I 
111TH CONGRESS 
1ST SESSION H. R. 2965 
To amend the Small Business Act with respect to the Small Business Innova-
tion Research Program and the Small Business Technology Transfer 
Program, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 19, 2009 
Mr. ALTMIRE (for himself, Mr. WU, Mr. GRAVES, Ms. VELA´ZQUEZ, Mr. 
SCHOCK, Mr. NYE, Mrs. HALVORSON, and Mr. BRIGHT) introduced the 
following bill; which was referred to the Committee on Small Business, 
and in addition to the Committee on Science and Technology, for a period 
to be subsequently determined by the Speaker, in each case for consider-
ation of such provisions as fall within the jurisdiction of the committee 
concerned 
A BILL 
To amend the Small Business Act with respect to the Small 
Business Innovation Research Program and the Small 
Business Technology Transfer Program, and for other 
purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Enhancing Small Business Research and Innovation Act 
of 2009’’. 
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(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title; table of contents. 
TITLE I—PROGRAM EXTENSION AND VENTURE CAPITAL 
OPERATING COMPANY INVOLVEMENT 
Sec. 101. Extension of termination dates. 
Sec. 102. Ensuring that innovative small businesses with substantial investment 
from venture capital operating companies are able to partici-
pate in the SBIR and STTR programs. 
TITLE II—COMMERCIALIZATION ACTIVITIES AND RESEARCH 
TOPICS DESERVING SPECIAL CONSIDERATION 
Sec. 201. Focus on commercialization. 
Sec. 202. Inclusion of energy-related research topics and rare disease-related 
research topics as deserving ‘‘special consideration’’ as SBIR 
research topics. 
Sec. 203. Nanotechnology-related research topics. 
Sec. 204. Clarifying the definition of ‘‘Phase Three’’. 
Sec. 205. Agency research goals. 
Sec. 206. Commercialization programs. 
TITLE III—RURAL DEVELOPMENT AND OUTREACH 
Sec. 301. Outreach and support activities. 
Sec. 302. Rural preference. 
Sec. 303. Obtaining SBIR applicant’s consent to release contact information to 
economic development organizations. 
Sec. 304. Increased partnerships between SBIR awardees and prime contrac-
tors, venture capital investment companies, and larger busi-
nesses. 
TITLE IV—SBIR AND STTR ENHANCEMENT 
Sec. 401. Increased number of research topic solicitations annually and short-
ened period for final decisions on applications. 
Sec. 402. Agencies should fund vital R&D projects with the potential for com-
mercialization. 
Sec. 403. Federal agency engagement with SBIR awardees that have been 
awarded multiple Phase One awards but have not been award-
ed Phase Two awards. 
Sec. 404. Funding for administrative, oversight, and contract processing costs. 
Sec. 405. Comptroller general audit of how Federal agencies calculate extra-
mural research budgets. 
Sec. 406. Agency databases to support program evaluation. 
Sec. 407. Agency databases to support technology utilization. 
Sec. 408. Interagency Policy Committee. 
Sec. 409. National Research Council SBIR Study. 
Sec. 410. Express authority to ‘‘fast-track’’ Phase Two awards for promising 
Phase One research. 
Sec. 411. Increased SBIR and STTR award levels. 
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Sec. 412. Express authority for an agency to award sequential Phase Two 
awards for SBIR-funded projects. 
Sec. 413. First phase required. 
TITLE I—PROGRAM EXTENSION 
AND VENTURE CAPITAL OP-
ERATING COMPANY INVOLVE-
MENT 
SEC. 101. EXTENSION OF TERMINATION DATES. 
(a) SBIR.—Section 9(m) of the Small Business Act 
(15 U.S.C. 638(m)) is amended by striking ‘‘2008’’ and 
inserting ‘‘2011’’. 
(b) STTR.—Section 9(n)(1)(A) of the Small Busi-
ness Act (15 U.S.C. 638(n)(1)(A)) is amended by striking 
‘‘2009’’ and inserting ‘‘2011’’. 
SEC. 102. ENSURING THAT INNOVATIVE SMALL BUSI-
NESSES WITH SUBSTANTIAL INVESTMENT 
FROM VENTURE CAPITAL OPERATING COM-
PANIES ARE ABLE TO PARTICIPATE IN THE 
SBIR AND STTR PROGRAMS. 
Section 9 of the Small Business Act (15 U.S.C. 638) 
is amended by adding at the end the following: 
‘‘(aa) VENTURE CAPITAL OPERATING COMPANIES.— 
Effective only for the SBIR and STTR programs the fol-
lowing shall apply: 
‘‘(1) A business concern that has more than 
500 employees shall not qualify as a small business 
concern. 
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produce products or services for the marketplace or for 
acquisition by Federal agencies.’’. 
SEC. 202. INCLUSION OF ENERGY-RELATED RESEARCH 
TOPICS AND RARE DISEASE-RELATED RE-
SEARCH TOPICS AS DESERVING ‘‘SPECIAL 
CONSIDERATION’’ AS SBIR RESEARCH TOP-
ICS. 
Section 9(g)(3) of the Small Business Act (15 U.S.C. 
638(g)(3)) is amended— 
(1) in the matter preceding subparagraph (A) 
by inserting after ‘‘critical technologies’’ the fol-
lowing: ‘‘or pressing research priorities’’; 
(2) at the end of subparagraph (A) by striking 
‘‘or’’; and 
(3) by adding at the end the following: 
‘‘(C) the National Academy of Sciences, in 
the final report issued by the ‘America’s Energy 
Future: Technology Opportunities, Risks, and 
Tradeoffs’ project, and in subsequent reports 
issued by the National Academy of Sciences on 
sustainability, energy, and alternative fuels; 
‘‘(D) the National Institutes of Health, in 
the annual report on the rare diseases research 
activities of the National Institutes of Health 
for fiscal year 2005, and in subsequent reports 
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issued by the National Institutes of Health on 
rare diseases research activities; or 
‘‘(E) the National Academy of Sciences, in 
the final report issued by the ‘Transit Research 
and Development: Federal Role in the National 
Program’ project and the ‘Transportation Re-
search, Development and Technology Strategic 
Plan (2006–2010)’ issued by the United States 
Department of Transportation Research and 
Innovative Technology Administration, and in 
subsequent reports issued by the National 
Academy of Sciences and United States Depart-
ment of Transportation on transportation and 
infrastructure;’’. 
SEC. 203. NANOTECHNOLOGY-RELATED RESEARCH TOPICS. 
(a) SBIR.—Section 9(g)(3) of the Small Business 
Act (15 U.S.C. 638(g)(3)), as amended, is further amend-
ed— 
(1) at the end of subparagraph (D) by striking 
‘‘or’’; 
(2) at the end of subparagraph (E) by adding 
‘‘or’’; and 
(3) by adding at the end the following: 
‘‘(F) the national nanotechnology strategic 
plan required under section 2(c)(4) of the 21st 
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Century Nanotechnology Research and Develop-
ment Act (15 U.S.C. 7501(c)(4)) and in subse-
quent reports issued by the National Science 
and Technology Council Committee on Tech-
nology, focusing on areas of nanotechnology 
identified in such plan;’’. 
(b) STTR.—Section 9(o)(3) of the Small Business 
Act (15 U.S.C. 638(o)(3)) is amended— 
(1) at the end of subparagraph (A) by striking 
‘‘or’’; 
(2) at the end of subparagraph (B) by adding 
‘‘or’’; and 
(3) by adding at the end the following: 
‘‘(C) by the national nanotechnology stra-
tegic plan required under section 2(c)(4) of the 
21st Century Nanotechnology Research and De-
velopment Act (15 U.S.C. 7501(c)(4)) and in 
subsequent reports issued by the National 
Science and Technology Council Committee on 
Technology, focusing on areas of nanotechnolo-
gy identified in such plan;’’. 
SEC. 
204. 
CLARIFYING 
THE 
DEFINITION 
OF 
‘‘PHASE 
THREE’’. 
Section 9(e) of the Small Business Act (15 U.S.C. 
638(e)) is amended— 
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(1) in paragraph (4)(C) in the matter preceding 
clause (i) by inserting after ‘‘a third phase’’ the fol-
lowing: ‘‘, which shall consist of work that derives 
from, extends, or logically concludes efforts per-
formed under prior SBIR funding agreements 
(which may be referred to as ‘Phase III’)’’; 
(2) in paragraph (8) by striking ‘‘and’’ at the 
end; 
(3) in paragraph (9) by striking the period at 
the end and inserting ‘‘; and’’; and 
(4) by adding at the end the following: 
‘‘(10) the term ‘commercialization’ means the 
process of developing marketable products or serv-
ices and producing and delivering products or serv-
ices for sale (whether by the originating party or by 
others) to government or commercial markets.’’. 
SEC. 205. AGENCY RESEARCH GOALS. 
Section 9 of the Small Business Act (15 U.S.C. 638), 
as amended, is further amended by striking subsection (h) 
and inserting the following: 
‘‘(h) AGENCY RESEARCH GOALS.— 
‘‘(1) IN GENERAL.—In addition to the require-
ments of subsection (f), each Federal agency that is 
required by this section to have an SBIR program 
and that awards annually $5,000,000,000 or more 
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in procurement contracts shall, effective for fiscal 
year 2010 and each fiscal year thereafter, establish 
annual goals for commercialization of projects fund-
ed by SBIR awards. 
‘‘(2) SPECIFIC GOALS.—The goals required by 
paragraph (1) shall include specific goals for each of 
the following: 
‘‘(A) The percentage of SBIR projects that 
receive funding for the third phase (as defined 
in subsection (e)(4)(C)). 
‘‘(B) The percentage of SBIR projects that 
are successfully integrated into a program of 
record. 
‘‘(C) The amount of Federal dollars re-
ceived by SBIR projects through Federal con-
tracts, not including dollars received through 
the SBIR program. 
‘‘(3) SUBMISSION TO COMMITTEES.—For each 
fiscal year for which goals are required by paragraph 
(1), the agency shall submit to the Committee on 
Small Business and the Committee on Science and 
Technology of the House of Representatives and the 
Committee on Small Business and Entrepreneurship 
of the Senate— 
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‘‘(A) not later than 60 days after the be-
ginning of the fiscal year, the goals; and 
‘‘(B) not later than 90 days after the end 
of the fiscal year, data on the extent to which 
the goals were met and a description of the 
methodology used to collect such data.’’. 
SEC. 206. COMMERCIALIZATION PROGRAMS. 
Section 9 of the Small Business Act (15 U.S.C. 638) 
as amended, is further amended, by adding at the end the 
following: 
‘‘(bb) COMMERCIALIZATION PROGRAMS.— 
‘‘(1) IN GENERAL.—Each agency required by 
this section to conduct an SBIR program shall es-
tablish a commercialization program that supports 
the progress of SBIR awardees to the third phase. 
The commercialization program may include activi-
ties such as partnership databases, partnership con-
ferences, multiple second phases, mentoring between 
prime contractors and SBIR awardees, multiple sec-
ond phases with matching private investment re-
quirements, jumbo awards, SBIR helpdesks, and 
transition assistance programs. The agency shall in-
clude in its annual report an analysis of the various 
activities considered for inclusion in the commer-
cialization program and a statement of the reasons 
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why each activity considered was included or not in-
cluded, as the case may be. 
‘‘(2) FUNDING FOR COMMERCIALIZATION PRO-
GRAMS.— 
‘‘(A) IN GENERAL.—From amounts made 
available to carry out this paragraph, the Ad-
ministrator may, on petition by agencies re-
quired by this section to conduct an SBIR pro-
gram, transfer funds to such agencies to sup-
port the commercialization programs of such 
agencies. 
‘‘(B) PETITIONS.—The Administrator shall 
establish rules for making transfers under sub-
paragraph (A). The initial set of rules shall be 
promulgated not later than 90 days after the 
date of the enactment of this paragraph. 
‘‘(C) 
AUTHORIZATION
OF
APPROPRIA-
TIONS.—There is authorized to be appropriated 
to the Administrator to carry out this para-
graph $27,500,000 for fiscal year 2010 and 
each fiscal year thereafter. 
‘‘(3) FUNDING LIMITATION.—For payment of 
expenses incurred to administer the commercializa-
tion programs described in paragraphs (1) and (2), 
the head of an agency may use not more than an 
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amount equal to 1 percent of the funds set aside for 
the agency’s Small Business Innovation Research 
program. Such funds— 
‘‘(A) shall not be subject to the limitations 
on the use of funds in subsection (f)(2); and 
‘‘(B) shall not be used for the purpose of 
funding costs associated with salaries and ex-
penses of employees of the Federal Govern-
ment.’’. 
TITLE III—RURAL 
DEVELOPMENT AND OUTREACH 
SEC. 301. OUTREACH AND SUPPORT ACTIVITIES. 
Section 9 of the Small Business Act (15 U.S.C. 638), 
as amended, is further amended by inserting after sub-
section (r) the following: 
‘‘(s) OUTREACH AND SUPPORT ACTIVITIES.— 
‘‘(1) IN GENERAL.—Subject to the other provi-
sions of this subsection, the Administrator shall 
make grants on a competitive basis to organizations, 
to be used by the organizations to do one or both 
of the following: 
‘‘(A) To conduct outreach efforts to in-
crease participation in the programs under this 
section. 
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‘‘(B) To provide application support and 
entrepreneurial and business skills support to 
prospective participants in the programs under 
this section. 
‘‘(2) AUTHORIZATION
OF
APPROPRIATIONS.— 
There is authorized to be appropriated to the Ad-
ministrator $10,000,000 to carry out paragraph (1) 
for each of fiscal years 2010 and 2011. 
‘‘(3) AMOUNT
OF
ASSISTANCE.—For each of 
subparagraphs (A) and (B) of paragraph (1), the 
amount of assistance provided to an organization 
under that subparagraph in any fiscal year— 
‘‘(A) shall be equal to the total amount of 
matching funds from non-Federal sources pro-
vided by the organization; and 
‘‘(B) shall not exceed $250,000. 
‘‘(4) DIRECTION.—An organization receiving 
funds under paragraph (1) shall, in using those 
funds, direct its activities at one or both of the fol-
lowing: 
‘‘(A) Small business concerns located in 
geographic areas that are underrepresented in 
the programs under this section. 
‘‘(B) Small business concerns owned and 
controlled by women, small business concerns 
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owned and controlled by service-disabled vet-
erans, and small business concerns owned and 
controlled by minorities. 
‘‘(5) ADVISORY BOARD.— 
‘‘(A) ESTABLISHMENT.—Not later than 90 
days after the date of the enactment of this 
subsection, the Administrator shall establish an 
advisory board for the activities carried out 
under this subsection. 
‘‘(B) NON-APPLICABILITY OF FACA.—The 
Federal Advisory Committee Act (5 U.S.C. 
App.) shall not apply to the advisory board. 
‘‘(C) MEMBERS.—The members of the ad-
visory board shall include the following: 
‘‘(i) The Administrator (or the Ad-
ministrator’s designee). 
‘‘(ii) For each Federal agency re-
quired by this section to conduct an SBIR 
program, the head of the agency (or the 
designee of the head of the agency). 
‘‘(iii) Representatives of small busi-
ness concerns that are current or former 
recipients of SBIR awards, or representa-
tives of organizations of such concerns. 
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‘‘(iv) Representatives of service pro-
viders of SBIR outreach and assistance, or 
representatives of organizations of such 
service providers. 
‘‘(D) DUTIES.—The advisory board shall 
have the following duties: 
‘‘(i) To develop guidelines for awards 
under paragraph (1), including guidelines 
relating to award sizes, proposal require-
ments, measures for monitoring awardee 
performance, and measures for deter-
mining the overall value of the activities 
carried out by the awardees. 
‘‘(ii) To identify opportunities for co-
ordinated outreach, technical assistance, 
and commercialization activities among 
Federal agencies, the recipients of the 
awards under paragraph (1), and appli-
cants and recipients of SBIR awards, in-
cluding opportunities such as— 
‘‘(I) podcasting or webcasting for 
conferences, training workshops, and 
other events; 
‘‘(II) shared online resources to 
match prospective applicants with the 
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network of paragraph (1) recipients; 
and 
‘‘(III) venture capital conferences 
tied to technologies and sectors that 
cross agencies. 
‘‘(iii) To review and recommend revi-
sions to activities under paragraph (1). 
‘‘(iv) To submit to the Committee on 
Small Business and Entrepreneurship of 
the Senate and the Committee on Small 
Business and the Committee on Science 
and Technology of the House of Represent-
atives an annual report on the activities 
carried out under paragraph (1) and the 
effectiveness and impact of those activities. 
‘‘(6) 
SELECTION
CRITERIA.—In 
awarding 
grants under this subsection, the Administrator shall 
use selection criteria developed by the advisory board 
established under paragraph (5). The criteria shall 
include— 
‘‘(A) criteria designed to give preference to 
applicants who propose to carry out activities 
that will reach either an underperforming geo-
graphic area or an underrepresented population 
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group (as measured by the number of SBIR ap-
plicants); 
‘‘(B) criteria designed to give preference to 
applicants who propose to carry out activities 
that complement, and are integrated into, the 
existing public-private innovation support sys-
tem for the targeted region or population; 
‘‘(C) criteria designed to give preference to 
applicants who propose to measure the effec-
tiveness of the proposed activities; and 
‘‘(D) criteria designed to give preference to 
applicants who include a Small Business Devel-
opment Center program that is accredited for 
its technology services. 
‘‘(7) PEER REVIEW.—In awarding grants under 
this subsection, the Administrator shall use a peer 
review process. Reviewers shall include— 
‘‘(A) SBIR program managers for agencies 
required by this section to conduct SBIR pro-
grams; and 
‘‘(B) private individuals and organizations 
that are knowledgeable about SBIR, the innova-
tion process, technology commercialization, and 
State and regional technology-based economic 
development programs. 
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‘‘(8) PER-STATE LIMITATIONS.— 
‘‘(A) IN GENERAL.—To be eligible to re-
ceive a grant under this subsection, the appli-
cant must have the written endorsement of the 
Governor of the State where the targeted re-
gions or populations are located (if the regions 
or populations are located in more than one 
State, the applicant must have the written en-
dorsement of the Governor of each such State). 
Such an endorsement must indicate that the 
Governor will ensure that the activities to be 
carried out under the grant will be integrated 
with the balance of the State’s portfolio of in-
vestments to help small business concerns com-
mercialize technology. 
‘‘(B) LIMITATION.—Each fiscal year, a 
Governor may have in effect not more than one 
written endorsement for a grant under para-
graph (1)(A), and not more than one written 
endorsement for a grant under paragraph 
(1)(B). 
‘‘(9) SPECIFIC REQUIREMENTS FOR AWARDS.— 
In making awards under paragraph (1) the Adminis-
trator shall ensure that each award shall be for a pe-
riod of 2 fiscal years. The Administrator shall estab-
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lish rules and performance goals for the disburse-
ment of funds for the second fiscal year, and funds 
shall not be disbursed to a recipient for such a fiscal 
year until after the advisory board established under 
this subsection has determined that the recipient is 
in compliance with the rules and performance 
goals.’’. 
SEC. 302. RURAL PREFERENCE. 
Section 9 of the Small Business Act (15 U.S.C. 638), 
as amended, is further amended by adding at the end the 
following: 
‘‘(cc) RURAL
PREFERENCE.—In making awards 
under this section, Federal agencies shall give priority to 
applications so as to increase the number of SBIR and 
STTR award recipients from rural areas.’’. 
SEC. 303. OBTAINING SBIR APPLICANT’S CONSENT TO RE-
LEASE 
CONTACT 
INFORMATION 
TO 
ECO-
NOMIC DEVELOPMENT ORGANIZATIONS. 
Section 9 of the Small Business Act (15 U.S.C. 638), 
as amended, is further amended by adding at the end the 
following: 
‘‘(dd) CONSENT TO RELEASE CONTACT INFORMA-
TION TO ORGANIZATIONS.— 
‘‘(1) ENABLING CONCERN TO GIVE CONSENT.— 
Each Federal agency required by this section to con-
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duct an SBIR program shall enable a small business 
concern that is an SBIR applicant to indicate to the 
agency whether the agency has its consent to— 
‘‘(A) identify the concern to appropriate 
local and State-level economic development or-
ganizations as an SBIR applicant; and 
‘‘(B) release the concern’s contact informa-
tion to such organizations. 
‘‘(2) RULES.—The Administrator shall estab-
lish rules to implement this subsection. The rules 
shall include a requirement that the agency include 
in its SBIR application forms a provision through 
which the applicant can indicate consent for pur-
poses of paragraph (1).’’. 
SEC. 304. INCREASED PARTNERSHIPS BETWEEN SBIR 
AWARDEES AND PRIME CONTRACTORS, VEN-
TURE 
CAPITAL 
INVESTMENT 
COMPANIES, 
AND LARGER BUSINESSES. 
Section 9 of the Small Business Act (15 U.S.C. 638), 
as amended, is further amended by adding at the end the 
following: 
‘‘(ee) INCREASED PARTNERSHIPS.— 
‘‘(1) IN GENERAL.—Each agency required by 
this section to conduct an SBIR program shall es-
tablish initiatives by which the agency encourages 
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partnerships between SBIR awardees and prime 
contractors, venture capital investment companies, 
business incubators, and larger businesses, for the 
purpose of facilitating the progress of the SBIR 
awardees to the third phase. 
‘‘(2) DEFINITION.—In this subsection, the term 
‘business incubator’ means an entity that provides 
coordinated and specialized services to entrepre-
neurial businesses which meet selected criteria dur-
ing the businesses’ startup phases, including pro-
viding services such as shared office space and office 
services, access to equipment, access to telecommuni-
cations and technology services, flexible leases, spe-
cialized management assistance, access to financing, 
mentoring and training services, or other coordi-
nated business or technical support services designed 
to provide business development assistance to entre-
preneurial businesses during these businesses’ start-
up phases.’’. 
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TITLE IV—SBIR AND STTR 
ENHANCEMENT 
SEC. 401. INCREASED NUMBER OF RESEARCH TOPIC SO-
LICITATIONS ANNUALLY AND SHORTENED 
PERIOD FOR FINAL DECISIONS ON APPLICA-
TIONS. 
(a) INCREASED NUMBER OF RESEARCH TOPIC SO-
LICITATIONS ANNUALLY.—Section 9(g)(2) of the Small 
Business Act (15 U.S.C. 638(g)(2)) is amended by insert-
ing before the semicolon at the end the following: ‘‘, but 
not less often than twice per year’’. 
(b) SHORTENED PERIOD FOR FINAL DECISIONS ON 
APPLICATIONS.—Section 9(g)(4) of the Small Business 
Act (15 U.S.C. 638(g)(4)) is amended by inserting before 
the semicolon at the end the following: ‘‘, but a final deci-
sion on each proposal shall be rendered not later than 90 
days after the date on which the solicitation closes unless 
the Administrator determines, on a case by case basis, 
that a decision may be extended from 90 days to 180 
days’’. 
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SEC. 402. AGENCIES SHOULD FUND VITAL R&D PROJECTS 
WITH THE POTENTIAL FOR COMMERCIALIZA-
TION. 
Section 9 of the Small Business Act (15 U.S.C. 638), 
as amended, is further amended by adding at the end the 
following: 
‘‘(ff) MULTIPLE FIRST PHASE SBIR AWARDS RE-
PORT.—The Administrator shall, on an annual basis, sub-
mit to the Committee on Small Business and the Com-
mittee on Science and Technology of the House of Rep-
resentatives and the Committee on Small Business and 
Entrepreneurship of the Senate a list identifying each 
small business concern that, for the period covered by the 
preceding 5 fiscal years, received 15 or more first phase 
SBIR awards and no second phase SBIR awards.’’. 
SEC. 403. FEDERAL AGENCY ENGAGEMENT WITH SBIR 
AWARDEES THAT HAVE BEEN AWARDED MUL-
TIPLE PHASE ONE AWARDS BUT HAVE NOT 
BEEN AWARDED PHASE TWO AWARDS. 
Section 9 of the Small Business Act (15 U.S.C. 638), 
as amended, is further amended by adding at the end the 
following: 
‘‘(gg) REQUIREMENTS
RELATING
TO
FEDERAL 
AGENCY ENGAGEMENT WITH CERTAIN FIRST PHASE 
SBIR AWARDEES.—Each Federal agency required by this 
section to conduct an SBIR program shall engage with 
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SBIR awardees that have been awarded multiple first 
phase SBIR awards but have not been awarded any sec-
ond phase SBIR awards and shall develop performance 
measures with respect to awardee progression in the SBIR 
program.’’. 
SEC. 404. FUNDING FOR ADMINISTRATIVE, OVERSIGHT, 
AND CONTRACT PROCESSING COSTS. 
Section 9 of the Small Business Act (15 U.S.C. 638), 
as amended, is further amended by adding at the end the 
following: 
‘‘(hh) ASSISTANCE
FOR ADMINISTRATIVE, OVER-
SIGHT, AND CONTRACT PROCESSING COSTS.— 
‘‘(1) IN GENERAL.—From amounts made avail-
able to carry out this subsection, the Administrator 
may, on petition by Federal agencies required by 
this section to conduct an SBIR program, transfer 
funds to such agencies to assist with the administra-
tive, oversight, and contract processing costs relating 
to such program. 
‘‘(2) PETITIONS.—The Administrator shall es-
tablish rules for making transfers under paragraph 
(1). The initial set of rules shall be promulgated not 
later than 180 days after the date of the enactment 
of this subsection. 
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‘‘(3) LIMIT ON TRANSFER.—A Federal agency 
may not receive under this subsection in a fiscal 
year an amount greater than 3 percent of the SBIR 
budget of such agency for such fiscal year. 
‘‘(4) AUTHORIZATION
OF
APPROPRIATIONS.— 
There is authorized to be appropriated to the Ad-
ministrator to carry out this subsection $27,500,000 
for each of fiscal years 2010 and 2011.’’. 
SEC. 405. COMPTROLLER GENERAL AUDIT OF HOW FED-
ERAL AGENCIES CALCULATE EXTRAMURAL 
RESEARCH BUDGETS. 
The Comptroller General of the United States shall 
carry out a detailed audit of how Federal agencies cal-
culate extramural research budgets for purposes of calcu-
lating the size of the agencies’ Small Business Innovation 
Research Program and Small Business Technology Trans-
fer Program budgets. Not later than 1 year after the date 
of the enactment of this Act, the Comptroller General shall 
submit to the Committee on Small Business and the Com-
mittee on Science and Technology of the House of Rep-
resentatives and the Committee on Small Business and 
Entrepreneurship of the Senate a report on the results 
of the audit. 
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SEC. 406. AGENCY DATABASES TO SUPPORT PROGRAM 
EVALUATION. 
Section 9(k) of the Small Business Act (15 U.S.C. 
638(k)) is amended— 
(1) in paragraph (2)(A)— 
(A) by striking ‘‘and’’ at the end of clause 
(ii); 
(B) by inserting ‘‘and’’ at the end of clause 
(iii); and 
(C) by adding at the end the following new 
clause: 
‘‘(iv) information on the ownership 
structure of award recipients, both at the 
time of receipt of the award and upon com-
pletion of the award period;’’; 
(2) by amending paragraph (3) to read as fol-
lows: 
‘‘(3) UPDATING
INFORMATION
FOR
DATA-
BASE.— 
‘‘(A) IN
GENERAL.—A Federal agency 
shall not make a Phase I or Phase II payment 
to a small business concern under this section 
unless the small business concern has provided 
all information required under this subsection 
and available at the time with respect to the 
award under which the payment is made, and 
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with respect to any other award under this sec-
tion previously received by the small business 
concern or a predecessor in interest to the small 
business concern. 
‘‘(B) 
APPORTIONMENT.—In 
complying 
with this paragraph, a small business concern 
may apportion sales or additional investment 
information relating to more than one second 
phase award among those awards, if it notes 
the apportionment for each award. 
‘‘(C) ANNUAL
UPDATES
UPON
TERMI-
NATION.—A small business concern receiving an 
award under this section shall— 
‘‘(i) in the case of a second phase 
award, update information in the data-
bases required under paragraphs (2) and 
(6) concerning that award at the termi-
nation of the award period; 
‘‘(ii) in the case of award recipients 
not described in clause (iii), be requested 
to voluntarily update such information an-
nually thereafter for a period of 5 years; 
and 
‘‘(iii) in the case of a small business 
concern applying for a subsequent first 
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phase or second phase award, be required 
to update such information annually there-
after for a period of 5 years.’’; and 
(3) by adding at the end the following new 
paragraph: 
‘‘(6) AGENCY
PROGRAM
EVALUATION
DATA-
BASES.—Each Federal agency required to establish 
an SBIR or STTR program under this section shall 
develop and maintain, for the purpose of evaluating 
such programs, a database containing information 
required to be contained in the database under para-
graph (2). Each such database shall be designed to 
be accessible to other agencies that are required to 
maintain a database under this paragraph. Each 
such database shall be developed and operated in a 
manner to ensure that each such database is rel-
evant to and contributes to the agency’s oversight 
and evaluation of the SBIR and STTR programs. 
Paragraphs (4) and (5) apply to each database 
under this paragraph.’’. 
SEC. 407. AGENCY DATABASES TO SUPPORT TECHNOLOGY 
UTILIZATION. 
Section 9(k) of the Small Business Act (15 U.S.C. 
638(k)), as amended, is further amended by adding at the 
end the following new paragraph: 
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‘‘(7) AGENCY DATABASES TO SUPPORT TECH-
NOLOGY UTILIZATION.—Each Federal agency with 
an SBIR or STTR program shall create and main-
tain a technology utilization database, which shall be 
available to the public and shall contain data sup-
plied by the award recipients specifically to help 
them attract customers for the products and services 
generated under the SBIR or STTR project, and to 
attract additional investors and business partners. 
Each database created under this paragraph shall 
include information on the other databases created 
under this paragraph by other Federal agencies. 
Participation in a database under this paragraph 
shall be voluntary, except that such participation is 
required of all award recipients who received supple-
mental payments from SBIR and STTR program 
funds above their initial Phase II award. Each data-
base created under this paragraph shall be developed 
and operated in a manner to ensure that each such 
database is relevant to and contributes to the agen-
cy’s oversight and evaluation of the SBIR and 
STTR programs.’’. 
SEC. 408. INTERAGENCY POLICY COMMITTEE. 
(a) ESTABLISHMENT.—The Director of the Office of 
Science and Technology Policy shall establish an Inter-
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agency SBIR/STTR Policy Committee comprised of one 
representative from each Federal agency with an SBIR 
program. 
(b) COCHAIRS.—The Director of the Office of Science 
and Technology Policy and the Director of the National 
Institute of Standards and Technology shall jointly chair 
the Interagency SBIR/STTR Policy Committee. 
(c) DUTIES.—The Interagency SBIR/STTR Policy 
Committee shall review the following issues and make pol-
icy recommendations on ways to improve program effec-
tiveness and efficiency: 
(1) The public and government databases de-
scribed in section 9(k) (1) and (2) of the Small 
Business Act (15 U.S.C. 638(k) (1) and (2)). 
(2) Federal agency flexibility in establishing 
Phase I and II award sizes, and appropriate criteria 
to exercise such flexibility. 
(3) Commercialization assistance best practices 
in Federal agencies with significant potential to be 
employed by other agencies, and the appropriate 
steps to achieve that leverage, as well as proposals 
for new initiatives to address funding gaps business 
concerns face after Phase II but before commer-
cialization. 
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(d) REPORTS.—The Interagency SBIR/STTR Policy 
Committee shall transmit to the Committee on Science 
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— 
(1) a report on its review and recommendations 
under subsection (c)(1) not later than 1 year after 
the date of enactment of this Act; 
(2) a report on its review and recommendations 
under subsection (c)(2) not later than 18 months 
after the date of enactment of this Act; and 
(3) a report on its review and recommendations 
under subsection (c)(3) not later than 2 years after 
the date of enactment of this Act. 
SEC. 409. NATIONAL RESEARCH COUNCIL SBIR STUDY. 
Section 108(d) of the Small Business Reauthoriza-
tion Act of 2000, enacted into law by reference under sec-
tion 1(a)(9) of the Consolidated Appropriations Act, 2001 
(Public Law 106–554), is amended— 
(1) by striking ‘‘of the Senate’’ and all that fol-
lows through ‘‘not later than 3’’ and inserting ‘‘of 
the Senate, not later than 3’’; and 
(2) by striking ‘‘; and’’ and all that follows 
through ‘‘update of such report’’. 
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SEC. 410. EXPRESS AUTHORITY TO ‘‘FAST-TRACK’’ PHASE 
TWO AWARDS FOR PROMISING PHASE ONE 
RESEARCH. 
Section 9 of the Small Business Act (15 U.S.C. 638), 
as amended, is further amended by adding at the end the 
following: 
‘‘(ii) AUTHORITY TO ‘FAST-TRACK’ PHASE TWO 
AWARDS FOR PROMISING PHASE ONE RESEARCH.—To 
address the delay between an award for the first phase 
of an SBIR program and the application for and extension 
of an award for the second phase of such program, each 
Federal agency with an SBIR program may develop ‘fast- 
track’ programs to eliminate such delay by issuing second 
phase SBIR awards as soon as practicable, including in 
appropriate cases simultaneously with the issuance of the 
first phase SBIR award. The Administrator shall encour-
age the development of such ‘fast-track’ programs.’’. 
SEC. 411. INCREASED SBIR AND STTR AWARD LEVELS. 
(a) SBIR AWARD LEVEL
AND ANNUAL ADJUST-
MENTS.—Section 9(j) of the Small Business Act (15 
U.S.C. 638(j)) is amended by adding at the end the fol-
lowing: 
‘‘(4) FURTHER ADDITIONAL MODIFICATIONS.—Not 
later than 180 days after the date of enactment of this 
paragraph and notwithstanding paragraph (2)(D), the Ad-
ministrator shall modify the policy directives issued pursu-
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ant to this subsection to provide for an increase to 
$250,000 in the amount of funds which an agency may 
award in the first phase of an SBIR program, and to 
$2,000,000 in the second phase of an SBIR program, and 
a mandatory annual adjustment of such amounts to reflect 
economic adjustments and programmatic considerations.’’. 
(b) STTR AWARD LEVEL AND ANNUAL ADJUST-
MENTS.—Section 9(p)(2)(B)(ix) of the Small Business Act 
(15 U.S.C. 638(p)(2)(B)(ix)) is amended— 
(1) by striking ‘‘$100,000’’ and ‘‘$750,000’’ 
and inserting ‘‘$250,000’’ and ‘‘$2,000,000’’, re-
spectively; and 
(2) by striking ‘‘greater or lesser amounts’’ and 
inserting ‘‘with a mandatory annual adjustment of 
such amounts to reflect economic adjustments and 
programmatic 
considerations, 
and 
with 
lesser 
amounts’’. 
(c) LIMITATION ON CERTAIN AWARDS.—Section 9 of 
the Small Business Act (15 U.S.C. 638), as amended, is 
further amended by adding at the end the following: 
‘‘(jj) LIMITATION ON PHASE I AND II AWARDS.—No 
Federal agency shall issue an award under the SBIR pro-
gram or the STTR program if the size of the award ex-
ceeds the amounts established under subsections (j)(4) 
and (p)(2)(B)(ix).’’. 
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