II 

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 

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’’. 

6 SEC. 2. TABLE OF CONTENTS. 

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

Sec. 1. Short title. 

Sec. 2. Table of contents. 

Sec. 3. Definitions. 

TITLE I—REAUTHORIZATION OF THE SBIR AND STTR PROGRAMS 


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Sec. 101. Extension of termination dates. 

Sec. 102. Status of the Office of Technology. 

Sec. 103. SBIR allocation increase. 

Sec. 104. STTR allocation increase. 

Sec. 105. SBIR and STTR award levels. 

Sec. 106. Agency and program 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. 203. Technical assistance for awardees. 

Sec. 204. Commercialization Readiness Program at Department of Defense. 

Sec. 205. Commercialization Readiness Pilot Program for civilian agencies. 

Sec. 206. Accelerating cures. 

Sec. 207. 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. 208. Clarifying the definition of ‘‘Phase III’’. 

Sec. 209. 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. 

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. 

TITLE IV—POLICY DIRECTIVES 

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


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TITLE V—OTHER PROVISIONS 

Sec. 501. 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). 

15 TITLE I—REAUTHORIZATION OF 

16 THE SBIR AND STTR PROGRAMS 

17 SEC. 101. EXTENSION OF TERMINATION DATES. 

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

19 (15 U.S.C. 638(m)) is amended— 

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

21 follows through ‘‘the authorization’’ and inserting 

22 ‘‘TERMINATION.—The authorization’’; 


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1 (2) by striking ‘‘2008’’ and inserting ‘‘2019’’; 

2 and 

3 (3) by striking paragraph (2). 

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

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

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

8 GENERAL.—With respect’’; 

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

10 and 

11 (3) by striking clause (ii). 

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

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

14 638(b)) is amended— 

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

16 end; 

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

18 the end and inserting ‘‘; and’’; 

19 (3) by redesignating paragraph (8) as para20 graph (9); and 

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

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

23 carry out the responsibilities of the Administration 

24 under this section, which shall be— 


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1 ‘‘(A) headed by the Assistant Adminis2 trator for Technology, who shall report directly 

3 to the Administrator; and 

4 ‘‘(B) independent from the Office of Gov5 ernment Contracting of the Administration and 

6 sufficiently staffed and funded to comply with 

7 the oversight, reporting, and public database re8 sponsibilities assigned to the Office of Tech9 nology by the Administrator.’’. 

10 SEC. 103. SBIR ALLOCATION INCREASE. 

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

12 638(f)) is amended— 

13 (1) in paragraph (1)— 

14 (A) in the matter preceding subparagraph 

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

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

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

18 ‘‘and’’ at the end; and 

19 (C) by striking subparagraph (C) and in20 serting the following: 

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

22 budget in fiscal year 2013; 

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

24 budget in fiscal year 2014; 


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

2 budget in fiscal year 2015; 

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

4 budget in fiscal year 2016; 

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

6 budget in fiscal year 2017; 

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

8 budget in fiscal year 2018; 

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

10 budget in fiscal year 2019; 

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

12 budget in fiscal year 2020; 

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

14 budget in fiscal year 2021; 

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

16 budget in fiscal year 2022; and 

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

18 budget in fiscal year 2023 and each fiscal year 

19 thereafter,’’; and 

20 (2) in paragraph (2)— 

21 (A) by redesignating subparagraphs (A) 

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

23 adjusting the margins accordingly; 

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

25 inserting the following: 


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

2 and 

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

4 ‘‘(B) DEPARTMENT OF DEFENSE AND DE5 PARTMENT OF ENERGY.—For the Department 

6 of Defense and the Department of Energy, to 

7 the greatest extent practicable, the percentage 

8 of the extramural budget in excess of 2.5 per9 cent required to be expended with small busi10 ness concerns under subparagraphs (D) 

11 through (M) of paragraph (1)— 

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

13 or Phase II awards; and 

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

15 further the readiness levels of technologies 

16 developed under Phase II awards, includ17 ing conducting testing and evaluation to 

18 promote the transition of such technologies 

19 into commercial or defense products, or 

20 systems furthering the mission needs of 

21 the Department of Defense or the Depart22 ment of Energy, as the case may be.’’. 

23 SEC. 104. STTR ALLOCATION INCREASE. 

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

25 U.S.C. 638(n)(1)(B)) is amended— 


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

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

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

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

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

6 and 2014; 

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

8 and 2016; and 

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

10 and each fiscal year thereafter.’’. 

11 SEC. 105. SBIR AND STTR AWARD LEVELS. 

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

13 Small Business Act (15 U.S.C. 638(j)(2)(D)) is amend14 ed— 

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

16 ‘‘$150,000’’; and 

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

18 ‘‘$1,000,000’’. 

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

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

21 amended— 

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

23 ‘‘$150,000’’; and 

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

25 ‘‘$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. 

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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) EVALUATION CRITERIA.—A Federal agen9 cy may not use investment of venture capital as a 

10 criterion for the award of contracts under the SBIR 

11 program or STTR program.’’. 

12 (b) TECHNICAL AND CONFORMING AMENDMENT.— 

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

14 amended by adding at the end the following: 

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

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

17 means an entity described in clause (i), (v), or (vi) of sec18 tion 121.103(b)(5) of title 13, Code of Federal Regula19 tions (or any successor thereto).’’. 

20 (c) RULEMAKING TO ENSURE THAT FIRMS THAT

21 ARE MAJORITY-OWNED BY MULTIPLE VENTURE CAPITAL

22 OPERATING COMPANIES ARE ABLE TO PARTICIPATE IN

23 A PORTION OF THE SBIR PROGRAM.— 

24 (1) STATEMENT OF CONGRESSIONAL INTENT.— 

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1 trator should promulgate regulations to carry out 

2 the authority under section 9(cc) of the Small Busi3 ness Act, as added by this section, that— 

4 (A) permit small business concerns that 

5 are majority-owned by multiple venture capital 

6 operating companies to participate in the SBIR 

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

8 Small Business Act; 

9 (B) provide specific guidance for small 

10 business concerns that are majority-owned by 

11 multiple venture capital operating companies 

12 with regard to eligibility, participation, and af13 filiation rules; and 

14 (C) preserve and maintain the integrity of 

15 the SBIR program as a program for small busi16 ness concerns in the United States, prohibiting 

17 large businesses or large entities or foreign18 owned businesses or entities from participation 

19 in the program established under section 9 of 

20 the Small Business Act. 

21 (2) RULEMAKING REQUIRED.— 

22 (A) PROPOSED REGULATIONS.—Not later 

23 than 4 months after the date of enactment of 

24 this Act, the Administrator shall issue proposed 

25 regulations to amend section 121.103 (relating 


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1 to determinations of affiliation applicable to the 

2 SBIR program) and section 121.702 (relating 

3 to ownership and control standards and size 

4 standards applicable to the SBIR program) of 

5 title 13, Code of Federal Regulations, for firms 

6 that are majority-owned by multiple venture 

7 capital operating companies and participating 

8 in the SBIR program solely under the authority 

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

10 as added by this section. 

11 (B) FINAL REGULATIONS.—Not later than 

12 1 year after the date of enactment of this Act, 

13 and after providing notice of and opportunity 

14 for comment on the proposed regulations issued 

15 under subparagraph (A), the Administrator 

16 shall issue final or interim final regulations 

17 under this subsection. 

18 (3) CONTENTS.— 

19 (A) IN GENERAL.—The regulations issued 

20 under this subsection shall permit the participa21 tion of applicants majority-owned by multiple 

22 venture capital operating companies in the 

23 SBIR program in accordance with section 9(cc) 

24 of the Small Business Act, as added by this sec25 tion, unless the Administrator determines— 


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1 (i) in accordance with the size stand2 ards established under subparagraph (B), 

3 that the applicant is— 

4 (I) a large business or large enti5 ty; or 

6 (II) majority-owned or controlled 

7 by a large business or large entity; or 

8 (ii) in accordance with the criteria es9 tablished under subparagraph (C), that the 

10 applicant— 

11 (I) is a foreign business or a for12 eign entity or is not a citizen of the 

13 United States or alien lawfully admit14 ted for permanent residence; or 

15 (II) is majority-owned or con16 trolled by a foreign business, foreign 

17 entity, or person who is not a citizen 

18 of the United States or alien lawfully 

19 admitted for permanent residence. 

20 (B) SIZE STANDARDS.—Under the author21 ity to establish size standards under paragraphs 

22 (2) and (3) of section 3(a) of the Small Busi23 ness Act (15 U.S.C. 632(a)), the Administrator 

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

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1 cants seeking to participate in the SBIR pro2 gram solely under the authority under section 

3 9(cc) of the Small Business Act, as added by 

4 this section. 

5 (C) CRITERIA FOR DETERMINING FOREIGN

6 OWNERSHIP.—The Administrator shall establish 

7 criteria for determining whether an applicant 

8 meets the requirements under subparagraph 

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

10 consider whether the criteria should include— 

11 (i) whether the applicant is at least 51 

12 percent owned or controlled by citizens of 

13 the United States or domestic venture cap14 ital operating companies; 

15 (ii) whether the applicant is domiciled 

16 in the United States; and 

17 (iii) whether the applicant is a direct 

18 or indirect subsidiary of a foreign-owned 

19 firm, including whether the criteria should 

20 include that an applicant is a direct or in21 direct subsidiary of a foreign-owned entity 

22 if— 

23 (I) any venture capital operating 

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1 direct subsidiary of a foreign-owned 

2 entity; or 

3 (II) in the aggregate, entities 

4 that are direct or indirect subsidiaries 

5 of foreign-owned entities own more 

6 than 49 percent of the applicant. 

7 (D) CRITERIA FOR DETERMINING AFFILI8 ATION.—The Administrator shall establish cri9 teria, in accordance with paragraph (1), for de10 termining whether an applicant is affiliated 

11 with a venture capital operating company or 

12 any other business that the venture capital op13 erating company has financed and, in estab14 lishing the criteria, shall specify that— 

15 (i) if a venture capital operating com16 pany that is determined to be affiliated 

17 with an applicant is a minority investor in 

18 the applicant, the portfolio companies of 

19 the venture capital operating company 

20 shall not be determined to be affiliated 

21 with the applicant, unless— 

22 (I) the venture capital operating 

23 company owns a majority of the port24 folio company; or 


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1 (II) the venture capital operating 

2 company holds a majority of the seats 

3 on the board of directors of the port4 folio company; 

5 (ii) subject to clause (i), the Adminis6 trator retains the authority to determine 

7 whether a venture capital operating com8 pany is affiliated with an applicant, includ9 ing establishing other criteria; 

10 (iii) the Administrator may not deter11 mine that a portfolio company of a venture 

12 capital operating company is affiliated with 

13 an applicant based solely on one or more 

14 shared investors; and 

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

16 (iii), the Administrator retains the author17 ity to determine whether a portfolio com18 pany of a venture capital operating com19 pany is affiliated with an applicant based 

20 on factors independent of whether there is 

21 a shared investor, such as whether there 

22 are contractual obligations between the 

23 portfolio company and the applicant. 

24 (4) ENFORCEMENT.—If the Administrator does 

25 not issue final or interim final regulations under this 


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

2 the date of enactment of this Act, the Administrator 

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

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

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

6 Act to extend temporarily certain authorities of the 

7 Small Business Administration’’, approved October 

8 10, 2006 (Public Law 109–316; 120 Stat. 1742)) 

9 during the period beginning on the date that is 1 

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

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

12 interim final regulations are issued. 

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

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

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

16 Act, as added by this section. 

17 (d) ASSISTANCE FOR DETERMINING AFFILIATES.— 

18 (1) CLEAR EXPLANATION REQUIRED.—Not 

19 later than 30 days after the date of enactment of 

20 this Act, the Administrator shall post on the Web 

21 site of the Administration (with a direct link dis22 played on the homepage of the Web site of the Ad23 ministration or the SBIR and STTR Web sites of 

24 the Administration)— 


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1 (A) a clear explanation of the SBIR and 

2 STTR affiliation rules under part 121 of title 

3 13, Code of Federal Regulations; and 

4 (B) contact information for officers or em5 ployees of the Administration who— 

6 (i) upon request, shall review an issue 

7 relating to the rules described in subpara8 graph (A); and 

9 (ii) shall respond to a request under 

10 clause (i) not later than 20 business days 

11 after the date on which the request is re12 ceived. 

13 (2) INCLUSION OF AFFILIATION RULES FOR

14 CERTAIN SMALL BUSINESS CONCERNS.—On and 

15 after the date on which the final regulations under 

16 subsection (c) are issued, the Administrator shall 

17 post on the Web site of the Administration informa18 tion relating to the regulations, in accordance with 

19 paragraph (1). 

20 SEC. 109. SBIR AND STTR SPECIAL ACQUISITION PREF21 ERENCE. 

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

23 638(r)) is amended by adding at the end the following: 

24 ‘‘(4) PHASE III AWARDS.—To the greatest ex25 tent practicable, Federal agencies and Federal prime 


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1 contractors shall issue Phase III awards relating to 

2 technology, including sole source awards, to the 

3 SBIR and STTR award recipients that developed 

4 the technology.’’. 

5 SEC. 110. COLLABORATING WITH FEDERAL LABORATORIES 

6 AND RESEARCH AND DEVELOPMENT CEN7 TERS. 

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

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

10 the following: 

11 ‘‘(dd) COLLABORATING WITH FEDERAL LABORA12 TORIES AND RESEARCH AND DEVELOPMENT CENTERS.— 

13 ‘‘(1) AUTHORIZATION.—Subject to the limita14 tions under this section, the head of each partici15 pating Federal agency may make SBIR and STTR 

16 awards to any eligible small business concern that— 

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

18 with a Federal laboratory or federally funded 

19 research and development center for portions of 

20 the activities to be performed under that award; 

21 or 

22 ‘‘(B) has entered into a cooperative re23 search and development agreement (as defined 

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1 nology Innovation Act of 1980 (15 U.S.C. 

2 3710a(d))) with a Federal laboratory. 

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

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

5 upon entering into agreement with any Federal 

6 laboratory or any federally funded laboratory or 

7 research and development center for any por8 tion of the activities to be performed under that 

9 award; 

10 ‘‘(B) approve an agreement between a 

11 small business concern receiving a SBIR or 

12 STTR award and a Federal laboratory or feder13 ally funded laboratory or research and develop14 ment center, if the small business concern per15 forms a lesser portion of the activities to be 

16 performed under that award than required by 

17 this section and by the SBIR Policy Directive 

18 and the STTR Policy Directive of the Adminis19 trator; or 

20 ‘‘(C) approve an agreement that violates 

21 any provision, including any data rights protec22 tions provision, of this section or the SBIR and 

23 the STTR Policy Directives. 

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

25 days after the date of enactment of this subsection, 


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1 the Administrator shall modify the SBIR Policy Di2 rective and the STTR Policy Directive issued under 

3 this section to ensure that small business concerns— 

4 ‘‘(A) have the flexibility to use the re5 sources of the Federal laboratories and feder6 ally funded research and development centers; 

7 and 

8 ‘‘(B) are not mandated to enter into agree9 ment with any Federal laboratory or any feder10 ally funded laboratory or research and develop11 ment center as a condition of an award.’’. 

12 SEC. 111. NOTICE REQUIREMENT. 

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

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

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

16 end; 

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

18 the end and inserting a semicolon; and 

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

20 ‘‘(12) provide timely notice to the Adminis21 trator of any case or controversy before any Federal 

22 judicial or administrative tribunal concerning the 

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

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

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


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1 (1) by striking paragraph (15); 

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

3 the end and inserting ‘‘; and’’; 

4 (3) by redesignating paragraph (16) as para5 graph (15); and 

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

7 ‘‘(16) provide timely notice to the Adminis8 trator of any case or controversy before any Federal 

9 judicial or administrative tribunal concerning the 

10 STTR program of the Federal agency.’’. 

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

12 SEQUENTIAL PHASE II AWARDS FOR SBIR OR 

13 STTR FUNDED PROJECTS. 

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

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

16 the following: 

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

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

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

20 remains eligible to receive an additional Phase II SBIR 

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


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1 TITLE II—OUTREACH AND COM2 MERCIALIZATION INITIA3 TIVES 

4 SEC. 201. RURAL AND STATE OUTREACH. 

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

6 Act (15 U.S.C. 638) is amended by inserting after sub7 section (r) the following: 

8 ‘‘(s) FEDERAL AND STATE TECHNOLOGY PARTNER9 SHIP PROGRAM.— 

10 ‘‘(1) DEFINITIONS.—In this subsection, the fol11 lowing definitions apply: 

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

13 means an entity, organization, or individual 

14 that submits a proposal for an award or a coop15 erative agreement under this subsection. 

16 ‘‘(B) FAST PROGRAM.—The term ‘FAST 

17 program’ means the Federal and State Tech18 nology Partnership Program established under 

19 this subsection. 

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

21 means a person that receives an award or be22 comes party to a cooperative agreement under 

23 this subsection. 

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

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1 lumbia, the Commonwealth of Puerto Rico, the 

2 Virgin Islands, Guam, and American Samoa. 

3 ‘‘(E) DEFINITIONS RELATING TO MEN4 TORING NETWORKS.—The terms ‘business ad5 vice and counseling’, ‘mentor’, and ‘mentoring 

6 network’ have the meanings given those terms 

7 in section 34(e). 

8 ‘‘(2) ESTABLISHMENT OF PROGRAM.—The Ad9 ministrator shall establish a program to be known as 

10 the Federal and State Technology Partnership Pro11 gram, the purpose of which shall be to strengthen 

12 the technological competitiveness of small business 

13 concerns in the States. 

14 ‘‘(3) GRANTS AND COOPERATIVE AGREE15 MENTS.— 

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

17 FAST program, the Administrator and the pro18 gram managers for the SBIR program and 

19 STTR program at the National Science Foun20 dation, the Department of Defense, and any 

21 other Federal agency determined appropriate by 

22 the Administrator shall jointly review proposals 

23 submitted by applicants and may make awards 

24 or enter into cooperative agreements under this 

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1 ation set forth in subparagraph (B), in order to 

2 enhance or develop in a State— 

3 ‘‘(i) technology research and develop4 ment by small business concerns; 

5 ‘‘(ii) technology transfer from univer6 sity research to technology-based small 

7 business concerns; 

8 ‘‘(iii) technology deployment and dif9 fusion benefitting small business concerns; 

10 ‘‘(iv) the technological capabilities of 

11 small business concerns through the estab12 lishment or operation of consortia com13 prised of entities, organizations, or individ14 uals, including— 

15 ‘‘(I) State and local development 

16 agencies and entities; 

17 ‘‘(II) representatives of tech18 nology-based small business concerns; 

19 ‘‘(III) industries and emerging 

20 companies; 

21 ‘‘(IV) universities; and 

22 ‘‘(V) small business development 

23 centers; and 

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

25 technical assistance to technology-based 


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1 small business concerns participating in or 

2 interested in participating in an SBIR pro3 gram or STTR program, including initia4 tives— 

5 ‘‘(I) to make grants or loans to 

6 companies to pay a portion or all of 

7 the cost of developing SBIR or STTR 

8 proposals; 

9 ‘‘(II) to establish or operate a 

10 Mentoring Network within the FAST 

11 program to provide business advice 

12 and counseling that will assist small 

13 business concerns that have been 

14 identified by FAST program partici15 pants, program managers of partici16 pating SBIR agencies, the Adminis17 tration, or other entities that are 

18 knowledgeable about the SBIR and 

19 STTR programs as good candidates 

20 for the SBIR and STTR programs, 

21 and that would benefit from men22 toring, in accordance with section 34; 

23 ‘‘(III) to create or participate in 

24 a training program for individuals 

25 providing SBIR or STTR outreach 


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1 and assistance at the State and local 

2 levels; and 

3 ‘‘(IV) to encourage the commer4 cialization of technology developed 

5 through funding under the SBIR pro6 gram or the STTR program. 

7 ‘‘(B) SELECTION CONSIDERATIONS.—In 

8 making awards or entering into cooperative 

9 agreements under this subsection, the Adminis10 trator and the program managers referred to in 

11 subparagraph (A)— 

12 ‘‘(i) may only consider proposals by 

13 applicants that intend to use a portion of 

14 the Federal assistance provided under this 

15 subsection to provide outreach, financial 

16 support, or technical assistance to tech17 nology-based small business concerns par18 ticipating in or interested in participating 

19 in the SBIR program or STTR program; 

20 and 

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

22 ‘‘(I) whether the applicant has 

23 demonstrated that the assistance to 

24 be provided would address unmet 

25 needs of small business concerns in 


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1 the community, and whether it is im2 portant to use Federal funding for the 

3 proposed activities; 

4 ‘‘(II) whether the applicant has 

5 demonstrated that a need exists to in6 crease the number or success of small 

7 high-technology businesses in the 

8 State or an area of the State, as 

9 measured by the number of Phase I 

10 and Phase II SBIR awards that have 

11 historically been received by small 

12 business concerns in the State or area 

13 of the State; 

14 ‘‘(III) whether the projected costs 

15 of the proposed activities are reason16 able; 

17 ‘‘(IV) whether the proposal inte18 grates and coordinates the proposed 

19 activities with other State and local 

20 programs assisting small high-tech21 nology firms in the State; 

22 ‘‘(V) the manner in which the ap23 plicant will measure the results of the 

24 activities to be conducted; and 


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1 ‘‘(VI) whether the proposal ad2 dresses the needs of small business 

3 concerns— 

4 ‘‘(aa) owned and controlled 

5 by women; 

6 ‘‘(bb) that are socially and 

7 economically disadvantaged small 

8 business concerns (as defined in 

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

10 ‘‘(cc) that are HUBZone 

11 small business concerns; 

12 ‘‘(dd) located in areas that 

13 have historically not participated 

14 in the SBIR and STTR pro15 grams; 

16 ‘‘(ee) owned and controlled 

17 by service-disabled veterans; 

18 ‘‘(ff) owned and controlled 

19 by Native Americans; and 

20 ‘‘(gg) located in geographic 

21 areas with an unemployment rate 

22 that exceeds the national unem23 ployment rate, based on the most 

24 recently available monthly publi25 cations of the Bureau of Labor 


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1 Statistics of the Department of 

2 Labor. 

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

4 proposal may be submitted for inclusion in the 

5 FAST program under this subsection to provide 

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

7 ‘‘(D) PROCESS.—Proposals and applica8 tions for assistance under this subsection shall 

9 be in such form and subject to such procedures 

10 as the Administrator shall establish. The Ad11 ministrator shall promulgate regulations estab12 lishing standards for the consideration of pro13 posals under subparagraph (B), including 

14 standards regarding each of the considerations 

15 identified in subparagraph (B)(ii). 

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

17 carrying out the FAST program, the Administrator 

18 shall cooperate and coordinate with— 

19 ‘‘(A) Federal agencies required by this sec20 tion to have an SBIR program; and 

21 ‘‘(B) entities, organizations, and individ22 uals actively engaged in enhancing or devel23 oping the technological capabilities of small 

24 business concerns, including— 


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1 ‘‘(i) State and local development agen2 cies and entities; 

3 ‘‘(ii) State committees established 

4 under the Experimental Program to Stim5 ulate Competitive Research of the National 

6 Science Foundation (as established under 

7 section 113 of the National Science Foun8 dation Authorization Act of 1988 (42 

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

10 ‘‘(iii) State science and technology 

11 councils; and 

12 ‘‘(iv) representatives of technology13 based small business concerns. 

14 ‘‘(5) ADMINISTRATIVE REQUIREMENTS.— 

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

16 cooperative agreements under this subsection 

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

18 a competitive basis. 

19 ‘‘(B) MATCHING REQUIREMENTS.— 

20 ‘‘(i) IN GENERAL.—The non-Federal 

21 share of the cost of an activity (other than 

22 a planning activity) carried out using an 

23 award or under a cooperative agreement 

24 under this subsection shall be— 


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1 ‘‘(I) except as provided in clause 

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

3 in the case of a recipient that will 

4 serve small business concerns located 

5 in 1 of the 18 States receiving the 

6 fewest Phase I SBIR awards; 

7 ‘‘(II) except as provided in clause 

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

9 dollar, in the case of a recipient that 

10 will serve small business concerns lo11 cated in 1 of the 16 States receiving 

12 the greatest number of Phase I SBIR 

13 awards; and 

14 ‘‘(III) except as provided in 

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

16 Federal dollar, in the case of a recipi17 ent that will serve small business con18 cerns located in a State that is not de19 scribed in subclause (I) or (II) that is 

20 receiving Phase I SBIR awards. 

21 ‘‘(ii) LOW-INCOME AREAS.—The non22 Federal share of the cost of the activity 

23 carried out using an award or under a co24 operative agreement under this subsection 

25 shall be 35 cents for each Federal dollar 


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1 that will be directly allocated by a recipient 

2 described in clause (i) to serve small busi3 ness concerns located in a qualified census 

4 tract, as that term is defined in section 

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

6 Code of 1986. Federal dollars not so allo7 cated by that recipient shall be subject to 

8 the matching requirements of clause (i). 

9 ‘‘(iii) RURAL AREAS.— 

10 ‘‘(I) IN GENERAL.—Except as 

11 provided in subclause (II), the non12 Federal share of the cost of the activ13 ity carried out using an award or 

14 under a cooperative agreement under 

15 this subsection shall be 35 cents for 

16 each Federal dollar that will be di17 rectly allocated by a recipient de18 scribed in clause (i) to serve small 

19 business concerns located in a rural 

20 area. 

21 ‘‘(II) ENHANCED RURAL

22 AWARDS.—For a recipient located in a 

23 rural area that is located in a State 

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1 ity carried out using an award or 

2 under a cooperative agreement under 

3 this subsection shall be 15 cents for 

4 each Federal dollar that will be di5 rectly allocated by a recipient de6 scribed in clause (i) to serve small 

7 business concerns located in the rural 

8 area. 

9 ‘‘(III) DEFINITION OF RURAL

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

11 area’ has the meaning given that term 

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

13 Revenue Code of 1986. 

14 ‘‘(iv) TYPES OF FUNDING.—The non15 Federal share of the cost of an activity 

16 carried out by a recipient shall be com17 prised of not less than 50 percent cash and 

18 not more than 50 percent of indirect costs 

19 and in-kind contributions, except that no 

20 such costs or contributions may be derived 

21 from funds from any other Federal pro22 gram. 

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

24 fiscal year after the date of enactment of 

25 the SBIR/STTR Reauthorization Act of 


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1 2011, and each fiscal year thereafter, 

2 based on the statistics for the most recent 

3 full fiscal year for which the Administrator 

4 has compiled statistics, the Administrator 

5 shall reevaluate the ranking of each State 

6 for purposes of clause (i). 

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

8 cooperative agreements entered into under this 

9 subsection for multiple years, not to exceed 5 

10 years in total. 

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

12 shall submit an annual report to the Committee on 

13 Small Business of the Senate and the Committee on 

14 Science and the Committee on Small Business of the 

15 House of Representatives regarding— 

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

17 provided and cooperative agreements entered 

18 into under the FAST program during the pre19 ceding year; 

20 ‘‘(B) a list of recipients under this sub21 section, including their location and the activi22 ties being performed with the awards made or 

23 under the cooperative agreements entered into; 

24 and 


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1 ‘‘(C) the Mentoring Networks and the 

2 mentoring database, as provided for under sec3 tion 34, including— 

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

5 mentoring information in the database re6 quired by subsection (k); and 

7 ‘‘(ii) the status of the implementation 

8 and description of the usage of the Men9 toring Networks. 

10 ‘‘(7) PROGRAM LEVELS.— 

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

12 be appropriated to carry out the FAST pro13 gram, including Mentoring Networks, under 

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

15 each of fiscal years 2011 through 2016. 

16 ‘‘(B) MENTORING DATABASE.—Of the 

17 total amount made available under subpara18 graph (A) for fiscal years 2011 through 2016, 

19 a reasonable amount, not to exceed a total of 

20 $500,000, may be used by the Administration 

21 to carry out section 34(d). 

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

23 out the FAST program under this subsection shall 

24 terminate on September 30, 2016.’’. 


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1 (b) TECHNICAL AND CONFORMING AMENDMENTS.— 

2 The Small Business Act (15 U.S.C. 631 et seq.) is amend3 ed— 

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

5 (2) by redesignating sections 35 through 43 as 

6 sections 34 through 42, respectively; 

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

8 638(k)(1)(D)), by striking ‘‘section 35(d)’’ and in9 serting ‘‘section 34(d)’’; 

10 (4) in section 34 (15 U.S.C. 657e), as so redes11 ignated— 

12 (A) in subsection (c)(1), by striking ‘‘sec13 tion 34(c)(1)(E)(ii)’’ and inserting ‘‘section 

14 9(s)(3)(A)(v)(II)’’; 

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

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

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

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

19 definitions apply: 

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

21 The term ‘business advice and counseling’ means 

22 providing advice and assistance on matters described 

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

24 guide them through the SBIR and STTR program 


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1 process, from application to award and successful 

2 completion of each phase of the program. 

3 ‘‘(2) FAST PROGRAM.—The term ‘FAST pro4 gram’ means the Federal and State Technology 

5 Partnership Program established under section 9(s). 

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

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

8 ‘‘(4) MENTORING NETWORK.—The term ‘Men9 toring Network’ means an association, organization, 

10 coalition, or other entity (including an individual) 

11 that meets the requirements of subsection (c). 

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

13 person that receives an award or becomes party to 

14 a cooperative agreement under this section. 

15 ‘‘(6) SBIR PROGRAM.—The term ‘SBIR pro16 gram’ has the same meaning as in section 9(e)(4). 

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

18 the several States, the District of Columbia, the 

19 Commonwealth of Puerto Rico, the Virgin Islands, 

20 Guam, and American Samoa. 

21 ‘‘(8) STTR PROGRAM.—The term ‘STTR pro22 gram’ has the same meaning as in section 9(e)(6).’’; 

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

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

25 ‘‘section 42’’; 


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

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

3 ‘‘section 42’’; and 

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

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

6 ‘‘section 42’’. 

7 SEC. 202. SBIR–STEM WORKFORCE DEVELOPMENT GRANT 

8 PILOT PROGRAM. 

9 (a) PILOT PROGRAM ESTABLISHED.—From amounts 

10 made available to carry out this section, the Administrator 

11 shall establish a SBIR–STEM Workforce Development 

12 Grant Pilot Program to encourage the business commu13 nity to provide workforce development opportunities for 

14 college students, in the fields of science, technology, engi15 neering, and math (in this section referred to as ‘‘STEM 

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

17 economically disadvantaged individuals, from rural areas, 

18 or from areas with high unemployment, as determined by 

19 the Administrator, by providing a SBIR bonus grant. 

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

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

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

23 grant under subsection (a) that provides an internship 

24 program for STEM college students. 


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

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

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

4 not more than $10,000 per year. 

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

6 funding under this section, the Administrator shall submit 

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

8 of the Small Business Act (15 U.S.C. 638(b)(7)) the re9 sults of the SBIR–STEM Workforce Development Grant 

10 Pilot Program. 

11 (e) AUTHORIZATION OF APPROPRIATIONS.—There 

12 are authorized to be appropriated to carry out this sec13 tion— 

14 (1) $1,000,000 for fiscal year 2012; 

15 (2) $1,000,000 for fiscal year 2013; 

16 (3) $1,000,000 for fiscal year 2014; 

17 (4) $1,000,000 for fiscal year 2015; and 

18 (5) $1,000,000 for fiscal year 2016. 

19 SEC. 203. TECHNICAL ASSISTANCE FOR AWARDEES. 

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

21 638(q)) is amended— 

22 (1) in paragraph (1)— 

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

24 ‘‘SBIR program’’; and 


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1 (B) by striking ‘‘SBIR projects’’ and in2 serting ‘‘SBIR or STTR projects’’; 

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

4 inserting ‘‘5 years’’; and 

5 (3) in paragraph (3)— 

6 (A) in subparagraph (A)— 

7 (i) by inserting ‘‘or STTR’’ after 

8 ‘‘SBIR’’; and 

9 (ii) by striking ‘‘$4,000’’ and insert10 ing ‘‘$5,000’’; 

11 (B) by striking subparagraph (B) and in12 serting the following: 

13 ‘‘(B) PHASE II.—A Federal agency de14 scribed in paragraph (1) may— 

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

16 Phase II SBIR or STTR award, through a 

17 vendor selected under paragraph (2), the 

18 services described in paragraph (1), in an 

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

20 year; or 

21 ‘‘(ii) authorize the recipient of a 

22 Phase II SBIR or STTR award to pur23 chase the services described in paragraph 

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

25 $5,000 per year, which shall be in addition 


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

2 and 

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

4 ‘‘(C) FLEXIBILITY.—In carrying out sub5 paragraphs (A) and (B), each Federal agency 

6 shall provide the allowable amounts to a recipi7 ent that meets the eligibility requirements 

8 under the applicable subparagraph, if the re9 cipient requests to seek technical assistance 

10 from an individual or entity other than the ven11 dor selected under paragraph (2) by the Fed12 eral agency. 

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

14 not— 

15 ‘‘(i) use the amounts authorized under 

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

17 selected under paragraph (2) provides the 

18 technical assistance to the recipient; or 

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

20 under paragraph (2) under which the 

21 amount provided for technical assistance is 

22 based on total number of Phase I or Phase 

23 II awards.’’. 


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1 SEC. 204. COMMERCIALIZATION READINESS PROGRAM AT 

2 DEPARTMENT OF DEFENSE. 

3 (a) IN GENERAL.—Section 9(y) of the Small Busi4 ness Act (15 U.S.C. 638(y)) is amended— 

5 (1) in the subsection heading, by striking 

6 ‘‘PILOT’’ and inserting ‘‘READINESS’’; 

7 (2) by striking ‘‘Pilot’’ each place that term ap8 pears and inserting ‘‘Readiness’’; 

9 (3) in paragraph (1)— 

10 (A) by inserting ‘‘or Small Business Tech11 nology Transfer Program’’ after ‘‘Small Busi12 ness Innovation Research Program’’; and 

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

14 ‘‘The authority to create and administer a Com15 mercialization Readiness Program under this 

16 subsection may not be construed to eliminate or 

17 replace any other SBIR program or STTR pro18 gram that enhances the insertion or transition 

19 of SBIR or STTR technologies, including any 

20 such program in effect on the date of enact21 ment of the National Defense Authorization Act 

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

23 119 Stat. 3136).’’; 

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

25 Business Technology Transfer Program’’ after 

26 ‘‘Small Business Innovation Research Program’’; 


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

2 (6) by inserting after paragraph (4) the fol3 lowing: 

4 ‘‘(5) INSERTION INCENTIVES.—For any con5 tract with a value of not less than $100,000,000, the 

6 Secretary of Defense is authorized to— 

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

8 Phase III technologies in subcontracting plans; 

9 and 

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

11 contract to report the number and dollar 

12 amount of contracts entered into by that prime 

13 contractor for Phase III SBIR or STTR 

14 projects. 

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

16 INSERTION.—The Secretary of Defense shall— 

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

18 Phase II SBIR contracts and the number of 

19 Phase II STTR contracts awarded by that Sec20 retary that lead to technology transition into 

21 programs of record or fielded systems; 

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

23 enactment of the SBIR/STTR Reauthorization 

24 Act of 2011, or create new incentives, to en25 courage agency program managers and prime 


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1 contractors to meet the goal under subpara2 graph (A); and 

3 ‘‘(C) include in the annual report to Con4 gress the percentage of contracts described in 

5 subparagraph (A) awarded by that Secretary, 

6 and information on the ongoing status of 

7 projects funded through the Commercialization 

8 Readiness Program and efforts to transition 

9 these technologies into programs of record or 

10 fielded systems.’’. 

11 (b) TECHNICAL AND CONFORMING AMENDMENT.— 

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

13 638(i)(1)) is amended by inserting ‘‘(including awards 

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

15 SEC. 205. COMMERCIALIZATION READINESS PILOT PRO16 GRAM FOR CIVILIAN AGENCIES. 

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 ‘‘(ff) PILOT PROGRAM.— 

21 ‘‘(1) AUTHORIZATION.—The head of each cov22 ered Federal agency may allocate not more than 10 

23 percent of the funds allocated to the SBIR program 

24 and the STTR program of the covered Federal agen25 cy— 


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1 ‘‘(A) for awards for technology develop2 ment, testing, and evaluation of SBIR and 

3 STTR Phase II technologies; or 

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

5 research and development conducted under the 

6 SBIR or STTR programs to Phase III. 

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

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

9 agency may not establish a pilot program unless 

10 the covered Federal agency makes a written ap11 plication to the Administrator, not later than 

12 90 days before to the first day of the fiscal year 

13 in which the pilot program is to be established, 

14 that describes a compelling reason that addi15 tional investment in SBIR or STTR tech16 nologies is necessary, including unusually high 

17 regulatory, systems integration, or other costs 

18 relating to development or manufacturing of 

19 identifiable, highly promising small business 

20 technologies or a class of such technologies ex21 pected to substantially advance the mission of 

22 the agency. 

23 ‘‘(B) DETERMINATION.—The Adminis24 trator shall— 


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1 ‘‘(i) make a determination regarding 

2 an application submitted under subpara3 graph (A) not later than 30 days before 

4 the first day of the fiscal year for which 

5 the application is submitted; 

6 ‘‘(ii) publish the determination in the 

7 Federal Register; and 

8 ‘‘(iii) make a copy of the determina9 tion and any related materials available to 

10 the Committee on Small Business and En11 trepreneurship of the Senate and the Com12 mittee on Small Business of the House of 

13 Representatives. 

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

15 of a covered Federal agency may not make an award 

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

17 amounts generally established for Phase II awards 

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

19 ‘‘(4) REGISTRATION.—Any applicant that re20 ceives an award under a pilot program shall register 

21 with the Administrator in a registry that is available 

22 to the public. 

23 ‘‘(5) REPORT.—The head of each covered Fed24 eral agency shall include in the annual report of the 

25 covered Federal agency to the Administrator an 


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1 analysis of the various activities considered for inclu2 sion in the pilot program of the covered Federal 

3 agency and a statement of the reasons why each ac4 tivity considered was included or not included, as the 

5 case may be. 

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

7 a pilot program under this section expires at the end 

8 of fiscal year 2014. 

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

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

11 ‘‘(i) means a Federal agency partici12 pating in the SBIR program or the STTR 

13 program; and 

14 ‘‘(ii) does not include the Department 

15 of Defense; and 

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

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

18 SEC. 206. ACCELERATING CURES. 

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

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

21 42, as redesignated by section 201 of this Act, the fol22 lowing: 

23 ‘‘SEC. 43. SMALL BUSINESS INNOVATION RESEARCH PRO24 GRAM. 

25 ‘‘(a) NIH CURES PILOT.— 


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1 ‘‘(1) ESTABLISHMENT.—An independent advi2 sory board shall be established at the National Acad3 emy of Sciences (in this section referred to as the 

4 ‘advisory board’) to conduct periodic evaluations of 

5 the SBIR program (as that term is defined in sec6 tion 9) of each of the National Institutes of Health 

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

8 and centers for the purpose of improving the man9 agement of the SBIR program through data-driven 

10 assessment. 

11 ‘‘(2) MEMBERSHIP.— 

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

13 shall consist of— 

14 ‘‘(i) the Director of the NIH; 

15 ‘‘(ii) the Director of the SBIR pro16 gram of the NIH; 

17 ‘‘(iii) senior NIH agency managers, 

18 selected by the Director of NIH; 

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

20 Council of the National Academy of 

21 Sciences in consultation with the Associate 

22 Administrator for Technology of the Ad23 ministration and the Director of the Office 

24 of Science and Technology Policy; and 


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1 ‘‘(v) owners or operators of small 

2 business concerns that have received an 

3 award under the SBIR program of the 

4 NIH, selected by the Associate Adminis5 trator for Technology of the Administra6 tion. 

7 ‘‘(B) NUMBER OF MEMBERS.—The total 

8 number of members selected under clauses (iii), 

9 (iv), and (v) of subparagraph (A) shall not ex10 ceed 10. 

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

12 number of members of the advisory board se13 lected under clauses (i), (ii), (iii), and (iv) of 

14 subparagraph (A) shall be equal to the number 

15 of members of the advisory board selected 

16 under subparagraph (A)(v). 

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

18 the evidence-base guiding SBIR program decisions and 

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

20 shall address the gaps and deficiencies in the data collec21 tion concerns identified in the 2007 report of the National 

22 Academy of Science entitled ‘An Assessment of the Small 

23 Business Innovation Research Program at the NIH’. 

24 ‘‘(c) PILOT PROGRAM.— 


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

2 program of the NIH may initiate a pilot program, 

3 under a formal mechanism for designing, imple4 menting, and evaluating pilot programs, to spur in5 novation and to test new strategies that may en6 hance the development of cures and therapies. 

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

8 SBIR program of the NIH may consider conducting 

9 a pilot program to include individuals with success10 ful SBIR program experience in study sections, hir11 ing individuals with small business development ex12 perience for staff positions, separating the commer13 cial and scientific review processes, and examining 

14 the impact of the trend toward larger awards on the 

15 overall program. 

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

17 NIH shall submit an annual report to Congress and the 

18 advisory board on the activities of the SBIR program of 

19 the NIH under this section. 

20 ‘‘(e) SBIR GRANTS AND CONTRACTS.— 

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

22 contracts under the SBIR program of the NIH each 

23 SBIR program manager shall emphasize applica24 tions that identify products, processes, technologies, 


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1 and services that may enhance the development of 

2 cures and therapies. 

3 ‘‘(2) EXAMINATION OF COMMERCIALIZATION

4 AND OTHER METRICS.—The advisory board shall 

5 evaluate the implementation of the requirement 

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

8 and collected by the SBIR program of the NIH. 

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

10 practicable, the Director of the SBIR program of 

11 the NIH shall reduce the time period between Phase 

12 I and Phase II funding of grants and contracts 

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

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

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

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

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

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

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

22 (15 U.S.C. 631 et seq.) is amended— 

23 (1) by striking section 43, as added by sub24 section (a); and 


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1 (2) by redesignating sections 44 and 45 as sec2 tions 43 and 44, respectively. 

3 SEC. 207. FEDERAL AGENCY ENGAGEMENT WITH SBIR AND 

4 STTR AWARDEES THAT HAVE BEEN AWARDED 

5 MULTIPLE PHASE I AWARDS BUT HAVE NOT 

6 BEEN AWARDED PHASE II AWARDS. 

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

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

9 the following: 

10 ‘‘(gg) REQUIREMENTS RELATING TO FEDERAL

11 AGENCY ENGAGEMENT WITH CERTAIN PHASE I SBIR 

12 AND STTR AWARDEES.— 

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

14 ‘covered awardee’ means a small business concern 

15 that— 

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

17 over multiple years, as determined by the head 

18 of a Federal agency, under the SBIR program 

19 or the STTR program of the Federal agency; 

20 and 

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

22 ‘‘(i) under the SBIR program or 

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

24 Federal agency described in subparagraph 

25 (A); or 


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1 ‘‘(ii) relating to a Phase I award de2 scribed in subparagraph (A) under the 

3 SBIR program or the STTR program of 

4 another Federal agency. 

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

6 each Federal agency that participates in the SBIR 

7 program or the STTR program shall develop per8 formance measures for any covered awardee relating 

9 to commercializing research or research and develop10 ment activities under the SBIR program or the 

11 STTR program of the Federal agency.’’. 

12 SEC. 208. CLARIFYING THE DEFINITION OF ‘‘PHASE III’’. 

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

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

15 (1) in paragraph (4)(C), in the matter pre16 ceding clause (i), by inserting ‘‘for work that derives 

17 from, extends, or completes efforts made under prior 

18 funding agreements under the SBIR program’’ after 

19 ‘‘phase’’; 

20 (2) in paragraph (6)(C), in the matter pre21 ceding clause (i), by inserting ‘‘for work that derives 

22 from, extends, or completes efforts made under prior 

23 funding agreements under the STTR program’’ after 

24 ‘‘phase’’; 


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

2 end; 

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

4 the end and inserting a semicolon; and 

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

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

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

8 processes, technologies, or services; and 

9 ‘‘(B) the production and delivery of prod10 ucts, processes, technologies, or services for sale 

11 (whether by the originating party or by others) 

12 to or use by the Federal Government or com13 mercial markets;’’. 

14 (b) TECHNICAL AND CONFORMING AMENDMENTS.— 

15 The Small Business Act (15 U.S.C. 631 et seq.) is amend16 ed— 

17 (1) in section 9 (15 U.S.C. 638)— 

18 (A) in subsection (e)— 

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

20 ‘‘scientific review criteria’’ and inserting 

21 ‘‘merit-based selection procedures’’; 

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

23 second or the third phase’’ and inserting 

24 ‘‘Phase II or Phase III’’; and 


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1 (iii) by adding at the end the fol2 lowing: 

3 ‘‘(11) the term ‘Phase I’ means— 

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

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

6 and 

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

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

9 ‘‘(12) the term ‘Phase II’ means— 

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

11 the second phase described in paragraph 

12 (4)(B); and 

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

14 the second phase described in paragraph 

15 (6)(B); and 

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

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

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

19 and 

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

21 the third phase described in paragraph 

22 (6)(C).’’; 

23 (B) in subsection (j)— 

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

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


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1 (ii) in paragraph (2)— 

2 (I) in subparagraph (B)— 

3 (aa) by striking ‘‘the third 

4 phase’’ each place it appears and 

5 inserting ‘‘Phase III’’; and 

6 (bb) by striking ‘‘the second 

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

8 (II) in subparagraph (D)— 

9 (aa) by striking ‘‘the first 

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

11 and 

12 (bb) by striking ‘‘the second 

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

14 (III) in subparagraph (F), by 

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

17 (IV) in subparagraph (G)— 

18 (aa) by striking ‘‘the first 

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

20 and 

21 (bb) by striking ‘‘the second 

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

23 and 

24 (V) in subparagraph (H)— 


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1 (aa) by striking ‘‘the first 

2 phase’’ and inserting ‘‘Phase I’’; 

3 (bb) by striking ‘‘second 

4 phase’’ each place it appears and 

5 inserting ‘‘Phase II’’; and 

6 (cc) by striking ‘‘third 

7 phase’’ and inserting ‘‘Phase 

8 III’’; and 

9 (iii) in paragraph (3)— 

10 (I) in subparagraph (A)— 

11 (aa) by striking ‘‘the first 

12 phase (as described in subsection 

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

14 I’’; 

15 (bb) by striking ‘‘the second 

16 phase (as described in subsection 

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

18 II’’; and 

19 (cc) by striking ‘‘the third 

20 phase (as described in subsection 

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

22 III’’; and 

23 (II) in subparagraph (B), by 

24 striking ‘‘second phase’’ and inserting 

25 ‘‘Phase II’’; 


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1 (C) in subsection (k)— 

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

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

4 and 

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

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

7 (D) in subsection (l)(2)— 

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

9 inserting ‘‘Phase I’’; and 

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

11 and inserting ‘‘Phase II’’; 

12 (E) in subsection (o)(13)— 

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

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

15 and 

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

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

18 (F) in subsection (p)— 

19 (i) in paragraph (2)(B)— 

20 (I) in clause (vi)— 

21 (aa) by striking ‘‘the second 

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

23 and 


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1 (bb) by striking ‘‘the third 

2 phase’’ and inserting ‘‘Phase 

3 III’’; and 

4 (II) in clause (ix)— 

5 (aa) by striking ‘‘the first 

6 phase’’ and inserting ‘‘Phase I’’; 

7 and 

8 (bb) by striking ‘‘the second 

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

10 and 

11 (ii) in paragraph (3)— 

12 (I) by striking ‘‘the first phase 

13 (as described in subsection 

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

15 (II) by striking ‘‘the second 

16 phase (as described in subsection 

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

18 and 

19 (III) by striking ‘‘the third phase 

20 (as described in subsection 

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

22 (G) in subsection (q)(3)— 

23 (i) in subparagraph (A)— 


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1 (I) in the subparagraph heading, 

2 by striking ‘‘FIRST PHASE’’ and in3 serting ‘‘PHASE I’’; and 

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

5 inserting ‘‘Phase I’’; and 

6 (ii) in subparagraph (B)— 

7 (I) in the subparagraph heading, 

8 by striking ‘‘SECOND PHASE’’ and in9 serting ‘‘PHASE II’’; and 

10 (II) by striking ‘‘second phase’’ 

11 and inserting ‘‘Phase II’’; 

12 (H) in subsection (r)— 

13 (i) in the subsection heading, by strik14 ing ‘‘THIRD PHASE’’ and inserting 

15 ‘‘PHASE III’’; 

16 (ii) in paragraph (1)— 

17 (I) in the first sentence— 

18 (aa) by striking ‘‘for the sec19 ond phase’’ and inserting ‘‘for 

20 Phase II’’; 

21 (bb) by striking ‘‘third 

22 phase’’ and inserting ‘‘Phase 

23 III’’; and 


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1 (cc) by striking ‘‘second 

2 phase period’’ and inserting 

3 ‘‘Phase II period’’; and 

4 (II) in the second sentence— 

5 (aa) by striking ‘‘second 

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

7 and 

8 (bb) by striking ‘‘third 

9 phase’’ and inserting ‘‘Phase 

10 III’’; and 

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

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

13 and 

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

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

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

17 657e(c)(2)(B)(vii)), as redesignated by section 201 

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

19 ‘‘Phase III’’. 

20 SEC. 209. SHORTENED PERIOD FOR FINAL DECISIONS ON 

21 PROPOSALS AND APPLICATIONS. 

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

23 Act (15 U.S.C. 638) is amended— 

24 (1) in subsection (g)(4)— 

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


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

2 at the end; and 

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

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

5 submitted under the SBIR program— 

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

7 on which the solicitation closes; or 

8 ‘‘(ii) if the Administrator authorizes an ex9 tension for a solicitation, not later than 180 

10 days after the date on which the solicitation 

11 closes;’’; and 

12 (2) in subsection (o)(4)— 

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

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

15 at the end; and 

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

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

18 submitted under the STTR program— 

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

20 on which the solicitation closes; or 

21 ‘‘(ii) if the Administrator authorizes an ex22 tension for a solicitation, not later than 180 

23 days after the date on which the solicitation 

24 closes;’’. 

25 (b) NIH PEER REVIEW PROCESS.— 


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1 (1) IN GENERAL.—Section 9 of the Small Busi2 ness Act (15 U.S.C. 638), as amended by this Act, 

3 is amended by adding at the end the following: 

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

5 of the National Institutes of Health may make an award 

6 under the SBIR program or the STTR program of the 

7 National Institutes of Health if the application for the 

8 award has undergone technical and scientific peer review 

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

10 U.S.C. 289a).’’. 

11 (2) TECHNICAL AND CONFORMING AMEND12 MENTS.—Section 105 of the National Institutes of 

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

14 amended— 

15 (A) in subsection (a)(3)— 

16 (i) by striking ‘‘A grant’’ and insert17 ing ‘‘Except as provided in section 9(hh) of 

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

19 638(hh)), a grant’’; and 

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

21 all that follows through ‘‘Act)’’ and insert22 ing ‘‘section 402(l) of such Act’’; and 

23 (B) in subsection (b)(5)— 

24 (i) by striking ‘‘A grant’’ and insert25 ing ‘‘Except as provided in section 9(hh) of 


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

2 638(hh)), a grant’’; and 

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

4 all that follows through ‘‘Act)’’ and insert5 ing ‘‘section 402(l) of such Act’’. 

6 TITLE III—OVERSIGHT AND 

7 EVALUATION 

8 SEC. 301. STREAMLINING ANNUAL EVALUATION REQUIRE9 MENTS. 

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

11 638(b)), as amended by section 102 of this Act, is amend12 ed— 

13 (1) in paragraph (7)— 

14 (A) by striking ‘‘STTR programs, includ15 ing the data’’ and inserting the following: 

16 ‘‘STTR programs, including— 

17 ‘‘(A) the data’’; 

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

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

20 through ‘‘under each of the SBIR and STTR 

21 programs, and a description’’ and inserting the 

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

23 ‘‘(B) the number of proposals received 

24 from, and the number and total amount of 

25 awards to, HUBZone small business concerns 


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1 and firms with venture capital investment (in2 cluding those majority-owned by multiple ven3 ture capital operating companies) under each of 

4 the SBIR and STTR programs; 

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

6 each Federal agency is increasing outreach and 

7 awards to firms owned and controlled by women 

8 and social or economically disadvantaged indi9 viduals under each of the SBIR and STTR pro10 grams; 

11 ‘‘(D) general information about the imple12 mentation of, and compliance with the alloca13 tion of funds required under, subsection (cc) for 

14 firms owned in majority part by venture capital 

15 operating companies and participating in the 

16 SBIR program; 

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

18 Phase III awards and notices of noncompliance 

19 with the SBIR Policy Directive and the STTR 

20 Policy Directive filed by the Administrator with 

21 Federal agencies; and 

22 ‘‘(F) a description’’; and 

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


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1 ‘‘(8) to coordinate the implementation of elec2 tronic databases at each of the Federal agencies par3 ticipating in the SBIR program or the STTR pro4 gram, including the technical ability of the partici5 pating agencies to electronically share data;’’. 

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

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

8 638(g)) is amended— 

9 (1) by striking paragraph (10); 

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

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

12 (3) by inserting after paragraph (7) the fol13 lowing: 

14 ‘‘(8) collect annually, and maintain in a com15 mon format in accordance with the simplified report16 ing requirements under subsection (v), such informa17 tion from awardees as is necessary to assess the 

18 SBIR program, including information necessary to 

19 maintain the database described in subsection (k), 

20 including— 

21 ‘‘(A) whether an awardee— 

22 ‘‘(i) has venture capital or is majority23 owned by multiple venture capital oper24 ating companies, and, if so— 


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1 ‘‘(I) the amount of venture cap2 ital that the awardee has received as 

3 of the date of the award; and 

4 ‘‘(II) the amount of additional 

5 capital that the awardee has invested 

6 in the SBIR technology; 

7 ‘‘(ii) has an investor that— 

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

9 citizen of the United States or a law10 ful permanent resident of the United 

11 States, and if so, the name of any 

12 such individual; or 

13 ‘‘(II) is a person that is not an 

14 individual and is not organized under 

15 the laws of a State or the United 

16 States, and if so the name of any such 

17 person; 

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

19 woman as a principal investigator; 

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

22 a socially or economically disadvantaged 

23 individual as a principal investigator; 

24 ‘‘(v) received assistance under the 

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1 fect on the day before the date of enact2 ment of the SBIR/STTR Reauthorization 

3 Act of 2011, or the outreach program 

4 under subsection (s); 

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

6 of an institution of higher education, as 

7 that term is defined in section 101 of the 

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

9 1001); or 

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

11 in subsection (u)(3); and 

12 ‘‘(B) a justification statement from the 

13 agency, if an awardee receives an award in an 

14 amount that is more than the award guidelines 

15 under this section;’’. 

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

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

18 638(o)) is amended by striking paragraph (9) and insert19 ing the following: 

20 ‘‘(9) collect annually, and maintain in a com21 mon format in accordance with the simplified report22 ing requirements under subsection (v), such informa23 tion from applicants and awardees as is necessary to 

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1 cluding information necessary to maintain the data2 base described in subsection (k), including— 

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

4 ‘‘(i) has venture capital or is majority5 owned by multiple venture capital oper6 ating companies, and, if so— 

7 ‘‘(I) the amount of venture cap8 ital that the applicant or awardee has 

9 received as of the date of the applica10 tion or award, as applicable; and 

11 ‘‘(II) the amount of additional 

12 capital that the applicant or awardee 

13 has invested in the SBIR technology; 

14 ‘‘(ii) has an investor that— 

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

16 citizen of the United States or a law17 ful permanent resident of the United 

18 States, and if so, the name of any 

19 such individual; or 

20 ‘‘(II) is a person that is not an 

21 individual and is not organized under 

22 the laws of a State or the United 

23 States, and if so the name of any such 

24 person; 


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

2 woman as a principal investigator; 

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

5 a socially or economically disadvantaged 

6 individual as a principal investigator; 

7 ‘‘(v) received assistance under the 

8 FAST program under section 34 or the 

9 outreach program under subsection (s); 

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

11 of an institution of higher education, as 

12 that term is defined in section 101 of the 

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

14 1001); or 

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

16 the total value of contracts awarded to 

17 small business concerns under all STTR 

18 programs is less than the total value of 

19 contracts awarded to small business con20 cerns in a majority of other States, as de21 termined by the Administrator in biennial 

22 fiscal years, beginning with fiscal year 

23 2008, based on the most recent statistics 

24 compiled by the Administrator; and 


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

2 amount that is more than the award guidelines 

3 under this section, a statement from the agency 

4 that justifies the award amount;’’. 

5 SEC. 304. PUBLIC DATABASE. 

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

7 638(k)(1)) is amended— 

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

9 the end; 

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

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

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

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

14 has received a Phase I or Phase II SBIR or 

15 STTR award from a Federal agency, whether 

16 the small business concern— 

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

18 whether the small business concern is reg19 istered as majority-owned by multiple ven20 ture capital operating companies as re21 quired under subsection (cc)(4); 

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

23 woman as a principal investigator; 

24 ‘‘(iii) is owned by a socially or eco25 nomically disadvantaged individual or has 


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1 a socially or economically disadvantaged 

2 individual as a principal investigator; 

3 ‘‘(iv) received assistance under the 

4 FAST program under section 34, as in ef5 fect on the day before the date of enact6 ment of the SBIR/STTR Reauthorization 

7 Act of 2011, or the outreach program 

8 under subsection (s); or 

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

10 a student of an institution of higher edu11 cation, as that term is defined in section 

12 101 of the Higher Education Act of 1965 

13 (20 U.S.C. 1001).’’. 

14 SEC. 305. GOVERNMENT DATABASE. 

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

16 638(k)) is amended— 

17 (1) in paragraph (2)— 

18 (A) in the matter preceding subparagraph 

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

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

21 than 90 days after the date of enactment of the 

22 SBIR/STTR Reauthorization Act of 2011’’; 

23 (B) by striking subparagraph (C); 


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1 (C) by redesignating subparagraphs (A) 

2 and (B) as subparagraphs (B) and (C), respec3 tively; 

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

5 as so redesignated, the following: 

6 ‘‘(A) contains, for each small business con7 cern that applies for, submits a proposal for, or 

8 receives an award under Phase I or Phase II of 

9 the SBIR program or the STTR program— 

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

11 an identifying number assigned by the Ad12 ministration of the small business concern; 

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

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

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

16 small business concern; 

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

18 will carry out the project; 

19 ‘‘(vi) the percentage of effort each in20 dividual described in clause (iv) will con21 tribute to the project; 

22 ‘‘(vii) whether the small business con23 cern is majority-owned by multiple venture 

24 capital operating companies; and 


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1 ‘‘(viii) the Federal agency to which 

2 the application is made, and contact infor3 mation for the person or office within the 

4 Federal agency that is responsible for re5 viewing applications and making awards 

6 under the SBIR program or the STTR 

7 program;’’; 

8 (E) by redesignating subparagraphs (D), 

9 and (E) as subparagraphs (E) and (F), respec10 tively; 

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

12 as so redesignated, the following: 

13 ‘‘(D) includes, for each awardee— 

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

15 identifying number assigned to the award16 ee by the Administrator; 

17 ‘‘(ii) whether the awardee has venture 

18 capital, and, if so— 

19 ‘‘(I) the amount of venture cap20 ital as of the date of the award; 

21 ‘‘(II) the percentage of ownership 

22 of the awardee held by a venture cap23 ital operating company, including 

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1 owned by multiple venture capital op2 erating companies; and 

3 ‘‘(III) the amount of additional 

4 capital that the awardee has invested 

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

7 basis; 

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

9 affiliates of the awardee; 

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

11 awardee; 

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

13 affiliates of the awardee; and 

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

16 ‘‘(I) any individual who is not a 

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

19 States; or 

20 ‘‘(II) any person that is not an 

21 individual and is not organized under 

22 the laws of a State or the United 

23 States;’’; 

24 (G) in subparagraph (E), as so redesig25 nated, by striking ‘‘and’’ at the end; 


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1 (H) in subparagraph (F), as so redesig2 nated, by striking the period at the end and in3 serting ‘‘; and’’; and 

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

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

6 any individual or small business concern that 

7 has participated in the SBIR program or STTR 

8 program that has committed fraud, waste, or 

9 abuse relating to the SBIR program or STTR 

10 program.’’; and 

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

12 following: 

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

14 than 60 days after the date established by a 

15 Federal agency for submitting applications or 

16 proposals for a Phase I or Phase II award 

17 under the SBIR program or STTR program, 

18 the head of the Federal agency shall submit to 

19 the Administrator the data required under 

20 paragraph (2) with respect to each small busi21 ness concern that applies or submits a proposal 

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

23 SEC. 306. ACCURACY IN FUNDING BASE CALCULATIONS. 

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

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


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

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

3 shall— 

4 (1) conduct a fiscal and management audit of 

5 the SBIR program and the STTR program for the 

6 applicable period to— 

7 (A) determine whether Federal agencies 

8 comply with the expenditure amount require9 ments under subsections (f)(1) and (n)(1) of 

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

11 638), as amended by this Act; 

12 (B) assess the extent of compliance with 

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

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

15 agencies participating in the SBIR program or 

16 the STTR program and the Administration; 

17 (C) assess whether it would be more con18 sistent and effective to base the amount of the 

19 allocations under the SBIR program and the 

20 STTR program on a percentage of the research 

21 and development budget of a Federal agency, 

22 rather than the extramural budget of the Fed23 eral agency; and 

24 (D) determine the portion of the extra25 mural research or research and development 


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1 budget of a Federal agency that each Federal 

2 agency spends for administrative purposes re3 lating to the SBIR program or STTR program, 

4 and for what specific purposes, including the 

5 portion, if any, of such budget the Federal 

6 agency spends for salaries and expenses, travel 

7 to visit applicants, outreach events, marketing, 

8 and technical assistance; and 

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

10 Business and Entrepreneurship of the Senate and 

11 the Committee on Small Business of the House of 

12 Representatives regarding the audit conducted under 

13 paragraph (1), including the assessments required 

14 under subparagraphs (B) and (C), and the deter15 mination made under subparagraph (D) of para16 graph (1). 

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

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

19 (1) for the first report submitted under this 

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

21 and ending on September 30 of the last full fiscal 

22 year before the date of enactment of this Act for 

23 which information is available; and 

24 (2) for the second and each subsequent report 

25 submitted under this section, the period— 


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1 (A) beginning on October 1 of the first fis2 cal year after the end of the most recent full 

3 fiscal year relating to which a report under this 

4 section was submitted; and 

5 (B) ending on September 30 of the last 

6 full fiscal year before the date of the report. 

7 SEC. 307. CONTINUED EVALUATION BY THE NATIONAL 

8 ACADEMY OF SCIENCES. 

9 Section 108 of the Small Business Reauthorization 

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

11 at the end the following: 

12 ‘‘(e) EXTENSIONS AND ENHANCEMENTS OF AUTHOR13 ITY.— 

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

15 after the date of enactment of the SBIR/STTR Re16 authorization Act of 2011, the head of each agency 

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

18 Small Business Administration, shall cooperatively 

19 enter into an agreement with the National Academy 

20 of Sciences for the National Research Council to, 

21 not later than 4 years after the date of enactment 

22 of the SBIR/STTR Reauthorization Act of 2011, 

23 and every 4 years thereafter— 

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

25 this section relating to— 


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1 ‘‘(i) the issues described in subpara2 graphs (A), (B), (C), and (E) of subsection 

3 (a)(1); and 

4 ‘‘(ii) the effectiveness of the govern5 ment and public databases described in 

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

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

8 of the SBIR program and the STTR pro9 gram to fraud, waste, and abuse, particu10 larly with respect to Federal agencies 

11 funding duplicative proposals and business 

12 concerns falsifying information in pro13 posals; 

14 ‘‘(B) make recommendations with respect 

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

16 and subparagraphs (A), (D), and (E) of sub17 section (a)(2). 

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

19 paragraph (1) shall require the National Research 

20 Council to ensure there is participation by and con21 sultation with the small business community, the 

22 Administration, and other interested parties as de23 scribed in subsection (b). 

24 ‘‘(3) REPORTING.—An agreement under para25 graph (1) shall require that not later than 4 years 


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1 after the date of enactment of the SBIR/STTR Re2 authorization Act of 2011, and every 4 years there3 after, the National Research Council shall submit to 

4 the head of the agency entering into the agreement, 

5 the Committee on Small Business and Entrepre6 neurship of the Senate, and the Committee on Small 

7 Business of the House of Representatives a report 

8 regarding the study conducted under paragraph (1) 

9 and containing the recommendations described in 

10 paragraph (1).’’. 

11 SEC. 308. TECHNOLOGY INSERTION REPORTING REQUIRE12 MENTS. 

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

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

15 the following: 

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

17 STTR report to Congress by the Administration under 

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

19 made by the Federal agency— 

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

21 the agency or the non-Federal source of capital mak22 ing the Phase III award; 

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

24 individual receiving the Phase III award; and 


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

2 award.’’. 

3 SEC. 309. INTELLECTUAL PROPERTY PROTECTIONS. 

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

5 United States shall conduct a study of the SBIR program 

6 to assess whether— 

7 (1) Federal agencies comply with the data 

8 rights protections for SBIR awardees and the tech9 nologies of SBIR awardees under section 9 of the 

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

11 (2) the laws and policy directives intended to 

12 clarify the scope of data rights, including in proto13 types and mentor-prote ́ge ́ relationships and agree14 ments with Federal laboratories, are sufficient to 

15 protect SBIR awardees; and 

16 (3) there is an effective grievance tracking proc17 ess for SBIR awardees who have grievances against 

18 a Federal agency regarding data rights and a proc19 ess for resolving those grievances. 

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

21 date of enactment of this Act, the Comptroller General 

22 shall submit to the Committee on Small Business and En23 trepreneurship of the Senate and the Committee on Small 

24 Business of the House of Representatives a report regard25 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— 

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 

24 assistance by Federal agencies that have signifiVerDate Mar 15 2010 00:00 Mar 05, 2011 Jkt 099200 PO 00000 Frm 00101 Fmt 6652 Sfmt 6201 E:\BILLS\S493.IS S493

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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 TITLE IV—POLICY DIRECTIVES 

8 SEC. 401. CONFORMING AMENDMENTS TO THE SBIR AND 

9 THE STTR POLICY DIRECTIVES. 

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

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

13 the STTR Policy Directive to conform such directives to 

14 this Act and the amendments made by this Act. 

15 (b) PUBLISHING SBIR POLICY DIRECTIVE AND THE

16 STTR POLICY DIRECTIVE IN THE FEDERAL REGISTER.— 

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

18 this Act, the Administrator shall publish the amended 

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

21 TITLE V—OTHER PROVISIONS 

22 SEC. 501. RESEARCH TOPICS AND PROGRAM DIVERSIFICA23 TION. 

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

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


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1 (1) in paragraph (3)— 

2 (A) in the matter preceding subparagraph 

3 (A), by striking ‘‘broad research topics and to 

4 topics that further 1 or more critical tech5 nologies’’ and inserting ‘‘applications to the 

6 Federal agency for support of projects relating 

7 to nanotechnology, rare diseases, security, en8 ergy, transportation, or improving the security 

9 and quality of the water supply of the United 

10 States, and the efficiency of water delivery sys11 tems and usage patterns in the United States 

12 (including the territories of the United States) 

13 through the use of technology (to the extent 

14 that the projects relate to the mission of the 

15 Federal agency), broad research topics, and 

16 topics that further 1 or more critical tech17 nologies or research priorities’’; 

18 (B) in subparagraph (A), by striking ‘‘or’’ 

19 at the end; and 

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

21 ‘‘(C) the National Academy of Sciences, in 

22 the final report issued by the ‘America’s Energy 

23 Future: Technology Opportunities, Risks, and 

24 Tradeoffs’ project, and in any subsequent reVerDate Mar 15 2010 00:00 Mar 05, 2011 Jkt 099200 PO 00000 Frm 00104 Fmt 6652 Sfmt 6201 E:\BILLS\S493.IS S493

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1 port by the National Academy of Sciences on 

2 sustainability, energy, or alternative fuels; 

3 ‘‘(D) the National Institutes of Health, in 

4 the annual report on the rare diseases research 

5 activities of the National Institutes of Health 

6 for fiscal year 2005, and in any subsequent re7 port by the National Institutes of Health on 

8 rare diseases research activities; 

9 ‘‘(E) the National Academy of Sciences, in 

10 the final report issued by the ‘Transit Research 

11 and Development: Federal Role in the National 

12 Program’ project and the report entitled 

13 ‘Transportation Research, Development and 

14 Technology Strategic Plan (2006–2010)’ issued 

15 by the Research and Innovative Technology Ad16 ministration of the Department of Transpor17 tation, and in any subsequent report issued by 

18 the National Academy of Sciences or the De19 partment of Transportation on transportation 

20 and infrastructure; or 

21 ‘‘(F) the national nanotechnology strategic 

22 plan required under section 2(c)(4) of the 21st 

23 Century Nanotechnology Research and Develop24 ment Act (15 U.S.C. 7501(c)(4)) and in any re25 port issued by the National Science and TechVerDate Mar 15 2010 00:00 Mar 05, 2011 Jkt 099200 PO 00000 Frm 00105 Fmt 6652 Sfmt 6201 E:\BILLS\S493.IS S493

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1 nology Council Committee on Technology that 

2 focuses on areas of nanotechnology identified in 

3 such plan;’’; and 

4 (2) by adding after paragraph (12), as added 

5 by section 111(a) of this Act, the following: 

6 ‘‘(13) encourage applications under the SBIR 

7 program (to the extent that the projects relate to the 

8 mission of the Federal agency)— 

9 ‘‘(A) from small business concerns in geo10 graphic areas underrepresented in the SBIR 

11 program or located in rural areas (as defined in 

12 section 1393(a)(2) of the Internal Revenue 

13 Code of 1986); 

14 ‘‘(B) small business concerns owned and 

15 controlled by women; 

16 ‘‘(C) small business concerns owned and 

17 controlled by veterans; 

18 ‘‘(D) small business concerns owned and 

19 controlled by Native Americans; and 

20 ‘‘(E) small business concerns located in a 

21 geographic area with an unemployment rates 

22 that exceed the national unemployment rate, 

23 based on the most recently available monthly 

24 publications of the Bureau of Labor Statistics 

25 of the Department of Labor.’’. 


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

2 Business Act (15 U.S.C. 638(o)), as amended by section 

3 111(b) of this Act, is amended— 

4 (1) in paragraph (3)— 

5 (A) in the matter preceding subparagraph 

6 (A), by striking ‘‘broad research topics and to 

7 topics that further 1 or more critical tech8 nologies’’ and inserting ‘‘applications to the 

9 Federal agency for support of projects relating 

10 to nanotechnology, security, energy, rare dis11 eases, transportation, or improving the security 

12 and quality of the water supply of the United 

13 States (to the extent that the projects relate to 

14 the mission of the Federal agency), broad re15 search topics, and topics that further 1 or more 

16 critical technologies or research priorities’’; 

17 (B) in subparagraph (A), by striking ‘‘or’’ 

18 at the end; and 

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

20 ‘‘(C) the National Academy of Sciences, in 

21 the final report issued by the ‘America’s Energy 

22 Future: Technology Opportunities, Risks, and 

23 Tradeoffs’ project, and in any subsequent re24 port by the National Academy of Sciences on 

25 sustainability, energy, or alternative fuels; 


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1 ‘‘(D) the National Institutes of Health, in 

2 the annual report on the rare diseases research 

3 activities of the National Institutes of Health 

4 for fiscal year 2005, and in any subsequent re5 port by the National Institutes of Health on 

6 rare diseases research activities; 

7 ‘‘(E) the National Academy of Sciences, in 

8 the final report issued by the ‘Transit Research 

9 and Development: Federal Role in the National 

10 Program’ project and the report entitled 

11 ‘Transportation Research, Development and 

12 Technology Strategic Plan (2006–2010)’ issued 

13 by the Research and Innovative Technology Ad14 ministration of the Department of Transpor15 tation, and in any subsequent report issued by 

16 the National Academy of Sciences or the De17 partment of Transportation on transportation 

18 and infrastructure; or 

19 ‘‘(F) the national nanotechnology strategic 

20 plan required under section 2(c)(4) of the 21st 

21 Century Nanotechnology Research and Develop22 ment Act (15 U.S.C. 7501(c)(4)) and in any re23 port issued by the National Science and Tech24 nology Council Committee on Technology that 


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1 focuses on areas of nanotechnology identified in 

2 such plan;’’; 

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

4 end; 

5 (3) in paragraph (16), by striking the period at 

6 the end and inserting ‘‘; and’’; and 

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

8 ‘‘(17) encourage applications under the STTR 

9 program (to the extent that the projects relate to the 

10 mission of the Federal agency)— 

11 ‘‘(A) from small business concerns in geo12 graphic areas underrepresented in the STTR 

13 program or located in rural areas (as defined in 

14 section 1393(a)(2) of the Internal Revenue 

15 Code of 1986); 

16 ‘‘(B) small business concerns owned and 

17 controlled by women; 

18 ‘‘(C) small business concerns owned and 

19 controlled by veterans; 

20 ‘‘(D) small business concerns owned and 

21 controlled by Native Americans; and 

22 ‘‘(E) small business concerns located in a 

23 geographic area with an unemployment rates 

24 that exceed the national unemployment rate, 

25 based on the most recently available monthly 


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1 publications of the Bureau of Labor Statistics 

2 of the Department of Labor.’’. 

3 (c) RESEARCH AND DEVELOPMENT FOCUS.—Section 

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

5 amended— 

6 (1) by striking paragraph (2); and 

7 (2) by redesignating paragraph (3) as para8 graph (2). 

9 SEC. 502. REPORT ON SBIR AND STTR PROGRAM GOALS. 

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

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

12 the following: 

13 ‘‘(ll) ANNUAL REPORT ON SBIR AND STTR PRO14 GRAM GOALS.— 

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

16 each Federal agency required to participate in the 

17 SBIR program or the STTR program shall develop 

18 metrics to evaluate the effectiveness, and the benefit 

19 to the people of the United States, of the SBIR pro20 gram and the STTR program of the Federal agency 

21 that— 

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

23 driven; 

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

25 agency; and 


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1 ‘‘(C) include factors relating to the eco2 nomic impact of the programs. 

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

4 agency described in paragraph (1) shall conduct an 

5 annual evaluation using the metrics developed under 

6 paragraph (1) of— 

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

8 program of the Federal agency; and 

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

10 United States of the SBIR program and the 

11 STTR program of the Federal agency. 

12 ‘‘(3) REPORT.— 

13 ‘‘(A) IN GENERAL.—The head of each 

14 Federal agency described in paragraph (1) shall 

15 submit to the appropriate committees of Con16 gress and the Administrator an annual report 

17 describing in detail the results of an evaluation 

18 conducted under paragraph (2). 

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

20 The head of each Federal agency described in 

21 paragraph (1) shall make each report submitted 

22 under subparagraph (A) available to the public 

23 online. 


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

2 term ‘appropriate committees of Congress’ 

3 means— 

4 ‘‘(i) the Committee on Small Business 

5 and Entrepreneurship of the Senate; and 

6 ‘‘(ii) the Committee on Small Busi7 ness and the Committee on Science and 

8 Technology of the House of Representa9 tives.’’. 

10 SEC. 503. COMPETITIVE SELECTION PROCEDURES FOR 

11 SBIR AND STTR PROGRAMS. 

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

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

14 the following: 

15 ‘‘(mm) COMPETITIVE SELECTION PROCEDURES FOR

16 SBIR AND STTR PROGRAMS.—All funds awarded, appro17 priated, or otherwise made available in accordance with 

18 subsection (f) or (n) must be awarded pursuant to com19 petitive and merit-based selection procedures.’’. 

Æ 


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