 

19 ‘‘(B) with respect to the STTR program, 

20 the second phase described in paragraph 

21 (6)(B); and 

22 ‘‘(12) the term ‘Phase III’ means— 

23 ‘‘(A) with respect to the SBIR program, 

24 the third phase described in paragraph (4)(C); 

25 and 


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1 ‘‘(B) with respect to the STTR program, 

2 the third phase described in paragraph 

3 (6)(C).’’; 

4 (B) in subsection (j)— 

5 (i) in paragraph (1)(B), by striking 

6 ‘‘phase two’’ and inserting ‘‘Phase II’’; 

7 (ii) in paragraph (2)— 

8 (I) in subparagraph (B)— 

9 (aa) by striking ‘‘the third 

10 phase’’ each place it appears and 

11 inserting ‘‘Phase III’’; and 

12 (bb) by striking ‘‘the second 

13 phase’’ and inserting ‘‘Phase II’’; 

14 (II) in subparagraph (D)— 

15 (aa) by striking ‘‘the first 

16 phase’’ and inserting ‘‘Phase I’’; 

17 and 

18 (bb) by striking ‘‘the second 

19 phase’’ and inserting ‘‘Phase II’’; 

20 (III) in subparagraph (F), by 

21 striking ‘‘the third phase’’ and insert22 ing ‘‘Phase III’’; 

23 (IV) in subparagraph (G)— 


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1 (aa) by striking ‘‘the first 

2 phase’’ and inserting ‘‘Phase I’’; 

3 and 

4 (bb) by striking ‘‘the second 

5 phase’’ and inserting ‘‘Phase II’’; 

6 and 

7 (V) in subparagraph (H)— 

8 (aa) by striking ‘‘the first 

9 phase’’ and inserting ‘‘Phase I’’; 

10 (bb) by striking ‘‘second 

11 phase’’ each place it appears and 

12 inserting ‘‘Phase II’’; and 

13 (cc) by striking ‘‘third 

14 phase’’ and inserting ‘‘Phase 

15 III’’; and 

16 (iii) in paragraph (3)— 

17 (I) in subparagraph (A)— 

18 (aa) by striking ‘‘the first 

19 phase (as described in subsection 

20 (e)(4)(A))’’ and inserting ‘‘Phase 

21 I’’; 

22 (bb) by striking ‘‘the second 

23 phase (as described in subsection 

24 (e)(4)(B))’’ and inserting ‘‘Phase 

25 II’’; and 


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1 (cc) by striking ‘‘the third 

2 phase (as described in subsection 

3 (e)(4)(C))’’ and inserting ‘‘Phase 

4 III’’; and 

5 (II) in subparagraph (B), by 

6 striking ‘‘second phase’’ and inserting 

7 ‘‘Phase II’’; 

8 (C) in subsection (k)— 

9 (i) by striking ‘‘first phase’’ each 

10 place it appears and inserting ‘‘Phase I’’; 

11 and 

12 (ii) by striking ‘‘second phase’’ each 

13 place it appears and inserting ‘‘Phase II’’; 

14 (D) in subsection (l)(2)— 

15 (i) by striking ‘‘the first phase’’ and 

16 inserting ‘‘Phase I’’; and 

17 (ii) by striking ‘‘the second phase’’ 

18 and inserting ‘‘Phase II’’; 

19 (E) in subsection (o)(13)— 

20 (i) in subparagraph (B), by striking 

21 ‘‘second phase’’ and inserting ‘‘Phase II’’; 

22 and 

23 (ii) in subparagraph (C), by striking 

24 ‘‘third phase’’ and inserting ‘‘Phase III’’; 

25 (F) in subsection (p)— 


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1 (i) in paragraph (2)(B)— 

2 (I) in clause (vi)— 

3 (aa) by striking ‘‘the second 

4 phase’’ and inserting ‘‘Phase II’’; 

5 and 

6 (bb) by striking ‘‘the third 

7 phase’’ and inserting ‘‘Phase 

8 III’’; and 

9 (II) in clause (ix)— 

10 (aa) by striking ‘‘the first 

11 phase’’ and inserting ‘‘Phase I’’; 

12 and 

13 (bb) by striking ‘‘the second 

14 phase’’ and inserting ‘‘Phase II’’; 

15 and 

16 (ii) in paragraph (3)— 

17 (I) by striking ‘‘the first phase 

18 (as described in subsection 

19 (e)(6)(A))’’ and inserting ‘‘Phase I’’; 

20 (II) by striking ‘‘the second 

21 phase (as described in subsection 

22 (e)(6)(B))’’ and inserting ‘‘Phase II’’; 

23 and 


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1 (III) by striking ‘‘the third phase 

2 (as described in subsection 

3 (e)(6)(A))’’ and inserting ‘‘Phase III’’; 

4 (G) in subsection (q)(3)— 

5 (i) in subparagraph (A)— 

6 (I) in the subparagraph heading, 

7 by striking ‘‘FIRST PHASE’’ and in8 serting ‘‘PHASE I’’; and 

9 (II) by striking ‘‘first phase’’ and 

10 inserting ‘‘Phase I’’; and 

11 (ii) in subparagraph (B)— 

12 (I) in the subparagraph heading, 

13 by striking ‘‘SECOND PHASE’’ and in14 serting ‘‘PHASE II’’; and 

15 (II) by striking ‘‘second phase’’ 

16 and inserting ‘‘Phase II’’; 

17 (H) in subsection (r)— 

18 (i) in the subsection heading, by strik19 ing ‘‘THIRD PHASE’’ and inserting 

20 ‘‘PHASE III’’; 

21 (ii) in paragraph (1)— 

22 (I) in the first sentence— 

23 (aa) by striking ‘‘for the sec24 ond phase’’ and inserting ‘‘for 

25 Phase II’’; 


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1 (bb) by striking ‘‘third 

2 phase’’ and inserting ‘‘Phase 

3 III’’; and 

4 (cc) by striking ‘‘second 

5 phase period’’ and inserting 

6 ‘‘Phase II period’’; and 

7 (II) in the second sentence— 

8 (aa) by striking ‘‘second 

9 phase’’ and inserting ‘‘Phase II’’; 

10 and 

11 (bb) by striking ‘‘third 

12 phase’’ and inserting ‘‘Phase 

13 III’’; and 

14 (iii) in paragraph (2), by striking 

15 ‘‘third phase’’ and inserting ‘‘Phase III’’; 

16 and 

17 (I) in subsection (u)(2)(B), by striking 

18 ‘‘the first phase’’ and inserting ‘‘Phase I’’; 

19 (2) in section 34— 

20 (A) in subsection (c)(2)(B)(ii), by striking 

21 ‘‘first phase and second phase SBIR awards’’ 

22 and inserting ‘‘Phase I and Phase II SBIR 

23 awards (as defined in section 9(e))’’; and 

24 (B) in subsection (e)(2)(A)— 


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1 (i) in clause (i), by striking ‘‘first 

2 phase awards’’ and all that follows and in3 serting ‘‘Phase I awards (as defined in sec4 tion 9(e));’’; and 

5 (ii) by striking ‘‘first phase’’ each 

6 place it appears and inserting ‘‘Phase I’’; 

7 and 

8 (3) in section 35(c)(2)(B)(vii), by striking 

9 ‘‘third phase’’ and inserting ‘‘Phase III’’. 

10 SEC. 108. MAJORITY-VENTURE INVESTMENTS IN SBIR 

11 FIRMS. 

12 (a) IN GENERAL.—Section 9 of the Small Business 

13 Act (15 U.S.C. 638), as amended by this Act, is amended 

14 by adding at the end the following: 

15 ‘‘(cc) MAJORITY-VENTURE INVESTMENTS IN SBIR 

16 FIRMS.— 

17 ‘‘(1) AUTHORITY AND DETERMINATION.— 

18 ‘‘(A) IN GENERAL.—Upon a written deter19 mination provided not later than 30 days in ad20 vance to the Administrator and to the Com21 mittee on Small Business and Entrepreneurship 

22 of the Senate and the Committee on Small 

23 Business of the House of Representatives— 

24 ‘‘(i) the head of the SBIR program of 

25 the National Institutes of Health may 


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1 award not more than 18 percent of the 

2 SBIR funds of the National Institutes of 

3 Health allocated in accordance with this 

4 Act, in the first full fiscal year beginning 

5 after the date of enactment of this sub6 section, and each fiscal year thereafter, to 

7 small business concerns that are owned in 

8 majority part by venture capital companies 

9 and that satisfy the qualification require10 ments under paragraph (2) through com11 petitive, merit-based procedures that are 

12 open to all eligible small business concerns; 

13 and 

14 ‘‘(ii) the head of any other Federal 

15 agency participating in the SBIR program 

16 may award not more than 8 percent of the 

17 SBIR funds of the Federal agency allo18 cated in accordance with this Act, in the 

19 first full fiscal year beginning after the 

20 date of enactment of this subsection, and 

21 each fiscal year thereafter, to small busi22 ness concerns that are majority owned by 

23 venture capital companies and that satisfy 

24 the qualification requirements under para25 graph (2) through competitive, merit-based 


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1 procedures that are open to all eligible 

2 small business concerns. 

3 ‘‘(B) DETERMINATION.—A written deter4 mination made under subparagraph (A) shall 

5 explain how the use of the authority under that 

6 subparagraph will induce additional venture 

7 capital funding of small business innovations, 

8 substantially contribute to the mission of the 

9 funding Federal agency, demonstrate a need for 

10 public research, and otherwise fulfill the capital 

11 needs of small business concerns for additional 

12 financing for the SBIR project. 

13 ‘‘(2) QUALIFICATION REQUIREMENTS.—The 

14 Administrator shall establish requirements relating 

15 to the affiliation by small business concerns with 

16 venture capital companies, which may not exclude a 

17 United States small business concern from participa18 tion in the program under paragraph (1) on the 

19 basis that the small business concern is owned in 

20 majority part by, or controlled by, more than 1 

21 United States venture capital company, so long as 

22 no single venture capital company owns more than 

23 49 percent of the small business concern. 

24 ‘‘(3) REGISTRATION.—A small business concern 

25 that is majority owned and controlled by multiple 


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1 venture capital companies and qualified for partici2 pation in the program authorized under paragraph 

3 (1) shall— 

4 ‘‘(A) register with the Administrator on 

5 the date that the small business concern sub6 mits an application for an award under the 

7 SBIR program; and 

8 ‘‘(B) indicate whether the small business 

9 concern is registered under subparagraph (A) in 

10 any SBIR proposal. 

11 ‘‘(4) COMPLIANCE.—A Federal agency de12 scribed in paragraph (1) shall collect data regarding 

13 the number and dollar amounts of phase I, phase II, 

14 and all other categories of awards under the SBIR 

15 program, and the Administrator shall report on the 

16 data and the compliance of each such Federal agen17 cy with the maximum amounts under paragraph (1) 

18 as part of the annual report by the Administration 

19 under subsection (b)(7). 

20 ‘‘(5) ENFORCEMENT.—If a Federal agency 

21 awards more than the amount authorized under 

22 paragraph (1) for a purpose described in paragraph 

23 (1), the amount awarded in excess of the amount 

24 authorized under paragraph (1) shall be transferred 

25 to the funds for general SBIR programs from the 


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1 non-SBIR research and development funds of the 

2 Federal agency within 60 days of the date on which 

3 the Federal agency awarded more than the amount 

4 authorized under paragraph (1) for a purpose de5 scribed in paragraph (1).’’. 

6 (b) TECHNICAL AND CONFORMING AMENDMENT.— 

7 Section 3 of the Small Business Act (15 U.S.C. 632) is 

8 amended by adding at the end the following: 

9 ‘‘(t) VENTURE CAPITAL COMPANY.—In this Act, the 

10 term ‘venture capital company’ means an entity described 

11 in clause (i), (v), or (vi) of section 121.103(b)(5) of title 

12 13, Code of Federal Regulations (or any successor there13 to).’’. 

14 (c) ASSISTANCE FOR DETERMINING AFFILIATES.— 

15 Not later than 30 days after the date of enactment of this 

16 Act, the Administrator shall post on the website of the 

17 Administration (with a direct link displayed on the home18 page of the website of the Administration or the SBIR 

19 website of the Administration)— 

20 (1) a clear explanation of the SBIR affiliation 

21 rules under part 121 of title 13, Code of Federal 

22 Regulations; and 

23 (2) contact information for officers or employ24 ees of the Administration who— 


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1 (A) upon request, shall review an issue re2 lating to the rules described in paragraph (1); 

3 and 

4 (B) shall respond to a request under sub5 paragraph (A) not later than 20 business days 

6 after the date on which the request is received. 

7 SEC. 109. SBIR AND STTR SPECIAL ACQUISITION PREF8 ERENCE. 

9 Section 9(r) of the Small Business Act (15 U.S.C. 

10 638(r)) is amended by adding at the end the following: 

11 ‘‘(4) PHASE III AWARDS.—To the greatest ex12 tent practicable, Federal agencies and Federal prime 

13 contractors shall issue Phase III awards relating to 

14 technology, including sole source awards, to the 

15 SBIR and STTR award recipients that developed 

16 the technology.’’. 

17 SEC. 110. COLLABORATING WITH FEDERAL LABORATORIES 

18 AND RESEARCH AND DEVELOPMENT CEN19 TERS. 

20 Section 9 of the Small Business Act (15 U.S.C. 638), 

21 as amended by this Act, is amended by adding at the end 

22 the following: 

23 ‘‘(dd) COLLABORATING WITH FEDERAL LABORA24 TORIES AND RESEARCH AND DEVELOPMENT CENTERS.— 


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1 ‘‘(1) AUTHORIZATION.—Subject to the limita2 tions under this section, the head of each partici3 pating Federal agency may make SBIR and STTR 

4 awards to any eligible small business concern that— 

5 ‘‘(A) intends to enter into an agreement 

6 with a Federal laboratory or federally funded 

7 research and development center for portions of 

8 the activities to be performed under that award; 

9 or 

10 ‘‘(B) has entered into a cooperative re11 search and development agreement (as defined 

12 in section 12(d) of the Stevenson-Wydler Tech13 nology Innovation Act of 1980 (15 U.S.C. 

14 3710a(d))) with a Federal laboratory. 

15 ‘‘(2) PROHIBITION.—No Federal agency shall— 

16 ‘‘(A) condition an SBIR or STTR award 

17 upon entering into agreement with any Federal 

18 laboratory or any federally funded laboratory or 

19 research and development center for any por20 tion of the activities to be performed under that 

21 award; 

22 ‘‘(B) approve an agreement between a 

23 small business concern receiving a SBIR or 

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1 ment center, if the small business concern per2 forms a lesser portion of the activities to be 

3 performed under that award than required by 

4 this section and by the SBIR Policy Directive 

5 and the STTR Policy Directive of the Adminis6 trator; or 

7 ‘‘(C) approve an agreement that violates 

8 any provision, including any data rights protec9 tions provision, of this section or the SBIR and 

10 the STTR Policy Directives. 

11 ‘‘(3) IMPLEMENTATION.—Not later than 180 

12 days after the date of enactment of this subsection, 

13 the Administrator shall modify the SBIR Policy Di14 rective and the STTR Policy Directive issued under 

15 this section to ensure that small business concerns— 

16 ‘‘(A) have the flexibility to use the re17 sources of the Federal laboratories and feder18 ally funded research and development centers; 

19 and 

20 ‘‘(B) are not mandated to enter into agree21 ment with any Federal laboratory or any feder22 ally funded laboratory or research and develop23 ment center as a condition of an award.’’. 


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1 SEC. 111. NOTICE REQUIREMENT. 

2 The head of any Federal agency involved in a case 

3 or controversy before any Federal judicial or administra4 tive tribunal concerning the SBIR program or the STTR 

5 program shall provide timely notice, as determined by the 

6 Administrator, of the case or controversy to the Adminis7 trator. 

8 TITLE II—OUTREACH AND COM9 MERCIALIZATION INITIA10 TIVES 

11 SEC. 201. RURAL AND STATE OUTREACH. 

12 (a) OUTREACH.—Section 9 of the Small Business Act 

13 (15 U.S.C. 638) is amended by inserting after subsection 

14 (r) the following: 

15 ‘‘(s) OUTREACH.— 

16 ‘‘(1) DEFINITION OF ELIGIBLE STATE.—In this 

17 subsection, the term ‘eligible State’ means a State— 

18 ‘‘(A) for which the total value of contracts 

19 awarded to the State under this section during 

20 the most recent fiscal year for which data is 

21 available was less than $5,000,000; and 

22 ‘‘(B) that certifies to the Administrator 

23 that the State will, upon receipt of assistance 

24 under this subsection, provide matching funds 

25 from non-Federal sources in an amount that is 


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1 not less than 50 percent of the amount provided 

2 under this subsection. 

3 ‘‘(2) PROGRAM AUTHORITY.—Of amounts made 

4 available to carry out this section for each of fiscal 

5 years 2010 through 2014, the Administrator may 

6 expend with eligible States not more than 

7 $5,000,000 in each such fiscal year in order to in8 crease the participation of small business concerns 

9 located in those States in the programs under this 

10 section. 

11 ‘‘(3) AMOUNT OF ASSISTANCE.—The amount of 

12 assistance provided to an eligible State under this 

13 subsection in any fiscal year— 

14 ‘‘(A) shall be equal to not more than 50 

15 percent of the total amount of matching funds 

16 from non-Federal sources provided by the 

17 State; and 

18 ‘‘(B) shall not exceed $100,000. 

19 ‘‘(4) USE OF ASSISTANCE.—Assistance provided 

20 to an eligible State under this subsection shall be 

21 used by the State, in consultation with State and 

22 local departments and agencies, for programs and 

23 activities to increase the participation of small busi24 ness concerns located in the State in the programs 

25 under this section, including— 


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1 ‘‘(A) the establishment of quantifiable per2 formance goals, including goals relating to— 

3 ‘‘(i) the number of program awards 

4 under this section made to small business 

5 concerns in the State; and 

6 ‘‘(ii) the total amount of Federal re7 search and development contracts awarded 

8 to small business concerns in the State; 

9 ‘‘(B) the provision of competition outreach 

10 support to small business concerns in the State 

11 that are involved in research and development; 

12 and 

13 ‘‘(C) the development and dissemination of 

14 educational and promotional information relat15 ing to the programs under this section to small 

16 business concerns in the State.’’. 

17 (b) FEDERAL AND STATE PROGRAM EXTENSION.— 

18 Section 34 of the Small Business Act (15 U.S.C. 657d) 

19 is amended— 

20 (1) in subsection (h), by striking ‘‘2001 

21 through 2005’’ each place it appears and inserting 

22 ‘‘2010 through 2014’’; and 

23 (2) in subsection (i), by striking ‘‘2005’’ and in24 serting ‘‘2014’’. 


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1 (c) RURAL AREAS.—Section 34(e)(2) of the Small 

2 Business Act (15 U.S.C. 657d(e)(2)) is amended— 

3 (1) by redesignating subparagraphs (C) and 

4 (D) as subparagraphs (D) and (E), respectively; and 

5 (2) by inserting after subparagraph (B) the fol6 lowing: 

7 ‘‘(C) RURAL AREAS.— 

8 ‘‘(i) IN GENERAL.—Except as pro9 vided in clause (ii), the non-Federal share 

10 of the cost of the activity carried out using 

11 an award or under a cooperative agree12 ment under this section shall be 50 cents 

13 for each Federal dollar that will be directly 

14 allocated by a recipient described in para15 graph (A) to serve small business concerns 

16 located in a rural area. 

17 ‘‘(ii) ENHANCED RURAL AWARDS.— 

18 For a recipient located in a rural area that 

19 is located in a State described in subpara20 graph (A)(i), the non-Federal share of the 

21 cost of the activity carried out using an 

22 award or under a cooperative agreement 

23 under this section shall be 35 cents for 

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1 graph (A) to serve small business concerns 

2 located in the rural area. 

3 ‘‘(iii) DEFINITION OF RURAL AREA.— 

4 In this subparagraph, the term ‘rural area’ 

5 has the meaning given that term in section 

6 1393(a)(2)) of the Internal Revenue Code 

7 of 1986.’’. 

8 SEC. 202. SBIR–STEM WORKFORCE DEVELOPMENT GRANT 

9 PILOT PROGRAM. 

10 (a) PILOT PROGRAM ESTABLISHED.—From amounts 

11 made available to carry out this section, the Administrator 

12 shall establish a SBIR–STEM Workforce Development 

13 Grant Pilot Program to encourage the business commu14 nity to provide workforce development opportunities for 

15 college students, in the fields of science, technology, engi16 neering, and math (in this section referred to as ‘‘STEM 

17 college students’’), by providing a SBIR bonus grant. 

18 (b) ELIGIBLE ENTITIES DEFINED.—In this section 

19 the term ‘‘eligible entity’’ means a grantee receiving a 

20 grant under the SBIR Program on the date of the bonus 

21 grant under subsection (a) that provides an internship 

22 program for STEM college students. 

23 (c) AWARDS.—An eligible entity shall receive a bonus 

24 grant equal to 10 percent of either a Phase I or Phase 


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1 II grant, as applicable, with a total award maximum of 

2 not more than $10,000 per year. 

3 (d) EVALUATION.—Following the fourth year of 

4 funding under this section, the Administrator shall submit 

5 a report to Congress on the results of the SBIR–STEM 

6 Workforce Development Grant Pilot Program. 

7 (e) AUTHORIZATION OF APPROPRIATIONS.—There 

8 are authorized to be appropriated to carry out this sec9 tion— 

10 (1) $1,000,000 for fiscal year 2011; 

11 (2) $1,000,000 for fiscal year 2012; 

12 (3) $1,000,000 for fiscal year 2013; 

13 (4) $1,000,000 for fiscal year 2014; and 

14 (5) $1,000,000 for fiscal year 2015. 

15 SEC. 203. TECHNICAL ASSISTANCE FOR AWARDEES. 

16 Section 9(q)(3) of the Small Business Act (15 U.S.C. 

17 638(q)(3)) is amended— 

18 (1) in subparagraph (A), by striking ‘‘$4,000’’ 

19 and inserting ‘‘$5,000’’; 

20 (2) in subparagraph (B)— 

21 (A) by striking ‘‘, with funds available 

22 from their SBIR awards,’’; and 

23 (B) by striking ‘‘$4,000 per year’’ and in24 serting ‘‘$5,000 per year, which shall be in ad25 dition to the amount of the recipient’s award’’. 


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1 (3) by adding at the end the following: 

2 ‘‘(C) FLEXIBILITY.—In carrying out sub3 paragraphs (A) and (B), each Federal agency 

4 shall provide the allowable amounts to a recipi5 ent that meets the eligibility requirements 

6 under the applicable subparagraph, if the re7 cipient requests to seek technical assistance 

8 from an individual or entity other than the ven9 dor selected under paragraph (2) by the Fed10 eral agency. 

11 ‘‘(D) LIMITATION.—A Federal agency may 

12 not— 

13 ‘‘(i) use the amounts authorized under 

14 subparagraph (A) or (B) unless the vendor 

15 selected under paragraph (2) provides the 

16 technical assistance to the recipient; or 

17 ‘‘(ii) enter a contract with a vendor 

18 under paragraph (2) under which the 

19 amount provided for technical assistance is 

20 based on total number of Phase I or Phase 

21 II awards.’’. 

22 SEC. 204. COMMERCIALIZATION PILOT PROGRAM AT DE23 PARTMENT OF DEFENSE. 

24 Section 9(y) of the Small Business Act (15 U.S.C. 

25 638(y)) is amended— 


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1 (1) in paragraph (1)— 

2 (A) by inserting ‘‘or Small Business Tech3 nology Transfer Program’’ after ‘‘Small Busi4 ness Innovation Research Program’’; and 

5 (B) by adding at the end the following: 

6 ‘‘The authority to create and administer a Com7 mercialization Pilot Program under this sub8 section may not be construed to eliminate or re9 place any other SBIR program or STTR pro10 gram that enhances the insertion or transition 

11 of SBIR or STTR technologies, including any 

12 such program in effect on the date of enact13 ment of the National Defense Authorization Act 

14 for Fiscal Year 2006 (Public Law 109–163; 

15 119 Stat. 3136).’’; 

16 (2) in paragraph (2), by inserting ‘‘or Small 

17 Business Technology Transfer Program’’ after 

18 ‘‘Small Business Innovation Research Program’’; 

19 (3) by redesignating paragraphs (5) and (6) as 

20 paragraphs (7) and (8), respectively; 

21 (4) by inserting after paragraph (4) the fol22 lowing: 

23 ‘‘(5) INSERTION INCENTIVES.—For any con24 tract with a value of not less than $100,000,000, the 

25 Secretary of Defense is authorized to— 


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1 ‘‘(A) establish goals for the transition of 

2 Phase III technologies in subcontracting plans; 

3 and 

4 ‘‘(B) require a prime contractor on such a 

5 contract to report the number and dollar 

6 amount of contracts entered into by that prime 

7 contractor for Phase III SBIR or STTR 

8 projects. 

9 ‘‘(6) GOAL FOR SBIR AND STTR TECHNOLOGY

10 INSERTION.—The Secretary of Defense shall— 

11 ‘‘(A) set a goal to increase the number of 

12 Phase II SBIR contracts and the number of 

13 Phase II STTR contracts awarded by that Sec14 retary that lead to technology transition into 

15 programs of record or fielded systems; 

16 ‘‘(B) use incentives in effect on the date of 

17 enactment of the SBIR/STTR Reauthorization 

18 Act of 2009, or create new incentives, to en19 courage agency program managers and prime 

20 contractors to meet the goal under subpara21 graph (A); and 

22 ‘‘(C) include in the annual report to Con23 gress the percentage of contracts described in 

24 subparagraph (A) awarded by that Secretary, 

25 and information on the ongoing status of 


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1 projects funded through the Commercialization 

2 Pilot Program and efforts to transition these 

3 technologies into programs of record or fielded 

4 systems.’’; and 

5 (5) in paragraph (8), as so redesignated, by 

6 striking ‘‘fiscal year 2009’’ and inserting ‘‘fiscal year 

7 2014’’. 

8 SEC. 205. COMMERCIALIZATION PILOT PROGRAM FOR CI9 VILIAN AGENCIES. 

10 Section 9 of the Small Business Act (15 U.S.C. 638), 

11 as amended by this Act, is amended by adding at the end 

12 the following: 

13 ‘‘(ee) PILOT PROGRAM.— 

14 ‘‘(1) AUTHORIZATION.—The head of each cov15 ered Federal agency may set aside not more than 10 

16 percent of the SBIR and STTR funds of such agen17 cy for further technology development, testing, and 

18 evaluation of SBIR and STTR Phase II tech19 nologies. 

20 ‘‘(2) APPLICATION BY FEDERAL AGENCY.— 

21 ‘‘(A) IN GENERAL.—A covered Federal 

22 agency may not establish a pilot program unless 

23 such agency makes a written application to the 

24 Administrator, not later than 90 days before to 

25 the first day of the fiscal year in which the pilot 


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1 program is to be established, that describes a 

2 compelling reason that additional investment in 

3 SBIR or STTR technologies is necessary, in4 cluding unusually high regulatory, systems inte5 gration, or other costs relating to development 

6 or manufacturing of identifiable, highly prom7 ising small business technologies or a class of 

8 such technologies expected to substantially ad9 vance the mission of the agency. 

10 ‘‘(B) DETERMINATION.—The Adminis11 trator shall— 

12 ‘‘(i) make a determination regarding 

13 an application submitted under subpara14 graph (A) not later than 30 days before 

15 the first day of the fiscal year for which 

16 the application is submitted; 

17 ‘‘(ii) publish the determination in the 

18 Federal Register; and 

19 ‘‘(iii) make a copy of the determina20 tion and any related materials available to 

21 the Committee on Small Business and En22 trepreneurship of the Senate and the Com23 mittee on Small Business of the House of 

24 Representatives. 


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1 ‘‘(3) MAXIMUM AMOUNT OF AWARD.—The head 

2 of a Federal agency may not make an award under 

3 a pilot program in excess of 2 times the dollar 

4 amounts generally established for Phase II awards 

5 under subsection (j)(2)(D) or (p)(2)(B)(ix). 

6 ‘‘(4) MATCHING.—The head of a Federal agen7 cy may not make an award under a pilot program 

8 unless new private, Federal non-SBIR, or Federal 

9 non-STTR funding which at least matches the 

10 award from the Federal agency is provided for SBIR 

11 or STTR Phase II technology. 

12 ‘‘(5) ELIGIBILITY FOR AWARD.—The head of a 

13 Federal agency may make an award under a pilot 

14 program to any applicant that is eligible to receive 

15 a Phase III award related to technology developed in 

16 Phase II of an SBIR or STTR project. 

17 ‘‘(6) REGISTRATION.—Any applicant that re18 ceives an award under a pilot program shall register 

19 with the Administrator in a registry that is available 

20 to the public. 

21 ‘‘(7) TERMINATION.—The authority to establish 

22 a pilot program under this section expires at the end 

23 of fiscal year 2014. 

24 ‘‘(8) DEFINITIONS.—In this section— 

25 ‘‘(A) the term ‘covered Federal agency’— 


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1 ‘‘(i) means a Federal agency partici2 pating in the SBIR program or the STTR 

3 program; and 

4 ‘‘(ii) does not include the Department 

5 of Defense; and 

6 ‘‘(B) the term ‘pilot program’ means the 

7 program established under paragraph (1).’’. 

8 SEC. 206. NANOTECHNOLOGY INITIATIVE. 

9 (a) IN GENERAL.—Section 9 of the Small Business 

10 Act (15 U.S.C. 638), as amended by this Act, is amended 

11 by adding at the end the following: 

12 ‘‘(ff) NANOTECHNOLOGY INITIATIVE.—Each Federal 

13 agency participating in the SBIR or STTR program shall 

14 encourage the submission of applications for support of 

15 nanotechnology related projects to such program.’’. 

16 (b) SUNSET.—Effective October 1, 2014, subsection 

17 (ff) of the Small Business Act, as added by subsection (a) 

18 of this section, is repealed. 

19 SEC. 207. ACCELERATING CURES. 

20 The Small Business Act (15 U.S.C. 631 et seq.) is 

21 amended— 

22 (1) by redesignating section 44 as section 45; 

23 and 

24 (2) by inserting after section 43 the following: 


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1 ‘‘SEC. 44. SMALL BUSINESS INNOVATION RESEARCH PRO2 GRAM. 

3 ‘‘(a) NIH CURES PILOT.— 

4 ‘‘(1) ESTABLISHMENT.—An independent advi5 sory board shall be established at the National Acad6 emy of Sciences (in this section referred to as the 

7 ‘advisory board’) to conduct periodic evaluations of 

8 the SBIR program (as that term is defined in sec9 tion 9) of each of the National Institutes of Health 

10 (referred to in this section as the ‘NIH’) institutes 

11 and centers for the purpose of improving the man12 agement of the SBIR program through data-driven 

13 assessment. 

14 ‘‘(2) MEMBERSHIP.— 

15 ‘‘(A) IN GENERAL.—The advisory board 

16 shall consist of— 

17 ‘‘(i) the Director of the NIH; 

18 ‘‘(ii) the Director of the SBIR pro19 gram of the NIH; 

20 ‘‘(iii) senior NIH agency managers, 

21 selected by the Director of NIH; 

22 ‘‘(iv) industry experts, selected by the 

23 Council of the National Academy of 

24 Sciences in consultation with the Associate 

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1 ministration and the Director of the Office 

2 of Science and Technology Policy; and 

3 ‘‘(v) owners or operators of small 

4 business concerns that have received an 

5 award under the SBIR program of the 

6 NIH, selected by the Associate Adminis7 trator for Technology of the Administra8 tion. 

9 ‘‘(B) NUMBER OF MEMBERS.—The total 

10 number of members selected under clauses (iii), 

11 (iv), and (v) of subparagraph (A) shall not ex12 ceed 10. 

13 ‘‘(C) EQUAL REPRESENTATION.—The total 

14 number of members of the advisory board se15 lected under clauses (i), (ii), (iii), and (iv) of 

16 subparagraph (A) shall be equal to the number 

17 of members of the advisory board selected 

18 under subparagraph (A)(v). 

19 ‘‘(b) ADDRESSING DATA GAPS.—In order to enhance 

20 the evidence-base guiding SBIR program decisions and 

21 changes, the Director of the SBIR program of the NIH 

22 shall address the gaps and deficiencies in the data collec23 tion concerns identified in the 2007 report of the National 

24 Academies of Science entitled ‘An Assessment of the Small 

25 Business Innovation Research Program at the NIH’. 


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1 ‘‘(c) PILOT PROGRAM.— 

2 ‘‘(1) IN GENERAL.—The Director of the SBIR 

3 program of the NIH may initiate a pilot program, 

4 under a formal mechanism for designing, imple5 menting, and evaluating pilot programs, to spur in6 novation and to test new strategies that may en7 hance the development of cures and therapies. 

8 ‘‘(2) CONSIDERATIONS.—The Director of the 

9 SBIR program of the NIH may consider conducting 

10 a pilot program to include individuals with success11 ful SBIR program experience in study sections, hir12 ing individuals with small business development ex13 perience for staff positions, separating the commer14 cial and scientific review processes, and examining 

15 the impact of the trend toward larger awards on the 

16 overall program. 

17 ‘‘(d) REPORT TO CONGRESS.—The Director of the 

18 NIH shall submit an annual report to Congress and the 

19 advisory board on the activities of the SBIR program of 

20 the NIH under this section. 

21 ‘‘(e) SBIR GRANTS AND CONTRACTS.— 

22 ‘‘(1) IN GENERAL.—In awarding grants and 

23 contracts under the SBIR program of the NIH each 

24 SBIR program manager shall place an emphasis on 

25 applications that identify products and services that 


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1 may enhance the development of cures and thera2 pies. 

3 ‘‘(2) EXAMINATION OF COMMERCIALIZATION

4 AND OTHER METRICS.—The advisory board shall 

5 evaluate the implementation of the requirement 

6 under paragraph (1) by examining increased com7 mercialization and other metrics, to be determined 

8 and collected by the SBIR program of the NIH. 

9 ‘‘(3) PHASE I AND II.—To the greatest extent 

10 practicable, the Director of the SBIR program of 

11 the NIH shall reduce the time period between Phase 

12 I and Phase II funding of grants and contracts 

13 under the SBIR program of the NIH to 6 months. 

14 ‘‘(f) LIMIT.—Not more than a total of 1 percent of 

15 the extramural budget (as defined in section 9 of the 

16 Small Business Act (15 U.S.C. 638)) of the NIH for re17 search or research and development may be used for the 

18 pilot program under subsection (c) and to carry out sub19 section (e). 

20 ‘‘(g) SUNSET.—This section shall cease to be effective 

21 on the date that is 5 years after the date of enactment 

22 of the SBIR/STTR Reauthorization Act of 2009.’’. 


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1 TITLE III—OVERSIGHT AND 

2 EVALUATION 

3 SEC. 301. STREAMLINING ANNUAL EVALUATION REQUIRE4 MENTS. 

5 Section 9(b) of the Small Business Act (15 U.S.C. 

6 638(b)), as amended by section 102 of this Act, is amend7 ed— 

8 (1) in paragraph (7)— 

9 (A) by striking ‘‘STTR programs, includ10 ing the data’’ and inserting the following: 

11 ‘‘STTR programs, including— 

12 ‘‘(A) the data’’; 

13 (B) by striking ‘‘(g)(10), (o)(9), and 

14 (o)(15), the number’’ and all that follows 

15 through ‘‘under each of the SBIR and STTR 

16 programs, and a description’’ and inserting the 

17 following: ‘‘(g)(8) and (o)(9); and 

18 ‘‘(B) the number of proposals received 

19 from, and the number and total amount of 

20 awards to, HUBZone small business concerns 

21 and firms with venture capital investment (in22 cluding those majority owned and controlled by 

23 multiple venture capital firms) under each of 

24 the SBIR and STTR programs; 


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1 ‘‘(C) a description of the extent to which 

2 each Federal agency is increasing outreach and 

3 awards to firms owned and controlled by women 

4 and minorities under each of the SBIR and 

5 STTR programs; 

6 ‘‘(D) general information about the imple7 mentation and compliance with the allocation of 

8 funds required under subsection (cc) for firms 

9 majority owned and controlled by multiple ven10 ture capital firms under each of the SBIR and 

11 STTR programs; 

12 ‘‘(E) a detailed description of appeals of 

13 Phase III awards and notices of noncompliance 

14 with the SBIR and the STTR Policy Directives 

15 filed by the Administrator with Federal agen16 cies; and 

17 ‘‘(F) a description’’; and 

18 (2) by inserting after paragraph (7) the fol19 lowing: 

20 ‘‘(8) to coordinate the implementation of elec21 tronic databases at each of the Federal agencies par22 ticipating in the SBIR program or the STTR pro23 gram, including the technical ability of the partici24 pating agencies to electronically share data;’’. 


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1 SEC. 302. DATA COLLECTION FROM AGENCIES FOR SBIR. 

2 Section 9(g) of the Small Business Act (15 U.S.C. 

3 638(g)) is amended— 

4 (1) by striking paragraph (10); 

5 (2) by redesignating paragraphs (8) and (9) as 

6 paragraphs (9) and (10), respectively; 

7 (3) by inserting after paragraph (7) the fol8 lowing: 

9 ‘‘(8) collect annually, and maintain in a com10 mon format in accordance with the simplified report11 ing requirements under subsection (v), such informa12 tion from awardees as is necessary to assess the 

13 SBIR program, including information necessary to 

14 maintain the database described in subsection (k), 

15 including— 

16 ‘‘(A) whether an awardee— 

17 ‘‘(i) has venture capital or is majority 

18 owned and controlled by multiple venture 

19 capital firms, and, if so— 

20 ‘‘(I) the amount of venture cap21 ital that the awardee has received as 

22 of the date of the award; and 

23 ‘‘(II) the amount of additional 

24 capital that the awardee has invested 

25 in the SBIR technology; 

26 ‘‘(ii) has an investor that— 


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1 ‘‘(I) is an individual who is not a 

2 citizen of the United States or a law3 ful permanent resident of the United 

4 States, and if so, the name of any 

5 such individual; or 

6 ‘‘(II) is a person that is not an 

7 individual and is not organized under 

8 the laws of a State or the United 

9 States, and if so the name of any such 

10 person; 

11 ‘‘(iii) is owned by a woman or has a 

12 woman as a principal investigator; 

13 ‘‘(iv) is owned by a socially or eco14 nomically disadvantaged individual or has 

15 a socially or economically disadvantaged 

16 individual as a principal investigator; 

17 ‘‘(v) received assistance under the 

18 FAST program under section 34 or the 

19 outreach program under subsection (s); or 

20 ‘‘(vi) is a faculty member or a student 

21 of an institution of higher education, as 

22 that term is defined in section 101 of the 

23 Higher Education Act of 1965 (20 U.S.C. 

24 1001); and 


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1 ‘‘(B) a justification statement from the 

2 agency, if an awardee receives an award in an 

3 amount that is more than the award guidelines 

4 under this section;’’; and 

5 (4) in paragraph (10), as so redesignated, by 

6 adding ‘‘and’’ at the end. 

7 SEC. 303. DATA COLLECTION FROM AGENCIES FOR STTR. 

8 Section 9(o) of the Small Business Act (15 U.S.C. 

9 638(o)) is amended— 

10 (1) by striking paragraph (9) and inserting the 

11 following: 

12 ‘‘(9) collect annually, and maintain in a com13 mon format in accordance with the simplified report14 ing requirements under subsection (v), such informa15 tion from applicants and awardees as is necessary to 

16 assess the STTR program outputs and outcomes, in17 cluding information necessary to maintain the data18 base described in subsection (k), including— 

19 ‘‘(A) whether an applicant or awardee— 

20 ‘‘(i) has venture capital or is majority 

21 owned and controlled by multiple venture 

22 capital firms, and, if so— 

23 ‘‘(I) the amount of venture cap24 ital that the applicant or awardee has 


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1 received as of the date of the applica2 tion or award, as applicable; and 

3 ‘‘(II) the amount of additional 

4 capital that the applicant or awardee 

5 has invested in the SBIR technology; 

6 ‘‘(ii) has an investor that— 

7 ‘‘(I) is an individual who is not a 

8 citizen of the United States or a law9 ful permanent resident of the United 

10 States, and if so, the name of any 

11 such individual; or 

12 ‘‘(II) is a person that is not an 

13 individual and is not organized under 

14 the laws of a State or the United 

15 States, and if so the name of any such 

16 person; 

17 ‘‘(iii) is owned by a woman or has a 

18 woman as a principal investigator; 

19 ‘‘(iv) is owned by a socially or eco20 nomically disadvantaged individual or has 

21 a socially or economically disadvantaged 

22 individual as a principal investigator; 

23 ‘‘(v) received assistance under the 

24 FAST program under section 34 or the 

25 outreach program under subsection (s); or 


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1 ‘‘(vi) is a faculty member or a student 

2 of an institution of higher education, as 

3 that term is defined in section 101 of the 

4 Higher Education Act of 1965 (20 U.S.C. 

5 1001); and 

6 ‘‘(B) if an awardee receives an award in an 

7 amount that is more than the award guidelines 

8 under this section, a statement from the agency 

9 that justifies the award amount;’’; 

10 (2) in paragraph (14), by adding ‘‘and’’ at the 

11 end; 

12 (3) by striking paragraph (15); and 

13 (4) by redesignating paragraph (16) as para14 graph (15). 

15 SEC. 304. PUBLIC DATABASE. 

16 Section 9(k)(1) of the Small Business Act (15 U.S.C. 

17 638(k)(1)) is amended— 

18 (1) in subparagraph (D), by striking ‘‘and’’ at 

19 the end; 

20 (2) in subparagraph (E), by striking the period 

21 at the end and inserting ‘‘; and’’; and 

22 (3) by adding at the end the following: 

23 ‘‘(F) for each small business concern that 

24 has received a Phase I or Phase II SBIR or 


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1 STTR award from a Federal agency, whether 

2 the small business concern— 

3 ‘‘(i) has venture capital and, if so, 

4 whether the small business concern is reg5 istered as majority owned and controlled 

6 by multiple venture capital companies as 

7 required under subsection (cc)(3); 

8 ‘‘(ii) is owned by a woman or has a 

9 woman as a principal investigator; 

10 ‘‘(iii) is owned by a socially or eco11 nomically disadvantaged individual or has 

12 a socially or economically disadvantaged 

13 individual as a principal investigator; 

14 ‘‘(iv) received assistance under the 

15 FAST program under section 34 or the 

16 outreach program under subsection (s); or 

17 ‘‘(v) is owned by a faculty member or 

18 a student of an institution of higher edu19 cation, as that term is defined in section 

20 101 of the Higher Education Act of 1965 

21 (20 U.S.C. 1001).’’. 

22 SEC. 305. GOVERNMENT DATABASE. 

23 Section 9(k)(2) of the Small Business Act (15 U.S.C. 

24 638(k)(2)) is amended— 


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1 (1) by redesignating subparagraphs (C), (D), 

2 and (E) as subparagraphs (D), (E), and (F), respec3 tively; 

4 (2) by inserting after subparagraph (B) the fol5 lowing: 

6 ‘‘(C) includes, for each awardee— 

7 ‘‘(i) the name, size, location, and any 

8 identifying number assigned to the award9 ee by the Administrator; 

10 ‘‘(ii) whether the awardee has venture 

11 capital, and, if so— 

12 ‘‘(I) the amount of venture cap13 ital as of the date of the award; 

14 ‘‘(II) the percentage of ownership 

15 of the awardee held by a venture cap16 ital firm, including whether the 

17 awardee is majority owned and con18 trolled by multiple venture capital 

19 firms; and 

20 ‘‘(III) the amount of additional 

21 capital that the awardee has invested 

22 in the SBIR technology, which infor23 mation shall be collected on an annual 

24 basis; 


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1 ‘‘(iii) the names and locations of any 

2 affiliates of the awardee; 

3 ‘‘(iv) the number of employees of the 

4 awardee; 

5 ‘‘(v) the number of employees of the 

6 affiliates of the awardee; and 

7 ‘‘(vi) the names of, and the percent8 age of ownership of the awardee held by— 

9 ‘‘(I) any individual who is not a 

10 citizen of the United States or a law11 ful permanent resident of the United 

12 States; or 

13 ‘‘(II) any person that is not an 

14 individual and is not organized under 

15 the laws of a State or the United 

16 States;’’; and 

17 (3) in subparagraph (D), as so redesignated— 

18 (A) in clause (ii), by striking ‘‘and’’ at the 

19 end; and 

20 (B) by adding at the end, the following: 

21 ‘‘(iv) whether the applicant was ma22 jority owned and controlled by multiple 

23 venture capital firms; and 

24 ‘‘(v) the number of employees of the 

25 applicant;’’. 


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1 SEC. 306. ACCURACY IN FUNDING BASE CALCULATIONS. 

2 (a) IN GENERAL.—Not later than 1 year after the 

3 date of enactment of this Act, and every 3 years there4 after, the Comptroller General of the United States 

5 shall— 

6 (1) conduct a fiscal and management audit of 

7 the SBIR program and the STTR program for the 

8 applicable period to— 

9 (A) determine whether Federal agencies 

10 comply with the expenditure amount require11 ments under subsections (f)(1) and (n)(1) of 

12 section 9 of the Small Business Act (15 U.S.C. 

13 638), as amended by this Act; 

14 (B) assess the extent of compliance with 

15 the requirements of section 9(i)(2) of the Small 

16 Business Act (15 U.S.C. 638(i)(2)) by Federal 

17 agencies participating in the SBIR program or 

18 the STTR program and the Administration; 

19 (C) assess whether it would be more con20 sistent and effective to base the amount of the 

21 allocations under the SBIR program and the 

22 STTR program on a percentage of the research 

23 and development budget of a Federal agency, 

24 rather than the extramural budget of the Fed25 eral agency; and 


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1 (D) determine the portion of the extra2 mural research or research and development 

3 budget of a Federal agency that each Federal 

4 agency spends for administrative purposes re5 lating to the SBIR program or STTR program, 

6 and for what specific purposes, including the 

7 portion, if any, of such budget the Federal 

8 agency spends for salaries and expenses, travel 

9 to visit applicants, outreach events, marketing, 

10 and technical assistance; and 

11 (2) submit a report to the Committee on Small 

12 Business and Entrepreneurship of the Senate and 

13 the Committee on Small Business of the House of 

14 Representatives regarding the audit conducted under 

15 paragraph (1), including the assessments required 

16 under subparagraphs (B) and (C), and the deter17 mination made under subparagraph (D) of para18 graph (1). 

19 (b) DEFINITION OF APPLICABLE PERIOD.—In this 

20 section, the term ‘‘applicable period’’ means— 

21 (1) for the first report submitted under this 

22 section, the period beginning on October 1, 2000, 

23 and ending on September 30 of the last full fiscal 

24 year before the date of enactment of this Act for 

25 which information is available; and 


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1 (2) for the second and each subsequent report 

2 submitted under this section, the period— 

3 (A) beginning on October 1 of the first fis4 cal year after the end of the most recent full 

5 fiscal year relating to which a report under this 

6 section was submitted; and 

7 (B) ending on September 30 of the last 

8 full fiscal year before the date of the report. 

9 SEC. 307. CONTINUED EVALUATION BY THE NATIONAL 

10 ACADEMY OF SCIENCES. 

11 Section 108 of the Small Business Reauthorization 

12 Act of 2000 (15 U.S.C. 638 note) is amended by adding 

13 at the end the following: 

14 ‘‘(e) EXTENSIONS AND ENHANCEMENTS OF AUTHOR15 ITY.— 

16 ‘‘(1) IN GENERAL.—Not later than 6 months 

17 after the date of enactment of the SBIR/STTR Re18 authorization Act of 2009, the head of each agency 

19 described in subsection (a), in consultation with the 

20 Small Business Administration, shall cooperatively 

21 enter into an agreement with the National Academy 

22 of Sciences for the National Research Council to 

23 conduct a study described in subsection (a)(1) and 

24 make recommendations described in subsection 

25 (a)(2) not later than 4 years after the date of enactVerDate Nov 24 2008 00:43 Jun 11, 2009 Jkt 079200 PO 00000 Frm 00056 Fmt 6652 Sfmt 6201 E:\BILLS\S1233.IS S1233

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1 ment of the SBIR/STTR Reauthorization Act of 

2 2009, and every 4 years thereafter. 

3 ‘‘(2) REPORTING.—An agreement under para4 graph (1) shall require that not later than 4 years 

5 after the date of enactment of the SBIR/STTR Re6 authorization Act of 2009, and every 4 years there7 after, the National Research Council shall submit to 

8 the head of the agency entering into the agreement, 

9 the Committee on Small Business and Entrepre10 neurship of the Senate, and the Committee on Small 

11 Business of the House of Representatives a report 

12 regarding the study conducted under paragraph (1) 

13 and containing the recommendations described in 

14 paragraph (1).’’. 

15 SEC. 308. TECHNOLOGY INSERTION REPORTING REQUIRE16 MENTS. 

17 Section 9 of the Small Business Act (15 U.S.C. 638), 

18 as amended by this Act, is amended by adding at the end 

19 the following: 

20 ‘‘(gg) PHASE III REPORTING.—The annual SBIR or 

21 STTR report to Congress by the Administration under 

22 subsection (b)(7) shall include, for each Phase III award 

23 made by the Federal agency— 


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1 ‘‘(1) the name of the agency or component of 

2 the agency or the non-Federal source of capital mak3 ing the Phase III award; 

4 ‘‘(2) the name of the small business concern or 

5 individual receiving the Phase III award; and 

6 ‘‘(3) the dollar amount of the Phase III 

7 award.’’. 

8 SEC. 309. INTELLECTUAL PROPERTY PROTECTIONS. 

9 (a) IN GENERAL.—The Comptroller General of the 

10 United States shall conduct a study of the SBIR program 

11 to assess whether— 

12 (1) Federal agencies comply with the data 

13 rights protections for SBIR awardees and the tech14 nologies of SBIR awardees under section 9 of the 

15 Small Business Act (15 U.S.C. 638); 

16 (2) the laws and policy directives intended to 

17 clarify the scope of data rights, including in proto18 types and mentor-prote ́ge ́ relationships and agree19 ments with Federal laboratories, are sufficient to 

20 protect SBIR awardees; and 

21 (3) there is an effective grievance tracking proc22 ess for SBIR awardees who have grievances against 

23 a Federal agency regarding data rights and a proc24 ess for resolving those grievances. 


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1 (b) REPORT.—Not later than 18 months after the 

2 date of enactment of this Act, the Comptroller General 

3 shall submit to the Committee on Small Business and En4 trepreneurship of the Senate and the Committee on Small 

5 Business of the House of Representatives a report regard6 ing the study conducted under subsection (a). 

7 TITLE IV—POLICY DIRECTIVES 

8 SEC. 401. CONFORMING AMENDMENTS TO THE SBIR AND 

9 THE STTR POLICY DIRECTIVES. 

10 (a) IN GENERAL.—Not later than 180 days after the 

11 date of enactment of this Act, the Administrator shall pro12 mulgate amendments to the SBIR Policy Directive and 

13 the STTR Policy Directive to conform such directives to 

14 this Act and the amendments made by this Act. 

15 (b) PUBLISHING SBIR POLICY DIRECTIVE AND THE

16 STTR POLICY DIRECTIVE IN THE FEDERAL REGISTER.— 

17 Not later than 180 days after the date of enactment of 

18 this Act, the Administrator shall publish the amended 

19 SBIR Policy Directive and the amended STTR Policy Di20 rective in the Federal Register. 

Æ 


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