II 

Calendar No. 94 

111TH CONGRESS 

1ST SESSION S. 1233 

[Report No. 111–37] 

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, Ms. SNOWE, Mrs. SHAHEEN, Mr. PRYOR, Mr. 

KERRY, Mr. CARDIN, and Mr. BROWN) introduced the following bill; 

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

and Entrepreneurship 

JULY 2, 2009 

Reported under authority of the order of the Senate of June 25, 2009, by 

Ms. LANDRIEU, with an amendment 

[Strike out all after the enacting clause and insert the part printed in italic] 

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, 


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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘SBIR/STTR Reau3 thorization Act of 2009’’. 

4 SEC. 2. TABLE OF CONTENTS. 

5 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 

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. 


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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 

9 Transfer Program’’, and ‘‘STTR’’ have the mean10 ings given such terms in section 9 of the Small Busi11 ness Act (15 U.S.C. 638); and 

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

13 same meaning as under section 3 of the Small Busi14 ness Act (15 U.S.C. 632). 

15 TITLE I—REAUTHORIZATION OF 

16 THE SBIR AND STTR PROGRAMS 

17 SEC. 101. EXTENSION OF TERMINATION DATES. 

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

19 (15 U.S.C. 638(m)) is amended by striking ‘‘2008’’ and 

20 inserting ‘‘2023’’. 

21 (b) STTR.—Section 9(n)(1)(A) of the Small Busi22 ness Act (15 U.S.C. 638(n)(1)(A)) is amended by striking 

23 ‘‘2009’’ and inserting ‘‘2023’’. 

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

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

26 638(b)) is amended— 


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

2 end; 

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

4 the end and inserting ‘‘; and’’; 

5 (3) by redesignating paragraph (8) as para6 graph (9); and 

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

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

9 carry out the responsibilities of the Administration 

10 under this section, which shall be— 

11 ‘‘(A) headed by the Assistant Adminis12 trator for Technology, who shall report directly 

13 to the Administrator; and 

14 ‘‘(B) independent from the Office of Gov15 ernment Contracting of the Administration and 

16 sufficiently staffed and funded to comply with 

17 the oversight, reporting, and public database re18 sponsibilities assigned to the Office of Tech19 nology by the Administrator.’’. 

20 SEC. 103. SBIR ALLOCATION INCREASE. 

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

22 638(f)) is amended— 

23 (1) in paragraph (1)— 


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1 (A) in the matter preceding subparagraph 

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

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

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

5 ‘‘and’’ at the end; and 

6 (C) by striking subparagraph (C) and in7 serting the following: 

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

9 budget in each of fiscal years 2009 and 2010; 

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

11 budget in fiscal year 2011; 

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

13 budget in fiscal year 2012; 

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

15 budget in fiscal year 2013; 

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

17 budget in fiscal year 2014; 

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

19 budget in fiscal year 2015; 

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

21 budget in fiscal year 2016; 

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

23 budget in fiscal year 2017; 

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

25 budget in fiscal year 2018; 


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

2 budget in fiscal year 2019; and 

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

4 budget in fiscal year 2020 and each fiscal year 

5 thereafter,’’; and 

6 (2) in paragraph (2)— 

7 (A) by redesignating subparagraphs (A) 

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

9 adjusting the margins accordingly; 

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

11 inserting the following: 

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

13 and 

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

15 ‘‘(B) DEPARTMENT OF DEFENSE AND DE16 PARTMENT OF ENERGY.—For the Department 

17 of Defense and the Department of Energy, to 

18 the greatest extent practicable, the percentage 

19 of the extramural budget in excess of 2.5 per20 cent required to be expended with small busi21 ness concerns under subparagraphs (D) 

22 through (M) of paragraph (1)— 

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

24 or Phase II awards; and 


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

2 further the readiness levels of technologies 

3 developed under Phase II awards, includ4 ing conducting testing and evaluation to 

5 promote the transition of such technologies 

6 into commercial or defense products, or 

7 systems furthering the mission needs of 

8 the Department of Defense or the Depart9 ment of Energy, as the case may be. 

10 ‘‘(C) DEPARTMENT OF HEALTH AND

11 HUMAN SERVICES.—Subparagraphs (D) 

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

13 the Department of Health and Human Services. 

14 For fiscal year 2009, and each fiscal year there15 after, the Department of Health and Human 

16 Services shall expend with small business con17 cerns not less than 2.5 percent of the extra18 mural budget for research or research and de19 velopment of the Department of Health and 

20 Human Services.’’. 

21 SEC. 104. STTR ALLOCATION INCREASE. 

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

23 U.S.C. 638(n)(1)(B)) is amended— 

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


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

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

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

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

5 and 2012; 

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

7 and 2014; and 

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

9 and each fiscal year thereafter.’’. 

10 SEC. 105. SBIR AND STTR AWARD LEVELS. 

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

12 Small Business Act (15 U.S.C. 638(j)(2)(D)) is amend13 ed— 

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

15 ‘‘$150,000’’; and 

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

17 ‘‘$1,000,000’’. 

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

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

20 amended— 

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

22 ‘‘$150,000’’; and 

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

24 ‘‘$1,000,000’’. 


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

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

3 (1) in subsection (j)(2)(D)— 

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

5 years’’; and 

6 (B) by striking ‘‘and programmatic consid7 erations’’; and 

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

9 ‘‘greater or lesser amounts to be awarded at the dis10 cretion of the awarding agency,’’ and inserting ‘‘an 

11 adjustment for inflation of such amounts once every 

12 3 years,’’. 

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

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

15 adding at the end the following: 

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

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

18 issue an award under the SBIR program or the 

19 STTR program if the size of the award exceeds the 

20 award guidelines established under this section by 

21 more than 50 percent. 

22 ‘‘(2) MAINTAINANCE OF INFORMATION.—Par23 ticipating agencies shall maintain information on 

24 awards exceeding the guidelines established under 

25 this section, including— 


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1 ‘‘(A) the amount of each award; 

2 ‘‘(B) a justification for exceeding the 

3 award amount; 

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

5 award recipient; and 

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

7 venture capital investment and, if so, whether 

8 the recipient is majority-owned and controlled 

9 by multiple venture capital companies. 

10 ‘‘(3) REPORTS.—The Administrator shall in11 clude the information described in paragraph (2) in 

12 the annual report of the Administrator to Con13 gress.’’. 

14 SEC. 106. AGENCY AND PROGRAM COLLABORATION. 

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

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

17 the following: 

18 ‘‘(bb) SUBSEQUENT PHASES.— 

19 ‘‘(1) AGENCY COLLABORATION.—A small busi20 ness concern that received an award from a Federal 

21 agency under this section shall be eligible to receive 

22 an award for a subsequent phase from another Fed23 eral agency, if the head of each relevant Federal 

24 agency or the relevant component of the Federal 

25 agency makes a written determination that the topVerDate Nov 24 2008 23:56 Jul 06, 2009 Jkt 079200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6401 E:\BILLS\S1233.RS S1233

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1 ics of the relevant awards are the same and both 

2 agencies report the awards to the Administrator for 

3 inclusion in the public database under subsection 

4 (k). 

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

6 small business concern which received an award 

7 under this section under the SBIR program or the 

8 STTR program may receive an award under this 

9 section for a subsequent phase in either the SBIR 

10 program or the STTR program and the partici11 pating agency or agencies shall report the awards to 

12 the Administrator for inclusion in the public data13 base under subsection (k).’’. 

14 SEC. 107. ELIMINATION OF PHASE II INVITATIONS. 

15 (a) IN GENERAL.—Section 9(e) of the Small Busi16 ness Act (15 U.S.C. 638(e)) is amended— 

17 (1) in paragraph (4)(B), by striking ‘‘to fur18 ther’’ and inserting: ‘‘which shall not include any in19 vitation, pre-screening, pre-selection, or down-selec20 tion process for eligibility for the second phase, that 

21 will further’’; and 

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

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

24 shall not include any invitation, pre-screening, pre25 selection, or down-selection process for eligibility for 


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1 the second phase, that will further develop proposals 

2 that’’. 

3 (b) TECHNICAL AND CONFORMING AMENDMENTS.— 

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

5 amended— 

6 (1) in section 9— 

7 (A) in subsection (e)— 

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

9 ‘‘and’’ at the end; 

10 (ii) in paragraph (9)— 

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

12 third phase’’ and inserting ‘‘Phase II 

13 or Phase III’’; and 

14 (II) by striking the period at the 

15 end and inserting a semicolon; and 

16 (iii) by adding at the end the fol17 lowing: 

18 ‘‘(10) the term ‘Phase I’ means— 

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

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

21 and 

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

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

24 ‘‘(11) the term ‘Phase II’ means— 


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

2 the second phase described in paragraph 

3 (4)(B); and 

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

5 the second phase described in paragraph 

6 (6)(B); and 

7 ‘‘(12) the term ‘Phase III’ means— 

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

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

10 and 

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

12 the third phase described in paragraph 

13 (6)(C).’’; 

14 (B) in subsection (j)— 

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

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

17 (ii) in paragraph (2)— 

18 (I) in subparagraph (B)— 

19 (aa) by striking ‘‘the third 

20 phase’’ each place it appears and 

21 inserting ‘‘Phase III’’; and 

22 (bb) by striking ‘‘the second 

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

24 (II) in subparagraph (D)— 


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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 (III) in subparagraph (F), by 

7 striking ‘‘the third phase’’ and insert8 ing ‘‘Phase III’’; 

9 (IV) in subparagraph (G)— 

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 (V) in subparagraph (H)— 

17 (aa) by striking ‘‘the first 

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

19 (bb) by striking ‘‘second 

20 phase’’ each place it appears and 

21 inserting ‘‘Phase II’’; and 

22 (cc) by striking ‘‘third 

23 phase’’ and inserting ‘‘Phase 

24 III’’; and 

25 (iii) in paragraph (3)— 


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1 (I) in subparagraph (A)— 

2 (aa) by striking ‘‘the first 

3 phase (as described in subsection 

4 (e)(4)(A))’’ and inserting ‘‘Phase 

5 I’’; 

6 (bb) by striking ‘‘the second 

7 phase (as described in subsection 

8 (e)(4)(B))’’ and inserting ‘‘Phase 

9 II’’; and 

10 (cc) by striking ‘‘the third 

11 phase (as described in subsection 

12 (e)(4)(C))’’ and inserting ‘‘Phase 

13 III’’; and 

14 (II) in subparagraph (B), by 

15 striking ‘‘second phase’’ and inserting 

16 ‘‘Phase II’’; 

17 (C) in subsection (k)— 

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

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

20 and 

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

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

23 (D) in subsection (l)(2)— 

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

25 inserting ‘‘Phase I’’; and 


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

2 and inserting ‘‘Phase II’’; 

3 (E) in subsection (o)(13)— 

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

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

6 and 

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

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

9 (F) in subsection (p)— 

10 (i) in paragraph (2)(B)— 

11 (I) in clause (vi)— 

12 (aa) by striking ‘‘the second 

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

14 and 

15 (bb) by striking ‘‘the third 

16 phase’’ and inserting ‘‘Phase 

17 III’’; and 

18 (II) in clause (ix)— 

19 (aa) by striking ‘‘the first 

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

21 and 

22 (bb) by striking ‘‘the second 

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

24 and 

25 (ii) in paragraph (3)— 


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1 (I) by striking ‘‘the first phase 

2 (as described in subsection 

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

4 (II) by striking ‘‘the second 

5 phase (as described in subsection 

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

7 and 

8 (III) by striking ‘‘the third phase 

9 (as described in subsection 

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

11 (G) in subsection (q)(3)— 

12 (i) in subparagraph (A)— 

13 (I) in the subparagraph heading, 

14 by striking ‘‘FIRST PHASE’’ and in15 serting ‘‘PHASE I’’; and 

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

17 inserting ‘‘Phase I’’; and 

18 (ii) in subparagraph (B)— 

19 (I) in the subparagraph heading, 

20 by striking ‘‘SECOND PHASE’’ and in21 serting ‘‘PHASE II’’; and 

22 (II) by striking ‘‘second phase’’ 

23 and inserting ‘‘Phase II’’; 

24 (H) in subsection (r)— 


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1 (i) in the subsection heading, by strik2 ing ‘‘THIRD PHASE’’ and inserting 

3 ‘‘PHASE III’’; 

4 (ii) in paragraph (1)— 

5 (I) in the first sentence— 

6 (aa) by striking ‘‘for the sec7 ond phase’’ and inserting ‘‘for 

8 Phase II’’; 

9 (bb) by striking ‘‘third 

10 phase’’ and inserting ‘‘Phase 

11 III’’; and 

12 (cc) by striking ‘‘second 

13 phase period’’ and inserting 

14 ‘‘Phase II period’’; and 

15 (II) in the second sentence— 

16 (aa) by striking ‘‘second 

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

18 and 

19 (bb) by striking ‘‘third 

20 phase’’ and inserting ‘‘Phase 

21 III’’; and 

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

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

24 and 


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

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

3 (2) in section 34— 

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

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

6 and inserting ‘‘Phase I and Phase II SBIR 

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

8 (B) in subsection (e)(2)(A)— 

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

10 phase awards’’ and all that follows and in11 serting ‘‘Phase I awards (as defined in sec12 tion 9(e));’’; and 

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

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

15 and 

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

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

18 SEC. 108. MAJORITY-VENTURE INVESTMENTS IN SBIR 

19 FIRMS. 

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

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

22 by adding at the end the following: 

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

24 FIRMS.— 

25 ‘‘(1) AUTHORITY AND DETERMINATION.— 


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1 ‘‘(A) IN GENERAL.—Upon a written deter2 mination provided not later than 30 days in ad3 vance to the Administrator and to the Com4 mittee on Small Business and Entrepreneurship 

5 of the Senate and the Committee on Small 

6 Business of the House of Representatives— 

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

8 the National Institutes of Health may 

9 award not more than 18 percent of the 

10 SBIR funds of the National Institutes of 

11 Health allocated in accordance with this 

12 Act, in the first full fiscal year beginning 

13 after the date of enactment of this sub14 section, and each fiscal year thereafter, to 

15 small business concerns that are owned in 

16 majority part by venture capital companies 

17 and that satisfy the qualification require18 ments under paragraph (2) through com19 petitive, merit-based procedures that are 

20 open to all eligible small business concerns; 

21 and 

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

23 agency participating in the SBIR program 

24 may award not more than 8 percent of the 

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1 cated in accordance with this Act, in the 

2 first full fiscal year beginning after the 

3 date of enactment of this subsection, and 

4 each fiscal year thereafter, to small busi5 ness concerns that are majority owned by 

6 venture capital companies and that satisfy 

7 the qualification requirements under para8 graph (2) through competitive, merit-based 

9 procedures that are open to all eligible 

10 small business concerns. 

11 ‘‘(B) DETERMINATION.—A written deter12 mination made under subparagraph (A) shall 

13 explain how the use of the authority under that 

14 subparagraph will induce additional venture 

15 capital funding of small business innovations, 

16 substantially contribute to the mission of the 

17 funding Federal agency, demonstrate a need for 

18 public research, and otherwise fulfill the capital 

19 needs of small business concerns for additional 

20 financing for the SBIR project. 

21 ‘‘(2) QUALIFICATION REQUIREMENTS.—The 

22 Administrator shall establish requirements relating 

23 to the affiliation by small business concerns with 

24 venture capital companies, which may not exclude a 

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1 tion in the program under paragraph (1) on the 

2 basis that the small business concern is owned in 

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

4 United States venture capital company, so long as 

5 no single venture capital company owns more than 

6 49 percent of the small business concern. 

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

8 that is majority owned and controlled by multiple 

9 venture capital companies and qualified for partici10 pation in the program authorized under paragraph 

11 (1) shall— 

12 ‘‘(A) register with the Administrator on 

13 the date that the small business concern sub14 mits an application for an award under the 

15 SBIR program; and 

16 ‘‘(B) indicate whether the small business 

17 concern is registered under subparagraph (A) in 

18 any SBIR proposal. 

19 ‘‘(4) COMPLIANCE.—A Federal agency de20 scribed in paragraph (1) shall collect data regarding 

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

22 and all other categories of awards under the SBIR 

23 program, and the Administrator shall report on the 

24 data and the compliance of each such Federal agen25 cy with the maximum amounts under paragraph (1) 


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1 as part of the annual report by the Administration 

2 under subsection (b)(7). 

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

4 awards more than the amount authorized under 

5 paragraph (1) for a purpose described in paragraph 

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

7 authorized under paragraph (1) shall be transferred 

8 to the funds for general SBIR programs from the 

9 non-SBIR research and development funds of the 

10 Federal agency within 60 days of the date on which 

11 the Federal agency awarded more than the amount 

12 authorized under paragraph (1) for a purpose de13 scribed in paragraph (1).’’. 

14 (b) TECHNICAL AND CONFORMING AMENDMENT.— 

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

16 amended by adding at the end the following: 

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

18 term ‘venture capital company’ means an entity described 

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

20 13, Code of Federal Regulations (or any successor there21 to).’’. 

22 (c) ASSISTANCE FOR DETERMINING AFFILIATES.— 

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

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

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1 page of the website of the Administration or the SBIR 

2 website of the Administration)— 

3 (1) a clear explanation of the SBIR affiliation 

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

5 Regulations; and 

6 (2) contact information for officers or employ7 ees of the Administration who— 

8 (A) upon request, shall review an issue re9 lating to the rules described in paragraph (1); 

10 and 

11 (B) shall respond to a request under sub12 paragraph (A) not later than 20 business days 

13 after the date on which the request is received. 

14 SEC. 109. SBIR AND STTR SPECIAL ACQUISITION PREF15 ERENCE. 

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

17 638(r)) is amended by adding at the end the following: 

18 ‘‘(4) PHASE III AWARDS.—To the greatest ex19 tent practicable, Federal agencies and Federal prime 

20 contractors shall issue Phase III awards relating to 

21 technology, including sole source awards, to the 

22 SBIR and STTR award recipients that developed 

23 the technology.’’. 


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1 SEC. 110. COLLABORATING WITH FEDERAL LABORATORIES 

2 AND RESEARCH AND DEVELOPMENT CEN3 TERS. 

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

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

6 the following: 

7 ‘‘(dd) COLLABORATING WITH FEDERAL LABORA8 TORIES AND RESEARCH AND DEVELOPMENT CENTERS.— 

9 ‘‘(1) AUTHORIZATION.—Subject to the limita10 tions under this section, the head of each partici11 pating Federal agency may make SBIR and STTR 

12 awards to any eligible small business concern that— 

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

14 with a Federal laboratory or federally funded 

15 research and development center for portions of 

16 the activities to be performed under that award; 

17 or 

18 ‘‘(B) has entered into a cooperative re19 search and development agreement (as defined 

20 in section 12(d) of the Stevenson-Wydler Tech21 nology Innovation Act of 1980 (15 U.S.C. 

22 3710a(d))) with a Federal laboratory. 

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

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

25 upon entering into agreement with any Federal 

26 laboratory or any federally funded laboratory or 


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1 research and development center for any por2 tion of the activities to be performed under that 

3 award; 

4 ‘‘(B) approve an agreement between a 

5 small business concern receiving a SBIR or 

6 STTR award and a Federal laboratory or feder7 ally funded laboratory or research and develop8 ment center, if the small business concern per9 forms a lesser portion of the activities to be 

10 performed under that award than required by 

11 this section and by the SBIR Policy Directive 

12 and the STTR Policy Directive of the Adminis13 trator; or 

14 ‘‘(C) approve an agreement that violates 

15 any provision, including any data rights protec16 tions provision, of this section or the SBIR and 

17 the STTR Policy Directives. 

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

19 days after the date of enactment of this subsection, 

20 the Administrator shall modify the SBIR Policy Di21 rective and the STTR Policy Directive issued under 

22 this section to ensure that small business concerns— 

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1 ally funded research and development centers; 

2 and 

3 ‘‘(B) are not mandated to enter into agree4 ment with any Federal laboratory or any feder5 ally funded laboratory or research and develop6 ment center as a condition of an award.’’. 

7 SEC. 111. NOTICE REQUIREMENT. 

8 The head of any Federal agency involved in a case 

9 or controversy before any Federal judicial or administra10 tive tribunal concerning the SBIR program or the STTR 

11 program shall provide timely notice, as determined by the 

12 Administrator, of the case or controversy to the Adminis13 trator. 

14 TITLE II—OUTREACH AND COM15 MERCIALIZATION INITIA16 TIVES 

17 SEC. 201. RURAL AND STATE OUTREACH. 

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

19 (15 U.S.C. 638) is amended by inserting after subsection 

20 (r) the following: 

21 ‘‘(s) OUTREACH.— 

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

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

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

25 awarded to the State under this section during 


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1 the most recent fiscal year for which data is 

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

3 ‘‘(B) that certifies to the Administrator 

4 that the State will, upon receipt of assistance 

5 under this subsection, provide matching funds 

6 from non-Federal sources in an amount that is 

7 not less than 50 percent of the amount provided 

8 under this subsection. 

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

10 available to carry out this section for each of fiscal 

11 years 2010 through 2014, the Administrator may 

12 expend with eligible States not more than 

13 $5,000,000 in each such fiscal year in order to in14 crease the participation of small business concerns 

15 located in those States in the programs under this 

16 section. 

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

18 assistance provided to an eligible State under this 

19 subsection in any fiscal year— 

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

21 percent of the total amount of matching funds 

22 from non-Federal sources provided by the 

23 State; and 

24 ‘‘(B) shall not exceed $100,000. 


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

2 to an eligible State under this subsection shall be 

3 used by the State, in consultation with State and 

4 local departments and agencies, for programs and 

5 activities to increase the participation of small busi6 ness concerns located in the State in the programs 

7 under this section, including— 

8 ‘‘(A) the establishment of quantifiable per9 formance goals, including goals relating to— 

10 ‘‘(i) the number of program awards 

11 under this section made to small business 

12 concerns in the State; and 

13 ‘‘(ii) the total amount of Federal re14 search and development contracts awarded 

15 to small business concerns in the State; 

16 ‘‘(B) the provision of competition outreach 

17 support to small business concerns in the State 

18 that are involved in research and development; 

19 and 

20 ‘‘(C) the development and dissemination of 

21 educational and promotional information relat22 ing to the programs under this section to small 

23 business concerns in the State.’’. 


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1 (b) FEDERAL AND STATE PROGRAM EXTENSION.— 

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

3 is amended— 

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

5 through 2005’’ each place it appears and inserting 

6 ‘‘2010 through 2014’’; and 

7 (2) in subsection (i), by striking ‘‘2005’’ and in8 serting ‘‘2014’’. 

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

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

11 (1) by redesignating subparagraphs (C) and 

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

13 (2) by inserting after subparagraph (B) the fol14 lowing: 

15 ‘‘(C) RURAL AREAS.— 

16 ‘‘(i) IN GENERAL.—Except as pro17 vided in clause (ii), the non-Federal share 

18 of the cost of the activity carried out using 

19 an award or under a cooperative agree20 ment under this section shall be 50 cents 

21 for each Federal dollar that will be directly 

22 allocated by a recipient described in para23 graph (A) to serve small business concerns 

24 located in a rural area. 


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1 ‘‘(ii) ENHANCED RURAL AWARDS.— 

2 For a recipient located in a rural area that 

3 is located in a State described in subpara4 graph (A)(i), the non-Federal share of the 

5 cost of the activity carried out using an 

6 award or under a cooperative agreement 

7 under this section shall be 35 cents for 

8 each Federal dollar that will be directly al9 located by a recipient described in para10 graph (A) to serve small business concerns 

11 located in the rural area. 

12 ‘‘(iii) DEFINITION OF RURAL AREA.— 

13 In this subparagraph, the term ‘rural area’ 

14 has the meaning given that term in section 

15 1393(a)(2)) of the Internal Revenue Code 

16 of 1986.’’. 

17 SEC. 202. SBIR–STEM WORKFORCE DEVELOPMENT GRANT 

18 PILOT PROGRAM. 

19 (a) PILOT PROGRAM ESTABLISHED.—From amounts 

20 made available to carry out this section, the Administrator 

21 shall establish a SBIR–STEM Workforce Development 

22 Grant Pilot Program to encourage the business commu23 nity to provide workforce development opportunities for 

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1 neering, and math (in this section referred to as ‘‘STEM 

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

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

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

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

6 grant under subsection (a) that provides an internship 

7 program for STEM college students. 

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

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

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

11 not more than $10,000 per year. 

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

13 funding under this section, the Administrator shall submit 

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

15 Workforce Development Grant Pilot Program. 

16 (e) AUTHORIZATION OF APPROPRIATIONS.—There 

17 are authorized to be appropriated to carry out this sec18 tion— 

19 (1) $1,000,000 for fiscal year 2011; 

20 (2) $1,000,000 for fiscal year 2012; 

21 (3) $1,000,000 for fiscal year 2013; 

22 (4) $1,000,000 for fiscal year 2014; and 

23 (5) $1,000,000 for fiscal year 2015. 


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1 SEC. 203. TECHNICAL ASSISTANCE FOR AWARDEES. 

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

3 638(q)(3)) is amended— 

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

5 and inserting ‘‘$5,000’’; 

6 (2) in subparagraph (B)— 

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

8 from their SBIR awards,’’; and 

9 (B) by striking ‘‘$4,000 per year’’ and in10 serting ‘‘$5,000 per year, which shall be in ad11 dition to the amount of the recipient’s award’’. 

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

13 ‘‘(C) FLEXIBILITY.—In carrying out sub14 paragraphs (A) and (B), each Federal agency 

15 shall provide the allowable amounts to a recipi16 ent that meets the eligibility requirements 

17 under the applicable subparagraph, if the re18 cipient requests to seek technical assistance 

19 from an individual or entity other than the ven20 dor selected under paragraph (2) by the Fed21 eral agency. 

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

23 not— 

24 ‘‘(i) use the amounts authorized under 

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


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1 selected under paragraph (2) provides the 

2 technical assistance to the recipient; or 

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

4 under paragraph (2) under which the 

5 amount provided for technical assistance is 

6 based on total number of Phase I or Phase 

7 II awards.’’. 

8 SEC. 204. COMMERCIALIZATION PILOT PROGRAM AT DE9 PARTMENT OF DEFENSE. 

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

11 638(y)) is amended— 

12 (1) in paragraph (1)— 

13 (A) by inserting ‘‘or Small Business Tech14 nology Transfer Program’’ after ‘‘Small Busi15 ness Innovation Research Program’’; and 

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

17 ‘‘The authority to create and administer a Com18 mercialization Pilot Program under this sub19 section may not be construed to eliminate or re20 place any other SBIR program or STTR pro21 gram that enhances the insertion or transition 

22 of SBIR or STTR technologies, including any 

23 such program in effect on the date of enact24 ment of the National Defense Authorization Act 


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

2 119 Stat. 3136).’’; 

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

4 Business Technology Transfer Program’’ after 

5 ‘‘Small Business Innovation Research Program’’; 

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

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

8 (4) by inserting after paragraph (4) the fol9 lowing: 

10 ‘‘(5) INSERTION INCENTIVES.—For any con11 tract with a value of not less than $100,000,000, the 

12 Secretary of Defense is authorized to— 

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

14 Phase III technologies in subcontracting plans; 

15 and 

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

17 contract to report the number and dollar 

18 amount of contracts entered into by that prime 

19 contractor for Phase III SBIR or STTR 

20 projects. 

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

22 INSERTION.—The Secretary of Defense shall— 

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

24 Phase II SBIR contracts and the number of 

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1 retary that lead to technology transition into 

2 programs of record or fielded systems; 

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

4 enactment of the SBIR/STTR Reauthorization 

5 Act of 2009, or create new incentives, to en6 courage agency program managers and prime 

7 contractors to meet the goal under subpara8 graph (A); and 

9 ‘‘(C) include in the annual report to Con10 gress the percentage of contracts described in 

11 subparagraph (A) awarded by that Secretary, 

12 and information on the ongoing status of 

13 projects funded through the Commercialization 

14 Pilot Program and efforts to transition these 

15 technologies into programs of record or fielded 

16 systems.’’; and 

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

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

19 2014’’. 

20 SEC. 205. COMMERCIALIZATION PILOT PROGRAM FOR CI21 VILIAN AGENCIES. 

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

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

24 the following: 

25 ‘‘(ee) PILOT PROGRAM.— 


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1 ‘‘(1) AUTHORIZATION.—The head of each cov2 ered Federal agency may set aside not more than 10 

3 percent of the SBIR and STTR funds of such agen4 cy for further technology development, testing, and 

5 evaluation of SBIR and STTR Phase II tech6 nologies. 

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

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

9 agency may not establish a pilot program unless 

10 such agency makes a written application to the 

11 Administrator, not later than 90 days before to 

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

13 program is to be established, that describes a 

14 compelling reason that additional investment in 

15 SBIR or STTR technologies is necessary, in16 cluding unusually high regulatory, systems inte17 gration, or other costs relating to development 

18 or manufacturing of identifiable, highly prom19 ising small business technologies or a class of 

20 such technologies expected to substantially ad21 vance the mission of the agency. 

22 ‘‘(B) DETERMINATION.—The Adminis23 trator shall— 

24 ‘‘(i) make a determination regarding 

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1 graph (A) not later than 30 days before 

2 the first day of the fiscal year for which 

3 the application is submitted; 

4 ‘‘(ii) publish the determination in the 

5 Federal Register; and 

6 ‘‘(iii) make a copy of the determina7 tion and any related materials available to 

8 the Committee on Small Business and En9 trepreneurship of the Senate and the Com10 mittee on Small Business of the House of 

11 Representatives. 

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

13 of a Federal agency may not make an award under 

14 a pilot program in excess of 2 times the dollar 

15 amounts generally established for Phase II awards 

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

17 ‘‘(4) MATCHING.—The head of a Federal agen18 cy may not make an award under a pilot program 

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

20 non-STTR funding which at least matches the 

21 award from the Federal agency is provided for SBIR 

22 or STTR Phase II technology. 

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

24 Federal agency may make an award under a pilot 

25 program to any applicant that is eligible to receive 


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1 a Phase III award related to technology developed in 

2 Phase II of an SBIR or STTR project. 

3 ‘‘(6) REGISTRATION.—Any applicant that re4 ceives an award under a pilot program shall register 

5 with the Administrator in a registry that is available 

6 to the public. 

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

8 a pilot program under this section expires at the end 

9 of fiscal year 2014. 

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

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

12 ‘‘(i) means a Federal agency partici13 pating in the SBIR program or the STTR 

14 program; and 

15 ‘‘(ii) does not include the Department 

16 of Defense; and 

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

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

19 SEC. 206. NANOTECHNOLOGY INITIATIVE. 

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

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

22 by adding at the end the following: 

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

24 agency participating in the SBIR or STTR program shall 


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1 encourage the submission of applications for support of 

2 nanotechnology related projects to such program.’’. 

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

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

5 of this section, is repealed. 

6 SEC. 207. ACCELERATING CURES. 

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

8 amended— 

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

10 and 

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

12 ‘‘SEC. 44. SMALL BUSINESS INNOVATION RESEARCH PRO13 GRAM. 

14 ‘‘(a) NIH CURES PILOT.— 

15 ‘‘(1) ESTABLISHMENT.—An independent advi16 sory board shall be established at the National Acad17 emy of Sciences (in this section referred to as the 

18 ‘advisory board’) to conduct periodic evaluations of 

19 the SBIR program (as that term is defined in sec20 tion 9) of each of the National Institutes of Health 

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

22 and centers for the purpose of improving the man23 agement of the SBIR program through data-driven 

24 assessment. 

25 ‘‘(2) MEMBERSHIP.— 


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

2 shall consist of— 

3 ‘‘(i) the Director of the NIH; 

4 ‘‘(ii) the Director of the SBIR pro5 gram of the NIH; 

6 ‘‘(iii) senior NIH agency managers, 

7 selected by the Director of NIH; 

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

9 Council of the National Academy of 

10 Sciences in consultation with the Associate 

11 Administrator for Technology of the Ad12 ministration and the Director of the Office 

13 of Science and Technology Policy; and 

14 ‘‘(v) owners or operators of small 

15 business concerns that have received an 

16 award under the SBIR program of the 

17 NIH, selected by the Associate Adminis18 trator for Technology of the Administra19 tion. 

20 ‘‘(B) NUMBER OF MEMBERS.—The total 

21 number of members selected under clauses (iii), 

22 (iv), and (v) of subparagraph (A) shall not ex23 ceed 10. 

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

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1 lected under clauses (i), (ii), (iii), and (iv) of 

2 subparagraph (A) shall be equal to the number 

3 of members of the advisory board selected 

4 under subparagraph (A)(v). 

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

6 the evidence-base guiding SBIR program decisions and 

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

8 shall address the gaps and deficiencies in the data collec9 tion concerns identified in the 2007 report of the National 

10 Academies of Science entitled ‘An Assessment of the Small 

11 Business Innovation Research Program at the NIH’. 

12 ‘‘(c) PILOT PROGRAM.— 

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

14 program of the NIH may initiate a pilot program, 

15 under a formal mechanism for designing, imple16 menting, and evaluating pilot programs, to spur in17 novation and to test new strategies that may en18 hance the development of cures and therapies. 

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

20 SBIR program of the NIH may consider conducting 

21 a pilot program to include individuals with success22 ful SBIR program experience in study sections, hir23 ing individuals with small business development ex24 perience for staff positions, separating the commer25 cial and scientific review processes, and examining 


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1 the impact of the trend toward larger awards on the 

2 overall program. 

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

4 NIH shall submit an annual report to Congress and the 

5 advisory board on the activities of the SBIR program of 

6 the NIH under this section. 

7 ‘‘(e) SBIR GRANTS AND CONTRACTS.— 

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

9 contracts under the SBIR program of the NIH each 

10 SBIR program manager shall place an emphasis on 

11 applications that identify products and services that 

12 may enhance the development of cures and thera13 pies. 

14 ‘‘(2) EXAMINATION OF COMMERCIALIZATION

15 AND OTHER METRICS.—The advisory board shall 

16 evaluate the implementation of the requirement 

17 under paragraph (1) by examining increased com18 mercialization and other metrics, to be determined 

19 and collected by the SBIR program of the NIH. 

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

21 practicable, the Director of the SBIR program of 

22 the NIH shall reduce the time period between Phase 

23 I and Phase II funding of grants and contracts 

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


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

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

3 Small Business Act (15 U.S.C. 638)) of the NIH for re4 search or research and development may be used for the 

5 pilot program under subsection (c) and to carry out sub6 section (e). 

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

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

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

10 TITLE III—OVERSIGHT AND 

11 EVALUATION 

12 SEC. 301. STREAMLINING ANNUAL EVALUATION REQUIRE13 MENTS. 

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

15 638(b)), as amended by section 102 of this Act, is amend16 ed— 

17 (1) in paragraph (7)— 

18 (A) by striking ‘‘STTR programs, includ19 ing the data’’ and inserting the following: 

20 ‘‘STTR programs, including— 

21 ‘‘(A) the data’’; 

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

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

24 through ‘‘under each of the SBIR and STTR 


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1 programs, and a description’’ and inserting the 

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

3 ‘‘(B) the number of proposals received 

4 from, and the number and total amount of 

5 awards to, HUBZone small business concerns 

6 and firms with venture capital investment (in7 cluding those majority owned and controlled by 

8 multiple venture capital firms) under each of 

9 the SBIR and STTR programs; 

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

11 each Federal agency is increasing outreach and 

12 awards to firms owned and controlled by women 

13 and minorities under each of the SBIR and 

14 STTR programs; 

15 ‘‘(D) general information about the imple16 mentation and compliance with the allocation of 

17 funds required under subsection (cc) for firms 

18 majority owned and controlled by multiple ven19 ture capital firms under each of the SBIR and 

20 STTR programs; 

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

22 Phase III awards and notices of noncompliance 

23 with the SBIR and the STTR Policy Directives 

24 filed by the Administrator with Federal agen25 cies; and 


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1 ‘‘(F) a description’’; and 

2 (2) by inserting after paragraph (7) the fol3 lowing: 

4 ‘‘(8) to coordinate the implementation of elec5 tronic databases at each of the Federal agencies par6 ticipating in the SBIR program or the STTR pro7 gram, including the technical ability of the partici8 pating agencies to electronically share data;’’. 

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

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

11 638(g)) is amended— 

12 (1) by striking paragraph (10); 

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

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

15 (3) by inserting after paragraph (7) the fol16 lowing: 

17 ‘‘(8) collect annually, and maintain in a com18 mon format in accordance with the simplified report19 ing requirements under subsection (v), such informa20 tion from awardees as is necessary to assess the 

21 SBIR program, including information necessary to 

22 maintain the database described in subsection (k), 

23 including— 

24 ‘‘(A) whether an awardee— 


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

2 owned and controlled by multiple venture 

3 capital firms, and, if so— 

4 ‘‘(I) the amount of venture cap5 ital that the awardee has received as 

6 of the date of the award; and 

7 ‘‘(II) the amount of additional 

8 capital that the awardee has invested 

9 in the SBIR technology; 

10 ‘‘(ii) has an investor that— 

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

12 citizen of the United States or a law13 ful permanent resident of the United 

14 States, and if so, the name of any 

15 such individual; or 

16 ‘‘(II) is a person that is not an 

17 individual and is not organized under 

18 the laws of a State or the United 

19 States, and if so the name of any such 

20 person; 

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

22 woman as a principal investigator; 

23 ‘‘(iv) is owned by a socially or eco24 nomically disadvantaged individual or has 


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1 a socially or economically disadvantaged 

2 individual as a principal investigator; 

3 ‘‘(v) received assistance under the 

4 FAST program under section 34 or the 

5 outreach program under subsection (s); or 

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

7 of an institution of higher education, as 

8 that term is defined in section 101 of the 

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

10 1001); and 

11 ‘‘(B) a justification statement from the 

12 agency, if an awardee receives an award in an 

13 amount that is more than the award guidelines 

14 under this section;’’; and 

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

16 adding ‘‘and’’ at the end. 

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

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

19 638(o)) is amended— 

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

21 following: 

22 ‘‘(9) collect annually, and maintain in a com23 mon format in accordance with the simplified report24 ing requirements under subsection (v), such informa25 tion from applicants and awardees as is necessary to 


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1 assess the STTR program outputs and outcomes, in2 cluding information necessary to maintain the data3 base described in subsection (k), including— 

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

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

6 owned and controlled by multiple venture 

7 capital firms, and, if so— 

8 ‘‘(I) the amount of venture cap9 ital that the applicant or awardee has 

10 received as of the date of the applica11 tion or award, as applicable; and 

12 ‘‘(II) the amount of additional 

13 capital that the applicant or awardee 

14 has invested in the SBIR technology; 

15 ‘‘(ii) has an investor that— 

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

17 citizen of the United States or a law18 ful permanent resident of the United 

19 States, and if so, the name of any 

20 such individual; or 

21 ‘‘(II) is a person that is not an 

22 individual and is not organized under 

23 the laws of a State or the United 

24 States, and if so the name of any such 

25 person; 


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

2 woman as a principal investigator; 

3 ‘‘(iv) is owned by a socially or eco4 nomically disadvantaged individual or has 

5 a socially or economically disadvantaged 

6 individual as a principal investigator; 

7 ‘‘(v) received assistance under the 

8 FAST program under section 34 or the 

9 outreach program under subsection (s); or 

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

11 of an institution of higher education, as 

12 that term is defined in section 101 of the 

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

14 1001); and 

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

16 amount that is more than the award guidelines 

17 under this section, a statement from the agency 

18 that justifies the award amount;’’; 

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

20 end; 

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

22 (4) by redesignating paragraph (16) as para23 graph (15). 


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1 SEC. 304. PUBLIC DATABASE. 

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

3 638(k)(1)) is amended— 

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

5 the end; 

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

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

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

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

10 has received a Phase I or Phase II SBIR or 

11 STTR award from a Federal agency, whether 

12 the small business concern— 

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

14 whether the small business concern is reg15 istered as majority owned and controlled 

16 by multiple venture capital companies as 

17 required under subsection (cc)(3); 

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

19 woman as a principal investigator; 

20 ‘‘(iii) is owned by a socially or eco21 nomically disadvantaged individual or has 

22 a socially or economically disadvantaged 

23 individual as a principal investigator; 

24 ‘‘(iv) received assistance under the 

25 FAST program under section 34 or the 

26 outreach program under subsection (s); or 


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

2 a student of an institution of higher edu3 cation, as that term is defined in section 

4 101 of the Higher Education Act of 1965 

5 (20 U.S.C. 1001).’’. 

6 SEC. 305. GOVERNMENT DATABASE. 

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

8 638(k)(2)) is amended— 

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

10 and (E) as subparagraphs (D), (E), and (F), respec11 tively; 

12 (2) by inserting after subparagraph (B) the fol13 lowing: 

14 ‘‘(C) includes, for each awardee— 

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

16 identifying number assigned to the award17 ee by the Administrator; 

18 ‘‘(ii) whether the awardee has venture 

19 capital, and, if so— 

20 ‘‘(I) the amount of venture cap21 ital as of the date of the award; 

22 ‘‘(II) the percentage of ownership 

23 of the awardee held by a venture cap24 ital firm, including whether the 

25 awardee is majority owned and conVerDate Nov 24 2008 23:56 Jul 06, 2009 Jkt 079200 PO 00000 Frm 00052 Fmt 6652 Sfmt 6401 E:\BILLS\S1233.RS S1233

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1 trolled by multiple venture capital 

2 firms; and 

3 ‘‘(III) the amount of additional 

4 capital that the awardee has invested 

5 in the SBIR technology, which infor6 mation shall be collected on an annual 

7 basis; 

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

9 affiliates of the awardee; 

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

11 awardee; 

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

13 affiliates of the awardee; and 

14 ‘‘(vi) the names of, and the percent15 age of ownership of the awardee held by— 

16 ‘‘(I) any individual who is not a 

17 citizen of the United States or a law18 ful permanent resident of the United 

19 States; or 

20 ‘‘(II) any person that is not an 

21 individual and is not organized under 

22 the laws of a State or the United 

23 States;’’; and 

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


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

2 end; and 

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

4 ‘‘(iv) whether the applicant was ma5 jority owned and controlled by multiple 

6 venture capital firms; and 

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

8 applicant;’’. 

9 SEC. 306. ACCURACY IN FUNDING BASE CALCULATIONS. 

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

11 date of enactment of this Act, and every 3 years there12 after, the Comptroller General of the United States 

13 shall— 

14 (1) conduct a fiscal and management audit of 

15 the SBIR program and the STTR program for the 

16 applicable period to— 

17 (A) determine whether Federal agencies 

18 comply with the expenditure amount require19 ments under subsections (f)(1) and (n)(1) of 

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

21 638), as amended by this Act; 

22 (B) assess the extent of compliance with 

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

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


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1 agencies participating in the SBIR program or 

2 the STTR program and the Administration; 

3 (C) assess whether it would be more con4 sistent and effective to base the amount of the 

5 allocations under the SBIR program and the 

6 STTR program on a percentage of the research 

7 and development budget of a Federal agency, 

8 rather than the extramural budget of the Fed9 eral agency; and 

10 (D) determine the portion of the extra11 mural research or research and development 

12 budget of a Federal agency that each Federal 

13 agency spends for administrative purposes re14 lating to the SBIR program or STTR program, 

15 and for what specific purposes, including the 

16 portion, if any, of such budget the Federal 

17 agency spends for salaries and expenses, travel 

18 to visit applicants, outreach events, marketing, 

19 and technical assistance; and 

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

21 Business and Entrepreneurship of the Senate and 

22 the Committee on Small Business of the House of 

23 Representatives regarding the audit conducted under 

24 paragraph (1), including the assessments required 

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1 mination made under subparagraph (D) of para2 graph (1). 

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

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

5 (1) for the first report submitted under this 

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

7 and ending on September 30 of the last full fiscal 

8 year before the date of enactment of this Act for 

9 which information is available; and 

10 (2) for the second and each subsequent report 

11 submitted under this section, the period— 

12 (A) beginning on October 1 of the first fis13 cal year after the end of the most recent full 

14 fiscal year relating to which a report under this 

15 section was submitted; and 

16 (B) ending on September 30 of the last 

17 full fiscal year before the date of the report. 

18 SEC. 307. CONTINUED EVALUATION BY THE NATIONAL 

19 ACADEMY OF SCIENCES. 

20 Section 108 of the Small Business Reauthorization 

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

22 at the end the following: 

23 ‘‘(e) EXTENSIONS AND ENHANCEMENTS OF AUTHOR24 ITY.— 


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

2 after the date of enactment of the SBIR/STTR Re3 authorization Act of 2009, the head of each agency 

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

5 Small Business Administration, shall cooperatively 

6 enter into an agreement with the National Academy 

7 of Sciences for the National Research Council to 

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

9 make recommendations described in subsection 

10 (a)(2) not later than 4 years after the date of enact11 ment of the SBIR/STTR Reauthorization Act of 

12 2009, and every 4 years thereafter. 

13 ‘‘(2) REPORTING.—An agreement under para14 graph (1) shall require that not later than 4 years 

15 after the date of enactment of the SBIR/STTR Re16 authorization Act of 2009, and every 4 years there17 after, the National Research Council shall submit to 

18 the head of the agency entering into the agreement, 

19 the Committee on Small Business and Entrepre20 neurship of the Senate, and the Committee on Small 

21 Business of the House of Representatives a report 

22 regarding the study conducted under paragraph (1) 

23 and containing the recommendations described in 

24 paragraph (1).’’. 


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1 SEC. 308. TECHNOLOGY INSERTION REPORTING REQUIRE2 MENTS. 

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

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

5 the following: 

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

7 STTR report to Congress by the Administration under 

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

9 made by the Federal agency— 

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

11 the agency or the non-Federal source of capital mak12 ing the Phase III award; 

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

14 individual receiving the Phase III award; and 

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

16 award.’’. 

17 SEC. 309. INTELLECTUAL PROPERTY PROTECTIONS. 

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

19 United States shall conduct a study of the SBIR program 

20 to assess whether— 

21 (1) Federal agencies comply with the data 

22 rights protections for SBIR awardees and the tech23 nologies of SBIR awardees under section 9 of the 

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

25 (2) the laws and policy directives intended to 

26 clarify the scope of data rights, including in protoVerDate Nov 24 2008 23:56 Jul 06, 2009 Jkt 079200 PO 00000 Frm 00058 Fmt 6652 Sfmt 6401 E:\BILLS\S1233.RS S1233

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1 types and mentor-prot ́eg ́e relationships and agree2 ments with Federal laboratories, are sufficient to 

3 protect SBIR awardees; and 

4 (3) there is an effective grievance tracking proc5 ess for SBIR awardees who have grievances against 

6 a Federal agency regarding data rights and a proc7 ess for resolving those grievances. 

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

9 date of enactment of this Act, the Comptroller General 

10 shall submit to the Committee on Small Business and En11 trepreneurship of the Senate and the Committee on Small 

12 Business of the House of Representatives a report regard13 ing the study conducted under subsection (a). 

14 TITLE IV—POLICY DIRECTIVES 

15 SEC. 401. CONFORMING AMENDMENTS TO THE SBIR AND 

16 THE STTR POLICY DIRECTIVES. 

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

18 date of enactment of this Act, the Administrator shall pro19 mulgate amendments to the SBIR Policy Directive and 

20 the STTR Policy Directive to conform such directives to 

21 this Act and the amendments made by this Act. 

22 (b) PUBLISHING SBIR POLICY DIRECTIVE AND THE

23 STTR POLICY DIRECTIVE IN THE FEDERAL REGISTER.— 

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

25 this Act, the Administrator shall publish the amended 


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1 SBIR Policy Directive and the amended STTR Policy Di2 rective in the Federal Register. 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘SBIR/STTR Reauthor5 ization 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 

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 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. 


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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 and 

5 the Administrator thereof, respectively; 

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

7 agency’’, ‘‘Small Business Innovation Research Pro8 gram’’, ‘‘SBIR’’, ‘‘Small Business Technology Trans9 fer Program’’, and ‘‘STTR’’ have the meanings given 

10 such terms in section 9 of the Small Business Act (15 

11 U.S.C. 638); and 

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

13 same meaning as under section 3 of the Small Busi14 ness Act (15 U.S.C. 632). 

15 TITLE I—REAUTHORIZATION OF 

16 THE SBIR AND STTR PROGRAMS 

17 SEC. 101. EXTENSION OF TERMINATION DATES. 

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

19 (15 U.S.C. 638(m)) is amended by striking ‘‘2008’’ and in20 serting ‘‘2023’’. 

21 (b) STTR.—Section 9(n)(1)(A) of the Small Business 

22 Act (15 U.S.C. 638(n)(1)(A)) is amended by striking 

23 ‘‘2009’’ and inserting ‘‘2023’’. 


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

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

3 638(b)) is amended— 

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

5 end; 

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

7 the end and inserting ‘‘; and’’; 

8 (3) by redesignating paragraph (8) as para9 graph (9); and 

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

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

12 carry out the responsibilities of the Administration 

13 under this section, which shall be— 

14 ‘‘(A) headed by the Assistant Administrator 

15 for Technology, who shall report directly to the 

16 Administrator; and 

17 ‘‘(B) independent from the Office of Govern18 ment Contracting of the Administration and suf19 ficiently staffed and funded to comply with the 

20 oversight, reporting, and public database respon21 sibilities assigned to the Office of Technology by 

22 the Administrator.’’. 

23 SEC. 103. SBIR ALLOCATION INCREASE. 

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

25 638(f)) is amended— 

26 (1) in paragraph (1)— 


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1 (A) in the matter preceding subparagraph 

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

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

4 (B) in subparagraph (B), by striking ‘‘and’’ 

5 at the end; and 

6 (C) by striking subparagraph (C) and in7 serting the following: 

8 ‘‘(C) not less than 2.5 percent of such budget 

9 in each of fiscal years 2009 and 2010; 

10 ‘‘(D) not less than 2.6 percent of such budg11 et in fiscal year 2011; 

12 ‘‘(E) not less than 2.7 percent of such budg13 et in fiscal year 2012; 

14 ‘‘(F) not less than 2.8 percent of such budg15 et in fiscal year 2013; 

16 ‘‘(G) not less than 2.9 percent of such budg17 et in fiscal year 2014; 

18 ‘‘(H) not less than 3.0 percent of such budg19 et in fiscal year 2015; 

20 ‘‘(I) not less than 3.1 percent of such budget 

21 in fiscal year 2016; 

22 ‘‘(J) not less than 3.2 percent of such budget 

23 in fiscal year 2017; 

24 ‘‘(K) not less than 3.3 percent of such budg25 et in fiscal year 2018; 


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1 ‘‘(L) not less than 3.4 percent of such budg2 et in fiscal year 2019; and 

3 ‘‘(M) not less than 3.5 percent of such budg4 et in fiscal year 2020 and each fiscal year there5 after,’’; and 

6 (2) in paragraph (2)— 

7 (A) by redesignating subparagraphs (A) 

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

9 adjusting the margins accordingly; 

10 (B) by striking ‘‘A Federal agency’’ and in11 serting the following: 

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

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

14 ‘‘(B) DEPARTMENT OF DEFENSE AND DE15 PARTMENT OF ENERGY.—For the Department of 

16 Defense and the Department of Energy, to the 

17 greatest extent practicable, the percentage of the 

18 extramural budget in excess of 2.5 percent re19 quired to be expended with small business con20 cerns under subparagraphs (D) through (M) of 

21 paragraph (1)— 

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

23 or Phase II awards; and 

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

25 further the readiness levels of technologies 


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1 developed under Phase II awards, including 

2 conducting testing and evaluation to pro3 mote the transition of such technologies into 

4 commercial or defense products, or systems 

5 furthering the mission needs of the Depart6 ment of Defense or the Department of En7 ergy, as the case may be.’’. 

8 SEC. 104. STTR ALLOCATION INCREASE. 

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

10 U.S.C. 638(n)(1)(B)) is amended— 

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

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

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

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

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

16 and 2012; 

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

18 and 2014; and 

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

20 and each fiscal year thereafter.’’. 

21 SEC. 105. SBIR AND STTR AWARD LEVELS. 

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

23 Small Business Act (15 U.S.C. 638(j)(2)(D)) is amended— 

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

25 ‘‘$150,000’’; and 


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

2 ‘‘$1,000,000’’. 

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

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

5 amended— 

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

7 ‘‘$150,000’’; and 

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

9 ‘‘$1,000,000’’. 

10 (c) TRIENNIAL ADJUSTMENTS.—Section 9 of the Small 

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

12 (1) in subsection (j)(2)(D)— 

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

14 years’’; and 

15 (B) by striking ‘‘and programmatic consid16 erations’’; and 

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

18 ‘‘greater or lesser amounts to be awarded at the dis19 cretion of the awarding agency,’’ and inserting ‘‘an 

20 adjustment for inflation of such amounts once every 

21 3 years,’’. 

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

23 the Small Business Act (15 U.S.C. 638) is amended by add24 ing at the end the following: 

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


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

2 an award under the SBIR program or the STTR pro3 gram if the size of the award exceeds the award guide4 lines established under this section by more than 50 

5 percent. 

6 ‘‘(2) MAINTAINANCE OF INFORMATION.—Partici7 pating agencies shall maintain information on 

8 awards exceeding the guidelines established under this 

9 section, including— 

10 ‘‘(A) the amount of each award; 

11 ‘‘(B) a justification for exceeding the award 

12 amount; 

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

14 award recipient; and 

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

16 venture capital investment and, if so, whether 

17 the recipient is majority-owned and controlled 

18 by multiple venture capital companies. 

19 ‘‘(3) REPORTS.—The Administrator shall in20 clude the information described in paragraph (2) in 

21 the annual report of the Administrator to Congress. 

22 ‘‘(4) RULE OF CONSTRUCTION.—Nothing in this 

23 subsection shall be construed to prevent a Federal 

24 agency from supplementing an award under the 

25 SBIR program or the STTR program using funds of 


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1 the Federal agency that are not part of the SBIR pro2 gram or the STTR program of the Federal agency.’’. 

3 SEC. 106. AGENCY AND PROGRAM COLLABORATION. 

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

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

6 the following: 

7 ‘‘(bb) SUBSEQUENT PHASES.— 

8 ‘‘(1) AGENCY COLLABORATION.—A small business 

9 concern that received an award from a Federal agen10 cy under this section shall be eligible to receive an 

11 award for a subsequent phase from another Federal 

12 agency, if the head of each relevant Federal agency or 

13 the relevant component of the Federal agency makes 

14 a written determination that the topics of the relevant 

15 awards are the same and both agencies report the 

16 awards to the Administrator for inclusion in the pub17 lic database under subsection (k). 

18 ‘‘(2) SBIR AND STTR COLLABORATION.—A small 

19 business concern which received an award under this 

20 section under the SBIR program or the STTR pro21 gram may receive an award under this section for a 

22 subsequent phase in either the SBIR program or the 

23 STTR program and the participating agency or 

24 agencies shall report the awards to the Administrator 


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1 for inclusion in the public database under subsection 

2 (k).’’. 

3 SEC. 107. ELIMINATION OF PHASE II INVITATIONS. 

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

5 Act (15 U.S.C. 638(e)) is amended— 

6 (1) in paragraph (4)(B), by striking ‘‘to further’’ 

7 and inserting: ‘‘which shall not include any invita8 tion, pre-screening, pre-selection, or down-selection 

9 process for eligibility for the second phase, that will 

10 further’’; and 

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

12 develop proposed ideas to’’ and inserting ‘‘which shall 

13 not include any invitation, pre-screening, pre-selec14 tion, or down-selection process for eligibility for the 

15 second phase, that will further develop proposals 

16 that’’. 

17 (b) TECHNICAL AND CONFORMING AMENDMENTS.— 

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

19 (1) in section 9— 

20 (A) in subsection (e)— 

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

22 ‘‘and’’ at the end; 

23 (ii) in paragraph (9)— 


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

2 third phase’’ and inserting ‘‘Phase II 

3 or Phase III’’; and 

4 (II) by striking the period at the 

5 end and inserting a semicolon; and 

6 (iii) by adding at the end the fol7 lowing: 

8 ‘‘(10) the term ‘Phase I’ means— 

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

10 first phase described in paragraph (4)(A); and 

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

12 first phase described in paragraph (6)(A); 

13 ‘‘(11) the term ‘Phase II’ means— 

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

15 second phase described in paragraph (4)(B); and 

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

17 second phase described in paragraph (6)(B); and 

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

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

20 third phase described in paragraph (4)(C); and 

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

22 third phase described in paragraph (6)(C).’’; 

23 (B) in subsection (j)— 

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

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


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1 (ii) in paragraph (2)— 

2 (I) in subparagraph (B)— 

3 (aa) by striking ‘‘the third 

4 phase’’ each place it appears and 

5 inserting ‘‘Phase III’’; and 

6 (bb) by striking ‘‘the second 

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

8 (II) in subparagraph (D)— 

9 (aa) by striking ‘‘the first 

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

11 and 

12 (bb) by striking ‘‘the second 

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

14 (III) in subparagraph (F), by 

15 striking ‘‘the third phase’’ and insert16 ing ‘‘Phase III’’; 

17 (IV) in subparagraph (G)— 

18 (aa) by striking ‘‘the first 

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

20 and 

21 (bb) by striking ‘‘the second 

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

23 and 

24 (V) in subparagraph (H)— 


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1 (aa) by striking ‘‘the first 

2 phase’’ and inserting ‘‘Phase I’’; 

3 (bb) by striking ‘‘second 

4 phase’’ each place it appears and 

5 inserting ‘‘Phase II’’; and 

6 (cc) by striking ‘‘third 

7 phase’’ and inserting ‘‘Phase III’’; 

8 and 

9 (iii) in paragraph (3)— 

10 (I) in subparagraph (A)— 

11 (aa) by striking ‘‘the first 

12 phase (as described in subsection 

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

14 I’’; 

15 (bb) by striking ‘‘the second 

16 phase (as described in subsection 

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

18 II’’; and 

19 (cc) by striking ‘‘the third 

20 phase (as described in subsection 

21 (e)(4)(C))’’ and inserting ‘‘Phase 

22 III’’; and 

23 (II) in subparagraph (B), by 

24 striking ‘‘second phase’’ and inserting 

25 ‘‘Phase II’’; 


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1 (C) in subsection (k)— 

2 (i) by striking ‘‘first phase’’ each place 

3 it appears and inserting ‘‘Phase I’’; and 

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

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

6 (D) in subsection (l)(2)— 

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

8 inserting ‘‘Phase I’’; and 

9 (ii) by striking ‘‘the second phase’’ and 

10 inserting ‘‘Phase II’’; 

11 (E) in subsection (o)(13)— 

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

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

14 and 

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

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

17 (F) in subsection (p)— 

18 (i) in paragraph (2)(B)— 

19 (I) in clause (vi)— 

20 (aa) by striking ‘‘the second 

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

22 and 

23 (bb) by striking ‘‘the third 

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

25 and 


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1 (II) in clause (ix)— 

2 (aa) by striking ‘‘the first 

3 phase’’ and inserting ‘‘Phase I’’; 

4 and 

5 (bb) by striking ‘‘the second 

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

7 and 

8 (ii) in paragraph (3)— 

9 (I) by striking ‘‘the first phase (as 

10 described in subsection (e)(6)(A))’’ and 

11 inserting ‘‘Phase I’’; 

12 (II) by striking ‘‘the second phase 

13 (as described in subsection (e)(6)(B))’’ 

14 and inserting ‘‘Phase II’’; and 

15 (III) by striking ‘‘the third phase 

16 (as described in subsection (e)(6)(A))’’ 

17 and inserting ‘‘Phase III’’; 

18 (G) in subsection (q)(3)— 

19 (i) in subparagraph (A)— 

20 (I) in the subparagraph heading, 

21 by striking ‘‘FIRST PHASE’’ and insert22 ing ‘‘PHASE I’’; and 

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

24 inserting ‘‘Phase I’’; and 

25 (ii) in subparagraph (B)— 


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1 (I) in the subparagraph heading, 

2 by striking ‘‘SECOND PHASE’’ and in3 serting ‘‘PHASE II’’; and 

4 (II) by striking ‘‘second phase’’ 

5 and inserting ‘‘Phase II’’; 

6 (H) in subsection (r)— 

7 (i) in the subsection heading, by strik8 ing ‘‘THIRD PHASE’’ and inserting ‘‘PHASE

9 III’’; 

10 (ii) in paragraph (1)— 

11 (I) in the first sentence— 

12 (aa) by striking ‘‘for the sec13 ond phase’’ and inserting ‘‘for 

14 Phase II’’; 

15 (bb) by striking ‘‘third 

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

17 and 

18 (cc) by striking ‘‘second 

19 phase period’’ and inserting 

20 ‘‘Phase II period’’; and 

21 (II) in the second sentence— 

22 (aa) by striking ‘‘second 

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

24 and 


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1 (bb) by striking ‘‘third 

2 phase’’ and inserting ‘‘Phase III’’; 

3 and 

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

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

6 and 

7 (I) in subsection (u)(2)(B), by striking ‘‘the 

8 first phase’’ and inserting ‘‘Phase I’’; 

9 (2) in section 34— 

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

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

12 and inserting ‘‘Phase I and Phase II SBIR 

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

14 (B) in subsection (e)(2)(A)— 

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

16 phase awards’’ and all that follows and in17 serting ‘‘Phase I awards (as defined in sec18 tion 9(e));’’; and 

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

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

21 and 

22 (3) in section 35(c)(2)(B)(vii), by striking ‘‘third 

23 phase’’ and inserting ‘‘Phase III’’. 


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1 SEC. 108. MAJORITY-VENTURE INVESTMENTS IN SBIR 

2 FIRMS. 

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

4 (15 U.S.C. 638), as amended by this Act, is amended by 

5 adding at the end the following: 

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

7 FIRMS.— 

8 ‘‘(1) AUTHORITY AND DETERMINATION.— 

9 ‘‘(A) IN GENERAL.—Upon a written deter10 mination provided not later than 30 days in ad11 vance to the Administrator and to the Committee 

12 on Small Business and Entrepreneurship of the 

13 Senate and the Committee on Small Business of 

14 the House of Representatives— 

15 ‘‘(i) the Director of the National Insti16 tutes of Health may award not more than 

17 18 percent of the SBIR funds of the Na18 tional Institutes of Health allocated in ac19 cordance with this Act, in the first full fis20 cal year beginning after the date of enact21 ment of this subsection, and each fiscal year 

22 thereafter, to small business concerns that 

23 are owned in majority part by venture cap24 ital companies and that satisfy the quali25 fication requirements under paragraph (2) 

26 through competitive, merit-based procedures 


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1 that are open to all eligible small business 

2 concerns; and 

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

4 agency participating in the SBIR program 

5 may award not more than 8 percent of the 

6 SBIR funds of the Federal agency allocated 

7 in accordance with this Act, in the first full 

8 fiscal year beginning after the date of enact9 ment of this subsection, and each fiscal year 

10 thereafter, to small business concerns that 

11 are majority owned by venture capital com12 panies and that satisfy the qualification re13 quirements under paragraph (2) through 

14 competitive, merit-based procedures that are 

15 open to all eligible small business concerns. 

16 ‘‘(B) DETERMINATION.—A written deter17 mination made under subparagraph (A) shall 

18 explain how the use of the authority under that 

19 subparagraph will induce additional venture 

20 capital funding of small business innovations, 

21 substantially contribute to the mission of the 

22 funding Federal agency, demonstrate a need for 

23 public research, and otherwise fulfill the capital 

24 needs of small business concerns for additional 

25 financing for the SBIR project. 


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1 ‘‘(2) QUALIFICATION REQUIREMENTS.—The Ad2 ministrator shall establish requirements relating to 

3 the affiliation by small business concerns with venture 

4 capital companies, which may not exclude a United 

5 States small business concern from participation in 

6 the program under paragraph (1) on the basis that 

7 the small business concern is owned in majority part 

8 by, or controlled by, more than 1 United States ven9 ture capital company, so long as no single venture 

10 capital company owns more than 49 percent of the 

11 small business concern. 

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

13 that is majority owned and controlled by multiple 

14 venture capital companies and qualified for partici15 pation in the program authorized under paragraph 

16 (1) shall— 

17 ‘‘(A) register with the Administrator on the 

18 date that the small business concern submits an 

19 application for an award under the SBIR pro20 gram; and 

21 ‘‘(B) indicate whether the small business 

22 concern is registered under subparagraph (A) in 

23 any SBIR proposal. 

24 ‘‘(4) COMPLIANCE.—A Federal agency described 

25 in paragraph (1) shall collect data regarding the 


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1 number and dollar amounts of phase I, phase II, and 

2 all other categories of awards under the SBIR pro3 gram, and the Administrator shall report on the data 

4 and the compliance of each such Federal agency with 

5 the maximum amounts under paragraph (1) as part 

6 of the annual report by the Administration under 

7 subsection (b)(7). 

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

9 awards more than the amount authorized under para10 graph (1) for a purpose described in paragraph (1), 

11 the amount awarded in excess of the amount author12 ized under paragraph (1) shall be transferred to the 

13 funds for general SBIR programs from the non-SBIR 

14 research and development funds of the Federal agency 

15 within 60 days of the date on which the Federal agen16 cy awarded more than the amount authorized under 

17 paragraph (1) for a purpose described in paragraph 

18 (1).’’. 

19 (b) TECHNICAL AND CONFORMING AMENDMENT.—Sec20 tion 3 of the Small Business Act (15 U.S.C. 632) is amend21 ed by adding at the end the following: 

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

23 term ‘venture capital company’ means an entity described 

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

25 13, Code of Federal Regulations (or any successor thereto).’’. 


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1 (c) ASSISTANCE FOR DETERMINING AFFILIATES.—Not 

2 later than 30 days after the date of enactment of this Act, 

3 the Administrator shall post on the website of the Adminis4 tration (with a direct link displayed on the homepage of 

5 the website of the Administration or the SBIR website of 

6 the Administration)— 

7 (1) a clear explanation of the SBIR affiliation 

8 rules under part 121 of title 13, Code of Federal Reg9 ulations; and 

10 (2) contact information for officers or employees 

11 of the Administration who— 

12 (A) upon request, shall review an issue re13 lating to the rules described in paragraph (1); 

14 and 

15 (B) shall respond to a request under sub16 paragraph (A) not later than 20 business days 

17 after the date on which the request is received. 

18 SEC. 109. SBIR AND STTR SPECIAL ACQUISITION PREF19 ERENCE. 

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

21 638(r)) is amended by adding at the end the following: 

22 ‘‘(4) PHASE III AWARDS.—To the greatest extent 

23 practicable, Federal agencies and Federal prime con24 tractors shall issue Phase III awards relating to tech25 nology, including sole source awards, to the SBIR 


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1 and STTR award recipients that developed the tech2 nology.’’. 

3 SEC. 110. COLLABORATING WITH FEDERAL LABORATORIES 

4 AND RESEARCH AND DEVELOPMENT CEN5 TERS. 

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 ‘‘(dd) COLLABORATING WITH FEDERAL LABORA10 TORIES AND RESEARCH AND DEVELOPMENT CENTERS.— 

11 ‘‘(1) AUTHORIZATION.—Subject to the limita12 tions under this section, the head of each partici13 pating Federal agency may make SBIR and STTR 

14 awards to any eligible small business concern that— 

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

16 with a Federal laboratory or federally funded re17 search and development center for portions of the 

18 activities to be performed under that award; or 

19 ‘‘(B) has entered into a cooperative research 

20 and development agreement (as defined in sec21 tion 12(d) of the Stevenson-Wydler Technology 

22 Innovation Act of 1980 (15 U.S.C. 3710a(d))) 

23 with a Federal laboratory. 

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


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

2 upon entering into agreement with any Federal 

3 laboratory or any federally funded laboratory or 

4 research and development center for any portion 

5 of the activities to be performed under that 

6 award; 

7 ‘‘(B) approve an agreement between a small 

8 business concern receiving a SBIR or STTR 

9 award and a Federal laboratory or federally 

10 funded laboratory or research and development 

11 center, if the small business concern performs a 

12 lesser portion of the activities to be performed 

13 under that award than required by this section 

14 and by the SBIR Policy Directive and the STTR 

15 Policy Directive of the Administrator; or 

16 ‘‘(C) approve an agreement that violates 

17 any provision, including any data rights protec18 tions provision, of this section or the SBIR and 

19 the STTR Policy Directives. 

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

21 days after the date of enactment of this subsection, the 

22 Administrator shall modify the SBIR Policy Direc23 tive and the STTR Policy Directive issued under this 

24 section to ensure that small business concerns— 


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1 ‘‘(A) have the flexibility to use the resources 

2 of the Federal laboratories and federally funded 

3 research and development centers; and 

4 ‘‘(B) are not mandated to enter into agree5 ment with any Federal laboratory or any feder6 ally funded laboratory or research and develop7 ment center as a condition of an award.’’. 

8 SEC. 111. NOTICE REQUIREMENT. 

9 The head of any Federal agency involved in a case or 

10 controversy before any Federal judicial or administrative 

11 tribunal concerning the SBIR program or the STTR pro12 gram shall provide timely notice, as determined by the Ad13 ministrator, of the case or controversy to the Administrator. 

14 TITLE II—OUTREACH AND COM15 MERCIALIZATION INITIA16 TIVES 

17 SEC. 201. RURAL AND STATE OUTREACH. 

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

19 (15 U.S.C. 638) is amended by inserting after subsection 

20 (r) the following: 

21 ‘‘(s) OUTREACH.— 

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

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

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

25 awarded to the State under this section during 


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1 the most recent fiscal year for which data is 

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

3 ‘‘(B) that certifies to the Administrator that 

4 the State will, upon receipt of assistance under 

5 this subsection, provide matching funds from 

6 non-Federal sources in an amount that is not 

7 less than 50 percent of the amount provided 

8 under this subsection. 

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

10 available to carry out this section for each of fiscal 

11 years 2010 through 2014, the Administrator may ex12 pend with eligible States not more than $5,000,000 in 

13 each such fiscal year in order to increase the partici14 pation of small business concerns located in those 

15 States in the programs under this section. 

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

17 assistance provided to an eligible State under this 

18 subsection in any fiscal year— 

19 ‘‘(A) shall be equal to not more than 50 per20 cent of the total amount of matching funds from 

21 non-Federal sources provided by the State; and 

22 ‘‘(B) shall not exceed $100,000. 

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

24 to an eligible State under this subsection shall be used 

25 by the State, in consultation with State and local deVerDate Nov 24 2008 23:56 Jul 06, 2009 Jkt 079200 PO 00000 Frm 00085 Fmt 6652 Sfmt 6203 E:\BILLS\S1233.RS S1233

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1 partments and agencies, for programs and activities 

2 to increase the participation of small business con3 cerns located in the State in the programs under this 

4 section, including— 

5 ‘‘(A) the establishment of quantifiable per6 formance goals, including goals relating to— 

7 ‘‘(i) the number of program awards 

8 under this section made to small business 

9 concerns in the State; and 

10 ‘‘(ii) the total amount of Federal re11 search and development contracts awarded 

12 to small business concerns in the State; 

13 ‘‘(B) the provision of competition outreach 

14 support to small business concerns in the State 

15 that are involved in research and development; 

16 and 

17 ‘‘(C) the development and dissemination of 

18 educational and promotional information relat19 ing to the programs under this section to small 

20 business concerns in the State.’’. 

21 (b) FEDERAL AND STATE PROGRAM EXTENSION.— 

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

23 amended— 


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

2 2005’’ each place it appears and inserting ‘‘2010 

3 through 2014’’; and 

4 (2) in subsection (i), by striking ‘‘2005’’ and in5 serting ‘‘2014’’. 

6 (c) MATCHING REQUIREMENTS.—Section 34(e)(2) of 

7 the Small Business Act (15 U.S.C. 657d(e)(2)) is amend8 ed— 

9 (1) in subparagraph (A)— 

10 (A) in clause (i), by striking ‘‘50 cents’’ and 

11 inserting ‘‘35 cents’’; and 

12 (B) in clause (iii), by striking ‘‘75 cents’’ 

13 and inserting ‘‘50 cents’’; 

14 (2) in subparagraph (B), by striking ‘‘50 cents’’ 

15 and inserting ‘‘35 cents’’; 

16 (3) by redesignating subparagraphs (C) and (D) 

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

18 (4) by inserting after subparagraph (B) the fol19 lowing: 

20 ‘‘(C) RURAL AREAS.— 

21 ‘‘(i) IN GENERAL.—Except as provided 

22 in clause (ii), the non-Federal share of the 

23 cost of the activity carried out using an 

24 award or under a cooperative agreement 

25 under this section shall be 35 cents for each 


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1 Federal dollar that will be directly allocated 

2 by a recipient described in paragraph (A) 

3 to serve small business concerns located in 

4 a rural area. 

5 ‘‘(ii) ENHANCED RURAL AWARDS.—For 

6 a recipient located in a rural area that is 

7 located in a State described in subpara8 graph (A)(i), the non-Federal share of the 

9 cost of the activity carried out using an 

10 award or under a cooperative agreement 

11 under this section shall be 15 cents for each 

12 Federal dollar that will be directly allocated 

13 by a recipient described in paragraph (A) 

14 to serve small business concerns located in 

15 the rural area. 

16 ‘‘(iii) DEFINITION OF RURAL AREA.— 

17 In this subparagraph, the term ‘rural area’ 

18 has the meaning given that term in section 

19 1393(a)(2)) of the Internal Revenue Code of 

20 1986.’’. 

21 SEC. 202. SBIR–STEM WORKFORCE DEVELOPMENT GRANT 

22 PILOT PROGRAM. 

23 (a) PILOT PROGRAM ESTABLISHED.—From amounts 

24 made available to carry out this section, the Administrator 

25 shall establish a SBIR–STEM Workforce Development 


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1 Grant Pilot Program to encourage the business community 

2 to provide workforce development opportunities for college 

3 students, in the fields of science, technology, engineering, 

4 and math (in this section referred to as ‘‘STEM college stu5 dents’’), by providing a SBIR bonus grant. 

6 (b) ELIGIBLE ENTITIES DEFINED.—In this section the 

7 term ‘‘eligible entity’’ means a grantee receiving a grant 

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

9 under subsection (a) that provides an internship program 

10 for STEM college students. 

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

12 grant equal to 10 percent of either a Phase I or Phase II 

13 grant, as applicable, with a total award maximum of not 

14 more than $10,000 per year. 

15 (d) EVALUATION.—Following the fourth year of fund16 ing under this section, the Administrator shall submit a 

17 report to Congress on the results of the SBIR–STEM Work18 force Development Grant Pilot Program. 

19 (e) AUTHORIZATION OF APPROPRIATIONS.—There are 

20 authorized to be appropriated to carry out this section— 

21 (1) $1,000,000 for fiscal year 2011; 

22 (2) $1,000,000 for fiscal year 2012; 

23 (3) $1,000,000 for fiscal year 2013; 

24 (4) $1,000,000 for fiscal year 2014; and 

25 (5) $1,000,000 for fiscal year 2015. 


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1 SEC. 203. TECHNICAL ASSISTANCE FOR AWARDEES. 

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

3 638(q)(3)) is amended— 

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

5 and inserting ‘‘$5,000’’; 

6 (2) in subparagraph (B)— 

7 (A) by striking ‘‘, with funds available from 

8 their SBIR awards,’’; and 

9 (B) by striking ‘‘$4,000 per year’’ and in10 serting ‘‘$5,000 per year, which shall be in addi11 tion to the amount of the recipient’s award’’; 

12 and 

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

14 ‘‘(C) FLEXIBILITY.—In carrying out sub15 paragraphs (A) and (B), each Federal agency 

16 shall provide the allowable amounts to a recipi17 ent that meets the eligibility requirements under 

18 the applicable subparagraph, if the recipient re19 quests to seek technical assistance from an indi20 vidual or entity other than the vendor selected 

21 under paragraph (2) by the Federal agency. 

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

23 not— 

24 ‘‘(i) use the amounts authorized under 

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


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1 selected under paragraph (2) provides the 

2 technical assistance to the recipient; or 

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

4 under paragraph (2) under which the 

5 amount provided for technical assistance is 

6 based on total number of Phase I or Phase 

7 II awards.’’. 

8 SEC. 204. COMMERCIALIZATION PROGRAM AT DEPARTMENT 

9 OF DEFENSE. 

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

11 638(y)) is amended— 

12 (1) in the subsection heading, by striking 

13 ‘‘PILOT’’; 

14 (2) by striking ‘‘Pilot’’ each place that term ap15 pears; 

16 (3) in paragraph (1)— 

17 (A) by inserting ‘‘or Small Business Tech18 nology Transfer Program’’ after ‘‘Small Business 

19 Innovation Research Program’’; and 

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

21 ‘‘The authority to create and administer a Com22 mercialization Program under this subsection 

23 may not be construed to eliminate or replace any 

24 other SBIR program or STTR program that en25 hances the insertion or transition of SBIR or 


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1 STTR technologies, including any such program 

2 in effect on the date of enactment of the National 

3 Defense Authorization Act for Fiscal Year 2006 

4 (Public Law 109–163; 119 Stat. 3136).’’; 

5 (4) in paragraph (2), by inserting ‘‘or Small 

6 Business Technology Transfer Program’’ after ‘‘Small 

7 Business Innovation Research Program’’; 

8 (5) in paragraph (4), by inserting ‘‘or Small 

9 Business Technology Transfer Program’’ after ‘‘Small 

10 Business Innovation Research Program’’; 

11 (6) by striking paragraph (6); 

12 (7) by redesignating paragraph (5) as para13 graph (7); and 

14 (8) by inserting after paragraph (4) the fol15 lowing: 

16 ‘‘(5) INSERTION INCENTIVES.—For any contract 

17 with a value of not less than $100,000,000, the Sec18 retary of Defense is authorized to— 

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

20 Phase III technologies in subcontracting plans; 

21 and 

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

23 contract to report the number and dollar amount 

24 of contracts entered into by that prime con25 tractor for Phase III SBIR or STTR projects. 


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1 ‘‘(6) GOAL FOR SBIR AND STTR TECHNOLOGY IN2 SERTION.—The Secretary of Defense shall— 

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

4 Phase II SBIR contracts and the number of 

5 Phase II STTR contracts awarded by that Sec6 retary that lead to technology transition into 

7 programs of record or fielded systems; 

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

9 enactment of the SBIR/STTR Reauthorization 

10 Act of 2009, or create new incentives, to encour11 age agency program managers and prime con12 tractors to meet the goal under subparagraph 

13 (A); and 

14 ‘‘(C) include in the annual report to Con15 gress the percentage of contracts described in sub16 paragraph (A) awarded by that Secretary, and 

17 information on the ongoing status of projects 

18 funded through the Commercialization Program 

19 and efforts to transition these technologies into 

20 programs of record or fielded systems.’’. 

21 SEC. 205. COMMERCIALIZATION PILOT PROGRAM FOR CI22 VILIAN AGENCIES. 

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

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

25 the following: 


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1 ‘‘(ee) PILOT PROGRAM.— 

2 ‘‘(1) AUTHORIZATION.—The head of each covered 

3 Federal agency may set aside not more than 10 per4 cent of the SBIR and STTR funds of such agency for 

5 further technology development, testing, and evalua6 tion of SBIR and STTR Phase II technologies. 

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

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

9 agency may not establish a pilot program unless 

10 such agency makes a written application to the 

11 Administrator, not later than 90 days before to 

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

13 program is to be established, that describes a 

14 compelling reason that additional investment in 

15 SBIR or STTR technologies is necessary, includ16 ing unusually high regulatory, systems integra17 tion, or other costs relating to development or 

18 manufacturing of identifiable, highly promising 

19 small business technologies or a class of such 

20 technologies expected to substantially advance the 

21 mission of the agency. 

22 ‘‘(B) DETERMINATION.—The Administrator 

23 shall— 

24 ‘‘(i) make a determination regarding 

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1 graph (A) not later than 30 days before the 

2 first day of the fiscal year for which the ap3 plication is submitted; 

4 ‘‘(ii) publish the determination in the 

5 Federal Register; and 

6 ‘‘(iii) make a copy of the determina7 tion and any related materials available to 

8 the Committee on Small Business and En9 trepreneurship of the Senate and the Com10 mittee on Small Business of the House of 

11 Representatives. 

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

13 a Federal agency may not make an award under a 

14 pilot program in excess of 3 times the dollar amounts 

15 generally established for Phase II awards under sub16 section (j)(2)(D) or (p)(2)(B)(ix). 

17 ‘‘(4) MATCHING.—The head of a Federal agency 

18 may not make an award under a pilot program for 

19 SBIR or STTR Phase II technology that will be ac20 quired by the Federal Government unless new private, 

21 Federal non-SBIR, or Federal non-STTR funding 

22 that at least matches the award from the Federal 

23 agency is provided for the SBIR or STTR Phase II 

24 technology. 


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

2 Federal agency may make an award under a pilot 

3 program to any applicant that is eligible to receive 

4 a Phase III award related to technology developed in 

5 Phase II of an SBIR or STTR project. 

6 ‘‘(6) REGISTRATION.—Any applicant that re7 ceives an award under a pilot program shall register 

8 with the Administrator in a registry that is available 

9 to the public. 

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

11 a pilot program under this section expires at the end 

12 of fiscal year 2014. 

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

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

15 ‘‘(i) means a Federal agency partici16 pating in the SBIR program or the STTR 

17 program; and 

18 ‘‘(ii) does not include the Department 

19 of Defense; and 

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

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

22 SEC. 206. NANOTECHNOLOGY INITIATIVE. 

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

24 (15 U.S.C. 638), as amended by this Act, is amended by 

25 adding at the end the following: 


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

2 agency participating in the SBIR or STTR program shall 

3 encourage the submission of applications for support of 

4 nanotechnology related projects to such program.’’. 

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

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

7 this section, is repealed. 

8 SEC. 207. ACCELERATING CURES. 

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

10 amended— 

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

12 and 

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

14 ‘‘SEC. 44. SMALL BUSINESS INNOVATION RESEARCH PRO15 GRAM. 

16 ‘‘(a) NIH CURES PILOT.— 

17 ‘‘(1) ESTABLISHMENT.—An independent advi18 sory board shall be established at the National Acad19 emy of Sciences (in this section referred to as the ‘ad20 visory board’) to conduct periodic evaluations of the 

21 SBIR program (as that term is defined in section 9) 

22 of each of the National Institutes of Health (referred 

23 to in this section as the ‘NIH’) institutes and centers 

24 for the purpose of improving the management of the 

25 SBIR program through data-driven assessment. 


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1 ‘‘(2) MEMBERSHIP.— 

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

3 shall consist of— 

4 ‘‘(i) the Director of the NIH; 

5 ‘‘(ii) the Director of the SBIR program 

6 of the NIH; 

7 ‘‘(iii) senior NIH agency managers, se8 lected by the Director of NIH; 

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

10 Council of the National Academy of 

11 Sciences in consultation with the Associate 

12 Administrator for Technology of the Admin13 istration and the Director of the Office of 

14 Science and Technology Policy; and 

15 ‘‘(v) owners or operators of small busi16 ness concerns that have received an award 

17 under the SBIR program of the NIH, se18 lected by the Associate Administrator for 

19 Technology of the Administration. 

20 ‘‘(B) NUMBER OF MEMBERS.—The total 

21 number of members selected under clauses (iii), 

22 (iv), and (v) of subparagraph (A) shall not ex23 ceed 10. 

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

25 number of members of the advisory board selected 


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1 under clauses (i), (ii), (iii), and (iv) of subpara2 graph (A) shall be equal to the number of mem3 bers of the advisory board selected under sub4 paragraph (A)(v). 

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

6 the evidence-base guiding SBIR program decisions and 

7 changes, the Director of the SBIR program of the NIH shall 

8 address the gaps and deficiencies in the data collection con9 cerns identified in the 2007 report of the National Acad10 emies of Science entitled ‘An Assessment of the Small Busi11 ness Innovation Research Program at the NIH’. 

12 ‘‘(c) PILOT PROGRAM.— 

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

14 program of the NIH may initiate a pilot program, 

15 under a formal mechanism for designing, imple16 menting, and evaluating pilot programs, to spur in17 novation and to test new strategies that may enhance 

18 the development of cures and therapies. 

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

20 SBIR program of the NIH may consider conducting 

21 a pilot program to include individuals with successful 

22 SBIR program experience in study sections, hiring 

23 individuals with small business development experi24 ence for staff positions, separating the commercial 

25 and scientific review processes, and examining the 


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1 impact of the trend toward larger awards on the over2 all program. 

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

4 shall submit an annual report to Congress and the advisory 

5 board on the activities of the SBIR program of the NIH 

6 under this section. 

7 ‘‘(e) SBIR GRANTS AND CONTRACTS.— 

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

9 contracts under the SBIR program of the NIH each 

10 SBIR program manager shall place an emphasis on 

11 applications that identify products and services that 

12 may enhance the development of cures and therapies. 

13 ‘‘(2) EXAMINATION OF COMMERCIALIZATION AND

14 OTHER METRICS.—The advisory board shall evaluate 

15 the implementation of the requirement under para16 graph (1) by examining increased commercialization 

17 and other metrics, to be determined and collected by 

18 the SBIR program of the NIH. 

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

20 practicable, the Director of the SBIR program of the 

21 NIH shall reduce the time period between Phase I 

22 and Phase II funding of grants and contracts under 

23 the SBIR program of the NIH to 6 months. 

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

25 extramural budget (as defined in section 9 of the Small 


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1 Business Act (15 U.S.C. 638)) of the NIH for research or 

2 research and development may be used for the pilot program 

3 under subsection (c) and to carry out subsection (e). 

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

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

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

7 TITLE III—OVERSIGHT AND 

8 EVALUATION 

9 SEC. 301. STREAMLINING ANNUAL EVALUATION REQUIRE10 MENTS. 

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

12 638(b)), as amended by section 102 of this Act, is amend13 ed— 

14 (1) in paragraph (7)— 

15 (A) by striking ‘‘STTR programs, including 

16 the data’’ and inserting the following: ‘‘STTR 

17 programs, including— 

18 ‘‘(A) the data’’; 

19 (B) by striking ‘‘(g)(10), (o)(9), and (o)(15), 

20 the number’’ and all that follows through ‘‘under 

21 each of the SBIR and STTR programs, and a 

22 description’’ and inserting the following: ‘‘(g)(8) 

23 and (o)(9); and 

24 ‘‘(B) the number of proposals received from, 

25 and the number and total amount of awards to, 


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1 HUBZone small business concerns and firms 

2 with venture capital investment (including those 

3 majority owned and controlled by multiple ven4 ture capital firms) under each of the SBIR and 

5 STTR programs; 

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

7 each Federal agency is increasing outreach and 

8 awards to firms owned and controlled by women 

9 and social or economically disadvantaged indi10 viduals under each of the SBIR and STTR pro11 grams; 

12 ‘‘(D) general information about the imple13 mentation and compliance with the allocation of 

14 funds required under subsection (cc) for firms 

15 majority owned and controlled by multiple ven16 ture capital firms under each of the SBIR and 

17 STTR programs; 

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

19 Phase III awards and notices of noncompliance 

20 with the SBIR and the STTR Policy Directives 

21 filed by the Administrator with Federal agencies; 

22 and 

23 ‘‘(F) a description’’; and 

24 (2) by inserting after paragraph (7) the fol25 lowing: 


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1 ‘‘(8) to coordinate the implementation of elec2 tronic databases at each of the Federal agencies par3 ticipating in the SBIR program or the STTR pro4 gram, including the technical ability of the partici5 pating agencies to electronically share data;’’. 

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

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

8 638(g)) is amended— 

9 (1) by striking paragraph (10); 

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

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

12 (3) by inserting after paragraph (7) the fol13 lowing: 

14 ‘‘(8) collect annually, and maintain in a com15 mon format in accordance with the simplified report16 ing requirements under subsection (v), such informa17 tion from awardees as is necessary to assess the SBIR 

18 program, including information necessary to main19 tain the database described in subsection (k), includ20 ing— 

21 ‘‘(A) whether an awardee— 

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

23 owned and controlled by multiple venture 

24 capital firms, and, if so— 


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1 ‘‘(I) the amount of venture capital 

2 that the awardee has received as of the 

3 date of the award; and 

4 ‘‘(II) the amount of additional 

5 capital that the awardee has invested 

6 in the SBIR technology; 

7 ‘‘(ii) has an investor that— 

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

9 citizen of the United States or a lawful 

10 permanent resident of the United 

11 States, and if so, the name of any such 

12 individual; or 

13 ‘‘(II) is a person that is not an 

14 individual and is not organized under 

15 the laws of a State or the United 

16 States, and if so the name of any such 

17 person; 

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

19 woman as a principal investigator; 

20 ‘‘(iv) is owned by a socially or eco21 nomically disadvantaged individual or has 

22 a socially or economically disadvantaged 

23 individual as a principal investigator; 


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1 ‘‘(v) received assistance under the 

2 FAST program under section 34 or the out3 reach program under subsection (s); 

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

5 of an institution of higher education, as 

6 that term is defined in section 101 of the 

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

8 1001); or 

9 ‘‘(vii) is located in a State described in 

10 subsection (u)(3); and 

11 ‘‘(B) a justification statement from the 

12 agency, if an awardee receives an award in an 

13 amount that is more than the award guidelines 

14 under this section;’’; and 

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

16 adding ‘‘and’’ at the end. 

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

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

19 638(o)) is amended— 

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

21 following: 

22 ‘‘(9) collect annually, and maintain in a com23 mon format in accordance with the simplified report24 ing requirements under subsection (v), such informa25 tion from applicants and awardees as is necessary to 


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1 assess the STTR program outputs and outcomes, in2 cluding information necessary to maintain the data3 base described in subsection (k), including— 

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

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

6 owned and controlled by multiple venture 

7 capital firms, and, if so— 

8 ‘‘(I) the amount of venture capital 

9 that the applicant or awardee has re10 ceived as of the date of the application 

11 or award, as applicable; and 

12 ‘‘(II) the amount of additional 

13 capital that the applicant or awardee 

14 has invested in the SBIR technology; 

15 ‘‘(ii) has an investor that— 

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

17 citizen of the United States or a lawful 

18 permanent resident of the United 

19 States, and if so, the name of any such 

20 individual; or 

21 ‘‘(II) is a person that is not an 

22 individual and is not organized under 

23 the laws of a State or the United 

24 States, and if so the name of any such 

25 person; 


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

2 woman as a principal investigator; 

3 ‘‘(iv) is owned by a socially or eco4 nomically disadvantaged individual or has 

5 a socially or economically disadvantaged 

6 individual as a principal investigator; 

7 ‘‘(v) received assistance under the 

8 FAST program under section 34 or the out9 reach program under subsection (s); 

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

11 of an institution of higher education, as 

12 that term is defined in section 101 of the 

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

14 1001); or 

15 ‘‘(vii) is located in a State in which 

16 the total value of contracts awarded to 

17 small business concerns under all STTR 

18 programs is less than the total value of con19 tracts awarded to small business concerns 

20 in a majority of other States, as determined 

21 by the Administrator in biennial fiscal 

22 years, beginning with fiscal year 2008, 

23 based on the most recent statistics compiled 

24 by the Administrator; and 


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

2 amount that is more than the award guidelines 

3 under this section, a statement from the agency 

4 that justifies the award amount;’’; 

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

6 end; 

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

8 (4) by redesignating paragraph (16) as para9 graph (15). 

10 SEC. 304. PUBLIC DATABASE. 

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

12 638(k)(1)) is amended— 

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

14 the end; 

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

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

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

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

19 has received a Phase I or Phase II SBIR or 

20 STTR award from a Federal agency, whether the 

21 small business concern— 

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

23 whether the small business concern is reg24 istered as majority owned and controlled by 


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1 multiple venture capital companies as re2 quired under subsection (cc)(3); 

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

4 woman as a principal investigator; 

5 ‘‘(iii) is owned by a socially or eco6 nomically disadvantaged individual or has 

7 a socially or economically disadvantaged 

8 individual as a principal investigator; 

9 ‘‘(iv) received assistance under the 

10 FAST program under section 34 or the out11 reach program under subsection (s); or 

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

13 a student of an institution of higher edu14 cation, as that term is defined in section 

15 101 of the Higher Education Act of 1965 

16 (20 U.S.C. 1001).’’. 

17 SEC. 305. GOVERNMENT DATABASE. 

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

19 638(k)(2)) is amended— 

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

21 and (E) as subparagraphs (D), (E), and (F), respec22 tively; 

23 (2) by inserting after subparagraph (B) the fol24 lowing: 

25 ‘‘(C) includes, for each awardee— 


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

2 identifying number assigned to the awardee 

3 by the Administrator; 

4 ‘‘(ii) whether the awardee has venture 

5 capital, and, if so— 

6 ‘‘(I) the amount of venture capital 

7 as of the date of the award; 

8 ‘‘(II) the percentage of ownership 

9 of the awardee held by a venture cap10 ital firm, including whether the 

11 awardee is majority owned and con12 trolled by multiple venture capital 

13 firms; and 

14 ‘‘(III) the amount of additional 

15 capital that the awardee has invested 

16 in the SBIR technology, which infor17 mation shall be collected on an annual 

18 basis; 

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

20 affiliates of the awardee; 

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

22 awardee; 

23 ‘‘(v) the number of employees of the af24 filiates of the awardee; and 


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1 ‘‘(vi) the names of, and the percentage 

2 of ownership of the awardee held by— 

3 ‘‘(I) any individual who is not a 

4 citizen of the United States or a lawful 

5 permanent resident of the United 

6 States; or 

7 ‘‘(II) any person that is not an 

8 individual and is not organized under 

9 the laws of a State or the United 

10 States;’’; and 

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

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

13 end; and 

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

15 ‘‘(iv) whether the applicant was major16 ity owned and controlled by multiple ven17 ture capital firms; and 

18 ‘‘(v) the number of employees of the ap19 plicant;’’. 

20 SEC. 306. ACCURACY IN FUNDING BASE CALCULATIONS. 

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

22 of enactment of this Act, and every 3 years thereafter, the 

23 Comptroller General of the United States shall— 


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1 (1) conduct a fiscal and management audit of 

2 the SBIR program and the STTR program for the 

3 applicable period to— 

4 (A) determine whether Federal agencies 

5 comply with the expenditure amount require6 ments under subsections (f)(1) and (n)(1) of sec7 tion 9 of the Small Business Act (15 U.S.C. 

8 638), as amended by this Act; 

9 (B) assess the extent of compliance with the 

10 requirements of section 9(i)(2) of the Small Busi11 ness Act (15 U.S.C. 638(i)(2)) by Federal agen12 cies participating in the SBIR program or the 

13 STTR program and the Administration; 

14 (C) assess whether it would be more con15 sistent and effective to base the amount of the al16 locations under the SBIR program and the 

17 STTR program on a percentage of the research 

18 and development budget of a Federal agency, 

19 rather than the extramural budget of the Federal 

20 agency; and 

21 (D) determine the portion of the extramural 

22 research or research and development budget of a 

23 Federal agency that each Federal agency spends 

24 for administrative purposes relating to the SBIR 

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1 cific purposes, including the portion, if any, of 

2 such budget the Federal agency spends for sala3 ries and expenses, travel to visit applicants, out4 reach events, marketing, and technical assist5 ance; and 

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

7 Business and Entrepreneurship of the Senate and the 

8 Committee on Small Business of the House of Rep9 resentatives regarding the audit conducted under 

10 paragraph (1), including the assessments required 

11 under subparagraphs (B) and (C), and the deter12 mination made under subparagraph (D) of para13 graph (1). 

14 (b) DEFINITION OF APPLICABLE PERIOD.—In this sec15 tion, the term ‘‘applicable period’’ means— 

16 (1) for the first report submitted under this sec17 tion, the period beginning on October 1, 2000, and 

18 ending on September 30 of the last full fiscal year be19 fore the date of enactment of this Act for which infor20 mation is available; and 

21 (2) for the second and each subsequent report 

22 submitted under this section, the period— 

23 (A) beginning on October 1 of the first fiscal 

24 year after the end of the most recent full fiscal 


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1 year relating to which a report under this sec2 tion was submitted; and 

3 (B) ending on September 30 of the last full 

4 fiscal year before the date of the report. 

5 SEC. 307. CONTINUED EVALUATION BY THE NATIONAL 

6 ACADEMY OF SCIENCES. 

7 Section 108 of the Small Business Reauthorization Act 

8 of 2000 (15 U.S.C. 638 note) is amended by adding at the 

9 end the following: 

10 ‘‘(e) EXTENSIONS AND ENHANCEMENTS OF AUTHOR11 ITY.— 

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

13 after the date of enactment of the SBIR/STTR Reau14 thorization Act of 2009, the head of each agency de15 scribed in subsection (a), in consultation with the 

16 Small Business Administration, shall cooperatively 

17 enter into an agreement with the National Academy 

18 of Sciences for the National Research Council to con19 duct a study described in subsection (a)(1) and make 

20 recommendations described in subsection (a)(2) not 

21 later than 4 years after the date of enactment of the 

22 SBIR/STTR Reauthorization Act of 2009, and every 

23 4 years thereafter. 

24 ‘‘(2) REPORTING.—An agreement under para25 graph (1) shall require that not later than 4 years 


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1 after the date of enactment of the SBIR/STTR Reau2 thorization Act of 2009, and every 4 years thereafter, 

3 the National Research Council shall submit to the 

4 head of the agency entering into the agreement, the 

5 Committee on Small Business and Entrepreneurship 

6 of the Senate, and the Committee on Small Business 

7 of the House of Representatives a report regarding the 

8 study conducted under paragraph (1) and containing 

9 the recommendations described in paragraph (1).’’. 

10 SEC. 308. TECHNOLOGY INSERTION REPORTING REQUIRE11 MENTS. 

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

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

14 the following: 

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

16 STTR report to Congress by the Administration under sub17 section (b)(7) shall include, for each Phase III award made 

18 by the Federal agency— 

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

20 agency or the non-Federal source of capital making 

21 the Phase III award; 

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

23 individual receiving the Phase III award; and 

24 ‘‘(3) the dollar amount of the Phase III award.’’. 


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1 SEC. 309. INTELLECTUAL PROPERTY PROTECTIONS. 

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

3 United States shall conduct a study of the SBIR program 

4 to assess whether— 

5 (1) Federal agencies comply with the data rights 

6 protections for SBIR awardees and the technologies of 

7 SBIR awardees under section 9 of the Small Business 

8 Act (15 U.S.C. 638); 

9 (2) the laws and policy directives intended to 

10 clarify the scope of data rights, including in proto11 types and mentor-prote ́ge ́ relationships and agree12 ments with Federal laboratories, are sufficient to pro13 tect SBIR awardees; and 

14 (3) there is an effective grievance tracking proc15 ess for SBIR awardees who have grievances against 

16 a Federal agency regarding data rights and a process 

17 for resolving those grievances. 

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

19 of enactment of this Act, the Comptroller General shall sub20 mit to the Committee on Small Business and Entrepreneur21 ship of the Senate and the Committee on Small Business 

22 of the House of Representatives a report regarding the study 

23 conducted under subsection (a). 


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1 TITLE IV—POLICY DIRECTIVES 

2 SEC. 401. CONFORMING AMENDMENTS TO THE SBIR AND 

3 THE STTR POLICY DIRECTIVES. 

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

5 date of enactment of this Act, the Administrator shall pro6 mulgate amendments to the SBIR Policy Directive and the 

7 STTR Policy Directive to conform such directives to this 

8 Act and the amendments made by this Act. 

9 (b) PUBLISHING SBIR POLICY DIRECTIVE AND THE

10 STTR POLICY DIRECTIVE IN THE FEDERAL REGISTER.— 

11 Not later than 180 days after the date of enactment of this 

12 Act, the Administrator shall publish the amended SBIR 

13 Policy Directive and the amended STTR Policy Directive 

14 in the Federal Register. 


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Calendar No. 94 

111TH CONGRESS 

1ST SESSION S. 1233 

[Report No. 111–37] 

A BILL 

To reauthorize and improve the SBIR and STTR 

programs, and for other purposes. 

JULY 2, 2009 

Reported with an amendment 


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