II 

110TH CONGRESS 

2D SESSION S. 3362 

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

purposes. 

IN THE SENATE OF THE UNITED STATES 

JULY 29 (legislative day, JULY 28), 2008 

Mr. KERRY (for himself and Ms. SNOWE) 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 2008’’. 

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 cap increase. 

Sec. 104. STTR cap increase. 

Sec. 105. SBIR and STTR award levels. 

Sec. 106. Agency and program collaboration. 

Sec. 107. Elimination of Phase II invitations. 

Sec. 108. Majority-venture investments in SBIR firms. 

Sec. 109. SBIR and STTR special acquisition preference. 

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

centers. 

Sec. 111. Notice requirement. 

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 pilot program at Department of Defense. 

Sec. 205. Commercialization Pilot Program for civilian agencies. 

Sec. 206. Nanotechnology initiative. 

Sec. 207. Accelerating cures. 

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. 

TITLE IV—POLICY DIRECTIVES 

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

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 


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1 Transfer Program’’, and ‘‘STTR’’ have the mean2 ings given such terms in section 9 of the Small Busi3 ness Act (15 U.S.C. 638); and 

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

5 same meaning as under section 3 of the Small Busi6 ness Act (15 U.S.C. 632). 

7 TITLE I—REAUTHORIZATION OF 

8 THE SBIR AND STTR PROGRAMS 

9 SEC. 101. EXTENSION OF TERMINATION DATES. 

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

11 (15 U.S.C. 638(m)) is amended by striking ‘‘2008’’ and 

12 inserting ‘‘2022’’. 

13 (b) STTR.—Section 9(n)(1)(A) of the Small Busi14 ness Act (15 U.S.C. 638(n)(1)(A)) is amended by striking 

15 ‘‘2009’’ and inserting ‘‘2023’’. 

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

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

18 638(b)) is amended— 

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

20 end; 

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

22 the end and inserting ‘‘; and’’; 

23 (3) by redesignating paragraph (8) as para24 graph (9); and 

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


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1 ‘‘(10) to maintain an Office of Technology— 

2 ‘‘(A) to carry out its responsibilities under 

3 this section, headed by the Assistant Adminis4 trator for Technology, who shall report directly 

5 to the Administrator; and 

6 ‘‘(B) which shall be independent from the 

7 Office of Government Contracting and suffi8 ciently staffed and funded to comply with the 

9 oversight, reporting, and public database re10 sponsibilities assigned to the Office of Tech11 nology by the Administrator.’’. 

12 SEC. 103. SBIR CAP INCREASE. 

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

14 638(f)) is amended— 

15 (1) in paragraph (1)— 

16 (A) in subparagraph (B), by striking 

17 ‘‘and’’ at the end; and 

18 (B) by striking subparagraph (C) and in19 serting the following: 

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

21 budget in fiscal year 2009; 

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

23 budget in fiscal year 2010; 

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

25 budget in fiscal year 2011; 


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

2 budget in fiscal year 2012; 

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

4 budget in fiscal year 2013; 

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

6 budget in fiscal year 2014; 

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

8 budget in fiscal year 2015; 

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

10 budget in fiscal year 2016; 

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

12 budget in fiscal year 2017; 

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

14 budget in fiscal year 2018; and 

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

16 budget in fiscal year 2019 and each fiscal year 

17 thereafter,’’; and 

18 (2) in paragraph (2)— 

19 (A) by redesignating subparagraphs (A) 

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

21 adjusting the margins accordingly; 

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

23 inserting the following: 

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

25 and 


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

2 ‘‘(B) DEPARTMENT OF DEFENSE AND DE3 PARTMENT OF ENERGY.—For the Department 

4 of Defense and the Department of Energy, to 

5 the greatest extent practicable, the increased 

6 percentage of expenditures required under sub7 paragraphs (D) through (M) of paragraph (1) 

8 shall not be used for new Phase I or Phase II 

9 awards and shall be used for activities that fur10 ther the technology readiness levels of tech11 nologies being developed under Phase II 

12 awards, including to conduct testing and eval13 uation, in order to promote the transition of 

14 such technologies into commercial or defense 

15 products or systems furthering the mission 

16 needs of the Department of Defense or the De17 partment of Energy, as the case may be. 

18 ‘‘(C) DEPARTMENT OF HEALTH AND

19 HUMAN SERVICES.—Subparagraphs (D) 

20 through (M) of paragraph (1) shall not apply to 

21 the Department of Health and Human Services. 

22 For fiscal year 2009, and each fiscal year there23 after, the Department of Health and Human 

24 Services shall expend with small business con25 cerns not less than 2.5 percent of the extraVerDate Aug 31 2005 05:15 Jul 30, 2008 Jkt 069200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S3362.IS S3362

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1 mural budget for research or research and de2 velopment of the department of Health and 

3 Human Services.’’. 

4 SEC. 104. STTR CAP INCREASE. 

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

6 U.S.C. 638(n)(1)(B)) is amended— 

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

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

9 inserting ‘‘through fiscal year 2009;’’; and 

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

11 ‘‘(iii) 0.4 percent for fiscal years 2010 

12 and 2011; 

13 ‘‘(iv) 0.5 percent for fiscal years 2012 

14 and 2013; and 

15 ‘‘(v) 0.6 percent for fiscal year 2014 

16 and each fiscal year thereafter.’’. 

17 SEC. 105. SBIR AND STTR AWARD LEVELS. 

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

19 Small Business Act (15 U.S.C. 638(j)(2)(D)) is amend20 ed— 

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

22 ‘‘$150,000’’; and 

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

24 ‘‘$1,000,000’’. 


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

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

3 amended— 

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

5 ‘‘$150,000’’; and 

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

7 ‘‘$1,000,000’’. 

8 (c) TRIENNIAL ADJUSTMENTS.—Section 9 of the 

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

10 (1) in subsection (j)(2)(D)— 

11 (A) by striking ‘‘5 years’’ and inserting ‘‘3 

12 years’’; and 

13 (B) by striking ‘‘and programmatic consid14 erations’’; and 

15 (2) in subsection (p)(2)(B)(ix) by striking 

16 ‘‘greater or lesser amounts to be awarded at the dis17 cretion of the awarding agency,’’ and inserting ‘‘and 

18 an adjustment for inflation of such amounts once 

19 every 3 years,’’. 

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

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

22 adding at the end the following: 

23 ‘‘(aa) LIMITATION ON CERTAIN AWARDS.—No Fed24 eral agency may issue an award under the SBIR program 

25 or the STTR program if the size of the award exceeds 


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1 the award guidelines established under this section by 

2 more than 50 percent. Participating agencies shall main3 tain information on awards exceeding the guidelines, in4 cluding award amounts, justification for exceeding the 

5 amount, identities and locations of recipients, whether a 

6 recipient has received venture capital investment and, if 

7 so, if the recipient is majority-owned and controlled by 

8 multiple venture capital companies, and the Administra9 tion shall include such information in its annual report 

10 to Congress.’’. 

11 SEC. 106. AGENCY AND PROGRAM COLLABORATION. 

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 ‘‘(bb) SUBSEQUENT PHASES.— 

16 ‘‘(1) AGENCY COLLABORATION.—A small busi17 ness concern that received an award from a Federal 

18 agency under this section shall be eligible to receive 

19 an award for a subsequent phase from another Fed20 eral agency, if the head of each relevant Federal 

21 agency or its component makes a written determina22 tion that the topics of the relevant awards are the 

23 same and both agencies report the awards to the Ad24 ministration for inclusion in the public database 

25 under subsection (k). 


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1 ‘‘(2) SBIR AND STTR COLLABORATION.—A 

2 small business concern which received an award 

3 under this section under the SBIR program or the 

4 STTR program may receive an award under this 

5 section for a subsequent phase in either the SBIR 

6 program or the STTR program and the partici7 pating agency or agencies shall report the awards to 

8 the Administration for inclusion in the public data9 base under subsection (k).’’. 

10 SEC. 107. ELIMINATION OF PHASE II INVITATIONS. 

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

12 638(e)) is amended— 

13 (1) in paragraph (4)(B), by striking ‘‘to fur14 ther’’ and inserting: ‘‘not encumbered by any invita15 tion, pre-screening, pre-selection, or down-selection 

16 process between the first phase and the second 

17 phase that will further’’; and 

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

19 develop proposed ideas to’’ and inserting ‘‘not en20 cumbered by any invitation, pre-screening, pre-selec21 tion, or down-selection process between the first 

22 phase and the second phase that will further develop 

23 proposals which’’. 


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1 SEC. 108. MAJORITY-VENTURE INVESTMENTS IN SBIR 

2 FIRMS. 

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

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

5 by adding at the end the following: 

6 ‘‘(cc) MAJORITY-VENTURE INVESTMENTS IN SBIR 

7 FIRMS.— 

8 ‘‘(1) AUTHORITY AND DETERMINATION.— 

9 ‘‘(A) IN GENERAL.—Upon a written deter10 mination provided not later than 30 days in ad11 vance to the Administrator and to the Com12 mittee on Small Business and Entrepreneurship 

13 of the Senate and the Committee on Small 

14 Business of the House of Representatives— 

15 ‘‘(i) the head of the SBIR program of 

16 the National Institutes of Health may 

17 award not more than 18 percent of the 

18 SBIR funds of the National Institutes of 

19 Health allocated in accordance with this 

20 Act, in the first full fiscal year beginning 

21 after the date of enactment of this sub22 section, and each fiscal year thereafter, to 

23 small business concerns that are owned in 

24 majority part by venture capital companies 

25 and that satisfy the qualification require26 ments under paragraph (2) through comVerDate Aug 31 2005 05:15 Jul 30, 2008 Jkt 069200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\S3362.IS S3362

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1 petitive, merit-based procedures that are 

2 open to all eligible small business concerns; 

3 and 

4 ‘‘(ii) the head of any other Federal 

5 agency participating in the SBIR program 

6 may award not more than 8 percent of the 

7 SBIR funds of the Federal agency allo8 cated in accordance with this Act, in the 

9 first full fiscal year beginning after the 

10 date of enactment of this subsection, and 

11 each fiscal year thereafter, to small busi12 ness concerns that are owned in majority 

13 part by venture capital companies and that 

14 satisfy the qualification requirements 

15 under paragraph (2) through competitive, 

16 merit-based procedures that are open to all 

17 eligible small business concerns. 

18 ‘‘(B) DETERMINATION.—A written deter19 mination under subparagraph (A) shall dem20 onstrate that the use of the authority under 

21 that subparagraph will induce additional ven22 ture capital funding of small business innova23 tions, substantially contribute to the mission of 

24 the funding Federal agency, demonstrate a 

25 need for public research, and otherwise fulfill 


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1 the capital needs of small business concerns for 

2 additional financing for the SBIR project. 

3 ‘‘(2) QUALIFICATION REQUIREMENTS.—The 

4 Administrator shall establish requirements relating 

5 to the affiliation by small business concerns with 

6 venture capital companies, which may not exclude a 

7 United States small business concern from participa8 tion in the program under paragraph (1) on the 

9 basis that the small business concern is owned in 

10 majority part by, or controlled by, more than 1 

11 United States venture capital company, so long as 

12 no single venture capital company owns more than 

13 49 percent of the small business concern. 

14 ‘‘(3) REGISTRATION.—Any small business con15 cern that is majority owned and controlled by mul16 tiple venture capital companies and qualified for 

17 participation in the program authorized under para18 graph (1) shall— 

19 ‘‘(A) register with the Administrator on 

20 the date that the small business concern sub21 mits an application for an award under the 

22 SBIR program; and 

23 ‘‘(B) indicate whether the small business 

24 concern is registered under subparagraph (A) in 

25 any SBIR proposal. 


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1 ‘‘(4) COMPLIANCE.—A Federal agency de2 scribed in paragraph (1) shall collect data regarding 

3 the number and dollar amounts of phase I, phase II, 

4 and all other categories of awards under the SBIR 

5 program, and the Administrator shall report on the 

6 data and the compliance of each such Federal agen7 cy with the maximum amounts under paragraph (1) 

8 as part of the annual report by the Administration 

9 under subsection (b)(7). 

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

11 awards more than the amount authorized under 

12 paragraph (1) for a purpose described in paragraph 

13 (1), the amount awarded in excess of the amount 

14 authorized under paragraph (1) shall be transferred 

15 to the funds for general SBIR programs from the 

16 non-SBIR research and development funds of the 

17 Federal agency within 60 days of the date on which 

18 the Federal agency awarded more than the amount 

19 authorized under paragraph (1) for a purpose de20 scribed in paragraph (1).’’. 

21 (b) TECHNICAL AND CONFORMING AMENDMENT.— 

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

23 amended by adding at the end the following: 

24 ‘‘(t) VENTURE CAPITAL COMPANY.—In this Act, the 

25 term ‘venture capital company’ means an entity described 


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1 in clause (i), (v), or (vi) of section 121.103(b) of title 13, 

2 Code of Federal Regulations (or any successor thereto).’’. 

3 (c) ASSISTANCE FOR DETERMINING AFFILIATES.— 

4 Not later than 30 days after the date of enactment of this 

5 Act, the Administrator shall post on the website of the 

6 Administration (with a direct link displayed on the home7 page of the website of the Administration or the SBIR 

8 website of the Administration)— 

9 (1) a clear explanation of the SBIR affiliation 

10 rules under part 121 of title 13, Code of Federal 

11 Regulations; and 

12 (2) contact information for officers or employ13 ees of the Administration who— 

14 (A) upon request, shall review an issue re15 lating to the rules described in paragraph (1); 

16 and 

17 (B) shall respond to a request under sub18 paragraph (A) not later than 20 business days 

19 after the date on which the request is received. 

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.—Congress intends 

25 that, to the greatest extent practicable, Federal 


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1 agencies and Federal prime contractors shall issue 

2 Phase III awards, including sole source awards, to 

3 the SBIR and STTR award recipients that devel4 oped 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 issue 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 a 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 and STTR Policy 

18 Directives; or 

19 ‘‘(C) approve an agreement that violates 

20 any provision, including any data rights protec21 tions provision, of this section or the SBIR and 

22 the STTR Policy Directives. 

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

24 days after the date of enactment of this subsection, 

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1 rective and the STTR Policy Directive issued under 

2 this section to ensure that small business concerns— 

3 ‘‘(A) have the flexibility to use the re4 sources of the Federal laboratories and feder5 ally funded research and development centers; 

6 and 

7 ‘‘(B) are not mandated to enter into agree8 ment with any Federal laboratory or any feder9 ally funded laboratory or research and develop10 ment center as a condition of an award.’’. 

11 SEC. 111. NOTICE REQUIREMENT. 

12 The head of any Federal agency involved in a case 

13 or controversy before any Federal judicial or administra14 tive tribunal concerning the SBIR program or the STTR 

15 program shall provide timely notice, as determined by the 

16 Administrator, of the case or controversy to the Adminis17 trator. 

18 TITLE II—OUTREACH AND COM19 MERCIALIZATION INITIA20 TIVES 

21 SEC. 201. RURAL AND STATE OUTREACH. 

22 (a) OUTREACH.—Section 9 of the Small Business Act 

23 (15 U.S.C. 638) is amended by inserting after subsection 

24 (r) the following: 

25 ‘‘(s) OUTREACH.— 


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1 ‘‘(1) DEFINITION OF ELIGIBLE STATE.—In this 

2 subsection, the term ‘eligible State’ means a State— 

3 ‘‘(A) if the total value of contracts award4 ed to the State under this section during the 

5 most recent fiscal year for which data is avail6 able was less than $5,000,000; and 

7 ‘‘(B) that certifies to the Administration 

8 described in paragraph (2) that the State will, 

9 upon receipt of assistance under this sub10 section, provide matching funds from non-Fed11 eral sources in an amount that is not less than 

12 50 percent of the amount provided under this 

13 subsection. 

14 ‘‘(2) PROGRAM AUTHORITY.—Of amounts made 

15 available to carry out this section for each of the fis16 cal years 2000 through 2014, the Administrator 

17 may expend with eligible States not more than 

18 $5,000,000 in each such fiscal year in order to in19 crease the participation of small business concerns 

20 located in those States in the programs under this 

21 section. 

22 ‘‘(3) AMOUNT OF ASSISTANCE.—The amount of 

23 assistance provided to an eligible State under this 

24 subsection in any fiscal year— 


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1 ‘‘(A) shall be equal to not more than 50 

2 percent of the total amount of matching funds 

3 from non-Federal sources provided by the 

4 State; and 

5 ‘‘(B) shall not exceed $100,000. 

6 ‘‘(4) USE OF ASSISTANCE.—Assistance provided 

7 to an eligible State under this subsection shall be 

8 used by the State, in consultation with State and 

9 local departments and agencies, for programs and 

10 activities to increase the participation of small busi11 ness concerns located in the State in the programs 

12 under this section, including— 

13 ‘‘(A) the establishment of quantifiable per14 formance goals, including goals relating to 

15 ‘‘(i) the number of program awards 

16 under this section made to small business 

17 concerns in the State; and 

18 ‘‘(ii) the total amount of Federal re19 search and development contracts awarded 

20 to small business concerns in the State; 

21 ‘‘(B) the provision of competition outreach 

22 support to small business concerns in the State 

23 that are involved in research and development; 

24 ‘‘(C) the development and dissemination of 

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1 ing to the programs under this section to small 

2 business concerns in the State; and 

3 ‘‘(D) the establishment of initiatives to 

4 reach out to women and minorities with the 

5 goal of increasing their involvement in the 

6 SBIR and STTR programs.’’ 

7 (b) FEDERAL AND STATE PROGRAM EXTENSION.— 

8 Section 34 of the Small Business Act(15 U.S.C. 657d) is 

9 amended— 

10 (1) in subsection (h), by striking ‘‘2001 

11 through 2005’’ each place it appears and inserting 

12 ‘‘2009 through 2014’’; and 

13 (2) in subsection (i), by striking ‘‘2005’’ and in14 serting ‘‘2014’’. 

15 (c) RURAL AREAS.—Section 34(e)(2) of the Small 

16 Business Act (15 U.S.C. 657d(e)(2)) is amended— 

17 (1) by redesignating subparagraphs (C) and 

18 (D) as subparagraphs (D) and (E), respectively; and 

19 (2) by inserting after subparagraph (B) the fol20 lowing: 

21 ‘‘(C) RURAL AREAS.— 

22 ‘‘(i) IN GENERAL.—Except as pro23 vided in clause (ii), the non-Federal share 

24 of the cost of the activity carried out using 

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1 ment under this section shall be 50 cents 

2 for each Federal dollar that will be directly 

3 allocated by a recipient described in para4 graph (A) to serve small business concerns 

5 located in a rural area. 

6 ‘‘(ii) ENHANCED RURAL AWARDS.— 

7 For a recipient located in a rural area that 

8 is located in a State described in subpara9 graph (A)(i), the non-Federal share of the 

10 cost of the activity carried out using an 

11 award or under a cooperative agreement 

12 under this section shall be 35 cents for 

13 each Federal dollar that will be directly al14 located by a recipient described in para15 graph (A) to serve small business concerns 

16 located in the rural area. 

17 ‘‘(iii) DEFINITION OF RURAL AREA.— 

18 In this subparagraph, the term ‘rural area’ 

19 has the meaning given that term in section 

20 1393(a)(2)) of the Internal Revenue Code 

21 of 1986.’’. 

22 SEC. 202. SBIR–STEM WORKFORCE DEVELOPMENT GRANT 

23 PILOT PROGRAM. 

24 (a) PILOT PROGRAM ESTABLISHED.—From amounts 

25 made available to carry out this section, the Administrator 


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1 shall establish a SBIR–STEM Workforce Development 

2 Grant Pilot Program to encourage the business commu3 nity to provide workforce development opportunities for 

4 college students, in the fields of science, technology, engi5 neering, and math (in this section referred to as ‘‘STEM 

6 college students’’), by providing a SBIR bonus grant. 

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

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

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

10 grant under subsection (a) that provides an internship 

11 program for STEM college students. 

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

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

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

15 not more than $10,000 per year. 

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

17 funding under this section, the Administrator shall submit 

18 a report to Congress on the results of the SBIR–STEM 

19 Workforce Development Grant Pilot Program. 

20 (e) AUTHORIZATION OF APPROPRIATIONS.—There 

21 are authorized to be appropriated to carry out this sec22 tion— 

23 (1) $1,000,000 for fiscal year 2010; 

24 (2) $1,000,000 for fiscal year 2011; 

25 (3) $1,000,000 for fiscal year 2012; 


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1 (4) $1,000,000 for fiscal year 2013; and 

2 (5) $1,000,000 for fiscal year 2014. 

3 SEC. 203. TECHNICAL ASSISTANCE FOR AWARDEES. 

4 Section 9(q)(3) of the Small Business Act (15 U.S.C. 

5 638(q)(3)) is amended— 

6 (1) in subparagraph (A), by striking ‘‘$4,000’’ 

7 and inserting ‘‘$5,000’’; 

8 (2) in subparagraph (B)— 

9 (A) by striking ‘‘with funds available from 

10 their SBIR awards’’ and inserting ‘‘which shall 

11 be in addition to the amount of the recipient’s 

12 award’’; 

13 (B) by striking ‘‘$4,000’’ and inserting 

14 ‘‘$5,000’’; and 

15 (C) by striking the period at the end and 

16 inserting a semicolon; and 

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

18 ‘‘(C) FLEXIBILITY.—In carrying out sub19 paragraphs (A) and (B), each Federal agency 

20 shall provide the allowable amounts to a recipi21 ent that meets the eligibility requirements 

22 under the applicable subparagraph, if the re23 cipient requests to seek technical assistance 

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1 dor selected under paragraph (2) by the Fed2 eral agency. 

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

4 not— 

5 ‘‘(i) use the amounts authorized under 

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

7 selected under paragraph (2) provides the 

8 technical assistance to the recipient; or 

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

10 under paragraph (2) under which the 

11 amount provided for technical assistance is 

12 based on total number of Phase I or Phase 

13 II awards.’’. 

14 SEC. 204. COMMERCIALIZATION PILOT PROGRAM AT DE15 PARTMENT OF DEFENSE. 

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

17 638(y)) is amended— 

18 (1) in paragraph (1)— 

19 (A) by inserting ‘‘or Small Business Tech20 nology Transfer Program’’ after ‘‘Small Busi21 ness Innovation Research Program’’; and 

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

23 ‘‘The authority to create and administer a Com24 mercialization Pilot Program under this sub25 section may not be construed to eliminate or reVerDate Aug 31 2005 05:15 Jul 30, 2008 Jkt 069200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6201 E:\BILLS\S3362.IS S3362

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1 place any other SBIR program or STTR pro2 gram that enhances the insertion or transition 

3 of SBIR or STTR technologies, including any 

4 such program in effect on the date of enact5 ment of the National Defense Authorization Act 

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

7 119 Stat. 3136).’’; 

8 (2) in paragraph (2), by inserting ‘‘or Small 

9 Business Technology Transfer Program’’ after 

10 ‘‘Small Business Innovation Research Program’’; 

11 (3) by redesignating paragraphs (5) and (6) as 

12 paragraphs (7) and (8), respectively; 

13 (4) by inserting after paragraph (4) the fol14 lowing: 

15 ‘‘(5) INSERTION INCENTIVES.—For any con16 tract with a value of not less than $100,000,000, the 

17 Secretary of Defense is authorized to— 

18 ‘‘(A) establish goals for transitioning 

19 Phase III technologies in subcontracting plans; 

20 and 

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

22 contract to report the number and dollar 

23 amount of contracts entered into by that prime 

24 contractor for Phase III SBIR or STTR 

25 projects. 


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

2 INSERTION.—The Secretary of Defense shall— 

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

4 Phase II SBIR contracts and the number of 

5 Phase II STTR contracts awarded by that Sec6 retary that lead to technology transition into 

7 programs of record or fielded systems; 

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

9 enactment of the SBIR/STTR Reauthorization 

10 Act of 2008, or create new incentives, to en11 courage agency program managers and prime 

12 contractors to meet the goal under subpara13 graph (A); and 

14 ‘‘(C) include in the annual report to Con15 gress the percentage of contracts described in 

16 subparagraph (A) awarded by that Secretary, 

17 which shall include information on the ongoing 

18 status of projects funded through the Commer19 cialization Pilot Program and efforts to transi20 tion these technologies into programs of record 

21 or fielded systems.’’; and 

22 (5) in paragraph (8), as so redesignated, by 

23 striking ‘‘fiscal year 2009’’ and inserting ‘‘fiscal year 

24 2014’’. 


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1 SEC. 205. COMMERCIALIZATION PILOT PROGRAM FOR CI2 VILIAN AGENCIES. 

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

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

5 the following: 

6 ‘‘(ee) PILOT PROGRAM.— 

7 ‘‘(1) AUTHORIZATION.—Except for the Depart8 ment of Defense, the head of each participating Fed9 eral agency may set aside not more than 10 percent 

10 of the SBIR and STTR funds of such agency for 

11 further technology development, testing, and evalua12 tion of SBIR and STTR Phase II technologies (in 

13 this section referred to as a ‘pilot program’). 

14 ‘‘(2) REQUIREMENTS.— 

15 ‘‘(A) IN GENERAL.—A Federal agency may 

16 not establish a pilot program unless such agen17 cy makes a written application to the Adminis18 trator, not less than 90 days prior to the begin19 ning of the fiscal year in which such pilot pro20 gram is to be established, based on a compelling 

21 reason that additional investment in SBIR or 

22 STTR technologies is required due to unusually 

23 high regulatory, systems integration, or other 

24 costs relating to development or manufacturing 

25 of identifiable, highly promising small business 

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1 pected to substantially advance the agency’s 

2 mission. 

3 ‘‘(B) DETERMINATION.—The Adminis4 trator shall— 

5 ‘‘(i) make a determination regarding 

6 an application submitted under subpara7 graph (A) not later than 30 days before 

8 the beginning of the fiscal year for which 

9 such application is submitted; 

10 ‘‘(ii) publish such decision in the Fed11 eral Register; and 

12 ‘‘(iii) make a copy of such decision, 

13 and any related materials available to the 

14 Committee on Small Business and Entre15 preneurship of the Senate and the Com16 mittee on Small Business of the House of 

17 Representatives. 

18 ‘‘(C) MAXIMUM AMOUNT.—No award 

19 under a pilot program may be made in excess 

20 of 2 times the dollar amounts generally estab21 lished for Phase II awards under this section. 

22 ‘‘(D) MATCHING.—No award may be made 

23 under a pilot program unless new private, Fed24 eral non-SBIR, or Federal non-STTR funding 

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1 eral agency is dedicated towards SBIR or 

2 STTR Phase II technology. 

3 ‘‘(E) ELIGIBILITY.—Awards under a pilot 

4 program may be made to any applicant that is 

5 eligible to receive a Phase III award related to 

6 such SBIR or STTR Phase II technology. 

7 ‘‘(F) REGISTRATION.—Applicants receiving 

8 awards under a pilot program shall register 

9 with the Administrator in a publicly available 

10 registry. 

11 ‘‘(G) TERMINATION.—The authority to es12 tablish a pilot program under this section ex13 pires at the end of fiscal year 2014.’’. 

14 SEC. 206. NANOTECHNOLOGY INITIATIVE. 

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

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

17 by adding at the end the following: 

18 ‘‘(ff) NANOTECHNOLOGY INITIATIVE.—Each Federal 

19 agency participating in the SBIR or STTR program shall 

20 encourage the submission of applications for support of 

21 nanotechnology related projects to such program.’’. 

22 (b) SUNSET.—Effective October 1, 2014, subsection 

23 (ff) of the Small Business Act, as added by subsection (a) 

24 of this section, is repealed. 


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1 SEC. 207. ACCELERATING CURES. 

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

3 amended— 

4 (1) by redesignating section 44 as section 45; 

5 and 

6 (2) by inserting after section 43 the following: 

7 ‘‘SEC. 44. SMALL BUSINESS INNOVATION RESEARCH PRO8 GRAM. 

9 ‘‘(a) NIH CURES PILOT.— 

10 ‘‘(1) ESTABLISHMENT.—An independent advi11 sory board shall be established at the National Acad12 emy of Sciences to conduct periodic evaluations of 

13 the SBIR program (as that term is defined in sec14 tion 9) of all the National Institutes of Health (re15 ferred to in this section as the ‘NIH’) institutes and 

16 centers for the purpose of improving the manage17 ment of the SBIR program through data-driven as18 sessment. 

19 ‘‘(2) MEMBERSHIP.— 

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

21 shall consist of— 

22 ‘‘(i) the Director of the NIH, the Di23 rector of the SBIR program, senior NIH 

24 agency managers, industry experts, and 

25 other program stakeholders; and 


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1 ‘‘(ii) awardees under the SBIR pro2 gram of the NIH. 

3 ‘‘(B) EQUAL REPRESENTATION.—The 

4 number of members of the advisory board de5 scribed in clause (i) of subparagraph (A) shall 

6 be equal to the number of members of the advi7 sory board described in clause (ii) of subpara8 graph (A) . 

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

10 the evidence-base guiding SBIR program decisions and 

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

12 shall address the gaps and deficiencies in the data collec13 tion concerns identified in the 2007 National Academies 

14 of Science’s report entitled ‘An Assessment of the Small 

15 Business Innovation Research Program at the NIH’. 

16 ‘‘(c) PILOT PROGRAM.— 

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

18 program of the NIH may initiate a pilot program, 

19 under a formal mechanism for designing, imple20 menting, and evaluating pilot programs, to spur in21 novation and to test new strategies that may en22 hance the development of cures and therapies. 

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

24 SBIR program of the NIH may consider conducting 

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1 ful SBIR program experience in study sections, hir2 ing individuals with small business development ex3 perience for staff positions, separating the commer4 cial and scientific review processes, and examining 

5 the impact of the trend toward larger awards on the 

6 overall program. 

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

8 NIH shall submit an annual report to Congress and the 

9 independent advisory board described in subsection (a) on 

10 the activities of the SBIR program of the NIH under this 

11 section. 

12 ‘‘(e) SBIR GRANTS AND CONTRACTS.— 

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

14 contracts under the SBIR program of the NIH each 

15 SBIR program manager shall place an emphasis on 

16 applications that identify from the onset products 

17 and services that may enhance the development of 

18 cures and therapies. 

19 ‘‘(2) EXAMINATION OF COMMERCIALIZATION

20 AND OTHER METRICS.—The independent advisory 

21 board described in subsection (a) shall evaluate the 

22 implementation of the requirement under paragraph 

23 (1) by examining increased commercialization and 

24 other metrics, to be determined and collected by the 

25 SBIR program of the NIH. 


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

2 practicable, the Director of the SBIR program of 

3 the NIH shall reduce the time period between Phase 

4 I and Phase II funding of grants and contracts 

5 under the SBIR program of the NIH to 6 months. 

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

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

8 Small Business Act (15 U.S.C. 638)) of the NIH for re9 search or research and development may be used for the 

10 pilot programs under subsection (c) and to carry out sub11 section (e). 

12 ‘‘(g) SUNSET.—This section shall cease to be effective 

13 on the date that is 5 years after the date of enactment 

14 of the SBIR/STTR Reauthorization Act of 2008.’’. 

15 TITLE III—OVERSIGHT AND 

16 EVALUATION 

17 SEC. 301. STREAMLINING ANNUAL EVALUATION REQUIRE18 MENTS. 

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

20 638(b)), as amended by section 103 of this Act, is amend21 ed— 

22 (1) in paragraph (7)— 

23 (A) by striking ‘‘STTR programs, includ24 ing the data’’ and inserting the following: 

25 ‘‘STTR programs, including— 


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1 ‘‘(A) the data’’; 

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

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

4 through ‘‘under each of the SBIR and STTR 

5 programs, and a description’’ and inserting the 

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

7 ‘‘(B) the number of proposals received 

8 from, and the number and total amount of 

9 awards to, HUBZone small business concerns 

10 and firms with venture capital investment (in11 cluding those majority owned and controlled by 

12 multiple venture capital firms) under each of 

13 the SBIR and STTR programs; 

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

15 each Federal agency is increasing outreach and 

16 awards to firms owned and controlled by women 

17 and minorities under each of the SBIR and 

18 STTR programs; 

19 ‘‘(D) general information about the imple20 mentation and compliance with the allocation of 

21 funds for firms majority owned and controlled 

22 by multiple venture capital firms under each of 

23 the SBIR and STTR programs; 

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

25 Phase III awards and notices of noncompliance 


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1 with the SBIR and the STTR Policy Directives 

2 filed by the Administrator with Federal agen3 cies; and 

4 ‘‘(F) a description’’; and 

5 (2) by inserting after paragraph (7) the fol6 lowing: 

7 ‘‘(8) to coordinate the implementation of elec8 tronic databases at each of the participating agen9 cies, including the technical ability of the partici10 pating agencies to electronically share data;’’. 

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

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

13 638(g)) is amended— 

14 (1) by striking paragraph (10); 

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

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

17 (3) by inserting after paragraph (7) the fol18 lowing: 

19 ‘‘(8) collect, and maintain in a common format 

20 in accordance with the simplified reporting require21 ments under subsection (v), such information from 

22 awardees as is necessary to assess the SBIR pro23 gram, including information necessary to maintain 

24 the database described in subsection (k), including— 

25 ‘‘(A) whether an awardee— 


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1 ‘‘(i) has venture capital or is majority 

2 owned and controlled by multiple venture 

3 capital firms, and, if so— 

4 ‘‘(I) the amount of venture cap5 ital that the awardee has received as 

6 of the date of the award; and 

7 ‘‘(II) the amount of additional 

8 capital that the awardee has invested 

9 in the SBIR technology, which shall 

10 be collected on an annual basis; 

11 ‘‘(ii) has an investor who— 

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

13 citizen of the United States or a law14 ful permanent resident of the United 

15 States, and if so, the name of any 

16 such individual; or 

17 ‘‘(II) is a person that is not an 

18 individual and is not organized under 

19 the laws of a State or the United 

20 States, and if so the name of any such 

21 person; 

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

23 woman as a principal investigator; 

24 ‘‘(iv) is owned by a minority or has a 

25 minority as a principal investigator; 


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1 ‘‘(v) received assistance under the 

2 FAST program under section 34 or the 

3 outreach program under subsection (s); or 

4 ‘‘(vi) is university faculty or a univer5 sity student; and 

6 ‘‘(B) a justification statement from the 

7 agency, if an awardee receives an award in an 

8 amount that is more than the award guidelines 

9 under this section;’’; and 

10 (4) in paragraph (10), as so redesignated, by 

11 adding ‘‘and’’ at the end. 

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

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

14 638(o)) is amended— 

15 (1) by striking paragraph (9) and inserting the 

16 following: 

17 ‘‘(9) collect, and maintain in a common format 

18 in accordance with the simplified reporting require19 ments under subsection (v), such information from 

20 applicants and awardees as is necessary to assess 

21 the STTR program outputs and outcomes, including 

22 information necessary to maintain the database de23 scribed in subsection (k), including— 

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


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1 ‘‘(i) has venture capital or is majority 

2 owned and controlled by multiple venture 

3 capital firms, and, if so— 

4 ‘‘(I) the amount of venture cap5 ital that the applicant or awardee has 

6 received as of the date of the applica7 tion or award, as applicable; and 

8 ‘‘(II) the amount of additional 

9 capital that the applicant or awardee 

10 has invested in the SBIR technology, 

11 which shall be collected on an annual 

12 basis; 

13 ‘‘(ii) has an investor who— 

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

15 citizen of the United States or a law16 ful permanent resident of the United 

17 States, and if so, the name of any 

18 such individual; or 

19 ‘‘(II) is a person that is not an 

20 individual and is not organized under 

21 the laws of a State or the United 

22 States, and if so the name of any such 

23 person; 

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

25 woman as a principal investigator; 


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1 ‘‘(iv) is owned by a minority or has a 

2 minority as a principal investigator; 

3 ‘‘(v) received assistance under the 

4 FAST program under section 34 or the 

5 outreach program under subsection (s); or 

6 ‘‘(vi) is university faculty or a univer7 sity student; and 

8 ‘‘(B) a justification statement from the 

9 agency, if an awardee receives an award in an 

10 amount that is more than the award guidelines 

11 under this section;’’; 

12 (2) in paragraph (14), by adding ‘‘and’’ at the 

13 end; 

14 (3) by striking paragraph (15); and 

15 (4) by redesignating paragraph (16) as para16 graph (15). 

17 SEC. 304. PUBLIC DATABASE. 

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

19 638(k)(1)) is amended— 

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

21 the end; 

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

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

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


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

2 has received a Phase I or Phase II SBIR or 

3 STTR award from a Federal agency, whether 

4 the small business concern— 

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

6 whether the small business concern is reg7 istered as majority owned and controlled 

8 by multiple venture capital companies as 

9 required under subsection (cc)(3); 

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

11 woman as a principal investigator; 

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

13 minority as a principal investigator; 

14 ‘‘(iv) received assistance under the 

15 FAST program under section 34 or the 

16 outreach program under subsection (s); or 

17 ‘‘(v) is owned by university faculty or 

18 a university student.’’. 

19 SEC. 305. GOVERNMENT DATABASE. 

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

21 638(k)(2)) is amended— 

22 (1) by redesignating subparagraphs (C), (D), 

23 and (E) as subparagraphs (D), (E), and (F), respec24 tively; 


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1 (2) by inserting after subparagraph (B) the fol2 lowing: 

3 ‘‘(C) includes, for each awardee— 

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

5 identifying number assigned by the Admin6 istration; 

7 ‘‘(ii) whether the awardee has venture 

8 capital, and, if so— 

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

11 ‘‘(II) the percentage of ownership 

12 of the awardee held by a venture cap13 ital firm, including whether the 

14 awardee is majority owned and con15 trolled by multiple venture capital 

16 firms; and 

17 ‘‘(III) the amount of additional 

18 capital that the awardee has invested 

19 in the SBIR technology, which shall 

20 be collected on an annual basis; 

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

22 affiliates of the awardee; 

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

24 awardee; 


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

2 affiliates of the awardee; and 

3 ‘‘(vi) the names and percentage of 

4 ownership of the awardee held by— 

5 ‘‘(I) an individual who is not a 

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

8 States; or 

9 ‘‘(II) a person that is not an in10 dividual and is not organized under 

11 the laws of a State or the United 

12 States;’’; and 

13 (3) in subparagraph (D), as so redesignated— 

14 (A) in clause (ii), by striking ‘‘and’’ at the 

15 end; and 

16 (B) by adding at the end, the following: 

17 ‘‘(iv) whether the applicant was ma18 jority owned and controlled by multiple 

19 venture capital firms; and 

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

21 applicant;’’. 

22 SEC. 306. ACCURACY IN FUNDING BASE CALCULATIONS. 

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

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1 after, the Comptroller General of the United States 

2 shall— 

3 (1) conduct a fiscal and management audit of 

4 the SBIR program and the STTR program for the 

5 applicable period to determine whether Federal 

6 agencies are complying with the allocation require7 ments of this title and the amendments made by this 

8 title; 

9 (2) assess the extent of compliance with the re10 quirements of subparagraphs (A) and (B) of section 

11 9(i)(2) of the Small Business Act (15 U.S.C. 

12 638(i)(2)) by participating agencies and the Admin13 istration; 

14 (3) assess whether it would be more consistent 

15 and effective to base the amount of the allocations 

16 under the SBIR program and the STTR program on 

17 a percentage of the research and development budg18 et of a Federal agency, rather than the extramural 

19 budget of the Federal agency; 

20 (4) determine the portion of the extramural re21 search or research and development budget of a 

22 Federal agency that each Federal agency is spending 

23 for administrative purposes relating to the SBIR 

24 program or STTR program, and for what specific 

25 purposes, including whether and, if so, the portion 


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1 of such budget the Federal agency is spending for 

2 salaries and expenses, travel to visit applicants, out3 reach events, marketing, and technical assistance; 

4 and 

5 (5) submit a report to the Committee on Small 

6 Business and Entrepreneurship of the Senate and 

7 the Committee on Small Business of the House of 

8 Representatives regarding the audit conducted under 

9 paragraph (1), the assessments required under para10 graphs (2) and (3), and the determination made 

11 under paragraph (4). 

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

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

14 (1) for the first report submitted under this 

15 section, the period beginning on October 1, 2000, 

16 and ending on September 30 of the last full fiscal 

17 year before the date of enactment of this Act for 

18 which information is available; and 

19 (2) for the second and each subsequent report 

20 submitted under this section, the period— 

21 (A) beginning on October 1 of the first fis22 cal year after the end of the most recent full 

23 fiscal year relating to which a report under this 

24 section was submitted; and 


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1 (B) ending on September 30 of the last 

2 full fiscal year before the date of the report. 

3 SEC. 307. CONTINUED EVALUATION BY THE NATIONAL 

4 ACADEMY OF SCIENCES. 

5 Section 108 of the Small Business Reauthorization 

6 Act of 2000 (Public Law 106–554; 114 Stat. 2763A–671) 

7 is amended by adding at the end the following: 

8 ‘‘(e) EXTENSIONS AND ENHANCEMENTS OF AUTHOR9 ITY.— 

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

11 after the date of enactment of the SBIR/STTR Re12 authorization Act of 2008, the head of each agency 

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

14 Small Business Administration, shall cooperatively 

15 enter into an agreement with the National Academy 

16 of Sciences for the National Research Council to 

17 conduct a study described in subsection (a)(1) and 

18 make recommendations described in subsection 

19 (a)(2) not later than 4 years after the date of enact20 ment of the SBIR/STTR Reauthorization Act of 

21 2008, and every 4 years thereafter. 

22 ‘‘(2) REPORTING.—An agreement under para23 graph (1) shall require that not later than 4 years 

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1 after, the National Research Council shall submit to 

2 the head of the agency entering into the agreement, 

3 the Committee on Small Business and Entrepre4 neurship of the Senate, and the Committee on Small 

5 Business of the House of Representatives a report 

6 regarding the study conducted under paragraph (1) 

7 and containing the recommendations described in 

8 paragraph (1).’’. 

9 SEC. 308. TECHNOLOGY INSERTION REPORTING REQUIRE10 MENTS. 

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

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

13 the following: 

14 ‘‘(gg) PHASE III REPORTING.—The annual SBIR or 

15 STTR report to Congress by the Administration under 

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

17 by the Federal agency— 

18 ‘‘(1) the name of the contracting agency; 

19 ‘‘(2) the identity of the agency or company 

20 making the Phase III award; 

21 ‘‘(3) the identity of the company or individual 

22 receiving the Phase III award; 

23 ‘‘(4) the dollar amount of the Phase III award; 

24 and 


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1 ‘‘(5) the Federal agency, or component of a 

2 Federal agency, making the Phase III 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 are adhering to the data 

8 rights protections for SBIR awardees and the tech9 nologies of SBIR awardees; 

10 (2) the laws and policy directives intended to 

11 clarify the scope of data rights, including in proto12 types and mentor-prote ́ge ́ relationships and agree13 ments with Federal laboratories, are sufficient to 

14 protect SBIR awardees; and 

15 (3) there is an effective grievance tracking proc16 ess for SBIR awardees who have grievances against 

17 a Federal agency regarding data rights and a proc18 ess for resolving those grievances. 

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

20 date of enactment of this Act, the Comptroller General 

21 shall submit to the Committee on Small Business and En22 trepreneurship of the Senate and the Committee on Small 

23 Business of the House of Representatives a report regard24 ing the study conducted under subsection (a). 


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1 TITLE IV—POLICY DIRECTIVES 

2 SEC. 401. CONFORMING AMENDMENTS TO THE SBIR AND 

3 THE STTR POLICY DIRECTIVES. 

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

5 date of enactment of this Act, the Administrator shall pro6 mulgate amendments to the SBIR Policy Directive and 

7 the STTR Policy Directive to conform such directives to 

8 this Act and the amendments made by this Act. 

9 (b) PUBLISHING SBIR POLICY DIRECTIVE AND THE

10 STTR POLICY DIRECTIVE IN THE FEDERAL REGISTER.— 

11 The Administration shall publish the amended SBIR Pol12 icy Directive and the amended STTR Policy Directive in 

13 the Federal Register. 

Æ 


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