IB 

Union Calendar No. 85 

112TH CONGRESS 

1ST SESSION H. R. 1425 

[Report No. 112–90, Parts I and II] 

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 

MAY 3, 2011 

Rereferred to the Committee on Small Business, and in addition to the Committees on Science, Space, and Technology and Armed Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned 

MAY 26, 2011 

Reported from the Committee on Science, Space, and Technology with an 

amendment 

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

JULY 1, 2011 

Additional sponsors: Mr. LIPINSKI, Mrs. BIGGERT, Mr. COBLE, Mr. WEST, 

Mr. CLARKE of Michigan, Mr. LUJA ́N, Mr. WOMACK, Mrs. LOWEY, Mr. 

HANNA, Mr. WALSH of Illinois, Mr. CHABOT, Mr. BARTLETT, Mr. 

MULVANEY, Mr. BARLETTA, Mr. TIPTON, Mr. LANCE, Mr. JONES, Ms. 

HERRERA BEUTLER, and Mr. SMITH of Texas 

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JULY 1, 2011 

Reported from the Committee on Small Business with an amendment 

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

JULY 1, 2011 

Committee on Armed Services discharged; committed to the Committee of the 

Whole House on the State of the Union and ordered to be printed 

[For text of introduced bill, see copy of bill as introduced on April 7, 2011] 

A BILL 

To reauthorize and improve the SBIR and STTR programs, 

and for other purposes. 

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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: 

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. 

Sec. 207. Phase 0 Proof of Concept Partnership pilot program. 

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. 

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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. 

Sec. 314. Reducing fraud, waste, and abuse. 

TITLE IV—POLICY DIRECTIVES 

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

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. 

Sec. 504. Program diversification. 

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 meaning given that term under section 3 of the Small 

14 Business Act (15 U.S.C. 632). 

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1 TITLE I—REAUTHORIZATION OF 

2 THE SBIR AND STTR PROGRAMS 

3 SEC. 101. EXTENSION OF TERMINATION DATES. 

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

5 (15 U.S.C. 638(m)) is amended— 

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

7 follows through ‘‘the authorization’’ and inserting 

8 ‘‘TERMINATION.—The authorization’’; 

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

10 and 

11 (3) by striking paragraph (2). 

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

13 Act (15 U.S.C. 638(n)(1)(A)) is amended— 

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

15 follows through ‘‘with respect’’ and inserting ‘‘IN GEN16 ERAL.—With respect’’; 

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

18 and 

19 (3) by striking clause (ii). 

20 SEC. 102. SBIR AND STTR AWARD LEVELS. 

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

22 Small Business Act (15 U.S.C. 638(j)(2)(D)) is 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 (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) ANNUAL ADJUSTMENTS.—Section 9 of the Small 

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

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

13 every 5 years to reflect economic adjustments and 

14 programmatic considerations’’ and inserting ‘‘every 

15 year for inflation’’; and 

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

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

18 which the Administrator shall adjust for inflation an19 nually)’’ after ‘‘$1,000,000,’’. 

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

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

22 this Act, is further amended by adding at the end the fol23 lowing: 

24 ‘‘(aa) LIMITATION ON SIZE OF 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) MAINTENANCE 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 an award recipient has re16 ceived any venture capital, hedge fund, or pri17 vate equity firm investment and, if so, whether 

18 the recipient is majority-owned by multiple ven19 ture capital operating companies, hedge funds, 

20 or private equity firms. 

21 ‘‘(3) REPORTS.—The Administrator shall in22 clude the information described in paragraph (2) in 

23 the annual report of the Administrator to Congress. 

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

25 subsection shall be construed to prevent a Federal 

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1 agency from supplementing an award under the 

2 SBIR program or the STTR program using funds of 

3 the Federal agency that are not part of the SBIR pro4 gram or the STTR program of the Federal agency.’’. 

5 SEC. 103. AGENCY AND PROGRAM FLEXIBILITY. 

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

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

8 the end the following: 

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

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

11 concern that received a Phase I award from a Federal 

12 agency under this section shall be eligible to receive 

13 a subsequent Phase II award from another Federal 

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

15 the relevant component of the Federal agency makes 

16 a written determination that the topics of the relevant 

17 awards are the same and both agencies report the 

18 awards to the Administrator for inclusion in the pub19 lic database under subsection (k). 

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

21 A small business concern that received a Phase I 

22 award under this section under the SBIR program or 

23 the STTR program may receive a subsequent Phase 

24 II award in either the SBIR program or the STTR 

25 program and the participating agency or agencies 

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1 shall report the awards to the Administrator for in2 clusion in the public database under subsection (k).’’. 

3 SEC. 104. ELIMINATION OF PHASE II INVITATIONS. 

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

5 638(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 Phase II, that will further’’; 

10 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 Phase 

15 II, that will further develop proposals that’’. 

16 SEC. 105. PHASE FLEXIBILITY. 

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

18 as amended by this Act, is further amended by adding at 

19 the end the following: 

20 ‘‘(cc) PHASE I REQUIRED.—Under this section, a Fed21 eral agency shall provide to a small business concern an 

22 award under Phase II of an SBIR program with respect 

23 to a project only if such agency finds that the small business 

24 concern has been provided an award under Phase I of an 

25 SBIR program with respect to such project or has completed 

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1 the determinations described in subsection (e)(4)(A) with 

2 respect to such project despite not having been provided a 

3 Phase I award.’’. 

4 SEC. 106. PARTICIPATION BY FIRMS WITH SUBSTANTIAL IN5 VESTMENT FROM MULTIPLE VENTURE CAP6 ITAL OPERATING COMPANIES, HEDGE FUNDS, 

7 OR PRIVATE EQUITY FIRMS IN A PORTION OF 

8 THE SBIR PROGRAM. 

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

10 (15 U.S.C. 638), as amended by this Act, is further amend11 ed by adding at the end the following: 

12 ‘‘(dd) PARTICIPATION OF SMALL BUSINESS CONCERNS

13 MAJORITY-OWNED BY VENTURE CAPITAL OPERATING COM14 PANIES, HEDGE FUNDS, OR PRIVATE EQUITY FIRMS IN

15 THE SBIR PROGRAM.— 

16 ‘‘(1) AUTHORITY.—Upon a written determina17 tion described in paragraph (2) provided to the Ad18 ministrator, the Committee on Small Business and 

19 Entrepreneurship of the Senate, and the Committee 

20 on Small Business and the Committee on Science, 

21 Space, and Technology of the House of Representa22 tives not later than 30 days before the date on which 

23 an award is made— 

24 ‘‘(A) the Director of the National Institutes 

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1 trator of the National Aeronautics and Space 

2 Administration, and the Director of the National 

3 Science Foundation may award not more than 

4 45 percent of the funds allocated for the SBIR 

5 program of the Federal agency to small business 

6 concerns that are owned in majority part by 

7 multiple venture capital operating companies, 

8 hedge funds, or private equity firms through 

9 competitive, merit-based procedures that are 

10 open to all eligible small business concerns; and 

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

12 than a Federal agency described in subpara13 graph (A) that participates in the SBIR pro14 gram may award not more than 35 percent of 

15 the funds allocated for the SBIR program of the 

16 Federal agency to small business concerns that 

17 are owned in majority part by multiple venture 

18 capital operating companies, hedge funds, or pri19 vate equity firms through competitive, merit20 based procedures that are open to all eligible 

21 small business concerns. 

22 ‘‘(2) DETERMINATION.—A written determination 

23 described in this paragraph is a written determina24 tion by the head of a Federal agency that explains 

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1 how the use of the authority under paragraph (1) 

2 will— 

3 ‘‘(A) induce additional venture capital, 

4 hedge fund, or private equity firm funding of 

5 small business innovations; 

6 ‘‘(B) substantially contribute to the mission 

7 of the Federal agency; 

8 ‘‘(C) demonstrate a need for public research; 

9 and 

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

11 small business concerns for additional financing 

12 for the SBIR project. 

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

14 that is majority-owned by multiple venture capital 

15 operating companies, hedge funds, or private equity 

16 firms and qualified for participation in the program 

17 authorized under paragraph (1) shall— 

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

19 date that the small business concern submits an 

20 application for an award under the SBIR pro21 gram; and 

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

23 the small business concern is registered under 

24 subparagraph (A) as majority-owned by multiple 

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1 venture capital operating companies, hedge 

2 funds, or private equity firms. 

3 ‘‘(4) COMPLIANCE.— 

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

5 agency that makes an award under this sub6 section during a fiscal year shall collect and sub7 mit to the Administrator data relating to the 

8 number and dollar amount of Phase I awards, 

9 Phase II awards, and any other category of 

10 awards by the Federal agency under the SBIR 

11 program during that fiscal year. 

12 ‘‘(B) ANNUAL REPORTING.—The Adminis13 trator shall include as part of each annual re14 port by the Administration under subsection 

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

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

17 Federal agency that makes an award under this 

18 subsection during the fiscal year with the max19 imum percentages under paragraph (1). 

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

21 awards more than the percent of the funds allocated 

22 for the SBIR program of the Federal agency author23 ized under paragraph (1) for a purpose described in 

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

25 transfer an amount equal to the amount awarded in 

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1 excess of the amount authorized under paragraph (1) 

2 to the funds for general SBIR programs from the non3 SBIR and non-STTR research and development funds 

4 of the Federal agency not later than 180 days after 

5 the date on which the Federal agency made the award 

6 that caused the total awarded under paragraph (1) to 

7 be more than the amount authorized under paragraph 

8 (1) for a purpose described in paragraph (1). 

9 ‘‘(6) FINAL DECISIONS ON APPLICATIONS UNDER

10 THE SBIR PROGRAM.— 

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

12 term ‘covered small business concern’ means a 

13 small business concern that— 

14 ‘‘(i) was not majority-owned by mul15 tiple venture capital operating companies, 

16 hedge funds, or private equity firms on the 

17 date on which the small business concern 

18 submitted an application in response to a 

19 solicitation under the SBIR programs; and 

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

21 the SBIR program is majority-owned by 

22 multiple venture capital operating compa23 nies, hedge funds, or private equity firms. 

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

25 does not make an award under a solicitation 

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1 under the SBIR program before the date that is 

2 9 months after the date on which the period for 

3 submitting applications under the solicitation 

4 ends— 

5 ‘‘(i) a covered small business concern is 

6 eligible to receive the award, without regard 

7 to whether the covered small business con8 cern meets the requirements for receiving an 

9 award under the SBIR program for a small 

10 business concern that is majority-owned by 

11 multiple venture capital operating compa12 nies, hedge funds, or private equity firms, if 

13 the covered small business concern meets all 

14 other requirements for such an award; and 

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

16 shall transfer an amount equal to any 

17 amount awarded to a covered small business 

18 concern under the solicitation to the funds 

19 for general SBIR programs from the non20 SBIR and non-STTR research and develop21 ment funds of the Federal agency, not later 

22 than 90 days after the date on which the 

23 Federal agency makes the award. 

24 ‘‘(7) EVALUATION CRITERIA.—A Federal agency 

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1 ment from hedge funds or private equity firms as a 

2 criterion for the award of contracts under the SBIR 

3 program or STTR program.’’. 

4 (b) TECHNICAL AND CONFORMING AMENDMENT.—Sec5 tion 3 of the Small Business Act (15 U.S.C. 632) is amend6 ed by adding at the end the following: 

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

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

9 means an entity described in clause (i), (v), or (vi) of sec10 tion 121.103(b)(5) of title 13, Code of Federal Regulations 

11 (or any successor thereto). 

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

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

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

15 1851(h)(2)). 

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

17 ‘private equity firm’ has the meaning given the term ‘pri18 vate equity fund’ in section 13(h)(2) of the Bank Holding 

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

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1 SEC. 107. ENSURING THAT INNOVATIVE SMALL BUSINESSES 

2 WITH SUBSTANTIAL INVESTMENT FROM VEN3 TURE CAPITAL OPERATING COMPANIES, 

4 HEDGE FUNDS, OR PRIVATE EQUITY FIRMS 

5 ARE ABLE TO PARTICIPATE IN THE SBIR AND 

6 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 at 

9 the end the following: 

10 ‘‘(ee) VENTURE CAPITAL OPERATING COMPANIES, 

11 HEDGE FUNDS, AND PRIVATE EQUITY FIRMS.—Effective 

12 only for the SBIR and STTR programs the following shall 

13 apply: 

14 ‘‘(1) A business concern that has more than 500 

15 employees shall not qualify as a small business con16 cern. 

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

18 concern is independently owned and operated under 

19 section 3(a)(1) or meets the small business size stand20 ards instituted under section 3(a)(2), the Adminis21 trator shall not consider a business concern to be af22 filiated with a venture capital operating company, 

23 hedge fund, or private equity firm (or with any other 

24 business that the venture capital operating company, 

25 hedge fund, or private equity firm has financed) if— 

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1 ‘‘(A) the venture capital operating com2 pany, hedge fund, or private equity firm does 

3 not own 50 percent or more of the business con4 cern; and 

5 ‘‘(B) employees of the venture capital oper6 ating company, hedge fund, or private equity 

7 firm do not constitute a majority of the board of 

8 directors of the business concern. 

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

10 ‘independently owned and operated’ if— 

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

12 more natural persons or venture capital oper13 ating companies, hedge funds, or private equity 

14 firms; 

15 ‘‘(B) there is no single venture capital oper16 ating company, hedge fund, or private equity 

17 firm that owns 50 percent or more of the busi18 ness concern; and 

19 ‘‘(C) there is no single venture capital oper20 ating company, hedge fund, or private equity 

21 firm the employees of which constitute a major22 ity of the board of directors of the business con23 cern. 

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

25 hedge fund, or private equity firm controlled by a 

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1 business with more than 500 employees (in this para2 graph referred to as a ‘VCOC, hedge fund, or private 

3 equity firm under large business control’) has an 

4 ownership interest in a small business concern that is 

5 owned in majority part by venture capital operating 

6 companies, hedge funds, or private equity firms, the 

7 small business concern is eligible to receive an award 

8 under the SBIR or STTR program only if— 

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

10 funds, or private equity firms under large busi11 ness control have an ownership interest in the 

12 small business concern; and 

13 ‘‘(B) the VCOCs, hedge funds, or private eq14 uity firms under large business control do not 

15 collectively own more than 20 percent of the 

16 small business concern.’’. 

17 SEC. 108. SBIR AND STTR SPECIAL ACQUISITION PREF18 ERENCE. 

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

20 638(r)) is amended by adding at the end the following: 

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

22 practicable, Federal agencies and Federal prime con23 tractors shall issue Phase III awards relating to tech24 nology, including sole source awards, to the SBIR 

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

3 SEC. 109. 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 further amended by adding at 

8 the end the following: 

9 ‘‘(ff) COLLABORATING WITH FEDERAL LABORATORIES

10 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 ‘‘(4) ADVANCE PAYMENT.—If a small business 

9 concern receiving an award under this section enters 

10 into an agreement with a Federal laboratory or feder11 ally funded research and development center for por12 tions of the activities to be performed under that 

13 award, the Federal laboratory or federally funded re14 search and development center may not require ad15 vance payment from the small business concern in an 

16 amount greater than the amount necessary to pay for 

17 30 days of such activities.’’. 

18 SEC. 110. NOTICE REQUIREMENT. 

19 (a) SBIR PROGRAM.—Section 9(g) of the Small Busi20 ness Act (15 U.S.C. 638(g)) is amended— 

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

22 end; 

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

24 the end and inserting ‘‘; and’’; and 

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

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1 ‘‘(12) provide timely notice to the Administrator 

2 of any case or controversy before any Federal judicial 

3 or administrative tribunal concerning the SBIR pro4 gram of the Federal agency.’’. 

5 (b) STTR PROGRAM.—Section 9(o) of the Small Busi6 ness Act (15 U.S.C. 638(o)) is amended— 

7 (1) by striking paragraph (15); 

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

9 the end and inserting ‘‘; and’’; 

10 (3) by redesignating paragraph (16) as para11 graph (15); and 

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

13 ‘‘(16) provide timely notice to the Administrator 

14 of any case or controversy before any Federal judicial 

15 or administrative tribunal concerning the STTR pro16 gram of the Federal agency.’’. 

17 SEC. 111. ADDITIONAL SBIR AND STTR AWARDS. 

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

19 as amended by this Act, is further amended by adding at 

20 the end the following: 

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

22 ‘‘(1) EXPRESS AUTHORITY FOR AWARDING A SE23 QUENTIAL PHASE II AWARD.—A small business con24 cern that receives a Phase II SBIR award or a Phase 

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1 ceive one additional Phase II SBIR award or Phase 

2 II STTR award for continued work on that project. 

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

4 head of a Federal agency shall verify that any activ5 ity to be performed with respect to a project with a 

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

7 been funded under the SBIR program or STTR pro8 gram of another Federal agency.’’. 

9 TITLE II—OUTREACH AND COM10 MERCIALIZATION INITIA11 TIVES 

12 SEC. 201. TECHNICAL ASSISTANCE FOR AWARDEES. 

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

14 638(q)) is amended— 

15 (1) in paragraph (1)— 

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

17 ‘‘SBIR program’’; and 

18 (B) by striking ‘‘SBIR projects’’ and insert19 ing ‘‘SBIR or STTR projects’’; 

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

21 inserting ‘‘5 years’’; and 

22 (3) in paragraph (3)— 

23 (A) in subparagraph (A)— 

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

25 ‘‘SBIR’’; and 

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1 (ii) by striking ‘‘$4,000’’ and inserting 

2 ‘‘$5,000’’; 

3 (B) by striking subparagraph (B) and in4 serting the following: 

5 ‘‘(B) PHASE II.—A Federal agency de6 scribed in paragraph (1) may— 

7 ‘‘(i) provide to the recipient of a Phase 

8 II SBIR or STTR award, through a vendor 

9 selected under paragraph (2), the services 

10 described in paragraph (1), in an amount 

11 equal to not more than $5,000 per year; or 

12 ‘‘(ii) authorize the recipient of a Phase 

13 II SBIR or STTR award to purchase the 

14 services described in paragraph (1), in an 

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

16 year, which shall be in addition to the 

17 amount of the recipient’s award.’’; and 

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

19 ‘‘(C) FLEXIBILITY.—In carrying out sub20 paragraphs (A) and (B), each Federal agency 

21 shall provide the allowable amounts to a recipi22 ent that meets the eligibility requirements under 

23 the applicable subparagraph, if the recipient re24 quests to seek technical assistance from an indimstockstill on DSK4VPTVN1PROD with BILLS

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1 vidual or entity other than the vendor selected 

2 under paragraph (2) by the Federal agency. 

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

4 not— 

5 ‘‘(i) use the amounts authorized under 

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

7 selected under paragraph (2) provides the 

8 technical assistance to the recipient; or 

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

10 under paragraph (2) under which the 

11 amount provided for technical assistance is 

12 based on total number of Phase I or Phase 

13 II awards.’’. 

14 SEC. 202. COMMERCIALIZATION READINESS PROGRAM AT 

15 DEPARTMENT OF DEFENSE. 

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

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

18 (1) in the subsection heading, by striking 

19 ‘‘PILOT’’ and inserting ‘‘READINESS’’; 

20 (2) by striking ‘‘Pilot’’ each place that term ap21 pears and inserting ‘‘Readiness’’; 

22 (3) in paragraph (1)— 

23 (A) by inserting ‘‘or Small Business Tech24 nology Transfer Program’’ after ‘‘Small Business 

25 Innovation Research Program’’; and 

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

2 ‘‘The authority to create and administer a Com3 mercialization Readiness Program under this 

4 subsection may not be construed to eliminate or 

5 replace any other SBIR program or STTR pro6 gram that enhances the insertion or transition of 

7 SBIR or STTR technologies, including any such 

8 program in effect on the date of enactment of the 

9 National Defense Authorization Act for Fiscal 

10 Year 2006 (Public Law 109–163; 119 Stat. 

11 3136).’’; 

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

13 Business Technology Transfer Program’’ after ‘‘Small 

14 Business Innovation Research Program’’; 

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

16 (6) by inserting after paragraph (4) the fol17 lowing: 

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

19 with a value of not less than $100,000,000, the Sec20 retary of Defense is authorized to— 

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

22 Phase III technologies in subcontracting plans; 

23 and 

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

25 contract to report the number and dollar amount 

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1 of contracts entered into by that prime con2 tractor for Phase III SBIR or STTR projects. 

3 ‘‘(6) GOAL FOR SBIR AND STTR TECHNOLOGY IN4 SERTION.—The Secretary of Defense shall— 

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

6 Phase II SBIR contracts and the number of 

7 Phase II STTR contracts awarded by that Sec8 retary that lead to technology transition into 

9 programs of record or fielded systems; 

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

11 enactment of the Creating Jobs Through Small 

12 Business Innovation Act of 2011, or create new 

13 incentives, to encourage agency program man14 agers and prime contractors to meet the goal 

15 under subparagraph (A); and 

16 ‘‘(C) include in the annual report to Con17 gress the percentage of contracts described in sub18 paragraph (A) awarded by that Secretary, and 

19 information on the ongoing status of projects 

20 funded through the Commercialization Readiness 

21 Program and efforts to transition these tech22 nologies into programs of record or fielded sys23 tems.’’. 

24 (b) TECHNICAL AND CONFORMING AMENDMENT.—Sec25 tion 9(i)(1) of the Small Business Act (15 U.S.C. 638(i)(1)) 

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1 is amended by inserting ‘‘(including awards under sub2 section (y))’’ after ‘‘the number of awards’’. 

3 SEC. 203. COMMERCIALIZATION READINESS PILOT PRO4 GRAM FOR CIVILIAN AGENCIES. 

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

6 as amended by this Act, is further amended by adding at 

7 the end the following: 

8 ‘‘(hh) PILOT PROGRAM.— 

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

10 Federal agency may allocate not more than 10 per11 cent of the funds allocated to the SBIR program and 

12 the STTR program of the covered Federal agency— 

13 ‘‘(A) for awards for technology development, 

14 testing, evaluation, and commercialization as15 sistance for SBIR and STTR Phase II tech16 nologies; or 

17 ‘‘(B) to support the progress of research, re18 search and development, and commercialization 

19 conducted under the SBIR or STTR programs to 

20 Phase III. 

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

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

23 agency may not establish a pilot program unless 

24 the covered Federal agency makes a written ap25 plication to the Administrator, not later than 90 

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1 days before the first day of the fiscal year in 

2 which the pilot program is to be established, that 

3 describes a compelling reason that additional in4 vestment in SBIR or STTR technologies is nec5 essary, including unusually high regulatory, sys6 tems integration, or other costs relating to devel7 opment or manufacturing of identifiable, highly 

8 promising small business technologies or a class 

9 of such technologies expected to substantially ad10 vance the mission of the agency. 

11 ‘‘(B) DETERMINATION.—The Administrator 

12 shall— 

13 ‘‘(i) make a determination regarding 

14 an application submitted under subpara15 graph (A) not later than 30 days before the 

16 first day of the fiscal year for which the ap17 plication is submitted; 

18 ‘‘(ii) publish the determination in the 

19 Federal Register; and 

20 ‘‘(iii) make a copy of the determina21 tion and any related materials available to 

22 the Committee on Small Business and En23 trepreneurship of the Senate and the Com24 mittee on Small Business and the Commstockstill on DSK4VPTVN1PROD with BILLS

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1 mittee on Science, Space, and Technology of 

2 the House of Representatives. 

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

4 a covered Federal agency may not make an award 

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

6 amounts generally established for Phase II awards 

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

8 ‘‘(4) REGISTRATION.—Any applicant that re9 ceives an award under a pilot program shall register 

10 with the Administrator in a registry that is available 

11 to the public. 

12 ‘‘(5) AWARD CRITERIA OR CONSIDERATION.— 

13 When making an award under this section, the head 

14 of a covered Federal agency shall give consideration 

15 to whether the technology to be supported by the 

16 award is likely to be manufactured in the United 

17 States. 

18 ‘‘(6) REPORT.—The head of each covered Federal 

19 agency shall include in the annual report of the cov20 ered Federal agency to the Administrator an analysis 

21 of the various activities considered for inclusion in 

22 the pilot program of the covered Federal agency and 

23 a statement of the reasons why each activity consid24 ered was included or not included, as the case may 

25 be. 

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

2 a pilot program under this section expires at the end 

3 of fiscal year 2014. 

4 ‘‘(8) DEFINITIONS.—In this subsection— 

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

6 ‘‘(i) means a Federal agency partici7 pating in the SBIR program or the STTR 

8 program; and 

9 ‘‘(ii) does not include the Department 

10 of Defense; and 

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

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

13 SEC. 204. INTERAGENCY POLICY COMMITTEE. 

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

15 Science and Technology Policy shall establish an Inter16 agency SBIR/STTR Policy Committee. 

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

18 Committee shall review the following issues and make policy 

19 recommendations on ways to improve program effectiveness 

20 and efficiency: 

21 (1) The public and government databases de22 scribed in section 9(k) of the Small Business Act (15 

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

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1 (2) Federal agency flexibility in establishing 

2 Phase I and II award sizes, including appropriate 

3 criteria for exercising such flexibility. 

4 (3) Commercialization assistance best practices 

5 of Federal agencies with significant potential to be 

6 employed by other agencies, and the appropriate steps 

7 to achieve that leverage, as well as proposals for new 

8 initiatives to address funding gaps that business con9 cerns face after Phase II but before commercialization. 

10 (4) Developing and incorporating a standard 

11 evaluation framework to enable systematic assessment 

12 of SBIR and STTR, including through improved 

13 tracking of awards and outcomes and development of 

14 performance measures for the SBIR program and 

15 STTR program of each Federal agency. 

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

17 Committee shall transmit to the Committee on Science, 

18 Space, and Technology and the Committee on Small Busi19 ness of the House of Representatives and to the Committee 

20 on Small Business and Entrepreneurship of the Senate— 

21 (1) a report on its review and recommendations 

22 under subsection (b)(1) not later than 1 year after the 

23 date of enactment of this Act; 

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1 (2) a report on its review and recommendations 

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

3 the date of enactment of this Act; 

4 (3) a report on its review and recommendations 

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

6 the date of enactment of this Act; and 

7 (4) a report on its review and recommendations 

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

9 the date of enactment of this Act. 

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

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

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

13 is further amended— 

14 (1) in paragraph (4)(C), in the matter preceding 

15 clause (i), by inserting ‘‘for work that derives from, 

16 extends, or completes efforts made under prior fund17 ing agreements under the SBIR program’’ after 

18 ‘‘phase’’; 

19 (2) in paragraph (6)(C), in the matter preceding 

20 clause (i), by inserting ‘‘for work that derives from, 

21 extends, or completes efforts made under prior fund22 ing agreements under the STTR program’’ after 

23 ‘‘phase’’; 

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

25 end; 

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

2 the end and inserting a semicolon; and 

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

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

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

6 processes, technologies, or services; and 

7 ‘‘(B) the production and delivery of prod8 ucts, processes, technologies, or services for sale 

9 (whether by the originating party or by others) 

10 to or use by the Federal Government or commer11 cial markets;’’. 

12 (b) TECHNICAL AND CONFORMING AMENDMENTS.— 

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

14 amended by this Act, is further amended— 

15 (1) in subsection (e)— 

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

17 ‘‘scientific review criteria’’ and inserting ‘‘merit18 based selection procedures’’; 

19 (B) in paragraph (9), by striking ‘‘the sec20 ond or the third phase’’ and inserting ‘‘Phase II 

21 or Phase III’’; and 

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

23 ‘‘(11) the term ‘Phase I’ means— 

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

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

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

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

3 ‘‘(12) the term ‘Phase II’ means— 

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

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

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

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

8 ‘‘(13) the term ‘Phase III’ means— 

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

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

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

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

13 (2) in subsection (j)— 

14 (A) in paragraph (1)(B), by striking ‘‘phase 

15 two’’ and inserting ‘‘Phase II’’; 

16 (B) in paragraph (2)— 

17 (i) in subparagraph (B)— 

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

19 each place it appears and inserting 

20 ‘‘Phase III’’; and 

21 (II) by striking ‘‘the second 

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

23 (ii) in subparagraph (D)— 

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

25 and inserting ‘‘Phase I’’; and 

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1 (II) by striking ‘‘the second 

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

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

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

5 III’’; 

6 (iv) in subparagraph (G)— 

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

8 and inserting ‘‘Phase I’’; and 

9 (II) by striking ‘‘the second 

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

11 (v) in subparagraph (H)— 

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

13 and inserting ‘‘Phase I’’; 

14 (II) by striking ‘‘second phase’’ 

15 each place it appears and inserting 

16 ‘‘Phase II’’; and 

17 (III) by striking ‘‘third phase’’ 

18 and inserting ‘‘Phase III’’; and 

19 (C) in paragraph (3)— 

20 (i) in subparagraph (A)— 

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

22 described in subsection (e)(4)(A))’’ and 

23 inserting ‘‘Phase I’’; 

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1 (II) by striking ‘‘the second phase 

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

3 and inserting ‘‘Phase II’’; and 

4 (III) by striking ‘‘the third phase 

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

6 and inserting ‘‘Phase III’’; and 

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

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

9 (3) in subsection (k)— 

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

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

12 (B) by striking ‘‘second phase’’ each place it 

13 appears and inserting ‘‘Phase II’’; 

14 (4) in subsection (l)(2)— 

15 (A) by striking ‘‘the first phase’’ and insert16 ing ‘‘Phase I’’; and 

17 (B) by striking ‘‘the second phase’’ and in18 serting ‘‘Phase II’’; 

19 (5) in subsection (o)(13)— 

20 (A) in subparagraph (B), by striking ‘‘sec21 ond phase’’ and inserting ‘‘Phase II’’; and 

22 (B) in subparagraph (C), by striking ‘‘third 

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

24 (6) in subsection (p)— 

25 (A) in paragraph (2)(B)— 

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1 (i) in clause (vi)— 

2 (I) by striking ‘‘the second phase’’ 

3 and inserting ‘‘Phase II’’; and 

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

5 and inserting ‘‘Phase III’’; and 

6 (ii) in clause (ix)— 

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

8 and inserting ‘‘Phase I’’; and 

9 (II) by striking ‘‘the second 

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

11 (B) in paragraph (3)— 

12 (i) by striking ‘‘the first phase (as de13 scribed in subsection (e)(6)(A))’’ and insert14 ing ‘‘Phase I’’; 

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

16 described in subsection (e)(6)(B))’’ and in17 serting ‘‘Phase II’’; and 

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

19 described in subsection (e)(6)(C))’’ and in20 serting ‘‘Phase III’’; 

21 (7) in subsection (q)(3)(A)— 

22 (A) in the subparagraph heading, by strik23 ing ‘‘FIRST PHASE’’ and inserting ‘‘PHASE I’’; 

24 and 

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

2 ‘‘Phase I’’; 

3 (8) in subsection (r)— 

4 (A) in the subsection heading, by striking 

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

6 (B) in paragraph (1)— 

7 (i) in the first sentence— 

8 (I) by striking ‘‘for the second 

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

10 (II) by striking ‘‘third phase’’ and 

11 inserting ‘‘Phase III’’; and 

12 (III) by striking ‘‘second phase 

13 period’’ and inserting ‘‘Phase II pe14 riod’’; and 

15 (ii) in the second sentence— 

16 (I) by striking ‘‘second phase’’ 

17 and inserting ‘‘Phase II’’; and 

18 (II) by striking ‘‘third phase’’ and 

19 inserting ‘‘Phase III’’; and 

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

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

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

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

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1 SEC. 206. SHORTENED PERIOD FOR FINAL DECISIONS ON 

2 PROPOSALS AND APPLICATIONS. 

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

4 (15 U.S.C. 638), as amended by this Act, is further amend5 ed— 

6 (1) in subsection (g)(4)— 

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

8 (B) by adding ‘‘and’’ after the semicolon at 

9 the end; and 

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

11 ‘‘(B) make a final decision on each proposal sub12 mitted under the SBIR program— 

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

14 which the solicitation closes; or 

15 ‘‘(ii) if the Administrator authorizes an ex16 tension for a solicitation, not later than 180 

17 days after the date on which the solicitation 

18 closes;’’; and 

19 (2) in subsection (o)(4)— 

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

21 (B) by adding ‘‘and’’ after the semicolon at 

22 the end; and 

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

24 ‘‘(B) make a final decision on each proposal sub25 mitted under the STTR program— 

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

2 which the solicitation closes; or 

3 ‘‘(ii) if the Administrator authorizes an ex4 tension for a solicitation, not later than 180 

5 days after the date on which the solicitation 

6 closes;’’. 

7 (b) NIH PEER REVIEW PROCESS.—Section 9 of the 

8 Small Business Act (15 U.S.C. 638), as amended by this 

9 Act, is further amended by adding at the end the following: 

10 ‘‘(ii) NIH PEER REVIEW PROCESS.—Notwithstanding 

11 subsections (g)(4)(B) and (o)(4)(B), the Director of the Na12 tional Institutes of Health may make an award under the 

13 SBIR program or the STTR program of the National Insti14 tutes of Health only if the application for the award has 

15 undergone technical and scientific peer review under section 

16 492 of the Public Health Service Act (42 U.S.C. 289a). 

17 ‘‘(jj) NSF PEER REVIEW PROCESS.—Notwithstanding 

18 subsections (g)(4)(B) and (o)(4)(B), the Director of the Na19 tional Science Foundation may make an award under the 

20 SBIR program or the STTR program of the National 

21 Science Foundation only if the application for the award 

22 has undergone the National Science Foundation’s technical 

23 and scientific peer review process and met all other applica24 ble peer review procedures and guidelines pursuant to the 

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1 National Science Foundation Act of 1950 (42 U.S.C. 1861, 

2 et seq.) and other applicable Federal law.’’. 

3 SEC. 207. PHASE 0 PROOF OF CONCEPT PARTNERSHIP 

4 PILOT PROGRAM. 

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

6 as amended by this Act, is further amended by adding at 

7 the end the following: 

8 ‘‘(kk) PHASE 0 PROOF OF CONCEPT PARTNERSHIP

9 PILOT PROGRAM.— 

10 ‘‘(1) IN GENERAL.—The Director of the National 

11 Institutes of Health shall use $10,000,000 of the funds 

12 allocated under subsection (n)(1) for a Proof of Con13 cept Partnership pilot program to accelerate the cre14 ation of small businesses and the commercialization of 

15 research innovations from qualifying institutions. To 

16 implement this program, the Director shall award, 

17 through a competitive, merit-based process, grants to 

18 qualifying institutions. These grants shall only be 

19 used to administer Proof of Concept Partnership 

20 awards in conformity with this subsection. 

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

22 ‘‘(A) the term ‘Director’ means the Director 

23 of the National Institutes of Health; 

24 ‘‘(B) the term ‘pilot program’ refers to the 

25 Proof of Concept Partnership pilot program; and 

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1 ‘‘(C) the terms ‘qualifying institution’ and 

2 ‘institution’ mean a university or other research 

3 institution that participates in the National In4 stitutes of Health’s STTR program. 

5 ‘‘(3) PROOF OF CONCEPT PARTNERSHIPS.— 

6 ‘‘(A) IN GENERAL.—A Proof of Concept 

7 Partnership shall be set up by a qualifying insti8 tution to award grants to individual researchers. 

9 These grants should provide researchers with the 

10 initial investment and the resources to support 

11 the proof of concept work and commercialization 

12 mentoring needed to translate promising re13 search projects and technologies into a viable 

14 company. This work may include technical vali15 dations, market research, clarifying intellectual 

16 property rights position and strategy and inves17 tigating commercial or business opportunities. 

18 ‘‘(B) AWARD GUIDELINES.—The adminis19 trator of a Proof of Concept Partnership pro20 gram shall award grants in accordance with the 

21 following guidelines: 

22 ‘‘(i) The Proof of Concept Partnership 

23 shall use a market-focused project manage24 ment oversight process, including— 

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1 ‘‘(I) a rigorous, diverse review 

2 board comprised of local experts in 

3 translational and proof of concept re4 search, including industry, start-up, 

5 venture capital, technical, financial, 

6 and business experts and university 

7 technology transfer officials; 

8 ‘‘(II) technology validation mile9 stones focused on market feasibility; 

10 ‘‘(III) simple reporting effective at 

11 redirecting projects; and 

12 ‘‘(IV) the willingness to reallocate 

13 funding from failing projects to those 

14 with more potential. 

15 ‘‘(ii) Not more than $100,000 shall be 

16 awarded towards an individual proposal. 

17 ‘‘(C) EDUCATIONAL RESOURCES AND GUID18 ANCE.—The administrator of a Proof of Concept 

19 Partnership program shall make educational re20 sources and guidance available to researchers at21 tempting to commercialize their innovations. 

22 ‘‘(4) AWARDS.— 

23 ‘‘(A) SIZE OF AWARD.—The Director may 

24 make awards to a qualifying institution for up 

25 to $1,000,000 per year for up to 3 years. 

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1 ‘‘(B) AWARD CRITERIA.—In determining 

2 which qualifying institutions receive pilot pro3 gram grants, the Director shall consider, in ad4 dition to any other criteria the Director deter5 mines necessary, the extent to which qualifying 

6 institutions— 

7 ‘‘(i) have an established and proven 

8 technology transfer or commercialization of9 fice and have a plan for engaging that office 

10 in the program implementation; 

11 ‘‘(ii) have demonstrated a commitment 

12 to local and regional economic development; 

13 ‘‘(iii) are located in diverse geog14 raphies and are of diverse sizes; 

15 ‘‘(iv) can assemble project management 

16 boards comprised of industry, start-up, ven17 ture capital, technical, financial, and busi18 ness experts; 

19 ‘‘(v) have an intellectual property 

20 rights strategy or office; and 

21 ‘‘(vi) demonstrate a plan for sustain22 ability beyond the duration of the funding 

23 award. 

24 ‘‘(5) LIMITATIONS.—The funds for the pilot pro25 gram shall not be used— 

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1 ‘‘(A) for basic research, but to evaluate the 

2 commercial potential of existing discoveries, in3 cluding— 

4 ‘‘(i) proof of concept research or proto5 type development; and 

6 ‘‘(ii) activities that contribute to deter7 mining a project’s commercialization path, 

8 to include technical validations, market re9 search, clarifying intellectual property 

10 rights, and investigating commercial and 

11 business opportunities; or 

12 ‘‘(B) to fund the acquisition of research 

13 equipment or supplies unrelated to commer14 cialization activities. 

15 ‘‘(6) EVALUATIVE REPORT.—The Director shall 

16 submit to the Committee on Science, Space, and Tech17 nology and the Committee on Small Business of the 

18 House of Representatives and the Committee on 

19 Small Business and Entrepreneurship of the Senate 

20 an evaluative report regarding the activities of the 

21 pilot program. The report shall include— 

22 ‘‘(A) a detailed description of the institu23 tional and proposal selection process; 

24 ‘‘(B) an accounting of the funds used in the 

25 pilot program; 

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1 ‘‘(C) a detailed description of the pilot pro2 gram, including incentives and activities under3 taken by review board experts; 

4 ‘‘(D) a detailed compilation of results 

5 achieved by the pilot program, including the 

6 number of small business concerns included and 

7 the number of business packages developed, and 

8 the number of projects that progressed into subse9 quent STTR phases; and 

10 ‘‘(E) an analysis of the program’s effective11 ness with supporting data. 

12 ‘‘(7) SUNSET.—The pilot program under this 

13 subsection shall terminate at the end of fiscal year 

14 2014.’’. 

15 TITLE III—OVERSIGHT AND 

16 EVALUATION 

17 SEC. 301. STREAMLINING ANNUAL EVALUATION REQUIRE18 MENTS. 

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

20 638(b)) is amended— 

21 (1) in paragraph (7)— 

22 (A) by striking ‘‘STTR programs, including 

23 the data’’ and inserting the following: ‘‘STTR 

24 programs, including— 

25 ‘‘(A) the data’’; 

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1 (B) by striking ‘‘(g)(10), (o)(9), and (o)(15), 

2 the number’’ and all that follows through ‘‘under 

3 each of the SBIR and STTR programs, and a 

4 description’’ and inserting the following: ‘‘(g)(8) 

5 and (o)(9); 

6 ‘‘(B) the number of proposals received from, 

7 and the number and total amount of awards to, 

8 HUBZone small business concerns and firms 

9 with venture capital, hedge fund, or private eq10 uity firm investment (including those majority11 owned by multiple venture capital operating 

12 companies, hedge funds, or private equity firms) 

13 under each of the SBIR and STTR programs; 

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

15 each Federal agency is increasing outreach and 

16 awards to firms owned and controlled by women 

17 and social or economically disadvantaged indi18 viduals under each of the SBIR and STTR pro19 grams; 

20 ‘‘(D) general information about the imple21 mentation of, and compliance with the allocation 

22 of funds required under, subsection (dd) for firms 

23 owned in majority part by venture capital oper24 ating companies, hedge funds, or private equity 

25 firms and participating in the 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 SBIR 

5 program, including information necessary to main6 tain the database described in subsection (k), includ7 ing— 

8 ‘‘(A) whether an awardee— 

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

10 private equity firm investment or is major11 ity-owned by multiple venture capital oper12 ating companies, hedge funds, or private eq13 uity 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; and 

18 ‘‘(II) the amount of additional 

19 capital that the awardee has invested 

20 in the SBIR technology; 

21 ‘‘(ii) has an investor that— 

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

23 citizen of the United States or a lawful 

24 permanent resident of the United 

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1 States, and if so, the name of any such 

2 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, or 

14 private equity firm investment or is major15 ity-owned by multiple venture capital oper16 ating companies, hedge funds, or private eq17 uity 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 lawful 

4 permanent resident of the United 

5 States, and if so, the name of any such 

6 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 

25 business concerns under all STTR programs 

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1 is less than the total value of contracts 

2 awarded to small business concerns in a 

3 majority of other States, as determined by 

4 the Administrator in biennial fiscal years, 

5 beginning with fiscal year 2008, based on 

6 the most recent statistics compiled by the 

7 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 the 

23 small business concern— 

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

25 private equity firm investment and, if so, 

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1 whether the small business concern is reg2 istered as majority-owned by multiple ven3 ture 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 and titles of the key in21 dividuals that will carry out the project, the 

22 position each key individual holds in the 

23 small business concern, and contact infor24 mation for each key individual; 

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1 ‘‘(vi) the percentage of effort each indi2 vidual described in clause (iv) will con3 tribute to the project; 

4 ‘‘(vii) whether the small business con5 cern is majority-owned by multiple venture 

6 capital operating companies, hedge funds, 

7 or private equity firms; and 

8 ‘‘(viii) the Federal agency to which the 

9 application is made, and contact informa10 tion for the person or office within the Fed11 eral agency that is responsible for reviewing 

12 applications and making awards under the 

13 SBIR program or the STTR program;’’; 

14 (E) by redesignating subparagraphs (D) 

15 and (E) as subparagraphs (E) and (F), respec16 tively; 

17 (F) by inserting after subparagraph (C), as 

18 so redesignated, the following: 

19 ‘‘(D) includes, for each awardee— 

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

21 identifying number assigned to the awardee 

22 by the Administrator; 

23 ‘‘(ii) whether the awardee has venture 

24 capital, hedge fund, or private equity firm 

25 investment, and, if so— 

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1 ‘‘(I) the amount of venture cap2 ital, hedge fund, or private equity firm 

3 investment as of the date of the award; 

4 ‘‘(II) the percentage of ownership 

5 of the awardee held by a venture cap6 ital operating company, hedge fund, or 

7 private equity firm, including whether 

8 the awardee is majority-owned by mul9 tiple venture capital operating compa10 nies, hedge funds, or private equity 

11 firms; and 

12 ‘‘(III) the amount of additional 

13 capital that the awardee has invested 

14 in the SBIR technology, which infor15 mation shall be collected on an annual 

16 basis; 

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

18 affiliates of the awardee; 

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

20 awardee; 

21 ‘‘(v) the number of employees of the af22 filiates of the awardee; and 

23 ‘‘(vi) the names of, and the percentage 

24 of ownership of the awardee held by— 

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1 ‘‘(I) any individual who is not a 

2 citizen of the United States or a lawful 

3 permanent resident of the United 

4 States; or 

5 ‘‘(II) any person that is not an 

6 individual and is not organized under 

7 the laws of a State or the United 

8 States;’’; 

9 (G) in subparagraph (E), as so redesig10 nated, by striking ‘‘and’’ at the end; 

11 (H) in subparagraph (F), as so redesig12 nated, by striking the period at the end and in13 serting ‘‘; and’’; and 

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

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

16 any individual or small business concern that 

17 has participated in the SBIR program or STTR 

18 program that has been— 

19 ‘‘(i) convicted of a fraud-related crime 

20 involving funding received under the SBIR 

21 program or STTR program; or 

22 ‘‘(ii) found civilly liable for a fraud-re23 lated violation involving funding received 

24 under the SBIR program or STTR pro25 gram.’’; and 

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

2 following: 

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

4 than 60 days after the date established by a Fed5 eral agency for submitting applications or pro6 posals for a Phase I or Phase II award under the 

7 SBIR program or STTR program, the head of 

8 the Federal agency shall submit to the Adminis9 trator the data required under paragraph (2) 

10 with respect to each small business concern that 

11 applies or submits a proposal for the Phase I or 

12 Phase II award.’’. 

13 SEC. 306. ACCURACY IN FUNDING BASE CALCULATIONS. 

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

15 of enactment of this Act, and every year thereafter until 

16 the date that is 5 years after the date of enactment of this 

17 Act, the Comptroller General of the United States shall— 

18 (1) conduct a fiscal and management audit of 

19 the SBIR program and the STTR program for the 

20 applicable period to— 

21 (A) determine whether Federal agencies 

22 comply with the expenditure amount require23 ments under subsections (f)(1) and (n)(1) of sec24 tion 9 of the Small Business Act (15 U.S.C. 

25 638), as amended by this Act; 

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1 (B) assess the extent of compliance with the 

2 requirements of section 9(i)(2) of the Small Busi3 ness Act (15 U.S.C. 638(i)(2)) by Federal agen4 cies participating in the SBIR program or the 

5 STTR program and the Administration; and 

6 (C) determine the portion of the extramural 

7 research or research and development budget of a 

8 Federal agency that each Federal agency spends 

9 for administrative purposes relating to the SBIR 

10 program or STTR program, and for what spe11 cific purposes, including the portion, if any, of 

12 such budget the Federal agency spends for sala13 ries and expenses, travel to visit applicants, out14 reach events, marketing, and technical assist15 ance; and 

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

17 Business and Entrepreneurship of the Senate and the 

18 Committee on Small Business and the Committee on 

19 Science, Space, and Technology of the House of Rep20 resentatives regarding the audit conducted under 

21 paragraph (1), including the assessments required 

22 under subparagraph (B), and the determination made 

23 under subparagraph (C) of paragraph (1). 

24 (b) DEFINITION OF APPLICABLE PERIOD.—In this sec25 tion, the term ‘‘applicable period’’ means— 

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1 (1) for the first report submitted under this sec2 tion, the period beginning on October 1, 2005, and 

3 ending on September 30 of the last full fiscal year be4 fore the date of enactment of this Act for which infor5 mation is available; and 

6 (2) for the second and each subsequent report 

7 submitted under this section, the period— 

8 (A) beginning on October 1 of the first fiscal 

9 year after the end of the most recent full fiscal 

10 year relating to which a report under this sec11 tion was submitted; and 

12 (B) ending on September 30 of the last full 

13 fiscal year before the date of the report. 

14 SEC. 307. CONTINUED EVALUATION BY THE NATIONAL 

15 ACADEMY OF SCIENCES. 

16 Section 108 of the Small Business Reauthorization Act 

17 of 2000 (15 U.S.C. 638 note) is amended by adding at the 

18 end the following: 

19 ‘‘(e) EXTENSIONS AND ENHANCEMENTS OF AUTHOR20 ITY.— 

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

22 after the date of enactment of the Creating Jobs 

23 Through Small Business Innovation Act of 2011, the 

24 head of each agency described in subsection (a), in 

25 consultation with the Small Business Administration, 

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1 shall cooperatively enter into an agreement with the 

2 National Academy of Sciences for the National Re3 search Council to, not later than 4 years after the 

4 date of enactment of the Creating Jobs Through Small 

5 Business Innovation Act of 2011, and every 4 years 

6 thereafter— 

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

8 this section relating to the issues described in 

9 subparagraphs (A), (B), (C), and (E) of sub10 section (a)(1); 

11 ‘‘(B) conduct a comprehensive study of how 

12 the STTR program has stimulated technological 

13 innovation and technology transfer, including— 

14 ‘‘(i) a review of the collaborations cre15 ated between small businesses and research 

16 institutions, including an evaluation of the 

17 effectiveness of the program in stimulating 

18 new collaborations and any obstacles that 

19 may prevent or inhibit the creation of such 

20 collaborations; 

21 ‘‘(ii) an evaluation of the effectiveness 

22 of the program at transferring technology 

23 and capabilities developed through Federal 

24 funding; 

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1 ‘‘(iii) an evaluation of the program’s 

2 success at commercializing technologies com3 pared with other Federal technology trans4 fer programs and the SBIR program; 

5 ‘‘(iv) to the extent practicable, an eval6 uation of the economic benefits achieved by 

7 the STTR program, including the economic 

8 rate of return; 

9 ‘‘(v) an analysis of how Federal agen10 cies are using small businesses that have 

11 completed Phase II under the STTR pro12 gram to fulfill their procurement needs; and 

13 ‘‘(vi) an analysis of whether the exist14 ing STTR allocation has impacted the effec15 tiveness of the program in achieving its 

16 goals; 

17 ‘‘(C) make recommendations with respect to 

18 the issues described in subparagraph (A), (D), 

19 and (E) of subsection (a)(2) and subparagraph 

20 (B) of this paragraph; and 

21 ‘‘(D) estimate, to the extent practicable, the 

22 number of jobs created by the SBIR program or 

23 STTR program of the agency. 

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

25 paragraph (1) shall require the National Research 

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1 Council to ensure that there is participation by and 

2 consultation with the small business community, the 

3 Administration, and other interested parties as de4 scribed in subsection (b). 

5 ‘‘(3) REPORTING.—An agreement under para6 graph (1) shall require that— 

7 ‘‘(A) not later than 4 years after the date 

8 of enactment of the Creating Jobs Through Small 

9 Business Innovation Act of 2011, and every 4 

10 years thereafter, the National Research Council 

11 shall submit to the head of the agency entering 

12 into the agreement, the Committee on Small 

13 Business and Entrepreneurship of the Senate, 

14 and the Committee on Small Business and the 

15 Committee on Science, Space, and Technology of 

16 the House of Representatives, a report regarding 

17 the study conducted under paragraph (1) and 

18 containing the recommendations described in 

19 paragraph (1); and 

20 ‘‘(B) not later than 2 years after the date 

21 of enactment of the Creating Jobs Through Small 

22 Business Innovation Act of 2011, the National 

23 Research Council shall submit to the head of the 

24 agency entering into the agreement, the Com25 mittee on Small Business and Entrepreneurship 

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1 of the Senate, and the Committee on Small Busi2 ness and the Committee on Science, Space, and 

3 Technology of the House of Representatives, a re4 port of preliminary findings and recommenda5 tions regarding the study conducted under para6 graph (1)(B).’’. 

7 SEC. 308. TECHNOLOGY INSERTION REPORTING REQUIRE8 MENTS. 

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

10 as amended by this Act, is further amended by adding at 

11 the end the following: 

12 ‘‘(ll) PHASE III REPORTING.—The annual SBIR or 

13 STTR report to Congress by the Administration under sub14 section (b)(7) shall include, for each Phase III award made 

15 by the Federal agency— 

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

17 agency or the non-Federal source of capital making 

18 the Phase III award; 

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

20 individual receiving the Phase III award; and 

21 ‘‘(3) the dollar amount of the Phase III award.’’. 

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1 SEC. 309. OBTAINING CONSENT FROM SBIR AND STTR AP2 PLICANTS TO RELEASE CONTACT INFORMA3 TION TO ECONOMIC DEVELOPMENT ORGANI4 ZATIONS. 

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

6 as amended by this Act, is further amended by adding at 

7 the end the following: 

8 ‘‘(mm) CONSENT TO RELEASE CONTACT INFORMATION

9 TO ORGANIZATIONS.— 

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

11 Each Federal agency required by this section to con12 duct an SBIR program or an STTR program shall 

13 enable a small business concern that is an SBIR ap14 plicant or an STTR applicant to indicate to the Fed15 eral agency whether the Federal agency has the con16 sent of the concern to— 

17 ‘‘(A) identify the concern to appropriate 

18 local and State-level economic development orga19 nizations as an SBIR applicant or an STTR 

20 applicant; and 

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

22 concern to such organizations. 

23 ‘‘(2) RULES.—The Administrator shall establish 

24 rules to implement this subsection. The rules shall in25 clude a requirement that a Federal agency include in 

26 the SBIR and STTR application a provision through 

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1 which the applicant can indicate consent for purposes 

2 of paragraph (1).’’. 

3 SEC. 310. PILOT TO ALLOW FUNDING FOR ADMINISTRATIVE, 

4 OVERSIGHT, AND CONTRACT PROCESSING 

5 COSTS. 

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

7 (15 U.S.C. 638), as amended by this Act, is further amend8 ed by adding at the end the following: 

9 ‘‘(nn) ASSISTANCE FOR ADMINISTRATIVE, OVERSIGHT, 

10 AND CONTRACT PROCESSING COSTS.— 

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

12 the 3 full fiscal years beginning after the date of en13 actment of this subsection, the Administrator shall 

14 allow each Federal agency required to conduct an 

15 SBIR program to use not more than 3 percent of the 

16 funds allocated to the SBIR program of the Federal 

17 agency for— 

18 ‘‘(A) the administration of the SBIR pro19 gram or the STTR program of the Federal agen20 cy; 

21 ‘‘(B) the provision of outreach and technical 

22 assistance relating to the SBIR program or 

23 STTR program of the Federal agency, including 

24 technical assistance site visits and personnel 

25 interviews; 

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1 ‘‘(C) the implementation of commercializa2 tion and outreach initiatives that were not in ef3 fect on the date of enactment of this subsection; 

4 ‘‘(D) carrying out the program under sub5 section (y); 

6 ‘‘(E) activities relating to oversight and 

7 congressional reporting, including waste, fraud, 

8 and abuse prevention activities; 

9 ‘‘(F) targeted reviews of recipients of 

10 awards under the SBIR program or STTR pro11 gram of the Federal agency that the head of the 

12 Federal agency determines are at high risk for 

13 fraud, waste, or abuse, to ensure compliance with 

14 requirements of the SBIR program or STTR 

15 program, respectively; 

16 ‘‘(G) the implementation of oversight and 

17 quality control measures, including verification 

18 of reports and invoices and cost reviews; 

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

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

21 ‘‘(J) contract processing costs relating to the 

22 SBIR program or STTR program of the Federal 

23 agency; and 

24 ‘‘(K) funding for additional personnel and 

25 assistance with application reviews. 

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1 ‘‘(2) PERFORMANCE CRITERIA.—A Federal agen2 cy may not use funds as authorized under paragraph 

3 (1) until after the effective date of performance cri4 teria, which the Administrator shall establish, to 

5 measure any benefits of using funds as authorized 

6 under paragraph (1) and to assess continuation of the 

7 authority under paragraph (1). 

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

9 date of enactment of this subsection, the Adminis10 trator shall issue rules to carry out this subsection. 

11 ‘‘(4) COORDINATION WITH IG.—Each Federal 

12 agency shall coordinate the activities funded under 

13 subparagraph (E), (F), or (G) of paragraph (1) with 

14 their respective Inspectors General, when appropriate, 

15 and each Federal agency that allocates more than 

16 $50,000,000 to the SBIR program of the Federal 

17 agency for a fiscal year may share such funding with 

18 its Inspector General when the Inspector General per19 forms such activities.’’. 

20 (b) TECHNICAL AND CONFORMING AMENDMENTS.— 

21 (1) IN GENERAL.—Section 9 of the Small Busi22 ness Act (15 U.S.C. 638), as amended by this Act, is 

23 further amended— 

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

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1 able for the purpose’’ and inserting ‘‘shall not 

2 make available for the purpose’’; and 

3 (B) in subsection (y)— 

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

5 (ii) by redesignating paragraphs (5) 

6 and (6) as paragraphs (4) and (5), respec7 tively. 

8 (2) TRANSITIONAL RULE.—Notwithstanding the 

9 amendments made by paragraph (1), subsection (f)(2) 

10 and (y)(4) of section 9 of the Small Business Act (15 

11 U.S.C. 638), as in effect on the day before the date 

12 of enactment of this Act, shall continue to apply to 

13 each Federal agency until the effective date of the per14 formance criteria established by the Administrator 

15 under subsection (nn)(2) of section 9 of the Small 

16 Business Act, as added by subsection (a). 

17 (3) PROSPECTIVE REPEAL.—Effective on the first 

18 day of the fourth full fiscal year following the date of 

19 enactment of this Act, section 9 of the Small Business 

20 Act (15 U.S.C. 638), as amended by paragraph (1) of 

21 this section, is amended— 

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

23 not make available for the purpose’’ and insert24 ing the following: ‘‘shall not— 

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1 ‘‘(A) use any of its SBIR budget established 

2 pursuant to paragraph (1) for the purpose of 

3 funding administrative costs of the program, in4 cluding costs associated with salaries and ex5 penses; or 

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

7 (B) in subsection (y)— 

8 (i) by redesignating paragraphs (4) 

9 and (5) as paragraphs (5) and (6), respec10 tively; and 

11 (ii) by inserting after paragraph (3) 

12 the following: 

13 ‘‘(4) FUNDING.— 

14 ‘‘(A) IN GENERAL.—The Secretary of De15 fense and each Secretary of a military depart16 ment may use not more than an amount equal 

17 to 1 percent of the funds available to the Depart18 ment of Defense or the military department pur19 suant to the Small Business Innovation Research 

20 Program for payment of expenses incurred to ad21 minister the Commercialization Pilot Program 

22 under this subsection. 

23 ‘‘(B) LIMITATIONS.—The funds described in 

24 subparagraph (A)— 

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1 ‘‘(i) shall not be subject to the limita2 tions on the use of funds in subsection 

3 (f)(2); and 

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

5 III awards.’’. 

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

7 OPERATING COMPANY, HEDGE FUND, AND 

8 PRIVATE EQUITY FIRM INVOLVEMENT. 

9 Not later than 2 years after the date of enactment of 

10 this Act, and every 2 years thereafter, the Comptroller Gen11 eral of the United States shall— 

12 (1) conduct a study of the impact of require13 ments relating to venture capital operating company, 

14 hedge fund, and private equity firm involvement 

15 under section 9 of the Small Business Act; and 

16 (2) submit to Congress a report regarding the 

17 study conducted under paragraph (1). 

18 SEC. 312. REDUCING VULNERABILITY OF SBIR AND STTR 

19 PROGRAMS TO FRAUD, WASTE, AND ABUSE. 

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

21 (1) AMENDMENTS REQUIRED FOR FRAUD, 

22 WASTE, AND ABUSE PREVENTION.—Not later than 90 

23 days after the date of enactment of this Act, the Ad24 ministrator shall amend the SBIR Policy Directive 

25 and the STTR Policy Directive to include measures 

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1 to prevent fraud, waste, and abuse in the SBIR pro2 gram and the STTR program. 

3 (2) CONTENT OF AMENDMENTS.—The amend4 ments required under paragraph (1) shall include— 

5 (A) definitions or descriptions of fraud, 

6 waste, and abuse; 

7 (B) guidelines for the monitoring and over8 sight of applicants to and recipients of awards 

9 under the SBIR program or the STTR program; 

10 (C) a requirement that each Federal agency 

11 that participates in the SBIR program or STTR 

12 program include information concerning the 

13 method established by the Inspector General of 

14 the Federal agency to report fraud, waste, and 

15 abuse (including any telephone hotline or Web16 based platform)— 

17 (i) on the website of the Federal agen18 cy; and 

19 (ii) in any solicitation or notice of 

20 funding opportunity issued by the Federal 

21 agency for the SBIR program or the STTR 

22 program; and 

23 (D) a requirement that each applicant for 

24 and small business concern that receives funding 

25 under the SBIR program or the STTR program 

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1 shall certify whether the applicant or small busi2 ness concern is in compliance with the laws re3 lating to the SBIR program and the STTR pro4 gram and the conduct guidelines established 

5 under the SBIR Policy Directive and the STTR 

6 Policy Directive. 

7 (3) CONSULTATION.—The Administrator shall 

8 develop the certification required under paragraph 

9 (2)(D) in cooperation with the Council of Inspectors 

10 General on Integrity and Efficiency and the Office of 

11 Advocacy of the Administration. 

12 (4) INSPECTORS GENERAL.—The Inspector Gen13 eral of each Federal agency that participates in the 

14 SBIR program or STTR program shall cooperate to 

15 prevent fraud, waste, and abuse in the SBIR program 

16 and the STTR program by— 

17 (A) establishing fraud detection indicators; 

18 (B) reviewing regulations and operating 

19 procedures of the Federal agency; 

20 (C) coordinating information sharing be21 tween Federal agencies, to the extent otherwise 

22 permitted under Federal law; and 

23 (D) improving the education and training 

24 of, and outreach to— 

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1 (i) administrators of the SBIR pro2 gram and the STTR program of the Federal 

3 agency; 

4 (ii) applicants to the SBIR program 

5 or the STTR program; and 

6 (iii) recipients of awards under the 

7 SBIR program or the STTR program. 

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

9 the date of enactment of this Act to establish a baseline of 

10 changes made to the program to fight fraud, waste, and 

11 abuse, and every 3 years thereafter to evaluate the effective12 ness of the agency strategies, the Comptroller General of the 

13 United States shall— 

14 (1) conduct a study that evaluates— 

15 (A) the implementation by each Federal 

16 agency that participates in the SBIR program 

17 or the STTR program of the amendments to the 

18 SBIR Policy Directive and the STTR Policy Di19 rective made pursuant to subsection (a); 

20 (B) the effectiveness of the management in21 formation system of each Federal agency that 

22 participates in the SBIR program or STTR pro23 gram in identifying duplicative SBIR and 

24 STTR projects; 

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1 (C) the effectiveness of the risk management 

2 strategies of each Federal agency that partici3 pates in the SBIR program or STTR program 

4 in identifying areas of the SBIR program or the 

5 STTR program that are at high risk for fraud; 

6 (D) technological tools that may be used to 

7 detect patterns of behavior that may indicate 

8 fraud by applicants to the SBIR program or the 

9 STTR program; 

10 (E) the success of each Federal agency that 

11 participates in the SBIR program or STTR pro12 gram in reducing fraud, waste, and abuse in the 

13 SBIR program or the STTR program of the 

14 Federal agency; and 

15 (F) the extent to which the Inspector Gen16 eral of each Federal agency that participates in 

17 the SBIR and STTR program effectively con18 ducts investigations, audits, inspections, and 

19 outreach relating to the SBIR and STTR pro20 grams of the Federal agency; and 

21 (2) submit to the Committee on Small Business 

22 and Entrepreneurship of the Senate, the Committee 

23 on Small Business and the Committee on Science, 

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1 ticipates in the SBIR program or STTR program a 

2 report on the results of the study conducted under 

3 subparagraph (A). 

4 SEC. 313. SIMPLIFIED PAPERWORK REQUIREMENTS. 

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

6 638(v)) is amended— 

7 (1) in the subsection heading, by striking ‘‘SIM8 PLIFIED REPORTING REQUIREMENTS’’ and inserting 

9 ‘‘REDUCING PAPERWORK AND COMPLIANCE BUR10 DEN’’; 

11 (2) by striking ‘‘The Administrator’’ and insert12 ing the following: 

13 ‘‘(1) STANDARDIZATION OF REPORTING RE14 QUIREMENTS.—The Administrator’’; and 

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

16 ‘‘(2) SIMPLIFICATION OF APPLICATION AND

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

18 date of enactment of this paragraph, and after a pe19 riod of public comment, the Administrator shall issue 

20 regulations or guidelines, taking into consideration 

21 the unique needs of each Federal agency, to ensure 

22 that each Federal agency required to carry out an 

23 SBIR program or STTR program simplifies and 

24 standardizes the program proposal, selection, con25 tracting, compliance, and audit procedures for the 

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1 SBIR program or STTR program of the Federal 

2 agency (including procedures relating to overhead 

3 rates for applicants and documentation requirements) 

4 to reduce the paperwork and regulatory compliance 

5 burden on small business concerns applying to and 

6 participating in the SBIR program or STTR pro7 gram.’’. 

8 SEC. 314. REDUCING FRAUD, WASTE, AND ABUSE. 

9 Not later than 4 years after the date of enactment of 

10 this Act, and every 4 years thereafter, the Comptroller Gen11 eral of the United States shall— 

12 (1) conduct a study of the effectiveness of the gov13 ernment and public databases described in section 

14 9(k) of the Small Business Act (15 U.S.C. 638(k)) in 

15 reducing vulnerabilities of the SBIR program and the 

16 STTR program to fraud, waste, and abuse, particu17 larly with respect to Federal agencies funding dupli18 cative proposals and business concerns falsifying in19 formation in proposals; 

20 (2) make recommendations with respect to the 

21 issues described in paragraph (1); and 

22 (3) submit to the head of each agency described 

23 in section 108(a) of the Small Business Reauthoriza24 tion Act of 2000 (15 U.S.C. 638 note), the Committee 

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1 ate, and the Committee on Small Business and the 

2 Committee on Science, Space, and Technology of the 

3 House of Representatives a report regarding the study 

4 conducted under paragraph (1) and containing the 

5 recommendations described in paragraph (2). 

6 TITLE IV—POLICY DIRECTIVES 

7 SEC. 401. CONFORMING AMENDMENTS TO THE SBIR AND 

8 THE STTR POLICY DIRECTIVES. 

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

10 date of enactment of this Act, the Administrator shall pro11 mulgate amendments to the SBIR Policy Directive and the 

12 STTR Policy Directive to conform such directives to this 

13 Act and the amendments made by this Act. 

14 (b) PUBLISHING SBIR POLICY DIRECTIVE AND THE

15 STTR POLICY DIRECTIVE IN THE FEDERAL REGISTER.— 

16 Not later than 180 days after the date of enactment of this 

17 Act, the Administrator shall publish the amended SBIR 

18 Policy Directive and the amended STTR Policy Directive 

19 in the Federal Register. 

20 TITLE V—OTHER PROVISIONS 

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

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

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

24 the end the following: 

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1 ‘‘(oo) ANNUAL REPORT ON SBIR AND STTR PROGRAM

2 GOALS.— 

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

4 each Federal agency required to participate in the 

5 SBIR program or the STTR program shall develop 

6 metrics to evaluate the effectiveness, and the benefit to 

7 the people of the United States, of the SBIR program 

8 and the STTR program of the Federal agency that— 

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

10 driven; 

11 ‘‘(B) reflect the mission of the Federal agen12 cy; and 

13 ‘‘(C) include factors relating to the economic 

14 impact of the programs. 

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

16 agency described in paragraph (1) shall conduct an 

17 annual evaluation using the metrics developed under 

18 paragraph (1) of— 

19 ‘‘(A) the SBIR program and the STTR pro20 gram of the Federal agency; and 

21 ‘‘(B) the benefits to the people of the United 

22 States of the SBIR program and the STTR pro23 gram of the Federal agency. 

24 ‘‘(3) REPORT.— 

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1 ‘‘(A) IN GENERAL.—The head of each Fed2 eral agency described in paragraph (1) shall sub3 mit to the appropriate committees of Congress 

4 and the Administrator an annual report describ5 ing in detail the results of an evaluation con6 ducted under paragraph (2). 

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

8 The head of each Federal agency described in 

9 paragraph (1) shall make each report submitted 

10 under subparagraph (A) available to the public 

11 online. 

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

13 term ‘appropriate committees of Congress’ 

14 means— 

15 ‘‘(i) the Committee on Small Business 

16 and Entrepreneurship of the Senate; and 

17 ‘‘(ii) the Committee on Small Business 

18 and the Committee on Science, Space, and 

19 Technology of the House of Representa20 tives.’’. 

21 SEC. 502. COMPETITIVE SELECTION PROCEDURES FOR SBIR 

22 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 at 

25 the end the following: 

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1 ‘‘(pp) COMPETITIVE SELECTION PROCEDURES FOR

2 SBIR AND STTR PROGRAMS.—All funds awarded, appro3 priated, or otherwise made available in accordance with 

4 subsection (f) or (n) must be awarded pursuant to competi5 tive and merit-based selection procedures.’’. 

6 SEC. 503. LOAN RESTRICTIONS. 

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

8 Small Business Act (15 U.S.C. 638), the Administrator 

9 shall promulgate a rule not later than 180 days after the 

10 date of enactment of this Act that determines what restric11 tions, conditions, or covenants contained in a note, bond, 

12 debenture, other evidence of indebtedness, or preferred stock 

13 constitute affiliation for purposes of section 121.103(a) of 

14 title 13, Code of Federal Regulations, as in effect on Janu15 ary 1, 2011. 

16 (b) FAILURE TO PROMULGATE.—If the Administrator 

17 fails to promulgate a rule in the time period required under 

18 subsection (a), the holder of a note, bond, debenture, other 

19 evidence of indebtedness, or preferred stock shall be consid20 ered to be affiliated with the debtor or issuer of the preferred 

21 stock until such time as the Administrator promulgates the 

22 rule required under subsection (a). 

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1 SEC. 504. PROGRAM DIVERSIFICATION. 

2 Federal agencies shall encourage applications under 

3 the SBIR and STTR programs (to the extent that the 

4 projects relate to the mission of the Federal agency) from— 

5 (1) small business concerns in geographic areas 

6 underrepresented in the SBIR and STTR programs 

7 or located in rural areas (as defined in section 

8 1393(a)(2) of the Internal Revenue Code of 1986); 

9 (2) small business concerns owned and controlled 

10 by women; 

11 (3) small business concerns owned and controlled 

12 by veterans; 

13 (4) small business concerns owned and controlled 

14 by minorities; 

15 (5) small business concerns owned and controlled 

16 by people with disabilities; and 

17 (6) small business concerns located in a geo18 graphic area with an unemployment rate that exceeds 

19 the national unemployment rate, based on the most 

20 recently available monthly publications of the Bureau 

21 of Labor Statistics of the Department of Labor. 

22 SECTION 1. SHORT TITLE. 

23 This Act may be cited as the ‘‘Creating 

24 Jobs Through Small Business Innovation Act 

25 of 2011’’. 

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1 SEC. 2. TABLE OF CONTENTS. 

2 The table of contents for this Act is as fol3 lows: 

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. 

Sec. 207. Phase 0 Proof of Concept Partnership pilot program. 

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. 

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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. 

Sec. 314. Reducing fraud, waste, and abuse. 

TITLE IV—POLICY DIRECTIVES 

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

Policy Directives. 

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. 

Sec. 504. Limitation on pilot programs. 

Sec. 505. Ensuring equity in SBIR and STTR awards to individual companies. 

Sec. 506. Inspector General reports. 

Sec. 507. Timing. 

Sec. 508. Publication of certain information. 

Sec. 509. Preference for clean coal technology research. 

Sec. 510. Report on enhancement of manufacturing activities. 

Sec. 511. Express authority to ‘‘fast-track’’ Phase II awards for 

promising Phase I research. 

Sec. 512. Increased partnerships between SBIR awardees and 

prime contractors, venture capital investment 

companies, and larger businesses. 

Sec. 513. Preference for acid mine drainage research. 

Sec. 514. Preference for hydraulic fracturing research. 

1 SEC. 3. DEFINITIONS. 

2 In this Act— 

3 (1) the terms ‘‘Administration’’ and 

4 ‘‘Administrator’’ mean the Small Business 

5 Administration and the Administrator 

6 thereof, respectively; 

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1 (2) the terms ‘‘extramural budget’’, 

2 ‘‘Federal agency’’, ‘‘Small Business Inno3 vation Research Program’’, ‘‘SBIR’’, 

4 ‘‘Small Business Technology Transfer 

5 Program’’, and ‘‘STTR’’ have the mean6 ings given such terms in section 9 of the 

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

8 (3) the term ‘‘small business concern’’ 

9 has the meaning given that term under 

10 section 3 of the Small Business Act (15 

11 U.S.C. 632). 

12 TITLE I—REAUTHORIZATION OF 

13 THE SBIR AND STTR PROGRAMS 

14 SEC. 101. EXTENSION OF TERMINATION DATES. 

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

17 (1) by striking ‘‘TERMINATION.—’’ and 

18 all that follows through ‘‘the authoriza19 tion’’ and inserting ‘‘TERMINATION.—The 

20 authorization’’; 

21 (2) by striking ‘‘2008’’ and inserting 

22 ‘‘2014’’; and 

23 (3) by striking paragraph (2). 

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

2 Business Act (15 U.S.C. 638(n)(1)(A)) is amend3 ed— 

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

5 that follows through ‘‘with respect’’ and 

6 inserting ‘‘IN GENERAL.—With respect’’; 

7 (2) by striking ‘‘2009’’ and inserting 

8 ‘‘2014’’; and 

9 (3) by striking clause (ii). 

10 SEC. 102. SBIR AND STTR AWARD LEVELS. 

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

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

13 638(j)(2)(D)) is amended— 

14 (1) by striking ‘‘$100,000’’ and insert15 ing ‘‘$150,000’’; and 

16 (2) by striking ‘‘$750,000’’ and insert17 ing ‘‘$1,000,000’’. 

18 (b) STTR ADJUSTMENTS.—Section 

19 9(p)(2)(B)(ix) of the Small Business Act (15 

20 U.S.C. 638(p)(2)(B)(ix)) is amended— 

21 (1) by striking ‘‘$100,000’’ and insert22 ing ‘‘$150,000’’; and 

23 (2) by striking ‘‘$750,000’’ and insert24 ing ‘‘$1,000,000’’. 

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

2 Small Business Act (15 U.S.C. 638) is amend3 ed— 

4 (1) in subsection (j)(2)(D), by striking 

5 ‘‘once every 5 years to reflect economic 

6 adjustments and programmatic consider7 ations’’ and inserting ‘‘every year for in8 flation’’; and 

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

10 amended by subsection (b) of this section, 

11 by inserting ‘‘(each of which the Adminis12 trator shall adjust for inflation annually)’’ 

13 after ‘‘$1,000,000,’’. 

14 (d) LIMITATION ON SIZE OF AWARDS.—Sec15 tion 9 of the Small Business Act (15 U.S.C. 

16 638), as amended by this Act, is further 

17 amended by adding at the end the following: 

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

19 ‘‘(1) LIMITATION.—No Federal agency 

20 may issue an award under the SBIR pro21 gram or the STTR program if the size of 

22 the award exceeds the award guidelines 

23 established under this section by more 

24 than 50 percent. 

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1 ‘‘(2) MAINTENANCE OF INFORMATION.— 

2 Participating agencies shall maintain in3 formation on awards exceeding the 

4 guidelines established under this section, 

5 including— 

6 ‘‘(A) the amount of each award; 

7 ‘‘(B) a justification for exceeding 

8 the award amount; 

9 ‘‘(C) the identity and location of 

10 each award recipient; and 

11 ‘‘(D) whether an award recipient 

12 has received any venture capital, 

13 hedge fund, or private equity firm in14 vestment and, if so, whether the re15 cipient is majority-owned by multiple 

16 venture capital operating companies, 

17 hedge funds, or private equity firms. 

18 ‘‘(3) REPORTS.—The Administrator 

19 shall include the information described 

20 in paragraph (2) in the annual report of 

21 the Administrator to Congress. 

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

23 in this subsection shall be construed to 

24 prevent a Federal agency from 

25 supplementing an award under the SBIR 

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1 program or the STTR program using 

2 funds of the Federal agency that are not 

3 part of the SBIR program or the STTR 

4 program of the Federal agency.’’. 

5 SEC. 103. AGENCY AND PROGRAM FLEXIBILITY. 

6 Section 9 of the Small Business Act (15 

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

8 amended by adding at the end the following: 

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

10 ‘‘(1) AGENCY FLEXIBILITY.—A small 

11 business concern that received a Phase I 

12 award from a Federal agency under this 

13 section shall be eligible to receive a sub14 sequent Phase II award from another 

15 Federal agency, if the head of each rel16 evant Federal agency or the relevant 

17 component of the Federal agency makes 

18 a written determination that the topics of 

19 the relevant awards are the same and 

20 both agencies report the awards to the 

21 Administrator for inclusion in the public 

22 database under subsection (k). 

23 ‘‘(2) SBIR AND STTR PROGRAM FLEXI24 BILITY.—A small business concern that re25 ceived a Phase I award under this section 

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1 under the SBIR program or the STTR 

2 program may receive a subsequent Phase 

3 II award in either the SBIR program or 

4 the STTR program and the participating 

5 agency or agencies shall report the 

6 awards to the Administrator for inclusion 

7 in the public database under subsection 

8 (k).’’. 

9 SEC. 104. ELIMINATION OF PHASE II INVITATIONS. 

10 Section 9(e) of the Small Business Act (15 

11 U.S.C. 638(e)) is amended— 

12 (1) in paragraph (4)(B), by striking ‘‘to 

13 further’’ and inserting ‘‘which shall not 

14 include any invitation, pre-screening, 

15 pre-selection, or down-selection process 

16 for eligibility for Phase II, that will fur17 ther’’; and 

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

19 further develop proposed ideas to’’ and 

20 inserting ‘‘which shall not include any in21 vitation, pre-screening, pre-selection, or 

22 down-selection process for eligibility for 

23 Phase II, that will further develop pro24 posals that’’. 

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1 SEC. 105. PHASE FLEXIBILITY. 

2 Section 9 of the Small Business Act (15 

3 U.S.C. 638), as amended by this Act, is further 

4 amended by adding at the end the following: 

5 ‘‘(cc) PHASE I REQUIRED.—Under this sec6 tion, a Federal agency shall provide to a small 

7 business concern an award under Phase II of 

8 an SBIR program with respect to a project 

9 only if such agency finds that the small busi10 ness concern has been provided an award 

11 under Phase I of an SBIR program with re12 spect to such project or has completed the de13 terminations described in subsection (e)(4)(A) 

14 with respect to such project despite not hav15 ing been provided a Phase I award.’’. 

16 SEC. 106. PARTICIPATION BY FIRMS WITH SUBSTANTIAL IN17 VESTMENT FROM MULTIPLE VENTURE CAP18 ITAL OPERATING COMPANIES, HEDGE 

19 FUNDS, OR PRIVATE EQUITY FIRMS IN A POR20 TION OF THE SBIR PROGRAM. 

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

22 Business Act (15 U.S.C. 638), as amended by 

23 this Act, is further amended by adding at the 

24 end the following: 

25 ‘‘(dd) PARTICIPATION OF SMALL BUSINESS

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1 ITAL OPERATING COMPANIES, HEDGE FUNDS, OR

2 PRIVATE EQUITY FIRMS IN THE SBIR PRO3 GRAM.— 

4 ‘‘(1) AUTHORITY.—Upon a written de5 termination described in paragraph (2) 

6 provided to the Administrator, the Com7 mittee on Small Business and Entrepre8 neurship of the Senate, and the Com9 mittee on Small Business and the Com10 mittee on Science, Space, and Technology 

11 of the House of Representatives not later 

12 than 30 days before the date on which an 

13 award is made— 

14 ‘‘(A) the Director of the National 

15 Institutes of Health, the Secretary of 

16 Energy, the Administrator of the Na17 tional Aeronautics and Space Admin18 istration, and the Director of the Na19 tional Science Foundation may award 

20 not more than 45 percent of the funds 

21 allocated for the SBIR program of the 

22 Federal agency to small business con23 cerns that are owned in majority part 

24 by multiple venture capital operating 

25 companies, hedge funds, or private 

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1 equity firms through competitive, 

2 merit-based procedures that are open 

3 to all eligible small business con4 cerns; and 

5 ‘‘(B) the head of a Federal agency 

6 other than a Federal agency de7 scribed in subparagraph (A) that par8 ticipates in the SBIR program may 

9 award not more than 35 percent of 

10 the funds allocated for the SBIR pro11 gram of the Federal agency to small 

12 business concerns that are owned in 

13 majority part by multiple venture 

14 capital operating companies, hedge 

15 funds, or private equity firms 

16 through competitive, merit-based pro17 cedures that are open to all eligible 

18 small business concerns. 

19 ‘‘(2) DETERMINATION.—A written deter20 mination described in this paragraph is a 

21 written determination by the head of a 

22 Federal agency that explains how the use 

23 of the authority under paragraph (1) 

24 will— 

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1 ‘‘(A) induce additional venture 

2 capital, hedge fund, or private equity 

3 firm funding of small business inno4 vations; 

5 ‘‘(B) substantially contribute to 

6 the mission of the Federal agency; 

7 ‘‘(C) demonstrate a need for pub8 lic research; and 

9 ‘‘(D) otherwise fulfill the capital 

10 needs of small business concerns for 

11 additional financing for the SBIR 

12 project. 

13 ‘‘(3) REGISTRATION.—A small business 

14 concern that is majority-owned by mul15 tiple venture capital operating compa16 nies, hedge funds, or private equity firms 

17 and qualified for participation in the pro18 gram authorized under paragraph (1) 

19 shall— 

20 ‘‘(A) register with the Adminis21 trator on the date that the small busi22 ness concern submits an application 

23 for an award under the SBIR pro24 gram; and 

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1 ‘‘(B) indicate in any SBIR pro2 posal that the small business concern 

3 is registered under subparagraph (A) 

4 as majority-owned by multiple ven5 ture capital operating companies, 

6 hedge funds, or private equity firms. 

7 ‘‘(4) COMPLIANCE.— 

8 ‘‘(A) IN GENERAL.—The head of a 

9 Federal agency that makes an award 

10 under this subsection during a fiscal 

11 year shall collect and submit to the 

12 Administrator data relating to the 

13 number and dollar amount of Phase I 

14 awards, Phase II awards, and any 

15 other category of awards by the Fed16 eral agency under the SBIR program 

17 during that fiscal year. 

18 ‘‘(B) ANNUAL REPORTING.—The Ad19 ministrator shall include as part of 

20 each annual report by the Adminis21 tration under subsection (b)(7) any 

22 data submitted under subparagraph 

23 (A) and a discussion of the compli24 ance of each Federal agency that 

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1 section during the fiscal year with 

2 the maximum percentages under 

3 paragraph (1). 

4 ‘‘(5) ENFORCEMENT.—If a Federal agen5 cy awards more than the percent of the 

6 funds allocated for the SBIR program of 

7 the Federal agency authorized under 

8 paragraph (1) for a purpose described in 

9 paragraph (1), the head of the Federal 

10 agency shall transfer an amount equal to 

11 the amount awarded in excess of the 

12 amount authorized under paragraph (1) 

13 to the funds for general SBIR programs 

14 from the non-SBIR and non-STTR re15 search and development funds of the Fed16 eral agency not later than 180 days after 

17 the date on which the Federal agency 

18 made the award that caused the total 

19 awarded under paragraph (1) to be more 

20 than the amount authorized under para21 graph (1) for a purpose described in para22 graph (1). 

23 ‘‘(6) FINAL DECISIONS ON APPLICATIONS

24 UNDER THE SBIR PROGRAM.— 

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1 ‘‘(A) DEFINITION.—In this para2 graph, the term ‘covered small busi3 ness concern’ means a small business 

4 concern that— 

5 ‘‘(i) was not majority-owned 

6 by multiple venture capital oper7 ating companies, hedge funds, or 

8 private equity firms on the date 

9 on which the small business con10 cern submitted an application in 

11 response to a solicitation under 

12 the SBIR programs; and 

13 ‘‘(ii) on the date of the award 

14 under the SBIR program is major15 ity-owned by multiple venture 

16 capital operating companies, 

17 hedge funds, or private equity 

18 firms. 

19 ‘‘(B) IN GENERAL.—If a Federal 

20 agency does not make an award 

21 under a solicitation under the SBIR 

22 program before the date that is 9 

23 months after the date on which the 

24 period for submitting applications 

25 under the solicitation ends— 

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1 ‘‘(i) a covered small business 

2 concern is eligible to receive the 

3 award, without regard to whether 

4 the covered small business con5 cern meets the requirements for 

6 receiving an award under the 

7 SBIR program for a small busi8 ness concern that is majority9 owned by multiple venture cap10 ital operating companies, hedge 

11 funds, or private equity firms, if 

12 the covered small business con13 cern meets all other requirements 

14 for such an award; and 

15 ‘‘(ii) the head of the Federal 

16 agency shall transfer an amount 

17 equal to any amount awarded to a 

18 covered small business concern 

19 under the solicitation to the funds 

20 for general SBIR programs from 

21 the non-SBIR and non-STTR re22 search and development funds of 

23 the Federal agency, not later than 

24 90 days after the date on which 

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1 the Federal agency makes the 

2 award. 

3 ‘‘(7) EVALUATION CRITERIA.—A Federal 

4 agency may not use investment of ven5 ture capital or investment from hedge 

6 funds or private equity firms as a cri7 terion for the award of contracts under 

8 the SBIR program or STTR program.’’. 

9 (b) TECHNICAL AND CONFORMING AMEND10 MENT.—Section 3 of the Small Business Act (15 

11 U.S.C. 632) is amended by adding at the end 

12 the following: 

13 ‘‘(aa) VENTURE CAPITAL OPERATING COM14 PANY.—In this Act, the term ‘venture capital 

15 operating company’ means an entity de16 scribed in clause (i), (v), or (vi) of section 

17 121.103(b)(5) of title 13, Code of Federal Regu18 lations (or any successor thereto). 

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

20 ‘hedge fund’ has the meaning given that term 

21 in section 13(h)(2) of the Bank Holding Com22 pany Act of 1956 (12 U.S.C. 1851(h)(2)). 

23 ‘‘(cc) PRIVATE EQUITY FIRM.—In this Act, 

24 the term ‘private equity firm’ has the meaning 

25 given the term ‘private equity fund’ in section 

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1 13(h)(2) of the Bank Holding Company Act of 

2 1956 (12 U.S.C. 1851(h)(2)).’’. 

3 SEC. 107. ENSURING THAT INNOVATIVE SMALL BUSI4 NESSES WITH SUBSTANTIAL INVESTMENT 

5 FROM VENTURE CAPITAL OPERATING COM6 PANIES, HEDGE FUNDS, OR PRIVATE EQUITY 

7 FIRMS ARE ABLE TO PARTICIPATE IN THE 

8 SBIR AND STTR PROGRAMS. 

9 Section 9 of the Small Business Act (15 

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

11 amended by adding at the end the following: 

12 ‘‘(ee) VENTURE CAPITAL OPERATING COMPA13 NIES, HEDGE FUNDS, AND PRIVATE EQUITY

14 FIRMS.—Effective only for the SBIR and STTR 

15 programs the following shall apply: 

16 ‘‘(1) A business concern that has more 

17 than 500 employees shall not qualify as a 

18 small business concern. 

19 ‘‘(2) In determining whether a small 

20 business concern is independently owned 

21 and operated under section 3(a)(1) or 

22 meets the small business size standards 

23 instituted under section 3(a)(2), the Ad24 ministrator shall not consider a business 

25 concern to be affiliated with a venture 

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1 capital operating company, hedge fund, 

2 or private equity firm (or with any other 

3 business that the venture capital oper4 ating company, hedge fund, or private eq5 uity firm has financed) if— 

6 ‘‘(A) the venture capital operating 

7 company, hedge fund, or private eq8 uity firm does not own 50 percent or 

9 more of the business concern; and 

10 ‘‘(B) employees of the venture 

11 capital operating company, hedge 

12 fund, or private equity firm do not 

13 constitute a majority of the board of 

14 directors of the business concern. 

15 ‘‘(3) A business concern shall be 

16 deemed to be ‘independently owned and 

17 operated’ if— 

18 ‘‘(A) it is owned in majority part 

19 by one or more natural persons or 

20 venture capital operating companies, 

21 hedge funds, or private equity firms; 

22 ‘‘(B) there is no single venture 

23 capital operating company, hedge 

24 fund, or private equity firm that owns 

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1 50 percent or more of the business 

2 concern; and 

3 ‘‘(C) there is no single venture 

4 capital operating company, hedge 

5 fund, or private equity firm the em6 ployees of which constitute a major7 ity of the board of directors of the 

8 business concern. 

9 ‘‘(4) If a venture capital operating 

10 company, hedge fund, or private equity 

11 firm controlled by a business with more 

12 than 500 employees (in this paragraph re13 ferred to as a ‘VCOC, hedge fund, or pri14 vate equity firm under large business 

15 control’) has an ownership interest in a 

16 small business concern that is owned in 

17 majority part by venture capital oper18 ating companies, hedge funds, or private 

19 equity firms, the small business concern 

20 is eligible to receive an award under the 

21 SBIR or STTR program only if— 

22 ‘‘(A) not more than two VCOCs, 

23 hedge funds, or private equity firms 

24 under large business control have an 

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1 ownership interest in the small busi2 ness concern; and 

3 ‘‘(B) the VCOCs, hedge funds, or 

4 private equity firms under large busi5 ness control do not collectively own 

6 more than 20 percent of the small 

7 business concern.’’. 

8 SEC. 108. SBIR AND STTR SPECIAL ACQUISITION PREF9 ERENCE. 

10 Section 9(r) of the Small Business Act (15 

11 U.S.C. 638(r)) is amended by adding at the end 

12 the following: 

13 ‘‘(4) PHASE III AWARDS.—To the great14 est extent practicable, Federal agencies 

15 and Federal prime contractors shall issue 

16 Phase III awards relating to technology, 

17 including sole source awards, to the SBIR 

18 and STTR award recipients that devel19 oped the technology.’’. 

20 SEC. 109. COLLABORATING WITH FEDERAL LABORATORIES 

21 AND RESEARCH AND DEVELOPMENT CEN22 TERS. 

23 Section 9 of the Small Business Act (15 

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

25 amended by adding at the end the following: 

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1 ‘‘(ff) COLLABORATING WITH FEDERAL LAB2 ORATORIES AND RESEARCH AND DEVELOPMENT

3 CENTERS.— 

4 ‘‘(1) AUTHORIZATION.—Subject to the 

5 limitations under this section, the head of 

6 each participating Federal agency may 

7 make SBIR and STTR awards to any eli8 gible small business concern that— 

9 ‘‘(A) intends to enter into an 

10 agreement with a Federal laboratory 

11 or federally funded research and de12 velopment center for portions of the 

13 activities to be performed under that 

14 award; or 

15 ‘‘(B) has entered into a coopera16 tive research and development agree17 ment (as defined in section 12(d) of 

18 the Stevenson-Wydler Technology In19 novation Act of 1980 (15 U.S.C. 

20 3710a(d))) with a Federal laboratory. 

21 ‘‘(2) PROHIBITION.—No Federal agency 

22 shall— 

23 ‘‘(A) condition an SBIR or STTR 

24 award upon entering into agreement 

25 with any Federal laboratory or any 

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1 federally funded laboratory or re2 search and development center for 

3 any portion of the activities to be per4 formed under that award; 

5 ‘‘(B) approve an agreement be6 tween a small business concern re7 ceiving a SBIR or STTR award and a 

8 Federal laboratory or federally fund9 ed laboratory or research and devel10 opment center, if the small business 

11 concern performs a lesser portion of 

12 the activities to be performed under 

13 that award than required by this sec14 tion and by the SBIR Policy Directive 

15 and the STTR Policy Directive of the 

16 Administrator; or 

17 ‘‘(C) approve an agreement that 

18 violates any provision, including any 

19 data rights protections provision, of 

20 this section or the SBIR and the 

21 STTR Policy Directives. 

22 ‘‘(3) IMPLEMENTATION.—Not later than 

23 180 days after the date of enactment of 

24 this subsection, the Administrator shall 

25 modify the SBIR Policy Directive and the 

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1 STTR Policy Directive issued under this 

2 section to ensure that small business con3 cerns— 

4 ‘‘(A) have the flexibility to use the 

5 resources of the Federal laboratories 

6 and federally funded research and de7 velopment centers; and 

8 ‘‘(B) are not mandated to enter 

9 into agreement with any Federal lab10 oratory or any federally funded lab11 oratory or research and development 

12 center as a condition of an award. 

13 ‘‘(4) ADVANCE PAYMENT.—If a small 

14 business concern receiving an award 

15 under this section enters into an agree16 ment with a Federal laboratory or feder17 ally funded research and development 

18 center for portions of the activities to be 

19 performed under that award, the Federal 

20 laboratory or federally funded research 

21 and development center may not require 

22 advance payment from the small business 

23 concern in an amount greater than the 

24 amount necessary to pay for 30 days of 

25 such activities.’’. 

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1 SEC. 110. NOTICE REQUIREMENT. 

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

3 Small Business Act (15 U.S.C. 638(g)) is 

4 amended— 

5 (1) in paragraph (10), by striking 

6 ‘‘and’’ at the end; 

7 (2) in paragraph (11), by striking the 

8 period at the end and inserting ‘‘; and’’; 

9 and 

10 (3) by adding at the end the fol11 lowing: 

12 ‘‘(12) provide timely notice to the Ad13 ministrator of any case or controversy 

14 before any Federal judicial or adminis15 trative tribunal concerning the SBIR pro16 gram of the Federal agency.’’. 

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

18 Small Business Act (15 U.S.C. 638(o)) is 

19 amended— 

20 (1) by striking paragraph (15); 

21 (2) in paragraph (16), by striking the 

22 period at the end and inserting ‘‘; and’’; 

23 (3) by redesignating paragraph (16) as 

24 paragraph (15); and 

25 (4) by adding at the end the fol26 lowing: 

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1 ‘‘(16) provide timely notice to the Ad2 ministrator of any case or controversy 

3 before any Federal judicial or adminis4 trative tribunal concerning the STTR 

5 program of the Federal agency.’’. 

6 SEC. 111. ADDITIONAL SBIR AND STTR AWARDS. 

7 Section 9 of the Small Business Act (15 

8 U.S.C. 638), as amended by this Act, is further 

9 amended by adding at the end the following: 

10 ‘‘(gg) ADDITIONAL SBIR AND STTR 

11 AWARDS.— 

12 ‘‘(1) EXPRESS AUTHORITY FOR AWARDING

13 A SEQUENTIAL PHASE II AWARD.—A small 

14 business concern that receives a Phase II 

15 SBIR award or a Phase II STTR award 

16 for a project remains eligible to receive 

17 one additional Phase II SBIR award or 

18 Phase II STTR award for continued work 

19 on that project. 

20 ‘‘(2) PREVENTING DUPLICATIVE

21 AWARDS.—The head of a Federal agency 

22 shall verify that any activity to be per23 formed with respect to a project with a 

24 Phase I or Phase II SBIR or STTR award 

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1 gram or STTR program of another Fed2 eral agency.’’. 

3 TITLE II—OUTREACH AND COM4 MERCIALIZATION INITIA5 TIVES 

6 SEC. 201. TECHNICAL ASSISTANCE FOR AWARDEES. 

7 Section 9(q) of the Small Business Act (15 

8 U.S.C. 638(q)) is amended— 

9 (1) in paragraph (1)— 

10 (A) by inserting ‘‘or STTR pro11 gram’’ after ‘‘SBIR program’’; and 

12 (B) by striking ‘‘SBIR projects’’ 

13 and inserting ‘‘SBIR or STTR 

14 projects’’; 

15 (2) in paragraph (2), by striking ‘‘3 

16 years’’ and inserting ‘‘5 years’’; and 

17 (3) in paragraph (3)— 

18 (A) in subparagraph (A)— 

19 (i) by inserting ‘‘or STTR’’ 

20 after ‘‘SBIR’’; and 

21 (ii) by striking ‘‘$4,000’’ and 

22 inserting ‘‘$5,000’’; 

23 (B) by striking subparagraph (B) 

24 and inserting the following: 

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1 ‘‘(B) PHASE II.—A Federal agency 

2 described in paragraph (1) may— 

3 ‘‘(i) provide to the recipient of 

4 a Phase II SBIR or STTR award, 

5 through a vendor selected under 

6 paragraph (2), the services de7 scribed in paragraph (1), in an 

8 amount equal to not more than 

9 $5,000 per year; or 

10 ‘‘(ii) authorize the recipient of 

11 a Phase II SBIR or STTR award 

12 to purchase the services de13 scribed in paragraph (1), in an 

14 amount equal to not more than 

15 $5,000 per year, which shall be in 

16 addition to the amount of the re17 cipient’s award.’’; and 

18 (C) by adding at the end the fol19 lowing: 

20 ‘‘(C) FLEXIBILITY.—In carrying out 

21 subparagraphs (A) and (B), each Fed22 eral agency shall provide the allow23 able amounts to a recipient that 

24 meets the eligibility requirements 

25 under the applicable subparagraph, if 

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1 the recipient requests to seek tech2 nical assistance from an individual or 

3 entity other than the vendor selected 

4 under paragraph (2) by the Federal 

5 agency. 

6 ‘‘(D) LIMITATION.—A Federal agen7 cy may not— 

8 ‘‘(i) use the amounts author9 ized under subparagraph (A) or 

10 (B) unless the vendor selected 

11 under paragraph (2) provides the 

12 technical assistance to the recipi13 ent; or 

14 ‘‘(ii) enter a contract with a 

15 vendor under paragraph (2) 

16 under which the amount provided 

17 for technical assistance is based 

18 on total number of Phase I or 

19 Phase II awards.’’. 

20 SEC. 202. COMMERCIALIZATION READINESS PROGRAM AT 

21 DEPARTMENT OF DEFENSE. 

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

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

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1 (1) in the subsection heading, by 

2 striking ‘‘PILOT’’ and inserting ‘‘READI3 NESS’’; 

4 (2) by striking ‘‘Pilot’’ each place that 

5 term appears and inserting ‘‘Readiness’’; 

6 (3) in paragraph (1)— 

7 (A) by inserting ‘‘or Small Busi8 ness Technology Transfer Program’’ 

9 after ‘‘Small Business Innovation Re10 search Program’’; and 

11 (B) by adding at the end the fol12 lowing: ‘‘The authority to create and 

13 administer a Commercialization 

14 Readiness Program under this sub15 section may not be construed to 

16 eliminate or replace any other SBIR 

17 program or STTR program that en18 hances the insertion or transition of 

19 SBIR or STTR technologies, including 

20 any such program in effect on the 

21 date of enactment of the National De22 fense Authorization Act for Fiscal 

23 Year 2006 (Public Law 109–163; 119 

24 Stat. 3136).’’; 

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1 (4) in paragraph (2), by inserting ‘‘or 

2 Small Business Technology Transfer Pro3 gram’’ after ‘‘Small Business Innovation 

4 Research Program’’; 

5 (5) in paragraph (5)— 

6 (A) by striking ‘‘the Committee on 

7 Armed Services and the Committee 

8 on Small Business of the House of 

9 Representatives’’ and inserting ‘‘the 

10 Committee on Armed Services, the 

11 Committee on Small Business, and 

12 the Committee on Science, Space, and 

13 Technology of the House of Rep14 resentatives’’; and 

15 (B) by striking ‘‘shall include’’ and 

16 inserting ‘‘shall include, in addition 

17 to the information described in para18 graph (6)(C)’’; 

19 (6) by redesignating paragraph (5) as 

20 paragraph (7); 

21 (7) by striking paragraph (6); and 

22 (8) by inserting after paragraph (4) 

23 the following: 

24 ‘‘(5) INSERTION INCENTIVES.—For any 

25 contract with a value of not less than 

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1 $100,000,000, the Secretary of Defense is 

2 authorized to— 

3 ‘‘(A) establish goals for the transi4 tion of Phase III technologies in sub5 contracting plans; 

6 ‘‘(B) require a prime contractor 

7 on such a contract to report the num8 ber and dollar amount of contracts 

9 entered into by that prime contractor 

10 for Phase III SBIR or STTR projects; 

11 and 

12 ‘‘(C) take action to ensure that, if 

13 a prime contractor on such a con14 tract, after consultation with the Sec15 retary, certifies that an appropriate 

16 Phase III technology is not available 

17 to be incorporated into a project of 

18 the prime contractor, such project 

19 shall be excluded from any deter20 mination of whether goals under sub21 paragraph (A) have been met. 

22 ‘‘(6) GOAL FOR SBIR AND STTR TECH23 NOLOGY INSERTION.—The Secretary of De24 fense shall— 

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1 ‘‘(A) set a goal to increase the 

2 number of Phase II SBIR contracts 

3 and the number of Phase II STTR 

4 contracts awarded by that Secretary 

5 that lead to technology transition 

6 into programs of record or fielded 

7 systems; 

8 ‘‘(B) use incentives in effect on 

9 the date of enactment of the Creating 

10 Jobs Through Small Business Innova11 tion Act of 2011, or create new incen12 tives, to encourage agency program 

13 managers and prime contractors to 

14 meet the goal under subparagraph 

15 (A); and 

16 ‘‘(C) include in the annual report 

17 under this subsection— 

18 ‘‘(i) the percentage of Phase II 

19 SBIR and STTR contracts award20 ed by the Secretary that led to 

21 technology transition into pro22 grams of record or fielded sys23 tems; 

24 ‘‘(ii) information on the status 

25 of each project that received 

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1 funding through the Commer2 cialization Readiness Program 

3 and efforts to transition those 

4 projects into programs of record 

5 or fielded systems; and 

6 ‘‘(iii) a description of each in7 centive that has been used by the 

8 Secretary under subparagraph 

9 (B) and the effectiveness of that 

10 incentive with respect to meeting 

11 the goal under subparagraph 

12 (A).’’. 

13 (b) TECHNICAL AND CONFORMING AMEND14 MENT.—Section 9(i)(1) of the Small Business 

15 Act (15 U.S.C. 638(i)(1)) is amended by insert16 ing ‘‘(including awards under subsection (y))’’ 

17 after ‘‘the number of awards’’. 

18 SEC. 203. COMMERCIALIZATION READINESS PILOT PRO19 GRAM FOR CIVILIAN AGENCIES. 

20 Section 9 of the Small Business Act (15 

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

22 amended by adding at the end the following: 

23 ‘‘(hh) PILOT PROGRAM.— 

24 ‘‘(1) AUTHORIZATION.—The head of 

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1 cate not more than 10 percent of the 

2 funds allocated to the SBIR program and 

3 the STTR program of the covered Federal 

4 agency— 

5 ‘‘(A) for awards for technology de6 velopment, testing, evaluation, and 

7 commercialization assistance for 

8 SBIR and STTR Phase II tech9 nologies; or 

10 ‘‘(B) to support the progress of re11 search, research and development, 

12 and commercialization conducted 

13 under the SBIR or STTR programs to 

14 Phase III. 

15 ‘‘(2) APPLICATION BY FEDERAL AGEN16 CY.— 

17 ‘‘(A) IN GENERAL.—A covered Fed18 eral agency may not establish a pilot 

19 program unless the covered Federal 

20 agency makes a written application 

21 to the Administrator, not later than 

22 90 days before the first day of the fis23 cal year in which the pilot program is 

24 to be established, that describes a 

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1 vestment in SBIR or STTR tech2 nologies is necessary, including un3 usually high regulatory, systems inte4 gration, or other costs relating to de5 velopment or manufacturing of iden6 tifiable, highly promising small busi7 ness technologies or a class of such 

8 technologies expected to substan9 tially advance the mission of the 

10 agency. 

11 ‘‘(B) DETERMINATION.—The Admin12 istrator shall— 

13 ‘‘(i) make a determination re14 garding an application submitted 

15 under subparagraph (A) not later 

16 than 30 days before the first day 

17 of the fiscal year for which the 

18 application is submitted; 

19 ‘‘(ii) publish the determina20 tion in the Federal Register; and 

21 ‘‘(iii) make a copy of the deter22 mination and any related mate23 rials available to the Committee 

24 on Small Business and Entrepre25 neurship of the Senate and the 

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1 Committee on Small Business and 

2 the Committee on Science, Space, 

3 and Technology of the House of 

4 Representatives. 

5 ‘‘(3) MAXIMUM AMOUNT OF AWARD.—The 

6 head of a covered Federal agency may 

7 not make an award under a pilot pro8 gram in excess of 3 times the dollar 

9 amounts generally established for Phase 

10 II awards under subsection (j)(2)(D) or 

11 (p)(2)(B)(ix). 

12 ‘‘(4) REGISTRATION.—Any applicant 

13 that receives an award under a pilot pro14 gram shall register with the Adminis15 trator in a registry that is available to 

16 the public. 

17 ‘‘(5) AWARD CRITERIA OR CONSIDER18 ATION.—When making an award under 

19 this section, the head of a covered Fed20 eral agency shall give consideration to 

21 whether the technology to be supported 

22 by the award is likely to be manufactured 

23 in the United States. 

24 ‘‘(6) REPORT.—The head of each cov25 ered Federal agency shall include in the 

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1 annual report of the covered Federal 

2 agency to the Administrator an analysis 

3 of the various activities considered for 

4 inclusion in the pilot program of the cov5 ered Federal agency and a statement of 

6 the reasons why each activity considered 

7 was included or not included, as the case 

8 may be. 

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

10 establish a pilot program under this sec11 tion expires at the end of fiscal year 2014. 

12 ‘‘(8) DEFINITIONS.—In this subsection— 

13 ‘‘(A) the term ‘covered Federal 

14 agency’— 

15 ‘‘(i) means a Federal agency 

16 participating in the SBIR pro17 gram or the STTR program; and 

18 ‘‘(ii) does not include the De19 partment of Defense; and 

20 ‘‘(B) the term ‘pilot program’ 

21 means the program established under 

22 paragraph (1).’’. 

23 SEC. 204. INTERAGENCY POLICY COMMITTEE. 

24 (a) ESTABLISHMENT.—The Director of the 

25 Office of Science and Technology Policy shall 

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1 establish an Interagency SBIR/STTR Policy 

2 Committee. 

3 (b) DUTIES.—The Interagency SBIR/STTR 

4 Policy Committee shall review the following 

5 issues and make policy recommendations on 

6 ways to improve program effectiveness and 

7 efficiency: 

8 (1) The public and government data9 bases described in section 9(k) of the 

10 Small Business Act (15 U.S.C. 638(k)). 

11 (2) Federal agency flexibility in estab12 lishing Phase I and II award sizes, in13 cluding appropriate criteria for exer14 cising such flexibility. 

15 (3) Commercialization assistance best 

16 practices of Federal agencies with signifi17 cant potential to be employed by other 

18 agencies, and the appropriate steps to 

19 achieve that leverage, as well as pro20 posals for new initiatives to address 

21 funding gaps that business concerns face 

22 after Phase II but before commercializa23 tion. 

24 (4) Developing and incorporating a 

25 standard evaluation framework to enable 

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1 systematic assessment of SBIR and STTR, 

2 including through improved tracking of 

3 awards and outcomes and development of 

4 performance measures for the SBIR pro5 gram and STTR program of each Federal 

6 agency. 

7 (c) REPORTS.—The Interagency SBIR/ 

8 STTR Policy Committee shall transmit to the 

9 Committee on Science, Space, and Technology 

10 and the Committee on Small Business of the 

11 House of Representatives and to the Com12 mittee on Small Business and Entrepreneur13 ship of the Senate— 

14 (1) a report on its review and rec15 ommendations under subsection (b)(1) 

16 not later than 1 year after the date of en17 actment of this Act; 

18 (2) a report on its review and rec19 ommendations under subsection (b)(2) 

20 not later than 18 months after the date of 

21 enactment of this Act; 

22 (3) a report on its review and rec23 ommendations under subsection (b)(3) 

24 not later than 2 years after the date of 

25 enactment of this Act; and 

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1 (4) a report on its review and rec2 ommendations under subsection (b)(4) 

3 not later than 2 years after the date of 

4 enactment of this Act. 

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

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

7 Small Business Act (15 U.S.C. 638(e)), as 

8 amended by this Act, is further amended— 

9 (1) in paragraph (4)(C), in the matter 

10 preceding clause (i), by inserting ‘‘for 

11 work that derives from, extends, or com12 pletes efforts made under prior funding 

13 agreements under the SBIR program’’ 

14 after ‘‘phase’’; 

15 (2) in paragraph (6)(C), in the matter 

16 preceding clause (i), by inserting ‘‘for 

17 work that derives from, extends, or com18 pletes efforts made under prior funding 

19 agreements under the STTR program’’ 

20 after ‘‘phase’’; 

21 (3) in paragraph (8), by striking ‘‘and’’ 

22 at the end; 

23 (4) in paragraph (9), by striking the 

24 period at the end and inserting a semi25 colon; and 

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1 (5) by adding at the end the fol2 lowing: 

3 ‘‘(10) the term ‘commercialization’ 

4 means— 

5 ‘‘(A) the process of developing 

6 products, processes, technologies, or 

7 services; and 

8 ‘‘(B) the production and delivery 

9 of products, processes, technologies, 

10 or services for sale (whether by the 

11 originating party or by others) to or 

12 use by the Federal Government or 

13 commercial markets;’’. 

14 (b) TECHNICAL AND CONFORMING AMEND15 MENTS.—Section 9 of the Small Business Act 

16 (15 U.S.C. 638), as amended by this Act, is fur17 ther amended— 

18 (1) in subsection (e)— 

19 (A) in paragraph (4)(C)(ii), by 

20 striking ‘‘scientific review criteria’’ 

21 and inserting ‘‘merit-based selection 

22 procedures’’; 

23 (B) in paragraph (9), by striking 

24 ‘‘the second or the third phase’’ and 

25 inserting ‘‘Phase II or Phase III’’; and 

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1 (C) by adding at the end the fol2 lowing: 

3 ‘‘(11) the term ‘Phase I’ means— 

4 ‘‘(A) with respect to the SBIR pro5 gram, the first phase described in 

6 paragraph (4)(A); and 

7 ‘‘(B) with respect to the STTR pro8 gram, the first phase described in 

9 paragraph (6)(A); 

10 ‘‘(12) the term ‘Phase II’ means— 

11 ‘‘(A) with respect to the SBIR pro12 gram, the second phase described in 

13 paragraph (4)(B); and 

14 ‘‘(B) with respect to the STTR pro15 gram, the second phase described in 

16 paragraph (6)(B); and 

17 ‘‘(13) the term ‘Phase III’ means— 

18 ‘‘(A) with respect to the SBIR pro19 gram, the third phase described in 

20 paragraph (4)(C); and 

21 ‘‘(B) with respect to the STTR pro22 gram, the third phase described in 

23 paragraph (6)(C).’’; 

24 (2) in subsection (j)— 

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1 (A) in paragraph (1)(B), by strik2 ing ‘‘phase two’’ and inserting ‘‘Phase 

3 II’’; 

4 (B) in paragraph (2)— 

5 (i) in subparagraph (B)— 

6 (I) by striking ‘‘the third 

7 phase’’ each place it appears 

8 and inserting ‘‘Phase III’’; and 

9 (II) by striking ‘‘the sec10 ond phase’’ and inserting 

11 ‘‘Phase II’’; 

12 (ii) in subparagraph (D)— 

13 (I) by striking ‘‘the first 

14 phase’’ and inserting ‘‘Phase 

15 I’’; and 

16 (II) by striking ‘‘the sec17 ond phase’’ and inserting 

18 ‘‘Phase II’’; 

19 (iii) in subparagraph (F), by 

20 striking ‘‘the third phase’’ and in21 serting ‘‘Phase III’’; 

22 (iv) in subparagraph (G)— 

23 (I) by striking ‘‘the first 

24 phase’’ and inserting ‘‘Phase 

25 I’’; and 

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1 (II) by striking ‘‘the sec2 ond phase’’ and inserting 

3 ‘‘Phase II’’; and 

4 (v) in subparagraph (H)— 

5 (I) by striking ‘‘the first 

6 phase’’ and inserting ‘‘Phase 

7 I’’; 

8 (II) by striking ‘‘second 

9 phase’’ each place it appears 

10 and inserting ‘‘Phase II’’; and 

11 (III) by striking ‘‘third 

12 phase’’ and inserting ‘‘Phase 

13 III’’; and 

14 (C) in paragraph (3)— 

15 (i) in subparagraph (A)— 

16 (I) by striking ‘‘the first 

17 phase (as described in sub18 section (e)(4)(A))’’ and insert19 ing ‘‘Phase I’’; 

20 (II) by striking ‘‘the sec21 ond phase (as described in 

22 subsection (e)(4)(B))’’ and in23 serting ‘‘Phase II’’; and 

24 (III) by striking ‘‘the third 

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1 section (e)(4)(C))’’ and insert2 ing ‘‘Phase III’’; and 

3 (ii) in subparagraph (B), by 

4 striking ‘‘second phase’’ and in5 serting ‘‘Phase II’’; 

6 (3) in subsection (k)— 

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

8 place it appears and inserting ‘‘Phase 

9 I’’; and 

10 (B) by striking ‘‘second phase’’ 

11 each place it appears and inserting 

12 ‘‘Phase II’’; 

13 (4) in subsection (l)(2)— 

14 (A) by striking ‘‘the first phase’’ 

15 and inserting ‘‘Phase I’’; and 

16 (B) by striking ‘‘the second phase’’ 

17 and inserting ‘‘Phase II’’; 

18 (5) in subsection (o)(13)— 

19 (A) in subparagraph (B), by strik20 ing ‘‘second phase’’ and inserting 

21 ‘‘Phase II’’; and 

22 (B) in subparagraph (C), by strik23 ing ‘‘third phase’’ and inserting 

24 ‘‘Phase III’’; 

25 (6) in subsection (p)— 

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1 (A) in paragraph (2)(B)— 

2 (i) in clause (vi)— 

3 (I) by striking ‘‘the second 

4 phase’’ and inserting ‘‘Phase 

5 II’’; and 

6 (II) by striking ‘‘the third 

7 phase’’ and inserting ‘‘Phase 

8 III’’; and 

9 (ii) in clause (ix)— 

10 (I) by striking ‘‘the first 

11 phase’’ and inserting ‘‘Phase 

12 I’’; and 

13 (II) by striking ‘‘the sec14 ond phase’’ and inserting 

15 ‘‘Phase II’’; and 

16 (B) in paragraph (3)— 

17 (i) by striking ‘‘the first phase 

18 (as described in subsection 

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

20 (ii) by striking ‘‘the second 

21 phase (as described in subsection 

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

23 II’’; and 

24 (iii) by striking ‘‘the third 

25 phase (as described in subsection 

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1 (e)(6)(C))’’ and inserting ‘‘Phase 

2 III’’; 

3 (7) in subsection (q)(3)(A)— 

4 (A) in the subparagraph heading, 

5 by striking ‘‘FIRST PHASE’’ and insert6 ing ‘‘PHASE I’’; and 

7 (B) by striking ‘‘first phase’’ and 

8 inserting ‘‘Phase I’’; 

9 (8) in subsection (r)— 

10 (A) in the subsection heading, by 

11 striking ‘‘THIRD PHASE’’ and inserting 

12 ‘‘PHASE III’’; 

13 (B) in paragraph (1)— 

14 (i) in the first sentence— 

15 (I) by striking ‘‘for the sec16 ond phase’’ and inserting ‘‘for 

17 Phase II’’; 

18 (II) by striking ‘‘third 

19 phase’’ and inserting ‘‘Phase 

20 III’’; and 

21 (III) by striking ‘‘second 

22 phase period’’ and inserting 

23 ‘‘Phase II period’’; and 

24 (ii) in the second sentence— 

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1 (I) by striking ‘‘second 

2 phase’’ and inserting ‘‘Phase 

3 II’’; and 

4 (II) by striking ‘‘third 

5 phase’’ and inserting ‘‘Phase 

6 III’’; and 

7 (C) in paragraph (2), by striking 

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

9 III’’; and 

10 (9) in subsection (u)(2)(B), by striking 

11 ‘‘the first phase’’ and inserting ‘‘Phase I’’. 

12 SEC. 206. SHORTENED PERIOD FOR FINAL DECISIONS ON 

13 PROPOSALS AND APPLICATIONS. 

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

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

16 this Act, is further amended— 

17 (1) in subsection (g)(4)— 

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

19 (B) by adding ‘‘and’’ after the 

20 semicolon at the end; and 

21 (C) by adding at the end the fol22 lowing: 

23 ‘‘(B) make a final decision on each 

24 proposal submitted under the SBIR pro25 gram— 

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1 ‘‘(i) not later than 90 days after 

2 the date on which the solicitation 

3 closes; or 

4 ‘‘(ii) if the Administrator author5 izes an extension for a solicitation, 

6 not later than 180 days after the date 

7 on which the solicitation closes;’’; and 

8 (2) in subsection (o)(4)— 

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

10 (B) by adding ‘‘and’’ after the 

11 semicolon at the end; and 

12 (C) by adding at the end the fol13 lowing: 

14 ‘‘(B) make a final decision on each 

15 proposal submitted under the STTR pro16 gram— 

17 ‘‘(i) not later than 90 days after 

18 the date on which the solicitation 

19 closes; or 

20 ‘‘(ii) if the Administrator author21 izes an extension for a solicitation, 

22 not later than 180 days after the date 

23 on which the solicitation closes;’’. 

24 (b) NIH PEER REVIEW PROCESS.—Section 9 

25 of the Small Business Act (15 U.S.C. 638), as 

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1 amended by this Act, is further amended by 

2 adding at the end the following: 

3 ‘‘(ii) NIH PEER REVIEW PROCESS.—Notwith4 standing subsections (g)(4)(B) and (o)(4)(B), 

5 the Director of the National Institutes of 

6 Health may make an award under the SBIR 

7 program or the STTR program of the National 

8 Institutes of Health only if the application for 

9 the award has undergone technical and sci10 entific peer review under section 492 of the 

11 Public Health Service Act (42 U.S.C. 289a). 

12 ‘‘(jj) NSF PEER REVIEW PROCESS.—Notwith13 standing subsections (g)(4)(B) and (o)(4)(B), 

14 the Director of the National Science Founda15 tion may make an award under the SBIR pro16 gram or the STTR program of the National 

17 Science Foundation only if the application for 

18 the award has undergone the National 

19 Science Foundation’s technical and scientific 

20 peer review process and met all other applica21 ble peer review procedures and guidelines 

22 pursuant to the National Science Foundation 

23 Act of 1950 (42 U.S.C. 1861, et seq.) and other 

24 applicable Federal law.’’. 

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1 SEC. 207. PHASE 0 PROOF OF CONCEPT PARTNERSHIP 

2 PILOT PROGRAM. 

3 Section 9 of the Small Business Act (15 

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

5 amended by adding at the end the following: 

6 ‘‘(kk) PHASE 0 PROOF OF CONCEPT PARTNER7 SHIP PILOT PROGRAM.— 

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

9 National Institutes of Health may use 

10 $10,000,000 of the funds allocated under 

11 subsection (n)(1) for a Proof of Concept 

12 Partnership pilot program to accelerate 

13 the creation of small businesses and the 

14 commercialization of research innova15 tions from qualifying institutions. To im16 plement this program, the Director shall 

17 award, through a competitive, merit18 based process, grants to qualifying insti19 tutions. These grants shall only be used 

20 to administer Proof of Concept Partner21 ship awards in conformity with this sub22 section. 

23 ‘‘(2) DEFINITIONS.—In this subsection— 

24 ‘‘(A) the term ‘Director’ means the 

25 Director of the National Institutes of 

26 Health; 

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1 ‘‘(B) the term ‘pilot program’ re2 fers to the Proof of Concept Partner3 ship pilot program; and 

4 ‘‘(C) the terms ‘qualifying institu5 tion’ and ‘institution’ mean a univer6 sity or other research institution that 

7 participates in the National Institutes 

8 of Health’s STTR program. 

9 ‘‘(3) PROOF OF CONCEPT PARTNER10 SHIPS.— 

11 ‘‘(A) IN GENERAL.—A Proof of Con12 cept Partnership shall be set up by a 

13 qualifying institution to award grants 

14 to individual researchers. These 

15 grants should provide researchers 

16 with the initial investment and the 

17 resources to support the proof of con18 cept work and commercialization 

19 mentoring needed to translate prom20 ising research projects and tech21 nologies into a viable company. This 

22 work may include technical valida23 tions, market research, clarifying in24 tellectual property rights position 

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1 and strategy and investigating com2 mercial or business opportunities. 

3 ‘‘(B) AWARD GUIDELINES.—The ad4 ministrator of a Proof of Concept 

5 Partnership program shall award 

6 grants in accordance with the fol7 lowing guidelines: 

8 ‘‘(i) The Proof of Concept 

9 Partnership shall use a market-fo10 cused project management over11 sight process, including— 

12 ‘‘(I) a rigorous, diverse re13 view board comprised of local 

14 experts in translational and 

15 proof of concept research, in16 cluding industry, start-up, 

17 venture capital, technical, fi18 nancial, and business experts 

19 and university technology 

20 transfer officials; 

21 ‘‘(II) technology validation 

22 milestones focused on market 

23 feasibility; 

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1 ‘‘(III) simple reporting ef2 fective at redirecting projects; 

3 and 

4 ‘‘(IV) the willingness to re5 allocate funding from failing 

6 projects to those with more 

7 potential. 

8 ‘‘(ii) Not more than $100,000 

9 shall be awarded towards an indi10 vidual proposal. 

11 ‘‘(C) EDUCATIONAL RESOURCES AND

12 GUIDANCE.—The administrator of a 

13 Proof of Concept Partnership pro14 gram shall make educational re15 sources and guidance available to re16 searchers attempting to commer17 cialize their innovations. 

18 ‘‘(4) AWARDS.— 

19 ‘‘(A) SIZE OF AWARD.—The Director 

20 may make awards to a qualifying in21 stitution for up to $1,000,000 per year 

22 for up to 3 years. 

23 ‘‘(B) AWARD CRITERIA.—In deter24 mining which qualifying institutions 

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1 rector shall consider, in addition to 

2 any other criteria the Director deter3 mines necessary, the extent to which 

4 qualifying institutions— 

5 ‘‘(i) have an established and 

6 proven technology transfer or 

7 commercialization office and 

8 have a plan for engaging that of9 fice in the program implementa10 tion; 

11 ‘‘(ii) have demonstrated a 

12 commitment to local and regional 

13 economic development; 

14 ‘‘(iii) are located in diverse ge15 ographies and are of diverse 

16 sizes; 

17 ‘‘(iv) can assemble project 

18 management boards comprised of 

19 industry, start-up, venture cap20 ital, technical, financial, and busi21 ness experts; 

22 ‘‘(v) have an intellectual prop23 erty rights strategy or office; and 

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1 ‘‘(vi) demonstrate a plan for 

2 sustainability beyond the dura3 tion of the funding award. 

4 ‘‘(5) LIMITATIONS.—The funds for the 

5 pilot program shall not be used— 

6 ‘‘(A) for basic research, but to 

7 evaluate the commercial potential of 

8 existing discoveries, including— 

9 ‘‘(i) proof of concept research 

10 or prototype development; and 

11 ‘‘(ii) activities that contribute 

12 to determining a project’s com13 mercialization path, to include 

14 technical validations, market re15 search, clarifying intellectual 

16 property rights, and investigating 

17 commercial and business oppor18 tunities; or 

19 ‘‘(B) to fund the acquisition of re20 search equipment or supplies unre21 lated to commercialization activities. 

22 ‘‘(6) EVALUATIVE REPORT.—The Direc23 tor shall submit to the Committee on 

24 Science, Space, and Technology and the 

25 Committee on Small Business of the 

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1 House of Representatives and the Com2 mittee on Small Business and Entrepre3 neurship of the Senate an evaluative re4 port regarding the activities of the pilot 

5 program. The report shall include— 

6 ‘‘(A) a detailed description of the 

7 institutional and proposal selection 

8 process; 

9 ‘‘(B) an accounting of the funds 

10 used in the pilot program; 

11 ‘‘(C) a detailed description of the 

12 pilot program, including incentives 

13 and activities undertaken by review 

14 board experts; 

15 ‘‘(D) a detailed compilation of re16 sults achieved by the pilot program, 

17 including the number of small busi18 ness concerns included and the num19 ber of business packages developed, 

20 and the number of projects that pro21 gressed into subsequent STTR 

22 phases; and 

23 ‘‘(E) an analysis of the program’s 

24 effectiveness with supporting data. 

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1 ‘‘(7) SUNSET.—The pilot program 

2 under this subsection shall terminate at 

3 the end of fiscal year 2014.’’. 

4 TITLE III—OVERSIGHT AND 

5 EVALUATION 

6 SEC. 301. STREAMLINING ANNUAL EVALUATION REQUIRE7 MENTS. 

8 Section 9(b) of the Small Business Act (15 

9 U.S.C. 638(b)) is amended— 

10 (1) in paragraph (7)— 

11 (A) by striking ‘‘STTR programs, 

12 including the data’’ and inserting the 

13 following: ‘‘STTR programs, includ14 ing— 

15 ‘‘(A) the data’’; 

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

17 (o)(15), the number’’ and all that fol18 lows through ‘‘under each of the SBIR 

19 and STTR programs, and a descrip20 tion’’ and inserting the following: 

21 ‘‘(g)(8) and (o)(9); 

22 ‘‘(B) the number of proposals re23 ceived from, and the number and 

24 total amount of awards to, HUBZone 

25 small business concerns and firms 

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1 with venture capital, hedge fund, or 

2 private equity firm investment (in3 cluding those majority-owned by mul4 tiple venture capital operating com5 panies, hedge funds, or private equity 

6 firms) under each of the SBIR and 

7 STTR programs; 

8 ‘‘(C) a description of the extent to 

9 which each Federal agency is increas10 ing outreach and awards to firms 

11 owned and controlled by women and 

12 social or economically disadvantaged 

13 individuals under each of the SBIR 

14 and STTR programs; 

15 ‘‘(D) general information about 

16 the implementation of, and compli17 ance with the allocation of funds re18 quired under, subsection (dd) for 

19 firms owned in majority part by ven20 ture capital operating companies, 

21 hedge funds, or private equity firms 

22 and participating in the SBIR pro23 gram; 

24 ‘‘(E) a detailed description of ap25 peals of Phase III awards and notices 

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1 of noncompliance with the SBIR Pol2 icy Directive and the STTR Policy Di3 rective filed by the Administrator 

4 with Federal agencies; and 

5 ‘‘(F) a description’’; and 

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

7 (2) in paragraph (8), by striking the 

8 period at the end and inserting ‘‘; and’’; 

9 and 

10 (3) by inserting after paragraph (8) 

11 the following: 

12 ‘‘(9) to coordinate the implementation 

13 of electronic databases at each of the 

14 Federal agencies participating in the 

15 SBIR program or the STTR program, in16 cluding the technical ability of the par17 ticipating agencies to electronically share 

18 data.’’. 

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

20 Section 9(g) of the Small Business Act (15 

21 U.S.C. 638(g)), as amended by this Act, is fur22 ther amended— 

23 (1) by striking paragraph (10); 

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1 (2) by redesignating paragraphs (8) 

2 and (9) as paragraphs (9) and (10), respec3 tively; and 

4 (3) by inserting after paragraph (7) 

5 the following: 

6 ‘‘(8) collect annually, and maintain in 

7 a common format in accordance with the 

8 simplified reporting requirements under 

9 subsection (v), such information from 

10 awardees as is necessary to assess the 

11 SBIR program, including information 

12 necessary to maintain the database de13 scribed in subsection (k), including— 

14 ‘‘(A) whether an awardee— 

15 ‘‘(i) has venture capital, hedge 

16 fund, or private equity firm in17 vestment or is majority-owned by 

18 multiple venture capital oper19 ating companies, hedge funds, or 

20 private equity firms, and, if so— 

21 ‘‘(I) the amount of venture 

22 capital, hedge fund, or private 

23 equity firm investment that 

24 the awardee has received as 

25 of the date of the award; and 

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1 ‘‘(II) the amount of addi2 tional capital that the award3 ee has invested in the SBIR 

4 technology; 

5 ‘‘(ii) has an investor that— 

6 ‘‘(I) is an individual who is 

7 not a citizen of the United 

8 States or a lawful permanent 

9 resident of the United States, 

10 and if so, the name of any 

11 such individual; or 

12 ‘‘(II) is a person that is not 

13 an individual and is not orga14 nized under the laws of a 

15 State or the United States, 

16 and if so the name of any such 

17 person; 

18 ‘‘(iii) is owned by a woman or 

19 has a woman as a principal inves20 tigator; 

21 ‘‘(iv) is owned by a socially or 

22 economically disadvantaged indi23 vidual or has a socially or eco24 nomically disadvantaged indi25 vidual as a principal investigator; 

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1 ‘‘(v) is a faculty member or a 

2 student of an institution of higher 

3 education, as that term is defined 

4 in section 101 of the Higher Edu5 cation Act of 1965 (20 U.S.C. 1001); 

6 or 

7 ‘‘(vi) is located in a State de8 scribed in subsection (u)(3); and 

9 ‘‘(B) a justification statement from 

10 the agency, if an awardee receives an 

11 award in an amount that is more 

12 than the award guidelines under this 

13 section;’’. 

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

15 Section 9(o) of the Small Business Act (15 

16 U.S.C. 638(o)), as amended by this Act, is fur17 ther amended by striking paragraph (9) and 

18 inserting the following: 

19 ‘‘(9) collect annually, and maintain in 

20 a common format in accordance with the 

21 simplified reporting requirements under 

22 subsection (v), such information from ap23 plicants and awardees as is necessary to 

24 assess the STTR program outputs and 

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1 essary to maintain the database de2 scribed in subsection (k), including— 

3 ‘‘(A) whether an applicant or 

4 awardee— 

5 ‘‘(i) has venture capital, hedge 

6 fund, or private equity firm in7 vestment or is majority-owned by 

8 multiple venture capital oper9 ating companies, hedge funds, or 

10 private equity firms, and, if so— 

11 ‘‘(I) the amount of venture 

12 capital, hedge fund, or private 

13 equity firm investment that 

14 the applicant or awardee has 

15 received as of the date of the 

16 application or award, as ap17 plicable; and 

18 ‘‘(II) the amount of addi19 tional capital that the appli20 cant or awardee has invested 

21 in the SBIR technology; 

22 ‘‘(ii) has an investor that— 

23 ‘‘(I) is an individual who is 

24 not a citizen of the United 

25 States or a lawful permanent 

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1 resident of the United States, 

2 and if so, the name of any 

3 such individual; or 

4 ‘‘(II) is a person that is not 

5 an individual and is not orga6 nized under the laws of a 

7 State or the United States, 

8 and if so the name of any such 

9 person; 

10 ‘‘(iii) is owned by a woman or 

11 has a woman as a principal inves12 tigator; 

13 ‘‘(iv) is owned by a socially or 

14 economically disadvantaged indi15 vidual or has a socially or eco16 nomically disadvantaged indi17 vidual as a principal investigator; 

18 ‘‘(v) is a faculty member or a 

19 student of an institution of higher 

20 education, as that term is defined 

21 in section 101 of the Higher Edu22 cation Act of 1965 (20 U.S.C. 1001); 

23 or 

24 ‘‘(vi) is located in a State in 

25 which the total value of contracts 

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1 awarded to small business con2 cerns under all STTR programs is 

3 less than the total value of con4 tracts awarded to small business 

5 concerns in a majority of other 

6 States, as determined by the Ad7 ministrator in biennial fiscal 

8 years, beginning with fiscal year 

9 2008, based on the most recent 

10 statistics compiled by the Admin11 istrator; and 

12 ‘‘(B) if an awardee receives an 

13 award in an amount that is more 

14 than the award guidelines under this 

15 section, a statement from the agency 

16 that justifies the award amount;’’. 

17 SEC. 304. PUBLIC DATABASE. 

18 Section 9(k)(1) of the Small Business Act 

19 (15 U.S.C. 638(k)(1)) is amended— 

20 (1) in subparagraph (D), by striking 

21 ‘‘and’’ at the end; 

22 (2) in subparagraph (E), by striking 

23 the period at the end and inserting ‘‘; 

24 and’’; and 

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1 (3) by adding at the end the fol2 lowing: 

3 ‘‘(F) for each small business con4 cern that has received a Phase I or 

5 Phase II SBIR or STTR award from a 

6 Federal agency, whether the small 

7 business concern— 

8 ‘‘(i) has venture capital, hedge 

9 fund, or private equity firm in10 vestment and, if so, whether the 

11 small business concern is reg12 istered as majority-owned by mul13 tiple venture capital operating 

14 companies, hedge funds, or pri15 vate equity firms as required 

16 under subsection (dd)(3); 

17 ‘‘(ii) is owned by a woman or 

18 has a woman as a principal inves19 tigator; 

20 ‘‘(iii) is owned by a socially or 

21 economically disadvantaged indi22 vidual or has a socially or eco23 nomically disadvantaged indi24 vidual as a principal investigator; 

25 or 

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1 ‘‘(iv) is owned by a faculty 

2 member or a student of an insti3 tution of higher education, as 

4 that term is defined in section 101 

5 of the Higher Education Act of 

6 1965 (20 U.S.C. 1001).’’. 

7 SEC. 305. GOVERNMENT DATABASE. 

8 Section 9(k) of the Small Business Act (15 

9 U.S.C. 638(k)) is amended— 

10 (1) in paragraph (2)— 

11 (A) in the matter preceding sub12 paragraph (A), by striking ‘‘Not later’’ 

13 and all that follows through ‘‘Act of 

14 2000’’ and inserting ‘‘Not later than 90 

15 days after the date of enactment of 

16 the Creating Jobs Through Small 

17 Business Innovation Act of 2011’’; 

18 (B) by striking subparagraph (C); 

19 (C) by redesignating subpara20 graphs (A) and (B) as subparagraphs 

21 (B) and (C), respectively; 

22 (D) by inserting before subpara23 graph (B), as so redesignated, the fol24 lowing: 

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1 ‘‘(A) contains, for each small busi2 ness concern that applies for, submits 

3 a proposal for, or receives an award 

4 under Phase I or Phase II of the SBIR 

5 program or the STTR program— 

6 ‘‘(i) the name, size, and loca7 tion, and an identifying number 

8 assigned by the Administration of 

9 the small business concern; 

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

11 ‘‘(iii) the specific aims of the 

12 project; 

13 ‘‘(iv) the number of employees 

14 of the small business concern; 

15 ‘‘(v) the names and titles of 

16 the key individuals that will carry 

17 out the project, the position each 

18 key individual holds in the small 

19 business concern, and contact in20 formation for each key individual; 

21 ‘‘(vi) the percentage of effort 

22 each individual described in 

23 clause (iv) will contribute to the 

24 project; 

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1 ‘‘(vii) whether the small busi2 ness concern is majority-owned 

3 by multiple venture capital oper4 ating companies, hedge funds, or 

5 private equity firms; and 

6 ‘‘(viii) the Federal agency to 

7 which the application is made, 

8 and contact information for the 

9 person or office within the Fed10 eral agency that is responsible for 

11 reviewing applications and mak12 ing awards under the SBIR pro13 gram or the STTR program;’’; 

14 (E) by redesignating subpara15 graphs (D) and (E) as subparagraphs 

16 (E) and (F), respectively; 

17 (F) by inserting after subpara18 graph (C), as so redesignated, the fol19 lowing: 

20 ‘‘(D) includes, for each awardee— 

21 ‘‘(i) the name, size, location, 

22 and any identifying number as23 signed to the awardee by the Ad24 ministrator; 

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1 ‘‘(ii) whether the awardee has 

2 venture capital, hedge fund, or 

3 private equity firm investment, 

4 and, if so— 

5 ‘‘(I) the amount of venture 

6 capital, hedge fund, or private 

7 equity firm investment as of 

8 the date of the award; 

9 ‘‘(II) the percentage of 

10 ownership of the awardee 

11 held by a venture capital op12 erating company, hedge fund, 

13 or private equity firm, includ14 ing whether the awardee is 

15 majority-owned by multiple 

16 venture capital operating 

17 companies, hedge funds, or 

18 private equity firms; and 

19 ‘‘(III) the amount of addi20 tional capital that the award21 ee has invested in the SBIR 

22 technology, which informa23 tion shall be collected on an 

24 annual basis; 

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1 ‘‘(iii) the names and locations 

2 of any affiliates of the awardee; 

3 ‘‘(iv) the number of employees 

4 of the awardee; 

5 ‘‘(v) the number of employees 

6 of the affiliates of the awardee; 

7 and 

8 ‘‘(vi) the names of, and the 

9 percentage of ownership of the 

10 awardee held by— 

11 ‘‘(I) any individual who is 

12 not a citizen of the United 

13 States or a lawful permanent 

14 resident of the United States; 

15 or 

16 ‘‘(II) any person that is not 

17 an individual and is not orga18 nized under the laws of a 

19 State or the United States;’’; 

20 (G) in subparagraph (E), as so re21 designated, by striking ‘‘and’’ at the 

22 end; 

23 (H) in subparagraph (F), as so re24 designated, by striking the period at 

25 the end and inserting ‘‘; and’’; and 

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1 (I) by adding at the end the fol2 lowing: 

3 ‘‘(G) includes a timely and accu4 rate list of any individual or small 

5 business concern that has partici6 pated in the SBIR program or STTR 

7 program that has been— 

8 ‘‘(i) convicted of a fraud-re9 lated crime involving funding re10 ceived under the SBIR program 

11 or STTR program; or 

12 ‘‘(ii) found civilly liable for a 

13 fraud-related violation involving 

14 funding received under the SBIR 

15 program or STTR program.’’; and 

16 (2) in paragraph (3), by adding at the 

17 end the following: 

18 ‘‘(C) GOVERNMENT DATABASE.—Not 

19 later than 60 days after the date es20 tablished by a Federal agency for 

21 submitting applications or proposals 

22 for a Phase I or Phase II award under 

23 the SBIR program or STTR program, 

24 the head of the Federal agency shall 

25 submit to the Administrator the data 

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1 required under paragraph (2) with re2 spect to each small business concern 

3 that applies or submits a proposal for 

4 the Phase I or Phase II award.’’. 

5 SEC. 306. ACCURACY IN FUNDING BASE CALCULATIONS. 

6 (a) IN GENERAL.—Not later than 1 year 

7 after the date of enactment of this Act, and 

8 every year thereafter until the date that is 5 

9 years after the date of enactment of this Act, 

10 the Comptroller General of the United States 

11 shall— 

12 (1) conduct a fiscal and management 

13 audit of the SBIR program and the STTR 

14 program for the applicable period to— 

15 (A) determine whether Federal 

16 agencies comply with the expenditure 

17 amount requirements under sub18 sections (f)(1) and (n)(1) of section 9 

19 of the Small Business Act (15 U.S.C. 

20 638), as amended by this Act; 

21 (B) assess the extent of compli22 ance with the requirements of section 

23 9(i)(2) of the Small Business Act (15 

24 U.S.C. 638(i)(2)) by Federal agencies 

25 participating in the SBIR program or 

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1 the STTR program and the Adminis2 tration; and 

3 (C) determine the portion of the 

4 extramural research or research and 

5 development budget of a Federal 

6 agency that each Federal agency 

7 spends for administrative purposes 

8 relating to the SBIR program or 

9 STTR program, and for what specific 

10 purposes, including the portion, if 

11 any, of such budget the Federal agen12 cy spends for salaries and expenses, 

13 travel to visit applicants, outreach 

14 events, marketing, and technical as15 sistance; and 

16 (2) submit a report to the Committee 

17 on Small Business and Entrepreneurship 

18 of the Senate and the Committee on 

19 Small Business and the Committee on 

20 Science, Space, and Technology of the 

21 House of Representatives regarding the 

22 audit conducted under paragraph (1), in23 cluding the assessments required under 

24 subparagraph (B), and the determination 

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1 made under subparagraph (C) of para2 graph (1). 

3 (b) DEFINITION OF APPLICABLE PERIOD.—In 

4 this section, the term ‘‘applicable period’’ 

5 means— 

6 (1) for the first report submitted 

7 under this section, the period beginning 

8 on October 1, 2005, and ending on Sep9 tember 30 of the last full fiscal year be10 fore the date of enactment of this Act for 

11 which information is available; and 

12 (2) for the second and each subse13 quent report submitted under this sec14 tion, the period— 

15 (A) beginning on October 1 of the 

16 first fiscal year after the end of the 

17 most recent full fiscal year relating to 

18 which a report under this section was 

19 submitted; and 

20 (B) ending on September 30 of the 

21 last full fiscal year before the date of 

22 the report. 

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1 SEC. 307. CONTINUED EVALUATION BY THE NATIONAL 

2 ACADEMY OF SCIENCES. 

3 Section 108 of the Small Business Reau4 thorization Act of 2000 (15 U.S.C. 638 note) is 

5 amended by adding at the end the following: 

6 ‘‘(e) EXTENSIONS AND ENHANCEMENTS OF AU7 THORITY.— 

8 ‘‘(1) IN GENERAL.—Not later than 6 

9 months after the date of enactment of the 

10 Creating Jobs Through Small Business 

11 Innovation Act of 2011, the head of each 

12 agency described in subsection (a), in 

13 consultation with the Small Business Ad14 ministration, shall cooperatively enter 

15 into an agreement with the National 

16 Academy of Sciences for the National Re17 search Council to, not later than 4 years 

18 after the date of enactment of the Cre19 ating Jobs Through Small Business Inno20 vation Act of 2011, and every 4 years 

21 thereafter— 

22 ‘‘(A) continue the most recent 

23 study under this section relating to 

24 the issues described in subpara25 graphs (A), (B), (C), and (E) of sub26 section (a)(1); 

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1 ‘‘(B) conduct a comprehensive 

2 study of how the STTR program has 

3 stimulated technological innovation 

4 and technology transfer, including— 

5 ‘‘(i) a review of the collabora6 tions created between small busi7 nesses and research institutions, 

8 including an evaluation of the ef9 fectiveness of the program in 

10 stimulating new collaborations 

11 and any obstacles that may pre12 vent or inhibit the creation of 

13 such collaborations; 

14 ‘‘(ii) an evaluation of the effec15 tiveness of the program at trans16 ferring technology and capabili17 ties developed through Federal 

18 funding; 

19 ‘‘(iii) an evaluation of the pro20 gram’s success at commercializing 

21 technologies compared with other 

22 Federal technology transfer pro23 grams and the SBIR program; 

24 ‘‘(iv) to the extent practicable, 

25 an evaluation of the economic 

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1 benefits achieved by the STTR 

2 program, including the economic 

3 rate of return; 

4 ‘‘(v) an analysis of how Fed5 eral agencies are using small 

6 businesses that have completed 

7 Phase II under the STTR program 

8 to fulfill their procurement needs; 

9 and 

10 ‘‘(vi) an analysis of whether 

11 the existing STTR allocation has 

12 impacted the effectiveness of the 

13 program in achieving its goals; 

14 ‘‘(C) make recommendations with 

15 respect to the issues described in sub16 paragraph (A), (D), and (E) of sub17 section (a)(2) and subparagraph (B) of 

18 this paragraph; and 

19 ‘‘(D) estimate, to the extent prac20 ticable, the number of jobs created by 

21 the SBIR program or STTR program 

22 of the agency. 

23 ‘‘(2) CONSULTATION.—An agreement 

24 under paragraph (1) shall require the Na25 tional Research Council to ensure that 

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1 there is participation by and consultation 

2 with the small business community, the 

3 Administration, and other interested par4 ties as described in subsection (b). 

5 ‘‘(3) REPORTING.—An agreement under 

6 paragraph (1) shall require that— 

7 ‘‘(A) not later than 4 years after 

8 the date of enactment of the Creating 

9 Jobs Through Small Business Innova10 tion Act of 2011, and every 4 years 

11 thereafter, the National Research 

12 Council shall submit to the head of 

13 the agency entering into the agree14 ment, the Committee on Small Busi15 ness and Entrepreneurship of the 

16 Senate, and the Committee on Small 

17 Business and the Committee on 

18 Science, Space, and Technology of the 

19 House of Representatives, a report re20 garding the study conducted under 

21 paragraph (1) and containing the rec22 ommendations described in para23 graph (1); and 

24 ‘‘(B) not later than 2 years after 

25 the date of enactment of the Creating 

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1 Jobs Through Small Business Innova2 tion Act of 2011, the National Re3 search Council shall submit to the 

4 head of the agency entering into the 

5 agreement, the Committee on Small 

6 Business and Entrepreneurship of the 

7 Senate, and the Committee on Small 

8 Business and the Committee on 

9 Science, Space, and Technology of the 

10 House of Representatives, a report of 

11 preliminary findings and rec12 ommendations regarding the study 

13 conducted under paragraph (1)(B).’’. 

14 SEC. 308. TECHNOLOGY INSERTION REPORTING REQUIRE15 MENTS. 

16 Section 9 of the Small Business Act (15 

17 U.S.C. 638), as amended by this Act, is further 

18 amended by adding at the end the following: 

19 ‘‘(ll) PHASE III REPORTING.—The annual 

20 SBIR or STTR report to Congress by the Ad21 ministration under subsection (b)(7) shall in22 clude, for each Phase III award made by the 

23 Federal agency— 

24 ‘‘(1) the name of the agency or compo25 nent of the agency or the non-Federal 

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1 source of capital making the Phase III 

2 award; 

3 ‘‘(2) the name of the small business 

4 concern or individual receiving the 

5 Phase III award; and 

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

7 III award.’’. 

8 SEC. 309. OBTAINING CONSENT FROM SBIR AND STTR AP9 PLICANTS TO RELEASE CONTACT INFORMA10 TION TO ECONOMIC DEVELOPMENT ORGANI11 ZATIONS. 

12 Section 9 of the Small Business Act (15 

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

14 amended by adding at the end the following: 

15 ‘‘(mm) CONSENT TO RELEASE CONTACT IN16 FORMATION TO ORGANIZATIONS.— 

17 ‘‘(1) ENABLING CONCERN TO GIVE CON18 SENT.—Each Federal agency required by 

19 this section to conduct an SBIR program 

20 or an STTR program shall enable a small 

21 business concern that is an SBIR appli22 cant or an STTR applicant to indicate to 

23 the Federal agency whether the Federal 

24 agency has the consent of the concern 

25 to— 

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1 ‘‘(A) identify the concern to ap2 propriate local and State-level eco3 nomic development organizations as 

4 an SBIR applicant or an STTR appli5 cant; and 

6 ‘‘(B) release the contact informa7 tion of the concern to such organiza8 tions. 

9 ‘‘(2) RULES.—The Administrator shall 

10 establish rules to implement this sub11 section. The rules shall include a require12 ment that a Federal agency include in 

13 the SBIR and STTR application a provi14 sion through which the applicant can in15 dicate consent for purposes of paragraph 

16 (1).’’. 

17 SEC. 310. PILOT TO ALLOW FUNDING FOR ADMINISTRA18 TIVE, OVERSIGHT, AND CONTRACT PROC19 ESSING COSTS. 

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

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

22 this Act, is further amended by adding at the 

23 end the following: 

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1 ‘‘(nn) ASSISTANCE FOR ADMINISTRATIVE, 

2 OVERSIGHT, AND CONTRACT PROCESSING

3 COSTS.— 

4 ‘‘(1) IN GENERAL.—Subject to para5 graph (2), for the 3 full fiscal years begin6 ning after the date of enactment of this 

7 subsection, the Administrator shall allow 

8 each Federal agency required to conduct 

9 an SBIR program to use not more than 3 

10 percent of the funds allocated to the 

11 SBIR program of the Federal agency 

12 for— 

13 ‘‘(A) the administration of the 

14 SBIR program or the STTR program 

15 of the Federal agency; 

16 ‘‘(B) the provision of outreach and 

17 technical assistance relating to the 

18 SBIR program or STTR program of 

19 the Federal agency, including tech20 nical assistance site visits and per21 sonnel interviews; 

22 ‘‘(C) the implementation of com23 mercialization and outreach initia24 tives that were not in effect on the 

25 date of enactment of this subsection; 

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1 ‘‘(D) carrying out the program 

2 under subsection (y); 

3 ‘‘(E) activities relating to over4 sight and congressional reporting, in5 cluding waste, fraud, and abuse pre6 vention activities; 

7 ‘‘(F) targeted reviews of recipients 

8 of awards under the SBIR program or 

9 STTR program of the Federal agency 

10 that the head of the Federal agency 

11 determines are at high risk for fraud, 

12 waste, or abuse, to ensure compliance 

13 with requirements of the SBIR pro14 gram or STTR program, respectively; 

15 ‘‘(G) the implementation of over16 sight and quality control measures, 

17 including verification of reports and 

18 invoices and cost reviews; 

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

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

21 ‘‘(J) contract processing costs re22 lating to the SBIR program or STTR 

23 program of the Federal agency; and 

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1 ‘‘(K) funding for additional per2 sonnel and assistance with applica3 tion reviews. 

4 ‘‘(2) PERFORMANCE CRITERIA.—A Fed5 eral agency may not use funds as author6 ized under paragraph (1) until after the 

7 effective date of performance criteria, 

8 which the Administrator shall establish, 

9 to measure any benefits of using funds as 

10 authorized under paragraph (1) and to 

11 assess continuation of the authority 

12 under paragraph (1). 

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

14 after the date of enactment of this sub15 section, the Administrator shall issue 

16 rules to carry out this subsection. 

17 ‘‘(4) COORDINATION WITH IG.—Each 

18 Federal agency shall coordinate the ac19 tivities funded under subparagraph (E), 

20 (F), or (G) of paragraph (1) with their re21 spective Inspectors General, when appro22 priate, and each Federal agency that allo23 cates more than $50,000,000 to the SBIR 

24 program of the Federal agency for a fis25 cal year may share such funding with its 

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1 Inspector General when the Inspector 

2 General performs such activities.’’. 

3 (b) TECHNICAL AND CONFORMING AMEND4 MENTS.— 

5 (1) IN GENERAL.—Section 9 of the 

6 Small Business Act (15 U.S.C. 638), as 

7 amended by this Act, is further amend8 ed— 

9 (A) in subsection (f)(2), by striking 

10 ‘‘shall not’’ and all that follows 

11 through ‘‘make available for the pur12 pose’’ and inserting ‘‘shall not make 

13 available for the purpose’’; and 

14 (B) in subsection (y)— 

15 (i) by striking paragraph (4); 

16 (ii) by redesignating para17 graphs (5), (6), and (7) as para18 graphs (4), (5), and (6), respec19 tively; and 

20 (iii) in paragraph (6), as so re21 designated, by striking ‘‘described 

22 in paragraph (6)(C)’’ and inserting 

23 ‘‘described in paragraph (5)(C)’’. 

24 (2) TRANSITIONAL RULE.—Notwith25 standing the amendments made by paramstockstill on DSK4VPTVN1PROD with BILLS

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1 graph (1), subsection (f)(2) and (y)(4) of 

2 section 9 of the Small Business Act (15 

3 U.S.C. 638), as in effect on the day before 

4 the date of enactment of this Act, shall 

5 continue to apply to each Federal agency 

6 until the effective date of the perform7 ance criteria established by the Adminis8 trator under subsection (nn)(2) of section 

9 9 of the Small Business Act, as added by 

10 subsection (a). 

11 (3) PROSPECTIVE REPEAL.—Effective on 

12 the first day of the fourth full fiscal year 

13 following the date of enactment of this 

14 Act, section 9 of the Small Business Act 

15 (15 U.S.C. 638), as amended by paragraph 

16 (1) of this section, is amended— 

17 (A) in subsection (f)(2), by striking 

18 ‘‘shall not make available for the pur19 pose’’ and inserting the following: 

20 ‘‘shall not— 

21 ‘‘(A) use any of its SBIR budget 

22 established pursuant to paragraph (1) 

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1 ing costs associated with salaries and 

2 expenses; or 

3 ‘‘(B) make available for the pur4 pose’’; and 

5 (B) in subsection (y)— 

6 (i) by redesignating para7 graphs (4), (5), and (6) as para8 graphs (5), (6), and (7), respec9 tively; 

10 (ii) in paragraph (7), as so re11 designated, by striking ‘‘described 

12 in paragraph (5)(C)’’ and inserting 

13 ‘‘described in paragraph (6)(C)’’; 

14 and 

15 (iii) by inserting after para16 graph (3) the following: 

17 ‘‘(4) FUNDING.— 

18 ‘‘(A) IN GENERAL.—The Secretary 

19 of Defense and each Secretary of a 

20 military department may use not 

21 more than an amount equal to 1 per22 cent of the funds available to the De23 partment of Defense or the military 

24 department pursuant to the Small 

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1 gram for payment of expenses in2 curred to administer the Commer3 cialization Pilot Program under this 

4 subsection. 

5 ‘‘(B) LIMITATIONS.—The funds de6 scribed in subparagraph (A)— 

7 ‘‘(i) shall not be subject to the 

8 limitations on the use of funds in 

9 subsection (f)(2); and 

10 ‘‘(ii) shall not be used to make 

11 Phase III awards.’’. 

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

13 OPERATING COMPANY, HEDGE FUND, AND 

14 PRIVATE EQUITY FIRM INVOLVEMENT. 

15 Not later than 2 years after the date of en16 actment of this Act, and every 2 years there17 after, the Comptroller General of the United 

18 States shall— 

19 (1) conduct a study of the impact of 

20 requirements relating to venture capital 

21 operating company, hedge fund, and pri22 vate equity firm involvement under sec23 tion 9 of the Small Business Act; and 

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1 (2) submit to Congress a report re2 garding the study conducted under para3 graph (1). 

4 SEC. 312. REDUCING VULNERABILITY OF SBIR AND STTR 

5 PROGRAMS TO FRAUD, WASTE, AND ABUSE. 

6 (a) FRAUD, WASTE, AND ABUSE PREVEN7 TION.— 

8 (1) AMENDMENTS REQUIRED FOR FRAUD, 

9 WASTE, AND ABUSE PREVENTION.—Not later 

10 than 90 days after the date of enactment 

11 of this Act, the Administrator shall 

12 amend the SBIR Policy Directive and the 

13 STTR Policy Directive to include meas14 ures to prevent fraud, waste, and abuse 

15 in the SBIR program and the STTR pro16 gram. 

17 (2) CONTENT OF AMENDMENTS.—The 

18 amendments required under paragraph 

19 (1) shall include— 

20 (A) definitions or descriptions of 

21 fraud, waste, and abuse; 

22 (B) guidelines for the monitoring 

23 and oversight of applicants to and re24 cipients of awards under the SBIR 

25 program or the STTR program; 

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1 (C) a requirement that each Fed2 eral agency that participates in the 

3 SBIR program or STTR program in4 clude information concerning the 

5 method established by the Inspector 

6 General of the Federal agency to re7 port fraud, waste, and abuse (includ8 ing any telephone hotline or Web9 based platform)— 

10 (i) on the website of the Fed11 eral agency; and 

12 (ii) in any solicitation or no13 tice of funding opportunity issued 

14 by the Federal agency for the 

15 SBIR program or the STTR pro16 gram; and 

17 (D) a requirement that each appli18 cant for and small business concern 

19 that receives funding under the SBIR 

20 program or the STTR program shall 

21 certify whether the applicant or small 

22 business concern is in compliance 

23 with the laws relating to the SBIR 

24 program and the STTR program and 

25 the conduct guidelines established 

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1 under the SBIR Policy Directive and 

2 the STTR Policy Directive. 

3 (3) CONSULTATION.—The Adminis4 trator shall develop the certification re5 quired under paragraph (2)(D) in co6 operation with the Council of Inspectors 

7 General on Integrity and Efficiency and 

8 the Office of Advocacy of the Administra9 tion. 

10 (4) CERTIFICATION.—The certification 

11 developed under paragraph (3) may— 

12 (A) cover the lifecycle of the 

13 award to require certifications at the 

14 application, funding, reporting, and 

15 closeout phases of every SBIR and 

16 STTR award; 

17 (B) require the small business 

18 concern to certify compliance with 

19 the ‘‘principal investigator primary 

20 employment’’ requirement, the ‘‘small 

21 business concern’’ definition require22 ment, and the ‘‘performance of work’’ 

23 requirements as set forth in the Di24 rective applicable to the award; 

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1 (C) require the small business 

2 concern to disclose whether it has ap3 plied for, plans to apply for, or re4 ceived an SBIR or STTR award for 

5 the same or overlapping work, and 

6 require the concern to certify that 

7 the award that it is applying for or 

8 obtaining funding for is not the same 

9 or overlapping with work it has per10 formed, or will perform, in connec11 tion with any other SBIR or STTR 

12 award that the concern has applied 

13 for or received from any other agency 

14 except as fully disclosed to all fund15 ing agencies; and 

16 (D) require that the small busi17 ness concern certify that it will or did 

18 perform the work on the award at its 

19 facilities with its employees, unless 

20 otherwise indicated. 

21 (5) INSPECTORS GENERAL.—The Inspec22 tor General of each Federal agency that 

23 participates in the SBIR program or 

24 STTR program shall cooperate to prevent 

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1 fraud, waste, and abuse in the SBIR pro2 gram and the STTR program by— 

3 (A) establishing fraud detection 

4 indicators; 

5 (B) reviewing regulations and op6 erating procedures of the Federal 

7 agency; 

8 (C) coordinating information 

9 sharing between Federal agencies, to 

10 the extent otherwise permitted under 

11 Federal law; and 

12 (D) improving the education and 

13 training of, and outreach to— 

14 (i) administrators of the SBIR 

15 program and the STTR program 

16 of the Federal agency; 

17 (ii) applicants to the SBIR 

18 program or the STTR program; 

19 and 

20 (iii) recipients of awards 

21 under the SBIR program or the 

22 STTR program. 

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

24 year after the date of enactment of this Act to 

25 establish a baseline of changes made to the 

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1 program to fight fraud, waste, and abuse, and 

2 every 3 years thereafter to evaluate the effec3 tiveness of the agency strategies, the Comp4 troller General of the United States shall— 

5 (1) conduct a study that evaluates— 

6 (A) the implementation by each 

7 Federal agency that participates in 

8 the SBIR program or the STTR pro9 gram of the amendments to the SBIR 

10 Policy Directive and the STTR Policy 

11 Directive made pursuant to sub12 section (a); 

13 (B) the effectiveness of the man14 agement information system of each 

15 Federal agency that participates in 

16 the SBIR program or STTR program 

17 in identifying duplicative SBIR and 

18 STTR projects; 

19 (C) the effectiveness of the risk 

20 management strategies of each Fed21 eral agency that participates in the 

22 SBIR program or STTR program in 

23 identifying areas of the SBIR pro24 gram or the STTR program that are 

25 at high risk for fraud; 

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1 (D) technological tools that may 

2 be used to detect patterns of behavior 

3 that may indicate fraud by applicants 

4 to the SBIR program or the STTR 

5 program; 

6 (E) the success of each Federal 

7 agency that participates in the SBIR 

8 program or STTR program in reduc9 ing fraud, waste, and abuse in the 

10 SBIR program or the STTR program 

11 of the Federal agency; and 

12 (F) the extent to which the In13 spector General of each Federal agen14 cy that participates in the SBIR and 

15 STTR program effectively conducts 

16 investigations, audits, inspections, 

17 and outreach relating to the SBIR 

18 and STTR programs of the Federal 

19 agency; and 

20 (2) submit to the Committee on Small 

21 Business and Entrepreneurship of the 

22 Senate, the Committee on Small Business 

23 and the Committee on Science, Space, 

24 and Technology of the House of Rep25 resentatives, and the head of each Fedmstockstill on DSK4VPTVN1PROD with BILLS

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1 eral agency that participates in the SBIR 

2 program or STTR program a report on 

3 the results of the study conducted under 

4 subparagraph (A). 

5 SEC. 313. SIMPLIFIED PAPERWORK REQUIREMENTS. 

6 Section 9(v) of the Small Business Act (15 

7 U.S.C. 638(v)) is amended— 

8 (1) in the subsection heading, by 

9 striking ‘‘SIMPLIFIED REPORTING REQUIRE10 MENTS’’ and inserting ‘‘REDUCING PAPER11 WORK AND COMPLIANCE BURDEN’’; 

12 (2) by striking ‘‘The Administrator’’ 

13 and inserting the following: 

14 ‘‘(1) STANDARDIZATION OF REPORTING

15 REQUIREMENTS.—The Administrator’’; and 

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

18 ‘‘(2) SIMPLIFICATION OF APPLICATION

19 AND AWARD PROCESS.—Not later than one 

20 year after the date of enactment of this 

21 paragraph, and after a period of public 

22 comment, the Administrator shall issue 

23 regulations or guidelines, taking into 

24 consideration the unique needs of each 

25 Federal agency, to ensure that each Fedmstockstill on DSK4VPTVN1PROD with BILLS

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1 eral agency required to carry out an 

2 SBIR program or STTR program sim3 plifies and standardizes the program pro4 posal, selection, contracting, compliance, 

5 and audit procedures for the SBIR pro6 gram or STTR program of the Federal 

7 agency (including procedures relating to 

8 overhead rates for applicants and docu9 mentation requirements) to reduce the 

10 paperwork and regulatory compliance 

11 burden on small business concerns apply12 ing to and participating in the SBIR pro13 gram or STTR program.’’. 

14 SEC. 314. REDUCING FRAUD, WASTE, AND ABUSE. 

15 Not later than 4 years after the date of en16 actment of this Act, and every 4 years there17 after, the Comptroller General of the United 

18 States shall— 

19 (1) conduct a study of the effective20 ness of the government and public data21 bases described in section 9(k) of the 

22 Small Business Act (15 U.S.C. 638(k)) in 

23 reducing vulnerabilities of the SBIR pro24 gram and the STTR program to fraud, 

25 waste, and abuse, particularly with remstockstill on DSK4VPTVN1PROD with BILLS

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1 spect to Federal agencies funding dupli2 cative proposals and business concerns 

3 falsifying information in proposals; 

4 (2) make recommendations with re5 spect to the issues described in para6 graph (1); and 

7 (3) submit to the head of each agency 

8 described in section 108(a) of the Small 

9 Business Reauthorization Act of 2000 (15 

10 U.S.C. 638 note), the Committee on Small 

11 Business and Entrepreneurship of the 

12 Senate, and the Committee on Small 

13 Business and the Committee on Science, 

14 Space, and Technology of the House of 

15 Representatives a report regarding the 

16 study conducted under paragraph (1) and 

17 containing the recommendations de18 scribed in paragraph (2). 

19 TITLE IV—POLICY DIRECTIVES 

20 SEC. 401. CONFORMING AMENDMENTS TO THE SBIR AND 

21 THE STTR POLICY DIRECTIVES. 

22 (a) IN GENERAL.—Not later than 180 days 

23 after the date of enactment of this Act, the Ad24 ministrator shall promulgate amendments to 

25 the SBIR Policy Directive and the STTR Polmstockstill on DSK4VPTVN1PROD with BILLS

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1 icy Directive to conform such directives to 

2 this Act and the amendments made by this 

3 Act. 

4 (b) PUBLISHING SBIR POLICY DIRECTIVE

5 AND THE STTR POLICY DIRECTIVE IN THE FED6 ERAL REGISTER.—Not later than 180 days after 

7 the date of enactment of this Act, the Adminis8 trator shall publish the amended SBIR Policy 

9 Directive and the amended STTR Policy Di10 rective in the Federal Register. 

11 TITLE V—OTHER PROVISIONS 

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

13 Section 9 of the Small Business Act (15 

14 U.S.C. 638), as amended by this Act, is further 

15 amended by adding at the end the following: 

16 ‘‘(oo) ANNUAL REPORT ON SBIR AND STTR 

17 PROGRAM GOALS.— 

18 ‘‘(1) DEVELOPMENT OF METRICS.—The 

19 head of each Federal agency required to 

20 participate in the SBIR program or the 

21 STTR program shall develop metrics to 

22 evaluate the effectiveness, and the ben23 efit to the people of the United States, of 

24 the SBIR program and the STTR program 

25 of the Federal agency that— 

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1 ‘‘(A) are science-based and statis2 tically driven; 

3 ‘‘(B) reflect the mission of the 

4 Federal agency; and 

5 ‘‘(C) include factors relating to 

6 the economic impact of the programs. 

7 ‘‘(2) EVALUATION.—The head of each 

8 Federal agency described in paragraph 

9 (1) shall conduct an annual evaluation 

10 using the metrics developed under para11 graph (1) of— 

12 ‘‘(A) the SBIR program and the 

13 STTR program of the Federal agency; 

14 and 

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

16 the United States of the SBIR pro17 gram and the STTR program of the 

18 Federal agency. 

19 ‘‘(3) REPORT.— 

20 ‘‘(A) IN GENERAL.—The head of 

21 each Federal agency described in 

22 paragraph (1) shall submit to the ap23 propriate committees of Congress and 

24 the Administrator an annual report 

25 describing in detail the results of an 

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1 evaluation conducted under para2 graph (2). 

3 ‘‘(B) PUBLIC AVAILABILITY OF RE4 PORT.—The head of each Federal 

5 agency described in paragraph (1) 

6 shall make each report submitted 

7 under subparagraph (A) available to 

8 the public online. 

9 ‘‘(C) DEFINITION.—In this para10 graph, the term ‘appropriate commit11 tees of Congress’ means— 

12 ‘‘(i) the Committee on Small 

13 Business and Entrepreneurship of 

14 the Senate; and 

15 ‘‘(ii) the Committee on Small 

16 Business and the Committee on 

17 Science, Space, and Technology of 

18 the House of Representatives.’’. 

19 SEC. 502. COMPETITIVE SELECTION PROCEDURES FOR 

20 SBIR AND STTR PROGRAMS. 

21 Section 9 of the Small Business Act (15 

22 U.S.C. 638), as amended by this Act, is further 

23 amended by adding at the end the following: 

24 ‘‘(pp) COMPETITIVE SELECTION PROCEDURES

25 FOR SBIR AND STTR PROGRAMS.—All funds 

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1 awarded, appropriated, or otherwise made 

2 available in accordance with subsection (f) or 

3 (n) must be awarded pursuant to competitive 

4 and merit-based selection procedures.’’. 

5 SEC. 503. LOAN RESTRICTIONS. 

6 (a) RULE REQUIRED.—For purposes of sec7 tion 9 of the Small Business Act (15 U.S.C. 

8 638), the Administrator shall promulgate a 

9 rule not later than 180 days after the date of 

10 enactment of this Act that determines what 

11 restrictions, conditions, or covenants con12 tained in a note, bond, debenture, other evi13 dence of indebtedness, or preferred stock con14 stitute affiliation for purposes of section 

15 121.103(a) of title 13, Code of Federal Regula16 tions, as in effect on January 1, 2011. 

17 (b) FAILURE TO PROMULGATE.—If the Ad18 ministrator fails to promulgate a rule in the 

19 time period required under subsection (a), the 

20 holder of a note, bond, debenture, other evi21 dence of indebtedness, or preferred stock 

22 shall be considered to be affiliated with the 

23 debtor or issuer of the preferred stock until 

24 such time as the Administrator promulgates 

25 the rule required under subsection (a). 

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1 SEC. 504. LIMITATION ON PILOT PROGRAMS. 

2 Section 9 of the Small Business Act (15 

3 U.S.C. 638), as amended by this Act, is further 

4 amended by adding at the end the following: 

5 ‘‘(qq) LIMITATION ON PILOT PROGRAMS.— 

6 ‘‘(1) IN GENERAL.—The Administrator 

7 may only carry out a covered pilot pro8 gram if in accordance with paragraphs 

9 (2) and (3). 

10 ‘‘(2) EXISTING PILOT PROGRAMS.—With 

11 respect to a covered pilot program in op12 eration on the date of enactment of this 

13 subsection, such program may only be 

14 carried out during the 3-year period be15 ginning on such date of enactment. 

16 ‘‘(3) NEW PILOT PROGRAMS.—With re17 spect to a covered pilot program estab18 lished after the date of enactment of this 

19 subsection, such program— 

20 ‘‘(A) may only be carried out dur21 ing the 3-year period beginning on 

22 the date on which such program is es23 tablished; and 

24 ‘‘(B) may not continue or be based 

25 on, in any manner, a previously es26 tablished covered pilot program. 

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1 ‘‘(4) COVERED PILOT PROGRAM DE2 FINED.—In this subsection, the term ‘cov3 ered pilot program’ means any initiative, 

4 project, innovation, or other activity— 

5 ‘‘(A) relating to an SBIR or STTR 

6 program; and 

7 ‘‘(B) not specifically authorized by 

8 law.’’. 

9 SEC. 505. ENSURING EQUITY IN SBIR AND STTR AWARDS TO 

10 INDIVIDUAL COMPANIES. 

11 Section 9 of the Small Business Act (15 

12 U.S.C. 638), as amended by this Act, is further 

13 amended by adding at the end the following: 

14 ‘‘(rr) ENSURING EQUITY IN SBIR AND STTR 

15 AWARDS TO INDIVIDUAL COMPANIES.—A small 

16 business concern, including affiliates of the 

17 small business concern, may not receive an 

18 SBIR or STTR award in a fiscal year if, at the 

19 time the award is made— 

20 ‘‘(1) the small business concern has 

21 received an aggregate dollar amount of 

22 such awards in such fiscal year that ex23 ceeds 50 percent of the aggregate dollar 

24 amount of such awards received, in the 

25 preceding fiscal year, by the median 

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1 State with respect to such aggregate 

2 amount; or 

3 ‘‘(2) the small business concern has 

4 received an aggregate number of such 

5 awards in such fiscal year that exceeds 

6 50 percent of the aggregate number of 

7 such awards received, in the preceding 

8 fiscal year, by the median State with re9 spect to such aggregate number.’’. 

10 SEC. 506. INSPECTOR GENERAL REPORTS. 

11 Not later than October 1 of each year, the 

12 Inspector General of each Federal agency 

13 that participates in the SBIR program or 

14 STTR program shall submit to the Committee 

15 on Small Business and Entrepreneurship of 

16 the Senate and the Committee on Small Busi17 ness and the Committee on Science, Space, 

18 and Technology of the House of Representa19 tives a report describing— 

20 (1) the number of cases referred to 

21 the Inspector General in the preceding 

22 year that related to fraud, waste, or 

23 abuse with respect to the SBIR program 

24 or STTR program; 

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1 (2) the actions taken in each case de2 scribed in paragraph (1) if fraud, waste, 

3 or abuse was determined to have oc4 curred; 

5 (3) if no action was taken in a case 

6 described in paragraph (1) and fraud, 

7 waste, or abuse was determined to have 

8 occurred, the justification for action not 

9 being taken; and 

10 (4) an accounting of the funds used to 

11 address fraud, waste, and abuse, includ12 ing a description of personnel and re13 sources funded and funds that were re14 covered or saved. 

15 SEC. 507. TIMING. 

16 Federal agencies participating in the 

17 SBIR program or STTR program shall, to the 

18 extent possible, attempt to shorten the 

19 amount of time between the provision of no20 tice of an award under the SBIR program or 

21 STTR program and the subsequent release of 

22 funding with respect to the award. 

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1 SEC. 508. PUBLICATION OF CERTAIN INFORMATION. 

2 Section 9 of the Small Business Act (15 

3 U.S.C. 638), as amended by this Act, is further 

4 amended by adding at the end the following: 

5 ‘‘(ss) PUBLICATION OF CERTAIN INFORMA6 TION.—In order to increase the number of 

7 small businesses receiving awards under the 

8 SBIR or STTR programs of participating 

9 agencies, and to simplify the application proc10 ess for such awards, the Administrator shall 

11 establish and maintain a public Internet 

12 website on which the Administrator shall 

13 publish such information relating to notice of 

14 and application for awards under the SBIR 

15 program and STTR program of each partici16 pating Federal agency as the Administrator 

17 determines appropriate.’’. 

18 SEC. 509. PREFERENCE FOR CLEAN COAL TECHNOLOGY 

19 RESEARCH. 

20 Section 9 of the Small Business Act (15 

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

22 amended by adding at the end the following: 

23 ‘‘(tt) CLEAN COAL TECHNOLOGY RESEARCH

24 PREFERENCE.—In making awards under this 

25 section, a Federal agency shall give priority 

26 to applications in a manner that increases the 

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1 number of SBIR and STTR award recipients 

2 conducting research with respect to clean 

3 coal technology, including the gasification of 

4 coal.’’. 

5 SEC. 510. REPORT ON ENHANCEMENT OF MANUFACTURING 

6 ACTIVITIES. 

7 Section 9 of the Small Business Act (15 

8 U.S.C. 638), as amended by this Act, is further 

9 amended by adding at the end the following: 

10 ‘‘(uu) REPORT ON ENHANCEMENT OF MANU11 FACTURING ACTIVITIES.—Not later than Octo12 ber 1, 2011, and annually thereafter, the head 

13 of each Federal agency that makes more than 

14 $50,000,000 in awards under the SBIR and 

15 STTR programs of the agency combined shall 

16 submit to the Committee on Small Business 

17 and Entrepreneurship of the Senate and the 

18 Committee on Small Business and the Com19 mittee on Science, Space, and Technology of 

20 the House of Representatives a report that in21 cludes— 

22 ‘‘(1) a description of efforts under23 taken by the head of the Federal agency 

24 to enhance manufacturing activities; 

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1 ‘‘(2) a comprehensive description of 

2 the actions undertaken each year by the 

3 head of the Federal agency in carrying 

4 out the SBIR or STTR program of the 

5 agency in support of Executive Order 

6 13329 (69 Fed. Reg. 9181; relating to en7 couraging innovation in manufacturing); 

8 ‘‘(3) an assessment of the effective9 ness of the actions described in para10 graph (2) at enhancing the research and 

11 development of manufacturing tech12 nologies and processes; and 

13 ‘‘(4) recommendations that the pro14 gram managers of the SBIR or STTR pro15 gram of the agency consider appropriate 

16 for additional actions to increase the ef17 fectiveness of enhancing manufacturing 

18 activities.’’. 

19 SEC. 511. EXPRESS AUTHORITY TO ‘‘FAST-TRACK’’ PHASE II 

20 AWARDS FOR PROMISING PHASE I RE21 SEARCH. 

22 Section 9 of the Small Business Act (15 

23 U.S.C. 638), as amended by this Act, is further 

24 amended by adding at the end the following: 

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1 ‘‘(vv) AUTHORITY TO ‘FAST-TRACK’ PHASE II 

2 AWARDS FOR PROMISING PHASE I RESEARCH.— 

3 To address the delay between an award for 

4 Phase I of an SBIR program and the applica5 tion for and extension of an award for Phase 

6 II of such program, each Federal agency with 

7 an SBIR program may develop ‘fast-track’ 

8 programs to eliminate such delay by issuing 

9 Phase II SBIR awards as soon as practicable, 

10 including in appropriate cases simulta11 neously with the issuance of the Phase I SBIR 

12 award. The Administrator shall encourage the 

13 development of such ‘fast-track’ programs.’’. 

14 SEC. 512. INCREASED PARTNERSHIPS BETWEEN SBIR 

15 AWARDEES AND PRIME CONTRACTORS, VEN16 TURE CAPITAL INVESTMENT COMPANIES, 

17 AND LARGER BUSINESSES. 

18 Section 9 of the Small Business Act (15 

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

20 amended by adding at the end the following: 

21 ‘‘(ww) INCREASED PARTNERSHIPS.— 

22 ‘‘(1) IN GENERAL.—Each agency re23 quired by this section to conduct an SBIR 

24 program shall establish initiatives by 

25 which the agency encourages partnermstockstill on DSK4VPTVN1PROD with BILLS

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1 ships between SBIR awardees and prime 

2 contractors, venture capital investment 

3 companies, business incubators, and larg4 er businesses, for the purpose of facili5 tating the progress of the SBIR awardees 

6 to Phase III. 

7 ‘‘(2) DEFINITION.—In this subsection, 

8 the term ‘business incubator’ means an 

9 entity that provides coordinated and spe10 cialized services to entrepreneurial busi11 nesses which meet selected criteria dur12 ing the businesses’ startup phases, in13 cluding providing services such as shared 

14 office space and office services, access to 

15 equipment, access to telecommunications 

16 and technology services, flexible leases, 

17 specialized management assistance, ac18 cess to financing, mentoring and training 

19 services, or other coordinated business or 

20 technical support services designed to 

21 provide business development assistance 

22 to entrepreneurial businesses during 

23 these businesses’ startup phases.’’. 

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1 SEC. 513. PREFERENCE FOR ACID MINE DRAINAGE RE2 SEARCH. 

3 Section 9 of the Small Business Act (15 

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

5 amended by adding at the end the following: 

6 ‘‘(xx) ACID MINE DRAINAGE RESEARCH PREF7 ERENCE.—In making awards under this sec8 tion, a Federal agency shall give priority to 

9 applications in a manner that increases the 

10 number of SBIR and STTR award recipients 

11 conducting research related to reducing the 

12 environmental impact, including with respect 

13 to water quality, of acid mine drainage.’’. 

14 SEC. 514. PREFERENCE FOR HYDRAULIC FRACTURING RE15 SEARCH. 

16 Section 9 of the Small Business Act (15 

17 U.S.C. 638), as amended by this Act, is further 

18 amended by adding at the end the following: 

19 ‘‘(yy) HYDRAULIC FRACTURING RESEARCH

20 PREFERENCE.—In making awards under this 

21 section, a Federal agency shall give priority 

22 to applications in a manner that increases the 

23 number of SBIR and STTR award recipients 

24 conducting research related to reducing the 

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1 turing during natural gas exploration activi2 ties.’’. 

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Union Calendar No. 85 

112TH CONGRESS 

1ST SESSION H. R. 1425 

[Report No. 112–90, Parts I and II] 

A BILL 

To reauthorize and improve the SBIR and STTR 

programs, and for other purposes. 

JULY 1, 2011 

Reported from the Committee on Small Business with an 

amendment 

JULY 1, 2011 

Committee on Armed Services discharged; committed to 

Union and ordered to be printed the Committee of the Whole House on the State of the 

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