II 

Calendar No. 943 

110TH CONGRESS 

2D SESSION S. 3362 

[Report No. 110–447] 

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, Ms. SNOWE, Mr. LIEBERMAN, Ms. LANDRIEU, Mr. 

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

AUGUST 22 (legislative day, AUGUST 1), 2008 

Reported under authority of the order of the Senate of August 1, 2008, by 

Mr. KERRY, without amendment 

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’’. 


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1 SEC. 2. TABLE OF CONTENTS. 

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

Sec. 1. Short title. 

Sec. 2. Table of contents. 

Sec. 3. Definitions. 

TITLE I—REAUTHORIZATION OF THE SBIR AND STTR PROGRAMS 

Sec. 101. Extension of termination dates. 

Sec. 102. Status of the office of technology. 

Sec. 103. SBIR 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. 

3 SEC. 3. DEFINITIONS. 

4 In this Act— 


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1 (1) the terms ‘‘Administration’’ and ‘‘Adminis2 trator’’ mean the Small Business Administration 

3 and the Administrator thereof, respectively; 

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

5 agency’’, ‘‘Small Business Innovation Research Pro6 gram’’, ‘‘SBIR’’, ‘‘Small Business Technology 

7 Transfer Program’’, and ‘‘STTR’’ have the mean8 ings given such terms in section 9 of the Small Busi9 ness Act (15 U.S.C. 638); and 

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

11 same meaning as under section 3 of the Small Busi12 ness Act (15 U.S.C. 632). 

13 TITLE I—REAUTHORIZATION OF 

14 THE SBIR AND STTR PROGRAMS 

15 SEC. 101. EXTENSION OF TERMINATION DATES. 

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

17 (15 U.S.C. 638(m)) is amended by striking ‘‘2008’’ and 

18 inserting ‘‘2022’’. 

19 (b) STTR.—Section 9(n)(1)(A) of the Small Busi20 ness Act (15 U.S.C. 638(n)(1)(A)) is amended by striking 

21 ‘‘2009’’ and inserting ‘‘2023’’. 

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

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

24 638(b)) is amended— 


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

2 end; 

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

4 the end and inserting ‘‘; and’’; 

5 (3) by redesignating paragraph (8) as para6 graph (9); and 

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

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

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

10 this section, headed by the Assistant Adminis11 trator for Technology, who shall report directly 

12 to the Administrator; and 

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

14 Office of Government Contracting and suffi15 ciently staffed and funded to comply with the 

16 oversight, reporting, and public database re17 sponsibilities assigned to the Office of Tech18 nology by the Administrator.’’. 

19 SEC. 103. SBIR CAP INCREASE. 

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

21 638(f)) is amended— 

22 (1) in paragraph (1)— 

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

24 ‘‘and’’ at the end; and 


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1 (B) by striking subparagraph (C) and in2 serting the following: 

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

4 budget in fiscal year 2009; 

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

6 budget in fiscal year 2010; 

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

8 budget in fiscal year 2011; 

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

10 budget in fiscal year 2012; 

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

12 budget in fiscal year 2013; 

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

14 budget in fiscal year 2014; 

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

16 budget in fiscal year 2015; 

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

18 budget in fiscal year 2016; 

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

20 budget in fiscal year 2017; 

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

22 budget in fiscal year 2018; and 

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

24 budget in fiscal year 2019 and each fiscal year 

25 thereafter,’’; and 


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1 (2) in paragraph (2)— 

2 (A) by redesignating subparagraphs (A) 

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

4 adjusting the margins accordingly; 

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

6 inserting the following: 

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

8 and 

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

10 ‘‘(B) DEPARTMENT OF DEFENSE AND DE11 PARTMENT OF ENERGY.—For the Department 

12 of Defense and the Department of Energy, to 

13 the greatest extent practicable, the increased 

14 percentage of expenditures required under sub15 paragraphs (D) through (M) of paragraph (1) 

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

17 awards and shall be used for activities that fur18 ther the technology readiness levels of tech19 nologies being developed under Phase II 

20 awards, including to conduct testing and eval21 uation, in order to promote the transition of 

22 such technologies into commercial or defense 

23 products or systems furthering the mission 

24 needs of the Department of Defense or the De25 partment of Energy, as the case may be. 


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1 ‘‘(C) DEPARTMENT OF HEALTH AND

2 HUMAN SERVICES.—Subparagraphs (D) 

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

4 the Department of Health and Human Services. 

5 For fiscal year 2009, and each fiscal year there6 after, the Department of Health and Human 

7 Services shall expend with small business con8 cerns not less than 2.5 percent of the extra9 mural budget for research or research and de10 velopment of the department of Health and 

11 Human Services.’’. 

12 SEC. 104. STTR CAP INCREASE. 

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

14 U.S.C. 638(n)(1)(B)) is amended— 

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

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

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

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

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

20 and 2011; 

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

22 and 2013; and 

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

24 and each fiscal year thereafter.’’. 


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1 SEC. 105. SBIR AND STTR AWARD LEVELS. 

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

3 Small Business Act (15 U.S.C. 638(j)(2)(D)) is amend4 ed— 

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

6 ‘‘$150,000’’; and 

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

8 ‘‘$1,000,000’’. 

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

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

11 amended— 

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

13 ‘‘$150,000’’; and 

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

15 ‘‘$1,000,000’’. 

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

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

18 (1) in subsection (j)(2)(D)— 

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

20 years’’; and 

21 (B) by striking ‘‘and programmatic consid22 erations’’; and 

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

24 ‘‘greater or lesser amounts to be awarded at the dis25 cretion of the awarding agency,’’ and inserting ‘‘and 


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1 an adjustment for inflation of such amounts once 

2 every 3 years,’’. 

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

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

5 adding at the end the following: 

6 ‘‘(aa) LIMITATION ON CERTAIN AWARDS.—No Fed7 eral agency may issue an award under the SBIR program 

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

9 the award guidelines established under this section by 

10 more than 50 percent. Participating agencies shall main11 tain information on awards exceeding the guidelines, in12 cluding award amounts, justification for exceeding the 

13 amount, identities and locations of recipients, whether a 

14 recipient has received venture capital investment and, if 

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

16 multiple venture capital companies, and the Administra17 tion shall include such information in its annual report 

18 to Congress.’’. 

19 SEC. 106. AGENCY AND PROGRAM COLLABORATION. 

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 PHASES.— 

24 ‘‘(1) AGENCY COLLABORATION.—A small busi25 ness concern that received an award from a Federal 


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1 agency under this section shall be eligible to receive 

2 an award for a subsequent phase from another Fed3 eral agency, if the head of each relevant Federal 

4 agency or its component makes a written determina5 tion that the topics of the relevant awards are the 

6 same and both agencies report the awards to the Ad7 ministration for inclusion in the public database 

8 under subsection (k). 

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

10 small business concern which received an award 

11 under this section under the SBIR program or the 

12 STTR program may receive an award under this 

13 section for a subsequent phase in either the SBIR 

14 program or the STTR program and the partici15 pating agency or agencies shall report the awards to 

16 the Administration for inclusion in the public data17 base under subsection (k).’’. 

18 SEC. 107. ELIMINATION OF PHASE II INVITATIONS. 

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

20 638(e)) is amended— 

21 (1) in paragraph (4)(B), by striking ‘‘to fur22 ther’’ and inserting: ‘‘not encumbered by any invita23 tion, pre-screening, pre-selection, or down-selection 

24 process between the first phase and the second 

25 phase that will further’’; and 


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

2 develop proposed ideas to’’ and inserting ‘‘not en3 cumbered by any invitation, pre-screening, pre-selec4 tion, or down-selection process between the first 

5 phase and the second phase that will further develop 

6 proposals which’’. 

7 SEC. 108. MAJORITY-VENTURE INVESTMENTS IN SBIR 

8 FIRMS. 

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

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

11 by adding at the end the following: 

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

13 FIRMS.— 

14 ‘‘(1) AUTHORITY AND DETERMINATION.— 

15 ‘‘(A) IN GENERAL.—Upon a written deter16 mination provided not later than 30 days in ad17 vance to the Administrator and to the Com18 mittee on Small Business and Entrepreneurship 

19 of the Senate and the Committee on Small 

20 Business of the House of Representatives— 

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

22 the National Institutes of Health may 

23 award not more than 18 percent of the 

24 SBIR funds of the National Institutes of 

25 Health allocated in accordance with this 


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1 Act, in the first full fiscal year beginning 

2 after the date of enactment of this sub3 section, and each fiscal year thereafter, to 

4 small business concerns that are owned in 

5 majority part by venture capital companies 

6 and that satisfy the qualification require7 ments under paragraph (2) through com8 petitive, merit-based procedures that are 

9 open to all eligible small business concerns; 

10 and 

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

12 agency participating in the SBIR program 

13 may award not more than 8 percent of the 

14 SBIR funds of the Federal agency allo15 cated in accordance with this Act, in the 

16 first full fiscal year beginning after the 

17 date of enactment of this subsection, and 

18 each fiscal year thereafter, to small busi19 ness concerns that are owned in majority 

20 part by venture capital companies and that 

21 satisfy the qualification requirements 

22 under paragraph (2) through competitive, 

23 merit-based procedures that are open to all 

24 eligible small business concerns. 


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1 ‘‘(B) DETERMINATION.—A written deter2 mination under subparagraph (A) shall dem3 onstrate that the use of the authority under 

4 that subparagraph will induce additional ven5 ture capital funding of small business innova6 tions, substantially contribute to the mission of 

7 the funding Federal agency, demonstrate a 

8 need for public research, and otherwise fulfill 

9 the capital needs of small business concerns for 

10 additional financing for the SBIR project. 

11 ‘‘(2) QUALIFICATION REQUIREMENTS.—The 

12 Administrator shall establish requirements relating 

13 to the affiliation by small business concerns with 

14 venture capital companies, which may not exclude a 

15 United States small business concern from participa16 tion in the program under paragraph (1) on the 

17 basis that the small business concern is owned in 

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

19 United States venture capital company, so long as 

20 no single venture capital company owns more than 

21 49 percent of the small business concern. 

22 ‘‘(3) REGISTRATION.—Any small business con23 cern that is majority owned and controlled by mul24 tiple venture capital companies and qualified for 


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1 participation in the program authorized under para2 graph (1) shall— 

3 ‘‘(A) register with the Administrator on 

4 the date that the small business concern sub5 mits an application for an award under the 

6 SBIR program; and 

7 ‘‘(B) indicate whether the small business 

8 concern is registered under subparagraph (A) in 

9 any SBIR proposal. 

10 ‘‘(4) COMPLIANCE.—A Federal agency de11 scribed in paragraph (1) shall collect data regarding 

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

13 and all other categories of awards under the SBIR 

14 program, and the Administrator shall report on the 

15 data and the compliance of each such Federal agen16 cy with the maximum amounts under paragraph (1) 

17 as part of the annual report by the Administration 

18 under subsection (b)(7). 

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

20 awards more than the amount authorized under 

21 paragraph (1) for a purpose described in paragraph 

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

23 authorized under paragraph (1) shall be transferred 

24 to the funds for general SBIR programs from the 

25 non-SBIR research and development funds of the 


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1 Federal agency within 60 days of the date on which 

2 the Federal agency awarded more than the amount 

3 authorized under paragraph (1) for a purpose de4 scribed in paragraph (1).’’. 

5 (b) TECHNICAL AND CONFORMING AMENDMENT.— 

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

7 amended by adding at the end the following: 

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

9 term ‘venture capital company’ means an entity described 

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

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

12 (c) ASSISTANCE FOR DETERMINING AFFILIATES.— 

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

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

15 Administration (with a direct link displayed on the home16 page of the website of the Administration or the SBIR 

17 website of the Administration)— 

18 (1) a clear explanation of the SBIR affiliation 

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

20 Regulations; and 

21 (2) contact information for officers or employ22 ees of the Administration who— 

23 (A) upon request, shall review an issue re24 lating to the rules described in paragraph (1); 

25 and 


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1 (B) shall respond to a request under sub2 paragraph (A) not later than 20 business days 

3 after the date on which the request is received. 

4 SEC. 109. SBIR AND STTR SPECIAL ACQUISITION PREF5 ERENCE. 

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

7 638(r)) is amended by adding at the end the following: 

8 ‘‘(4) PHASE III AWARDS.—Congress intends 

9 that, to the greatest extent practicable, Federal 

10 agencies and Federal prime contractors shall issue 

11 Phase III awards, including sole source awards, to 

12 the SBIR and STTR award recipients that devel13 oped the technology.’’. 

14 SEC. 110. COLLABORATING WITH FEDERAL LABORATORIES 

15 AND RESEARCH AND DEVELOPMENT CEN16 TERS. 

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 ‘‘(dd) COLLABORATING WITH FEDERAL LABORA21 TORIES AND RESEARCH AND DEVELOPMENT CENTERS.— 

22 ‘‘(1) AUTHORIZATION.—Subject to the limita23 tions under this section, the head of each partici24 pating Federal agency may issue SBIR and STTR 

25 awards to any eligible small business concern that— 


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

2 with a Federal laboratory or federally funded 

3 research and development center for portions of 

4 the activities to be performed under that award; 

5 or 

6 ‘‘(B) has entered into a cooperative re7 search and development agreement (as defined 

8 in section 12(d) of the Stevenson-Wydler Tech9 nology Innovation Act of 1980 (15 U.S.C. 

10 3710a(d))) with a Federal laboratory. 

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

12 ‘‘(A) condition a SBIR or STTR award 

13 upon entering into agreement with any Federal 

14 laboratory or any federally funded laboratory or 

15 research and development center for any por16 tion of the activities to be performed under that 

17 award; 

18 ‘‘(B) approve an agreement between a 

19 small business concern receiving a SBIR or 

20 STTR award and a Federal laboratory or feder21 ally funded laboratory or research and develop22 ment center, if the small business concern per23 forms a lesser portion of the activities to be 

24 performed under that award than required by 


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1 this section and by the SBIR and STTR Policy 

2 Directives; or 

3 ‘‘(C) approve an agreement that violates 

4 any provision, including any data rights protec5 tions provision, of this section or the SBIR and 

6 the STTR Policy Directives. 

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

8 days after the date of enactment of this subsection, 

9 the Administrator shall modify the SBIR Policy Di10 rective and the STTR Policy Directive issued under 

11 this section to ensure that small business concerns— 

12 ‘‘(A) have the flexibility to use the re13 sources of the Federal laboratories and feder14 ally funded research and development centers; 

15 and 

16 ‘‘(B) are not mandated to enter into agree17 ment with any Federal laboratory or any feder18 ally funded laboratory or research and develop19 ment center as a condition of an award.’’. 

20 SEC. 111. NOTICE REQUIREMENT. 

21 The head of any Federal agency involved in a case 

22 or controversy before any Federal judicial or administra23 tive tribunal concerning the SBIR program or the STTR 

24 program shall provide timely notice, as determined by the 


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1 Administrator, of the case or controversy to the Adminis2 trator. 

3 TITLE II—OUTREACH AND COM4 MERCIALIZATION INITIA5 TIVES 

6 SEC. 201. RURAL AND STATE OUTREACH. 

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

8 (15 U.S.C. 638) is amended by inserting after subsection 

9 (r) the following: 

10 ‘‘(s) OUTREACH.— 

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

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

13 ‘‘(A) if the total value of contracts award14 ed to the State under this section during the 

15 most recent fiscal year for which data is avail16 able was less than $5,000,000; and 

17 ‘‘(B) that certifies to the Administration 

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

19 upon receipt of assistance under this sub20 section, provide matching funds from non-Fed21 eral sources in an amount that is not less than 

22 50 percent of the amount provided under this 

23 subsection. 

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

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1 cal years 2000 through 2014, the Administrator 

2 may expend with eligible States not more than 

3 $5,000,000 in each such fiscal year in order to in4 crease the participation of small business concerns 

5 located in those States in the programs under this 

6 section. 

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

8 assistance provided to an eligible State under this 

9 subsection in any fiscal year— 

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

11 percent of the total amount of matching funds 

12 from non-Federal sources provided by the 

13 State; and 

14 ‘‘(B) shall not exceed $100,000. 

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

16 to an eligible State under this subsection shall be 

17 used by the State, in consultation with State and 

18 local departments and agencies, for programs and 

19 activities to increase the participation of small busi20 ness concerns located in the State in the programs 

21 under this section, including— 

22 ‘‘(A) the establishment of quantifiable per23 formance goals, including goals relating to 


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1 ‘‘(i) the number of program awards 

2 under this section made to small business 

3 concerns in the State; and 

4 ‘‘(ii) the total amount of Federal re5 search and development contracts awarded 

6 to small business concerns in the State; 

7 ‘‘(B) the provision of competition outreach 

8 support to small business concerns in the State 

9 that are involved in research and development; 

10 ‘‘(C) the development and dissemination of 

11 educational and promotional information relat12 ing to the programs under this section to small 

13 business concerns in the State; and 

14 ‘‘(D) the establishment of initiatives to 

15 reach out to women and minorities with the 

16 goal of increasing their involvement in the 

17 SBIR and STTR programs.’’ 

18 (b) FEDERAL AND STATE PROGRAM EXTENSION.— 

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

20 amended— 

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

22 through 2005’’ each place it appears and inserting 

23 ‘‘2009 through 2014’’; and 

24 (2) in subsection (i), by striking ‘‘2005’’ and in25 serting ‘‘2014’’. 


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

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

3 (1) by redesignating subparagraphs (C) and 

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

5 (2) by inserting after subparagraph (B) the fol6 lowing: 

7 ‘‘(C) RURAL AREAS.— 

8 ‘‘(i) IN GENERAL.—Except as pro9 vided in clause (ii), the non-Federal share 

10 of the cost of the activity carried out using 

11 an award or under a cooperative agree12 ment under this section shall be 50 cents 

13 for each Federal dollar that will be directly 

14 allocated by a recipient described in para15 graph (A) to serve small business concerns 

16 located in a rural area. 

17 ‘‘(ii) ENHANCED RURAL AWARDS.— 

18 For a recipient located in a rural area that 

19 is located in a State described in subpara20 graph (A)(i), the non-Federal share of the 

21 cost of the activity carried out using an 

22 award or under a cooperative agreement 

23 under this section shall be 35 cents for 

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1 graph (A) to serve small business concerns 

2 located in the rural area. 

3 ‘‘(iii) DEFINITION OF RURAL AREA.— 

4 In this subparagraph, the term ‘rural area’ 

5 has the meaning given that term in section 

6 1393(a)(2)) of the Internal Revenue Code 

7 of 1986.’’. 

8 SEC. 202. SBIR–STEM WORKFORCE DEVELOPMENT GRANT 

9 PILOT PROGRAM. 

10 (a) PILOT PROGRAM ESTABLISHED.—From amounts 

11 made available to carry out this section, the Administrator 

12 shall establish a SBIR–STEM Workforce Development 

13 Grant Pilot Program to encourage the business commu14 nity to provide workforce development opportunities for 

15 college students, in the fields of science, technology, engi16 neering, and math (in this section referred to as ‘‘STEM 

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

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

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

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

21 grant under subsection (a) that provides an internship 

22 program for STEM college students. 

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

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


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

2 not more than $10,000 per year. 

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

4 funding under this section, the Administrator shall submit 

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

6 Workforce Development Grant Pilot Program. 

7 (e) AUTHORIZATION OF APPROPRIATIONS.—There 

8 are authorized to be appropriated to carry out this sec9 tion— 

10 (1) $1,000,000 for fiscal year 2010; 

11 (2) $1,000,000 for fiscal year 2011; 

12 (3) $1,000,000 for fiscal year 2012; 

13 (4) $1,000,000 for fiscal year 2013; and 

14 (5) $1,000,000 for fiscal year 2014. 

15 SEC. 203. TECHNICAL ASSISTANCE FOR AWARDEES. 

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

17 638(q)(3)) is amended— 

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

19 and inserting ‘‘$5,000’’; 

20 (2) in subparagraph (B)— 

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

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

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

24 award’’; 


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

2 ‘‘$5,000’’; and 

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

4 inserting a semicolon; and 

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

6 ‘‘(C) FLEXIBILITY.—In carrying out sub7 paragraphs (A) and (B), each Federal agency 

8 shall provide the allowable amounts to a recipi9 ent that meets the eligibility requirements 

10 under the applicable subparagraph, if the re11 cipient requests to seek technical assistance 

12 from an individual or entity other than the ven13 dor selected under paragraph (2) by the Fed14 eral agency. 

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

16 not— 

17 ‘‘(i) use the amounts authorized under 

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

19 selected under paragraph (2) provides the 

20 technical assistance to the recipient; or 

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

22 under paragraph (2) under which the 

23 amount provided for technical assistance is 

24 based on total number of Phase I or Phase 

25 II awards.’’. 


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1 SEC. 204. COMMERCIALIZATION PILOT PROGRAM AT DE2 PARTMENT OF DEFENSE. 

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

4 638(y)) is amended— 

5 (1) in paragraph (1)— 

6 (A) by inserting ‘‘or Small Business Tech7 nology Transfer Program’’ after ‘‘Small Busi8 ness Innovation Research Program’’; and 

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

10 ‘‘The authority to create and administer a Com11 mercialization Pilot Program under this sub12 section may not be construed to eliminate or re13 place any other SBIR program or STTR pro14 gram that enhances the insertion or transition 

15 of SBIR or STTR technologies, including any 

16 such program in effect on the date of enact17 ment of the National Defense Authorization Act 

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

19 119 Stat. 3136).’’; 

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

21 Business Technology Transfer Program’’ after 

22 ‘‘Small Business Innovation Research Program’’; 

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

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

25 (4) by inserting after paragraph (4) the fol26 lowing: 


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1 ‘‘(5) INSERTION INCENTIVES.—For any con2 tract with a value of not less than $100,000,000, the 

3 Secretary of Defense is authorized to— 

4 ‘‘(A) establish goals for transitioning 

5 Phase III technologies in subcontracting plans; 

6 and 

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

8 contract to report the number and dollar 

9 amount of contracts entered into by that prime 

10 contractor for Phase III SBIR or STTR 

11 projects. 

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

13 INSERTION.—The Secretary of Defense shall— 

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

15 Phase II SBIR contracts and the number of 

16 Phase II STTR contracts awarded by that Sec17 retary that lead to technology transition into 

18 programs of record or fielded systems; 

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

20 enactment of the SBIR/STTR Reauthorization 

21 Act of 2008, or create new incentives, to en22 courage agency program managers and prime 

23 contractors to meet the goal under subpara24 graph (A); and 


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1 ‘‘(C) include in the annual report to Con2 gress the percentage of contracts described in 

3 subparagraph (A) awarded by that Secretary, 

4 which shall include information on the ongoing 

5 status of projects funded through the Commer6 cialization Pilot Program and efforts to transi7 tion these technologies into programs of record 

8 or fielded systems.’’; and 

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

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

11 2014’’. 

12 SEC. 205. COMMERCIALIZATION PILOT PROGRAM FOR CI13 VILIAN AGENCIES. 

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) PILOT PROGRAM.— 

18 ‘‘(1) AUTHORIZATION.—Except for the Depart19 ment of Defense, the head of each participating Fed20 eral agency may set aside not more than 10 percent 

21 of the SBIR and STTR funds of such agency for 

22 further technology development, testing, and evalua23 tion of SBIR and STTR Phase II technologies (in 

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

25 ‘‘(2) REQUIREMENTS.— 


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

2 not establish a pilot program unless such agen3 cy makes a written application to the Adminis4 trator, not less than 90 days prior to the begin5 ning of the fiscal year in which such pilot pro6 gram is to be established, based on a compelling 

7 reason that additional investment in SBIR or 

8 STTR technologies is required due to unusually 

9 high regulatory, systems integration, or other 

10 costs relating to development or manufacturing 

11 of identifiable, highly promising small business 

12 technologies or a class of such technologies ex13 pected to substantially advance the agency’s 

14 mission. 

15 ‘‘(B) DETERMINATION.—The Adminis16 trator shall— 

17 ‘‘(i) make a determination regarding 

18 an application submitted under subpara19 graph (A) not later than 30 days before 

20 the beginning of the fiscal year for which 

21 such application is submitted; 

22 ‘‘(ii) publish such decision in the Fed23 eral Register; and 

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

25 and any related materials available to the 


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1 Committee on Small Business and Entre2 preneurship of the Senate and the Com3 mittee on Small Business of the House of 

4 Representatives. 

5 ‘‘(C) MAXIMUM AMOUNT.—No award 

6 under a pilot program may be made in excess 

7 of 2 times the dollar amounts generally estab8 lished for Phase II awards under this section. 

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

10 under a pilot program unless new private, Fed11 eral non-SBIR, or Federal non-STTR funding 

12 which at least matches the award from the Fed13 eral agency is dedicated towards SBIR or 

14 STTR Phase II technology. 

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

16 program may be made to any applicant that is 

17 eligible to receive a Phase III award related to 

18 such SBIR or STTR Phase II technology. 

19 ‘‘(F) REGISTRATION.—Applicants receiving 

20 awards under a pilot program shall register 

21 with the Administrator in a publicly available 

22 registry. 

23 ‘‘(G) TERMINATION.—The authority to es24 tablish a pilot program under this section ex25 pires at the end of fiscal year 2014.’’. 


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1 SEC. 206. NANOTECHNOLOGY INITIATIVE. 

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

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

4 by adding at the end the following: 

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

6 agency participating in the SBIR or STTR program shall 

7 encourage the submission of applications for support of 

8 nanotechnology related projects to such program.’’. 

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

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

11 of this section, is repealed. 

12 SEC. 207. ACCELERATING CURES. 

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

14 amended— 

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

16 and 

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

18 ‘‘SEC. 44. SMALL BUSINESS INNOVATION RESEARCH PRO19 GRAM. 

20 ‘‘(a) NIH CURES PILOT.— 

21 ‘‘(1) ESTABLISHMENT.—An independent advi22 sory board shall be established at the National Acad23 emy of Sciences to conduct periodic evaluations of 

24 the SBIR program (as that term is defined in sec25 tion 9) of all the National Institutes of Health (re26 ferred to in this section as the ‘NIH’) institutes and 


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1 centers for the purpose of improving the manage2 ment of the SBIR program through data-driven as3 sessment. 

4 ‘‘(2) MEMBERSHIP.— 

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

6 shall consist of— 

7 ‘‘(i) the Director of the NIH, the Di8 rector of the SBIR program, senior NIH 

9 agency managers, industry experts, and 

10 other program stakeholders; and 

11 ‘‘(ii) awardees under the SBIR pro12 gram of the NIH. 

13 ‘‘(B) EQUAL REPRESENTATION.—The 

14 number of members of the advisory board de15 scribed in clause (i) of subparagraph (A) shall 

16 be equal to the number of members of the advi17 sory board described in clause (ii) of subpara18 graph (A). 

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

20 the evidence-base guiding SBIR program decisions and 

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

22 shall address the gaps and deficiencies in the data collec23 tion concerns identified in the 2007 National Academies 

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

25 Business Innovation Research Program at the NIH’. 


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1 ‘‘(c) PILOT PROGRAM.— 

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

3 program of the NIH may initiate a pilot program, 

4 under a formal mechanism for designing, imple5 menting, and evaluating pilot programs, to spur in6 novation and to test new strategies that may en7 hance the development of cures and therapies. 

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

9 SBIR program of the NIH may consider conducting 

10 a pilot program to include individuals with success11 ful SBIR program experience in study sections, hir12 ing individuals with small business development ex13 perience for staff positions, separating the commer14 cial and scientific review processes, and examining 

15 the impact of the trend toward larger awards on the 

16 overall program. 

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

18 NIH shall submit an annual report to Congress and the 

19 independent advisory board described in subsection (a) on 

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

21 section. 

22 ‘‘(e) SBIR GRANTS AND CONTRACTS.— 

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

24 contracts under the SBIR program of the NIH each 

25 SBIR program manager shall place an emphasis on 


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1 applications that identify from the onset products 

2 and services that may enhance the development of 

3 cures and therapies. 

4 ‘‘(2) EXAMINATION OF COMMERCIALIZATION

5 AND OTHER METRICS.—The independent advisory 

6 board described in subsection (a) shall evaluate the 

7 implementation of the requirement under paragraph 

8 (1) by examining increased commercialization and 

9 other metrics, to be determined and collected by the 

10 SBIR program of the NIH. 

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

12 practicable, the Director of the SBIR program of 

13 the NIH shall reduce the time period between Phase 

14 I and Phase II funding of grants and contracts 

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

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

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

18 Small Business Act (15 U.S.C. 638)) of the NIH for re19 search or research and development may be used for the 

20 pilot programs under subsection (c) and to carry out sub21 section (e). 

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

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

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


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1 TITLE III—OVERSIGHT AND 

2 EVALUATION 

3 SEC. 301. STREAMLINING ANNUAL EVALUATION REQUIRE4 MENTS. 

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

6 638(b)), as amended by section 103 of this Act, is amend7 ed— 

8 (1) in paragraph (7)— 

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

11 ‘‘STTR programs, including— 

12 ‘‘(A) the data’’; 

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

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

15 through ‘‘under each of the SBIR and STTR 

16 programs, and a description’’ and inserting the 

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

18 ‘‘(B) the number of proposals received 

19 from, and the number and total amount of 

20 awards to, HUBZone small business concerns 

21 and firms with venture capital investment (in22 cluding those majority owned and controlled by 

23 multiple venture capital firms) under each of 

24 the SBIR and STTR programs; 


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

2 each Federal agency is increasing outreach and 

3 awards to firms owned and controlled by women 

4 and minorities under each of the SBIR and 

5 STTR programs; 

6 ‘‘(D) general information about the imple7 mentation and compliance with the allocation of 

8 funds for firms majority owned and controlled 

9 by multiple venture capital firms under each of 

10 the SBIR and STTR programs; 

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

12 Phase III awards and notices of noncompliance 

13 with the SBIR and the STTR Policy Directives 

14 filed by the Administrator with Federal agen15 cies; and 

16 ‘‘(F) a description’’; and 

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

19 ‘‘(8) to coordinate the implementation of elec20 tronic databases at each of the participating agen21 cies, including the technical ability of the partici22 pating agencies to electronically share data;’’. 

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

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

25 638(g)) is amended— 


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1 (1) by striking paragraph (10); 

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

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

4 (3) by inserting after paragraph (7) the fol5 lowing: 

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

7 in accordance with the simplified reporting require8 ments under subsection (v), such information from 

9 awardees as is necessary to assess the SBIR pro10 gram, including information necessary to maintain 

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

12 ‘‘(A) whether an awardee— 

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

14 owned and controlled by multiple venture 

15 capital firms, and, if so— 

16 ‘‘(I) the amount of venture cap17 ital that the awardee has received as 

18 of the date of the award; and 

19 ‘‘(II) the amount of additional 

20 capital that the awardee has invested 

21 in the SBIR technology, which shall 

22 be collected on an annual basis; 

23 ‘‘(ii) has an investor who— 

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

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1 ful permanent resident of the United 

2 States, and if so, the name of any 

3 such individual; or 

4 ‘‘(II) is a person that is not an 

5 individual and is not organized under 

6 the laws of a State or the United 

7 States, and if so the name of any such 

8 person; 

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

10 woman as a principal investigator; 

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

12 minority as a principal investigator; 

13 ‘‘(v) received assistance under the 

14 FAST program under section 34 or the 

15 outreach program under subsection (s); or 

16 ‘‘(vi) is university faculty or a univer17 sity student; and 

18 ‘‘(B) a justification statement from the 

19 agency, if an awardee receives an award in an 

20 amount that is more than the award guidelines 

21 under this section;’’; and 

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

23 adding ‘‘and’’ at the end. 


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

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

3 638(o)) is amended— 

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

5 following: 

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

7 in accordance with the simplified reporting require8 ments under subsection (v), such information from 

9 applicants and awardees as is necessary to assess 

10 the STTR program outputs and outcomes, including 

11 information necessary to maintain the database de12 scribed in subsection (k), including— 

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

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

15 owned and controlled by multiple venture 

16 capital firms, and, if so— 

17 ‘‘(I) the amount of venture cap18 ital that the applicant or awardee has 

19 received as of the date of the applica20 tion or award, as applicable; and 

21 ‘‘(II) the amount of additional 

22 capital that the applicant or awardee 

23 has invested in the SBIR technology, 

24 which shall be collected on an annual 

25 basis; 

26 ‘‘(ii) has an investor who— 


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

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

4 States, and if so, the name of any 

5 such individual; or 

6 ‘‘(II) is a person that is not an 

7 individual and is not organized under 

8 the laws of a State or the United 

9 States, and if so the name of any such 

10 person; 

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

12 woman as a principal investigator; 

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

14 minority as a principal investigator; 

15 ‘‘(v) received assistance under the 

16 FAST program under section 34 or the 

17 outreach program under subsection (s); or 

18 ‘‘(vi) is university faculty or a univer19 sity student; and 

20 ‘‘(B) a justification statement from the 

21 agency, if an awardee receives an award in an 

22 amount that is more than the award guidelines 

23 under this section;’’; 

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

25 end; 


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

2 (4) by redesignating paragraph (16) as para3 graph (15). 

4 SEC. 304. PUBLIC DATABASE. 

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

6 638(k)(1)) is amended— 

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

8 the end; 

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

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

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

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

13 has received a Phase I or Phase II SBIR or 

14 STTR award from a Federal agency, whether 

15 the small business concern— 

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

17 whether the small business concern is reg18 istered as majority owned and controlled 

19 by multiple venture capital companies as 

20 required under subsection (cc)(3); 

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

22 woman as a principal investigator; 

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

24 minority as a principal investigator; 


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1 ‘‘(iv) received assistance under the 

2 FAST program under section 34 or the 

3 outreach program under subsection (s); or 

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

5 a university student.’’. 

6 SEC. 305. GOVERNMENT DATABASE. 

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

8 638(k)(2)) is amended— 

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

10 and (E) as subparagraphs (D), (E), and (F), respec11 tively; 

12 (2) by inserting after subparagraph (B) the fol13 lowing: 

14 ‘‘(C) includes, for each awardee— 

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

16 identifying number assigned by the Admin17 istration; 

18 ‘‘(ii) whether the awardee has venture 

19 capital, and, if so— 

20 ‘‘(I) the amount of venture cap21 ital as of the date of the award; 

22 ‘‘(II) the percentage of ownership 

23 of the awardee held by a venture cap24 ital firm, including whether the 

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1 trolled by multiple venture capital 

2 firms; and 

3 ‘‘(III) the amount of additional 

4 capital that the awardee has invested 

5 in the SBIR technology, which shall 

6 be collected on an annual basis; 

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

8 affiliates of the awardee; 

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

10 awardee; 

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

12 affiliates of the awardee; and 

13 ‘‘(vi) the names and percentage of 

14 ownership of the awardee held by— 

15 ‘‘(I) an individual who is not a 

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

18 States; or 

19 ‘‘(II) a person that is not an in20 dividual and is not organized under 

21 the laws of a State or the United 

22 States;’’; and 

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

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

25 end; and 


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

2 ‘‘(iv) whether the applicant was ma3 jority owned and controlled by multiple 

4 venture capital firms; and 

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

6 applicant;’’. 

7 SEC. 306. ACCURACY IN FUNDING BASE CALCULATIONS. 

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

9 date of enactment of this Act, and every 3 years there10 after, the Comptroller General of the United States 

11 shall— 

12 (1) conduct a fiscal and management audit of 

13 the SBIR program and the STTR program for the 

14 applicable period to determine whether Federal 

15 agencies are complying with the allocation require16 ments of this title and the amendments made by this 

17 title; 

18 (2) assess the extent of compliance with the re19 quirements of subparagraphs (A) and (B) of section 

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

21 638(i)(2)) by participating agencies and the Admin22 istration; 

23 (3) assess whether it would be more consistent 

24 and effective to base the amount of the allocations 

25 under the SBIR program and the STTR program on 


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1 a percentage of the research and development budg2 et of a Federal agency, rather than the extramural 

3 budget of the Federal agency; 

4 (4) determine the portion of the extramural re5 search or research and development budget of a 

6 Federal agency that each Federal agency is spending 

7 for administrative purposes relating to the SBIR 

8 program or STTR program, and for what specific 

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

10 of such budget the Federal agency is spending for 

11 salaries and expenses, travel to visit applicants, out12 reach events, marketing, and technical assistance; 

13 and 

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

15 Business and Entrepreneurship of the Senate and 

16 the Committee on Small Business of the House of 

17 Representatives regarding the audit conducted under 

18 paragraph (1), the assessments required under para19 graphs (2) and (3), and the determination made 

20 under paragraph (4). 

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

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

23 (1) for the first report submitted under this 

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

25 and ending on September 30 of the last full fiscal 


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1 year before the date of enactment of this Act for 

2 which information is available; and 

3 (2) for the second and each subsequent report 

4 submitted under this section, the period— 

5 (A) beginning on October 1 of the first fis6 cal year after the end of the most recent full 

7 fiscal year relating to which a report under this 

8 section was submitted; and 

9 (B) ending on September 30 of the last 

10 full fiscal year before the date of the report. 

11 SEC. 307. CONTINUED EVALUATION BY THE NATIONAL 

12 ACADEMY OF SCIENCES. 

13 Section 108 of the Small Business Reauthorization 

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

15 is amended by adding at the end the following: 

16 ‘‘(e) EXTENSIONS AND ENHANCEMENTS OF AUTHOR17 ITY.— 

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

19 after the date of enactment of the SBIR/STTR Re20 authorization Act of 2008, the head of each agency 

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

22 Small Business Administration, shall cooperatively 

23 enter into an agreement with the National Academy 

24 of Sciences for the National Research Council to 

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


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1 make recommendations described in subsection 

2 (a)(2) not later than 4 years after the date of enact3 ment of the SBIR/STTR Reauthorization Act of 

4 2008, and every 4 years thereafter. 

5 ‘‘(2) REPORTING.—An agreement under para6 graph (1) shall require that not later than 4 years 

7 after the date of enactment of the SBIR/STTR Re8 authorization Act of 2008, and every 4 years there9 after, the National Research Council shall submit to 

10 the head of the agency entering into the agreement, 

11 the Committee on Small Business and Entrepre12 neurship of the Senate, and the Committee on Small 

13 Business of the House of Representatives a report 

14 regarding the study conducted under paragraph (1) 

15 and containing the recommendations described in 

16 paragraph (1).’’. 

17 SEC. 308. TECHNOLOGY INSERTION REPORTING REQUIRE18 MENTS. 

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

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

21 the following: 

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

23 STTR report to Congress by the Administration under 

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

25 by the Federal agency— 


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

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

3 making the Phase III award; 

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

5 receiving the Phase III award; 

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

7 and 

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

9 Federal agency, making the Phase III award.’’. 

10 SEC. 309. INTELLECTUAL PROPERTY PROTECTIONS. 

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

12 United States shall conduct a study of the SBIR program 

13 to assess whether— 

14 (1) Federal agencies are adhering to the data 

15 rights protections for SBIR awardees and the tech16 nologies of SBIR awardees; 

17 (2) the laws and policy directives intended to 

18 clarify the scope of data rights, including in proto19 types and mentor-prote ́ge ́ relationships and agree20 ments with Federal laboratories, are sufficient to 

21 protect SBIR awardees; and 

22 (3) there is an effective grievance tracking proc23 ess for SBIR awardees who have grievances against 

24 a Federal agency regarding data rights and a proc25 ess for resolving those grievances. 


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49 

•S 3362 RS

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

2 date of enactment of this Act, the Comptroller General 

3 shall submit to the Committee on Small Business and En4 trepreneurship of the Senate and the Committee on Small 

5 Business of the House of Representatives a report regard6 ing the study conducted under subsection (a). 

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 The Administration shall publish the amended SBIR Pol18 icy Directive and the amended STTR Policy Directive in 

19 the Federal Register. 


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Calendar No. 943 

110TH CONGRESS 

2D SESSION S. 3362 

[Report No. 110

–447] 

A BILL 

To reauthorize and improve the SBIR and STTR 

programs, and for other purposes. 

AUGUST 22 (legislative day, AUGUST 1), 2008 

Reported without amendment 


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