(B)
whether
companies
who
can
dem-
onstrate project feasibility, but who have not re-
ceived a first phase award, should be eligible for
second phase awards, and the potential impacts
of such awards on the competitive selection
process of the program;
(C)
whether
the
Federal
Government
should be permitted to recoup some or all of its
expenses if a controlling interest in a company
receiving an SBIR award is sold to a foreign
company or to a company which is not a small
business concern;
(D) how to increase the use by the Federal
Government in its programs and procurements
of technology-oriented small businesses; and
(E) improvements to the SBIR program.
(b) REPORT.—Not later than 4 years after the date
of the enactment of this Act, the heads of agencies enter-
ing into an agreement under this section shall coopera-
tively transmit to the Committee on Science and the Com-
mittee on Small Business of the House of Representatives,
and to the Committee on Small Business of the Senate,
a report including the results of the study conducted under
subsection (a)(1) and recommendations made under sub-
section (a)(2).
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Small Business Innovation Research Program Reauthor-
ization Act of 2000’’.
(b) TABLE OF CONTENTS.—The table of contents for
this Act is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. Findings.
Sec. 3. Extension of SBIR program.
Sec. 4. Third phase assistance.
Sec. 5. Rights to data.
Sec. 6. Report on programs for annual performance plan.
Sec. 7. Collection, reporting, and maintenance of information.
Sec. 8. Federal agency expenditures for the SBIR program.
Sec. 9. Federal and State technology partnership program.
Sec. 10. Mentoring Networks.
SEC. 2. FINDINGS.
Congress finds that—
(1) the small business innovation research pro-
gram established under the Small Business Innova-
tion Development Act of 1982, and reauthorized by
the Small Business Research and Development En-
hancement Act of 1992 (referred to in this section as
‘‘SBIR’’ or the ‘‘SBIR program’’), is highly successful
in involving small business concerns in federally
funded research and development;
(2) the SBIR program made the cost-effective
and unique research and development capabilities
possessed by the small business concerns of this Na-
tion available to Federal departments and agencies;
(3) the innovative goods and services developed
by small business concerns that participated in the
SBIR program have produced innovations of critical
importance in a wide variety of high-technology
fields, including biology, medicine, education, elec-
tronics, information technology, materials, and de-
fense;
(4) the SBIR program is a catalyst in the pro-
motion of research and development, the commer-
cialization of innovative technology, the development
of new products and services, the attraction of private
investment, and the continued excellence of the high-
technology industries of this Nation; and
(5) the continuation of the SBIR program will—
(A) provide expanded opportunities for one
of the vital resources of the Nation, its small
business concerns;
(B) foster invention, research, and tech-
nology;
(C) create jobs; and
(D) increase economic growth and the com-
petitiveness of this Nation in international mar-
kets.
SEC. 3. EXTENSION OF SBIR PROGRAM.
Section 9(m) of the Small Business Act (15 U.S.C.
638(m)) is amended to read as follows:
‘‘(m) TERMINATION.—The authorization to carry out
the Small Business Innovation Research Program estab-
lished under this section shall terminate on September 30,
2010.’’.
SEC. 4. THIRD PHASE ASSISTANCE.
Section 9(e)(4)(C)(i) of the Small Business Act (15
U.S.C. 638(e)(4)(C)(i)) is amended by striking ‘‘; and’’ and
inserting ‘‘; or’’.
SEC. 5. RIGHTS TO DATA.
Section 9(j) of the Small Business Act (15 U.S.C.
638(j)) is amended by adding at the end the following:
‘‘(3) ADDITIONAL MODIFICATIONS.—Not later than 120
days after the date of enactment of the Small Business In-
novation Research Program Reauthorization Act of 2000,
the Administrator shall modify the policy directives issued
under this subsection to clarify that the rights provided for
under paragraph (2)(A) apply to all Federal funding
awards, including—
‘‘(A) the first phase (as described in subsection
(e)(4)(A));
‘‘(B) the second phase (as described in subsection
(e)(4)(B)); and
‘‘(C) the third phase (as described in subsection
(e)(4)(C)).’’.
SEC. 6. REPORT ON PROGRAMS FOR ANNUAL PERFORM-
ANCE PLAN.
Section 9(o)(8) of the Small Business Act (15 U.S.C.
638(o)(8)) is amended—
(1) by striking ‘‘its STTR program’’ and insert-
ing ‘‘the SBIR and STTR programs of the agency’’;
and
(2) by inserting before the semicolon ‘‘, and to
the Administrator’’.
SEC. 7. COLLECTION, REPORTING, AND MAINTENANCE OF
INFORMATION.
(a) COLLECTION.—Section 9(g) of the Small Business
Act (15 U.S.C. 638(g)) is amended—
(1) in paragraph (7), by striking ‘‘and’’ at the
end;
(2) in paragraph (8), by striking the period at
the end and inserting ‘‘; and’’; and
(3) by adding at the end the following:
‘‘(9) collect, and maintain in a common format,
such information from awardees as is necessary to as-
sess the SBIR program, including information nec-
essary to maintain the database described in sub-
section (k).’’.
(b) REPORT TO CONGRESS.—Section 9(b)(7) of the
Small Business Act (15 U.S.C. 638(b)(7)) is amended by
inserting before the period at the end the following: ‘‘, in-
cluding the information collected under subsections (g)(9)
and (o)(9) and a description of the extent to which Federal
agencies are providing in a timely manner information
needed to maintain the database described in subsection
(k)’’.
(c) PUBLIC DATABASE.—Section 9(k) of the Small
Business Act (15 U.S.C. 638(k)) is amended to read as fol-
lows:
‘‘(k) PUBLIC DATABASE.—Not later than 180 days
after the date of enactment of the Small Business Innova-
tion Research Program Reauthorization Act of 2000, the
Administrator shall develop, maintain, and make available
to the public a searchable, up-to-date, electronic database
that includes—
‘‘(1) the name, size, location, and an identifying
number assigned by the Administrator, of each small
business concern that has received a first phase or sec-
ond phase SBIR award from a Federal agency;
‘‘(2) a description of each first phase or second
phase SBIR award received by that small business
concern, including—
comptroller of that Federal agency shall submit
to the Administrator a report, which shall in-
clude a description of the methodology used for
calculating the amount of the extramural budget
of that Federal agency (as defined in subsection
(e)(1)).
‘‘(B) 
ADMINISTRATOR’S
ANALYSIS.—The
Administrator shall include an analysis of the
methodology received from each Federal agency
referred to in subparagraph (A) in the report re-
quired by subsection (b)(7).’’.
SEC. 9. FEDERAL AND STATE TECHNOLOGY PARTNERSHIP
PROGRAM.
(a) FINDINGS.—Congress finds that—
(1) programs to foster economic development
among small high-technology firms vary widely
among the States;
(2) States that do not aggressively support the
development of small high-technology firms, including
participation by small business concerns in the Small
Business Innovation Research Program (referred to in
this section as ‘‘SBIR’’ or the ‘‘SBIR program’’), are
at a competitive disadvantage in establishing a busi-
ness climate that is conducive to technology develop-
ment; and
(3) building stronger national, State, and local
support for science and technology research in these
disadvantaged States will expand economic opportu-
nities in the United States, create jobs, and increase
the competitiveness of the United States in the world
market.
(b) FEDERAL AND STATE TECHNOLOGY PARTNERSHIP
PROGRAM.—The Small Business Act (15 U.S.C. 631 et seq.)
is amended—
(1) by redesignating section 34 as section 36;
and
(2) by inserting after section 33 the following:
‘‘SEC. 34. FEDERAL AND STATE TECHNOLOGY PARTNER-
SHIP PROGRAM.
‘‘(a) DEFINITIONS.—In this section—
‘‘(1) the term ‘applicant’ means an entity, orga-
nization, or individual that submits a proposal for an
award or a cooperative agreement under this section;
‘‘(2) the terms ‘business advice and counseling’,
‘mentor’, and ‘Mentoring Network’ have the same
meanings as in section 35(b);
‘‘(3) the term ‘recipient’ means a person that re-
ceives an award or becomes party to a cooperative
agreement under this section;
‘‘(4) the term ‘SBIR program’ has the same
meaning as in section 9(e)(4);
‘‘(5) the term ‘State’ means any of the 50 States
of the United States, the District of Columbia, and
Puerto Rico; and
‘‘(6) the term ‘STTR program’ has the same
meaning as in section 9(e)(6).
‘‘(b) ESTABLISHMENT OF PROGRAM.—The Adminis-
trator shall establish a program to be known as the Federal
and State Technology Partnership Program (referred to in
this section as ‘FAST’ ), the purpose of which shall be to
strengthen the technological competitiveness of small busi-
ness concerns in the States.
‘‘(c) GRANTS AND COOPERATIVE AGREEMENTS.—
‘‘(1) JOINT REVIEW.—In carrying out the FAST
program under this section, the Administrator and
the SBIR program managers at the National Science
Foundation and the Department of Defense shall
jointly review proposals submitted by applicants and
may make awards or enter into cooperative agree-
ments under this section based on the factors for con-
sideration set forth in paragraph (2), in order to en-
hance or develop in a State—
‘‘(A) technology research and development
by small business concerns;
‘‘(B) technology transfer from university re-
search to technology-based small business con-
cerns;
‘‘(C) technology deployment and diffusion
benefiting small business concerns;
‘‘(D) the technological capabilities of small
business concerns through the establishment or
operation of consortia comprised of entities, or-
ganizations, or individuals, including—
‘‘(i) State and local development agen-
cies and entities;
‘‘(ii) representatives of technology-
based small business concerns;
‘‘(iii) industries and emerging compa-
nies;
‘‘(iv) universities; and
‘‘(v) small business development cen-
ters; and
‘‘(E) outreach, financial support, and tech-
nical assistance to technology-based small busi-
ness concerns interested in participating in the
SBIR program, including initiatives—
‘‘(i) to make grants or loans to compa-
nies to pay a portion or all of the cost of
developing SBIR proposals;
‘‘(ii) to establish or operate a Men-
toring Network within the FAST program
to provide business advice and counseling
that will assist small business concerns that
have been identified by FAST program par-
ticipants, program managers of partici-
pating SBIR agencies, the Administration,
or other entities that are knowledgeable
about the SBIR and STTR programs as
good candidates for the SBIR and STTR
programs, and that would benefit from
mentoring, in accordance with section 35;
‘‘(iii) to create or participate in a
training program for individuals providing
SBIR outreach and assistance at the State
and local levels; and
‘‘(iv) to encourage the commercializa-
tion of technology developed through SBIR
program funding.
‘‘(2) SELECTION CONSIDERATIONS.—In making
awards or entering into cooperative agreements under
this section, the Administrator and the SBIR pro-
gram managers referred to in paragraph (1)—
‘‘(A) may only consider proposals by appli-
cants that intend to use a portion of the Federal
assistance provided under this section to provide
outreach, financial support, or technical assist-
ance to technology-based small business concerns
participating in or interested in participating
in the SBIR program; and
‘‘(B) shall consider, at a minimum—
‘‘(i) whether—
‘‘(I) the applicant has dem-
onstrated that the assistance to be pro-
vided would address unmet needs of
small business concerns in the commu-
nity; and
‘‘(II) it is important to use Fed-
eral funding for the proposed activities;
‘‘(ii) whether the applicant has dem-
onstrated that a need exists to increase the
number and success of small high-technology
businesses in the State, as measured by the
number of first phase and second phase
SBIR awards that have historically been re-
ceived by small business concerns in the
State;
‘‘(iii) whether the projected costs of the
proposed activities are reasonable;
‘‘(iv) whether the proposal integrates
and coordinates the proposed activities with
other State and local programs assisting
small high-technology firms in the State;
and
‘‘(v) the manner in which the appli-
cant will measure the results of the activi-
ties to be conducted.
‘‘(3) PROPOSAL LIMIT.—Not more than 1 pro-
posal may be submitted for inclusion in the FAST
program under this section to provide services in any
one State in any fiscal year.
‘‘(4) PROCESS.—Proposals and applications for
assistance under this section shall be in such form
and subject to such procedures as the Administrator
shall establish.
‘‘(d) COOPERATION AND COORDINATION.—In carrying
out the FAST program under this section, the Adminis-
trator shall cooperate and coordinate with—
‘‘(1) Federal agencies required by section 9 to
have an SBIR program; and
‘‘(2) entities, organizations, and individuals ac-
tively engaged in enhancing or developing the techno-
logical capabilities of small business concerns,
including—
‘‘(A) State and local development agencies
and entities;
‘‘(B) State committees established under the
Experimental Program to Stimulate Competitive
Research of the National Science Foundation (as
established under section 113 of the National
Science Foundation Authorization Act of 1988
(42 U.S.C. 1862g)), to the extent that such com-
mittees exist in the States;
‘‘(C) State science and technology councils,
to the extent that such councils exist in the
States; and
‘‘(D) representatives of technology-based
small business concerns.
‘‘(e) ADMINISTRATIVE REQUIREMENTS.—
‘‘(1) COMPETITIVE BASIS.—Awards and coopera-
tive agreements under this section shall be made or
entered into, as applicable, on a competitive basis.
‘‘(2) MATCHING REQUIREMENTS.—
‘‘(A) IN GENERAL.—The non-Federal share
of the cost of an activity (other than a planning
activity) carried out using an award or under a
cooperative agreement under this section shall
be—
‘‘(i) 50 cents for each Federal dollar,
in the case of a recipient that will serve
small business concerns located in one of the
18 States receiving the fewest SBIR first
phase awards (as described in section
9(e)(4)(A));
‘‘(ii) 1 dollar for each Federal dollar,
in the case of a recipient that will serve
small business concerns located in one of the
16 States receiving the greatest number of
such SBIR first phase awards; and
‘‘(iii) 75 cents for each Federal dollar,
in the case of a recipient that will serve
small business concerns located in a State
that is not described in clause (i) or (ii)
that is receiving such SBIR first phase
awards.
‘‘(B) TYPES OF FUNDING.—The non-Federal
share of the cost of an activity carried out by a
recipient shall be comprised of not less than 50
percent cash and not more than 50 percent of in-
direct costs and in-kind contributions, except
that no such costs or contributions may be de-
rived from funds from any other Federal pro-
gram.
‘‘(C) RANKINGS.—For purposes of subpara-
graph (A), the Administrator shall reevaluate the
ranking of a State once every 2 fiscal years, be-
ginning with fiscal year 2001, based on the most
recent statistics compiled by the Administrator.
‘‘(3) DURATION.—Awards may be made or coop-
erative agreements entered into under this section for
multiple years, not to exceed 3 years in total.
‘‘(f) REPORTS.—
‘‘(1) INITIAL REPORT.—Not later than 120 days
after the date of enactment of the Small Business In-
novation Research Program Reauthorization Act of
2000, the Administrator shall prepare and submit to
the Committees on Small Business of the Senate and
the House of Representatives a report, which shall in-
clude, with respect to the FAST program, including
Mentoring Networks (as defined in section 35)—
‘‘(A) a description of the structure and pro-
cedures of the program;
‘‘(B) a management plan for the program;
and
‘‘(C) a description of the merit-based review
process to be used in the program.
‘‘(2) ANNUAL
REPORTS.—The Administrator
shall submit an annual report to the Committees on
Small Business of the Senate and the House of Rep-
resentatives regarding—
‘‘(A) the number and amount of awards
provided and cooperative agreements entered into
under the FAST program during the preceding
year;
‘‘(B) a list of recipients under this section,
including their location and the activities being
performed with the awards made or under the
cooperative agreements entered into; and
‘‘(C) the Mentoring Networks and the men-
toring data base, as provided for under section
35, including—
‘‘(i) the status of the inclusion of men-
toring information in the database required
by section 9(k); and
‘‘(ii) the status of the implementation
and description of the usage of the Men-
toring Networks (as defined in section 35).
‘‘(g) REVIEWS BY INSPECTOR GENERAL.—
‘‘(1) IN GENERAL.—The Office of the Inspector
General of the Administration shall conduct a review
of—
‘‘(A) the extent to which recipients under
the FAST program are measuring the perform-
ance of the activities being conducted and the re-
sults of such measurements; and
‘‘(B) the overall management and effective-
ness of the FAST program.
‘‘(2) REPORT.—During the first quarter of fiscal
year 2004, the Office of the Inspector General of the
Administration shall submit a report to the Commit-
tees on Small Business of the Senate and the House
of Representatives on the review conducted under
paragraph (1).
‘‘(h) PROGRAM LEVELS.—
‘‘(1) IN GENERAL.—Subject to an appropriations
Act, there is authorized to be appropriated to carry
out the FAST program, including Mentoring Net-
works, under this section and section 35, $10,000,000
for each of fiscal years 2001 through 2005.
‘‘(2) 
MENTORING
DATABASE.—Of 
the 
total
amount made available under paragraph (1) for fis-
cal years 2001 through 2005, a reasonable amount,
not to exceed a total of $500,000, may be used by the
Administration to carry out section 35(e).
‘‘(i) TERMINATION.—The authorization to carry out
the FAST program under this section shall terminate on
September 30, 2005.’’.
(d) COORDINATION OF TECHNOLOGY DEVELOPMENT
PROGRAMS.—Section 9 of the Small Business Act (15
U.S.C. 638) is amended by adding at the end the following:
‘‘(u) COORDINATION OF TECHNOLOGY DEVELOPMENT
PROGRAMS.—
‘‘(1) DEFINITION OF TECHNOLOGY DEVELOPMENT
PROGRAM.—In this subsection, the term ‘technology
development program’ means—
‘‘(A) the Experimental Program to Stimu-
late Competitive Research of the National
Science Foundation, as established under section
113 of the National Science Foundation Author-
ization Act of 1988 (42 U.S.C. 1862g);
‘‘(B) the Defense Experimental Program to
Stimulate Competitive Research of the Depart-
ment of Defense;
‘‘(C) the Experimental Program to Stimu-
late Competitive Technology of the Department
of Commerce;
‘‘(D) the Experimental Program to Stimu-
late Competitive Research of the Department of
Energy;
‘‘(E) the Experimental Program to Stimu-
late Competitive Research of the Environmental
Protection Agency;
‘‘(F) the Experimental Program to Stimu-
late Competitive Research of the National Air
and Space Administration;
‘‘(G) the Institutional Development Award
Program of the National Institutes of Health;
and
‘‘(H) the National Research Initiative Com-
petitive Grants Program of the Department of
Agriculture.
‘‘(2) 
COORDINATION
REQUIREMENTS.—Each
Federal agency that is subject to subsection (f) and
that has established a technology development pro-
gram shall, in each fiscal year—
‘‘(A) review for funding under that tech-
nology development program—
‘‘(i) any proposal from an entity, orga-
nization, or individual located in a State
that is eligible to participate in that pro-
gram to provide outreach and assistance to
1 or more small business concerns interested
in participating in the SBIR program, in-
cluding any proposal to make a grant or
loan to a company to pay a portion or all
of the cost of developing an SBIR proposal;
or
‘‘(ii) any proposal for the first phase of
the SBIR program from a small business
concern located in a State that is eligible to
participate in a technology development
program if the proposal, though meri-
torious, is not funded through the SBIR
program for that fiscal year due to funding
restraints; and
‘‘(B) consider proposals described in sub-
paragraph (A) to be eligible for funding, as de-
scribed in subparagraph (A), if the applicant is
located in a State that is an eligible State.
‘‘(3) DEFINITION OF ‘ELIGIBLE STATE’.—In this
subsection, the term ‘eligible State’ means a State in
which the total value of contracts awarded to small
business concerns under the SBIR program is less
than the total value of contracts awarded to small
business concerns in a majority of other States, as de-
termined by the Administrator in biennial fiscal
years, beginning with fiscal year 2000, based on the
most recent statistics compiled by the Adminis-
trator.’’.
SEC. 10. MENTORING NETWORKS.
The Small Business Act (15 U.S.C. 631 et seq.) is
amended by inserting before section 36, as redesignated by
this Act, the following:
‘‘SEC. 35. MENTORING NETWORKS.
‘‘(a) FINDINGS.—Congress finds that—
‘‘(1) the SBIR and STTR programs create jobs,
increase capacity for technological innovation, and
boost international competitiveness;
‘‘(2) increasing the quantity of applications from
all States to the SBIR and STTR programs would
enhance competition for such awards and the quality
of the completed projects; and
‘‘(3) mentoring is a natural complement to the
FAST program of reaching out to new companies re-
garding the SBIR and STTR programs as an effec-
tive and low-cost way to improve the likelihood that
such companies will succeed in such programs in de-
veloping and commercializing their research.
‘‘(b) DEFINITIONS.—In this section—
‘‘(1) the term ‘business advice and counseling’
means providing advice and assistance on matters de-
scribed in subsection (d)(2)(B) to small business con-
cerns to guide them through the SBIR and STTR
program processes, from application to award and
successful completion of each phase of the program;
‘‘(2) the term ‘mentor’ means an individual de-
scribed in subsection (d)(2); and
‘‘(3) the term ‘Mentoring Network’ means an as-
sociation, organization, coalition, or other entity (in-
cluding an individual) that meets the requirements of
subsection (d).
‘‘(c) AUTHORIZATION FOR MENTORING NETWORKS.—
The recipient of an award or participant in a cooperative
agreement under section 34 may use a reasonable amount
of such assistance for the establishment of a Mentoring Net-
work under this section.
‘‘(d) CRITERIA FOR MENTORING NETWORKS.—A Men-
toring Network established using assistance under section
34 shall—
‘‘(1) provide business advice and counseling to
high technology small business concerns located in the
State or region served by the network and identified
under section 34(c)(1)(E)(ii) as potential candidates
for the SBIR or STTR programs;
‘‘(2) identify volunteer mentors who—
‘‘(A) are persons associated with a small
business concern that has successfully completed
one or more SBIR or STTR funding agreements;
and
‘‘(B) have agreed to guide small business
concerns through all stages of the SBIR or STTR
program process, including providing assistance
relating to—
‘‘(i) proposal writing;
‘‘(ii) marketing;
‘‘(iii) Government accounting;
‘‘(iv) Government audits;
‘‘(v) project facilities and equipment;
‘‘(vi) human resources;
‘‘(vii) phase III partners;
‘‘(viii) commercialization;
‘‘(ix) venture capital networking; and
‘‘(x) other matters relevant to the
SBIR and STTR programs;
‘‘(3) have experience working with small business
concerns participating in the SBIR and STTR pro-
grams;
‘‘(4) contribute information to the national data-
base referred to in subsection (e); and
‘‘(5) agree to reimburse volunteer mentors for
out-of-pocket expenses related to service as a mentor
under this section.
‘‘(e) MENTORING
DATABASE.—The Administrator
shall—
‘‘(1) include in the database required by section
9(k), in cooperation with the SBIR, STTR, and
FAST programs, information on Mentoring Networks
and mentors participating under this section, includ-
ing a description of their areas of expertise;
‘‘(2) work cooperatively with Mentoring Net-
works to maintain and update the database;
‘‘(3) take such action as may be necessary to ag-
gressively promote Mentoring Networks under this sec-
tion; and
‘‘(4) fulfill the requirements of this subsection ei-
ther directly or by contract.’’.
Calendar No. 541
106TH CONGRESS
2D SESSION
H. R. 2392
[Report No. 106–289]
A BILL
To amend the Small Business Act to extend the au-
thorization for the Small Business Innovation
Research Program, and for other purposes.
MAY 10, 2000
Reported with an amendment