II 

Calendar No. 17 

112TH CONGRESS 

1ST SESSION S. 493 

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

purposes. 

IN THE SENATE OF THE UNITED STATES 

MARCH 4, 2011 

Ms. LANDRIEU (for herself, Ms. SNOWE, Mr. KERRY, Mr. BROWN of Massachusetts, Mrs. SHAHEEN, Ms. AYOTTE, Mr. CARDIN, Mr. PRYOR, and 

Mr. LEVIN) introduced the following bill; which was read twice and referred to the Committee on Small Business and Entrepreneurship 

MARCH 9, 2011 

Reported by Ms. LANDRIEU, with amendments 

[Omit the part struck through and insert the part printed in italic] 

A BILL 

To reauthorize and improve the SBIR and STTR programs, 

and for other purposes. 

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

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘SBIR/STTR Reau5 thorization Act of 2011’’. 

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1 SEC. 2. TABLE OF CONTENTS. 

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

Sec. 1. Short title. 

Sec. 2. Table of contents. 

Sec. 3. Definitions. 

TITLE I—REAUTHORIZATION OF THE SBIR AND STTR PROGRAMS 

Sec. 101. Extension of termination dates. 

Sec. 102. Status of the Office of Technology. 

Sec. 103. SBIR allocation increase. 

Sec. 104. STTR allocation increase. 

Sec. 105. SBIR and STTR award levels. 

Sec. 106. Agency and program flexibility. 

Sec. 107. Elimination of Phase II invitations. 

Sec. 108. Participation by firms with substantial investment from multiple venture capital operating companies in a portion of the SBIR program. 

Sec. 109. SBIR and STTR special acquisition preference. 

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

centers. 

Sec. 111. Notice requirement. 

Sec. 112. Express authority for an agency to award sequential Phase II awards 

for SBIR or STTR funded projects. 

TITLE II—OUTREACH AND COMMERCIALIZATION INITIATIVES 

Sec. 201. Rural and State outreach. 

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

Sec. 203202. Technical assistance for awardees. 

Sec. 204203. Commercialization Readiness Program at Department of Defense. 

Sec. 205204. Commercialization Readiness Pilot Program for civilian agencies. 

Sec. 206205. Accelerating cures. 

Sec. 207206. Federal agency engagement with SBIR and STTR awardees that 

have been awarded multiple Phase I awards but have not been 

awarded Phase II awards. 

Sec. 208207. Clarifying the definition of ‘‘Phase III’’. 

Sec. 209208. Shortened period for final decisions on proposals and applications. 

TITLE III—OVERSIGHT AND EVALUATION 

Sec. 301. Streamlining annual evaluation requirements. 

Sec. 302. Data collection from agencies for SBIR. 

Sec. 303. Data collection from agencies for STTR. 

Sec. 304. Public database. 

Sec. 305. Government database. 

Sec. 306. Accuracy in funding base calculations. 

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

Sec. 308. Technology insertion reporting requirements. 

Sec. 309. Intellectual property protections. 

Sec. 310. Obtaining consent from SBIR and STTR applicants to release contact information to economic development organizations. 

Sec. 311. Pilot to allow funding for administrative, oversight, and contract 

processing costs. 

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Sec. 312. GAO study with respect to venture capital operating company involvement. 

Sec. 313. Reducing vulnerability of SBIR and STTR programs to fraud, waste, 

and abuse. 

Sec. 314. Interagency policy committee. 

Sec. 315. Simplified paperwork requirements. 

TITLE IV—POLICY DIRECTIVES 

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

TITLE V—OTHER PROVISIONS 

Sec. 501. Research topics and program diversification. 

Sec. 502. Report on SBIR and STTR program goals. 

Sec. 503. Competitive selection procedures for SBIR and STTR programs. 

1 SEC. 3. DEFINITIONS. 

2 In this Act— 

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

5 and the Administrator thereof, respectively; 

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

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

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

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

13 meaning given that term under section 3 of the 

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

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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 ‘‘2019’’; 

10 and 

11 (3) by striking paragraph (2). 

12 (b) STTR.—Section 9(n)(1)(A) of the Small Busi13 ness 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

16 GENERAL.—With respect’’; 

17 (2) by striking ‘‘2009’’ and inserting ‘‘2019’’; 

18 and 

19 (3) by striking clause (ii). 

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

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

22 638(b)) is amended— 

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

24 end; 

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

2 the end and inserting ‘‘; and’’; 

3 (3) by redesignating paragraph (8) as para4 graph (9); and 

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

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

7 carry out the responsibilities of the Administration 

8 under this section, which shall be— 

9 ‘‘(A) headed by the Assistant Adminis10 trator for Technology, who shall report directly 

11 to the Administrator; and 

12 ‘‘(B) independent from the Office of Gov13 ernment Contracting of the Administration and 

14 sufficiently staffed and funded to comply with 

15 the oversight, reporting, and public database re16 sponsibilities assigned to the Office of Tech17 nology by the Administrator.’’. 

18 SEC. 103. SBIR ALLOCATION INCREASE. 

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

20 638(f)) is amended— 

21 (1) in paragraph (1)— 

22 (A) in the matter preceding subparagraph 

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

24 as provided in paragraph (2)(B), each’’; 

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

2 ‘‘and’’ at the end; and 

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

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

6 budget in fiscal year 2013; 

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

8 budget in fiscal year 2014; 

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

10 budget in fiscal year 2015; 

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

12 budget in fiscal year 2016; 

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

14 budget in fiscal year 2017; 

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

16 budget in fiscal year 2018; 

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

18 budget in fiscal year 2019; 

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

20 budget in fiscal year 2020; 

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

22 budget in fiscal year 2021; 

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

24 budget in fiscal year 2022; and 

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

2 budget in fiscal year 2023 and each fiscal year 

3 thereafter.’’; and 

4 (2) in paragraph (2)— 

5 (A) by redesignating subparagraphs (A) 

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

7 adjusting the margins accordingly; 

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

9 inserting the following: 

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

11 and 

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

13 ‘‘(B) DEPARTMENT OF DEFENSE AND DE14 PARTMENT OF ENERGY.—For the Department 

15 of Defense and the Department of Energy, to 

16 the greatest extent practicable, the percentage 

17 of the extramural budget in excess of 2.5 per18 cent required to be expended with small busi19 ness concerns under subparagraphs (D) 

20 through (M) of paragraph (1)— 

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

22 or Phase II awards; and 

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

24 further the readiness levels of technologies 

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1 ing conducting testing and evaluation to 

2 promote the transition of such technologies 

3 into commercial or defense products, or 

4 systems furthering the mission needs of 

5 the Department of Defense or the Depart6 ment of Energy, as the case may be.’’.; 

7 and 

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

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

10 subsection may be construed to prohibit a Federal 

11 agency from expending with small business concerns 

12 an amount of the extramural budget for research or 

13 research and development of the Federal agency that 

14 exceeds the amount required under paragraph (1).’’. 

15 SEC. 104. STTR ALLOCATION INCREASE. 

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

17 U.S.C. 638(n)(1)(B)) is amended— 

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

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

20 inserting ‘‘through fiscal year 2012;’’; and 

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

22 ‘‘(iii) 0.4 percent for fiscal years 2013 

23 and 2014; 

24 ‘‘(iv) 0.5 percent for fiscal years 2015 

25 and 2016; and 

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1 ‘‘(v) 0.6 percent for fiscal year 2017 

2 and each fiscal year thereafter.’’.; and 

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

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

5 subsection may be construed to prohibit a Federal 

6 agency from expending with small business concerns 

7 an amount of the extramural budget for research or 

8 research and development of the Federal agency that 

9 exceeds the amount required under paragraph (1).’’. 

10 SEC. 105. SBIR AND STTR AWARD LEVELS. 

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

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

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

15 ‘‘$150,000’’; and 

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

17 ‘‘$1,000,000’’. 

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

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

20 amended— 

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

22 ‘‘$150,000’’; and 

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

24 ‘‘$1,000,000’’. 

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

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

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

4 every 5 years to reflect economic adjustments and 

5 programmatic considerations’’ and inserting ‘‘every 

6 year for inflation’’; and 

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

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

9 which the Administrator shall adjust for inflation 

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

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

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

13 adding at the end the following: 

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

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

16 issue an award under the SBIR program or the 

17 STTR program if the size of the award exceeds the 

18 award guidelines established under this section by 

19 more than 50 percent. 

20 ‘‘(2) MAINTENANCE OF INFORMATION.—Par21 ticipating agencies shall maintain information on 

22 awards exceeding the guidelines established under 

23 this section, including— 

24 ‘‘(A) the amount of each award; 

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1 ‘‘(B) a justification for exceeding the 

2 award amount; 

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

4 award recipient; and 

5 ‘‘(D) whether an award recipient has re6 ceived any venture capital investment and, if so, 

7 whether the recipient is majority-owned by mul8 tiple venture capital operating companies. 

9 ‘‘(3) REPORTS.—The Administrator shall in10 clude the information described in paragraph (2) in 

11 the annual report of the Administrator to Congress. 

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

13 this subsection shall be construed to prevent a Fed14 eral agency from supplementing an award under the 

15 SBIR program or the STTR program using funds of 

16 the Federal agency that are not part of the SBIR 

17 program or the STTR program of the Federal agen18 cy.’’. 

19 SEC. 106. AGENCY AND PROGRAM FLEXIBILITY. 

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

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

22 the following: 

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

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

25 concern that received an award from a Federal 

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1 agency under this section shall be eligible to receive 

2 a subsequent Phase II award from another Federal 

3 agency, if the head of each relevant Federal agency 

4 or the relevant component of the Federal agency 

5 makes a written determination that the topics of the 

6 relevant awards are the same and both agencies re7 port the awards to the Administrator for inclusion in 

8 the public database under subsection (k). 

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

10 A small business concern that received an award 

11 under this section under the SBIR program or the 

12 STTR program may receive a subsequent Phase II 

13 award in either the SBIR program or the STTR 

14 program and the participating agency or agencies 

15 shall report the awards to the Administrator for in16 clusion in the public database under subsection (k). 

17 ‘‘(3) PREVENTING DUPLICATIVE AWARDS.—Be18 fore making an award under paragraph (1) or (2), 

19 the head of a Federal agency shall verify that the 

20 project to be performed with the award has not been 

21 funded under the SBIR program or STTR program 

22 of another Federal agency.’’. 

23 SEC. 107. ELIMINATION OF PHASE II INVITATIONS. 

24 (a) IN GENERAL.—Section 9(e) of the Small Busi25 ness Act (15 U.S.C. 638(e)) is amended— 

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1 (1) in paragraph (4)(B), by striking ‘‘to fur2 ther’’ and inserting: ‘‘which shall not include any in3 vitation, pre-screening, pre-selection, or down-selec4 tion process for eligibility for the second phase, that 

5 will further’’; and 

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

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

8 shall not include any invitation, pre-screening, pre9 selection, or down-selection process for eligibility for 

10 the second phase, that will further develop proposals 

11 that’’. 

12 SEC. 108. PARTICIPATION BY FIRMS WITH SUBSTANTIAL IN13 VESTMENT FROM MULTIPLE VENTURE CAP14 ITAL OPERATING COMPANIES IN A PORTION 

15 OF THE SBIR PROGRAM. 

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

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

18 by adding at the end the following: 

19 ‘‘(cc) PARTICIPATION OF SMALL BUSINESS CON20 CERNS MAJORITY-OWNED BY VENTURE CAPITAL OPER21 ATING COMPANIES IN THE SBIR PROGRAM.— 

22 ‘‘(1) AUTHORITY.—Upon a written determina23 tion described in paragraph (2) provided to the Ad24 ministrator and to the Committee on Small Business 

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1 mittee on Small Business of the House of Rep2 resentatives not later than 30 days before the date 

3 on which an award is made— 

4 ‘‘(A) the Director of the National Insti5 tutes of Health, the Secretary of Energy, and 

6 the Director of the National Science Founda7 tion may award not more than 25 percent of 

8 the funds allocated for the SBIR program of 

9 the Federal agency to small business concerns 

10 that are owned in majority part by multiple 

11 venture capital operating companies through 

12 competitive, merit-based procedures that are 

13 open to all eligible small business concerns; and 

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

15 than a Federal agency described in subpara16 graph (A) that participates in the SBIR pro17 gram may award not more than 15 percent of 

18 the funds allocated for the SBIR program of 

19 the Federal agency to small business concerns 

20 that are owned in majority part by multiple 

21 venture capital operating companies through 

22 competitive, merit-based procedures that are 

23 open to all eligible small business concerns. 

24 ‘‘(2) DETERMINATION.—A written determina25 tion described in this paragraph is a written determstockstill on DSKH9S0YB1PROD with BILLS

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1 mination by the head of a Federal agency that ex2 plains how the use of the authority under paragraph 

3 (1) will— 

4 ‘‘(A) induce additional venture capital 

5 funding of small business innovations; 

6 ‘‘(B) substantially contribute to the mis7 sion of the Federal agency; 

8 ‘‘(C) demonstrate a need for public re9 search; 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 and qualified for participation 

16 in the program authorized under paragraph (1) 

17 shall— 

18 ‘‘(A) register with the Administrator on 

19 the date that the small business concern sub20 mits an application for an award under the 

21 SBIR program; and 

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

23 the small business concern is registered under 

24 subparagraph (A) as majority-owned by mul25 tiple venture capital operating companies. 

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1 ‘‘(4) COMPLIANCE.— 

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

3 agency that makes an award under this sub4 section during a fiscal year shall collect and 

5 submit to the Administrator data relating to 

6 the number and dollar amount of Phase I 

7 awards, Phase II awards, and any other cat8 egory of awards by the Federal agency under 

9 the SBIR program during that fiscal year. 

10 ‘‘(B) ANNUAL REPORTING.—The Adminis11 trator shall include as part of each annual re12 port by the Administration under subsection 

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

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

15 Federal agency that makes an award under this 

16 subsection during the fiscal year with the max17 imum percentages under paragraph (1). 

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

19 awards more than the percent of the funds allocated 

20 for the SBIR program of the Federal agency author21 ized under paragraph (1) for a purpose described in 

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

23 transfer an amount equal to the amount awarded in 

24 excess of the amount authorized under paragraph 

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

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1 the non-SBIR and non-STTR research and develop2 ment funds of the Federal agency not later than 180 

3 days after the date on which the Federal agency 

4 made the award that caused the total awarded under 

5 paragraph (1) to be more than the amount author6 ized under paragraph (1) for a purpose described in 

7 paragraph (1). 

8 ‘‘(6) FINAL DECISIONS ON APPLICATIONS UNDER

9 THE SBIR PROGRAM.— 

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

11 term ‘covered small business concern’ means a 

12 small business concern that— 

13 ‘‘(i) was not majority-owned by mul14 tiple venture capital operating companies 

15 on the date on which the small business con16 cern submitted an application in response 

17 to a solicitation under the SBIR programs; 

18 and 

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

20 the SBIR program is majority-owned by 

21 multiple venture capital operating compa22 nies. 

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

24 does not make an award under a solicitation 

25 under the SBIR program before the date that is 

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1 9 months after the date on which the period for 

2 submitting applications under the solicitation 

3 ends— 

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

5 eligible to receive the award, without regard 

6 to whether the covered small business con7 cern meets the requirements for receiving an 

8 award under the SBIR program for a small 

9 business concern that is majority-owned by 

10 multiple venture capital operating compa11 nies, if the covered small business concern 

12 meets all other requirements for such an 

13 award; and 

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

15 shall transfer an amount equal to any 

16 amount awarded to a covered small business 

17 concern under the solicitation to the funds 

18 for general SBIR programs from the non19 SBIR and non-STTR research and develop20 ment funds of the Federal agency, not later 

21 than 90 days after the date on which the 

22 Federal agency makes the award. 

23 ‘‘(6)(7) EVALUATION CRITERIA.—A Federal 

24 agency may not use investment of venture capital as 

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1 a criterion for the award of contracts under the 

2 SBIR program or STTR program. 

3 (b) TECHNICAL AND CONFORMING AMENDMENT.— 

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

5 amended by adding at the end the following: 

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

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

8 means an entity described in clause (i), (v), or (vi) of sec9 tion 121.103(b)(5) of title 13, Code of Federal Regula10 tions (or any successor thereto).’’. 

11 (c) RULEMAKING TO ENSURE THAT FIRMS THAT

12 ARE MAJORITY-OWNED BY MULTIPLE VENTURE CAPITAL

13 OPERATING COMPANIES ARE ABLE TO PARTICIPATE IN

14 A PORTION OF THE SBIR PROGRAM.— 

15 (1) STATEMENT OF CONGRESSIONAL INTENT.— 

16 It is the stated intent of Congress that the Adminis17 trator should promulgate regulations to carry out 

18 the authority under section 9(cc) of the Small Busi19 ness Act, as added by this section, that— 

20 (A) permit small business concerns that 

21 are majority-owned by multiple venture capital 

22 operating companies to participate in the SBIR 

23 program in accordance with section 9(cc) of the 

24 Small Business Act; 

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1 (B) provide specific guidance for small 

2 business concerns that are majority-owned by 

3 multiple venture capital operating companies 

4 with regard to eligibility, participation, and af5 filiation rules; and 

6 (C) preserve and maintain the integrity of 

7 the SBIR program as a program for small busi8 ness concerns in the United States, prohibiting 

9 large businesses or large entities or foreign10 owned businesses or entities from participation 

11 in the program established under section 9 of 

12 the Small Business Act. 

13 (2) RULEMAKING REQUIRED.— 

14 (A) PROPOSED REGULATIONS.—Not later 

15 than 4 months after the date of enactment of 

16 this Act, the Administrator shall issue proposed 

17 regulations to amend section 121.103 (relating 

18 to determinations of affiliation applicable to the 

19 SBIR program) and section 121.702 (relating 

20 to ownership and control standards and size 

21 standards applicable to the SBIR program) of 

22 title 13, Code of Federal Regulations, for firms 

23 that are majority-owned by multiple venture 

24 capital operating companies and participating 

25 in the SBIR program solely under the authority 

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1 under section 9(cc) of the Small Business Act, 

2 as added by this section. 

3 (B) FINAL REGULATIONS.—Not later than 

4 1 year after the date of enactment of this Act, 

5 and after providing notice of and opportunity 

6 for comment on the proposed regulations issued 

7 under subparagraph (A), the Administrator 

8 shall issue final or interim final regulations 

9 under this subsection. 

10 (3) CONTENTS.— 

11 (A) IN GENERAL.—The regulations issued 

12 under this subsection shall permit the participa13 tion of applicants majority-owned by multiple 

14 venture capital operating companies in the 

15 SBIR program in accordance with section 9(cc) 

16 of the Small Business Act, as added by this sec17 tion, unless the Administrator determines— 

18 (i) in accordance with the size stand19 ards established under subparagraph (B), 

20 that the applicant is— 

21 (I) a large business or large enti22 ty; or 

23 (II) majority-owned or controlled 

24 by a large business or large entity; or 

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1 (ii) in accordance with the criteria es2 tablished under subparagraph (C), that the 

3 applicant— 

4 (I) is a foreign business or a for5 eign entity or is not a citizen of the 

6 United States or alien lawfully admit7 ted for permanent residence; or 

8 (II) is majority-owned or con9 trolled by a foreign business, foreign 

10 entity, or person who is not a citizen 

11 of the United States or alien lawfully 

12 admitted for permanent residence. 

13 (B) SIZE STANDARDS.—Under the author14 ity to establish size standards under paragraphs 

15 (2) and (3) of section 3(a) of the Small Busi16 ness Act (15 U.S.C. 632(a)), the Administrator 

17 shall, in accordance with paragraph (1) of this 

18 subsection, establish size standards for appli19 cants seeking to participate in the SBIR pro20 gram solely under the authority under section 

21 9(cc) of the Small Business Act, as added by 

22 this section. 

23 (C) CRITERIA FOR DETERMINING FOREIGN

24 OWNERSHIP.—The Administrator shall establish 

25 criteria for determining whether an applicant 

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1 meets the requirements under subparagraph 

2 (A)(ii), and, in establishing the criteria, shall 

3 consider whether the criteria should include— 

4 (i) whether the applicant is at least 51 

5 percent owned or controlled by citizens of 

6 the United States or domestic venture cap7 ital operating companies; 

8 (ii) whether the applicant is domiciled 

9 in the United States; and 

10 (iii) whether the applicant is a direct 

11 or indirect subsidiary of a foreign-owned 

12 firm, including whether the criteria should 

13 include that an applicant is a direct or in14 direct subsidiary of a foreign-owned entity 

15 if— 

16 (I) any venture capital operating 

17 company that owns more than 20 per18 cent of the applicant is a direct or in19 direct subsidiary of a foreign-owned 

20 entity; or 

21 (II) in the aggregate, entities 

22 that are direct or indirect subsidiaries 

23 of foreign-owned entities own more 

24 than 49 percent of the applicant. 

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1 (D) CRITERIA FOR DETERMINING AFFILI2 ATION.—The Administrator shall establish cri3 teria, in accordance with paragraph (1), for de4 termining whether an applicant is affiliated 

5 with a venture capital operating company or 

6 any other business that the venture capital op7 erating company has financed and, in estab8 lishing the criteria, shall specify that— 

9 (i) if a venture capital operating com10 pany that is determined to be affiliated 

11 with an applicant is a minority investor in 

12 the applicant, the portfolio companies of 

13 the venture capital operating company 

14 shall not be determined to be affiliated 

15 with the applicant, unless— 

16 (I) the venture capital operating 

17 company owns a majority of the port18 folio company; or 

19 (II) the venture capital operating 

20 company holds a majority of the seats 

21 on the board of directors of the port22 folio company; 

23 (ii) subject to clause (i), the Adminis24 trator retains the authority to determine 

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1 pany is affiliated with an applicant, includ2 ing establishing other criteria; 

3 (iii) the Administrator may not deter4 mine that a portfolio company of a venture 

5 capital operating company is affiliated with 

6 an applicant based solely on one or more 

7 shared investors; and 

8 (iv) subject to clauses (i), (ii), and 

9 (iii), the Administrator retains the author10 ity to determine whether a portfolio com11 pany of a venture capital operating com12 pany is affiliated with an applicant based 

13 on factors independent of whether there is 

14 a shared investor, such as whether there 

15 are contractual obligations between the 

16 portfolio company and the applicant. 

17 (4) ENFORCEMENT.—If the Administrator does 

18 not issue final or interim final regulations under this 

19 subsection on or before the date that is 1 year after 

20 the date of enactment of this Act, the Administrator 

21 may not carry out any activities under section 4(h) 

22 of the Small Business Act (15 U.S.C. 633(h)) (as 

23 continued in effect pursuant to the Act entitled ‘‘An 

24 Act to extend temporarily certain authorities of the 

25 Small Business Administration’’, approved October 

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1 10, 2006 (Public Law 109–316; 120 Stat. 1742)) 

2 during the period beginning on the date that is 1 

3 year and 1 day after the date of enactment of this 

4 Act, and ending on the date on which the final or 

5 interim final regulations are issued. 

6 (5) DEFINITION.—In this subsection, the term 

7 ‘‘venture capital operating company’’ has the same 

8 meaning as in section 3(aa) of the Small Business 

9 Act, as added by this section. 

10 (d) ASSISTANCE FOR DETERMINING AFFILIATES.— 

11 (1) CLEAR EXPLANATION REQUIRED.—Not 

12 later than 30 days after the date of enactment of 

13 this Act, the Administrator shall post on the Web 

14 site of the Administration (with a direct link dis15 played on the homepage of the Web site of the Ad16 ministration or the SBIR and STTR Web sites of 

17 the Administration)— 

18 (A) a clear explanation of the SBIR and 

19 STTR affiliation rules under part 121 of title 

20 13, Code of Federal Regulations; and 

21 (B) contact information for officers or em22 ployees of the Administration who— 

23 (i) upon request, shall review an issue 

24 relating to the rules described in subpara25 graph (A); and 

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1 (ii) shall respond to a request under 

2 clause (i) not later than 20 business days 

3 after the date on which the request is re4 ceived. 

5 (2) INCLUSION OF AFFILIATION RULES FOR

6 CERTAIN SMALL BUSINESS CONCERNS.—On and 

7 after the date on which the final regulations under 

8 subsection (c) are issued, the Administrator shall 

9 post on the Web site of the Administration informa10 tion relating to the regulations, in accordance with 

11 paragraph (1). 

12 SEC. 109. SBIR AND STTR SPECIAL ACQUISITION PREF13 ERENCE. 

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

15 638(r)) is amended by adding at the end the following: 

16 ‘‘(4) PHASE III AWARDS.—To the greatest ex17 tent practicable, Federal agencies and Federal prime 

18 contractors shall issue Phase III awards relating to 

19 technology, including sole source awards, to the 

20 SBIR and STTR award recipients that developed 

21 the technology.’’. 

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1 SEC. 110. COLLABORATING WITH FEDERAL LABORATORIES 

2 AND RESEARCH AND DEVELOPMENT CEN3 TERS. 

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

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

6 the following: 

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

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

12 awards to any eligible small business concern that— 

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

14 with a Federal laboratory or federally funded 

15 research and development center for portions of 

16 the activities to be performed under that award; 

17 or 

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

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

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

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

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

25 upon entering into agreement with any Federal 

26 laboratory or any federally funded laboratory or 

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

3 award; 

4 ‘‘(B) approve an agreement between a 

5 small business concern receiving a SBIR or 

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

10 performed under that award than required by 

11 this section and by the SBIR Policy Directive 

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

14 ‘‘(C) approve an agreement that violates 

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

17 the STTR Policy Directives. 

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

19 days after the date of enactment of this subsection, 

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

22 this section to ensure that small business concerns— 

23 ‘‘(A) have the flexibility to use the re24 sources of the Federal laboratories and federmstockstill on DSKH9S0YB1PROD with BILLS

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1 ally funded research and development centers; 

2 and 

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

7 SEC. 111. NOTICE REQUIREMENT. 

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

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

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

11 end; 

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

13 the end and inserting a semicolon; and 

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

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

17 judicial or administrative tribunal concerning the 

18 SBIR program of the Federal agency; and’’. 

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

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

21 (1) by striking paragraph (15); 

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

23 the end and inserting ‘‘; and’’; 

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

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

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

4 judicial or administrative tribunal concerning the 

5 STTR program of the Federal agency.’’. 

6 SEC. 112. EXPRESS AUTHORITY FOR AN AGENCY TO AWARD 

7 SEQUENTIAL PHASE II AWARDS FOR SBIR OR 

8 STTR FUNDED PROJECTS. 

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

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

11 the following: 

12 ‘‘(ee) ADDITIONAL PHASE II SBIR AND STTR 

13 AWARDS.—A small business concern that receives a Phase 

14 II SBIR award or a Phase II STTR award for a project 

15 remains eligible to receive an additional Phase II SBIR 

16 award or Phase II STTR award for that project.’’. 

17 TITLE II—OUTREACH AND COM18 MERCIALIZATION INITIA19 TIVES 

20 SEC. 201. RURAL AND STATE OUTREACH. 

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

22 Act (15 U.S.C. 638) is amended by inserting after sub23 section (r) the following: 

24 ‘‘(s) FEDERAL AND STATE TECHNOLOGY PARTNER25 SHIP PROGRAM.— 

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1 ‘‘(1) DEFINITIONS.—In this subsection, the fol2 lowing definitions apply: 

3 ‘‘(A) APPLICANT.—The term ‘applicant’ 

4 means an entity, organization, or individual 

5 that submits a proposal for an award or a coop6 erative agreement under this subsection. 

7 ‘‘(B) FAST PROGRAM.—The term ‘FAST 

8 program’ means the Federal and State Tech9 nology Partnership Program established under 

10 this subsection. 

11 ‘‘(C) RECIPIENT.—The term ‘recipient’ 

12 means a person that receives an award or be13 comes party to a cooperative agreement under 

14 this subsection. 

15 ‘‘(D) STATE.—The term ‘State’ means 

16 each of the several States, the District of Co17 lumbia, the Commonwealth of Puerto Rico, the 

18 Virgin Islands, Guam, and American Samoa. 

19 ‘‘(E) DEFINITIONS RELATING TO MEN20 TORING NETWORKS.—The terms ‘business ad21 vice and counseling’, ‘mentor’, and ‘mentoring 

22 network’ have the meanings given those terms 

23 in section 34(e). 

24 ‘‘(2) ESTABLISHMENT OF PROGRAM.—The Ad25 ministrator shall establish a program to be known as 

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1 the Federal and State Technology Partnership Pro2 gram, the purpose of which shall be to strengthen 

3 the technological competitiveness of small business 

4 concerns in the States. 

5 ‘‘(3) GRANTS AND COOPERATIVE AGREE6 MENTS.— 

7 ‘‘(A) JOINT REVIEW.—In carrying out the 

8 FAST program, the Administrator and the pro9 gram managers for the SBIR program and 

10 STTR program at the National Science Foun11 dation, the Department of Defense, and any 

12 other Federal agency determined appropriate by 

13 the Administrator shall jointly review proposals 

14 submitted by applicants and may make awards 

15 or enter into cooperative agreements under this 

16 subsection based on the factors for consider17 ation set forth in subparagraph (B), in order to 

18 enhance or develop in a State— 

19 ‘‘(i) technology research and develop20 ment by small business concerns; 

21 ‘‘(ii) technology transfer from univer22 sity research to technology-based small 

23 business concerns; 

24 ‘‘(iii) technology deployment and dif25 fusion benefitting small business concerns; 

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1 ‘‘(iv) the technological capabilities of 

2 small business concerns through the estab3 lishment or operation of consortia com4 prised of entities, organizations, or individ5 uals, including— 

6 ‘‘(I) State and local development 

7 agencies and entities; 

8 ‘‘(II) representatives of tech9 nology-based small business concerns; 

10 ‘‘(III) industries and emerging 

11 companies; 

12 ‘‘(IV) universities; and 

13 ‘‘(V) small business development 

14 centers; and 

15 ‘‘(v) outreach, financial support, and 

16 technical assistance to technology-based 

17 small business concerns participating in or 

18 interested in participating in an SBIR pro19 gram or STTR program, including initia20 tives— 

21 ‘‘(I) to make grants or loans to 

22 companies to pay a portion or all of 

23 the cost of developing SBIR or STTR 

24 proposals; 

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1 ‘‘(II) to establish or operate a 

2 Mentoring Network within the FAST 

3 program to provide business advice 

4 and counseling that will assist small 

5 business concerns that have been 

6 identified by FAST program partici7 pants, program managers of partici8 pating SBIR agencies, the Adminis9 tration, or other entities that are 

10 knowledgeable about the SBIR and 

11 STTR programs as good candidates 

12 for the SBIR and STTR programs, 

13 and that would benefit from men14 toring, in accordance with section 34; 

15 ‘‘(III) to create or participate in 

16 a training program for individuals 

17 providing SBIR or STTR outreach 

18 and assistance at the State and local 

19 levels; and 

20 ‘‘(IV) to encourage the commer21 cialization of technology developed 

22 through funding under the SBIR pro23 gram or the STTR program. 

24 ‘‘(B) SELECTION CONSIDERATIONS.—In 

25 making awards or entering into cooperative 

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1 agreements under this subsection, the Adminis2 trator and the program managers referred to in 

3 subparagraph (A)— 

4 ‘‘(i) may only consider proposals by 

5 applicants that intend to use a portion of 

6 the Federal assistance provided under this 

7 subsection to provide outreach, financial 

8 support, or technical assistance to tech9 nology-based small business concerns par10 ticipating in or interested in participating 

11 in the SBIR program or STTR program; 

12 and 

13 ‘‘(ii) shall consider, at a minimum— 

14 ‘‘(I) whether the applicant has 

15 demonstrated that the assistance to 

16 be provided would address unmet 

17 needs of small business concerns in 

18 the community, and whether it is im19 portant to use Federal funding for the 

20 proposed activities; 

21 ‘‘(II) whether the applicant has 

22 demonstrated that a need exists to in23 crease the number or success of small 

24 high-technology businesses in the 

25 State or an area of the State, as 

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1 measured by the number of Phase I 

2 and Phase II SBIR awards that have 

3 historically been received by small 

4 business concerns in the State or area 

5 of the State; 

6 ‘‘(III) whether the projected costs 

7 of the proposed activities are reason8 able; 

9 ‘‘(IV) whether the proposal inte10 grates and coordinates the proposed 

11 activities with other State and local 

12 programs assisting small high-tech13 nology firms in the State; 

14 ‘‘(V) the manner in which the ap15 plicant will measure the results of the 

16 activities to be conducted; and 

17 ‘‘(VI) whether the proposal ad18 dresses the needs of small business 

19 concerns— 

20 ‘‘(aa) owned and controlled 

21 by women; 

22 ‘‘(bb) that are socially and 

23 economically disadvantaged small 

24 business concerns (as defined in 

25 section 8(a)(4)(A)); 

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1 ‘‘(cc) that are HUBZone 

2 small business concerns; 

3 ‘‘(dd) located in areas that 

4 have historically not participated 

5 in the SBIR and STTR pro6 grams; 

7 ‘‘(ee) owned and controlled 

8 by service-disabled veterans; 

9 ‘‘(ff) owned and controlled 

10 by Native Americans; and 

11 ‘‘(gg) located in geographic 

12 areas with an unemployment rate 

13 that exceeds the national unem14 ployment rate, based on the most 

15 recently available monthly publi16 cations of the Bureau of Labor 

17 Statistics of the Department of 

18 Labor. 

19 ‘‘(C) PROPOSAL LIMIT.—Not more than 1 

20 proposal may be submitted for inclusion in the 

21 FAST program under this subsection to provide 

22 services in any one State in any 1 fiscal year. 

23 ‘‘(D) PROCESS.—Proposals and applica24 tions for assistance under this subsection shall 

25 be in such form and subject to such procedures 

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1 as the Administrator shall establish. The Ad2 ministrator shall promulgate regulations estab3 lishing standards for the consideration of pro4 posals under subparagraph (B), including 

5 standards regarding each of the considerations 

6 identified in subparagraph (B)(ii). 

7 ‘‘(4) COOPERATION AND COORDINATION.—In 

8 carrying out the FAST program, the Administrator 

9 shall cooperate and coordinate with— 

10 ‘‘(A) Federal agencies required by this sec11 tion to have an SBIR program; and 

12 ‘‘(B) entities, organizations, and individ13 uals actively engaged in enhancing or devel14 oping the technological capabilities of small 

15 business concerns, including— 

16 ‘‘(i) State and local development agen17 cies and entities; 

18 ‘‘(ii) State committees established 

19 under the Experimental Program to Stim20 ulate Competitive Research of the National 

21 Science Foundation (as established under 

22 section 113 of the National Science Foun23 dation Authorization Act of 1988 (42 

24 U.S.C. 1862g)); 

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1 ‘‘(iii) State science and technology 

2 councils; and 

3 ‘‘(iv) representatives of technology4 based small business concerns. 

5 ‘‘(5) ADMINISTRATIVE REQUIREMENTS.— 

6 ‘‘(A) COMPETITIVE BASIS.—Awards and 

7 cooperative agreements under this subsection 

8 shall be made or entered into, as applicable, on 

9 a competitive basis. 

10 ‘‘(B) MATCHING REQUIREMENTS.— 

11 ‘‘(i) IN GENERAL.—The non-Federal 

12 share of the cost of an activity (other than 

13 a planning activity) carried out using an 

14 award or under a cooperative agreement 

15 under this subsection shall be— 

16 ‘‘(I) except as provided in clause 

17 (iii), 35 cents for each Federal dollar, 

18 in the case of a recipient that will 

19 serve small business concerns located 

20 in 1 of the 18 States receiving the 

21 fewest Phase I SBIR awards; 

22 ‘‘(II) except as provided in clause 

23 (ii) or (iii), 1 dollar for each Federal 

24 dollar, in the case of a recipient that 

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1 cated in 1 of the 16 States receiving 

2 the greatest number of Phase I SBIR 

3 awards; and 

4 ‘‘(III) except as provided in 

5 clause (ii) or (iii), 50 cents for each 

6 Federal dollar, in the case of a recipi7 ent that will serve small business con8 cerns located in a State that is not de9 scribed in subclause (I) or (II) that is 

10 receiving Phase I SBIR awards. 

11 ‘‘(ii) LOW-INCOME AREAS.—The non12 Federal share of the cost of the activity 

13 carried out using an award or under a co14 operative agreement under this subsection 

15 shall be 35 cents for each Federal dollar 

16 that will be directly allocated by a recipient 

17 described in clause (i) to serve small busi18 ness concerns located in a qualified census 

19 tract, as that term is defined in section 

20 42(d)(5)(B)(ii)(I) of the Internal Revenue 

21 Code of 1986. Federal dollars not so allo22 cated by that recipient shall be subject to 

23 the matching requirements of clause (i). 

24 ‘‘(iii) RURAL AREAS.— 

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1 ‘‘(I) IN GENERAL.—Except as 

2 provided in subclause (II), the non3 Federal share of the cost of the activ4 ity carried out using an award or 

5 under a cooperative agreement under 

6 this subsection shall be 35 cents for 

7 each Federal dollar that will be di8 rectly allocated by a recipient de9 scribed in clause (i) to serve small 

10 business concerns located in a rural 

11 area. 

12 ‘‘(II) ENHANCED RURAL

13 AWARDS.—For a recipient located in a 

14 rural area that is located in a State 

15 described in clause (i)(I), the non16 Federal share of the cost of the activ17 ity carried out using an award or 

18 under a cooperative agreement under 

19 this subsection shall be 15 cents for 

20 each Federal dollar that will be di21 rectly allocated by a recipient de22 scribed in clause (i) to serve small 

23 business concerns located in the rural 

24 area. 

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1 ‘‘(III) DEFINITION OF RURAL

2 AREA.—In this clause, the term ‘rural 

3 area’ has the meaning given that term 

4 in section 1393(a)(2) of the Internal 

5 Revenue Code of 1986. 

6 ‘‘(iv) TYPES OF FUNDING.—The non7 Federal share of the cost of an activity 

8 carried out by a recipient shall be com9 prised of not less than 50 percent cash and 

10 not more than 50 percent of indirect costs 

11 and in-kind contributions, except that no 

12 such costs or contributions may be derived 

13 from funds from any other Federal pro14 gram. 

15 ‘‘(v) RANKINGS.—For the first full 

16 fiscal year after the date of enactment of 

17 the SBIR/STTR Reauthorization Act of 

18 2011, and each fiscal year thereafter, 

19 based on the statistics for the most recent 

20 full fiscal year for which the Administrator 

21 has compiled statistics, the Administrator 

22 shall reevaluate the ranking of each State 

23 for purposes of clause (i). 

24 ‘‘(C) DURATION.—Awards may be made or 

25 cooperative agreements entered into under this 

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1 subsection for multiple years, not to exceed 5 

2 years in total. 

3 ‘‘(6) ANNUAL REPORTS.—The Administrator 

4 shall submit an annual report to the Committee on 

5 Small Business of the Senate and the Committee on 

6 Science and the Committee on Small Business of the 

7 House of Representatives regarding— 

8 ‘‘(A) the number and amount of awards 

9 provided and cooperative agreements entered 

10 into under the FAST program during the pre11 ceding year; 

12 ‘‘(B) a list of recipients under this sub13 section, including their location and the activi14 ties being performed with the awards made or 

15 under the cooperative agreements entered into; 

16 and 

17 ‘‘(C) the Mentoring Networks and the 

18 mentoring database, as provided for under sec19 tion 34, including— 

20 ‘‘(i) the status of the inclusion of 

21 mentoring information in the database re22 quired by subsection (k); and 

23 ‘‘(ii) the status of the implementation 

24 and description of the usage of the Men25 toring Networks. 

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1 ‘‘(7) PROGRAM LEVELS.— 

2 ‘‘(A) IN GENERAL.—There is authorized to 

3 be appropriated to carry out the FAST pro4 gram, including Mentoring Networks, under 

5 this subsection and section 34, $15,000,000 for 

6 each of fiscal years 2011 through 2016. 

7 ‘‘(B) MENTORING DATABASE.—Of the 

8 total amount made available under subpara9 graph (A) for fiscal years 2011 through 2016, 

10 a reasonable amount, not to exceed a total of 

11 $500,000, may be used by the Administration 

12 to carry out section 34(d). 

13 ‘‘(8) TERMINATION.—The authority to carry 

14 out the FAST program under this subsection shall 

15 terminate on September 30, 2016.’’. 

16 (b) TECHNICAL AND CONFORMING AMENDMENTS.— 

17 The Small Business Act (15 U.S.C. 631 et seq.) is amend18 ed— 

19 (1) by striking section 34 (15 U.S.C. 657d); 

20 (2) by redesignating sections 35 through 43 as 

21 sections 34 through 42, respectively; 

22 (3) in section 9(k)(1)(D) (15 U.S.C. 

23 638(k)(1)(D)), by striking ‘‘section 35(d)’’ and in24 serting ‘‘section 34(d)’’; 

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1 (4) in section 34 (15 U.S.C. 657e), as so redes2 ignated— 

3 (A) in subsection (c)(1), by striking ‘‘sec4 tion 34(c)(1)(E)(ii)’’ and inserting ‘‘section 

5 9(s)(3)(A)(v)(II)’’; 

6 (B) by striking ‘‘section 34’’ each place it 

7 appears and inserting ‘‘section 9(s)’’; and 

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

9 ‘‘(e) DEFINITIONS.—In this section, the following 

10 definitions apply: 

11 ‘‘(1) BUSINESS ADVICE AND COUNSELING.— 

12 The term ‘business advice and counseling’ means 

13 providing advice and assistance on matters described 

14 in subsection (c)(2)(B) to small business concerns to 

15 guide them through the SBIR and STTR program 

16 process, from application to award and successful 

17 completion of each phase of the program. 

18 ‘‘(2) FAST PROGRAM.—The term ‘FAST pro19 gram’ means the Federal and State Technology 

20 Partnership Program established under section 9(s). 

21 ‘‘(3) MENTOR.—The term ‘mentor’ means an 

22 individual described in subsection (c)(2). 

23 ‘‘(4) MENTORING NETWORK.—The term ‘Men24 toring Network’ means an association, organization, 

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1 coalition, or other entity (including an individual) 

2 that meets the requirements of subsection (c). 

3 ‘‘(5) RECIPIENT.—The term ‘recipient’ means a 

4 person that receives an award or becomes party to 

5 a cooperative agreement under this section. 

6 ‘‘(6) SBIR PROGRAM.—The term ‘SBIR pro7 gram’ has the same meaning as in section 9(e)(4). 

8 ‘‘(7) STATE.—The term ‘State’ means each of 

9 the several States, the District of Columbia, the 

10 Commonwealth of Puerto Rico, the Virgin Islands, 

11 Guam, and American Samoa. 

12 ‘‘(8) STTR PROGRAM.—The term ‘STTR pro13 gram’ has the same meaning as in section 9(e)(6).’’; 

14 (5) in section 36(d) (15 U.S.C. 657i(d)), as so 

15 redesignated, by striking ‘‘section 43’’ and inserting 

16 ‘‘section 42’’; 

17 (6) in section 39(d) (15 U.S.C. 657l(d)), as so 

18 redesignated, by striking ‘‘section 43’’ and inserting 

19 ‘‘section 42’’; and 

20 (7) in section 40(b) (15 U.S.C. 657m(b)), as so 

21 redesignated, by striking ‘‘section 43’’ and inserting 

22 ‘‘section 42’’. 

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1 SEC. 202. SBIR–STEM WORKFORCE DEVELOPMENT GRANT 

2 PILOT PROGRAM. 

3 (a) PILOT PROGRAM ESTABLISHED.—From amounts 

4 made available to carry out this section, the Administrator 

5 shall establish a SBIR–STEM Workforce Development 

6 Grant Pilot Program to encourage the business commu7 nity to provide workforce development opportunities for 

8 college students, in the fields of science, technology, engi9 neering, and math (in this section referred to as ‘‘STEM 

10 college students’’), particularly those that are socially and 

11 economically disadvantaged individuals, from rural areas, 

12 or from areas with high unemployment, as determined by 

13 the Administrator, by providing a SBIR bonus grant. 

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

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

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

17 grant under subsection (a) that provides an internship 

18 program for STEM college students. 

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

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

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

22 not more than $10,000 per year. 

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

24 funding under this section, the Administrator shall submit 

25 to Congress as part of the report under section 9(b)(7) 

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1 sults of the SBIR–STEM Workforce Development Grant 

2 Pilot Program. 

3 (e) AUTHORIZATION OF APPROPRIATIONS.—There 

4 are authorized to be appropriated to carry out this sec5 tion— 

6 (1) $1,000,000 for fiscal year 2012; 

7 (2) $1,000,000 for fiscal year 2013; 

8 (3) $1,000,000 for fiscal year 2014; 

9 (4) $1,000,000 for fiscal year 2015; and 

10 (5) $1,000,000 for fiscal year 2016. 

11 SEC. 203202. TECHNICAL ASSISTANCE FOR AWARDEES. 

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

13 638(q)) is amended— 

14 (1) in paragraph (1)— 

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

16 ‘‘SBIR program’’; and 

17 (B) by striking ‘‘SBIR projects’’ and in18 serting ‘‘SBIR or STTR projects’’; 

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

20 inserting ‘‘5 years’’; and 

21 (3) in paragraph (3)— 

22 (A) in subparagraph (A)— 

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

24 ‘‘SBIR’’; and 

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1 (ii) by striking ‘‘$4,000’’ and insert2 ing ‘‘$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 

8 Phase II SBIR or STTR award, through a 

9 vendor selected under paragraph (2), the 

10 services described in paragraph (1), in an 

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

12 year; or 

13 ‘‘(ii) authorize the recipient of a 

14 Phase II SBIR or STTR award to pur15 chase the services described in paragraph 

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

17 $5,000 per year, which shall be in addition 

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

19 and 

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

21 ‘‘(C) FLEXIBILITY.—In carrying out sub22 paragraphs (A) and (B), each Federal agency 

23 shall provide the allowable amounts to a recipi24 ent that meets the eligibility requirements 

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1 cipient requests to seek technical assistance 

2 from an individual or entity other than the ven3 dor selected under paragraph (2) by the Fed4 eral agency. 

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

6 not— 

7 ‘‘(i) use the amounts authorized under 

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

9 selected under paragraph (2) provides the 

10 technical assistance to the recipient; or 

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

12 under paragraph (2) under which the 

13 amount provided for technical assistance is 

14 based on total number of Phase I or Phase 

15 II awards.’’. 

16 SEC. 204203. COMMERCIALIZATION READINESS PROGRAM 

17 AT DEPARTMENT OF DEFENSE. 

18 (a) IN GENERAL.—Section 9(y) of the Small Busi19 ness Act (15 U.S.C. 638(y)) is amended— 

20 (1) in the subsection heading, by striking 

21 ‘‘PILOT’’ and inserting ‘‘READINESS’’; 

22 (2) by striking ‘‘Pilot’’ each place that term ap23 pears and inserting ‘‘Readiness’’; 

24 (3) in paragraph (1)— 

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1 (A) by inserting ‘‘or Small Business Tech2 nology Transfer Program’’ after ‘‘Small Busi3 ness Innovation Research Program’’; and 

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

5 ‘‘The authority to create and administer a Com6 mercialization Readiness Program under this 

7 subsection may not be construed to eliminate or 

8 replace any other SBIR program or STTR pro9 gram that enhances the insertion or transition 

10 of SBIR or STTR technologies, including any 

11 such program in effect on the date of enact12 ment of the National Defense Authorization Act 

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

14 119 Stat. 3136).’’; 

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

16 Business Technology Transfer Program’’ after 

17 ‘‘Small Business Innovation Research Program’’; 

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

19 (6) by inserting after paragraph (4) the fol20 lowing: 

21 ‘‘(5) INSERTION INCENTIVES.—For any con22 tract with a value of not less than $100,000,000, the 

23 Secretary of Defense is authorized to— 

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

2 Phase III technologies in subcontracting plans; 

3 and 

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

5 contract to report the number and dollar 

6 amount of contracts entered into by that prime 

7 contractor for Phase III SBIR or STTR 

8 projects. 

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

10 INSERTION.—The Secretary of Defense shall— 

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

12 Phase II SBIR contracts and the number of 

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

15 programs of record or fielded systems; 

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

17 enactment of the SBIR/STTR Reauthorization 

18 Act of 2011, or create new incentives, to en19 courage agency program managers and prime 

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

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

24 subparagraph (A) awarded by that Secretary, 

25 and information on the ongoing status of 

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1 projects funded through the Commercialization 

2 Readiness Program and efforts to transition 

3 these technologies into programs of record or 

4 fielded systems.’’. 

5 (b) TECHNICAL AND CONFORMING AMENDMENT.— 

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

7 638(i)(1)) is amended by inserting ‘‘(including awards 

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

9 SEC. 205204. COMMERCIALIZATION READINESS PILOT PRO10 GRAM FOR CIVILIAN AGENCIES. 

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

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

13 the following: 

14 ‘‘(ff) PILOT PROGRAM.— 

15 ‘‘(1) AUTHORIZATION.—The head of each cov16 ered Federal agency may allocate not more than 10 

17 percent of the funds allocated to the SBIR program 

18 and the STTR program of the covered Federal agen19 cy— 

20 ‘‘(A) for awards for technology develop21 ment, testing, and evaluation of SBIR and 

22 STTR Phase II technologies; or 

23 ‘‘(B) to support the progress of research or 

24 research and development conducted under the 

25 SBIR or STTR programs to Phase III. 

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

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

3 agency may not establish a pilot program unless 

4 the covered Federal agency makes a written ap5 plication to the Administrator, not later than 

6 90 days before to the first day of the fiscal year 

7 in which the pilot program is to be established, 

8 that describes a compelling reason that addi9 tional investment in SBIR or STTR tech10 nologies is necessary, including unusually high 

11 regulatory, systems integration, or other costs 

12 relating to development or manufacturing of 

13 identifiable, highly promising small business 

14 technologies or a class of such technologies ex15 pected to substantially advance the mission of 

16 the agency. 

17 ‘‘(B) DETERMINATION.—The Adminis18 trator shall— 

19 ‘‘(i) make a determination regarding 

20 an application submitted under subpara21 graph (A) not later than 30 days before 

22 the first day of the fiscal year for which 

23 the application is submitted; 

24 ‘‘(ii) publish the determination in the 

25 Federal Register; and 

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1 ‘‘(iii) make a copy of the determina2 tion and any related materials available to 

3 the Committee on Small Business and En4 trepreneurship of the Senate and the Com5 mittee on Small Business of the House of 

6 Representatives. 

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

8 of a covered Federal agency may not make an award 

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

10 amounts generally established for Phase II awards 

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

12 ‘‘(4) REGISTRATION.—Any applicant that re13 ceives an award under a pilot program shall register 

14 with the Administrator in a registry that is available 

15 to the public. 

16 ‘‘(5) REPORT.—The head of each covered Fed17 eral agency shall include in the annual report of the 

18 covered Federal agency to the Administrator an 

19 analysis of the various activities considered for inclu20 sion in the pilot program of the covered Federal 

21 agency and a statement of the reasons why each ac22 tivity considered was included or not included, as the 

23 case may be. 

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

2 a pilot program under this section expires at the end 

3 of fiscal year 2014. 

4 ‘‘(7) 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. 206205. ACCELERATING CURES. 

14 (a) IN GENERAL.—The Small Business Act (15 

15 U.S.C. 631 et seq.) is amended by inserting after section 

16 42, as redesignated by section 201 of this Act, the fol17 lowing: 

18 ‘‘SEC. 43. SMALL BUSINESS INNOVATION RESEARCH PRO19 GRAM. 

20 ‘‘(a) NIH CURES PILOT.— 

21 ‘‘(1) ESTABLISHMENT.—An independent advi22 sory board shall be established at the National Acad23 emy of Sciences (in this section referred to as the 

24 ‘advisory board’) to conduct periodic evaluations of 

25 the SBIR program (as that term is defined in secmstockstill on DSKH9S0YB1PROD with BILLS

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1 tion 9) of each of the National Institutes of Health 

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

3 and centers for the purpose of improving the man4 agement of the SBIR program through data-driven 

5 assessment. 

6 ‘‘(2) MEMBERSHIP.— 

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

8 shall consist of— 

9 ‘‘(i) the Director of the NIH; 

10 ‘‘(ii) the Director of the SBIR pro11 gram of the NIH; 

12 ‘‘(iii) senior NIH agency managers, 

13 selected by the Director of NIH; 

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

15 Council of the National Academy of 

16 Sciences in consultation with the Associate 

17 Administrator for Technology of the Ad18 ministration and the Director of the Office 

19 of Science and Technology Policy; and 

20 ‘‘(v) owners or operators of small 

21 business concerns that have received an 

22 award under the SBIR program of the 

23 NIH, selected by the Associate Adminis24 trator for Technology of the Administra25 tion. 

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1 ‘‘(B) NUMBER OF MEMBERS.—The total 

2 number of members selected under clauses (iii), 

3 (iv), and (v) of subparagraph (A) shall not ex4 ceed 10. 

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

6 number of members of the advisory board se7 lected under clauses (i), (ii), (iii), and (iv) of 

8 subparagraph (A) shall be equal to the number 

9 of members of the advisory board selected 

10 under subparagraph (A)(v). 

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

12 the evidence-base guiding SBIR program decisions and 

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

14 shall address the gaps and deficiencies in the data collec15 tion concerns identified in the 2007 report of the National 

16 Academy of Science entitled ‘An Assessment of the Small 

17 Business Innovation Research Program at the NIH’. 

18 ‘‘(c) PILOT PROGRAM.— 

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

20 program of the NIH may initiate a pilot program, 

21 under a formal mechanism for designing, imple22 menting, and evaluating pilot programs, to spur in23 novation and to test new strategies that may en24 hance the development of cures and therapies. 

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

2 SBIR program of the NIH may consider conducting 

3 a pilot program to include individuals with success4 ful SBIR program experience in study sections, hir5 ing individuals with small business development ex6 perience for staff positions, separating the commer7 cial and scientific review processes, and examining 

8 the impact of the trend toward larger awards on the 

9 overall program. 

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

11 NIH shall submit an annual report to Congress and the 

12 advisory board on the activities of the SBIR program of 

13 the NIH under this section. 

14 ‘‘(e) SBIR GRANTS AND CONTRACTS.— 

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

16 contracts under the SBIR program of the NIH each 

17 SBIR program manager shall emphasize applica18 tions that identify products, processes, technologies, 

19 and services that may enhance the development of 

20 cures and therapies. 

21 ‘‘(2) EXAMINATION OF COMMERCIALIZATION

22 AND OTHER METRICS.—The advisory board shall 

23 evaluate the implementation of the requirement 

24 under paragraph (1) by examining increased commstockstill on DSKH9S0YB1PROD with BILLS

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1 mercialization and other metrics, to be determined 

2 and collected by the SBIR program of the NIH. 

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

4 practicable, the Director of the SBIR program of 

5 the NIH shall reduce the time period between Phase 

6 I and Phase II funding of grants and contracts 

7 under the SBIR program of the NIH to 90 days. 

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

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

10 Small Business Act (15 U.S.C. 638)) of the NIH for re11 search or research and development may be used for the 

12 pilot program under subsection (c) and to carry out sub13 section (e).’’. 

14 (b) PROSPECTIVE REPEAL.—Effective 5 years after 

15 the date of enactment of this Act, the Small Business Act 

16 (15 U.S.C. 631 et seq.) is amended— 

17 (1) by striking section 43, as added by sub18 section (a); and 

19 (2) by redesignating sections 44 and 45 as sec20 tions 43 and 44, respectively. 

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1 SEC. 207206. FEDERAL AGENCY ENGAGEMENT WITH SBIR 

2 AND STTR AWARDEES THAT HAVE BEEN 

3 AWARDED MULTIPLE PHASE I AWARDS BUT 

4 HAVE NOT BEEN AWARDED PHASE II 

5 AWARDS. 

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

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

8 the following: 

9 ‘‘(gg) REQUIREMENTS RELATING TO FEDERAL

10 AGENCY ENGAGEMENT WITH CERTAIN PHASE I SBIR 

11 AND STTR AWARDEES.— 

12 ‘‘(1) DEFINITION.—In this subsection, the term 

13 ‘covered awardee’ means a small business concern 

14 that— 

15 ‘‘(A) has received multiple Phase I awards 

16 over multiple years, as determined by the head 

17 of a Federal agency, under the SBIR program 

18 or the STTR program of the Federal agency; 

19 and 

20 ‘‘(B) has not received a Phase II award— 

21 ‘‘(i) under the SBIR program or 

22 STTR program, as the case may be, of the 

23 Federal agency described in subparagraph 

24 (A); or 

25 ‘‘(ii) relating to a Phase I award de26 scribed in subparagraph (A) under the 

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1 SBIR program or the STTR program of 

2 another Federal agency. 

3 ‘‘(2) PERFORMANCE MEASURES.—The head of 

4 each Federal agency that participates in the SBIR 

5 program or the STTR program shall develop per6 formance measures for any covered awardee relating 

7 to commercializing research or research and develop8 ment activities under the SBIR program or the 

9 STTR program of the Federal agency.’’. 

10 SEC. 208207. 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)) is amended— 

13 (1) in paragraph (4)(C), in the matter pre14 ceding clause (i), by inserting ‘‘for work that derives 

15 from, extends, or completes efforts made under prior 

16 funding agreements under the SBIR program’’ after 

17 ‘‘phase’’; 

18 (2) in paragraph (6)(C), in the matter pre19 ceding clause (i), by inserting ‘‘for work that derives 

20 from, extends, or completes efforts made under prior 

21 funding agreements under the STTR program’’ after 

22 ‘‘phase’’; 

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

24 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 com11 mercial markets;’’. 

12 (b) TECHNICAL AND CONFORMING AMENDMENTS.— 

13 The Small Business Act (15 U.S.C. 631 et seq.) is amend14 ed— 

15 (1) in section 9 (15 U.S.C. 638)— 

16 (A) in subsection (e)— 

17 (i) in paragraph (4)(C)(ii), by striking 

18 ‘‘scientific review criteria’’ and inserting 

19 ‘‘merit-based selection procedures’’; 

20 (ii) in paragraph (9), by striking ‘‘the 

21 second or the third phase’’ and inserting 

22 ‘‘Phase II or Phase III’’; and 

23 (iii) by adding at the end the fol24 lowing: 

25 ‘‘(11) the term ‘Phase I’ means— 

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

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

3 and 

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

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

6 ‘‘(12) the term ‘Phase II’ means— 

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

8 the second phase described in paragraph 

9 (4)(B); and 

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

11 the second phase described in paragraph 

12 (6)(B); and 

13 ‘‘(13) the term ‘Phase III’ means— 

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

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

16 and 

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

18 the third phase described in paragraph 

19 (6)(C).’’; 

20 (B) in subsection (j)— 

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

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

23 (ii) in paragraph (2)— 

24 (I) in subparagraph (B)— 

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1 (aa) by striking ‘‘the third 

2 phase’’ each place it appears and 

3 inserting ‘‘Phase III’’; and 

4 (bb) by striking ‘‘the second 

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

6 (II) in subparagraph (D)— 

7 (aa) by striking ‘‘the first 

8 phase’’ and inserting ‘‘Phase I’’; 

9 and 

10 (bb) by striking ‘‘the second 

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

12 (III) in subparagraph (F), by 

13 striking ‘‘the third phase’’ and insert14 ing ‘‘Phase III’’; 

15 (IV) in subparagraph (G)— 

16 (aa) by striking ‘‘the first 

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

18 and 

19 (bb) by striking ‘‘the second 

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

21 and 

22 (V) in subparagraph (H)— 

23 (aa) by striking ‘‘the first 

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

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1 (bb) by striking ‘‘second 

2 phase’’ each place it appears and 

3 inserting ‘‘Phase II’’; and 

4 (cc) by striking ‘‘third 

5 phase’’ and inserting ‘‘Phase 

6 III’’; and 

7 (iii) in paragraph (3)— 

8 (I) in subparagraph (A)— 

9 (aa) by striking ‘‘the first 

10 phase (as described in subsection 

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

12 I’’; 

13 (bb) by striking ‘‘the second 

14 phase (as described in subsection 

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

16 II’’; and 

17 (cc) by striking ‘‘the third 

18 phase (as described in subsection 

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

20 III’’; and 

21 (II) in subparagraph (B), by 

22 striking ‘‘second phase’’ and inserting 

23 ‘‘Phase II’’; 

24 (C) in subsection (k)— 

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

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

3 and 

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

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

6 (D) in subsection (l)(2)— 

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

8 inserting ‘‘Phase I’’; and 

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

10 and inserting ‘‘Phase II’’; 

11 (E) in subsection (o)(13)— 

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

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

14 and 

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

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

17 (F) in subsection (p)— 

18 (i) in paragraph (2)(B)— 

19 (I) in clause (vi)— 

20 (aa) by striking ‘‘the second 

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

22 and 

23 (bb) by striking ‘‘the third 

24 phase’’ and inserting ‘‘Phase 

25 III’’; and 

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1 (II) in clause (ix)— 

2 (aa) by striking ‘‘the first 

3 phase’’ and inserting ‘‘Phase I’’; 

4 and 

5 (bb) by striking ‘‘the second 

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

7 and 

8 (ii) in paragraph (3)— 

9 (I) by striking ‘‘the first phase 

10 (as described in subsection 

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

12 (II) by striking ‘‘the second 

13 phase (as described in subsection 

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

15 and 

16 (III) by striking ‘‘the third phase 

17 (as described in subsection 

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

19 (G) in subsection (q)(3)— 

20 (i) in subparagraph (A)— 

21 (I) in the subparagraph heading, 

22 by striking ‘‘FIRST PHASE’’ and in23 serting ‘‘PHASE I’’; and 

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

25 inserting ‘‘Phase I’’; and 

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1 (ii) in subparagraph (B)— 

2 (I) in the subparagraph heading, 

3 by striking ‘‘SECOND PHASE’’ and in4 serting ‘‘PHASE II’’; and 

5 (II) by striking ‘‘second phase’’ 

6 and inserting ‘‘Phase II’’; 

7 (H) in subsection (r)— 

8 (i) in the subsection heading, by strik9 ing ‘‘THIRD PHASE’’ and inserting 

10 ‘‘PHASE III’’; 

11 (ii) in paragraph (1)— 

12 (I) in the first sentence— 

13 (aa) by striking ‘‘for the sec14 ond phase’’ and inserting ‘‘for 

15 Phase II’’; 

16 (bb) by striking ‘‘third 

17 phase’’ and inserting ‘‘Phase 

18 III’’; and 

19 (cc) by striking ‘‘second 

20 phase period’’ and inserting 

21 ‘‘Phase II period’’; and 

22 (II) in the second sentence— 

23 (aa) by striking ‘‘second 

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

25 and 

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1 (bb) by striking ‘‘third 

2 phase’’ and inserting ‘‘Phase 

3 III’’; and 

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

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

6 and 

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

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

9 (2) in section 34(c)(2)(B)(vii) (15 U.S.C. 

10 657e(c)(2)(B)(vii)), as redesignated by section 201 

11 of this Act, by striking ‘‘third phase’’ and inserting 

12 ‘‘Phase III’’. 

13 SEC. 209208. SHORTENED PERIOD FOR FINAL DECISIONS 

14 ON PROPOSALS AND APPLICATIONS. 

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

16 Act (15 U.S.C. 638) is amended— 

17 (1) in subsection (g)(4)— 

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

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

20 at the end; and 

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

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

23 submitted under the SBIR program— 

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

25 on which the solicitation closes; or 

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1 ‘‘(ii) if the Administrator authorizes an ex2 tension for a solicitation, not later than 180 

3 days after the date on which the solicitation 

4 closes;’’; and 

5 (2) in subsection (o)(4)— 

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

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

8 at the end; and 

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

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

11 submitted under the STTR program— 

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

13 on which the solicitation closes; or 

14 ‘‘(ii) if the Administrator authorizes an ex15 tension for a solicitation, not later than 180 

16 days after the date on which the solicitation 

17 closes;’’. 

18 (b) NIH PEER REVIEW PROCESS.— 

19 (1) IN GENERAL.—Section 9 of the Small Busi20 ness Act (15 U.S.C. 638), as amended by this Act, 

21 is amended by adding at the end the following: 

22 ‘‘(hh) NIH PEER REVIEW PROCESS.—The Director 

23 of the National Institutes of Health may make an award 

24 under the SBIR program or the STTR program of the 

25 National Institutes of Health if the application for the 

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1 award has undergone technical and scientific peer review 

2 under section 492 of the Public Health Service Act (42 

3 U.S.C. 289a).’’. 

4 (2) TECHNICAL AND CONFORMING AMEND5 MENTS.—Section 105 of the National Institutes of 

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

7 amended— 

8 (A) in subsection (a)(3)— 

9 (i) by striking ‘‘A grant’’ and insert10 ing ‘‘Except as provided in section 9(hh) of 

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

12 638(hh)), a grant’’; and 

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

14 all that follows through ‘‘Act)’’ and insert15 ing ‘‘section 402(l) of such Act’’; and 

16 (B) in subsection (b)(5)— 

17 (i) by striking ‘‘A grant’’ and insert18 ing ‘‘Except as provided in section 9(hh) of 

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

20 638(hh)), a grant’’; and 

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

22 all that follows through ‘‘Act)’’ and insert23 ing ‘‘section 402(l) of such Act’’. 

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1 TITLE III—OVERSIGHT AND 

2 EVALUATION 

3 SEC. 301. STREAMLINING ANNUAL EVALUATION REQUIRE4 MENTS. 

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

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

8 (1) in paragraph (7)— 

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

11 ‘‘STTR programs, including— 

12 ‘‘(A) the data’’; 

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

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

15 through ‘‘under each of the SBIR and STTR 

16 programs, and a description’’ and inserting the 

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

18 ‘‘(B) the number of proposals received 

19 from, and the number and total amount of 

20 awards to, HUBZone small business concerns 

21 and firms with venture capital investment (in22 cluding those majority-owned by multiple ven23 ture capital operating companies) under each of 

24 the SBIR and STTR programs; 

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

2 each Federal agency is increasing outreach and 

3 awards to firms owned and controlled by women 

4 and social or economically disadvantaged indi5 viduals under each of the SBIR and STTR pro6 grams; 

7 ‘‘(D) general information about the imple8 mentation of, and compliance with the alloca9 tion of funds required under, subsection (cc) for 

10 firms owned in majority part by venture capital 

11 operating companies and participating in the 

12 SBIR program; 

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

14 Phase III awards and notices of noncompliance 

15 with the SBIR Policy Directive and the STTR 

16 Policy Directive filed by the Administrator with 

17 Federal agencies; and 

18 ‘‘(F) a description’’; and 

19 (2) by inserting after paragraph (7) the fol20 lowing: 

21 ‘‘(8) to coordinate the implementation of elec22 tronic databases at each of the Federal agencies par23 ticipating in the SBIR program or the STTR pro24 gram, including the technical ability of the partici25 pating agencies to electronically share data;’’. 

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

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

3 638(g)) is amended— 

4 (1) by striking paragraph (10); 

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

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

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

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

13 SBIR program, including information necessary to 

14 maintain the database described in subsection (k), 

15 including— 

16 ‘‘(A) whether an awardee— 

17 ‘‘(i) has venture capital or is majority18 owned by multiple venture capital oper19 ating companies, and, if so— 

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

22 of the date of the award; and 

23 ‘‘(II) the amount of additional 

24 capital that the awardee has invested 

25 in the SBIR technology; 

26 ‘‘(ii) has an investor that— 

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

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

4 States, and if so, the name of any 

5 such individual; or 

6 ‘‘(II) is a person that is not an 

7 individual and is not organized under 

8 the laws of a State or the United 

9 States, and if so the name of any such 

10 person; 

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

12 woman as a principal investigator; 

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

15 a socially or economically disadvantaged 

16 individual as a principal investigator; 

17 ‘‘(v) received assistance under the 

18 FAST program under section 34, as in ef19 fect on the day before the date of enact20 ment of the SBIR/STTR Reauthorization 

21 Act of 2011, or the outreach program 

22 under subsection (s); 

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

24 of an institution of higher education, as 

25 that term is defined in section 101 of the 

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

2 1001); or 

3 ‘‘(vii) is located in a State described 

4 in subsection (u)(3); and 

5 ‘‘(B) a justification statement from the 

6 agency, if an awardee receives an award in an 

7 amount that is more than the award guidelines 

8 under this section;’’. 

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

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

11 638(o)) is amended by striking paragraph (9) and insert12 ing the following: 

13 ‘‘(9) collect annually, and maintain in a com14 mon format in accordance with the simplified report15 ing requirements under subsection (v), such informa16 tion from applicants and awardees as is necessary to 

17 assess the STTR program outputs and outcomes, in18 cluding information necessary to maintain the data19 base described in subsection (k), including— 

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

21 ‘‘(i) has venture capital or is majority22 owned by multiple venture capital oper23 ating companies, and, if so— 

24 ‘‘(I) the amount of venture cap25 ital that the applicant or awardee has 

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

3 ‘‘(II) the amount of additional 

4 capital that the applicant or awardee 

5 has invested in the SBIR technology; 

6 ‘‘(ii) has an investor that— 

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

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

10 States, and if so, the name of any 

11 such individual; or 

12 ‘‘(II) is a person that is not an 

13 individual and is not organized under 

14 the laws of a State or the United 

15 States, and if so the name of any such 

16 person; 

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

18 woman as a principal investigator; 

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

21 a socially or economically disadvantaged 

22 individual as a principal investigator; 

23 ‘‘(v) received assistance under the 

24 FAST program under section 34 or the 

25 outreach program under subsection (s); 

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

2 of an institution of higher education, as 

3 that term is defined in section 101 of the 

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

5 1001); or 

6 ‘‘(vii) is located in a State in which 

7 the total value of contracts awarded to 

8 small business concerns under all STTR 

9 programs is less than the total value of 

10 contracts awarded to small business con11 cerns in a majority of other States, as de12 termined by the Administrator in biennial 

13 fiscal years, beginning with fiscal year 

14 2008, based on the most recent statistics 

15 compiled by the Administrator; and 

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

17 amount that is more than the award guidelines 

18 under this section, a statement from the agency 

19 that justifies the award amount;’’. 

20 SEC. 304. PUBLIC DATABASE. 

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

22 638(k)(1)) is amended— 

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

24 the end; 

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

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

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

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

5 has received a Phase I or Phase II SBIR or 

6 STTR award from a Federal agency, whether 

7 the small business concern— 

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

9 whether the small business concern is reg10 istered as majority-owned by multiple ven11 ture capital operating companies as re12 quired under subsection (cc)(4); 

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

14 woman as a principal investigator; 

15 ‘‘(iii) is owned by a socially or eco16 nomically disadvantaged individual or has 

17 a socially or economically disadvantaged 

18 individual as a principal investigator; 

19 ‘‘(iv) received assistance under the 

20 FAST program under section 34, as in ef21 fect on the day before the date of enact22 ment of the SBIR/STTR Reauthorization 

23 Act of 2011, or the outreach program 

24 under subsection (s); or 

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

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

4 101 of the Higher Education Act of 1965 

5 (20 U.S.C. 1001).’’. 

6 SEC. 305. GOVERNMENT DATABASE. 

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

8 638(k)) is amended— 

9 (1) in paragraph (2)— 

10 (A) in the matter preceding subparagraph 

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

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

13 than 90 days after the date of enactment of the 

14 SBIR/STTR Reauthorization Act of 2011’’; 

15 (B) by striking subparagraph (C); 

16 (C) by redesignating subparagraphs (A) 

17 and (B) as subparagraphs (B) and (C), respec18 tively; 

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

20 as so redesignated, the following: 

21 ‘‘(A) contains, for each small business con22 cern that applies for, submits a proposal for, or 

23 receives an award under Phase I or Phase II of 

24 the SBIR program or the STTR program— 

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

2 an identifying number assigned by the Ad3 ministration of the small business concern; 

4 ‘‘(ii) an abstract of the project; 

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

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

7 small business concern; 

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

9 will carry out the project; 

10 ‘‘(vi) the percentage of effort each in11 dividual described in clause (iv) will con12 tribute to the project; 

13 ‘‘(vii) whether the small business con14 cern is majority-owned by multiple venture 

15 capital operating companies; and 

16 ‘‘(viii) the Federal agency to which 

17 the application is made, and contact infor18 mation for the person or office within the 

19 Federal agency that is responsible for re20 viewing applications and making awards 

21 under the SBIR program or the STTR 

22 program;’’; 

23 (E) by redesignating subparagraphs (D), 

24 and (E) as subparagraphs (E) and (F), respec25 tively; 

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

2 as so redesignated, the following: 

3 ‘‘(D) includes, for each awardee— 

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

5 identifying number assigned to the award6 ee by the Administrator; 

7 ‘‘(ii) whether the awardee has venture 

8 capital, and, if so— 

9 ‘‘(I) the amount of venture cap10 ital as of the date of the award; 

11 ‘‘(II) the percentage of ownership 

12 of the awardee held by a venture cap13 ital operating company, including 

14 whether the awardee is majority15 owned by multiple venture capital op16 erating companies; and 

17 ‘‘(III) the amount of additional 

18 capital that the awardee has invested 

19 in the SBIR technology, which infor20 mation shall be collected on an annual 

21 basis; 

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

23 affiliates of the awardee; 

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

25 awardee; 

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

2 affiliates of the awardee; and 

3 ‘‘(vi) the names of, and the percent4 age of ownership of the awardee held by— 

5 ‘‘(I) any individual who is not a 

6 citizen of the United States or a law7 ful permanent resident of the United 

8 States; or 

9 ‘‘(II) any person that is not an 

10 individual and is not organized under 

11 the laws of a State or the United 

12 States;’’; 

13 (G) in subparagraph (E), as so redesig14 nated, by striking ‘‘and’’ at the end; 

15 (H) in subparagraph (F), as so redesig16 nated, by striking the period at the end and in17 serting ‘‘; and’’; and 

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

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

20 any individual or small business concern that 

21 has participated in the SBIR program or STTR 

22 program that has committed fraud, waste, or 

23 abuse relating to the SBIR program or STTR 

24 program.’’; 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 

5 Federal agency for submitting applications or 

6 proposals for a Phase I or Phase II award 

7 under the SBIR program or STTR program, 

8 the head of the Federal agency shall submit to 

9 the Administrator the data required under 

10 paragraph (2) with respect to each small busi11 ness concern that applies or submits a proposal 

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

13 SEC. 306. ACCURACY IN FUNDING BASE CALCULATIONS. 

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

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

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

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

18 shall— 

19 (1) conduct a fiscal and management audit of 

20 the SBIR program and the STTR program for the 

21 applicable period to— 

22 (A) determine whether Federal agencies 

23 comply with the expenditure amount require24 ments under subsections (f)(1) and (n)(1) of 

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

2 638), as amended by this Act; 

3 (B) assess the extent of compliance with 

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

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

6 agencies participating in the SBIR program or 

7 the STTR program and the Administration; 

8 (C) assess whether it would be more con9 sistent and effective to base the amount of the 

10 allocations under the SBIR program and the 

11 STTR program on a percentage of the research 

12 and development budget of a Federal agency, 

13 rather than the extramural budget of the Fed14 eral agency; and 

15 (D) determine the portion of the extra16 mural research or research and development 

17 budget of a Federal agency that each Federal 

18 agency spends for administrative purposes re19 lating to the SBIR program or STTR program, 

20 and for what specific purposes, including the 

21 portion, if any, of such budget the Federal 

22 agency spends for salaries and expenses, travel 

23 to visit applicants, outreach events, marketing, 

24 and technical assistance; and 

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

2 Business and Entrepreneurship of the Senate and 

3 the Committee on Small Business of the House of 

4 Representatives regarding the audit conducted under 

5 paragraph (1), including the assessments required 

6 under subparagraphs (B) and (C), and the deter7 mination made under subparagraph (D) of para8 graph (1). 

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

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

11 (1) for the first report submitted under this 

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

13 and ending on September 30 of the last full fiscal 

14 year before the date of enactment of this Act for 

15 which information is available; and 

16 (2) for the second and each subsequent report 

17 submitted under this section, the period— 

18 (A) beginning on October 1 of the first fis19 cal year after the end of the most recent full 

20 fiscal year relating to which a report under this 

21 section was submitted; and 

22 (B) ending on September 30 of the last 

23 full fiscal year before the date of 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 Reauthorization 

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

5 at the end the following: 

6 ‘‘(e) EXTENSIONS AND ENHANCEMENTS OF AUTHOR7 ITY.— 

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

9 after the date of enactment of the SBIR/STTR Re10 authorization Act of 2011, the head of each agency 

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

12 Small Business Administration, shall cooperatively 

13 enter into an agreement with the National Academy 

14 of Sciences for the National Research Council to, 

15 not later than 4 years after the date of enactment 

16 of the SBIR/STTR Reauthorization Act of 2011, 

17 and every 4 years thereafter— 

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

19 this section relating to— 

20 ‘‘(i) the issues described in subpara21 graphs (A), (B), (C), and (E) of subsection 

22 (a)(1); and 

23 ‘‘(ii) the effectiveness of the govern24 ment and public databases described in 

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

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

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1 of the SBIR program and the STTR pro2 gram to fraud, waste, and abuse, particu3 larly with respect to Federal agencies 

4 funding duplicative proposals and business 

5 concerns falsifying information in pro6 posals; 

7 ‘‘(B) make recommendations with respect 

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

9 and subparagraphs (A), (D), and (E) of sub10 section (a)(2).; and 

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

12 number of jobs created by the SBIR program or 

13 STTR program of the agency. 

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

15 paragraph (1) shall require the National Research 

16 Council to ensure there is participation by and con17 sultation with the small business community, the 

18 Administration, and other interested parties as de19 scribed in subsection (b). 

20 ‘‘(3) REPORTING.—An agreement under para21 graph (1) shall require that not later than 4 years 

22 after the date of enactment of the SBIR/STTR Re23 authorization Act of 2011, and every 4 years there24 after, the National Research Council shall submit to 

25 the head of the agency entering into the agreement, 

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1 the Committee on Small Business and Entrepre2 neurship of the Senate, and the Committee on Small 

3 Business of the House of Representatives a report 

4 regarding the study conducted under paragraph (1) 

5 and containing the recommendations described in 

6 paragraph (1).’’. 

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 amended by adding at the end 

11 the following: 

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

13 STTR report to Congress by the Administration under 

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

15 made by the Federal agency— 

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

17 the agency or the non-Federal source of capital mak18 ing 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 

22 award.’’. 

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1 SEC. 309. INTELLECTUAL PROPERTY PROTECTIONS. 

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

3 United States shall conduct a study of the SBIR program 

4 to assess whether— 

5 (1) Federal agencies comply with the data 

6 rights protections for SBIR awardees and the tech7 nologies of SBIR awardees under section 9 of the 

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

9 (2) the laws and policy directives intended to 

10 clarify the scope of data rights, including in proto11 types and mentor-prote ́ge ́ relationships and agree12 ments with Federal laboratories, are sufficient to 

13 protect SBIR awardees; and 

14 (3) there is an effective grievance tracking proc15 ess for SBIR awardees who have grievances against 

16 a Federal agency regarding data rights and a proc17 ess for resolving those grievances. 

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

19 date of enactment of this Act, the Comptroller General 

20 shall submit to the Committee on Small Business and En21 trepreneurship of the Senate and the Committee on Small 

22 Business of the House of Representatives a report regard23 ing the study conducted under subsection (a). 

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1 SEC. 310. 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 amended by adding at the end 

7 the following: 

8 ‘‘(jj) 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 or19 ganizations 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 estab24 lish rules to implement this subsection. The rules 

25 shall include a requirement that a Federal agency 

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1 sion through which the applicant can indicate con2 sent for purposes of paragraph (1).’’. 

3 SEC. 311. PILOT TO ALLOW FUNDING FOR ADMINISTRA4 TIVE, OVERSIGHT, AND CONTRACT PROC5 ESSING COSTS. 

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

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

8 by adding at the end the following: 

9 ‘‘(kk) ASSISTANCE FOR ADMINISTRATIVE, OVER10 SIGHT, AND CONTRACT PROCESSING COSTS.— 

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

12 for the 3 full fiscal years beginning after the date 

13 of enactment of this subsection, the Administrator 

14 shall allow each Federal agency required to conduct 

15 an SBIR program to use not more than 3 percent 

16 of the funds allocated to the SBIR program of the 

17 Federal agency for— 

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

20 agency; 

21 ‘‘(B) the provision of outreach and tech22 nical assistance relating to the SBIR program 

23 or STTR program of the Federal agency, in24 cluding technical assistance site visits and per25 sonnel 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 the waste, 

8 fraud, and abuse prevention activities described 

9 in section 313(a)(1)(B)(ii) of the SBIR/STTR 

10 Reauthorization Act of 2011; 

11 ‘‘(F) targeted reviews of recipients of 

12 awards under the SBIR program or STTR pro13 gram of the Federal agency that the head of 

14 the Federal agency determines are at high risk 

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

16 with requirements of the SBIR program or 

17 STTR program, respectively; 

18 ‘‘(G) the implementation of oversight and 

19 quality control measures, including verification 

20 of reports and invoices and cost reviews; 

21 ‘‘(H) carrying out subsection (cc); 

22 ‘‘(I) carrying out subsection (ff); 

23 ‘‘(J) contract processing costs relating to 

24 the SBIR program or STTR program of the 

25 Federal agency; and 

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1 ‘‘(K) funding for additional personnel and 

2 assistance with application reviews. 

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

4 agency may not use funds as authorized under para5 graph (1) until after the effective date of perform6 ance criteria, which the Administrator shall estab7 lish, to measure any benefits of using funds as au8 thorized under paragraph (1) and to assess continu9 ation of the authority under paragraph (1). 

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

11 the date of enactment of this subsection, the Admin12 istrator shall issue rules to carry out this sub13 section.’’. 

14 (b) TECHNICAL AND CONFORMING AMENDMENTS.— 

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

17 (A) in subsection (f)(2)(A), as so des18 ignated by section 103(2) of this Act, by strik19 ing ‘‘shall not’’ and all that follows through 

20 ‘‘make available for the purpose’’ and inserting 

21 ‘‘shall not make available for the purpose’’; and 

22 (B) in subsection (y), as amended by sec23 tion 204 203— 

24 (i) by striking paragraph (4); 

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1 (ii) by redesignating paragraphs (5) 

2 and (6) as paragraphs (4) and (5), respec3 tively. 

4 (2) TRANSITIONAL RULE.—Notwithstanding the 

5 amendments made by paragraph (1), subsection 

6 (f)(2)(A) and (y)(4) of section 9 of the Small Busi7 ness Act (15 U.S.C. 638), as in effect on the day 

8 before the date of enactment of this Act, shall con9 tinue to apply to each Federal agency until the ef10 fective date of the performance criteria established 

11 by the Administrator under subsection (kk)(2) of 

12 section 9 of the Small Business Act, as added by 

13 subsection (a). 

14 (3) PROSPECTIVE REPEAL.—Effective on the 

15 first day of the fourth full fiscal year following the 

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

17 Business Act (15 U.S.C. 638), as amended by para18 graph (1) of this section, is amended— 

19 (A) in subsection (f)(2)(A), by striking 

20 ‘‘shall not make available for the purpose’’ and 

21 inserting the following: ‘‘shall not— 

22 ‘‘(i) use any of its SBIR budget estab23 lished pursuant to paragraph (1) for the 

24 purpose of funding administrative costs of 

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1 the program, including costs associated 

2 with salaries and expenses; or 

3 ‘‘(ii) make available for the purpose’’; 

4 and 

5 (B) in subsection (y)— 

6 (i) by redesignating paragraphs (4) 

7 and (5) as paragraphs (5) and (6), respec8 tively; and 

9 (ii) by inserting after paragraph (3) 

10 the following: 

11 ‘‘(4) FUNDING.— 

12 ‘‘(A) IN GENERAL.—The Secretary of De13 fense and each Secretary of a military depart14 ment may use not more than an amount equal 

15 to 1 percent of the funds available to the De16 partment of Defense or the military department 

17 pursuant to the Small Business Innovation Re18 search Program for payment of expenses in19 curred to administer the Commercialization 

20 Pilot Program under this subsection. 

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

22 in subparagraph (A)— 

23 ‘‘(i) shall not be subject to the limita24 tions on the use of funds in subsection 

25 (f)(2); and 

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

2 III awards.’’. 

3 SEC. 312. GAO STUDY WITH RESPECT TO VENTURE CAPITAL 

4 OPERATING COMPANY INVOLVEMENT. 

5 Not later than 3 years after the date of enactment 

6 of this Act, and every 3 years thereafter, the Comptroller 

7 General of the United States shall— 

8 (1) conduct a study of the impact of require9 ments relating to venture capital operating company 

10 involvement under section 9(cc) of the Small Busi11 ness Act, as added by section 108 of this Act; and 

12 (2) submit to Congress a report regarding the 

13 study conducted under paragraph (1). 

14 SEC. 313. REDUCING VULNERABILITY OF SBIR AND STTR 

15 PROGRAMS TO FRAUD, WASTE, AND ABUSE. 

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

17 (1) GUIDELINES FOR FRAUD, WASTE, AND

18 ABUSE PREVENTION.— 

19 (A) AMENDMENTS REQUIRED.—Not later 

20 than 90 days after the date of enactment of 

21 this Act, the Administrator shall amend the 

22 SBIR Policy Directive and the STTR Policy 

23 Directive to include measures to prevent fraud, 

24 waste, and abuse in the SBIR program and the 

25 STTR program. 

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1 (B) CONTENT OF AMENDMENTS.—The 

2 amendments required under subparagraph (A) 

3 shall include— 

4 (i) definitions or descriptions of fraud, 

5 waste, and abuse; 

6 (ii) a requirement that the Inspectors 

7 General of each Federal agency that par8 ticipates in the SBIR program or the 

9 STTR program cooperate to— 

10 (I) establish fraud detection indi11 cators; 

12 (II) review regulations and oper13 ating procedures of the Federal agen14 cies; 

15 (III) coordinate information 

16 sharing between the Federal agencies; 

17 and 

18 (IV) improve the education and 

19 training of, and outreach to— 

20 (aa) administrators of the 

21 SBIR program and the STTR 

22 program of each Federal agency; 

23 (bb) applicants to the SBIR 

24 program or the STTR program; 

25 and 

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1 (cc) recipients of awards 

2 under the SBIR program or the 

3 STTR program; 

4 (iii) guidelines for the monitoring and 

5 oversight of applicants to and recipients of 

6 awards under the SBIR program or the 

7 STTR program; and 

8 (iv) a requirement that each Federal 

9 agency that participates in the SBIR pro10 gram or STTR program include the tele11 phone number of the hotline established 

12 under paragraph (2)— 

13 (I) on the Web site of the Fed14 eral agency; and 

15 (II) in any solicitation or notice 

16 of funding opportunity issued by the 

17 Federal agency for the SBIR program 

18 or the STTR program. 

19 (2) FRAUD, WASTE, AND ABUSE PREVENTION

20 HOTLINE.— 

21 (A) HOTLINE ESTABLISHED.—The Admin22 istrator shall establish a telephone hotline that 

23 allows individuals to report fraud, waste, and 

24 abuse in the SBIR program or STTR program. 

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1 (B) PUBLICATION.—The Administrator 

2 shall include the telephone number for the hot3 line established under subparagraph (A) on the 

4 Web site of the Administration. 

5 (b) STUDY AND REPORT.— 

6 (1) STUDY.—Not later than 1 year after the 

7 date of enactment of this Act, and every 3 years 

8 thereafter, the Comptroller General of the United 

9 States shall— 

10 (A) conduct a study that evaluates— 

11 (i) the implementation by each Fed12 eral agency that participates in the SBIR 

13 program or the STTR program of the 

14 amendments to the SBIR Policy Directive 

15 and the STTR Policy Directive made pur16 suant to subsection (a); 

17 (ii) the effectiveness of the manage18 ment information system of each Federal 

19 agency that participates in the SBIR pro20 gram or STTR program in identifying du21 plicative SBIR and STTR projects; 

22 (iii) the effectiveness of the risk man23 agement strategies of each Federal agency 

24 that participates in the SBIR program or 

25 STTR program in identifying areas of the 

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1 SBIR program or the STTR program that 

2 are at high risk for fraud; 

3 (iv) technological tools that may be 

4 used to detect patterns of behavior that 

5 may indicate fraud by applicants to the 

6 SBIR program or the STTR program; 

7 (v) the success of each Federal agency 

8 that participates in the SBIR program or 

9 STTR program in reducing fraud, waste, 

10 and abuse in the SBIR program or the 

11 STTR program of the Federal agency; and 

12 (vi) the extent to which the Inspector 

13 General of each Federal agency that par14 ticipates in the SBIR program or STTR 

15 program effectively conducts investigations 

16 of individuals alleged to have submitted 

17 false claims or violated Federal law relat18 ing to fraud, conflicts of interest, bribery, 

19 gratuity, or other misconduct; and 

20 (B) submit to the Committee on Small 

21 Business and Entrepreneurship of the Senate, 

22 the Committee on Small Business of the House 

23 of Representatives, and the head of each Fed24 eral agency that participates in the SBIR pro25 gram or STTR program a report on the results 

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1 of the study conducted under subparagraph 

2 (A). 

3 SEC. 314. INTERAGENCY POLICY COMMITTEE. 

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

5 Science and Technology Policy (in this section referred to 

6 as the ‘‘Director’’), in conjunction with the Administrator, 

7 shall establish an Interagency SBIR/STTR Policy Com8 mittee (in this section referred to as the ‘‘Committee’’) 

9 comprised of 1 representative from each Federal agency 

10 with an SBIR program or an STTR program and 1 rep11 resentative of the Office of Management and Budget. 

12 (b) COCHAIRPERSONS.—The Director and the Ad13 ministrator shall serve as cochairpersons of the Com14 mittee. 

15 (c) DUTIES.—The Committee shall review, and make 

16 policy recommendations on ways to improve the effective17 ness and efficiency of, the SBIR program and the STTR 

18 program, including— 

19 (1) reviewing the effectiveness of the public and 

20 government databases described in section 9(k) of 

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

22 (2) identifying— 

23 (A) best practices for commercialization 

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1 cant potential to be employed by other Federal 

2 agencies; and 

3 (B) proposals by Federal agencies for ini4 tiatives to address challenges for small business 

5 concerns in obtaining funding after a Phase II 

6 award ends and before commercialization; and 

7 (3) developing and incorporating a standard 

8 evaluation framework to enable systematic assess9 ment of the SBIR program and STTR program, in10 cluding through improved tracking of awards and 

11 outcomes and development of performance measures 

12 for the SBIR program and STTR program of each 

13 Federal agency. 

14 (d) REPORTS.—The Committee shall submit to the 

15 Committee on Small Business and Entrepreneurship of 

16 the Senate and the Committee on Science and Technology 

17 and the Committee on Small Business of the House of 

18 Representatives— 

19 (1) a report on the review by and recommenda20 tions of the Committee under subsection (c)(1) not 

21 later than 1 year after the date of enactment of this 

22 Act; 

23 (2) a report on the review by and recommenda24 tions of the Committee under subsection (c)(2) not 

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1 later than 18 months after the date of enactment of 

2 this Act; and 

3 (3) a report on the review by and recommenda4 tions of the Committee under subsection (c)(3) not 

5 later than 2 years after the date of enactment of 

6 this Act. 

7 SEC. 315. SIMPLIFIED PAPERWORK REQUIREMENTS. 

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

9 638(v)) is amended— 

10 (1) in the subsection heading, by striking ‘‘SIM11 PLIFIED REPORTING REQUIREMENTS’’ and inserting 

12 ‘‘REDUCING PAPERWORK AND COMPLIANCE BUR13 DEN’’; 

14 (2) by striking ‘‘The Administrator’’ and insert15 ing the following: 

16 ‘‘(1) STANDARDIZATION OF REPORTING RE17 QUIREMENTS.—The Administrator’’; and 

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

19 ‘‘(2) SIMPLIFICATION OF APPLICATION AND

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

21 date of enactment of this paragraph, and after a pe22 riod of public comment, the Administrator shall issue 

23 regulations or guidelines, taking into consideration 

24 the unique needs of each Federal agency, to ensure 

25 that each Federal agency required to carry out an 

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1 SBIR program or STTR program simplifies and 

2 standardizes the program proposal, selection, con3 tracting, compliance, and audit procedures for the 

4 SBIR program or STTR program of the Federal 

5 agency (including procedures relating to overhead 

6 rates for applicants and documentation requirements) 

7 to reduce the paperwork and regulatory compliance 

8 burden on small business concerns applying to and 

9 participating in the SBIR program or STTR pro10 gram.’’. 

11 TITLE IV—POLICY DIRECTIVES 

12 SEC. 401. CONFORMING AMENDMENTS TO THE SBIR AND 

13 THE STTR POLICY DIRECTIVES. 

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

15 date of enactment of this Act, the Administrator shall pro16 mulgate amendments to the SBIR Policy Directive and 

17 the STTR Policy Directive to conform such directives to 

18 this Act and the amendments made by this Act. 

19 (b) PUBLISHING SBIR POLICY DIRECTIVE AND THE

20 STTR POLICY DIRECTIVE IN THE FEDERAL REGISTER.— 

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

22 this Act, the Administrator shall publish the amended 

23 SBIR Policy Directive and the amended STTR Policy Di24 rective in the Federal Register. 

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1 TITLE V—OTHER PROVISIONS 

2 SEC. 501. RESEARCH TOPICS AND PROGRAM DIVERSIFICA3 TION. 

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

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

6 (1) in paragraph (3)— 

7 (A) in the matter preceding subparagraph 

8 (A), by striking ‘‘broad research topics and to 

9 topics that further 1 or more critical tech10 nologies’’ and inserting ‘‘applications to the 

11 Federal agency for support of projects relating 

12 to nanotechnology, rare diseases, security, en13 ergy, transportation, or improving the security 

14 and quality of the water supply of the United 

15 States, and the efficiency of water delivery sys16 tems and usage patterns in the United States 

17 (including the territories of the United States) 

18 through the use of technology (to the extent 

19 that the projects relate to the mission of the 

20 Federal agency), broad research topics, and 

21 topics that further 1 or more critical tech22 nologies or research priorities’’; 

23 (B) in subparagraph (A), by striking ‘‘or’’ 

24 at the end; and 

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

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1 ‘‘(C) the National Academy of Sciences, in 

2 the final report issued by the ‘America’s Energy 

3 Future: Technology Opportunities, Risks, and 

4 Tradeoffs’ project, and in any subsequent re5 port by the National Academy of Sciences on 

6 sustainability, energy, or alternative fuels; 

7 ‘‘(D) the National Institutes of Health, in 

8 the annual report on the rare diseases research 

9 activities of the National Institutes of Health 

10 for fiscal year 2005, and in any subsequent re11 port by the National Institutes of Health on 

12 rare diseases research activities; 

13 ‘‘(E) the National Academy of Sciences, in 

14 the final report issued by the ‘Transit Research 

15 and Development: Federal Role in the National 

16 Program’ project and the report entitled 

17 ‘Transportation Research, Development and 

18 Technology Strategic Plan (2006–2010)’ issued 

19 by the Research and Innovative Technology Ad20 ministration of the Department of Transpor21 tation, and in any subsequent report issued by 

22 the National Academy of Sciences or the De23 partment of Transportation on transportation 

24 and infrastructure; or 

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1 ‘‘(F) the national nanotechnology strategic 

2 plan required under section 2(c)(4) of the 21st 

3 Century Nanotechnology Research and Develop4 ment Act (15 U.S.C. 7501(c)(4)) and in any re5 port issued by the National Science and Tech6 nology Council Committee on Technology that 

7 focuses on areas of nanotechnology identified in 

8 such plan;’’; and 

9 (2) by adding after paragraph (12), as added 

10 by section 111(a) of this Act, the following: 

11 ‘‘(13) encourage applications under the SBIR 

12 program (to the extent that the projects relate to the 

13 mission of the Federal agency)— 

14 ‘‘(A) from small business concerns in geo15 graphic areas underrepresented in the SBIR 

16 program or located in rural areas (as defined in 

17 section 1393(a)(2) of the Internal Revenue 

18 Code of 1986); 

19 ‘‘(B) small business concerns owned and 

20 controlled by women; 

21 ‘‘(C) small business concerns owned and 

22 controlled by veterans; 

23 ‘‘(D) small business concerns owned and 

24 controlled by Native Americans; and 

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1 ‘‘(E) small business concerns located in a 

2 geographic area with an unemployment rates 

3 that exceed the national unemployment rate, 

4 based on the most recently available monthly 

5 publications of the Bureau of Labor Statistics 

6 of the Department of Labor.’’. 

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

8 Business Act (15 U.S.C. 638(o)), as amended by section 

9 111(b) of this Act, is amended— 

10 (1) in paragraph (3)— 

11 (A) in the matter preceding subparagraph 

12 (A), by striking ‘‘broad research topics and to 

13 topics that further 1 or more critical tech14 nologies’’ and inserting ‘‘applications to the 

15 Federal agency for support of projects relating 

16 to nanotechnology, security, energy, rare dis17 eases, transportation, or improving the security 

18 and quality of the water supply of the United 

19 States (to the extent that the projects relate to 

20 the mission of the Federal agency), broad re21 search topics, and topics that further 1 or more 

22 critical technologies or research priorities’’; 

23 (B) in subparagraph (A), by striking ‘‘or’’ 

24 at the end; and 

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

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1 ‘‘(C) the National Academy of Sciences, in 

2 the final report issued by the ‘America’s Energy 

3 Future: Technology Opportunities, Risks, and 

4 Tradeoffs’ project, and in any subsequent re5 port by the National Academy of Sciences on 

6 sustainability, energy, or alternative fuels; 

7 ‘‘(D) the National Institutes of Health, in 

8 the annual report on the rare diseases research 

9 activities of the National Institutes of Health 

10 for fiscal year 2005, and in any subsequent re11 port by the National Institutes of Health on 

12 rare diseases research activities; 

13 ‘‘(E) the National Academy of Sciences, in 

14 the final report issued by the ‘Transit Research 

15 and Development: Federal Role in the National 

16 Program’ project and the report entitled 

17 ‘Transportation Research, Development and 

18 Technology Strategic Plan (2006–2010)’ issued 

19 by the Research and Innovative Technology Ad20 ministration of the Department of Transpor21 tation, and in any subsequent report issued by 

22 the National Academy of Sciences or the De23 partment of Transportation on transportation 

24 and infrastructure; or 

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1 ‘‘(F) the national nanotechnology strategic 

2 plan required under section 2(c)(4) of the 21st 

3 Century Nanotechnology Research and Develop4 ment Act (15 U.S.C. 7501(c)(4)) and in any re5 port issued by the National Science and Tech6 nology Council Committee on Technology that 

7 focuses on areas of nanotechnology identified in 

8 such plan;’’; 

9 (2) in paragraph (15), by striking ‘‘and’’ at the 

10 end; 

11 (3) in paragraph (16), by striking the period at 

12 the end and inserting ‘‘; and’’; and 

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

14 ‘‘(17) encourage applications under the STTR 

15 program (to the extent that the projects relate to the 

16 mission of the Federal agency)— 

17 ‘‘(A) from small business concerns in geo18 graphic areas underrepresented in the STTR 

19 program or located in rural areas (as defined in 

20 section 1393(a)(2) of the Internal Revenue 

21 Code of 1986); 

22 ‘‘(B) small business concerns owned and 

23 controlled by women; 

24 ‘‘(C) small business concerns owned and 

25 controlled by veterans; 

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1 ‘‘(D) small business concerns owned and 

2 controlled by Native Americans; and 

3 ‘‘(E) small business concerns located in a 

4 geographic area with an unemployment rates 

5 that exceed the national unemployment rate, 

6 based on the most recently available monthly 

7 publications of the Bureau of Labor Statistics 

8 of the Department of Labor.’’. 

9 (c) RESEARCH AND DEVELOPMENT FOCUS.—Section 

10 9(x) of the Small Business Act (15 U.S.C. 638(x)) is 

11 amended— 

12 (1) by striking paragraph (2); and 

13 (2) by redesignating paragraph (3) as para14 graph (2). 

15 SEC. 502. REPORT ON SBIR AND STTR PROGRAM GOALS. 

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

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

18 the following: 

19 ‘‘(ll) ANNUAL REPORT ON SBIR AND STTR PRO20 GRAM GOALS.— 

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

22 each Federal agency required to participate in the 

23 SBIR program or the STTR program shall develop 

24 metrics to evaluate the effectiveness, and the benefit 

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1 gram and the STTR program of the Federal agency 

2 that— 

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

4 driven; 

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

6 agency; and 

7 ‘‘(C) include factors relating to the eco8 nomic impact of the programs. 

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

10 agency described in paragraph (1) shall conduct an 

11 annual evaluation using the metrics developed under 

12 paragraph (1) of— 

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

14 program of the Federal agency; and 

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

16 United States of the SBIR program and the 

17 STTR program of the Federal agency. 

18 ‘‘(3) REPORT.— 

19 ‘‘(A) IN GENERAL.—The head of each 

20 Federal agency described in paragraph (1) shall 

21 submit to the appropriate committees of Con22 gress and the Administrator an annual report 

23 describing in detail the results of an evaluation 

24 conducted under paragraph (2). 

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

2 The head of each Federal agency described in 

3 paragraph (1) shall make each report submitted 

4 under subparagraph (A) available to the public 

5 online. 

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

7 term ‘appropriate committees of Congress’ 

8 means— 

9 ‘‘(i) the Committee on Small Business 

10 and Entrepreneurship of the Senate; and 

11 ‘‘(ii) the Committee on Small Busi12 ness and the Committee on Science and 

13 Technology of the House of Representa14 tives.’’. 

15 SEC. 503. COMPETITIVE SELECTION PROCEDURES FOR 

16 SBIR AND STTR PROGRAMS. 

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

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

19 the following: 

20 ‘‘(mm) COMPETITIVE SELECTION PROCEDURES FOR

21 SBIR AND STTR PROGRAMS.—All funds awarded, appro22 priated, or otherwise made available in accordance with 

23 subsection (f) or (n) must be awarded pursuant to com24 petitive and merit-based selection procedures.’’. 

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Calendar No. 17 

112TH CONGRESS 

1ST SESSION S. 493 

A BILL 

To reauthorize and improve the SBIR and STTR 

programs, and for other purposes. 

MARCH, 9, 2011 

Reported with amendments 

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