In the Senate of the United States, 

July 13, 2009. 

Resolved, That the bill from the House of Representatives (H.R. 2965) entitled ‘‘An Act to amend the Small Business Act with respect to the Small Business Innovation Research Program and the Small Business Technology Transfer 

Program, and for other purposes.’’, do pass with the following 

AMENDMENT: 

Strike out all after the enacting clause and insert: 

1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘SBIR/STTR Reauthor3 ization Act of 2009’’. 

4 SEC. 2. TABLE OF CONTENTS. 

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

Sec. 1. Short title. 

Sec. 2. Table of contents. 

Sec. 3. Definitions. 

TITLE I—REAUTHORIZATION OF THE SBIR AND STTR PROGRAMS 

Sec. 101. Extension of termination dates. 

Sec. 102. Status of the Office of Technology. 

Sec. 103. SBIR allocation increase. 

Sec. 104. STTR allocation increase. 
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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 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. 

Sec. 402. Priorities for certain research initiatives. 

Sec. 403. Report on SBIR and STTR program goals. 

Sec. 404. Competitive selection procedures for SBIR and STTR programs. 

1 SEC. 3. DEFINITIONS. 

2 In this Act— 

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

5 the Administrator thereof, respectively; 

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

7 agency’’, ‘‘Small Business Innovation Research Pro8 gram’’, ‘‘SBIR’’, ‘‘Small Business Technology Trans9 fer Program’’, and ‘‘STTR’’ have the meanings given 
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1 such terms in section 9 of the Small Business Act (15 

2 U.S.C. 638); and 

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

4 same meaning as under section 3 of the Small Busi5 ness Act (15 U.S.C. 632). 

6 TITLE I—REAUTHORIZATION OF 

7 THE SBIR AND STTR PROGRAMS 

8 SEC. 101. EXTENSION OF TERMINATION DATES. 

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

10 (15 U.S.C. 638(m)) is amended by striking ‘‘2008’’ and in11 serting ‘‘2017’’. 

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

13 Act (15 U.S.C. 638(n)(1)(A)) is amended by striking 

14 ‘‘2009’’ and inserting ‘‘2017’’. 

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

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

17 638(b)) is amended— 

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

19 end; 

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

21 the end and inserting ‘‘; and’’; 

22 (3) by redesignating paragraph (8) as para23 graph (9); and 

24 (4) by adding at the end the following: 
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1 ‘‘(10) to maintain an Office of Technology to 

2 carry out the responsibilities of the Administration 

3 under this section, which shall be— 

4 ‘‘(A) headed by the Assistant Administrator 

5 for Technology, who shall report directly to the 

6 Administrator; and 

7 ‘‘(B) independent from the Office of Govern8 ment Contracting of the Administration and suf9 ficiently staffed and funded to comply with the 

10 oversight, reporting, and public database respon11 sibilities assigned to the Office of Technology by 

12 the Administrator.’’. 

13 SEC. 103. SBIR ALLOCATION INCREASE. 

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

15 638(f)) is amended— 

16 (1) in paragraph (1)— 

17 (A) in the matter preceding subparagraph 

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

19 as provided in paragraph (2)(C), each’’; 

20 (B) in subparagraph (B), by striking ‘‘and’’ 

21 at the end; and 

22 (C) by striking subparagraph (C) and in23 serting the following: 

24 ‘‘(C) not less than 2.5 percent of such budget 

25 in each of fiscal years 2009 and 2010; 
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1 ‘‘(D) not less than 2.6 percent of such budg2 et in fiscal year 2011; 

3 ‘‘(E) not less than 2.7 percent of such budg4 et in fiscal year 2012; 

5 ‘‘(F) not less than 2.8 percent of such budg6 et in fiscal year 2013; 

7 ‘‘(G) not less than 2.9 percent of such budg8 et in fiscal year 2014; 

9 ‘‘(H) not less than 3.0 percent of such budg10 et in fiscal year 2015; 

11 ‘‘(I) not less than 3.1 percent of such budget 

12 in fiscal year 2016; 

13 ‘‘(J) not less than 3.2 percent of such budget 

14 in fiscal year 2017; 

15 ‘‘(K) not less than 3.3 percent of such budg16 et in fiscal year 2018; 

17 ‘‘(L) not less than 3.4 percent of such budg18 et in fiscal year 2019; and 

19 ‘‘(M) not less than 3.5 percent of such budg20 et in fiscal year 2020 and each fiscal year there21 after,’’; and 

22 (2) in paragraph (2)— 

23 (A) by redesignating subparagraphs (A) 

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

25 adjusting the margins accordingly; 
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1 (B) by striking ‘‘A Federal agency’’ and in2 serting the following: 

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

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

5 ‘‘(B) DEPARTMENT OF DEFENSE AND DE6 PARTMENT OF ENERGY.—For the Department of 

7 Defense and the Department of Energy, to the 

8 greatest extent practicable, the percentage of the 

9 extramural budget in excess of 2.5 percent re10 quired to be expended with small business con11 cerns under subparagraphs (D) through (M) of 

12 paragraph (1)— 

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

14 or Phase II awards; and 

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

16 further the readiness levels of technologies 

17 developed under Phase II awards, including 

18 conducting testing and evaluation to pro19 mote the transition of such technologies into 

20 commercial or defense products, or systems 

21 furthering the mission needs of the Depart22 ment of Defense or the Department of En23 ergy, as the case may be.’’. 
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1 SEC. 104. STTR ALLOCATION INCREASE. 

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

3 U.S.C. 638(n)(1)(B)) is amended— 

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

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

6 inserting ‘‘through fiscal year 2010;’’; and 

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

8 ‘‘(iii) 0.4 percent for fiscal years 2011 

9 and 2012; 

10 ‘‘(iv) 0.5 percent for fiscal years 2013 

11 and 2014; and 

12 ‘‘(v) 0.6 percent for fiscal year 2015 

13 and each fiscal year thereafter.’’. 

14 SEC. 105. SBIR AND STTR AWARD LEVELS. 

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

16 Small Business Act (15 U.S.C. 638(j)(2)(D)) is amended— 

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

18 ‘‘$150,000’’; and 

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

20 ‘‘$1,000,000’’. 

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

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

23 amended— 

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

25 ‘‘$150,000’’; and 
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1 (2) by striking ‘‘$750,000’’ and inserting 

2 ‘‘$1,000,000’’. 

3 (c) TRIENNIAL ADJUSTMENTS.—Section 9 of the Small 

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

5 (1) in subsection (j)(2)(D)— 

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

7 years’’; and 

8 (B) by striking ‘‘and programmatic consid9 erations’’; and 

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

11 ‘‘greater or lesser amounts to be awarded at the dis12 cretion of the awarding agency,’’ and inserting ‘‘an 

13 adjustment for inflation of such amounts once every 

14 3 years,’’. 

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

16 the Small Business Act (15 U.S.C. 638) is amended by add17 ing at the end the following: 

18 ‘‘(aa) LIMITATION ON CERTAIN AWARDS.— 

19 ‘‘(1) LIMITATION.—No Federal agency may issue 

20 an award under the SBIR program or the STTR pro21 gram if the size of the award exceeds the award guide22 lines established under this section by more than 50 

23 percent. 

24 ‘‘(2) MAINTENANCE OF INFORMATION.—Partici25 pating agencies shall maintain information on 
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1 awards exceeding the guidelines established under this 

2 section, including— 

3 ‘‘(A) the amount of each award; 

4 ‘‘(B) a justification for exceeding the award 

5 amount; 

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

7 award recipient; and 

8 ‘‘(D) whether a recipient has received any 

9 venture capital investment and, if so, whether 

10 the recipient is majority-owned and controlled 

11 by multiple venture capital companies. 

12 ‘‘(3) REPORTS.—The Administrator shall in13 clude the information described in paragraph (2) in 

14 the annual report of the Administrator to Congress. 

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

16 subsection shall be construed to prevent a Federal 

17 agency from supplementing an award under the 

18 SBIR program or the STTR program using funds of 

19 the Federal agency that are not part of the SBIR pro20 gram or the STTR program of the Federal agency.’’. 

21 SEC. 106. AGENCY AND PROGRAM COLLABORATION. 

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

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

24 the following: 

25 ‘‘(bb) SUBSEQUENT PHASES.— 
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1 ‘‘(1) AGENCY COLLABORATION.—A small business 

2 concern that received an award from a Federal agen3 cy under this section shall be eligible to receive an 

4 award for a subsequent phase from another Federal 

5 agency, if the head of each relevant Federal agency or 

6 the relevant component of the Federal agency makes 

7 a written determination that the topics of the relevant 

8 awards are the same and both agencies report the 

9 awards to the Administrator for inclusion in the pub10 lic database under subsection (k). 

11 ‘‘(2) SBIR AND STTR COLLABORATION.—A small 

12 business concern which received an award under this 

13 section under the SBIR program or the STTR pro14 gram may receive an award under this section for a 

15 subsequent phase in either the SBIR program or the 

16 STTR program and the participating agency or 

17 agencies shall report the awards to the Administrator 

18 for inclusion in the public database under subsection 

19 (k).’’. 

20 SEC. 107. ELIMINATION OF PHASE II INVITATIONS. 

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

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

23 (1) in paragraph (4)(B), by striking ‘‘to further’’ 

24 and inserting: ‘‘which shall not include any invita25 tion, pre-screening, pre-selection, or down-selection 
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1 process for eligibility for the second phase, that will 

2 further’’; and 

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

4 develop proposed ideas to’’ and inserting ‘‘which shall 

5 not include any invitation, pre-screening, pre-selec6 tion, or down-selection process for eligibility for the 

7 second phase, that will further develop proposals 

8 that’’. 

9 (b) TECHNICAL AND CONFORMING AMENDMENTS.— 

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

11 (1) in section 9— 

12 (A) in subsection (e)— 

13 (i) in paragraph (8), by striking 

14 ‘‘and’’ at the end; 

15 (ii) in paragraph (9)— 

16 (I) by striking ‘‘the second or the 

17 third phase’’ and inserting ‘‘Phase II 

18 or Phase III’’; and 

19 (II) by striking the period at the 

20 end and inserting a semicolon; and 

21 (iii) by adding at the end the fol22 lowing: 

23 ‘‘(10) the term ‘Phase I’ means— 

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

25 first phase described in paragraph (4)(A); and 
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1 ‘‘(B) with respect to the STTR program, the 

2 first phase described in paragraph (6)(A); 

3 ‘‘(11) the term ‘Phase II’ means— 

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

5 second phase described in paragraph (4)(B); and 

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

7 second phase described in paragraph (6)(B); and 

8 ‘‘(12) the term ‘Phase III’ means— 

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

10 third phase described in paragraph (4)(C); and 

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

12 third phase described in paragraph (6)(C).’’; 

13 (B) in subsection (j)— 

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

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

16 (ii) in paragraph (2)— 

17 (I) in subparagraph (B)— 

18 (aa) by striking ‘‘the third 

19 phase’’ each place it appears and 

20 inserting ‘‘Phase III’’; and 

21 (bb) by striking ‘‘the second 

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

23 (II) in subparagraph (D)— 
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1 (aa) by striking ‘‘the first 

2 phase’’ and inserting ‘‘Phase I’’; 

3 and 

4 (bb) by striking ‘‘the second 

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

6 (III) in subparagraph (F), by 

7 striking ‘‘the third phase’’ and insert8 ing ‘‘Phase III’’; 

9 (IV) in subparagraph (G)— 

10 (aa) by striking ‘‘the first 

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

12 and 

13 (bb) by striking ‘‘the second 

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

15 and 

16 (V) in subparagraph (H)— 

17 (aa) by striking ‘‘the first 

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

19 (bb) by striking ‘‘second 

20 phase’’ each place it appears and 

21 inserting ‘‘Phase II’’; and 

22 (cc) by striking ‘‘third 

23 phase’’ and inserting ‘‘Phase III’’; 

24 and 

25 (iii) in paragraph (3)— 
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1 (I) in subparagraph (A)— 

2 (aa) by striking ‘‘the first 

3 phase (as described in subsection 

4 (e)(4)(A))’’ and inserting ‘‘Phase 

5 I’’; 

6 (bb) by striking ‘‘the second 

7 phase (as described in subsection 

8 (e)(4)(B))’’ and inserting ‘‘Phase 

9 II’’; and 

10 (cc) by striking ‘‘the third 

11 phase (as described in subsection 

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

13 III’’; and 

14 (II) in subparagraph (B), by 

15 striking ‘‘second phase’’ and inserting 

16 ‘‘Phase II’’; 

17 (C) in subsection (k)— 

18 (i) by striking ‘‘first phase’’ each place 

19 it appears and inserting ‘‘Phase I’’; and 

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

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

22 (D) in subsection (l)(2)— 

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

24 inserting ‘‘Phase I’’; and 
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1 (ii) by striking ‘‘the second phase’’ and 

2 inserting ‘‘Phase II’’; 

3 (E) in subsection (o)(13)— 

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

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

6 and 

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

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

9 (F) in subsection (p)— 

10 (i) in paragraph (2)(B)— 

11 (I) in clause (vi)— 

12 (aa) by striking ‘‘the second 

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

14 and 

15 (bb) by striking ‘‘the third 

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

17 and 

18 (II) in clause (ix)— 

19 (aa) by striking ‘‘the first 

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

21 and 

22 (bb) by striking ‘‘the second 

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

24 and 

25 (ii) in paragraph (3)— 
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1 (I) by striking ‘‘the first phase (as 

2 described in subsection (e)(6)(A))’’ and 

3 inserting ‘‘Phase I’’; 

4 (II) by striking ‘‘the second phase 

5 (as described in subsection (e)(6)(B))’’ 

6 and inserting ‘‘Phase II’’; and 

7 (III) by striking ‘‘the third phase 

8 (as described in subsection (e)(6)(A))’’ 

9 and inserting ‘‘Phase III’’; 

10 (G) in subsection (q)(3)— 

11 (i) in subparagraph (A)— 

12 (I) in the subparagraph heading, 

13 by striking ‘‘FIRST PHASE’’ and insert14 ing ‘‘PHASE I’’; and 

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

16 inserting ‘‘Phase I’’; and 

17 (ii) in subparagraph (B)— 

18 (I) in the subparagraph heading, 

19 by striking ‘‘SECOND PHASE’’ and in20 serting ‘‘PHASE II’’; and 

21 (II) by striking ‘‘second phase’’ 

22 and inserting ‘‘Phase II’’; 

23 (H) in subsection (r)— 
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1 (i) in the subsection heading, by strik2 ing ‘‘THIRD PHASE’’ and inserting ‘‘PHASE

3 III’’; 

4 (ii) in paragraph (1)— 

5 (I) in the first sentence— 

6 (aa) by striking ‘‘for the sec7 ond phase’’ and inserting ‘‘for 

8 Phase II’’; 

9 (bb) by striking ‘‘third 

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

11 and 

12 (cc) by striking ‘‘second 

13 phase period’’ and inserting 

14 ‘‘Phase II period’’; and 

15 (II) in the second sentence— 

16 (aa) by striking ‘‘second 

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

18 and 

19 (bb) by striking ‘‘third 

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

21 and 

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

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

24 and 
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1 (I) in subsection (u)(2)(B), by striking ‘‘the 

2 first phase’’ and inserting ‘‘Phase I’’; 

3 (2) in section 34— 

4 (A) in subsection (c)(2)(B)(ii), by striking 

5 ‘‘first phase and second phase SBIR awards’’ 

6 and inserting ‘‘Phase I and Phase II SBIR 

7 awards (as defined in section 9(e))’’; and 

8 (B) in subsection (e)(2)(A)— 

9 (i) in clause (i), by striking ‘‘first 

10 phase awards’’ and all that follows and in11 serting ‘‘Phase I awards (as defined in sec12 tion 9(e));’’; and 

13 (ii) by striking ‘‘first phase’’ each 

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

15 and 

16 (3) in section 35(c)(2)(B)(vii), by striking ‘‘third 

17 phase’’ and inserting ‘‘Phase III’’. 

18 SEC. 108. MAJORITY-VENTURE INVESTMENTS IN SBIR 

19 FIRMS. 

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

21 (15 U.S.C. 638), as amended by this Act, is amended by 

22 adding at the end the following: 

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

24 FIRMS.— 

25 ‘‘(1) AUTHORITY AND DETERMINATION.— 
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1 ‘‘(A) IN GENERAL.—Upon a written deter2 mination provided not later than 30 days in ad3 vance to the Administrator and to the Committee 

4 on Small Business and Entrepreneurship of the 

5 Senate and the Committee on Small Business of 

6 the House of Representatives— 

7 ‘‘(i) the Director of the National Insti8 tutes of Health may award not more than 

9 18 percent of the SBIR funds of the Na10 tional Institutes of Health allocated in ac11 cordance with this Act, in the first full fis12 cal year beginning after the date of enact13 ment of this subsection, and each fiscal year 

14 thereafter, to small business concerns that 

15 are owned in majority part by venture cap16 ital companies and that satisfy the quali17 fication requirements under paragraph (2) 

18 through competitive, merit-based procedures 

19 that are open to all eligible small business 

20 concerns; and 

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

22 agency participating in the SBIR program 

23 may award not more than 8 percent of the 

24 SBIR funds of the Federal agency allocated 

25 in accordance with this Act, in the first full 
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1 fiscal year beginning after the date of enact2 ment of this subsection, and each fiscal year 

3 thereafter, to small business concerns that 

4 are majority owned by venture capital com5 panies and that satisfy the qualification re6 quirements under paragraph (2) through 

7 competitive, merit-based procedures that are 

8 open to all eligible small business concerns. 

9 ‘‘(B) DETERMINATION.—A written deter10 mination made under subparagraph (A) shall 

11 explain how the use of the authority under that 

12 subparagraph will induce additional venture 

13 capital funding of small business innovations, 

14 substantially contribute to the mission of the 

15 funding Federal agency, demonstrate a need for 

16 public research, and otherwise fulfill the capital 

17 needs of small business concerns for additional 

18 financing for the SBIR project. 

19 ‘‘(2) QUALIFICATION REQUIREMENTS.—The Ad20 ministrator shall establish requirements relating to 

21 the affiliation by small business concerns with venture 

22 capital companies, which may not exclude a United 

23 States small business concern from participation in 

24 the program under paragraph (1) on the basis that 

25 the small business concern is owned in majority part 
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1 by, or controlled by, more than 1 United States ven2 ture capital company, so long as no single venture 

3 capital company owns more than 49 percent of the 

4 small business concern. 

5 ‘‘(3) REGISTRATION.—A small business concern 

6 that is majority owned and controlled by multiple 

7 venture capital companies and qualified for partici8 pation in the program authorized under paragraph 

9 (1) shall— 

10 ‘‘(A) register with the Administrator on the 

11 date that the small business concern submits an 

12 application for an award under the SBIR pro13 gram; and 

14 ‘‘(B) indicate whether the small business 

15 concern is registered under subparagraph (A) in 

16 any SBIR proposal. 

17 ‘‘(4) COMPLIANCE.—A Federal agency described 

18 in paragraph (1) shall collect data regarding the 

19 number and dollar amounts of phase I, phase II, and 

20 all other categories of awards under the SBIR pro21 gram, and the Administrator shall report on the data 

22 and the compliance of each such Federal agency with 

23 the maximum amounts under paragraph (1) as part 

24 of the annual report by the Administration under 

25 subsection (b)(7). 
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1 ‘‘(5) ENFORCEMENT.—If a Federal agency 

2 awards more than the amount authorized under para3 graph (1) for a purpose described in paragraph (1), 

4 the amount awarded in excess of the amount author5 ized under paragraph (1) shall be transferred to the 

6 funds for general SBIR programs from the non-SBIR 

7 research and development funds of the Federal agency 

8 within 60 days of the date on which the Federal agen9 cy awarded more than the amount authorized under 

10 paragraph (1) for a purpose described in paragraph 

11 (1).’’. 

12 (b) TECHNICAL AND CONFORMING AMENDMENT.—Sec13 tion 3 of the Small Business Act (15 U.S.C. 632) is amend14 ed by adding at the end the following: 

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

16 term ‘venture capital company’ means an entity described 

17 in clause (i), (v), or (vi) of section 121.103(b)(5) of title 

18 13, Code of Federal Regulations (or any successor thereto).’’. 

19 (c) ASSISTANCE FOR DETERMINING AFFILIATES.—Not 

20 later than 30 days after the date of enactment of this Act, 

21 the Administrator shall post on the website of the Adminis22 tration (with a direct link displayed on the homepage of 

23 the website of the Administration or the SBIR website of 

24 the Administration)— 
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1 (1) a clear explanation of the SBIR affiliation 

2 rules under part 121 of title 13, Code of Federal Reg3 ulations; and 

4 (2) contact information for officers or employees 

5 of the Administration who— 

6 (A) upon request, shall review an issue re7 lating to the rules described in paragraph (1); 

8 and 

9 (B) shall respond to a request under sub10 paragraph (A) not later than 20 business days 

11 after the date on which the request is received. 

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

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

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

16 ‘‘(4) PHASE III AWARDS.—To the greatest extent 

17 practicable, Federal agencies and Federal prime con18 tractors shall issue Phase III awards relating to tech19 nology, including sole source awards, to the SBIR 

20 and STTR award recipients that developed the tech21 nology.’’. 
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1 SEC. 110. COLLABORATING WITH FEDERAL LABORATORIES 

2 AND RESEARCH AND DEVELOPMENT CEN3 TERS. 

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

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

6 the following: 

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

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

12 awards to any eligible small business concern that— 

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

14 with a Federal laboratory or federally funded re15 search and development center for portions of the 

16 activities to be performed under that award; or 

17 ‘‘(B) has entered into a cooperative research 

18 and development agreement (as defined in sec19 tion 12(d) of the Stevenson-Wydler Technology 

20 Innovation Act of 1980 (15 U.S.C. 3710a(d))) 

21 with a Federal laboratory. 

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

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

24 upon entering into agreement with any Federal 

25 laboratory or any federally funded laboratory or 

26 research and development center for any portion 
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1 of the activities to be performed under that 

2 award; 

3 ‘‘(B) approve an agreement between a small 

4 business concern receiving a SBIR or STTR 

5 award and a Federal laboratory or federally 

6 funded laboratory or research and development 

7 center, if the small business concern performs a 

8 lesser portion of the activities to be performed 

9 under that award than required by this section 

10 and by the SBIR Policy Directive and the STTR 

11 Policy Directive of the Administrator; or 

12 ‘‘(C) approve an agreement that violates 

13 any provision, including any data rights protec14 tions provision, of this section or the SBIR and 

15 the STTR Policy Directives. 

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

17 days after the date of enactment of this subsection, the 

18 Administrator shall modify the SBIR Policy Direc19 tive and the STTR Policy Directive issued under this 

20 section to ensure that small business concerns— 

21 ‘‘(A) have the flexibility to use the resources 

22 of the Federal laboratories and federally funded 

23 research and development centers; and 

24 ‘‘(B) are not mandated to enter into agree25 ment with any Federal laboratory or any feder-
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1 ally funded laboratory or research and develop2 ment center as a condition of an award.’’. 

3 SEC. 111. NOTICE REQUIREMENT. 

4 The head of any Federal agency involved in a case or 

5 controversy before any Federal judicial or administrative 

6 tribunal concerning the SBIR program or the STTR pro7 gram shall provide timely notice, as determined by the Ad8 ministrator, of the case or controversy to the Administrator. 

9 TITLE II—OUTREACH AND COM10 MERCIALIZATION INITIA11 TIVES 

12 SEC. 201. RURAL AND STATE OUTREACH. 

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

14 (15 U.S.C. 638) is amended by inserting after subsection 

15 (r) the following: 

16 ‘‘(s) OUTREACH.— 

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

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

19 ‘‘(A) for which the total value of contracts 

20 awarded to the State under this section during 

21 the most recent fiscal year for which data is 

22 available was less than $5,000,000; and 

23 ‘‘(B) that certifies to the Administrator that 

24 the State will, upon receipt of assistance under 

25 this subsection, provide matching funds from 
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1 non-Federal sources in an amount that is not 

2 less than 50 percent of the amount provided 

3 under this subsection. 

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

5 available to carry out this section for each of fiscal 

6 years 2010 through 2014, the Administrator may ex7 pend with eligible States not more than $5,000,000 in 

8 each such fiscal year in order to increase the partici9 pation of small business concerns located in those 

10 States in the programs under this section. 

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

12 assistance provided to an eligible State under this 

13 subsection in any fiscal year— 

14 ‘‘(A) shall be equal to not more than 50 per15 cent of the total amount of matching funds from 

16 non-Federal sources provided by the State; and 

17 ‘‘(B) shall not exceed $100,000. 

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

19 to an eligible State under this subsection shall be used 

20 by the State, in consultation with State and local de21 partments and agencies, for programs and activities 

22 to increase the participation of small business con23 cerns located in the State in the programs under this 

24 section, including— 
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1 ‘‘(A) the establishment of quantifiable per2 formance goals, including goals relating to— 

3 ‘‘(i) the number of program awards 

4 under this section made to small business 

5 concerns in the State; and 

6 ‘‘(ii) the total amount of Federal re7 search and development contracts awarded 

8 to small business concerns in the State; 

9 ‘‘(B) the provision of competition outreach 

10 support to small business concerns in the State 

11 that are involved in research and development; 

12 and 

13 ‘‘(C) the development and dissemination of 

14 educational and promotional information relat15 ing to the programs under this section to small 

16 business concerns in the State.’’. 

17 (b) FEDERAL AND STATE PROGRAM EXTENSION.— 

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

19 amended— 

20 (1) in subsection (h), by striking ‘‘2001 through 

21 2005’’ each place it appears and inserting ‘‘2010 

22 through 2014’’; and 

23 (2) in subsection (i), by striking ‘‘2005’’ and in24 serting ‘‘2014’’. 
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1 (c) MATCHING REQUIREMENTS.—Section 34(e)(2) of 

2 the Small Business Act (15 U.S.C. 657d(e)(2)) is amend3 ed— 

4 (1) in subparagraph (A)— 

5 (A) in clause (i), by striking ‘‘50 cents’’ and 

6 inserting ‘‘35 cents’’; and 

7 (B) in clause (iii), by striking ‘‘75 cents’’ 

8 and inserting ‘‘50 cents’’; 

9 (2) in subparagraph (B), by striking ‘‘50 cents’’ 

10 and inserting ‘‘35 cents’’; 

11 (3) by redesignating subparagraphs (C) and (D) 

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

13 (4) by inserting after subparagraph (B) the fol14 lowing: 

15 ‘‘(C) RURAL AREAS.— 

16 ‘‘(i) IN GENERAL.—Except as provided 

17 in clause (ii), the non-Federal share of the 

18 cost of the activity carried out using an 

19 award or under a cooperative agreement 

20 under this section shall be 35 cents for each 

21 Federal dollar that will be directly allocated 

22 by a recipient described in paragraph (A) 

23 to serve small business concerns located in 

24 a rural area. 
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1 ‘‘(ii) ENHANCED RURAL AWARDS.—For 

2 a recipient located in a rural area that is 

3 located in a State described in subpara4 graph (A)(i), the non-Federal share of the 

5 cost of the activity carried out using an 

6 award or under a cooperative agreement 

7 under this section shall be 15 cents for each 

8 Federal dollar that will be directly allocated 

9 by a recipient described in paragraph (A) 

10 to serve small business concerns located in 

11 the rural area. 

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

13 In this subparagraph, the term ‘rural area’ 

14 has the meaning given that term in section 

15 1393(a)(2)) of the Internal Revenue Code of 

16 1986.’’. 

17 SEC. 202. SBIR–STEM WORKFORCE DEVELOPMENT GRANT 

18 PILOT PROGRAM. 

19 (a) PILOT PROGRAM ESTABLISHED.—From amounts 

20 made available to carry out this section, the Administrator 

21 shall establish a SBIR–STEM Workforce Development 

22 Grant Pilot Program to encourage the business community 

23 to provide workforce development opportunities for college 

24 students, in the fields of science, technology, engineering, 
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1 and math (in this section referred to as ‘‘STEM college stu2 dents’’), by providing a SBIR bonus grant. 

3 (b) ELIGIBLE ENTITIES DEFINED.—In this section the 

4 term ‘‘eligible entity’’ means a grantee receiving a grant 

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

6 under subsection (a) that provides an internship program 

7 for STEM college students. 

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

9 grant equal to 10 percent of either a Phase I or Phase II 

10 grant, as applicable, with a total award maximum of not 

11 more than $10,000 per year. 

12 (d) EVALUATION.—Following the fourth year of fund13 ing under this section, the Administrator shall submit a 

14 report to Congress on the results of the SBIR–STEM Work15 force Development Grant Pilot Program. 

16 (e) AUTHORIZATION OF APPROPRIATIONS.—There are 

17 authorized to be appropriated to carry out this section— 

18 (1) $1,000,000 for fiscal year 2011; 

19 (2) $1,000,000 for fiscal year 2012; 

20 (3) $1,000,000 for fiscal year 2013; 

21 (4) $1,000,000 for fiscal year 2014; and 

22 (5) $1,000,000 for fiscal year 2015. 

23 SEC. 203. TECHNICAL ASSISTANCE FOR AWARDEES. 

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

25 638(q)(3)) is amended— 
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1 (1) in subparagraph (A), by striking ‘‘$4,000’’ 

2 and inserting ‘‘$5,000’’; 

3 (2) in subparagraph (B)— 

4 (A) by striking ‘‘, with funds available from 

5 their SBIR awards,’’; and 

6 (B) by striking ‘‘$4,000 per year’’ and in7 serting ‘‘$5,000 per year, which shall be in addi8 tion to the amount of the recipient’s award’’; 

9 and 

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

11 ‘‘(C) FLEXIBILITY.—In carrying out sub12 paragraphs (A) and (B), each Federal agency 

13 shall provide the allowable amounts to a recipi14 ent that meets the eligibility requirements under 

15 the applicable subparagraph, if the recipient re16 quests to seek technical assistance from an indi17 vidual or entity other than the vendor selected 

18 under paragraph (2) by the Federal agency. 

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

20 not— 

21 ‘‘(i) use the amounts authorized under 

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

23 selected under paragraph (2) provides the 

24 technical assistance to the recipient; or 
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1 ‘‘(ii) enter a contract with a vendor 

2 under paragraph (2) under which the 

3 amount provided for technical assistance is 

4 based on total number of Phase I or Phase 

5 II awards.’’. 

6 SEC. 204. COMMERCIALIZATION PROGRAM AT DEPARTMENT 

7 OF DEFENSE. 

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

9 638(y)) is amended— 

10 (1) in the subsection heading, by striking 

11 ‘‘PILOT’’; 

12 (2) by striking ‘‘Pilot’’ each place that term ap13 pears; 

14 (3) in paragraph (1)— 

15 (A) by inserting ‘‘or Small Business Tech16 nology Transfer Program’’ after ‘‘Small Business 

17 Innovation Research Program’’; and 

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

19 ‘‘The authority to create and administer a Com20 mercialization Program under this subsection 

21 may not be construed to eliminate or replace any 

22 other SBIR program or STTR program that en23 hances the insertion or transition of SBIR or 

24 STTR technologies, including any such program 

25 in effect on the date of enactment of the National 
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1 Defense Authorization Act for Fiscal Year 2006 

2 (Public Law 109–163; 119 Stat. 3136).’’; 

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

4 Business Technology Transfer Program’’ after ‘‘Small 

5 Business Innovation Research Program’’; 

6 (5) in paragraph (4), by inserting ‘‘or Small 

7 Business Technology Transfer Program’’ after ‘‘Small 

8 Business Innovation Research Program’’; 

9 (6) by striking paragraph (6); 

10 (7) by redesignating paragraph (5) as para11 graph (7); and 

12 (8) by inserting after paragraph (4) the fol13 lowing: 

14 ‘‘(5) INSERTION INCENTIVES.—For any contract 

15 with a value of not less than $100,000,000, the Sec16 retary of Defense is authorized to— 

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

18 Phase III technologies in subcontracting plans; 

19 and 

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

21 contract to report the number and dollar amount 

22 of contracts entered into by that prime con23 tractor for Phase III SBIR or STTR projects. 

24 ‘‘(6) GOAL FOR SBIR AND STTR TECHNOLOGY IN25 SERTION.—The Secretary of Defense shall— 
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1 ‘‘(A) set a goal to increase the number of 

2 Phase II SBIR contracts and the number of 

3 Phase II STTR contracts awarded by that Sec4 retary that lead to technology transition into 

5 programs of record or fielded systems; 

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

7 enactment of the SBIR/STTR Reauthorization 

8 Act of 2009, or create new incentives, to encour9 age agency program managers and prime con10 tractors to meet the goal under subparagraph 

11 (A); and 

12 ‘‘(C) include in the annual report to Con13 gress the percentage of contracts described in sub14 paragraph (A) awarded by that Secretary, and 

15 information on the ongoing status of projects 

16 funded through the Commercialization Program 

17 and efforts to transition these technologies into 

18 programs of record or fielded systems.’’. 

19 SEC. 205. COMMERCIALIZATION PILOT PROGRAM FOR CI20 VILIAN AGENCIES. 

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

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

23 the following: 

24 ‘‘(ee) PILOT PROGRAM.— 
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1 ‘‘(1) AUTHORIZATION.—The head of each covered 

2 Federal agency may set aside not more than 10 per3 cent of the SBIR and STTR funds of such agency for 

4 further technology development, testing, and evalua5 tion of SBIR and STTR Phase II technologies. 

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

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

8 agency may not establish a pilot program unless 

9 such agency makes a written application to the 

10 Administrator, not later than 90 days before to 

11 the first day of the fiscal year in which the pilot 

12 program is to be established, that describes a 

13 compelling reason that additional investment in 

14 SBIR or STTR technologies is necessary, includ15 ing unusually high regulatory, systems integra16 tion, or other costs relating to development or 

17 manufacturing of identifiable, highly promising 

18 small business technologies or a class of such 

19 technologies expected to substantially advance the 

20 mission of the agency. 

21 ‘‘(B) DETERMINATION.—The Administrator 

22 shall— 

23 ‘‘(i) make a determination regarding 

24 an application submitted under subpara25 graph (A) not later than 30 days before the 
37 

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1 first day of the fiscal year for which the ap2 plication is submitted; 

3 ‘‘(ii) publish the determination in the 

4 Federal Register; and 

5 ‘‘(iii) make a copy of the determina6 tion and any related materials available to 

7 the Committee on Small Business and En8 trepreneurship of the Senate and the Com9 mittee on Small Business of the House of 

10 Representatives. 

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

12 a Federal agency may not make an award under a 

13 pilot program in excess of 3 times the dollar amounts 

14 generally established for Phase II awards under sub15 section (j)(2)(D) or (p)(2)(B)(ix). 

16 ‘‘(4) MATCHING.—The head of a Federal agency 

17 may not make an award under a pilot program for 

18 SBIR or STTR Phase II technology that will be ac19 quired by the Federal Government unless new private, 

20 Federal non-SBIR, or Federal non-STTR funding 

21 that at least matches the award from the Federal 

22 agency is provided for the SBIR or STTR Phase II 

23 technology. 

24 ‘‘(5) ELIGIBILITY FOR AWARD.—The head of a 

25 Federal agency may make an award under a pilot 
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1 program to any applicant that is eligible to receive 

2 a Phase III award related to technology developed in 

3 Phase II of an SBIR or STTR project. 

4 ‘‘(6) REGISTRATION.—Any applicant that re5 ceives an award under a pilot program shall register 

6 with the Administrator in a registry that is available 

7 to the public. 

8 ‘‘(7) TERMINATION.—The authority to establish 

9 a pilot program under this section expires at the end 

10 of fiscal year 2014. 

11 ‘‘(8) DEFINITIONS.—In this section— 

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

13 ‘‘(i) means a Federal agency partici14 pating in the SBIR program or the STTR 

15 program; and 

16 ‘‘(ii) does not include the Department 

17 of Defense; and 

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

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

20 SEC. 206. NANOTECHNOLOGY INITIATIVE. 

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

22 (15 U.S.C. 638), as amended by this Act, is amended by 

23 adding at the end the following: 

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

25 agency participating in the SBIR or STTR program shall 
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1 encourage the submission of applications for support of 

2 nanotechnology related projects to such program.’’. 

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

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

5 this section, is repealed. 

6 SEC. 207. ACCELERATING CURES. 

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

8 amended— 

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

10 and 

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

12 ‘‘SEC. 44. SMALL BUSINESS INNOVATION RESEARCH PRO13 GRAM. 

14 ‘‘(a) NIH CURES PILOT.— 

15 ‘‘(1) ESTABLISHMENT.—An independent advi16 sory board shall be established at the National Acad17 emy of Sciences (in this section referred to as the ‘ad18 visory board’) to conduct periodic evaluations of the 

19 SBIR program (as that term is defined in section 9) 

20 of each of the National Institutes of Health (referred 

21 to in this section as the ‘NIH’) institutes and centers 

22 for the purpose of improving the management of the 

23 SBIR program through data-driven assessment. 

24 ‘‘(2) MEMBERSHIP.— 
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1 ‘‘(A) IN GENERAL.—The advisory board 

2 shall consist of— 

3 ‘‘(i) the Director of the NIH; 

4 ‘‘(ii) the Director of the SBIR program 

5 of the NIH; 

6 ‘‘(iii) senior NIH agency managers, se7 lected by the Director of NIH; 

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

9 Council of the National Academy of 

10 Sciences in consultation with the Associate 

11 Administrator for Technology of the Admin12 istration and the Director of the Office of 

13 Science and Technology Policy; and 

14 ‘‘(v) owners or operators of small busi15 ness concerns that have received an award 

16 under the SBIR program of the NIH, se17 lected by the Associate Administrator for 

18 Technology of the Administration. 

19 ‘‘(B) NUMBER OF MEMBERS.—The total 

20 number of members selected under clauses (iii), 

21 (iv), and (v) of subparagraph (A) shall not ex22 ceed 10. 

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

24 number of members of the advisory board selected 

25 under clauses (i), (ii), (iii), and (iv) of subpara-
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1 graph (A) shall be equal to the number of mem2 bers of the advisory board selected under sub3 paragraph (A)(v). 

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

5 the evidence-base guiding SBIR program decisions and 

6 changes, the Director of the SBIR program of the NIH shall 

7 address the gaps and deficiencies in the data collection con8 cerns identified in the 2007 report of the National Acad9 emies of Science entitled ‘An Assessment of the Small Busi10 ness Innovation Research Program at the NIH’. 

11 ‘‘(c) PILOT PROGRAM.— 

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

13 program of the NIH may initiate a pilot program, 

14 under a formal mechanism for designing, imple15 menting, and evaluating pilot programs, to spur in16 novation and to test new strategies that may enhance 

17 the development of cures and therapies. 

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

19 SBIR program of the NIH may consider conducting 

20 a pilot program to include individuals with successful 

21 SBIR program experience in study sections, hiring 

22 individuals with small business development experi23 ence for staff positions, separating the commercial 

24 and scientific review processes, and examining the 
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1 impact of the trend toward larger awards on the over2 all program. 

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

4 shall submit an annual report to Congress and the advisory 

5 board on the activities of the SBIR program of the NIH 

6 under this section. 

7 ‘‘(e) SBIR GRANTS AND CONTRACTS.— 

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

9 contracts under the SBIR program of the NIH each 

10 SBIR program manager shall place an emphasis on 

11 applications that identify products and services that 

12 may enhance the development of cures and therapies. 

13 ‘‘(2) EXAMINATION OF COMMERCIALIZATION AND

14 OTHER METRICS.—The advisory board shall evaluate 

15 the implementation of the requirement under para16 graph (1) by examining increased commercialization 

17 and other metrics, to be determined and collected by 

18 the SBIR program of the NIH. 

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

20 practicable, the Director of the SBIR program of the 

21 NIH shall reduce the time period between Phase I 

22 and Phase II funding of grants and contracts under 

23 the SBIR program of the NIH to 6 months. 

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

25 extramural budget (as defined in section 9 of the Small 
43 

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1 Business Act (15 U.S.C. 638)) of the NIH for research or 

2 research and development may be used for the pilot program 

3 under subsection (c) and to carry out subsection (e). 

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

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

6 the SBIR/STTR Reauthorization Act of 2009.’’. 

7 TITLE III—OVERSIGHT AND 

8 EVALUATION 

9 SEC. 301. STREAMLINING ANNUAL EVALUATION REQUIRE10 MENTS. 

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

12 638(b)), as amended by section 102 of this Act, is amend13 ed— 

14 (1) in paragraph (7)— 

15 (A) by striking ‘‘STTR programs, including 

16 the data’’ and inserting the following: ‘‘STTR 

17 programs, including— 

18 ‘‘(A) the data’’; 

19 (B) by striking ‘‘(g)(10), (o)(9), and (o)(15), 

20 the number’’ and all that follows through ‘‘under 

21 each of the SBIR and STTR programs, and a 

22 description’’ and inserting the following: ‘‘(g)(8) 

23 and (o)(9); and 

24 ‘‘(B) the number of proposals received from, 

25 and the number and total amount of awards to, 
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1 HUBZone small business concerns and firms 

2 with venture capital investment (including those 

3 majority owned and controlled by multiple ven4 ture capital firms) under each of the SBIR and 

5 STTR programs; 

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

7 each Federal agency is increasing outreach and 

8 awards to firms owned and controlled by women 

9 and social or economically disadvantaged indi10 viduals under each of the SBIR and STTR pro11 grams; 

12 ‘‘(D) general information about the imple13 mentation and compliance with the allocation of 

14 funds required under subsection (cc) for firms 

15 majority owned and controlled by multiple ven16 ture capital firms under each of the SBIR and 

17 STTR programs; 

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

19 Phase III awards and notices of noncompliance 

20 with the SBIR and the STTR Policy Directives 

21 filed by the Administrator with Federal agencies; 

22 and 

23 ‘‘(F) a description’’; and 

24 (2) by inserting after paragraph (7) the fol25 lowing: 
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1 ‘‘(8) to coordinate the implementation of elec2 tronic databases at each of the Federal agencies par3 ticipating in the SBIR program or the STTR pro4 gram, including the technical ability of the partici5 pating agencies to electronically share data;’’. 

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

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

8 638(g)) is amended— 

9 (1) by striking paragraph (10); 

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

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

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

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

18 program, including information necessary to main19 tain the database described in subsection (k), includ20 ing— 

21 ‘‘(A) whether an awardee— 

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

23 owned and controlled by multiple venture 

24 capital firms, and, if so— 
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1 ‘‘(I) the amount of venture capital 

2 that the awardee has received as of the 

3 date of the award; and 

4 ‘‘(II) the amount of additional 

5 capital that the awardee has invested 

6 in the SBIR technology; 

7 ‘‘(ii) has an investor that— 

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

9 citizen of the United States or a lawful 

10 permanent resident of the United 

11 States, and if so, the name of any such 

12 individual; or 

13 ‘‘(II) is a person that is not an 

14 individual and is not organized under 

15 the laws of a State or the United 

16 States, and if so the name of any such 

17 person; 

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

19 woman as a principal investigator; 

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

22 a socially or economically disadvantaged 

23 individual as a principal investigator; 
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1 ‘‘(v) received assistance under the 

2 FAST program under section 34 or the out3 reach program under subsection (s); 

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

5 of an institution of higher education, as 

6 that term is defined in section 101 of the 

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

8 1001); or 

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

10 subsection (u)(3); and 

11 ‘‘(B) a justification statement from the 

12 agency, if an awardee receives an award in an 

13 amount that is more than the award guidelines 

14 under this section;’’; and 

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

16 adding ‘‘and’’ at the end. 

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

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

19 638(o)) is amended— 

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

21 following: 

22 ‘‘(9) collect annually, and maintain in a com23 mon format in accordance with the simplified report24 ing requirements under subsection (v), such informa25 tion from applicants and awardees as is necessary to 
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1 assess the STTR program outputs and outcomes, in2 cluding information necessary to maintain the data3 base described in subsection (k), including— 

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

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

6 owned and controlled by multiple venture 

7 capital firms, and, if so— 

8 ‘‘(I) the amount of venture capital 

9 that the applicant or awardee has re10 ceived as of the date of the application 

11 or award, as applicable; and 

12 ‘‘(II) the amount of additional 

13 capital that the applicant or awardee 

14 has invested in the SBIR technology; 

15 ‘‘(ii) has an investor that— 

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

17 citizen of the United States or a lawful 

18 permanent resident of the United 

19 States, and if so, the name of any such 

20 individual; or 

21 ‘‘(II) is a person that is not an 

22 individual and is not organized under 

23 the laws of a State or the United 

24 States, and if so the name of any such 

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

2 woman as a principal investigator; 

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

5 a socially or economically disadvantaged 

6 individual as a principal investigator; 

7 ‘‘(v) received assistance under the 

8 FAST program under section 34 or the out9 reach program under subsection (s); 

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

11 of an institution of higher education, as 

12 that term is defined in section 101 of the 

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

14 1001); or 

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

16 the total value of contracts awarded to 

17 small business concerns under all STTR 

18 programs is less than the total value of con19 tracts awarded to small business concerns 

20 in a majority of other States, as determined 

21 by the Administrator in biennial fiscal 

22 years, beginning with fiscal year 2008, 

23 based on the most recent statistics compiled 

24 by the Administrator; and 
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1 ‘‘(B) if an awardee receives an award in an 

2 amount that is more than the award guidelines 

3 under this section, a statement from the agency 

4 that justifies the award amount;’’; 

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

6 end; 

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

8 (4) by redesignating paragraph (16) as para9 graph (15). 

10 SEC. 304. PUBLIC DATABASE. 

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

12 638(k)(1)) is amended— 

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

14 the end; 

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

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

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

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

19 has received a Phase I or Phase II SBIR or 

20 STTR award from a Federal agency, whether the 

21 small business concern— 

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

23 whether the small business concern is reg24 istered as majority owned and controlled by 
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1 multiple venture capital companies as re2 quired under subsection (cc)(3); 

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

4 woman as a principal investigator; 

5 ‘‘(iii) is owned by a socially or eco6 nomically disadvantaged individual or has 

7 a socially or economically disadvantaged 

8 individual as a principal investigator; 

9 ‘‘(iv) received assistance under the 

10 FAST program under section 34 or the out11 reach program under subsection (s); or 

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

13 a student of an institution of higher edu14 cation, as that term is defined in section 

15 101 of the Higher Education Act of 1965 

16 (20 U.S.C. 1001).’’. 

17 SEC. 305. GOVERNMENT DATABASE. 

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

19 638(k)(2)) is amended— 

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

21 and (E) as subparagraphs (D), (E), and (F), respec22 tively; 

23 (2) by inserting after subparagraph (B) the fol24 lowing: 

25 ‘‘(C) includes, for each awardee— 
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1 ‘‘(i) the name, size, location, and any 

2 identifying number assigned to the awardee 

3 by the Administrator; 

4 ‘‘(ii) whether the awardee has venture 

5 capital, and, if so— 

6 ‘‘(I) the amount of venture capital 

7 as of the date of the award; 

8 ‘‘(II) the percentage of ownership 

9 of the awardee held by a venture cap10 ital firm, including whether the 

11 awardee is majority owned and con12 trolled by multiple venture capital 

13 firms; and 

14 ‘‘(III) the amount of additional 

15 capital that the awardee has invested 

16 in the SBIR technology, which infor17 mation shall be collected on an annual 

18 basis; 

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

20 affiliates of the awardee; 

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

22 awardee; 

23 ‘‘(v) the number of employees of the af24 filiates of the awardee; and 
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1 ‘‘(vi) the names of, and the percentage 

2 of ownership of the awardee held by— 

3 ‘‘(I) any individual who is not a 

4 citizen of the United States or a lawful 

5 permanent resident of the United 

6 States; or 

7 ‘‘(II) any person that is not an 

8 individual and is not organized under 

9 the laws of a State or the United 

10 States;’’; and 

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

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

13 end; and 

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

15 ‘‘(iv) whether the applicant was major16 ity owned and controlled by multiple ven17 ture capital firms; and 

18 ‘‘(v) the number of employees of the ap19 plicant;’’. 

20 SEC. 306. ACCURACY IN FUNDING BASE CALCULATIONS. 

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

22 of enactment of this Act, and every 3 years thereafter, the 

23 Comptroller General of the United States shall— 
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1 (1) conduct a fiscal and management audit of 

2 the SBIR program and the STTR program for the 

3 applicable period to— 

4 (A) determine whether Federal agencies 

5 comply with the expenditure amount require6 ments under subsections (f)(1) and (n)(1) of sec7 tion 9 of the Small Business Act (15 U.S.C. 

8 638), as amended by this Act; 

9 (B) assess the extent of compliance with the 

10 requirements of section 9(i)(2) of the Small Busi11 ness Act (15 U.S.C. 638(i)(2)) by Federal agen12 cies participating in the SBIR program or the 

13 STTR program and the Administration; 

14 (C) assess whether it would be more con15 sistent and effective to base the amount of the al16 locations under the SBIR program and the 

17 STTR program on a percentage of the research 

18 and development budget of a Federal agency, 

19 rather than the extramural budget of the Federal 

20 agency; and 

21 (D) determine the portion of the extramural 

22 research or research and development budget of a 

23 Federal agency that each Federal agency spends 

24 for administrative purposes relating to the SBIR 

25 program or STTR program, and for what spe-
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1 cific purposes, including the portion, if any, of 

2 such budget the Federal agency spends for sala3 ries and expenses, travel to visit applicants, out4 reach events, marketing, and technical assist5 ance; and 

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

7 Business and Entrepreneurship of the Senate and the 

8 Committee on Small Business of the House of Rep9 resentatives regarding the audit conducted under 

10 paragraph (1), including the assessments required 

11 under subparagraphs (B) and (C), and the deter12 mination made under subparagraph (D) of para13 graph (1). 

14 (b) DEFINITION OF APPLICABLE PERIOD.—In this sec15 tion, the term ‘‘applicable period’’ means— 

16 (1) for the first report submitted under this sec17 tion, the period beginning on October 1, 2000, and 

18 ending on September 30 of the last full fiscal year be19 fore the date of enactment of this Act for which infor20 mation is available; and 

21 (2) for the second and each subsequent report 

22 submitted under this section, the period— 

23 (A) beginning on October 1 of the first fiscal 

24 year after the end of the most recent full fiscal 
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1 year relating to which a report under this sec2 tion was submitted; and 

3 (B) ending on September 30 of the last full 

4 fiscal year before the date of the report. 

5 SEC. 307. CONTINUED EVALUATION BY THE NATIONAL 

6 ACADEMY OF SCIENCES. 

7 Section 108 of the Small Business Reauthorization Act 

8 of 2000 (15 U.S.C. 638 note) is amended by adding at the 

9 end the following: 

10 ‘‘(e) EXTENSIONS AND ENHANCEMENTS OF AUTHOR11 ITY.— 

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

13 after the date of enactment of the SBIR/STTR Reau14 thorization Act of 2009, the head of each agency de15 scribed in subsection (a), in consultation with the 

16 Small Business Administration, shall cooperatively 

17 enter into an agreement with the National Academy 

18 of Sciences for the National Research Council to con19 duct a study described in subsection (a)(1) and make 

20 recommendations described in subsection (a)(2) not 

21 later than 4 years after the date of enactment of the 

22 SBIR/STTR Reauthorization Act of 2009, and every 

23 4 years thereafter. 

24 ‘‘(2) REPORTING.—An agreement under para25 graph (1) shall require that not later than 4 years 
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1 after the date of enactment of the SBIR/STTR Reau2 thorization Act of 2009, and every 4 years thereafter, 

3 the National Research Council shall submit to the 

4 head of the agency entering into the agreement, the 

5 Committee on Small Business and Entrepreneurship 

6 of the Senate, and the Committee on Small Business 

7 of the House of Representatives a report regarding the 

8 study conducted under paragraph (1) and containing 

9 the recommendations described in paragraph (1).’’. 

10 SEC. 308. TECHNOLOGY INSERTION REPORTING REQUIRE11 MENTS. 

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

16 STTR report to Congress by the Administration under sub17 section (b)(7) shall include, for each Phase III award made 

18 by the Federal agency— 

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

20 agency or the non-Federal source of capital making 

21 the Phase III award; 

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

23 individual receiving the Phase III award; and 

24 ‘‘(3) the dollar amount of the Phase III award.’’. 
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1 SEC. 309. INTELLECTUAL PROPERTY PROTECTIONS. 

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

3 United States shall conduct a study of the SBIR program 

4 to assess whether— 

5 (1) Federal agencies comply with the data rights 

6 protections for SBIR awardees and the technologies of 

7 SBIR awardees under section 9 of the Small Business 

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

9 (2) the laws and policy directives intended to 

10 clarify the scope of data rights, including in proto11 types and mentor-prote ́ge ́ relationships and agree12 ments with Federal laboratories, are sufficient to pro13 tect SBIR awardees; and 

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

16 a Federal agency regarding data rights and a process 

17 for resolving those grievances. 

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

19 of enactment of this Act, the Comptroller General shall sub20 mit to the Committee on Small Business and Entrepreneur21 ship of the Senate and the Committee on Small Business 

22 of the House of Representatives a report regarding the study 

23 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 the 

7 STTR Policy Directive to conform such directives to this 

8 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 Not later than 180 days after the date of enactment of this 

12 Act, the Administrator shall publish the amended SBIR 

13 Policy Directive and the amended STTR Policy Directive 

14 in the Federal Register. 

15 SEC. 402. PRIORITIES FOR CERTAIN RESEARCH INITIA16 TIVES. 

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

18 (15 U.S.C. 638), as amended by this Act, is amended by 

19 adding at the end the following: 

20 ‘‘(hh) RESEARCH INITIATIVES.—To the extent that 

21 such projects relate to the mission of the Federal agency, 

22 each Federal agency participating in the SBIR program 

23 or STTR program shall encourage the submission of appli24 cations for support of projects relating to security, energy, 
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1 transportation, or improving the security and quality of 

2 the water supply of the United States to such program.’’. 

3 (b) SUNSET.—Effective October 1, 2014, section 9(hh) 

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

5 this section, is repealed. 

6 SEC. 403. REPORT ON SBIR AND STTR PROGRAM GOALS. 

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

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

9 the following: 

10 ‘‘(ii) ANNUAL REPORT ON SBIR AND STTR PROGRAM

11 GOALS.— 

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

13 each Federal agency required to participate in the 

14 SBIR program or the STTR program shall develop 

15 metrics to evaluate the effectiveness, and the benefit to 

16 the people of the United States, of the SBIR program 

17 and the STTR program of the Federal agency that— 

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

19 driven; 

20 ‘‘(B) reflect the mission of the Federal agen21 cy; and 

22 ‘‘(C) include factors relating to the economic 

23 impact of the programs. 

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

25 agency described in paragraph (1) shall conduct an 
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1 annual evaluation using the metrics developed under 

2 paragraph (1) of— 

3 ‘‘(A) the SBIR program and the STTR pro4 gram of the Federal agency; and 

5 ‘‘(B) the benefits to the people of the United 

6 States of the SBIR program and the STTR pro7 gram of the Federal agency. 

8 ‘‘(3) REPORT.— 

9 ‘‘(A) IN GENERAL.—The head of each Fed10 eral agency described in paragraph (1) shall sub11 mit to the appropriate committees of Congress 

12 and the Administrator an annual report describ13 ing in detail the results of an evaluation con14 ducted under paragraph (2). 

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

16 The head of each Federal agency described in 

17 paragraph (1) shall make each report submitted 

18 under subparagraph (A) available to the public 

19 online. 

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

21 term ‘appropriate committees of Congress’ 

22 means— 

23 ‘‘(i) the Committee on Small Business 

24 and Entrepreneurship of the Senate; and 
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1 ‘‘(ii) the Committee on Small Business 

2 and the Committee on Science and Tech3 nology of the House of Representatives.’’. 

4 SEC. 404. COMPETITIVE SELECTION PROCEDURES FOR SBIR 

5 AND STTR PROGRAMS. 

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

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

8 the following: 

9 ‘‘(jj) COMPETITIVE SELECTION PROCEDURES FOR

10 SBIR AND STTR PROGRAMS.—All funds awarded, appro11 priated, or otherwise made available in accordance with 

12 subsection (f) or (n) must be awarded pursuant to competi13 tive and merit-based selection procedures.’’. 

Attest: 

Secretary. 

111TH CONGRESS 

1ST SESSION H.R. 2965 

AMENDMENT