279 
(2) CONTENTS.—A briefing and report under paragraph (1) shall— 
(A) detail the past and planned activities of the procurement 
center representative; and 
(B) contain such recommendations for improvement in the oper-
ation of the major procurement center as may be appropriate. 
(3) RESPONSE.—The head of the major procurement center shall— 
(A) personally receive the briefing and report; and 
(B) not later than 60 calendar days after receipt, respond, in 
writing, to each recommendation made by the procurement center 
representative. 
(j) SCOPE OF REVIEW.—The Administrator— 
(1) may not limit the scope of review by the procurement center rep-
resentative for any solicitation of a contract or task order without re-
gard to whether the contract or task order or part of the contract or 
task order is set aside for small business concerns, whether 1 or more 
contracts or task order awards are reserved for small business concerns 
under a multiple award contract, or whether or not the solicitation 
would result in a bundled contract (as defined in section 101102 of this 
title), a consolidated contract (as defined in section 101102 of this 
title), or a bundled or consolidated task order; and 
(2) shall, unless the contracting agency requests a review, limit the 
scope of review by the procurement center representative for any solici-
tation of a contract or task order if such solicitation is awarded by or 
for the Department of Defense and— 
(A) is conducted pursuant to section 22 of the Arms Export 
Control Act (22 U.S.C. 2762); 
(B) is a humanitarian operation as defined in section 401(e) of 
title 10; 
(C) is for a contingency operation, as defined in section 
101(a)(13) of title 10; 
(D) is to be awarded pursuant to an agreement with the govern-
ment of a foreign country in which Armed Forces of the United 
States are deployed; or 
(E) both the place of award and the place of performance are 
outside of the United States and its territories. 
(k) STANDARDS FOR MEASURING COST SAVINGS FROM PROCUREMENT 
CENTER REPRESENTATIVES.—The Administrator and the Comptroller Gen-
eral shall jointly establish standards for measuring— 
(1) cost savings achieved through the efforts of procurement center 
representatives; and 
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(2) the extent to which competition has been increased as a result 
of those efforts. 
§ 251111. Department of Defense, Coast Guard, and National 
Aeronautics and Space Administration contract 
goals 
A Federal agency subject to the requirements of section 2323 of title 10 
shall, when implementing those requirements— 
(1) establish policies and procedures that ensure that there will be 
no reduction in the number or dollar value of contracts awarded under 
this chapter or division F to achieve any goal or other program objec-
tive; and 
(2) ensure that those requirements will not alter or change the pro-
curement process used to implement this chapter, chapter 231, or 
chapter 233. 
§ 251112. Actions by procurement center representatives to 
ensure compliance 
A procurement center representative assigned under section 251109 or 
251110 of this title, in addition to such other duties as the Administrator 
may assign, shall— 
(1) monitor the performance of the procurement activities to which 
the procurement center representative is assigned to ascertain the de-
gree of compliance with the requirements of section 251111 of this 
title; 
(2) report to the procurement center representative’s immediate su-
pervisors all instances of noncompliance with those requirements; and 
(3) increase, insofar as possible, the number and dollar value of pro-
curements that may be used for the programs established under this 
chapter, division F of this subtitle, and section 2323 of title 10. 
§ 251113. Limitations on subcontracting 
A concern shall not be awarded a contract under section 251101 of this 
title as a small business concern unless the concern agrees to satisfy the 
requirements of section 291107 of this title. 
§ 251114. Multiple award contracts 
The Administrator for Federal Procurement Policy and the Adminis-
trator, in consultation with the Administrator of General Services, shall by 
regulation establish guidance under which Federal agencies may— 
(1) set aside 1 or more parts of a multiple award contract for small 
business concerns, including the subcategories of small business con-
cerns identified in section 251106(b) of this title; 
(2) notwithstanding the fair opportunity requirements under section 
2304c(b) of title 10 and section 4106(c) of title 41, set aside orders 
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placed against multiple award contracts for small business concerns, in-
cluding the subcategories of small business concerns identified in sec-
tion 251106(b) of this title; and 
(3) reserve 1 or more contract awards for small business concerns 
under full and open multiple award procurements, including the subcat-
egories of small business concerns identified in section 251106(b) of 
this title. 
§ 251115. Data quality improvement plan 
(a) IN GENERAL.—In consultation with the Small Business Procurement 
Advisory Council, the Administrator for Federal Procurement Policy, and 
the Administrator of General Services, the Administrator shall develop a 
plan to improve the quality of data reported on bundled contracts or consoli-
dated contracts in the Federal procurement data system described in section 
1122(a)(4)(A) of title 41. 
(b) PLAN REQUIREMENTS.—The plan shall— 
(1) describe the roles and responsibilities of the Administrator, each 
Director of Small and Disadvantaged Business Utilization, the Admin-
istrator for Federal Procurement Policy, the Administrator of General 
Services, senior procurement executives, and Chief Acquisition Officers 
in— 
(A) improving the quality of data reported on bundled contracts 
or consolidated contracts in the Federal procurement data system; 
and 
(B) contributing to the annual report required by section 
107106 of this title; 
(2) recommend changes in policies and procedures, including training 
procedures of personnel with relevant responsibilities, to properly iden-
tify and mitigate the effects of bundled contracts or consolidated con-
tracts; 
(3) recommend requirements for periodic and statistically valid data 
verification and validation; and 
(4) recommend clear data verification responsibilities. 
(c) PLAN SUBMISSION.—The Administrator shall submit the plan to the 
Committee on Small Business of the House of Representatives and the 
Committee on Small Business and Entrepreneurship of the Senate not later 
than December 1, 2016. 
(d) CERTIFICATION.—The Administrator shall annually provide to the 
Committee on Small Business of the House of Representatives and the 
Committee on Small Business and Entrepreneurship of the Senate a certifi-
cation of the accuracy and completeness of data reported on bundled and 
consolidated contracts. 
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§ 251116. Post-award compliance resources 
The Administrator shall provide to small business development centers 
and entities participating in the Procurement Technical Assistance Coopera-
tive Agreement Program under chapter 142 of title 10, and shall make 
available on the SBA website, a list of resources for small business concerns 
seeking education and assistance on compliance with contracting regulations 
(including the Federal Acquisition Regulation) after award of a contract or 
subcontract. 
§ 251117. Regulatory changes and training materials 
(a) IN GENERAL.—Not less than annually, the Administrator shall pro-
vide to the Defense Acquisition University (established under section 1746 
of title 10), the Federal Acquisition Institute (established under section 
1201 of title 41), the individual responsible for mandatory training and edu-
cation of the acquisition workforce of each agency (described under section 
1703(f)(1)(C) of title 41), small business development centers, and entities 
participating in the Procurement Technical Assistance Cooperative Agree-
ment Program under chapter 142 of title 10— 
(1) a list of all changes made in the prior year to regulations pro-
mulgated— 
(A) by the Administrator that affect Federal acquisition; and 
(B) by the Federal Acquisition Council that implement amend-
ments to subtitles I and II of this title; and 
(2) any materials the Administrator has developed that explain, 
train, or assist Federal agencies or departments or small business con-
cerns with compliance with the regulations described in paragraph (1). 
(b) TRAINING TO BE UPDATED.—After receipt of information from the 
Administrator pursuant to subsection (a), the Defense Acquisition Univer-
sity (established under section 1746 of title 10) and the Federal Acquisition 
Institute (established under section 1201 of title 41) shall periodically up-
date the training provided to the acquisition workforce to incorporate the 
information. 
Chapter 253—HUBZone Program 
Sec. 
253101.
Definitions. 
253102.
Establishment of HUBZone program. 
253103.
Sole source preference. 
253104.
Setaside preference. 
253105.
Appeal of decision not to award contract. 
253106.
Price evaluation preference in full and open competition. 
253107.
Relationship to other contracting preferences. 
253108.
Verification of eligibility. 
253109.
Mentor-prote´ge´ program. 
253110.
Wholesalers and retailers. 
253111.
List of qualified HUBZone small business concerns. 
253112.
Regulations. 
253113.
Penalties. 
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§ 253101. Definitions 
In this chapter: 
(1) BASE CLOSURE AREA.— 
(A) IN
GENERAL.—Subject to subparagraph (B), the term 
‘‘base closure area’’ means— 
(i) land within the external boundaries of a military instal-
lation that was closed through a privatization process 
under— 
(I) the Defense Base Closure and Realignment Act of 
1990 (part A of title XXIX of division B of Public Law 
101–510; 10 U.S.C. 2687 note); 
(II) title II of the Defense Authorization Amendments 
and Base Closure and Realignment Act (Public Law 
100–526; 10 U.S.C. 2687 note); 
(III) section 2687 of title 10; or 
(IV) any other provision of law authorizing or direct-
ing the Secretary of Defense or the Secretary of a mili-
tary department to dispose of real property at the mili-
tary installation for purposes relating to base closures or 
redevelopment, while retaining the authority to enter into 
a leaseback of all or a portion of the property for mili-
tary use; 
(ii) the census tract or nonmetropolitan county in which 
land described in clause (i) is wholly contained; 
(iii) a census tract or nonmetropolitan county the bound-
aries of which intersect the area described in clause (i); and 
(iv) a census tract or nonmetropolitan county the bound-
aries of which are contiguous to the area described in clause 
(ii) or (iii). 
(B) LIMITATION.—A base closure area shall be treated as a 
HUBZone— 
(i) with respect to a census tract or nonmetropolitan coun-
ty described in subparagraph (A), for a period of not less 
than 8 years, beginning on the date on which the military in-
stallation undergoes final closure and ending on the date on 
which the Administrator makes a final determination whether 
to implement the applicable designation as a qualified census 
tract or qualified nonmetropolitan county in accordance with 
the results of the decennial census conducted after the area 
was initially designated as a base closure area; and 
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(ii) if the area was treated as a HUBZone at any time 
after 2010, until such time as the Administrator makes a 
final determination whether to implement the applicable des-
ignation as a qualified census tract or qualified nonmetropoli-
tan county, after the 2020 decennial census. 
(C) DEFINITIONS.—In this paragraph: 
(i) CENSUS TRACT.—The term ‘‘census tract’’ means a cen-
sus tract delineated by the Bureau of the Census in the most 
recent decennial census that is not located in a nonmetropoli-
tan county and does not otherwise qualify as a qualified cen-
sus tract. 
(ii) NONMETROPOLITAN COUNTY.—The term ‘‘nonmetro-
politan county’’ means a county that was not located in a 
metropolitan 
statistical 
area 
(as 
defined 
in 
section 
143(k)(2)(B) of the Internal Revenue Code of 1986 (26 
U.S.C. 143(k)(2)(B))) at the time of the most recent census 
taken for purposes of selecting qualified census tracts and 
does not otherwise qualify as a qualified nonmetropolitan 
county. 
(2) FULL AND OPEN COMPETITION.—The term ‘‘full and open com-
petition’’ has the meaning given the term in section 107 of title 41. 
(3) HISTORICALLY UNDERUTILIZED BUSINESS ZONE.— 
(A) IN GENERAL.—The term ‘‘historically underutilized business 
zone’’ means an area located within 1 or more— 
(i) qualified census tracts; 
(ii) qualified nonmetropolitan counties; 
(iii) areas of land within the external boundaries of an In-
dian reservation; 
(iv) redesignated areas; 
(v) base closure areas; or 
(vi) qualified disaster areas. 
(B) HUBZONE STATUS TIMELINE AND COMMENCEMENT.— 
(i) 2004 ENACTMENT.—A base closure area that has un-
dergone final closure shall be treated as a HUBZone for a 
period of 5 years. 
(ii) 2013 ENACTMENT.— 
(I) DEFINITION OF COVERED BASE CLOSURE AREA.— 
In this clause, the term ‘‘covered base closure area’’ 
means a base closure area that, on or before January 2, 
2013, was treated as a HUBZone for purposes of the 
Small Business Act (15 U.S.C. 631 et seq.) pursuant to 
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section 152(a)(2) of the Small Business Reauthorization 
and Manufacturing Assistance Act of 2004 (15 U.S.C. 
632 note). 
(II) TREATMENT AS HUBZONE.— 
(aa) IN GENERAL.—Subject to item (bb), a cov-
ered base closure area shall be treated as a 
HUBZone for purposes of this subtitle and subtitle 
II during the 5-year period beginning on January 2, 
2013. 
(bb) LIMITATION.—The total period of time that 
a covered base closure area is treated as a 
HUBZone for purposes of this subtitle and subtitle 
II pursuant to this clause and clause (i) shall not 
exceed 5 years. 
(4) HUBZONE.—The term ‘‘HUBZone’’ means a historically under-
utilized business zone. 
(5) HUBZONE SMALL BUSINESS CONCERN.—The term ‘‘HUBZone 
small business concern’’ means— 
(A) a small business concern that is at least 51 percent owned 
and controlled by United States citizens; 
(B) a small business concern that is— 
(i) an Alaska Native Corporation owned and controlled by 
Natives (as determined under section 29(e)(1) of the Alaska 
Native Claims Settlement Act (43 U.S.C. 1626(e)(1))); or 
(ii) a direct or indirect subsidiary corporation, joint ven-
ture, or partnership of an Alaska Native Corporation quali-
fying under section 29(e)(1) of the Alaska Native Claims Set-
tlement Act (43 U.S.C. 1626(e)(1)), if that subsidiary, joint 
venture, or partnership is owned and controlled by Natives 
(as determined under section 29(e)(2) of the Alaska Native 
Claims Settlement Act (43 U.S.C. 1626(e)(2))); 
(C) a small business concern— 
(i) that is wholly owned by 1 or more Indian tribal govern-
ments, or by a corporation that is wholly owned by 1 or more 
Indian tribal governments; or 
(ii) that is owned in part by 1 or more Indian tribal gov-
ernments, or by a corporation that is wholly owned by 1 or 
more Indian tribal governments, if all other owners are either 
United States citizens or small business concerns; 
(D) a small business concern— 
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(i) that is wholly owned by 1 or more Native Hawaiian or-
ganizations or by a corporation that is wholly owned by 1 or 
more Native Hawaiian organizations; or 
(ii) that is owned in part by 1 or more Native Hawaiian 
Organizations, or by a corporation that is wholly owned by 1 
or more Native Hawaiian organizations, if all other owners 
are either United States citizens or small business concerns; 
(E) a small business concern that is— 
(i) wholly owned by a community development corporation 
that has received financial assistance under part 1 of sub-
chapter A of the Community Economic Development Act of 
1981 (42 U.S.C. 9805 et seq.); or 
(ii) owned in part by 1 or more community development 
corporations, if all other owners are either United States citi-
zens or small business concerns; or 
(F) a small business concern that is— 
(i) a small agricultural cooperative organized or incor-
porated in the United States; 
(ii) wholly owned by 1 or more small agricultural coopera-
tives organized or incorporated in the United States; or 
(iii) owned in part by 1 or more small agricultural coopera-
tives organized or incorporated in the United States, if all 
owners are small business concerns or United States citizens. 
(6) PROGRAM.—The term ‘‘program’’ means the HUBZone program. 
(7) QUALIFIED DISASTER AREA.— 
(A) IN
GENERAL.—Subject to subparagraph (B), the term 
‘‘qualified disaster area’’ means a census tract or nonmetropolitan 
county located in an area for which the President declares a major 
disaster under section 401 of the Robert T. Stafford Disaster Re-
lief and Emergency Assistance Act (42 U.S.C. 5170) or located in 
an area in which a catastrophic incident has occurred if the census 
tract or nonmetropolitan county ceased to be a qualified census 
tract or qualified nonmetropolitan county, as applicable, during 
the period beginning 5 years before the date on which the Presi-
dent declares the major disaster or the catastrophic incident oc-
curs and ending on the date that is 2 years after that date, except 
that the census tract or nonmetropolitan county shall be a quali-
fied disaster area only— 
(i) in the case of a major disaster declared by the Presi-
dent, during the 5-year period beginning on the date on which 
the President declares the major disaster for the area in 
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which the census tract or nonmetropolitan county, as applica-
ble, is located; and 
(ii) in the case of a catastrophic incident, during the 10- 
year period beginning on the date on which the catastrophic 
incident occurs in the area in which the census tract or non-
metropolitan county, as applicable, is located. 
(B) LIMITATION.—A qualified disaster area described in sub-
paragraph (A) shall be treated as a HUBZone for a period of not 
less than 8 years, beginning on the date on which the Adminis-
trator makes a final determination whether to implement the des-
ignations as a qualified census tract or qualified nonmetropolitan 
county in accordance with the results of the decennial census con-
ducted after the area was initially designated as a qualified dis-
aster area. 
(8) QUALIFIED HUBZONE SMALL BUSINESS CONCERN.—The term 
‘‘qualified HUBZone small business concern’’ means a small business 
concern— 
(A) that certifies in writing to the Administrator (or with re-
spect to which the Administrator otherwise determines, based on 
information submitted to the Administrator by the small business 
concern, or based on certification procedures established under 
section 253112 of this title) that— 
(i) it is a HUBZone small business concern— 
(I) under subparagraph (A), (B), (C), (D), (E), or (F) 
of paragraph (5), and its principal office is located in a 
HUBZone and not fewer than 35 percent of its employ-
ees reside in a HUBZone; 
(II) under subparagraph (A), (B), (C), (D), (E), or 
(F) of paragraph (5), that its principal office is located 
within a base closure area and that not fewer than 35 
percent of its employees reside in that base closure area 
or in another HUBZone; or 
(III) under paragraph (5)(C), and not fewer than 35 
percent of its employees engaged in performing a con-
tract awarded to the small business concern on the basis 
of a preference provided under the HUBZone program 
reside within any Indian reservation governed by 1 or 
more of the tribal government owners, or reside within 
any HUBZone adjoining any such Indian reservation; 
(ii) the small business concern will attempt to maintain the 
applicable employment percentage under clause (i) during the 
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performance of any contract awarded to the small business 
concern on the basis of a preference provided under section 
253103, 253104, or 253106 of this title; and 
(iii) with respect to any subcontract entered into by the 
small business concern under a contract awarded to the small 
business concern under this chapter, the small business con-
cern will ensure that the requirements of section 299107 of 
this title are satisfied; and 
(B) with respect to which no certification made or information 
provided by the small business concern under subparagraph (A) 
has been, in accordance with the procedures established under sec-
tion 253108 of this title— 
(i) successfully challenged by an interested party; or 
(i) otherwise determined by the Administrator to be materi-
ally false. 
(9) QUALIFIED NONMETROPOLITAN COUNTY.—The term ‘‘qualified 
nonmetropolitan county’’ means a county— 
(A) that was not located in a metropolitan statistical area (as 
defined in section 143(k)(2)(B) of the Internal Revenue Code of 
1986 (26 U.S.C. 143(k)(2)(B))) at the time of the most recent 
census taken for purposes of selecting qualified census tracts 
under section 42(d)(5)(B)(ii) of the Internal Revenue Code of 
1986 (26 U.S.C. 42(d)(5)(B)(ii)); and 
(B) in which— 
(i) the median household income is less than 80 percent of 
the nonmetropolitan State median household income, based 
on the most recent data available from the Bureau of the 
Census of the Department of Commerce; 
(ii) the unemployment rate is not less than 140 percent of 
the average unemployment rate for the United States or for 
the State in which the county is located, whichever is less, 
based on the most recent data available from the Secretary 
of Labor; or 
(iii) there is located a difficult development area, as des-
ignated by the Secretary of Housing and Urban Development 
in accordance with section 42(d)(5)(B)(iii) of the Internal 
Revenue Code of 1986 (26 U.S.C. 42(d)(5)(B)(iii)), within 
Alaska, Hawaii, or any territory or possession of the United 
States outside the 48 contiguous States. 
(10) REDESIGNATED AREA.— 
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(A) IN GENERAL.—Subject to subparagraph (B), the term ‘‘re-
designated area’’ means— 
(i) a census tract that was, but ceases to be, a qualified 
census tract; and 
(ii) a nonmetropolitan county that was, but ceases to be, 
a qualified nonmetropolitan county. 
(B) LIMITATION.—A census tract or nonmetropolitan county de-
scribed in subparagraph (A) shall cease to be a redesignated area 
on the later of— 
(i) the date on which the Bureau of the Census publicly re-
leases the 1st results from the 2010 decennial census; or 
(ii) 3 years after the date on which the census tract or non-
metropolitan county ceases to be a qualified census tract or 
qualified nonmetropolitan county. 
§ 253102. Establishment of HUBZone program 
There is established within SBA a program to be carried out by the Ad-
ministrator, to be known as the HUBZone program, to provide for Federal 
contracting assistance to qualified HUBZone small business concerns in ac-
cordance with this chapter. 
§ 253103. Sole source preference 
A contracting officer may award a sole source contract under the pro-
gram to a qualified HUBZone small business concern if— 
(1) the contracting officer determines that the qualified HUBZone 
small business concern is a responsible contractor with respect to per-
formance of the contract opportunity; 
(2) the contracting officer does not have a reasonable expectation 
that 2 or more qualified HUBZone small business concerns will submit 
offers for the contracting opportunity; 
(3) the anticipated award price of the contract (including options) 
will not exceed— 
(A) $5,000,000, in the case of a contract opportunity assigned 
a North American Industry Classification System code for manu-
facturing; or 
(B) $3,000,000, in the case of any other contract opportunity; 
and 
(4) in the estimation of the contracting officer, the contract award 
can be made at a fair and reasonable price. 
§ 253104. Setaside preference 
A contract opportunity may be awarded under the program on the basis 
of competition restricted to qualified HUBZone small business concerns if 
the contracting officer has a reasonable expectation that— 
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(1) not fewer than 2 qualified HUBZone small business concerns will 
submit offers; and 
(2) the award can be made at a fair market price. 
§ 253105. Appeal of decision not to award contract 
Not later than 5 days after the date on which the Administrator is noti-
fied of a decision by a contracting officer of a Federal agency not to award 
a contract opportunity under the program to a qualified HUBZone small 
business concern, the Administrator may notify the contracting officer of 
the intent to appeal the contracting officer’s decision, and within 15 days 
after that date the Administrator may file a written request for reconsider-
ation of the contracting officer’s decision with the head of the Federal agen-
cy. 
§ 253106. Price evaluation preference in full and open com-
petition 
(a) IN GENERAL.—Subject to subsection (b), in a case in which a con-
tract is to be awarded on the basis of full and open competition, the price 
offered by a qualified HUBZone small business concern shall be deemed to 
be lower than the price offered by another offeror (other than another small 
business concern) if the price offered by the qualified HUBZone small busi-
ness concern is not more than 10 percent higher than the price offered by 
the otherwise lowest, responsive, and responsible offeror. 
(b) AGRICULTURAL COMMODITIES.— 
(1) IN GENERAL.—In the case of a purchase by the Secretary of Ag-
riculture of agricultural commodities, the price evaluation preference 
shall be— 
(A) 10 percent for the portion of a contract to be awarded that 
is not greater than 25 percent of the total volume being procured 
for each agricultural commodity in a single invitation; 
(B) 5 percent for the portion of a contract to be awarded that 
is greater than 25 percent, but not greater than 40 percent, of the 
total volume being procured for each agricultural commodity in a 
single invitation; and 
(C) zero, for the portion of a contract to be awarded that is 
greater than 40 percent of the total volume being procured for 
each agricultural commodity in a single invitation. 
(2) TREATMENT OF PREFERENCE.—A contract awarded to a quali-
fied HUBZone small business concern under a preference described in 
paragraph (1) shall not be counted toward the fulfillment of any re-
quirement partially set aside for competition restricted to small busi-
ness concerns. 
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(3) INTERNATIONAL
FOOD
AID
EXPORT
OPERATIONS.—The price 
evaluation preference for a purchase of an agricultural commodity by 
the Secretary of Agriculture for export operations through an inter-
national food aid program administered by the Farm Service Agency 
shall be 5 percent on the 1st portion of a contract to be awarded that 
is not greater than 20 percent of the total volume of each agricultural 
commodity being procured in a single invitation. 
§ 253107. Relationship to other contracting preferences 
A procurement may not be made from a source on the basis of a pref-
erence under the program if the procurement would otherwise be made from 
a different source under— 
(1) section 4124 or 4125 of title 18; or 
(2) chapter 85 of title 41. 
§ 253108. Verification of eligibility 
(a) IN GENERAL.—In carrying out this chapter, the Administrator shall 
establish procedures relating to— 
(1) the filing, investigation, and disposition by the Administrator of 
any challenge to the eligibility of a small business concern to receive 
assistance under the program (including a challenge, filed by an inter-
ested party, relating to the veracity of a certification made or informa-
tion provided to the Administrator by a small business concern under 
section 253101(7) of this title); and 
(2) verification by the Administrator of the accuracy of any certifi-
cation made or information provided to the Administrator by a small 
business concern under section 253101(7) of this title. 
(b) EXAMINATIONS.—The procedures established under subsection (a) 
may provide for program examinations (including random program examina-
tions) by the Administrator of any small business concern making a certifi-
cation or providing information to the Administrator under section 
253101(7) of this title. 
(c) PROVISION OF DATA.—On the request of the Administrator, the Sec-
retary of Labor, the Administrator of the Federal Emergency Management 
Agency, the Secretary of Housing and Urban Development, and the Sec-
retary of the Interior (or the Assistant Secretary for Indian Affairs) shall 
promptly provide to the Administrator such information as the Adminis-
trator determines to be necessary to carry out this section. 
§ 253109. Mentor-prote´ge´ program 
The Administrator may establish a mentor-prote´ge´
program for 
HUBZone small business concerns modeled on the mentor-prote´ge´ program 
for small business concerns participating in the business development pro-
gram. 
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§ 253110. Wholesalers and retailers 
(a) IN GENERAL.—An otherwise responsible small business concern that 
is described in subsection (b) shall not be denied the opportunity to submit 
and have considered its offer for a procurement contract that has as its 
principal purpose the supply of a product to be let under this chapter solely 
because the small business concern is other than the manufacturer or proc-
essor of the product to be supplied under the contract. 
(b) REQUIREMENTS.—A small business concern referred to in subsection 
(a) is a small business concern that— 
(1) is primarily engaged in wholesale or retail trade; 
(2) is a small business concern under the numerical size standard 
for the North American Industry Classification System code assigned 
to the contract solicitation on which the offer is being made; 
(3) is a regular dealer (as defined under section 6510 of title 41) 
in the product to be offered the Government; and 
(4) represents that the small business concern will supply the prod-
uct of a domestic small business manufacturer or processor, unless a 
waiver of this paragraph is granted— 
(A) by the Administrator, after reviewing a determination by 
the contracting officer that no small business manufacturer or 
processor can reasonably be expected to offer a product meeting 
the specifications (including period for performance) required of 
an offeror by the solicitation; or 
(B) by the Administrator for a product (or class of products), 
after determining that no small business manufacturer or proc-
essor is available to participate in the Federal procurement mar-
ket. 
(c) LIMITATION.—This section does not apply to a contract that has as 
its principal purpose the acquisition of a service or construction. 
§ 253111. List of qualified HUBZone small business concerns 
The Administrator shall establish and maintain a list of qualified 
HUBZone small business concerns, which list, to the extent practicable— 
(1) after the Administrator makes the certification required by sec-
tion 253101(7)(A)(i) of this title regarding a qualified HUBZone small 
business 
concern 
and 
determines 
that 
subparagraph 
section 
253101(7)(A)(ii) of this title does not apply to that qualified HUBZone 
small business concern, shall include the name, address, and type of 
business with respect to each such small business concern; 
(2) shall be updated by the Administrator not less than annually; 
and 
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293 
(3) on request, shall be provided to any Federal agency or other enti-
ty. 
§ 253112. Regulations 
The Administrator shall by regulation establish procedures for the certifi-
cation of a small business concern as a qualified HUBZone small business 
concern. 
§ 253113. Penalties 
In addition to the penalties described in section 105104 of this title, a 
small business concern that is determined by the Administrator to have mis-
represented the status of that small business concern as a HUBZone small 
business concern for purposes of this section shall be subject to— 
(1) section 1001 of title 18; and 
(2) sections 3729 to 3733 of title 31. 
Chapter 
255—Small 
Business 
Concerns 
Owned and Controlled by Service-Dis-
abled Veterans 
Sec. 
255101.
Sole source preference. 
255102.
Setaside preference. 
255103.
Relationship to other contracting preferences. 
255104.
Provision of data. 
255105.
Verification of eligibility. 
255106.
Mentor-prote´ge´ program. 
255107.
Wholesalers and retailers. 
255108.
Penalties. 
§ 255101. Sole source preference 
A contracting officer may award a sole source contract to any small busi-
ness concern owned and controlled by service-disabled veterans if— 
(1) the contracting officer determines that the small business con-
cern owned and controlled by service-disabled veterans is a responsible 
contractor with respect to performance of the contract opportunity; 
(2) the contracting officer does not have a reasonable expectation 
that 2 or more small business concerns owned and controlled by serv-
ice-disabled veterans will submit offers for the contracting opportunity; 
(3) the anticipated award price of the contract (including options) 
will not exceed— 
(A) $5,000,000, in the case of a contract opportunity assigned 
a North American Industry Classification System code for manu-
facturing; or 
(B) $3,000,000, in the case of any other contract opportunity; 
and 
(4) in the estimation of the contracting officer, the contract award 
can be made at a fair and reasonable price. 
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§ 255102. Setaside preference 
A contracting officer may award a contract on the basis of competition 
restricted to small business concerns owned and controlled by service-dis-
abled veterans if the contracting officer has a reasonable expectation that— 
(1) not fewer than 2 small business concerns owned and controlled 
by service-disabled veterans will submit offers; and 
(2) the award can be made at a fair market price. 
§ 255103. Relationship to other contracting preferences 
A procurement may not be made from a source on the basis of a pref-
erence provided under section 255101 or 255102 of this title if the procure-
ment would otherwise be made from a different source under— 
(1) section 4124 or 4125 of title 18; or 
(2) chapter 85 of title 41. 
§ 255104. Provision of data 
On the request of the Administrator, the head of any Federal agency 
shall promptly provide to the Administrator such information as the Admin-
istrator determines to be necessary to carry out this chapter. 
§ 255105. Verification of eligibility 
(a) IN GENERAL.—In carrying out this chapter, the Administrator shall 
establish procedures relating to— 
(1) the filing, investigation, and disposition by the Administrator of 
any challenge to the eligibility of a small business concern to receive 
assistance under this chapter (including a challenge, filed by an inter-
ested party, relating to the veracity of a certification made or informa-
tion provided to the Administrator by a small business concern); and 
(2) verification by the Administrator of the accuracy of any certifi-
cation made or information provided to the Administrator by a small 
business concern. 
(b) EXAMINATIONS.—The procedures established under subsection (a) 
may provide for program examinations (including random program examina-
tions) by the Administrator of any small business concern making a certifi-
cation or providing information to the Administrator. 
§ 255106. Mentor-prote´ge´ program 
The Administrator may establish a mentor-prote´ge´ program for small 
business concerns owned and controlled by service-disabled veterans modeled 
on the mentor-prote´ge´ program for small business concerns participating in 
the business development program. 
§ 255107. Wholesalers and retailers 
(a) IN GENERAL.—An otherwise responsible small business concern that 
is described in subsection (b) shall not be denied the opportunity to submit 
and have considered its offer for a procurement contract that has as its 
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295 
principal purpose the supply of a product to be let under this chapter solely 
because the small business concern is other than the manufacturer or proc-
essor of the product to be supplied under the contract. 
(b) REQUIREMENTS.—A small business concern referred to in subsection 
(a) is a small business concern that— 
(1) is primarily engaged in wholesale or retail trade; 
(2) is a small business concern under the numerical size standard 
for the North American Industry Classification System code assigned 
to the contract solicitation on which the offer is being made; 
(3) is a regular dealer (as defined under section 6510 of title 41) 
in the product to be offered the Government; and 
(4) represents that the small business concern will supply the prod-
uct of a domestic small business manufacturer or processor, unless a 
waiver of this paragraph is granted— 
(A) by the Administrator, after reviewing a determination by 
the contracting officer that no small business manufacturer or 
processor can reasonably be expected to offer a product meeting 
the specifications (including period for performance) required of 
an offeror by the solicitation; or 
(B) by the Administrator for a product (or class of products), 
after determining that no small business manufacturer or proc-
essor is available to participate in the Federal procurement mar-
ket. 
(c) LIMITATION.—This subsection does not apply to a contract that has 
as its principal purpose the acquisition of a service or construction. 
§ 255108. Penalties 
In addition to the penalties described in section 105104 of this title, a 
small business concern that is determined by the Administrator to have mis-
represented the status of the small business concern as a small business 
concern owned and controlled by service-disabled veterans for purposes of 
this chapter shall be subject to— 
(1) section 1001 of title 18; and 
(2) sections 3729 to 3733 of title 31. 
Chapter 257—Small Business Concerns 
Owned and Controlled by Women 
Sec. 
257101.
Definition of small business concern owned and controlled by women. 
257102.
Restricted competition. 
257103.
Identification of industries. 
257104.
Provision of data. 
257105.
Verification of eligibility. 
257106.
Sole source contracts for economically disadvantaged small business concerns owned 
and controlled by women. 
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296 
257107.
Sole source contracts for small business concerns owned and controlled by women 
in substantially underrepresented industries. 
257108.
Mentor-prote´ge´ program. 
257109.
Wholesalers and retailers. 
257110.
Penalties. 
§ 257101. Definition of small business concern owned and 
controlled by women 
In this chapter, the term ‘‘small business concern owned and controlled 
by women’’ has the meaning given the term in section 101102 of this title, 
except that ownership shall be determined without regard to any community 
property law. 
§ 257102. Restricted competition 
(a) IN GENERAL.—A contracting officer may restrict competition for any 
contract for the procurement of a good or service by the Federal Govern-
ment to small business concerns owned and controlled by women if— 
(1) each of the small business concerns owned and controlled by 
women is not less than 51 percent owned by 1 or more women who 
are economically disadvantaged (for which purpose ownership shall be 
determined without regard to any community property law); 
(2) the contracting officer has a reasonable expectation that 2 or 
more small business concerns owned and controlled by economically dis-
advantaged women will submit offers for the contract; 
(3) the contract is for the procurement of a good or service with re-
spect to an industry identified by the Administrator under section 
257103 of this title; 
(4) in the estimation of the contracting officer, the contract award 
can be made at a fair and reasonable price; and 
(5) each of the small business concerns owned and controlled by 
women is certified by a Federal agency, a State government, the Ad-
ministrator, or a national certifying entity approved by the Adminis-
trator as a small business concern owned and controlled by women. 
(b) WAIVER.—The Administrator may waive subsection (a)(1) with re-
spect to a small business concern owned and controlled by women if the Ad-
ministrator determines that the small business concern owned and controlled 
by women is in an industry in which small business concerns owned and 
controlled by women are substantially underrepresented. 
§ 257103. Identification of industries 
The Administrator shall conduct a study to identify industries in which 
small business concerns owned and controlled by women are underrep-
resented with respect to Federal agency procurement contracting. 
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297 
§ 257104. Provision of data 
On the request of the Administrator, the head of a Federal agency shall 
promptly provide to the Administrator such information as the Adminis-
trator determines to be necessary to carry out this chapter. 
§ 257105. Verification of eligibility 
(a) IN GENERAL.—In carrying out this chapter, the Administrator shall 
establish procedures relating to— 
(1) the filing, investigation, and disposition by the Administrator of 
any challenge to the eligibility of a small business concern to receive 
assistance under this chapter (including a challenge, filed by an inter-
ested party, relating to the veracity of a certification made or informa-
tion provided to the Administrator by a small business concern under 
section 257102(a)(5) of this title); and 
(2) verification by the Administrator of the accuracy of any certifi-
cation made or information provided to the Administrator by a small 
business concern under section 257102(a)(5) of this title. 
(b) EXAMINATIONS.—The procedures established under subsection (a) 
may provide for program examinations (including random program examina-
tions) by the Administrator of any small business concern making a certifi-
cation or providing information to the Administrator under section 
257102(a)(5) of this title. 
§ 257106. Sole source contracts for economically disadvan-
taged small business concerns owned and con-
trolled by women 
A contracting officer may award a sole source contract to a small busi-
ness concern owned and controlled by women that is certified under section 
257102(a)(5) of this title if— 
(1)(A) the small business concern owned and controlled by women 
is determined to be a responsible contractor with respect to perform-
ance of the contract opportunity; and 
(B) the contracting officer does not have a reasonable expectation 
that more than 1 small business concern owned and controlled by 
women described in section 257102(a)(1) of this title will submit an 
offer; 
(2) the anticipated award price of the contract (including options) 
will not exceed— 
(A) $6,500,000, in the case of a contract opportunity assigned 
a North American Industry Classification System code for manu-
facturing; or 
(B) $4,000,000, in the case of any other contract opportunity; 
and 
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298 
(3) in the estimation of the contracting officer, the contract award 
can be made at a fair and reasonable price. 
§ 257107. Sole source contracts for small business concerns 
owned and controlled by women in substantially 
underrepresented industries 
A contracting officer may award a sole source contract to a small busi-
ness concern owned and controlled by women that is certified under section 
257102(a)(5) of this title if— 
(1) the small business concern owned and controlled by women is in 
an industry in which small business concerns owned and controlled by 
women are substantially underrepresented (as determined by the Ad-
ministrator under section 257102(b) of this title); 
(2)(A) the small business concern owned and controlled by women 
is determined to be a responsible contractor with respect to perform-
ance of the contract opportunity; and 
(B) the contracting officer does not have a reasonable expectation 
that more than 1 small business concern owned and controlled by 
women that has received a waiver under section 257102(b) of this title 
will submit an offer; 
(3) the anticipated award price of the contract (including options) 
will not exceed— 
(A) $6,500,000, in the case of a contract opportunity assigned 
a North American Industry Classification System code for manu-
facturing; or 
(B) $4,000,000, in the case of any other contract opportunity; 
and 
(4) in the estimation of the contracting officer, the contract award 
can be made at a fair and reasonable price. 
§ 257108. Mentor-prote´ge´ program 
The Administrator may establish a mentor-prote´ge´ program for small 
business concerns owned and controlled by women modeled on the mentor- 
prote´ge´ program for small business concerns participating in the business 
development program. 
§ 257109. Wholesalers and retailers 
(a) IN GENERAL.—An otherwise responsible small business concern that 
is described in subsection (b) shall not be denied the opportunity to submit 
and have considered its offer for a procurement contract that has as its 
principal purpose the supply of a product to be let under this chapter solely 
because the small business concern is other than the manufacturer or proc-
essor of the product to be supplied under the contract. 
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299 
(b) REQUIREMENTS.—A small business concern referred to in subsection 
(a) is a small business concern that— 
(1) is primarily engaged in wholesale or retail trade; 
(2) is a small business concern under the numerical size standard 
for the North American Industry Classification System code assigned 
to the contract solicitation on which the offer is being made; 
(3) is a regular dealer (as defined under section 6510 of title 41) 
in the product to be offered the Government; and 
(4) represents that the small business concern will supply the prod-
uct of a domestic small business manufacturer or processor, unless a 
waiver of this paragraph is granted— 
(A) by the Administrator, after reviewing a determination by 
the contracting officer that no small business manufacturer or 
processor can reasonably be expected to offer a product meeting 
the specifications (including period for performance) required of 
an offeror by the solicitation; or 
(B) by the Administrator for a product (or class of products), 
after determining that no small business manufacturer or proc-
essor is available to participate in the Federal procurement mar-
ket. 
(c) LIMITATION.—This section does not apply to a contract that has as 
its principal purpose the acquisition of a service or construction. 
§ 257110. Penalties 
In addition to the penalties described in section 105102 of this title, a 
small business concern that is determined by the Administrator to have mis-
represented the status of the small business concern as a small business 
concern owned and controlled by women for purposes of this chapter shall 
be subject to— 
(1) sections 1001 and 2731 of title 18; and 
(2) sections 3729 through 3733 of title 31. 
Division I—Research and Development 
Chapter 261—General Provisions 
Sec. 
261101.
Definitions. 
261102.
Assistance to small business concerns. 
261103.
Federal agency cooperation. 
261104.
Joint research and development programs. 
§ 261101. Definitions 
In this division: 
(1) COMMERCIAL APPLICATION.—The term ‘‘commercial application’’ 
includes testing and evaluation of products, services, or technologies for 
use in technical or weapons systems. 
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(2) COMMERCIALIZATION.—The term ‘‘commercialization’’ means— 
(A) the process of developing a product, process, technology, or 
service; and 
(B) the production and delivery (whether by the originating 
party or by others) of a product, process, technology, or service 
for sale to or use by the Federal Government or a commercial 
market. 
(3) COOPERATIVE RESEARCH AND DEVELOPMENT.—The term ‘‘coop-
erative research and development’’ means research or research and de-
velopment conducted jointly by a small business concern and a research 
institution in which not less than 40 percent of the work is performed 
by the small business concern and not less than 30 percent of the work 
is performed by the research institution. 
(4) EXTRAMURAL BUDGET.— 
(A) IN GENERAL.—The term ‘‘extramural budget’’, in reference 
to the extramural budget of a Federal agency, means the sum of 
the total obligations of the Federal agency for research and re-
search and development activities minus amounts obligated for re-
search or research and development by employees of the Federal 
agency in or through Government-owned, Government-operated fa-
cilities. 
(B) APPLICABILITY TO DEPARTMENT OF ENERGY.—As applied 
with respect to the Department of Energy, the term ‘‘extramural 
budget’’ does not include amounts obligated for atomic energy de-
fense programs solely for weapons activities or for naval reactor 
programs. 
(C) APPLICABILITY TO AGENCY FOR INTERNATIONAL DEVELOP-
MENT.—As applied to the Agency for International Development, 
the term ‘‘extramural budget’’ does not include amounts obligated 
solely for general institutional support of international research 
centers or for grants to foreign countries. 
(5) FEDERAL AGENCY.— 
(A) IN GENERAL.—The term ‘‘Federal agency’’ means— 
(i) an executive agency (as defined in section 105 of title 
5); or 
(ii) a military department. 
(B) EXCLUSION.—The term ‘‘Federal agency’’ does not include 
an agency within the Intelligence Community (as defined in sec-
tion 3.5(h) of Executive Order 12333 (50 U.S.C. 3001 note) (or 
any successor Executive order)). 
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(6) FEDERALLY FUNDED RESEARCH AND DEVELOPMENT CENTER.— 
The term ‘‘Federally funded research and development center’’ means 
a federally funded research and development center identified by the 
National Scientific Foundation in accordance with the Governmentwide 
Federal Acquisition Regulation (or any successor regulation). 
(7) FUNDING AGREEMENT.—The term ‘‘funding agreement’’ means 
a contract, grant, or cooperative agreement entered into between a 
Federal agency and a small business concern for the performance of 
experimental, developmental, or research work funded in whole or in 
part by the Federal Government. 
(8) PHASE I.—The term ‘‘phase I’’— 
(A) with respect to an SBIR program, means the phase de-
scribed in paragraph (17)(A); and 
(B) with respect to an STTR program, means the phase de-
scribed in paragraph (18)(A). 
(9) PHASE II.—The term ‘‘phase II’’— 
(A) with respect to an SBIR program, means the phase de-
scribed in paragraph (17)(B); and 
(B) with respect to an STTR program, means the phase de-
scribed in paragraph (18)(B). 
(10) PHASE III.—The term ‘‘phase III’’— 
(A) with respect to an SBIR program, means the phase de-
scribed in paragraph (17)(C); and 
(B) with respect to an STTR program, means the phase de-
scribed in paragraph (18)(C). 
(11) PHASE III AGREEMENT.—The term ‘‘phase III agreement’’ 
means a follow-on, non-SBIR program-funded contract or non-STTR 
program-funded contract described in paragraph (17)(C) or (18)(C). 
(12) RESEARCH INSTITUTION.— 
(A) IN GENERAL.—The term ‘‘research institution’’ means a 
nonprofit institution (as defined in section 4 of the Stevenson- 
Wydler Technology Innovation Act of 1980 (15 U.S.C. 3703)). 
(B) INCLUSION.—The term ‘‘research institution’’ includes a 
federally funded research and development center. 
(13) RESEARCH OR RESEARCH AND DEVELOPMENT.—The term ‘‘re-
search or research and development’’ means an activity that is— 
(A) a systematic, intensive study directed toward greater knowl-
edge or understanding of the subject studied; 
(B) a systematic study directed specifically toward applying new 
knowledge to meet a recognized need; or 
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(C) a systematic application of knowledge toward the production 
of useful materials, devices, and systems or methods, including de-
sign, development, and improvement of prototypes and new proc-
esses to meet specific requirements. 
(14) SBIR AGENCY.—The term ‘‘SBIR agency’’ means a Federal 
agency that is required by section 263101 of this title to have an SBIR 
program. 
(15) SBIR PARTICIPATING AGENCY.—The term ‘‘SBIR participating 
agency’’ means— 
(A) an SBIR agency; and 
(B) any other Federal agency that participates in the SBIR 
program. 
(16) SBIR PROGRAM.—The term ‘‘SBIR program’’ means a small 
business innovation research program. 
(17) SMALL BUSINESS INNOVATION RESEARCH PROGRAM.—The term 
‘‘small business innovation research program’’ means a program under 
which a portion of a Federal agency’s research or research and develop-
ment effort is reserved for award to small business concerns through 
a uniform process having— 
(A) a 1st phase for determining, insofar as possible, the sci-
entific and technical merit and feasibility of ideas that appear to 
have commercial potential, as described in subparagraph (B), sub-
mitted pursuant to SBIR program solicitations; 
(B) a 2d phase, to further develop proposals that meet par-
ticular program needs— 
(i) in which awards (including awards for testing and eval-
uation of products, services, or technologies for use in tech-
nical or weapons systems) shall be made based on the sci-
entific and technical merit and feasibility of the proposals, as 
evidenced by the 1st phase, considering, among other things, 
the proposal’s commercial potential, as evidenced by— 
(I) the small business concern’s record of successfully 
commercializing SBIR program research or other re-
search; 
(II) the existence of phase II funding commitments 
from private sector or non-SBIR program funding 
sources; 
(III) the existence of phase III follow-on commitments 
for the subject of the research; and 
(IV) the presence of other indicators of the commercial 
potential of the idea; and 
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(ii) that does not include any invitation, prescreening, or 
preselection process for eligibility; and 
(C) where appropriate, a 3d phase for work that derives from, 
extends, or completes efforts made under prior funding agree-
ments under the SBIR program— 
(i) in which commercial applications of SBIR program- 
funded research or research and development are funded— 
(I) by non-Federal sources of capital; or 
(II) for products or services intended for use by the 
Federal Government, by follow-on non-SBIR program 
Federal funding awards; or 
(ii) for which awards from non-SBIR program Federal 
funding sources are used for the continuation of research or 
research and development that has been competitively selected 
using peer review or merit-based selection procedures. 
(18) SMALL
BUSINESS
TECHNOLOGY
TRANSFER
PROGRAM.—The 
term ‘‘small business technology transfer program’’ means a program 
under which a portion of a Federal agency’s extramural research or re-
search and development effort is reserved for award to small business 
concerns for cooperative research and development through a uniform 
process having— 
(A) a 1st phase, to determine, to the extent possible, the sci-
entific, technical, and commercial merit and feasibility of ideas 
submitted pursuant to STTR program solicitations; 
(B) a 2d phase, to further develop proposed ideas to meet par-
ticular program needs— 
(i) in which awards (including awards for testing and eval-
uation of products, services, or technologies for use in tech-
nical or weapons systems) shall be made based on the sci-
entific, technical, and commercial merit and feasibility of the 
idea, as evidenced by the 1st phase and by other relevant in-
formation; and 
(ii) that does not include any invitation, prescreening, or 
preselection process for eligibility; and 
(C) where appropriate, a 3d phase for work that derives from, 
extends, or completes efforts made under prior funding agree-
ments under the STTR program— 
(i) in which commercial applications of STTR program- 
funded research or research and development are funded— 
(I) by non-Federal sources of capital; or 
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304 
(II) for products or services intended for use by the 
Federal Government, by follow-on non-STTR program 
Federal funding awards; and 
(ii) for which awards from non-STTR program Federal 
funding sources are used for the continuation of research or 
research and development that has been competitively selected 
using peer review or scientific review criteria. 
(19) STTR AGENCY.—The term ‘‘STTR agency’’ means a Federal 
agency that is required by section 263201 of this title to have an 
STTR program. 
(20) STTR PARTICIPATING
AGENCY.—The term ‘‘STTR partici-
pating agency’’ means— 
(A) an STTR agency; and 
(B) any other Federal agency that participates in the STTR 
program. 
(21) STTR PROGRAM.—The term ‘‘STTR program’’ means a small 
business technology transfer program. 
§ 261102. Assistance to small business concerns 
The Administrator shall— 
(1) assist small business concerns in obtaining Government contracts 
for research and development; 
(2) assist small business concerns in obtaining the benefits of re-
search and development performed under Government contracts or at 
Government expense; 
(3) provide technical assistance to small business concerns to accom-
plish the purposes of this division; 
(4) develop and maintain a source file and an information program 
to assure each qualified and interested small business concern the op-
portunity to participate in Federal agency SBIR programs and STTR 
programs; 
(5) coordinate with participating Federal agencies a schedule for re-
lease of SBIR program and STTR program solicitations, and prepare 
a master release schedule so as to maximize the opportunity of small 
business concerns to respond to solicitations; 
(6) independently survey and monitor the operation of SBIR pro-
grams and STTR programs within participating Federal agencies; 
(7) provide for and fully implement the tenets of Executive Order 
13329 (Encouraging Innovation in Manufacturing); and 
(8) coordinate the implementation of electronic databases at each of 
the Federal agencies participating in the SBIR program or STTR pro-
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gram, including the technical ability of the participating agencies to 
share data electronically. 
§ 261103. Federal agency cooperation 
The Administrator may consult and cooperate with, and make studies and 
recommendations to, all Federal agencies and the Government Account-
ability Office, and a Federal agency or the Government Accountability Of-
fice shall cooperate with the Administrator in order to carry out and to ac-
complish the purposes of this division. 
§ 261104. Joint research and development programs 
(a) IN GENERAL.—The Administrator may consult with representatives 
of small business concerns with a view to assisting and encouraging small 
business concerns in undertaking joint programs for research and develop-
ment carried out through such corporate or other mechanism as may be 
most appropriate for the purpose. 
(b) PURPOSES.—A joint program under subsection (a) may, among other 
things, include the purposes of— 
(1) constructing, acquiring, or establishing a laboratory or other fa-
cility for the conduct of research; 
(2) undertaking and utilizing applied research; 
(3) collecting research information related to a particular industry 
and disseminating the information to participating members; 
(4) conducting applied research on a protected, proprietary, and con-
tractual basis with member or nonmember concerns, Federal agencies, 
the Government Accountability Office, and others; 
(5) prosecuting applications for patents and rendering patent serv-
ices for participating members; and 
(6) negotiating and granting licenses under patents held under the 
joint program and establishing corporations designed to exploit par-
ticular patents obtained by the corporations. 
(c) APPROVAL OF AGREEMENTS.—After consultation with the Attorney 
General and the Chairman of the Federal Trade Commission, and with the 
prior written approval of the Attorney General, the Administrator may ap-
prove an agreement between small business concerns providing for a joint 
program of research and development if the Administrator determines that 
the joint program proposed will maintain and strengthen the free enterprise 
system and the economy of the Nation. 
(d) WITHDRAWAL OF APPROVAL.—The Administrator or the Attorney 
General may at any time withdraw approval of the agreement and the joint 
program of research and development covered by the agreement if the Ad-
ministrator or Attorney General determines that the agreement or the joint 
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program is no longer in the best interests of the competitive free enterprise 
system and the economy of the Nation. 
(e) PUBLICATION IN FEDERAL REGISTER.—A copy of the following shall 
be published in the Federal Register: 
(1) An approval under subsection (c) of an agreement between small 
business concerns providing for a joint program of research and devel-
opment and an accompanying determination by the Administrator that 
the joint program proposed will maintain and strengthen the free enter-
prise system and the economy of the Nation. 
(2) A withdrawal of approval of a joint agreement and the joint pro-
gram of research and development covered by the agreement and an 
accompanying determination by the Administrator or Attorney General 
that the agreement or the joint program is no longer in the best inter-
ests of the competitive free enterprise system and the economy of the 
Nation. 
(3) A modification of an approval described in paragraph (1). 
(f) NONDELEGABILITY.—The authority of the Administrator under this 
section shall not be delegated. 
(g) NO VIOLATION OF ANTITRUST LAWS OR FEDERAL TRADE COMMIS-
SION ACT.— 
(1) IN GENERAL.—Subject to paragraph (2), no act or omission to 
act pursuant to and within the scope of a joint program for research 
and development under an agreement approved by the Administrator 
under this section shall be within the prohibitions of the antitrust laws 
or the Federal Trade Commission Act (15 U.S.C. 41 et seq.). 
(2) WITHDRAWAL OF APPROVAL.—On publication in the Federal 
Register of the notice of withdrawal of approval of an agreement grant-
ed under this section, by the Administrator or by the Attorney General, 
this section shall not apply to any subsequent act or omission to act 
by reason of the agreement or the approval. 
Chapter 263—SBIR Programs and STTR 
Programs 
Subchapter I—SBIR Programs 
Sec. 
263101.
Required expenditure amounts. 
263102.
Administration by Federal agencies. 
263103.
Funding agreement goals. 
263104.
Policy directives. 
263105.
Coordination of technology development programs. 
263106.
Purchase of American-made equipment and products. 
263107.
Use of Department of Agriculture extramural budget funds. 
263108.
Phase flexibility. 
263109.
Participation of small business concerns that are majority-owned by venture capital 
operating companies, hedge funds, or private equity firms in the SBIR program. 
263110.
Assistance for administrative, oversight, and contract processing costs. 
263111.
Reports by Federal agencies. 
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307 
263112.
Termination. 
Subchapter II—STTR Programs 
263201.
Required expenditure amounts. 
263202.
Administration by Federal agencies. 
263203.
Policy directive. 
263204.
Model agreement for intellectual property rights. 
263205.
Phase 0 proof of concept partnership pilot program. 
Subchapter III—Provisions Relating to Both SBIR Programs and STTR 
Programs 
263301.
Database. 
263302.
Phase III agreements. 
263303.
Inclusion of SBIR program and STTR program information in strategic plans. 
263304.
Reduction of paperwork and compliance burden. 
263305.
FAST program. 
263306.
Innovation in energy efficiency. 
263307.
Competitive selection procedures. 
263308.
Award amounts in excess of guidelines. 
263309.
Subsequent phase II awards. 
263310.
Collaboration with Federal laboratories and research and development centers. 
263311.
Sequential SBIR awards and STTR awards for continued work on a project 
263312.
Prevention of duplicative awards. 
263313.
Discretionary technical assistance. 
263314.
Commercialization readiness programs. 
263315.
Timing of release of funding. 
263316.
Reporting on timing of final decisions on proposals and releases of funding. 
263317.
Release of contact information to economic development organizations. 
263318.
Prevention of fraud, waste, and abuse. 
263319.
Competitive selection procedures. 
263320.
Limitation on pilot programs. 
263321.
Minimum standards for participation. 
263322.
Publication of information relating to notice of and application for SBIR awards and 
STTR awards. 
Subchapter I—SBIR Programs 
§ 263101. Required expenditure amounts 
(a) SBIR PROGRAM BUDGET.—Except as provided in subsection (b)(2), 
a Federal agency that has an extramural budget for research or research 
and development in excess of $100,000,000 for any fiscal year shall expend 
with small business concerns, specifically in connection with an SBIR pro-
gram that meets the requirements of this division (including policy direc-
tives under section 263104 of this title)— 
(1) not less than 2.7 percent of the extramural budget in fiscal year 
2013; 
(2) not less than 2.8 percent of the extramural budget in fiscal year 
2014; 
(3) not less than 2.9 percent of the extramural budget in fiscal year 
2015; 
(4) not less than 3.0 percent of the extramural budget in fiscal year 
2016; and 
(5) not less than 3.2 percent of the extramural budget in fiscal year 
2017 and each fiscal year thereafter. 
(b) LIMITATIONS.—An SBIR agency shall not— 
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