I 

112TH CONGRESS 

1ST SESSION H. R. 1425 

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

purposes. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 7, 2011 

Mrs. ELLMERS (for herself, Mr. ALTMIRE, Mr. QUAYLE, Mr. WU, Mr. HALL, 

Ms. EDDIE BERNICE JOHNSON of Texas, Mr. GRAVES of Missouri, and 

Mr. RICHMOND) introduced the following bill; which was referred to the 

Committee on Science, Space, and Technology, and in addition to the 

Committees on Small Business and Armed Services, for a period to be 

subsequently determined by the Speaker, in each case for consideration 

of such provisions as fall within the jurisdiction of the committee concerned 

A BILL 

To reauthorize and improve the SBIR and STTR programs, 

and for other purposes. 

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

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Creating Jobs Through 

5 Small Business Innovation Act of 2011’’. 

6 SEC. 2. TABLE OF CONTENTS. 

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


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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. SBIR and STTR award levels. 

Sec. 103. Agency and program flexibility. 

Sec. 104. Elimination of Phase II invitations. 

Sec. 105. Phase flexibility. 

Sec. 106. Participation by firms with substantial investment from multiple venture capital operating companies, hedge funds, or private equity firms in a portion of the SBIR program. 

Sec. 107. Ensuring that innovative small businesses with substantial investment 

from venture capital operating companies, hedge funds, or private equity firms are able to participate in the SBIR and 

STTR programs. 

Sec. 108. SBIR and STTR special acquisition preference. 

Sec. 109. Collaborating with Federal laboratories and research and development 

centers. 

Sec. 110. Notice requirement. 

Sec. 111. Additional SBIR and STTR Awards. 

TITLE II—OUTREACH AND COMMERCIALIZATION INITIATIVES 

Sec. 201. Technical assistance for awardees. 

Sec. 202. Commercialization Readiness Program at Department of Defense. 

Sec. 203. Commercialization Readiness Pilot Program for civilian agencies. 

Sec. 204. Interagency Policy Committee. 

Sec. 205. Clarifying the definition of ‘‘Phase III’’. 

Sec. 206. Shortened period for final decisions on proposals and applications. 

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. Obtaining consent from SBIR and STTR applicants to release contact information to economic development organizations. 

Sec. 310. Pilot to allow funding for administrative, oversight, and contract 

processing costs. 

Sec. 311. GAO study with respect to venture capital operating company, hedge 

fund, and private equity firm involvement. 

Sec. 312. Reducing vulnerability of SBIR and STTR programs to fraud, waste, 

and abuse. 

Sec. 313. Simplified paperwork requirements. 

TITLE IV—POLICY DIRECTIVES 

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


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TITLE V—OTHER PROVISIONS 

Sec. 501. Report on SBIR and STTR program goals. 

Sec. 502. Competitive selection procedures for SBIR and STTR programs. 

Sec. 503. Loan Restrictions. 

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 meaning given that term under section 3 of the 

14 Small Business 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— 

20 (1) by striking ‘‘TERMINATION.—’’ and all that 

21 follows through ‘‘the authorization’’ and inserting 

22 ‘‘TERMINATION.—The authorization’’; 


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1 (2) by striking ‘‘2008’’ and inserting ‘‘2014’’; 

2 and 

3 (3) by striking paragraph (2). 

4 (b) STTR.—Section 9(n)(1)(A) of the Small Busi5 ness Act (15 U.S.C. 638(n)(1)(A)) is amended— 

6 (1) by striking ‘‘IN GENERAL.—’’ and all that 

7 follows through ‘‘with respect’’ and inserting ‘‘IN

8 GENERAL.—With respect’’; 

9 (2) by striking ‘‘2009’’ and inserting ‘‘2014’’; 

10 and 

11 (3) by striking clause (ii). 

12 SEC. 102. SBIR AND STTR AWARD LEVELS. 

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

14 Small Business Act (15 U.S.C. 638(j)(2)(D)) is amend15 ed— 

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

17 ‘‘$150,000’’; and 

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

19 ‘‘$1,000,000’’. 

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

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

22 amended— 

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

24 ‘‘$150,000’’; and 


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

2 ‘‘$1,000,000’’. 

3 (c) ANNUAL ADJUSTMENTS.—Section 9 of the Small 

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

5 (1) in subsection (j)(2)(D), by striking ‘‘once 

6 every 5 years to reflect economic adjustments and 

7 programmatic considerations’’ and inserting ‘‘every 

8 year for inflation’’; and 

9 (2) in subsection (p)(2)(B)(ix), as amended by 

10 subsection (b) of this section, by inserting ‘‘(each of 

11 which the Administrator shall adjust for inflation 

12 annually)’’ after ‘‘$1,000,000,’’. 

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

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

15 this Act, is further amended by adding at the end the fol16 lowing: 

17 ‘‘(aa) LIMITATION ON SIZE OF AWARDS.— 

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

19 issue an award under the SBIR program or the 

20 STTR program if the size of the award exceeds the 

21 award guidelines established under this section by 

22 more than 50 percent. 

23 ‘‘(2) MAINTENANCE OF INFORMATION.—Par24 ticipating agencies shall maintain information on 


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1 awards exceeding the guidelines established under 

2 this section, including— 

3 ‘‘(A) the amount of each award; 

4 ‘‘(B) a justification for exceeding the 

5 award amount; 

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

7 award recipient; and 

8 ‘‘(D) whether an award recipient has re9 ceived any venture capital, hedge fund, or pri10 vate equity firm investment and, if so, whether 

11 the recipient is majority-owned by multiple ven12 ture capital operating companies, hedge funds, 

13 or private equity firms. 

14 ‘‘(3) REPORTS.—The Administrator shall in15 clude the information described in paragraph (2) in 

16 the annual report of the Administrator to Congress. 

17 ‘‘(4) RULE OF CONSTRUCTION.—Nothing in 

18 this subsection shall be construed to prevent a Fed19 eral agency from supplementing an award under the 

20 SBIR program or the STTR program using funds of 

21 the Federal agency that are not part of the SBIR 

22 program or the STTR program of the Federal agen23 cy.’’. 


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1 SEC. 103. AGENCY AND PROGRAM FLEXIBILITY. 

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

3 as amended by this Act, is further amended by adding 

4 at the end the following: 

5 ‘‘(bb) SUBSEQUENT PHASE II AWARDS.— 

6 ‘‘(1) AGENCY FLEXIBILITY.—A small business 

7 concern that received a Phase I award from a Fed8 eral agency under this section shall be eligible to re9 ceive a subsequent Phase II award from another 

10 Federal agency, if the head of each relevant Federal 

11 agency or the relevant component of the Federal 

12 agency makes a written determination that the top13 ics of the relevant awards are the same and both 

14 agencies report the awards to the Administrator for 

15 inclusion in the public database under subsection 

16 (k). 

17 ‘‘(2) SBIR AND STTR PROGRAM FLEXIBILITY.— 

18 A small business concern that received a Phase I 

19 award under this section under the SBIR program 

20 or the STTR program may receive a subsequent 

21 Phase II award in either the SBIR program or the 

22 STTR program and the participating agency or 

23 agencies shall report the awards to the Adminis24 trator for inclusion in the public database under 

25 subsection (k).’’. 


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1 SEC. 104. ELIMINATION OF PHASE II INVITATIONS. 

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

3 638(e)) is amended— 

4 (1) in paragraph (4)(B), by striking ‘‘to fur5 ther’’ and inserting ‘‘which shall not include any in6 vitation, pre-screening, pre-selection, or down-selec7 tion process for eligibility for Phase II, that will fur8 ther’’; and 

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

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

11 shall not include any invitation, pre-screening, pre12 selection, or down-selection process for eligibility for 

13 Phase II, that will further develop proposals that’’. 

14 SEC. 105. PHASE FLEXIBILITY. 

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

16 as amended by this Act, is further amended by adding 

17 at the end the following: 

18 ‘‘(cc) PHASE I REQUIRED.—Under this section, a 

19 Federal agency shall provide to a small business concern 

20 an award under Phase II of an SBIR program with re21 spect to a project only if such agency finds that the small 

22 business concern has been provided an award under Phase 

23 I of an SBIR program with respect to such project or has 

24 completed the determinations described in subsection 

25 (e)(4)(A) with respect to such project despite not having 

26 been provided a Phase I award.’’. 


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1 SEC. 106. PARTICIPATION BY FIRMS WITH SUBSTANTIAL IN2 VESTMENT FROM MULTIPLE VENTURE CAP3 ITAL OPERATING COMPANIES, HEDGE 

4 FUNDS, OR PRIVATE EQUITY FIRMS IN A POR5 TION OF THE SBIR PROGRAM. 

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

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

8 amended by adding at the end the following: 

9 ‘‘(dd) PARTICIPATION OF SMALL BUSINESS CON10 CERNS MAJORITY-OWNED BY VENTURE CAPITAL OPER11 ATING COMPANIES, HEDGE FUNDS, OR PRIVATE EQUITY

12 FIRMS IN THE SBIR PROGRAM.— 

13 ‘‘(1) AUTHORITY.—Upon a written determina14 tion described in paragraph (2) provided to the Ad15 ministrator, the Committee on Small Business and 

16 Entrepreneurship of the Senate, and the Committee 

17 on Small Business and the Committee on Science, 

18 Space, and Technology of the House of Representa19 tives not later than 30 days before the date on which 

20 an award is made— 

21 ‘‘(A) the Director of the National Insti22 tutes of Health, the Secretary of Energy, and 

23 the Director of the National Science Founda24 tion may award not more than 45 percent of 

25 the funds allocated for the SBIR program of 

26 the Federal agency to small business concerns 


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1 that are owned in majority part by multiple 

2 venture capital operating companies, hedge 

3 funds, or private equity firms through competi4 tive, merit-based procedures that are open to all 

5 eligible small business concerns; and 

6 ‘‘(B) the head of a Federal agency other 

7 than a Federal agency described in subpara8 graph (A) that participates in the SBIR pro9 gram may award not more than 35 percent of 

10 the funds allocated for the SBIR program of 

11 the Federal agency to small business concerns 

12 that are owned in majority part by multiple 

13 venture capital operating companies, hedge 

14 funds, or private equity firms through competi15 tive, merit-based procedures that are open to all 

16 eligible small business concerns. 

17 ‘‘(2) DETERMINATION.—A written determina18 tion described in this paragraph is a written deter19 mination by the head of a Federal agency that ex20 plains how the use of the authority under paragraph 

21 (1) will— 

22 ‘‘(A) induce additional venture capital, 

23 hedge fund, or private equity firm funding of 

24 small business innovations; 


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1 ‘‘(B) substantially contribute to the mis2 sion of the Federal agency; 

3 ‘‘(C) demonstrate a need for public re4 search; and 

5 ‘‘(D) otherwise fulfill the capital needs of 

6 small business concerns for additional financing 

7 for the SBIR project. 

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

9 that is majority-owned by multiple venture capital 

10 operating companies, hedge funds, or private equity 

11 firms and qualified for participation in the program 

12 authorized under paragraph (1) shall— 

13 ‘‘(A) register with the Administrator on 

14 the date that the small business concern sub15 mits an application for an award under the 

16 SBIR program; and 

17 ‘‘(B) indicate in any SBIR proposal that 

18 the small business concern is registered under 

19 subparagraph (A) as majority-owned by mul20 tiple venture capital operating companies, hedge 

21 funds, or private equity firms. 

22 ‘‘(4) COMPLIANCE.— 

23 ‘‘(A) IN GENERAL.—The head of a Federal 

24 agency that makes an award under this sub25 section during a fiscal year shall collect and 


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1 submit to the Administrator data relating to 

2 the number and dollar amount of Phase I 

3 awards, Phase II awards, and any other cat4 egory of awards by the Federal agency under 

5 the SBIR program during that fiscal year. 

6 ‘‘(B) ANNUAL REPORTING.—The Adminis7 trator shall include as part of each annual re8 port by the Administration under subsection 

9 (b)(7) any data submitted under subparagraph 

10 (A) and a discussion of the compliance of each 

11 Federal agency that makes an award under this 

12 subsection during the fiscal year with the max13 imum percentages under paragraph (1). 

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

15 awards more than the percent of the funds allocated 

16 for the SBIR program of the Federal agency author17 ized under paragraph (1) for a purpose described in 

18 paragraph (1), the head of the Federal agency shall 

19 transfer an amount equal to the amount awarded in 

20 excess of the amount authorized under paragraph 

21 (1) to the funds for general SBIR programs from 

22 the non-SBIR and non-STTR research and develop23 ment funds of the Federal agency not later than 180 

24 days after the date on which the Federal agency 

25 made the award that caused the total awarded under 


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1 paragraph (1) to be more than the amount author2 ized under paragraph (1) for a purpose described in 

3 paragraph (1). 

4 ‘‘(6) FINAL DECISIONS ON APPLICATIONS

5 UNDER THE SBIR PROGRAM.— 

6 ‘‘(A) DEFINITION.—In this paragraph, the 

7 term ‘covered small business concern’ means a 

8 small business concern that— 

9 ‘‘(i) was not majority-owned by mul10 tiple venture capital operating companies, 

11 hedge funds, or private equity firms on the 

12 date on which the small business concern 

13 submitted an application in response to a 

14 solicitation under the SBIR programs; and 

15 ‘‘(ii) on the date of the award under 

16 the SBIR program is majority-owned by 

17 multiple venture capital operating compa18 nies, hedge funds, or private equity firms. 

19 ‘‘(B) IN GENERAL.—If a Federal agency 

20 does not make an award under a solicitation 

21 under the SBIR program before the date that 

22 is 9 months after the date on which the period 

23 for submitting applications under the solicita24 tion ends— 


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1 ‘‘(i) a covered small business concern 

2 is eligible to receive the award, without re3 gard to whether the covered small business 

4 concern meets the requirements for receiv5 ing an award under the SBIR program for 

6 a small business concern that is majority7 owned by multiple venture capital oper8 ating companies, hedge funds, or private 

9 equity firms, if the covered small business 

10 concern meets all other requirements for 

11 such an award; and 

12 ‘‘(ii) the head of the Federal agency 

13 shall transfer an amount equal to any 

14 amount awarded to a covered small busi15 ness concern under the solicitation to the 

16 funds for general SBIR programs from the 

17 non-SBIR and non-STTR research and de18 velopment funds of the Federal agency, not 

19 later than 90 days after the date on which 

20 the Federal agency makes the award. 

21 ‘‘(7) EVALUATION CRITERIA.—A Federal agen22 cy may not use investment of venture capital or in23 vestment from hedge funds or private equity firms 

24 as a criterion for the award of contracts under the 

25 SBIR program or STTR program.’’. 


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1 (b) TECHNICAL AND CONFORMING AMENDMENT.— 

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

3 amended by adding at the end the following: 

4 ‘‘(aa) VENTURE CAPITAL OPERATING COMPANY.—In 

5 this Act, the term ‘venture capital operating company’ 

6 means an entity described in clause (i), (v), or (vi) of sec7 tion 121.103(b)(5) of title 13, Code of Federal Regula8 tions (or any successor thereto). 

9 ‘‘(bb) HEDGE FUND.—In this Act, the term ‘hedge 

10 fund’ has the meaning given that term in section 13(h)(2) 

11 of the Bank Holding Company Act of 1956 (12 U.S.C. 

12 1851(h)(2)). 

13 ‘‘(cc) PRIVATE EQUITY FIRM.—In this Act, the term 

14 ‘private equity firm’ has the meaning given the term ‘pri15 vate equity fund’ in section 13(h)(2) of the Bank Holding 

16 Company Act of 1956 (12 U.S.C. 1851(h)(2)).’’. 

17 SEC. 107. ENSURING THAT INNOVATIVE SMALL BUSI18 NESSES WITH SUBSTANTIAL INVESTMENT 

19 FROM VENTURE CAPITAL OPERATING COM20 PANIES, HEDGE FUNDS, OR PRIVATE EQUITY 

21 FIRMS ARE ABLE TO PARTICIPATE IN THE 

22 SBIR AND STTR PROGRAMS. 

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

24 as amended by this Act, is further amended by adding 

25 at the end the following: 


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1 ‘‘(ee) VENTURE CAPITAL OPERATING COMPANIES, 

2 HEDGE FUNDS, AND PRIVATE EQUITY FIRMS.—Effective 

3 only for the SBIR and STTR programs the following shall 

4 apply: 

5 ‘‘(1) A business concern that has more than 

6 500 employees shall not qualify as a small business 

7 concern. 

8 ‘‘(2) In determining whether a small business 

9 concern is independently owned and operated under 

10 section 3(a)(1) or meets the small business size 

11 standards instituted under section 3(a)(2), the Ad12 ministrator shall not consider a business concern to 

13 be affiliated with a venture capital operating com14 pany, hedge fund, or private equity firm (or with 

15 any other business that the venture capital operating 

16 company, hedge fund, or private equity firm has fi17 nanced) if— 

18 ‘‘(A) the venture capital operating com19 pany, hedge fund, or private equity firm does 

20 not own 50 percent or more of the business 

21 concern; and 

22 ‘‘(B) employees of the venture capital oper23 ating company, hedge fund, or private equity 

24 firm do not constitute a majority of the board 

25 of directors of the business concern. 


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1 ‘‘(3) A business concern shall be deemed to be 

2 ‘independently owned and operated’ if— 

3 ‘‘(A) it is owned in majority part by one or 

4 more natural persons or venture capital oper5 ating companies, hedge funds, or private equity 

6 firms; 

7 ‘‘(B) there is no single venture capital op8 erating company, hedge fund, or private equity 

9 firm that owns 50 percent or more of the busi10 ness concern; and 

11 ‘‘(C) there is no single venture capital op12 erating company, hedge fund, or private equity 

13 firm the employees of which constitute a major14 ity of the board of directors of the business con15 cern. 

16 ‘‘(4) If a venture capital operating company, 

17 hedge fund, or private equity firm controlled by a 

18 business with more than 500 employees (in this 

19 paragraph referred to as a ‘VCOC, hedge fund, or 

20 private equity firm under large business control’) 

21 has an ownership interest in a small business con22 cern that is owned in majority part by venture cap23 ital operating companies, hedge funds, or private eq24 uity firms, the small business concern is eligible to 


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1 receive an award under the SBIR or STTR program 

2 only if— 

3 ‘‘(A) not more than two VCOCs, hedge 

4 funds, or private equity firms under large busi5 ness control have an ownership interest in the 

6 small business concern; and 

7 ‘‘(B) the VCOCs, hedge funds, or private 

8 equity firms under large business control do not 

9 collectively own more than 20 percent of the 

10 small business concern.’’. 

11 SEC. 108. SBIR AND STTR SPECIAL ACQUISITION PREF12 ERENCE. 

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

14 638(r)) is amended by adding at the end the following: 

15 ‘‘(4) PHASE III AWARDS.—To the greatest ex16 tent practicable, Federal agencies and Federal prime 

17 contractors shall issue Phase III awards relating to 

18 technology, including sole source awards, to the 

19 SBIR and STTR award recipients that developed 

20 the technology.’’. 


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1 SEC. 109. 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 further amended by adding 

6 at the end the following: 

7 ‘‘(ff) 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— 

23 ‘‘(A) have the flexibility to use the re24 sources of the Federal laboratories and federVerDate Mar 15 2010 23:36 Apr 08, 2011 Jkt 099200 PO 00000 Frm 00020 Fmt 6652 Sfmt 6201 E:\BILLS\H1425.IH H1425

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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. 110. NOTICE REQUIREMENT. 

8 (a) SBIR PROGRAM.—Section 9(g) of the Small 

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

10 (1) in paragraph (10), by striking ‘‘and’’ at the 

11 end; 

12 (2) in paragraph (11), by striking the period at 

13 the end and inserting ‘‘; and’’; and 

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

15 ‘‘(12) provide timely notice to the Adminis16 trator of any case or controversy before any Federal 

17 judicial or administrative tribunal concerning the 

18 SBIR program of the Federal agency.’’. 

19 (b) STTR PROGRAM.—Section 9(o) of the Small 

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

21 (1) by striking paragraph (15); 

22 (2) in paragraph (16), by striking the period at 

23 the end and inserting ‘‘; and’’; 

24 (3) by redesignating paragraph (16) as para25 graph (15); and 


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

2 ‘‘(16) provide timely notice to the Adminis3 trator of any case or controversy before any Federal 

4 judicial or administrative tribunal concerning the 

5 STTR program of the Federal agency.’’. 

6 SEC. 111. ADDITIONAL SBIR AND STTR AWARDS. 

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

8 as amended by this Act, is further amended by adding 

9 at the end the following: 

10 ‘‘(gg) ADDITIONAL SBIR AND STTR AWARDS.— 

11 ‘‘(1) EXPRESS AUTHORITY FOR AWARDING A

12 SEQUENTIAL PHASE II AWARD.—A small business 

13 concern that receives a Phase II SBIR award or a 

14 Phase II STTR award for a project remains eligible 

15 to receive one additional Phase II SBIR award or 

16 Phase II STTR award for continued work on that 

17 project. 

18 ‘‘(2) PREVENTING DUPLICATIVE AWARDS.—The 

19 head of a Federal agency shall verify that any activ20 ity to be performed with respect to a project with a 

21 Phase I or Phase II SBIR or STTR award has not 

22 been funded under the SBIR program or STTR pro23 gram of another Federal agency.’’. 


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1 TITLE II—OUTREACH AND COM2 MERCIALIZATION INITIA3 TIVES 

4 SEC. 201. TECHNICAL ASSISTANCE FOR AWARDEES. 

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

6 638(q)) is amended— 

7 (1) in paragraph (1)— 

8 (A) by inserting ‘‘or STTR program’’ after 

9 ‘‘SBIR program’’; and 

10 (B) by striking ‘‘SBIR projects’’ and in11 serting ‘‘SBIR or STTR projects’’; 

12 (2) in paragraph (2), by striking ‘‘3 years’’ and 

13 inserting ‘‘5 years’’; and 

14 (3) in paragraph (3)— 

15 (A) in subparagraph (A)— 

16 (i) by inserting ‘‘or STTR’’ after 

17 ‘‘SBIR’’; and 

18 (ii) by striking ‘‘$4,000’’ and insert19 ing ‘‘$5,000’’; 

20 (B) by striking subparagraph (B) and in21 serting the following: 

22 ‘‘(B) PHASE II.—A Federal agency de23 scribed in paragraph (1) may— 

24 ‘‘(i) provide to the recipient of a 

25 Phase II SBIR or STTR award, through a 


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1 vendor selected under paragraph (2), the 

2 services described in paragraph (1), in an 

3 amount equal to not more than $5,000 per 

4 year; or 

5 ‘‘(ii) authorize the recipient of a 

6 Phase II SBIR or STTR award to pur7 chase the services described in paragraph 

8 (1), in an amount equal to not more than 

9 $5,000 per year, which shall be in addition 

10 to the amount of the recipient’s award.’’; 

11 and 

12 (C) 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. 202. COMMERCIALIZATION READINESS PROGRAM AT 

9 DEPARTMENT OF DEFENSE. 

10 (a) IN GENERAL.—Section 9(y) of the Small Busi11 ness Act (15 U.S.C. 638(y)) is amended— 

12 (1) in the subsection heading, by striking 

13 ‘‘PILOT’’ and inserting ‘‘READINESS’’; 

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

16 (3) in paragraph (1)— 

17 (A) by inserting ‘‘or Small Business Tech18 nology Transfer Program’’ after ‘‘Small Busi19 ness Innovation Research Program’’; and 

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

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

23 subsection may not be construed to eliminate or 

24 replace any other SBIR program or STTR pro25 gram that enhances the insertion or transition 


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1 of SBIR or STTR technologies, including any 

2 such program in effect on the date of enact3 ment of the National Defense Authorization Act 

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

5 119 Stat. 3136).’’; 

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

7 Business Technology Transfer Program’’ after 

8 ‘‘Small Business Innovation Research Program’’; 

9 (5) by striking paragraphs (5) and (6); and 

10 (6) by inserting after paragraph (4) the fol11 lowing: 

12 ‘‘(5) INSERTION INCENTIVES.—For any con13 tract with a value of not less than $100,000,000, the 

14 Secretary of Defense is authorized to— 

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

16 Phase III technologies in subcontracting plans; 

17 and 

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

19 contract to report the number and dollar 

20 amount of contracts entered into by that prime 

21 contractor for Phase III SBIR or STTR 

22 projects. 

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

24 INSERTION.—The Secretary of Defense shall— 


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

2 Phase II SBIR contracts and the number of 

3 Phase II STTR contracts awarded by that Sec4 retary that lead to technology transition into 

5 programs of record or fielded systems; 

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

7 enactment of the Creating Jobs Through Small 

8 Business Innovation Act of 2011, or create new 

9 incentives, to encourage agency program man10 agers and prime contractors to meet the goal 

11 under subparagraph (A); and 

12 ‘‘(C) include in the annual report to Con13 gress the percentage of contracts described in 

14 subparagraph (A) awarded by that Secretary, 

15 and information on the ongoing status of 

16 projects funded through the Commercialization 

17 Readiness Program and efforts to transition 

18 these technologies into programs of record or 

19 fielded systems.’’. 

20 (b) TECHNICAL AND CONFORMING AMENDMENT.— 

21 Section 9(i)(1) of the Small Business Act (15 U.S.C. 

22 638(i)(1)) is amended by inserting ‘‘(including awards 

23 under subsection (y))’’ after ‘‘the number of awards’’. 


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1 SEC. 203. COMMERCIALIZATION READINESS PILOT PRO2 GRAM FOR CIVILIAN AGENCIES. 

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

4 as amended by this Act, is further amended by adding 

5 at the end the following: 

6 ‘‘(hh) PILOT PROGRAM.— 

7 ‘‘(1) AUTHORIZATION.—The head of each cov8 ered Federal agency may allocate not more than 10 

9 percent of the funds allocated to the SBIR program 

10 and the STTR program of the covered Federal agen11 cy— 

12 ‘‘(A) for awards for technology develop13 ment, testing, evaluation, and commercialization 

14 assistance for SBIR and STTR Phase II tech15 nologies; or 

16 ‘‘(B) to support the progress of research, 

17 research and development, and commercializa18 tion conducted under the SBIR or STTR pro19 grams to Phase III. 

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

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

22 agency may not establish a pilot program unless 

23 the covered Federal agency makes a written ap24 plication to the Administrator, not later than 

25 90 days before the first day of the fiscal year 

26 in which the pilot program is to be established, 


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1 that describes a compelling reason that addi2 tional investment in SBIR or STTR tech3 nologies is necessary, including unusually high 

4 regulatory, systems integration, or other costs 

5 relating to development or manufacturing of 

6 identifiable, highly promising small business 

7 technologies or a class of such technologies ex8 pected to substantially advance the mission of 

9 the agency. 

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

12 ‘‘(i) make a determination regarding 

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

15 the first day of the fiscal year for which 

16 the application is submitted; 

17 ‘‘(ii) publish the determination in the 

18 Federal Register; and 

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

21 the Committee on Small Business and En22 trepreneurship of the Senate and the Com23 mittee on Small Business and the Com24 mittee on Science, Space, and Technology 

25 of the House of Representatives. 


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

2 of a covered Federal agency may not make an award 

3 under a pilot program in excess of 3 times the dollar 

4 amounts generally established for Phase II awards 

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

6 ‘‘(4) 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 ‘‘(5) REPORT.—The head of each covered Fed11 eral agency shall include in the annual report of the 

12 covered Federal agency to the Administrator an 

13 analysis of the various activities considered for inclu14 sion in the pilot program of the covered Federal 

15 agency and a statement of the reasons why each ac16 tivity considered was included or not included, as the 

17 case may be. 

18 ‘‘(6) TERMINATION.—The authority to establish 

19 a pilot program under this section expires at the end 

20 of fiscal year 2014. 

21 ‘‘(7) DEFINITIONS.—In this subsection— 

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

23 ‘‘(i) means a Federal agency partici24 pating in the SBIR program or the STTR 

25 program; and 


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1 ‘‘(ii) does not include the Department 

2 of Defense; and 

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

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

5 SEC. 204. INTERAGENCY POLICY COMMITTEE. 

6 (a) ESTABLISHMENT.—The Director of the Office of 

7 Science and Technology Policy shall establish an Inter8 agency SBIR/STTR Policy Committee. 

9 (b) DUTIES.—The Interagency SBIR/STTR Policy 

10 Committee shall review the following issues and make pol11 icy recommendations on ways to improve program effec12 tiveness and efficiency: 

13 (1) The public and government databases de14 scribed in section 9(k) of the Small Business Act 

15 (15 U.S.C. 638(k)). 

16 (2) Federal agency flexibility in establishing 

17 Phase I and II award sizes, including appropriate 

18 criteria for exercising such flexibility. 

19 (3) Commercialization assistance best practices 

20 of Federal agencies with significant potential to be 

21 employed by other agencies, and the appropriate 

22 steps to achieve that leverage, as well as proposals 

23 for new initiatives to address funding gaps that busi24 ness concerns face after Phase II but before com25 mercialization. 


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1 (4) Developing and incorporating a standard 

2 evaluation framework to enable systematic assess3 ment of SBIR and STTR, including through im4 proved tracking of awards and outcomes and devel5 opment of performance measures for the SBIR pro6 gram and STTR program of each Federal agency. 

7 (c) REPORTS.—The Interagency SBIR/STTR Policy 

8 Committee shall transmit to the Committee on Science, 

9 Space, and Technology and the Committee on Small Busi10 ness of the House of Representatives and to the Com11 mittee on Small Business and Entrepreneurship of the 

12 Senate— 

13 (1) a report on its review and recommendations 

14 under subsection (b)(1) not later than 1 year after 

15 the date of enactment of this Act; 

16 (2) a report on its review and recommendations 

17 under subsection (b)(2) not later than 18 months 

18 after the date of enactment of this Act; 

19 (3) a report on its review and recommendations 

20 under subsection (b)(3) not later than 2 years after 

21 the date of enactment of this Act; and 

22 (4) a report on its review and recommendations 

23 under subsection (b)(4) not later than 2 years after 

24 the date of enactment of this Act. 


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1 SEC. 205. CLARIFYING THE DEFINITION OF ‘‘PHASE III’’. 

2 (a) PHASE III AWARDS.—Section 9(e) of the Small 

3 Business Act (15 U.S.C. 638(e)), as amended by this Act, 

4 is further amended— 

5 (1) in paragraph (4)(C), in the matter pre6 ceding clause (i), by inserting ‘‘for work that derives 

7 from, extends, or completes efforts made under prior 

8 funding agreements under the SBIR program’’ after 

9 ‘‘phase’’; 

10 (2) in paragraph (6)(C), in the matter pre11 ceding clause (i), by inserting ‘‘for work that derives 

12 from, extends, or completes efforts made under prior 

13 funding agreements under the STTR program’’ after 

14 ‘‘phase’’; 

15 (3) in paragraph (8), by striking ‘‘and’’ at the 

16 end; 

17 (4) in paragraph (9), by striking the period at 

18 the end and inserting a semicolon; and 

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

20 ‘‘(10) the term ‘commercialization’ means— 

21 ‘‘(A) the process of developing products, 

22 processes, technologies, or services; and 

23 ‘‘(B) the production and delivery of prod24 ucts, processes, technologies, or services for sale 

25 (whether by the originating party or by others) 


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1 to or use by the Federal Government or com2 mercial markets;’’. 

3 (b) TECHNICAL AND CONFORMING AMENDMENTS.— 

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

5 amended by this Act, is further amended— 

6 (1) in subsection (e)— 

7 (A) in paragraph (4)(C)(ii), by striking 

8 ‘‘scientific review criteria’’ and inserting ‘‘merit9 based selection procedures’’; 

10 (B) in paragraph (9), by striking ‘‘the sec11 ond or the third phase’’ and inserting ‘‘Phase 

12 II or Phase III’’; and 

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

14 ‘‘(11) the term ‘Phase I’ means— 

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

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

17 and 

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

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

20 ‘‘(12) the term ‘Phase II’ means— 

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

22 the second phase described in paragraph 

23 (4)(B); and 


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

2 the second phase described in paragraph 

3 (6)(B); and 

4 ‘‘(13) the term ‘Phase III’ means— 

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

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

7 and 

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

9 the third phase described in paragraph 

10 (6)(C).’’; 

11 (2) in subsection (j)— 

12 (A) in paragraph (1)(B), by striking 

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

14 (B) in paragraph (2)— 

15 (i) in subparagraph (B)— 

16 (I) by striking ‘‘the third phase’’ 

17 each place it appears and inserting 

18 ‘‘Phase III’’; and 

19 (II) by striking ‘‘the second 

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

21 (ii) in subparagraph (D)— 

22 (I) by striking ‘‘the first phase’’ 

23 and inserting ‘‘Phase I’’; and 

24 (II) by striking ‘‘the second 

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


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1 (iii) in subparagraph (F), by striking 

2 ‘‘the third phase’’ and inserting ‘‘Phase 

3 III’’; 

4 (iv) in subparagraph (G)— 

5 (I) by striking ‘‘the first phase’’ 

6 and inserting ‘‘Phase I’’; and 

7 (II) by striking ‘‘the second 

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

9 (v) in subparagraph (H)— 

10 (I) by striking ‘‘the first phase’’ 

11 and inserting ‘‘Phase I’’; 

12 (II) by striking ‘‘second phase’’ 

13 each place it appears and inserting 

14 ‘‘Phase II’’; and 

15 (III) by striking ‘‘third phase’’ 

16 and inserting ‘‘Phase III’’; and 

17 (C) in paragraph (3)— 

18 (i) in subparagraph (A)— 

19 (I) by striking ‘‘the first phase 

20 (as described in subsection 

21 (e)(4)(A))’’ and inserting ‘‘Phase I’’; 

22 (II) by striking ‘‘the second 

23 phase (as described in subsection 

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

25 and 


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1 (III) by striking ‘‘the third phase 

2 (as described in subsection (e)(4)(C))’’ 

3 and inserting ‘‘Phase III’’; and 

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

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

6 (3) in subsection (k)— 

7 (A) by striking ‘‘first phase’’ each place it 

8 appears and inserting ‘‘Phase I’’; and 

9 (B) by striking ‘‘second phase’’ each place 

10 it appears and inserting ‘‘Phase II’’; 

11 (4) in subsection (l)(2)— 

12 (A) by striking ‘‘the first phase’’ and in13 serting ‘‘Phase I’’; and 

14 (B) by striking ‘‘the second phase’’ and in15 serting ‘‘Phase II’’; 

16 (5) in subsection (o)(13)— 

17 (A) in subparagraph (B), by striking ‘‘sec18 ond phase’’ and inserting ‘‘Phase II’’; and 

19 (B) in subparagraph (C), by striking 

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

21 (6) in subsection (p)— 

22 (A) in paragraph (2)(B)— 

23 (i) in clause (vi)— 

24 (I) by striking ‘‘the second 

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


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1 (II) by striking ‘‘the third phase’’ 

2 and inserting ‘‘Phase III’’; and 

3 (ii) in clause (ix)— 

4 (I) by striking ‘‘the first phase’’ 

5 and inserting ‘‘Phase I’’; and 

6 (II) by striking ‘‘the second 

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

8 (B) in paragraph (3)— 

9 (i) by striking ‘‘the first phase (as de10 scribed in subsection (e)(6)(A))’’ and in11 serting ‘‘Phase I’’; 

12 (ii) by striking ‘‘the second phase (as 

13 described in subsection (e)(6)(B))’’ and in14 serting ‘‘Phase II’’; and 

15 (iii) by striking ‘‘the third phase (as 

16 described in subsection (e)(6)(C))’’ and in17 serting ‘‘Phase III’’; 

18 (7) in subsection (q)(3)(A)— 

19 (A) in the subparagraph heading, by strik20 ing ‘‘FIRST PHASE’’ and inserting ‘‘PHASE I’’; 

21 and 

22 (B) by striking ‘‘first phase’’ and inserting 

23 ‘‘Phase I’’; 

24 (8) in subsection (r)— 


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1 (A) in the subsection heading, by striking 

2 ‘‘THIRD PHASE’’ and inserting ‘‘PHASE III’’; 

3 (B) in paragraph (1)— 

4 (i) in the first sentence— 

5 (I) by striking ‘‘for the second 

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

7 (II) by striking ‘‘third phase’’ 

8 and inserting ‘‘Phase III’’; and 

9 (III) by striking ‘‘second phase 

10 period’’ and inserting ‘‘Phase II pe11 riod’’; and 

12 (ii) in the second sentence— 

13 (I) by striking ‘‘second phase’’ 

14 and inserting ‘‘Phase II’’; and 

15 (II) by striking ‘‘third phase’’ 

16 and inserting ‘‘Phase III’’; and 

17 (C) in paragraph (2), by striking ‘‘third 

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

19 (9) in subsection (u)(2)(B), by striking ‘‘the 

20 first phase’’ and inserting ‘‘Phase I’’. 

21 SEC. 206. SHORTENED PERIOD FOR FINAL DECISIONS ON 

22 PROPOSALS AND APPLICATIONS. 

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

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

25 amended— 


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1 (1) in subsection (g)(4)— 

2 (A) by inserting ‘‘(A)’’ after ‘‘(4)’’; 

3 (B) by adding ‘‘and’’ after the semicolon 

4 at the end; and 

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

6 ‘‘(B) make a final decision on each proposal 

7 submitted under the SBIR program— 

8 ‘‘(i) not later than 90 days after the date 

9 on which the solicitation closes; or 

10 ‘‘(ii) if the Administrator authorizes an ex11 tension for a solicitation, not later than 180 

12 days after the date on which the solicitation 

13 closes;’’; and 

14 (2) in subsection (o)(4)— 

15 (A) by inserting ‘‘(A)’’ after ‘‘(4)’’; 

16 (B) by adding ‘‘and’’ after the semicolon 

17 at the end; and 

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

19 ‘‘(B) make a final decision on each proposal 

20 submitted under the STTR program— 

21 ‘‘(i) not later than 90 days after the date 

22 on which the solicitation closes; or 

23 ‘‘(ii) if the Administrator authorizes an ex24 tension for a solicitation, not later than 180 


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1 days after the date on which the solicitation 

2 closes;’’. 

3 (b) NIH PEER REVIEW PROCESS.— 

4 (1) IN GENERAL.—Section 9 of the Small Busi5 ness Act (15 U.S.C. 638), as amended by this Act, 

6 is further amended by adding at the end the fol7 lowing: 

8 ‘‘(ii) NIH PEER REVIEW PROCESS.—The Director of 

9 the National Institutes of Health may make an award 

10 under the SBIR program or the STTR program of the 

11 National Institutes of Health only if the application for 

12 the award has undergone technical and scientific peer re13 view under section 492 of the Public Health Service Act 

14 (42 U.S.C. 289a).’’. 

15 (2) TECHNICAL AND CONFORMING AMEND16 MENTS.—Section 105 of the National Institutes of 

17 Health Reform Act of 2006 (42 U.S.C. 284n) is 

18 amended— 

19 (A) in subsection (a)(3)— 

20 (i) by striking ‘‘A grant’’ and insert21 ing ‘‘Except as provided in section 9(ii) of 

22 the Small Business Act (15 U.S.C. 

23 638(ii)), a grant’’; and 


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1 (ii) by striking ‘‘section 402(k)’’ and 

2 all that follows through ‘‘Act)’’ and insert3 ing ‘‘section 402(l) of such Act’’; and 

4 (B) in subsection (b)(5)— 

5 (i) by striking ‘‘A grant’’ and insert6 ing ‘‘Except as provided in section 9(ii) of 

7 the Small Business Act (15 U.S.C. 

8 638(ii)), a grant’’; and 

9 (ii) by striking ‘‘section 402(k)’’ and 

10 all that follows through ‘‘Act)’’ and insert11 ing ‘‘section 402(l) of such Act’’. 

12 TITLE III—OVERSIGHT AND 

13 EVALUATION 

14 SEC. 301. STREAMLINING ANNUAL EVALUATION REQUIRE15 MENTS. 

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

17 638(b)) is amended— 

18 (1) in paragraph (7)— 

19 (A) by striking ‘‘STTR programs, includ20 ing the data’’ and inserting the following: 

21 ‘‘STTR programs, including— 

22 ‘‘(A) the data’’; 

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

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

25 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, hedge fund, or 

7 private equity firm investment (including those 

8 majority-owned by multiple venture capital op9 erating companies, hedge funds, or private eq10 uity firms) under each of the SBIR and STTR 

11 programs; 

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

13 each Federal agency is increasing outreach and 

14 awards to firms owned and controlled by women 

15 and social or economically disadvantaged indi16 viduals under each of the SBIR and STTR pro17 grams; 

18 ‘‘(D) general information about the imple19 mentation of, and compliance with the alloca20 tion of funds required under, subsection (dd) 

21 for firms owned in majority part by venture 

22 capital operating companies, hedge funds, or 

23 private equity firms and participating in the 

24 SBIR program; 


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

2 Phase III awards and notices of noncompliance 

3 with the SBIR Policy Directive and the STTR 

4 Policy Directive filed by the Administrator with 

5 Federal agencies; and 

6 ‘‘(F) a description’’; and 

7 (C) by striking ‘‘and’’ at the end; 

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

9 the end and inserting ‘‘; and’’; and 

10 (3) by inserting after paragraph (8) the fol11 lowing: 

12 ‘‘(9) to coordinate the implementation of elec13 tronic databases at each of the Federal agencies par14 ticipating in the SBIR program or the STTR pro15 gram, including the technical ability of the partici16 pating agencies to electronically share data.’’. 

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

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

19 638(g)), as amended by this Act, is further amended— 

20 (1) by striking paragraph (10); 

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

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

23 (3) by inserting after paragraph (7) the fol24 lowing: 


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1 ‘‘(8) collect annually, and maintain in a com2 mon format in accordance with the simplified report3 ing requirements under subsection (v), such informa4 tion from awardees as is necessary to assess the 

5 SBIR program, including information necessary to 

6 maintain the database described in subsection (k), 

7 including— 

8 ‘‘(A) whether an awardee— 

9 ‘‘(i) has venture capital, hedge fund, 

10 or private equity firm investment or is ma11 jority-owned by multiple venture capital 

12 operating companies, hedge funds, or pri13 vate equity firms, and, if so— 

14 ‘‘(I) the amount of venture cap15 ital, hedge fund, or private equity firm 

16 investment that the awardee has re17 ceived as of the date of the award; 

18 and 

19 ‘‘(II) the amount of additional 

20 capital that the awardee has invested 

21 in the SBIR technology; 

22 ‘‘(ii) has an investor that— 

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

24 citizen of the United States or a law25 ful permanent resident of the United 


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1 States, and if so, the name of any 

2 such individual; or 

3 ‘‘(II) is a person that is not an 

4 individual and is not organized under 

5 the laws of a State or the United 

6 States, and if so the name of any such 

7 person; 

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

9 woman as a principal investigator; 

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

12 a socially or economically disadvantaged 

13 individual as a principal investigator; 

14 ‘‘(v) is a faculty member or a student 

15 of an institution of higher education, as 

16 that term is defined in section 101 of the 

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

18 1001); or 

19 ‘‘(vi) is located in a State described in 

20 subsection (u)(3); and 

21 ‘‘(B) a justification statement from the 

22 agency, if an awardee receives an award in an 

23 amount that is more than the award guidelines 

24 under this section;’’. 


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

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

3 638(o)), as amended by this Act, is further amended by 

4 striking paragraph (9) and inserting the following: 

5 ‘‘(9) collect annually, and maintain in a com6 mon format in accordance with the simplified report7 ing requirements under subsection (v), such informa8 tion from applicants and awardees as is necessary to 

9 assess the STTR program outputs and outcomes, in10 cluding information necessary to maintain the data11 base described in subsection (k), including— 

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

13 ‘‘(i) has venture capital, hedge fund, 

14 or private equity firm investment or is ma15 jority-owned by multiple venture capital 

16 operating companies, hedge funds, or pri17 vate equity firms, and, if so— 

18 ‘‘(I) the amount of venture cap19 ital, hedge fund, or private equity firm 

20 investment that the applicant or 

21 awardee has received as of the date of 

22 the application or award, as applica23 ble; and 

24 ‘‘(II) the amount of additional 

25 capital that the applicant or awardee 

26 has invested in the SBIR technology; 


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1 ‘‘(ii) has an investor that— 

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

3 citizen of the United States or a law4 ful permanent resident of the United 

5 States, and if so, the name of any 

6 such individual; or 

7 ‘‘(II) is a person that is not an 

8 individual and is not organized under 

9 the laws of a State or the United 

10 States, and if so the name of any such 

11 person; 

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

13 woman as a principal investigator; 

14 ‘‘(iv) is owned by a socially or eco15 nomically disadvantaged individual or has 

16 a socially or economically disadvantaged 

17 individual as a principal investigator; 

18 ‘‘(v) is a faculty member or a student 

19 of an institution of higher education, as 

20 that term is defined in section 101 of the 

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

22 1001); or 

23 ‘‘(vi) is located in a State in which the 

24 total value of contracts awarded to small 

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1 grams is less than the total value of con2 tracts awarded to small business concerns 

3 in a majority of other States, as deter4 mined by the Administrator in biennial fis5 cal years, beginning with fiscal year 2008, 

6 based on the most recent statistics com7 piled by the Administrator; and 

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

9 amount that is more than the award guidelines 

10 under this section, a statement from the agency 

11 that justifies the award amount;’’. 

12 SEC. 304. PUBLIC DATABASE. 

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

14 638(k)(1)) is amended— 

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

16 the end; 

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

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

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

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

21 has received a Phase I or Phase II SBIR or 

22 STTR award from a Federal agency, whether 

23 the small business concern— 

24 ‘‘(i) has venture capital, hedge fund, 

25 or private equity firm investment and, if 


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1 so, whether the small business concern is 

2 registered as majority-owned by multiple 

3 venture capital operating companies, hedge 

4 funds, or private equity firms as required 

5 under subsection (dd)(3); 

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

7 woman as a principal investigator; 

8 ‘‘(iii) is owned by a socially or eco9 nomically disadvantaged individual or has 

10 a socially or economically disadvantaged 

11 individual as a principal investigator; or 

12 ‘‘(iv) 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) of the Small Business Act (15 U.S.C. 

19 638(k)) is amended— 

20 (1) in paragraph (2)— 

21 (A) in the matter preceding subparagraph 

22 (A), by striking ‘‘Not later’’ and all that follows 

23 through ‘‘Act of 2000’’ and inserting ‘‘Not later 

24 than 90 days after the date of enactment of the 


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1 Creating Jobs Through Small Business Innova2 tion Act of 2011’’; 

3 (B) by striking subparagraph (C); 

4 (C) by redesignating subparagraphs (A) 

5 and (B) as subparagraphs (B) and (C), respec6 tively; 

7 (D) by inserting before subparagraph (B), 

8 as so redesignated, the following: 

9 ‘‘(A) contains, for each small business con10 cern that applies for, submits a proposal for, or 

11 receives an award under Phase I or Phase II of 

12 the SBIR program or the STTR program— 

13 ‘‘(i) the name, size, and location, and 

14 an identifying number assigned by the Ad15 ministration of the small business concern; 

16 ‘‘(ii) an abstract of the project; 

17 ‘‘(iii) the specific aims of the project; 

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

19 small business concern; 

20 ‘‘(v) the names of key individuals that 

21 will carry out the project; 

22 ‘‘(vi) the percentage of effort each in23 dividual described in clause (iv) will con24 tribute to the project; 


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1 ‘‘(vii) whether the small business con2 cern is majority-owned by multiple venture 

3 capital operating companies, hedge funds, 

4 or private equity firms; and 

5 ‘‘(viii) the Federal agency to which 

6 the application is made, and contact infor7 mation for the person or office within the 

8 Federal agency that is responsible for re9 viewing applications and making awards 

10 under the SBIR program or the STTR 

11 program;’’; 

12 (E) by redesignating subparagraphs (D) 

13 and (E) as subparagraphs (E) and (F), respec14 tively; 

15 (F) by inserting after subparagraph (C), 

16 as so redesignated, the following: 

17 ‘‘(D) includes, for each awardee— 

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

19 identifying number assigned to the award20 ee by the Administrator; 

21 ‘‘(ii) whether the awardee has venture 

22 capital, hedge fund, or private equity firm 

23 investment, and, if so— 

24 ‘‘(I) the amount of venture cap25 ital, hedge fund, or private equity firm 


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1 investment as of the date of the 

2 award; 

3 ‘‘(II) the percentage of ownership 

4 of the awardee held by a venture cap5 ital operating company, hedge fund, 

6 or private equity firm, including 

7 whether the awardee is majority8 owned by multiple venture capital op9 erating companies, hedge funds, or 

10 private equity firms; and 

11 ‘‘(III) the amount of additional 

12 capital that the awardee has invested 

13 in the SBIR technology, which infor14 mation shall be collected on an annual 

15 basis; 

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

17 affiliates of the awardee; 

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

19 awardee; 

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

21 affiliates of the awardee; and 

22 ‘‘(vi) the names of, and the percent23 age of ownership of the awardee held by— 

24 ‘‘(I) any individual who is not a 

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1 ful permanent resident of the United 

2 States; or 

3 ‘‘(II) any person that is not an 

4 individual and is not organized under 

5 the laws of a State or the United 

6 States;’’; 

7 (G) in subparagraph (E), as so redesig8 nated, by striking ‘‘and’’ at the end; 

9 (H) in subparagraph (F), as so redesig10 nated, by striking the period at the end and in11 serting ‘‘; and’’; and 

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

13 ‘‘(G) includes a timely and accurate list of 

14 any individual or small business concern that 

15 has participated in the SBIR program or STTR 

16 program that has committed fraud, waste, or 

17 abuse relating to the SBIR program or STTR 

18 program.’’; and 

19 (2) in paragraph (3), by adding at the end the 

20 following: 

21 ‘‘(C) GOVERNMENT DATABASE.—Not later 

22 than 60 days after the date established by a 

23 Federal agency for submitting applications or 

24 proposals for a Phase I or Phase II award 

25 under the SBIR program or STTR program, 


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1 the head of the Federal agency shall submit to 

2 the Administrator the data required under 

3 paragraph (2) with respect to each small busi4 ness concern that applies or submits a proposal 

5 for the Phase I or Phase II award.’’. 

6 SEC. 306. ACCURACY IN FUNDING BASE CALCULATIONS. 

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

8 date of enactment of this Act, and every year thereafter 

9 until the date that is 5 years after the date of enactment 

10 of this Act, the Comptroller General of the United States 

11 shall— 

12 (1) conduct a fiscal and management audit of 

13 the SBIR program and the STTR program for the 

14 applicable period to— 

15 (A) determine whether Federal agencies 

16 comply with the expenditure amount require17 ments under subsections (f)(1) and (n)(1) of 

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

19 638), as amended by this Act; 

20 (B) assess the extent of compliance with 

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

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

23 agencies participating in the SBIR program or 

24 the STTR program and the Administration; 

25 and 


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

3 budget of a Federal agency that each Federal 

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

6 and for what specific purposes, including the 

7 portion, if any, of such budget the Federal 

8 agency spends for salaries and expenses, travel 

9 to visit applicants, outreach events, marketing, 

10 and technical assistance; and 

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

12 Business and Entrepreneurship of the Senate and 

13 the Committee on Small Business and the Com14 mittee on Science, Space, and Technology of the 

15 House of Representatives regarding the audit con16 ducted under paragraph (1), including the assess17 ments required under subparagraph (B), and the de18 termination made under subparagraph (C) of para19 graph (1). 

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

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

22 (1) for the first report submitted under this 

23 section, the period beginning on October 1, 2005, 

24 and ending on September 30 of the last full fiscal 


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1 year before the date of enactment of this Act for 

2 which information is available; and 

3 (2) for the second and each subsequent report 

4 submitted under this section, the period— 

5 (A) beginning on October 1 of the first fis6 cal year after the end of the most recent full 

7 fiscal year relating to which a report under this 

8 section was submitted; and 

9 (B) ending on September 30 of the last 

10 full fiscal year before the date of the report. 

11 SEC. 307. CONTINUED EVALUATION BY THE NATIONAL 

12 ACADEMY OF SCIENCES. 

13 Section 108 of the Small Business Reauthorization 

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

15 at the end the following: 

16 ‘‘(e) EXTENSIONS AND ENHANCEMENTS OF AUTHOR17 ITY.— 

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

19 after the date of enactment of the Creating Jobs 

20 Through Small Business Innovation Act of 2011, 

21 the head of each agency described in subsection (a), 

22 in consultation with the Small Business Administra23 tion, shall cooperatively enter into an agreement 

24 with the National Academy of Sciences for the Na25 tional Research Council to, not later than 4 years 


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1 after the date of enactment of the Creating Jobs 

2 Through Small Business Innovation Act of 2011, 

3 and every 4 years thereafter— 

4 ‘‘(A) continue the most recent study under 

5 this section relating to— 

6 ‘‘(i) the issues described in subpara7 graphs (A), (B), (C), and (E) of subsection 

8 (a)(1); and 

9 ‘‘(ii) the effectiveness of the govern10 ment and public databases described in 

11 section 9(k) of the Small Business Act (15 

12 U.S.C. 638(k)) in reducing vulnerabilities 

13 of the SBIR program and the STTR pro14 gram to fraud, waste, and abuse, particu15 larly with respect to Federal agencies 

16 funding duplicative proposals and business 

17 concerns falsifying information in pro18 posals; 

19 ‘‘(B) make recommendations with respect 

20 to the issues described in subparagraph (A)(ii) 

21 and subparagraphs (A), (D), and (E) of sub22 section (a)(2); and 

23 ‘‘(C) estimate, to the extent practicable, 

24 the number of jobs created by the SBIR pro25 gram or STTR program of the agency. 


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1 ‘‘(2) CONSULTATION.—An agreement under 

2 paragraph (1) shall require the National Research 

3 Council to ensure there is participation by and con4 sultation with the small business community, the 

5 Administration, and other interested parties as de6 scribed in subsection (b). 

7 ‘‘(3) REPORTING.—An agreement under para8 graph (1) shall require that not later than 4 years 

9 after the date of enactment of the Creating Jobs 

10 Through Small Business Innovation Act of 2011, 

11 and every 4 years thereafter, the National Research 

12 Council shall submit to the head of the agency enter13 ing into the agreement, the Committee on Small 

14 Business and Entrepreneurship of the Senate, and 

15 the Committee on Small Business and the Com16 mittee on Science, Space, and Technology of the 

17 House of Representatives a report regarding the 

18 study conducted under paragraph (1) and containing 

19 the recommendations described in paragraph (1).’’. 

20 SEC. 308. TECHNOLOGY INSERTION REPORTING REQUIRE21 MENTS. 

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

23 as amended by this Act, is further amended by adding 

24 at the end the following: 


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1 ‘‘(jj) PHASE III REPORTING.—The annual SBIR or 

2 STTR report to Congress by the Administration under 

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

4 made by the Federal agency— 

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

6 the agency or the non-Federal source of capital mak7 ing the Phase III award; 

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

9 individual receiving the Phase III award; and 

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

11 award.’’. 

12 SEC. 309. OBTAINING CONSENT FROM SBIR AND STTR AP13 PLICANTS TO RELEASE CONTACT INFORMA14 TION TO ECONOMIC DEVELOPMENT ORGANI15 ZATIONS. 

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

17 as amended by this Act, is further amended by adding 

18 at the end the following: 

19 ‘‘(kk) CONSENT TO RELEASE CONTACT INFORMA20 TION TO ORGANIZATIONS.— 

21 ‘‘(1) ENABLING CONCERN TO GIVE CONSENT.— 

22 Each Federal agency required by this section to con23 duct an SBIR program or an STTR program shall 

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1 eral agency whether the Federal agency has the con2 sent of the concern to— 

3 ‘‘(A) identify the concern to appropriate 

4 local and State-level economic development or5 ganizations as an SBIR applicant or an STTR 

6 applicant; and 

7 ‘‘(B) release the contact information of the 

8 concern to such organizations. 

9 ‘‘(2) RULES.—The Administrator shall estab10 lish rules to implement this subsection. The rules 

11 shall include a requirement that a Federal agency 

12 include in the SBIR and STTR application a provi13 sion through which the applicant can indicate con14 sent for purposes of paragraph (1).’’. 

15 SEC. 310. PILOT TO ALLOW FUNDING FOR ADMINISTRA16 TIVE, OVERSIGHT, AND CONTRACT PROC17 ESSING COSTS. 

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

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

20 amended by adding at the end the following: 

21 ‘‘(ll) ASSISTANCE FOR ADMINISTRATIVE, OVER22 SIGHT, AND CONTRACT PROCESSING COSTS.— 

23 ‘‘(1) IN GENERAL.—Subject to paragraph (2), 

24 for the 3 full fiscal years beginning after the date 

25 of enactment of this subsection, the Administrator 


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1 shall allow each Federal agency required to conduct 

2 an SBIR program to use not more than 3 percent 

3 of the funds allocated to the SBIR program of the 

4 Federal agency for— 

5 ‘‘(A) the administration of the SBIR pro6 gram or the STTR program of the Federal 

7 agency; 

8 ‘‘(B) the provision of outreach and tech9 nical assistance relating to the SBIR program 

10 or STTR program of the Federal agency, in11 cluding technical assistance site visits and per12 sonnel interviews; 

13 ‘‘(C) the implementation of commercializa14 tion and outreach initiatives that were not in ef15 fect on the date of enactment of this subsection; 

16 ‘‘(D) carrying out the program under sub17 section (y); 

18 ‘‘(E) activities relating to oversight and 

19 congressional reporting, including the waste, 

20 fraud, and abuse prevention activities described 

21 in section 312(a)(1)(B)(ii) of the Creating Jobs 

22 Through Small Business Innovation Act of 

23 2011; 

24 ‘‘(F) targeted reviews of recipients of 

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1 gram of the Federal agency that the head of 

2 the Federal agency determines are at high risk 

3 for fraud, waste, or abuse, to ensure compliance 

4 with requirements of the SBIR program or 

5 STTR program, respectively; 

6 ‘‘(G) the implementation of oversight and 

7 quality control measures, including verification 

8 of reports and invoices and cost reviews; 

9 ‘‘(H) carrying out subsection (dd); 

10 ‘‘(I) carrying out subsection (hh); 

11 ‘‘(J) contract processing costs relating to 

12 the SBIR program or STTR program of the 

13 Federal agency; and 

14 ‘‘(K) funding for additional personnel and 

15 assistance with application reviews. 

16 ‘‘(2) PERFORMANCE CRITERIA.—A Federal 

17 agency may not use funds as authorized under para18 graph (1) until after the effective date of perform19 ance criteria, which the Administrator shall estab20 lish, to measure any benefits of using funds as au21 thorized under paragraph (1) and to assess continu22 ation of the authority under paragraph (1). 

23 ‘‘(3) RULES.—Not later than 180 days after 

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1 istrator shall issue rules to carry out this sub2 section.’’. 

3 (b) TECHNICAL AND CONFORMING AMENDMENTS.— 

4 (1) IN GENERAL.—Section 9 of the Small Busi5 ness Act (15 U.S.C. 638), as amended by this Act, 

6 is further amended— 

7 (A) in subsection (f)(2), by striking ‘‘shall 

8 not’’ and all that follows through ‘‘make avail9 able for the purpose’’ and inserting ‘‘shall not 

10 make available for the purpose’’; and 

11 (B) in subsection (y)— 

12 (i) by striking paragraph (4); and 

13 (ii) by redesignating paragraphs (5) 

14 and (6) as paragraphs (4) and (5), respec15 tively. 

16 (2) TRANSITIONAL RULE.—Notwithstanding the 

17 amendments made by paragraph (1), subsection 

18 (f)(2) and (y)(4) of section 9 of the Small Business 

19 Act (15 U.S.C. 638), as in effect on the day before 

20 the date of enactment of this Act, shall continue to 

21 apply to each Federal agency until the effective date 

22 of the performance criteria established by the Ad23 ministrator under subsection (ll)(2) of section 9 of 

24 the Small Business Act, as added by subsection (a). 


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1 (3) PROSPECTIVE REPEAL.—Effective on the 

2 first day of the fourth full fiscal year following the 

3 date of enactment of this Act, section 9 of the Small 

4 Business Act (15 U.S.C. 638), as amended by para5 graph (1) of this section, is amended— 

6 (A) in subsection (f)(2), by striking ‘‘shall 

7 not make available for the purpose’’ and insert8 ing the following: ‘‘shall not— 

9 ‘‘(A) use any of its SBIR budget estab10 lished pursuant to paragraph (1) for the pur11 pose of funding administrative costs of the pro12 gram, including costs associated with salaries 

13 and expenses; or 

14 ‘‘(B) make available for the purpose’’; and 

15 (B) in subsection (y)— 

16 (i) by redesignating paragraphs (4) 

17 and (5) as paragraphs (5) and (6), respec18 tively; and 

19 (ii) by inserting after paragraph (3) 

20 the following: 

21 ‘‘(4) FUNDING.— 

22 ‘‘(A) IN GENERAL.—The Secretary of De23 fense and each Secretary of a military depart24 ment may use not more than an amount equal 

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1 partment of Defense or the military department 

2 pursuant to the Small Business Innovation Re3 search Program for payment of expenses in4 curred to administer the Commercialization 

5 Pilot Program under this subsection. 

6 ‘‘(B) LIMITATIONS.—The funds described 

7 in subparagraph (A)— 

8 ‘‘(i) shall not be subject to the limita9 tions on the use of funds in subsection 

10 (f)(2); and 

11 ‘‘(ii) shall not be used to make Phase 

12 III awards.’’. 

13 SEC. 311. GAO STUDY WITH RESPECT TO VENTURE CAPITAL 

14 OPERATING COMPANY, HEDGE FUND, AND 

15 PRIVATE EQUITY FIRM INVOLVEMENT. 

16 Not later than 2 years after the date of enactment 

17 of this Act, and every 2 years thereafter, the Comptroller 

18 General of the United States shall— 

19 (1) conduct a study of the impact of require20 ments relating to venture capital operating company, 

21 hedge fund, and private equity firm involvement 

22 under section 9 of the Small Business Act; and 

23 (2) submit to Congress a report regarding the 

24 study conducted under paragraph (1). 


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1 SEC. 312. REDUCING VULNERABILITY OF SBIR AND STTR 

2 PROGRAMS TO FRAUD, WASTE, AND ABUSE. 

3 (a) FRAUD, WASTE, AND ABUSE PREVENTION.— 

4 (1) GUIDELINES FOR FRAUD, WASTE, AND

5 ABUSE PREVENTION.— 

6 (A) AMENDMENTS REQUIRED.—Not later 

7 than 90 days after the date of enactment of 

8 this Act, the Administrator shall amend the 

9 SBIR Policy Directive and the STTR Policy 

10 Directive to include measures to prevent fraud, 

11 waste, and abuse in the SBIR program and the 

12 STTR program. 

13 (B) CONTENT OF AMENDMENTS.—The 

14 amendments required under subparagraph (A) 

15 shall include— 

16 (i) definitions or descriptions of fraud, 

17 waste, and abuse; 

18 (ii) a requirement that the Inspectors 

19 General of each Federal agency that par20 ticipates in the SBIR program or the 

21 STTR program cooperate to— 

22 (I) establish fraud detection indi23 cators; 

24 (II) review regulations and oper25 ating procedures of the Federal agen26 cies; 


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1 (III) coordinate information 

2 sharing between the Federal agencies; 

3 and 

4 (IV) improve the education and 

5 training of, and outreach to— 

6 (aa) administrators of the 

7 SBIR program and the STTR 

8 program of each Federal agency; 

9 (bb) applicants to the SBIR 

10 program or the STTR program; 

11 and 

12 (cc) recipients of awards 

13 under the SBIR program or the 

14 STTR program; 

15 (iii) guidelines for the monitoring and 

16 oversight of applicants to and recipients of 

17 awards under the SBIR program or the 

18 STTR program; and 

19 (iv) a requirement that each Federal 

20 agency that participates in the SBIR pro21 gram or STTR program include the tele22 phone number of the hotline established 

23 under paragraph (2)— 

24 (I) on the Web site of the Fed25 eral agency; and 


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1 (II) in any solicitation or notice 

2 of funding opportunity issued by the 

3 Federal agency for the SBIR program 

4 or the STTR program. 

5 (2) FRAUD, WASTE, AND ABUSE PREVENTION

6 HOTLINE.— 

7 (A) HOTLINE ESTABLISHED.—The Admin8 istrator shall establish a telephone hotline that 

9 allows individuals to report fraud, waste, and 

10 abuse in the SBIR program or STTR program. 

11 (B) PUBLICATION.—The Administrator 

12 shall include the telephone number for the hot13 line established under subparagraph (A) on the 

14 Web site of the Administration. 

15 (b) STUDY AND REPORT.—Not later than 1 year 

16 after the date of enactment of this Act, and every 3 years 

17 thereafter, the Comptroller General of the United States 

18 shall— 

19 (1) conduct a study that evaluates— 

20 (A) the implementation by each Federal 

21 agency that participates in the SBIR program 

22 or the STTR program of the amendments to 

23 the SBIR Policy Directive and the STTR Policy 

24 Directive made pursuant to subsection (a); 


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1 (B) the effectiveness of the management 

2 information system of each Federal agency that 

3 participates in the SBIR program or STTR 

4 program in identifying duplicative SBIR and 

5 STTR projects; 

6 (C) the effectiveness of the risk manage7 ment strategies of each Federal agency that 

8 participates in the SBIR program or STTR 

9 program in identifying areas of the SBIR pro10 gram or the STTR program that are at high 

11 risk for fraud; 

12 (D) technological tools that may be used to 

13 detect patterns of behavior that may indicate 

14 fraud by applicants to the SBIR program or 

15 the STTR program; 

16 (E) the success of each Federal agency 

17 that participates in the SBIR program or 

18 STTR program in reducing fraud, waste, and 

19 abuse in the SBIR program or the STTR pro20 gram of the Federal agency; and 

21 (F) the extent to which the Inspector Gen22 eral of each Federal agency that participates in 

23 the SBIR program or STTR program effec24 tively conducts investigations of individuals al25 leged to have submitted false claims or violated 


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1 Federal law relating to fraud, conflicts of inter2 est, bribery, gratuity, or other misconduct; and 

3 (2) submit to the Committee on Small Business 

4 and Entrepreneurship of the Senate, the Committee 

5 on Small Business and the Committee on Science, 

6 Space, and Technology of the House of Representa7 tives, and the head of each Federal agency that par8 ticipates in the SBIR program or STTR program a 

9 report on the results of the study conducted under 

10 subparagraph (A). 

11 SEC. 313. SIMPLIFIED PAPERWORK REQUIREMENTS. 

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

13 638(v)) is amended— 

14 (1) in the subsection heading, by striking ‘‘SIM15 PLIFIED REPORTING REQUIREMENTS’’ and inserting 

16 ‘‘REDUCING PAPERWORK AND COMPLIANCE BUR17 DEN’’; 

18 (2) by striking ‘‘The Administrator’’ and insert19 ing the following: 

20 ‘‘(1) STANDARDIZATION OF REPORTING RE21 QUIREMENTS.—The Administrator’’; and 

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

23 ‘‘(2) SIMPLIFICATION OF APPLICATION AND

24 AWARD PROCESS.—Not later than one year after the 

25 date of enactment of this paragraph, and after a peVerDate Mar 15 2010 23:36 Apr 08, 2011 Jkt 099200 PO 00000 Frm 00071 Fmt 6652 Sfmt 6201 E:\BILLS\H1425.IH H1425

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1 riod of public comment, the Administrator shall 

2 issue regulations or guidelines, taking into consider3 ation the unique needs of each Federal agency, to 

4 ensure that each Federal agency required to carry 

5 out an SBIR program or STTR program simplifies 

6 and standardizes the program proposal, selection, 

7 contracting, compliance, and audit procedures for 

8 the SBIR program or STTR program of the Federal 

9 agency (including procedures relating to overhead 

10 rates for applicants and documentation require11 ments) to reduce the paperwork and regulatory com12 pliance burden on small business concerns applying 

13 to and participating in the SBIR program or STTR 

14 program.’’. 

15 TITLE IV—POLICY DIRECTIVES 

16 SEC. 401. CONFORMING AMENDMENTS TO THE SBIR AND 

17 THE STTR POLICY DIRECTIVES. 

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

19 date of enactment of this Act, the Administrator shall pro20 mulgate amendments to the SBIR Policy Directive and 

21 the STTR Policy Directive to conform such directives to 

22 this Act and the amendments made by this Act. 

23 (b) PUBLISHING SBIR POLICY DIRECTIVE AND THE

24 STTR POLICY DIRECTIVE IN THE FEDERAL REGISTER.— 

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


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1 this Act, the Administrator shall publish the amended 

2 SBIR Policy Directive and the amended STTR Policy Di3 rective in the Federal Register. 

4 TITLE V—OTHER PROVISIONS 

5 SEC. 501. REPORT ON SBIR AND STTR PROGRAM GOALS. 

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

7 as amended by this Act, is further amended by adding 

8 at the end the following: 

9 ‘‘(mm) ANNUAL REPORT ON SBIR AND STTR PRO10 GRAM GOALS.— 

11 ‘‘(1) DEVELOPMENT OF METRICS.—The head of 

12 each Federal agency required to participate in the 

13 SBIR program or the STTR program shall develop 

14 metrics to evaluate the effectiveness, and the benefit 

15 to the people of the United States, of the SBIR pro16 gram and the STTR program of the Federal agency 

17 that— 

18 ‘‘(A) are science-based and statistically 

19 driven; 

20 ‘‘(B) reflect the mission of the Federal 

21 agency; and 

22 ‘‘(C) include factors relating to the eco23 nomic impact of the programs. 

24 ‘‘(2) EVALUATION.—The head of each Federal 

25 agency described in paragraph (1) shall conduct an 


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1 annual evaluation using the metrics developed under 

2 paragraph (1) of— 

3 ‘‘(A) the SBIR program and the STTR 

4 program of the Federal agency; and 

5 ‘‘(B) the benefits to the people of the 

6 United States of the SBIR program and the 

7 STTR program of the Federal agency. 

8 ‘‘(3) REPORT.— 

9 ‘‘(A) IN GENERAL.—The head of each 

10 Federal agency described in paragraph (1) shall 

11 submit to the appropriate committees of Con12 gress and the Administrator an annual report 

13 describing in detail the results of an evaluation 

14 conducted under paragraph (2). 

15 ‘‘(B) PUBLIC AVAILABILITY OF REPORT.— 

16 The head of each Federal agency described in 

17 paragraph (1) shall make each report submitted 

18 under subparagraph (A) available to the public 

19 online. 

20 ‘‘(C) DEFINITION.—In this paragraph, the 

21 term ‘appropriate committees of Congress’ 

22 means— 

23 ‘‘(i) the Committee on Small Business 

24 and Entrepreneurship of the Senate; and 


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1 ‘‘(ii) the Committee on Small Busi2 ness and the Committee on Science, Space, 

3 and Technology of the House of Represent4 atives.’’. 

5 SEC. 502. COMPETITIVE SELECTION PROCEDURES FOR 

6 SBIR AND STTR PROGRAMS. 

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

8 as amended by this Act, is further amended by adding 

9 at the end the following: 

10 ‘‘(nn) COMPETITIVE SELECTION PROCEDURES FOR

11 SBIR AND STTR PROGRAMS.—All funds awarded, appro12 priated, or otherwise made available in accordance with 

13 subsection (f) or (n) must be awarded pursuant to com14 petitive and merit-based selection procedures.’’. 

15 SEC. 503. LOAN RESTRICTIONS. 

16 (a) RULE REQUIRED.—For purposes of section 9 of 

17 the Small Business Act (15 U.S.C. 638), the Adminis18 trator shall promulgate a rule not later than 180 days 

19 after the date of enactment of this Act that determines 

20 what restrictions, conditions, or covenants contained in a 

21 note, bond, debenture, other evidence of indebtedness, or 

22 preferred stock constitute affiliation for purposes of sec23 tion 121.103(a) of title 13, Code of Federal Regulations, 

24 as in effect on January 1, 2011. 


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1 (b) FAILURE TO PROMULGATE.—If the Adminis2 trator fails to promulgate a rule in the time period re3 quired under subsection (a), the holder of a note, bond, 

4 debenture, other evidence of indebtedness, or preferred 

5 stock shall be considered to be affiliated with the debtor 

6 or issuer of the preferred stock until such time as the Ad7 ministrator promulgates the rule required under sub8 section (a). 

Æ 


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