I 

116TH CONGRESS 

1ST SESSION H. R. 3839 

To improve commercialization activities in the SBIR and STTR programs, 

and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 18, 2019 

Ms. HOULAHAN (for herself and Mr. BALDERSON) introduced the following 

bill; which was referred to the Committee on Small Business, and in addition to the Committees on Science, Space, and Technology, and the Judiciary, for a period to be subsequently determined by the Speaker, in each 

case for consideration of such provisions as fall within the jurisdiction of 

the committee concerned 

A BILL 

To improve commercialization activities in 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 ‘‘Research Advancing 

5 to Market Production for Innovators Act’’. 


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1 SEC. 2. IMPROVEMENTS TO COMMERCIALIZATION SELEC2 TION. 

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

4 Act (15 U.S.C. 638) is amended— 

5 (1) in subsection (g)— 

6 (A) in paragraph (4)(B)(i), by striking ‘‘1 

7 year’’ and inserting ‘‘180 days’’; 

8 (B) in paragraph (11), by striking ‘‘and’’ 

9 at the end; 

10 (C) in paragraph (12), by striking the pe11 riod at the end and inserting ‘‘; and’’; and 

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

13 ‘‘(13) with respect to peer review carried out 

14 under the SBIR program, to the extent practicable, 

15 include in the peer review— 

16 ‘‘(A) the likelihood of commercialization in 

17 addition to scientific and technical merit and 

18 feasibility; and 

19 ‘‘(B) not less than 1 reviewer with com20 mercialization expertise who is capable of as21 sessing the likelihood of commercialization.’’; 

22 (2) in subsection (o)— 

23 (A) in paragraph (4)(B)(i), by striking ‘‘1 

24 year’’ and inserting ‘‘180 days’’; 

25 (B) in paragraph (15), by striking ‘‘and’’ 

26 at the end; 


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1 (C) in paragraph (16), by striking the pe2 riod at the end and inserting ‘‘; and’’; and 

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

4 ‘‘(17) with respect to peer review carried out 

5 under the STTR program, to the extent practicable, 

6 include in the peer review— 

7 ‘‘(A) the likelihood of commercialization in 

8 addition to scientific and technical merit and 

9 feasibility; and 

10 ‘‘(B) not less than 1 reviewer with com11 mercialization expertise who is capable of as12 sessing the likelihood of commercialization.’’; 

13 (3) in subsection (cc)— 

14 (A) by striking ‘‘During fiscal years 2012 

15 through 2022, the National Institutes of 

16 Health, the Department of Defense, and the 

17 Department of Education’’ and inserting the 

18 following: 

19 ‘‘(1) IN GENERAL.—During fiscal years 2019 

20 through 2024, each Federal agency with an SBIR or 

21 STTR program’’; and 

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

23 ‘‘(2) LIMITATION.—The total value of awards 

24 provided by a Federal agency under this subsection 

25 in a fiscal year shall be— 


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1 ‘‘(A) except as provided in subparagraph 

2 (B), not more than 10 percent of the total 

3 funds allocated to the SBIR and STTR pro4 grams of the Federal agency during that fiscal 

5 year; and 

6 ‘‘(B) with respect to the National Insti7 tutes of Health, not more than 15 percent of 

8 the total funds allocated to the SBIR and 

9 STTR programs of the National Institutes of 

10 Health during that fiscal year. 

11 ‘‘(3) EXTENSION.—During fiscal years 2023 

12 and 2024, each Federal agency with an SBIR or 

13 STTR program may continue phase flexibility as de14 scribed in this subsection only if the reports required 

15 under subsection (tt)(1)(B) have been submitted to 

16 the appropriate committees.’’; 

17 (4) in subsection (hh)(2)(A)(i), by inserting 

18 ‘‘application process and requirements’’ after ‘‘sim19 plified and standardized’’; and 

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

21 ‘‘(vv) TECHNOLOGY COMMERCIALIZATION OFFI22 CIAL.—Each Federal agency participating in the SBIR or 

23 STTR program shall designate a Technology Commer24 cialization Official in the Federal agency, who shall— 


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1 ‘‘(1) have sufficient commercialization experi2 ence; 

3 ‘‘(2) provide assistance to SBIR and STTR 

4 program awardees in commercializing and 

5 transitioning technologies; 

6 ‘‘(3) identify SBIR and STTR program tech7 nologies with sufficient technology and commer8 cialization readiness to advance to Phase III awards 

9 or other non-SBIR or STTR program contracts; 

10 ‘‘(4) coordinate with the Technology Commer11 cialization Officials of other Federal agencies to 

12 identify additional markets and commercialization 

13 pathways for promising SBIR and STTR program 

14 technologies; 

15 ‘‘(5) submit to the Administration an annual 

16 report on the number of technologies from the SBIR 

17 or STTR program that have advanced commer18 cialization activities, including information required 

19 in the commercialization impact assessment under 

20 subsection (xx); 

21 ‘‘(6) submit to the Administration an annual 

22 report on actions taken by the Federal agency, and 

23 the results of those actions, to simplify, standardize, 

24 and expedite the application process and require25 ments, procedures, and contracts as required under 


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1 subsection (hh) and described in subsection (xx)(E); 

2 and 

3 ‘‘(7) carry out such other duties as the Federal 

4 agency determines necessary.’’. 

5 (b) REPORT.—Not later than 1 year after the date 

6 of enactment of this Act, the Administrator of the Small 

7 Business Administrator shall submit to the Committee on 

8 Small Business and Entrepreneurship of the Senate and 

9 the Committee on Small Business of the House of Rep10 resentatives summarizing the metrics relating to and an 

11 evaluation of the authority provided under section 9(cc) 

12 of the Small Business Act, as amended by subsection (a), 

13 which shall include the size and location of the small busi14 ness concerns receiving awards under the SBIR or STTR 

15 program. 

16 SEC. 3. IMPROVEMENTS TO TECHNICAL AND BUSINESS AS17 SISTANCE; COMMERCIALIZATION IMPACT AS18 SESSMENT; PATENT ASSISTANCE. 

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

20 as amended by section 2, is amended— 

21 (1) in subsection (q)— 

22 (A) in paragraph (1), in the matter pre23 ceding subparagraph (A)— 

24 (i) by striking ‘‘may enter into an 

25 agreement with 1 or more vendors selected 


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1 under paragraph (2)(A)’’ and inserting 

2 ‘‘shall authorize recipients of awards under 

3 the SBIR or STTR program to select, if 

4 desired, commercialization activities pro5 vided under subparagraph (A), (B), or (C) 

6 of paragraph (2)’’; and 

7 (ii) by inserting ‘‘, cybersecurity as8 sistance’’ after ‘‘intellectual property pro9 tections’’; 

10 (B) in paragraph (2), by adding at the end 

11 the following: 

12 ‘‘(C) STAFF.—A small business concern 

13 may, by contract or otherwise, use funding pro14 vided under this section to hire new staff, aug15 ment staff, or direct staff to conduct or partici16 pate in training activities consistent with the 

17 goals listed in paragraph (1).’’; 

18 (C) in paragraph (3), by striking subpara19 graphs (A) and (B) and inserting the following: 

20 ‘‘(A) PHASE I.—A Federal agency de21 scribed in paragraph (1) shall authorize a re22 cipient of a Phase I SBIR or STTR award to 

23 utilize not more than $6,500 per project, in24 cluded as part of the award of the recipient or 

25 in addition to the amount of the award of the 


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1 recipient as determined appropriate by the head 

2 of the Federal agency, for the services described 

3 in paragraph (1)— 

4 ‘‘(i) provided through a vendor se5 lected under paragraph (2)(A); 

6 ‘‘(ii) provided through a vendor other 

7 than a vendor selected under paragraph 

8 (2)(A); 

9 ‘‘(iii) achieved through the activities 

10 described in paragraph (2)(C); or 

11 ‘‘(iv) provided or achieved through 

12 any combination of clauses (i), (ii), and 

13 (iii). 

14 ‘‘(B) PHASE II.—A Federal agency de15 scribed in paragraph (1) shall authorize a re16 cipient of a Phase II SBIR or STTR award to 

17 utilize not more than $50,000 per project, in18 cluded as part of the award of the recipient or 

19 in addition to the amount of the award of the 

20 recipient as determined appropriate by the head 

21 of the Federal agency, for the services described 

22 in paragraph (1)— 

23 ‘‘(i) provided through a vendor se24 lected under paragraph (2)(A); 


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1 ‘‘(ii) provided through a vendor other 

2 than a vendor selected under paragraph 

3 (2)(A); 

4 ‘‘(iii) achieved through the activities 

5 described in paragraph (2)(C); or 

6 ‘‘(iv) provided or achieved through 

7 any combination of clauses (i), (ii), and 

8 (iii).’’; and 

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

10 ‘‘(5) TARGETED REVIEW.—A Federal agency 

11 may perform targeted reviews of technical and busi12 ness assistance funding as described in subsection 

13 (mm)(1)(F).’’; and 

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

15 ‘‘(ww) I–CORPS PARTICIPATION.— 

16 ‘‘(1) IN GENERAL.—Each Federal agency that 

17 is required to conduct an SBIR or STTR program 

18 with an Innovation Corps (commonly known as ‘I– 

19 Corps’) program shall— 

20 ‘‘(A) provide an option for participation in 

21 an I–Corps teams course by recipients of an 

22 award under the SBIR or STTR program; and 

23 ‘‘(B) authorize the recipients described in 

24 subparagraph (A) to use an award provided 

25 under subsection (q) to provide additional techVerDate Sep 11 2014 02:35 Jul 19, 2019 Jkt 089200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H3839.IH H3839

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1 nical assistance for participation in the I–Corps 

2 teams course. 

3 ‘‘(2) COST OF PARTICIPATION.—The cost of 

4 participation by a recipient described in paragraph 

5 (1)(A) in an I–Corps course may be provided by— 

6 ‘‘(A) an I–Corps team grant; 

7 ‘‘(B) funds awarded to the recipient under 

8 subsection (q); 

9 ‘‘(C) the participating teams or other 

10 sources as appropriate; or 

11 ‘‘(D) any combination of sources described 

12 in subparagraphs (A), (B), and (C). 

13 ‘‘(xx) COMMERCIALIZATION IMPACT ASSESSMENT.— 

14 ‘‘(1) IN GENERAL.—The Administrator shall co15 ordinate with each Federal agency with an SBIR or 

16 STTR program to develop an annual commercializa17 tion impact assessment report of the Federal agency, 

18 which shall measure, for the 5-year period preceding 

19 the report— 

20 ‘‘(A) for Phase II contracts— 

21 ‘‘(i) the total amount of sales of new 

22 products and services to the Federal Gov23 ernment or other commercial markets; 


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1 ‘‘(ii) the total outside investment from 

2 partnerships, joint ventures, or other pri3 vate sector funding sources; 

4 ‘‘(iii) the total number of technologies 

5 licensed to other companies; 

6 ‘‘(iv) the total number of acquisitions 

7 of small business concerns participating in 

8 the SBIR program or the STTR program 

9 that are acquired by other entities; 

10 ‘‘(v) the total number of new spin-out 

11 companies; 

12 ‘‘(vi) the total outside investment 

13 from venture capital or angel investments; 

14 ‘‘(vii) the total number of patent ap15 plications; 

16 ‘‘(viii) the total number of patents ac17 quired; 

18 ‘‘(ix) the year of first Phase I award 

19 and the total number of employees at time 

20 of first Phase I award; 

21 ‘‘(x) the total number of employees 

22 from the preceding completed year; and 

23 ‘‘(xi) the percent of revenue, as of the 

24 date of the report, generated through 

25 SBIR or STTR program funding; 


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1 ‘‘(B) the total number and value of subse2 quent Phase II awards, as described in sub3 section (bb), awarded for each particular 

4 project or technology; 

5 ‘‘(C) the total number and value of Phase 

6 III awards awarded subsequent to a Phase II 

7 award; 

8 ‘‘(D) the total number and value of non9 SBIR and STTR program Federal awards and 

10 contracts; and 

11 ‘‘(E) actions taken by the Federal agency, 

12 and the results of those actions, relating to de13 veloping a simplified and standardized applica14 tion process and requirements, procedures, and 

15 model contracts throughout the Federal agency 

16 for Phase I, Phase II, and Phase III SBIR pro17 gram awards in subsection (hh). 

18 ‘‘(2) PUBLICATION.—A commercialization im19 pact assessment report described in paragraph (1) of 

20 a Federal agency shall be— 

21 ‘‘(A) included in the annual report of the 

22 Federal agency required under this section; and 

23 ‘‘(B) published on the website of the Ad24 ministration. 

25 ‘‘(yy) PATENT ASSISTANCE.— 


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1 ‘‘(1) DEFINITIONS.—In this subsection— 

2 ‘‘(A) the term ‘low bono services’ means 

3 services provided at a reduced fee; and 

4 ‘‘(B) the term ‘USPTO’ means the United 

5 States Patent and Trademark Office. 

6 ‘‘(2) ASSISTANCE.—The Administrator shall 

7 enter into an interagency agreement with the 

8 USPTO to assist recipients of an award under the 

9 SBIR or STTR program (in this paragraph referred 

10 to as ‘SBIR and STTR recipients’) relating to intel11 lectual property protection through— 

12 ‘‘(A) track one processing, under which the 

13 USPTO may— 

14 ‘‘(i) allocate— 

15 ‘‘(I) not less than 5 percent or 

16 500 track one requests, whichever is 

17 greater, per year to SBIR and STTR 

18 recipients on a first-come, first-served 

19 basis; and 

20 ‘‘(II) not more than 2 track one 

21 requests to an individual SBIR and 

22 STTR recipient, to expedite final dis23 position on SBIR and STTR program 

24 patent applications; and 


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1 ‘‘(ii) waive the track one fee require2 ment for SBIR and STTR recipients; and 

3 ‘‘(B) through the USPTO Patent Pro 

4 Bono Program, providing SBIR and STTR re5 cipients— 

6 ‘‘(i) pro bono services if the recipi7 ent— 

8 ‘‘(I) had a total gross income of 

9 more than $150,000 but less than 

10 $5,000,000 in the preceding calendar 

11 year, and expects a total gross income 

12 of more than $150,000 but less than 

13 $5,000,000 in the current calendar 

14 year; 

15 ‘‘(II) is not under any obligation 

16 to assign the rights to the invention to 

17 another entity other than the Federal 

18 Government; and 

19 ‘‘(III) has not previously received 

20 USPTO pro bono or low bono serv21 ices; or 

22 ‘‘(ii) low bono services if the recipi23 ent— 

24 ‘‘(I) had a total gross income of 

25 more than $5,000,000 but less than 


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1 $10,000,000 in the preceding calendar 

2 year, and expects a total gross income 

3 of more than $5,000,000 but less 

4 than $10,000,000 in the current cal5 endar year; 

6 ‘‘(II) is not under any obligation 

7 to assign the rights to the invention to 

8 another entity other than the Federal 

9 Government; and 

10 ‘‘(III) has not previously received 

11 USPTO pro bono or low bono serv12 ices. 

13 ‘‘(3) OUTREACH.—The Administrator shall co14 ordinate with the USPTO to provide outreach re15 garding the pro se assistance program and scam 

16 prevention services of the USPTO.’’. 

Æ 


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