Small Business Innovation Research and Small Business Technology Transfer Improvements Act of 2021.

To amend the Small Business Act to improve the Small Business Innovation Research program and Small Business Technology Transfer program, and for other purposes. 1. Short title; table of contents (a) Short title This Act may be cited as the Small Business Innovation Research and Small Business Technology Transfer Improvements Act of 2021. (b) Table of contents The table of contents for this Act is as follows: Sec. 1. Short title; table of contents. Sec. 2. Requiring insertion incentives. Sec. 3. Additional SBIR and STTR technology insertion reporting requirement. Sec. 4. Encouraging innovation in United States manufacturing. Sec. 5. Encouraging innovation in cybersecurity. Sec. 6. Compliance of Phase III awards with competitive procedures. Sec. 7. Increased outreach requirements. Sec. 8. Annual meeting. Sec. 9. Establishing the Civilian Agency Commercialization Readiness Program. Sec. 10. Phase 0 Proof of Concept Partnership Program. Sec. 11. Reporting requirements. Sec. 12. SBIR phase flexibility. Sec. 13. Amendments to administrative fee assistance. Sec. 14. Amendments to technical and business assistance. Sec. 15. Extension of commercialization extension pilot. Sec. 16. Short-form application. 2. Requiring insertion incentives Section 9(y)(5) of the Small Business Act ( 15 U.S.C. 638(y)(5) is authorized to shall 3. Additional SBIR and STTR technology insertion reporting requirement Section 9(y)(6) of the Small Business Act ( 15 U.S.C. 638(y)(6) (1) in subparagraph (B), by striking and (2) in subparagraph (C)(iii), by striking the period at the end and inserting ; and (3) by adding at the end the following new subparagraph: (D) not later than 120 days after the date of the enactment of this subparagraph, and not later than December 31 of each year thereafter, submit to the Committee on Science, Space, and Technology and the Committee on Small Business of the House of Representatives, and to the Committee on Small Business and Entrepreneurship of the Senate, a report describing the goals set under subparagraph (A) and the incentives used or created under subparagraph (B). . 4. Encouraging innovation in United States manufacturing Section 9 of the Small Business Act ( 15 U.S.C. 638 (vv) Encouraging innovation in united states manufacturing In carrying out this section, the Administrator shall— (1) ensure that, in selecting small business concerns to participate in SBIR or STTR programs under this section, Federal agencies give high priority to small manufacturing companies and other small business concerns engaged in or planning to engage in manufacturing research and development for the purpose of developing and producing new products and technologies in the United States; and (2) include in the annual report to Congress under subsection (b)(7) a determination of whether the priority described in paragraph (1) is being carried out. . 5. Encouraging innovation in cybersecurity Section 9 of the Small Business Act ( 15 U.S.C. 638 (ww) Encouraging innovation in cybersecurity In carrying out this section, the Administrator shall— (1) ensure that, in selecting small business concerns to participate in SBIR or STTR programs under this section, Federal agencies engaged in cybersecurity research give high priority to small business concerns that are engaged in cybersecurity research and development, for the purpose of developing and implementing technology services and products to strengthen the security of United States Government and private computer systems, including software, hardware, and portable devices; and (2) include in the annual report to Congress under subsection (b)(7) a determination of whether the priority described in paragraph (1) is being carried out. . 6. Compliance of Phase III awards with competitive procedures Section 9(r)(4) of the Small Business Act ( 15 U.S.C. 638(r)(4) direct follow-on awards issued without further competition developed the technology 7. Increased outreach requirements (a) In general (1) SBIR Amendment Section 9(j) of the Small Business Act ( 15 U.S.C. 638(j) (5) Increased outreach requirements Upon the enactment of this paragraph, the Administrator shall modify the policy directives issued pursuant to this subsection to require outreach efforts to increase the participation in technological innovation under the SBIR programs among individuals conducting research at minority institutions (as defined in section 365(3) of the Higher Education Act of 1965) and Hispanic-serving institutions (as defined in section 502(a)(5) of such Act). . (2) STTR Amendment Section 9(p)(2) of the Small Business Act ( 15 U.S.C. 638(p)(2) (H) procedures for outreach efforts to increase the participation in technological innovation under the SBIR programs among individuals conducting research at minority institutions (as defined in section 365(3) of the Higher Education Act of 1965) and Hispanic-serving institutions (as defined in section 502(a)(5) of such Act). . (b) Funding for outreach Section 9(mm)(1) of the Small Business Act ( 15 U.S.C. 638(mm)(1) (1) in subparagraph (J), by striking the “and” at the end; (2) in subparagraph (K), by striking the period at the end and inserting a semicolon; and (3) by adding at the end the following new subparagraph: (L) the outreach efforts described under subsections (j)(4) and (p)(2)(G); and . 8. Annual meeting (a) In general Section 9 of the Small Business Act ( 15 U.S.C. 638 (xx) Annual meeting (1) In general The head of each Federal agency required to have a program under this section (or a designee) and the Administrator (or a designee) shall meet annually to discuss methods— (A) to improve the collection of data under this section; (B) to improve the reporting of data to the Administrator under this section; (C) to make the application processes for programs under this section more efficient; and (D) to increase participation in the programs established under this section. (2) Report Not later than 60 days after the date on which an annual meeting required under paragraph (1) is held, the Administrator shall submit to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business and the Committee on Science, Space, and Technology of the House of Representatives, a report on the findings of such meeting and recommendations on how to implement changes to programs under this section. . (b) Funding for annual meeting Section 9(mm)(1) of the Small Business Act ( 15 U.S.C. 638(mm)(1) (M) the annual meeting required under subsection (xx). . 9. Establishing the Civilian Agency Commercialization Readiness Program Section 9(gg) of the Small Business Act ( 15 U.S.C. 638(gg) (1) by amending the subsection heading to read as follows: Civilian agency commercialization readiness program (2) in paragraph (1), by inserting to establish a Civilian Agency Commercialization Readiness Program for civilian agencies the covered Federal agency (3) in paragraph (2)(A)— (A) by striking establish a pilot program establish a Civilian Agency Commercialization Readiness Program under this subsection (B) by striking the pilot program such Civilian Agency Commercialization Readiness Program (4) in paragraphs (3) and (4), by striking a pilot program a Civilian Agency Commercialization Readiness Program (5) in paragraph (6), by striking the pilot program a Civilian Agency Commercialization Readiness Program (6) by striking paragraph (7) and redesignating paragraph (8) as paragraph (7); and (7) in paragraph (7) (as so redesignated), by amending subparagraph (B) to read as follows: (B) the term Civilian Agency Commercialization Readiness Program . 10. Phase 0 Proof of Concept Partnership program Section 9(jj) of the Small Business Act ( 15 U.S.C. 638(jj) (1) in the subsection heading, strike pilot (2) in paragraph (1)— (A) by striking The Director of the National Institutes of Health Each covered agency head (B) by striking pilot (C) by striking the Director each covered agency head (3) in paragraph (2)— (A) in subparagraph (C), by striking in the National Institutes of Health’s STTR program in the STTR program of any agency described in section (n) (B) by adding at the end the following: (D) the term covered agency head (E) the term Phase 0 program (F) the terms qualifying institution institution ; (4) in paragraph (3) by adding entrepreneurial training market research (5) in paragraph (4)— (A) in subparagraph (A), by striking The Director Each covered agency head (B) in subparagraph (B), by striking In determining qualifying institutions— In determining which qualifying institutions receive Phase 0 Program grants, each covered agency head shall consider, in addition to any other criteria such covered agency head determines necessary, the extent to which the qualifying institutions— (6) in paragraph (6), in the matter preceding (A), by striking The Director Each covered agency head pilot program Phase 0 program (7) by striking paragraph (7). 11. Reporting requirements (a) Annual report to congress Section 9(b)(7) of the Small Business Act ( 15 U.S.C. 638(b)(7) to report not less than annually to submit a report not later than December 31 of each year (b) Annual report to SBA and the office of science and technology policy Section 9(g)(9) of the Small Business Act ( 15 U.S.C. 638(g)(9) (1) by striking make an annual report not later than March 30 of each year, submit a report (2) by striking and the Office of Science and Technology Policy , the Office of Science and Technology Policy, the Committee on Science, Space, and Technology and the Committee on Small Business of the House of Representatives, and the Committee on Small Business and Entrepreneurship of the Senate 12. SBIR phase flexibility Section 9(cc) of the Small Business Act ( 15 U.S.C. 638(cc) During fiscal years may each provide During fiscal years 2022 through 2026 all agencies participating in the SBIR program may provide 13. Amendments to administrative fee assistance Section 9(mm) of the Small Business Act ( 15 U.S.C. 638(mm) (1) in paragraph (1), by striking and until September 30, 2022 (2) in paragraph (2), after “(j)(2)(F)” add “and (j)(5)” as required under this Act. 14. Amendments to technical and business assistance Section 9(q) of the Small Business Act ( 15 U.S.C. 638(q) (1) in the header, by striking technical and business assistance application, technical, and business assistance (2) in paragraph (2), by adding at the end the following: (C) Guidance The Administrator shall establish guidelines and metrics for the selection of vendors for the purposes of this subsection, which shall include at a minimum guidance on selecting vendors with demonstrated experience and success in— (i) working with small business concerns focused on research and development of advanced and emerging technologies; (ii) federal acquisition and procurement processes and regulations; and (iii) commercializing federally funded research and development. ; and (3) in paragraph (3)— (A) in subparagraph (C), by adding subject to the guidance provided by the Administrator under paragraph (2)(C) commercializing technology (B) in subparagraph (D)— (i) in clause (i), by striking ; or (ii) in clause (ii), by striking the period at the end and inserting ; or (iii) by adding at the end the following: (iii) use the amounts authorized under subparagraph (A) or (B) to increase the amount of an award for carrying out additional research or development. ; (C) by inserting after paragraph (3) the following new paragraph: (4) Application assistance (A) In general Each Federal agency required by this section to conduct an SBIR program or STTR program may establish an Application Assistance Program to provide small business concerns applying to SBIR or STTR with application assistance. (B) Purpose The purpose of this program is to assist small businesses to better understand the technical aspects of the application process and to develop a more competitive application. (C) Requirements Each agency under subparagraph (A) may provide the assistance under this paragraph or enter into an agreement with 1 or more vendors selected under subparagraph (G). (D) Eligibility To be eligible for assistance under this program a small business concern must— (i) be a first-time applicant for an SBIR or STTR award from that agency and have not been a previous recipient of an SBIR or STTR award from any other agency; and (ii) be selected to proceed in the application process after the short-form application requirements under section 9(g)(2) have been completed. (E) Broadening participation The Administrator shall encourage businesses described under section (j)(2)(F) to apply for assistance under the program established in this paragraph. (F) Activities The program shall provide Phase 1 proposal preparation, review, and registration assistance to small business concerns selected to proceed in the application process after the short-form application requirements under section 9(g)(2) have been completed. (G) Vendor selection If the agency selects 1 or more vendors to provide the assistance under this program, it shall be a competitive, merit-based process for a term not to exceed 5 years and the vendor shall have demonstrated expertise in writing successful Federally funded technology development proposals. (H) Payment for services There shall be no fee assessed to small business concerns receiving services under this program. (I) Funding Each Federal agency that establishes an Application Assistance program may use funds allocated under section 9(mm). ; and (D) by redesignating paragraph (4) as paragraph (5). 15. Extension of commercialization extension pilot Section 9(uu)(3) of the Small Business Act ( 15 U.S.C. 638(uu) 2022 2026 16. Short-form application Section 9(g) of the Small Business Act ( 15 U.S.C. 638(g) (1) by striking Each Federal agency (1) (2) by redesignating paragraphs (1) through (12) as subparagraphs (A) through (L), respectively; (3) in subparagraph (C), as so redesignated, by redesignating subparagraphs (A) and (B) as clauses (i) and (ii), respectively; (4) in subparagraph (D), as so redesignated— (A) by redesignating subparagraphs (A) and (B) as clauses (i) and (ii), respectively; (B) in clause (ii), as so redesignated, by redesignating clauses (i) and (ii) as subclauses (I) and (II), respectively; and (C) in subclause (II), as so redesignated, by striking clause (i) subclause (I) (5) in subparagraph (H), as so redesignated— (A) by redesignating subparagraphs (A) through (C) as clauses (i) through (iii), respectively; (B) in clause (i), as so redesignated, by redesignating clauses (i) through (vi) as subclauses (I) through (VI), respectively; (C) in subclause (I), as so redesignated, by redesignating subclauses (I) and (II) as items (aa) and (bb), respectively; and (D) in subclause (II), as so redesignated, by redesignating subclauses (I) and (II) as items (aa) and (bb), respectively; and (6) by adding at the end a new paragraph (2): (2) To the extent practicable prior to a more extensive application, implement a short-form application to be received and evaluated, which shall include at a minimum a description of— (A) the technology innovation; (B) the technical objectives and challenges; (C) the market opportunity; and (D) the small business concern and key employees. .

Summary: Small Business Innovation Research and Small Business Technology Transfer Improvements Act of 2021 This bill modifies the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs administered by the Small Business Administration (SBA). Specifically, the bill requires the Department of Defense to report on the goals and incentives used to increase awards of SBIR and STTR contracts. It also prioritizes innovation in manufacturing and cybersecurity and directs federal agencies to issue Phase III awards to technology developers without requiring further competition. Further, the bill makes permanent (as the Civilian Agency Commercialization Readiness Program) the pilot program that a covered agency may establish for awarding SBIR and STTR Phase II and III funds for technology development and progression toward commercialization. The bill also extends the Commercialization Assistance Pilot Program though FY2026. The bill authorizes specified agencies to use a percentage of STTR funds for a Proof of Concept Partnership program to accelerate the creation of small businesses and the commercialization of research innovations. It also authorizes all agencies participating in the SBIR program, during FY2022-FY2026, to provide a SBIR Phase II award for a project to a small business concern without regard to whether such concern was provided a Phase I award for such project. The bill requires the SBA to conduct outreach efforts at minority institutions and Hispanic-serving institutions.