H. R. 1540—549 
SEC. 5133. DATA COLLECTION FROM AGENCIES FOR STTR. 
Section 9(o) of the Small Business Act (15 U.S.C. 638(o)), as 
amended by this title, is further amended by striking paragraph 
(9) and inserting the following: 
‘‘(9) collect annually, and maintain in a common format 
in accordance with the simplified reporting requirements under 
subsection (v), such information from applicants and awardees 
as is necessary to assess the STTR program outputs and out-
comes, including information necessary to maintain the data-
base described in subsection (k), including— 
‘‘(A) whether an applicant or awardee— 
‘‘(i) has venture capital, hedge fund, or private 
equity firm investment or is majority-owned by mul-
tiple venture capital operating companies, hedge funds, 
or private equity firms and, if so— 
‘‘(I) the amount of venture capital, hedge fund, 
or private equity firm investment that the 
applicant or awardee has received as of the date 
of the application or award, as applicable; and 
‘‘(II) the amount of additional capital that the 
applicant or awardee has invested in the STTR 
technology; 
‘‘(ii) has an investor that— 
‘‘(I) is an individual who is not a citizen of 
the United States or a lawful permanent resident 
of the United States and, if so, the name of any 
such individual; or 
‘‘(II) is a person that is not an individual and 
is not organized under the laws of a State or 
the United States and, if so, the name of any 
such person; 
‘‘(iii) is owned by a woman or has a woman as 
a principal investigator; 
‘‘(iv) is owned by a socially or economically dis-
advantaged individual or has a socially or economically 
disadvantaged individual as a principal investigator; 
‘‘(v) is a faculty member or a student of an institu-
tion of higher education, as that term is defined in 
section 101 of the Higher Education Act of 1965 (20 
U.S.C. 1001); or 
‘‘(vi) is located in a State in which the total value 
of contracts awarded to small business concerns under 
all STTR programs is less than the total value of 
contracts awarded to small business concerns in a 
majority of other States, as determined by the Adminis-
trator in biennial fiscal years, beginning with fiscal 
year 2008, based on the most recent statistics compiled 
by the Administrator; 
‘‘(B) if an awardee receives an award in an amount 
that is more than the award guidelines under this section, 
a statement from the agency that justifies the award 
amount; and 
‘‘(C) data with respect to the Federal and State Tech-
nology Partnership Program (FAST Program);’’.
H. R. 1540—550 
SEC. 5134. PUBLIC DATABASE. 
Section 9(k)(1) of the Small Business Act (15 U.S.C. 638(k)(1)) 
is amended— 
(1) in subparagraph (D), by striking ‘‘and’’ at the end; 
(2) in subparagraph (E), by striking the period at the 
end and inserting ‘‘; and’’; and 
(3) by adding at the end the following: 
‘‘(F) for each small business concern that has received 
a Phase I or Phase II SBIR or STTR award from a Federal 
agency, whether the small business concern— 
‘‘(i) has venture capital, hedge fund, or private 
equity firm investment and, if so, whether the small 
business concern is registered as majority-owned by 
multiple venture capital operating companies, hedge 
funds, or private equity firms as required under sub-
section (dd)(3); 
‘‘(ii) is owned by a woman or has a woman as 
a principal investigator; 
‘‘(iii) is owned by a socially or economically dis-
advantaged individual or has a socially or economically 
disadvantaged individual as a principal investigator; 
‘‘(iv) is owned by a faculty member or a student 
of an institution of higher education, as that term 
is defined in section 101 of the Higher Education Act 
of 1965 (20 U.S.C. 1001); or 
‘‘(v) received assistance under the Federal and 
State Technology Partnership Program (FAST Pro-
gram).’’. 
SEC. 5135. GOVERNMENT DATABASE. 
Section 9(k) of the Small Business Act (15 U.S.C. 638(k)) is 
amended— 
(1) in paragraph (2)— 
(A) in the matter preceding subparagraph (A), by 
striking ‘‘Not later’’ and all that follows through ‘‘Act of 
2000’’ and inserting ‘‘Not later than 90 days after the 
date of enactment of the SBIR/STTR Reauthorization Act 
of 2011’’; 
(B) by striking subparagraph (C); 
(C) by redesignating subparagraphs (A) and (B) as 
subparagraphs (B) and (C), respectively; 
(D) by inserting before subparagraph (B), as so redesig-
nated, the following: 
‘‘(A) contains for each small business concern that 
applies for, submits a proposal for, or receives an award 
under Phase I or Phase II of the SBIR program or the 
STTR program— 
‘‘(i) the name, size, and location of, and the identi-
fying number assigned by the Administration to, the 
small business concern; 
‘‘(ii) an abstract of the applicable project; 
‘‘(iii) the specific aims of the project; 
‘‘(iv) the number of employees of the small business 
concern; 
‘‘(v) the names and titles of the key individuals 
that will carry out the project, the position each key
H. R. 1540—551 
individual holds in the small business concern, and 
contact information for each key individual; 
‘‘(vi) the percentage of effort each individual 
described in clause (v) will contribute to the project; 
‘‘(vii) whether the small business concern is 
majority-owned by multiple venture capital operating 
companies, hedge funds, or private equity firms; and 
‘‘(viii) the Federal agency to which the application 
is made and contact information for the person or 
office within the Federal agency that is responsible 
for reviewing applications and making awards under 
the SBIR program or the STTR program;’’; 
(E) by redesignating subparagraphs (D) and (E) as 
subparagraphs (E) and (F), respectively; 
(F) by inserting after subparagraph (C), as so redesig-
nated, the following: 
‘‘(D) includes, for each awardee— 
‘‘(i) the name, size, and location of, and any identi-
fying number assigned by the Administrator to, the 
awardee; 
‘‘(ii) whether the awardee has venture capital, 
hedge fund, or private equity firm investment and, 
if so— 
‘‘(I) the amount of venture capital, hedge fund, 
or private equity firm investment as of the date 
of the award; 
‘‘(II) the percentage of ownership of the 
awardee held by a venture capital operating com-
pany, hedge fund, or private equity firm, including 
whether the awardee is majority-owned by mul-
tiple venture capital operating companies, hedge 
funds, or private equity firms; and 
‘‘(III) the amount of additional capital that 
the awardee has invested in the SBIR or STTR 
technology, which information shall be collected 
on an annual basis; 
‘‘(iii) the names and locations of any affiliates of 
the awardee; 
‘‘(iv) the number of employees of the awardee; 
‘‘(v) the number of employees of the affiliates of 
the awardee; and 
‘‘(vi) the names of, and the percentage of ownership 
of the awardee held by— 
‘‘(I) any individual who is not a citizen of the 
United States or a lawful permanent resident of 
the United States; or 
‘‘(II) any person that is not an individual and 
is not organized under the laws of a State or 
the United States;’’; 
(G) in subparagraph (E), as so redesignated, by striking 
‘‘and’’ at the end; 
(H) in subparagraph (F), as so redesignated, by striking 
the period at the end and inserting ‘‘; and’’; and 
(I) by adding at the end the following: 
‘‘(G) includes a timely and accurate list of any indi-
vidual or small business concern that has participated in 
the SBIR program or STTR program that has been—
H. R. 1540—552 
‘‘(i) convicted of a fraud-related crime involving 
funding received under the SBIR program or STTR 
program; or 
‘‘(ii) found civilly liable for a fraud-related violation 
involving funding received under the SBIR program 
or STTR program.’’; and 
(2) in paragraph (3), by adding at the end the following: 
‘‘(C) GOVERNMENT DATABASE.—Not later than 60 days 
after the date established by a Federal agency for submit-
ting applications or proposals for a Phase I or Phase II 
award under the SBIR program or STTR program, the 
head of the Federal agency shall submit to the Adminis-
trator the data required under paragraph (2) with respect 
to each small business concern that applies or submits 
a proposal for the Phase I or Phase II award.’’. 
SEC. 5136. ACCURACY IN FUNDING BASE CALCULATIONS. 
(a) IN GENERAL.—Not later than 1 year after the date of enact-
ment of this Act, and every year thereafter until the date that 
is 5 years after the date of enactment of this Act, the Comptroller 
General of the United States shall— 
(1) conduct a fiscal and management audit of the SBIR 
program and the STTR program for the applicable period to— 
(A) determine whether Federal agencies comply with 
the expenditure amount requirements under subsections 
(f)(1) and (n)(1) of section 9 of the Small Business Act 
(15 U.S.C. 638), as amended by this title; 
(B) assess the extent of compliance with the require-
ments of section 9(i)(2) of the Small Business Act (15 U.S.C. 
638(i)(2)) by Federal agencies participating in the SBIR 
program or the STTR program and the Administration; 
(C) assess whether it would be more consistent and 
effective to base the amount of the allocations under the 
SBIR program and the STTR program on a percentage 
of the research and development budget of a Federal 
agency, rather than the extramural budget of the Federal 
agency; and 
(D) determine the portion of the extramural research 
or research and development budget of a Federal agency 
that each Federal agency spends for administrative pur-
poses relating to the SBIR program or STTR program, 
and for what specific purposes it is used, including the 
portion, if any, of such budget the Federal agency spends 
for salaries and expenses, travel to visit applicants, out-
reach events, marketing, and technical assistance; and 
(2) submit a report to the Committee on Small Business 
and Entrepreneurship of the Senate and the Committee on 
Small Business and the Committee on Science, Space, and 
Technology of the House of Representatives regarding the audit 
conducted under paragraph (1), including the assessments 
required under subparagraph (B) and the determinations made 
under subparagraph (D) of paragraph (1). 
(b) DEFINITION OF APPLICABLE PERIOD.—In this section, the 
term ‘‘applicable period’’ means— 
(1) for the first report submitted under this section, the 
period beginning on October 1, 2005, and ending on September
H. R. 1540—553 
30 of the last full fiscal year before the date of enactment 
of this Act for which information is available; and 
(2) for the second and each subsequent report submitted 
under this section, the period— 
(A) beginning on October 1 of the first fiscal year 
after the end of the most recent full fiscal year relating 
to which a report under this section was submitted; and 
(B) ending on September 30 of the last full fiscal year 
before the date of the report. 
SEC. 5137. CONTINUED EVALUATION BY THE NATIONAL ACADEMY OF 
SCIENCES. 
Section 108 of the Small Business Reauthorization Act of 2000 
(15 U.S.C. 638 note) is amended by adding at the end the following: 
‘‘(e) EXTENSIONS AND ENHANCEMENTS OF AUTHORITY.— 
‘‘(1) IN GENERAL.—Not later than 6 months after the date 
of enactment of the SBIR/STTR Reauthorization Act of 2011, 
the head of each agency described in subsection (a), in consulta-
tion with the Small Business Administration, shall coopera-
tively enter into an agreement with the National Academy 
of Sciences for the National Research Council to, not later 
than 4 years after the date of enactment of the SBIR/STTR 
Reauthorization Act of 2011, and every 4 years thereafter— 
‘‘(A) continue the most recent study under this section 
relating to the issues described in subparagraphs (A), (B), 
(C), and (E) of subsection (a)(1); 
‘‘(B) conduct a comprehensive study of how the STTR 
program has stimulated technological innovation and tech-
nology transfer, including— 
‘‘(i) a review of the collaborations created between 
small businesses and research institutions, including 
an evaluation of the effectiveness of the program in 
stimulating new collaborations and any obstacles that 
may prevent or inhibit the creation of such collabora-
tions; 
‘‘(ii) an evaluation of the effectiveness of the pro-
gram at transferring technology and capabilities devel-
oped through Federal funding; 
‘‘(iii) to the extent practicable, an evaluation of 
the economic benefits achieved by the STTR program, 
including the economic rate of return; 
‘‘(iv) an analysis of how Federal agencies are using 
small businesses that have completed Phase II under 
the STTR program to fulfill their procurement needs; 
‘‘(v) an analysis of whether additional funds could 
be employed effectively by the STTR program; and 
‘‘(vi) an assessment of the systems and minimum 
performance standards relating to commercialization 
success established under section 9(qq) of the Small 
Business Act; 
‘‘(C) make recommendations with respect to the issues 
described in subparagraphs (A), (D), and (E) of subsection 
(a)(2) and subparagraph (B) of this paragraph; and 
‘‘(D) estimate, to the extent practicable, the number 
of jobs created by the SBIR program or STTR program 
of the agency.
H. R. 1540—554 
‘‘(2) CONSULTATION.—An agreement under paragraph (1) 
shall require the National Research Council to ensure that 
there is participation by and consultation with the small busi-
ness community, the Administration, and other interested par-
ties as described in subsection (b). 
‘‘(3) REPORTING.—An agreement under paragraph (1) shall 
require that not later than 4 years after the date of enactment 
of the SBIR/STTR Reauthorization Act of 2011, and every 4 
years thereafter, the National Research Council shall submit 
to the head of the agency entering into the agreement, the 
Committee on Small Business and Entrepreneurship of the 
Senate, and the Committee on Small Business and the Com-
mittee on Science, Space, and Technology of the House of Rep-
resentatives, a report regarding the study conducted under 
paragraph (1) and containing the recommendations described 
in paragraph (1).’’. 
SEC. 5138. TECHNOLOGY INSERTION REPORTING REQUIREMENTS. 
Section 9 of the Small Business Act (15 U.S.C. 638), as amended 
by this title, is further amended by adding at the end the following: 
‘‘(kk) PHASE III REPORTING.—The annual SBIR or STTR report 
to Congress by the Administration under subsection (b)(7) shall 
include, for each Phase III award— 
‘‘(1) the name of the agency or component of the agency 
or the non-Federal source of capital making the Phase III 
award; 
‘‘(2) the name of the small business concern or individual 
receiving the Phase III award; and 
‘‘(3) the dollar amount of the Phase III award.’’. 
SEC. 5139. INTELLECTUAL PROPERTY PROTECTIONS. 
(a) STUDY.—The Comptroller General of the United States shall 
conduct a study of the SBIR program to assess whether— 
(1) Federal agencies comply with the data rights protections 
for SBIR awardees and the technologies of SBIR awardees 
under section 9 of the Small Business Act (15 U.S.C. 638); 
(2) the laws and policy directives intended to clarify the 
scope of data rights, including in prototypes, mentor-protege 
relationships, and agreements with Federal laboratories, are 
sufficient to protect SBIR awardees; and 
(3) there is an effective grievance tracking process for SBIR 
awardees who have grievances against a Federal agency 
regarding data rights and a process for resolving those griev-
ances. 
(b) REPORT.—Not later than 18 months after the date of enact-
ment of this Act, the Comptroller General shall submit to the 
Committee on Small Business and Entrepreneurship of the Senate 
and the Committee on Small Business and the Committee on 
Science, Space, and Technology of the House of Representatives 
a report regarding the study conducted under subsection (a). 
SEC. 5140. OBTAINING CONSENT FROM SBIR AND STTR APPLICANTS 
TO RELEASE CONTACT INFORMATION TO ECONOMIC 
DEVELOPMENT ORGANIZATIONS. 
Section 9 of the Small Business Act (15 U.S.C. 638), as amended 
by this title, is further amended by adding at the end the following: 
‘‘(ll) 
CONSENT
TO
RELEASE
CONTACT
INFORMATION
TO 
ORGANIZATIONS.—
H. R. 1540—555 
‘‘(1) ENABLING CONCERN TO GIVE CONSENT.—Each Federal 
agency required by this section to conduct an SBIR program 
or an STTR program shall enable a small business concern 
that is an SBIR applicant or an STTR applicant to indicate 
to the Federal agency whether the Federal agency has the 
consent of the concern to— 
‘‘(A) identify the concern to appropriate local and State- 
level economic development organizations as an SBIR 
applicant or an STTR applicant; and 
‘‘(B) release the contact information of the concern 
to such organizations. 
‘‘(2) RULES.—The Administrator shall establish rules to 
implement this subsection. The rules shall include a require-
ment that a Federal agency include in the SBIR and STTR 
application a provision through which the applicant can indicate 
consent for purposes of paragraph (1).’’. 
SEC. 5141. PILOT TO ALLOW FUNDING FOR ADMINISTRATIVE, OVER-
SIGHT, AND CONTRACT PROCESSING COSTS. 
(a) IN GENERAL.—Section 9 of the Small Business Act (15 
U.S.C. 638), as amended by this title, is further amended by adding 
at the end the following: 
‘‘(mm) ASSISTANCE FOR ADMINISTRATIVE, OVERSIGHT, AND CON-
TRACT PROCESSING COSTS.— 
‘‘(1) IN GENERAL.—Subject to paragraph (3), for the 3 fiscal 
years beginning after the date of enactment of this subsection, 
the Administrator shall allow each Federal agency required 
to conduct an SBIR program to use not more than 3 percent 
of the funds allocated to the SBIR program of the Federal 
agency for— 
‘‘(A) the administration of the SBIR program or the 
STTR program of the Federal agency; 
‘‘(B) the provision of outreach and technical assistance 
relating to the SBIR program or STTR program of the 
Federal agency, including technical assistance site visits, 
personnel interviews, and national conferences; 
‘‘(C) the implementation of commercialization and out-
reach initiatives that were not in effect on the date of 
enactment of this subsection; 
‘‘(D) carrying out the program under subsection (y); 
‘‘(E) activities relating to oversight and congressional 
reporting, including waste, fraud, and abuse prevention 
activities; 
‘‘(F) targeted reviews of recipients of awards under 
the SBIR program or STTR program of the Federal agency 
that the head of the Federal agency determines are at 
high risk for fraud, waste, or abuse to ensure compliance 
with requirements of the SBIR program or STTR program, 
respectively; 
‘‘(G) the implementation of oversight and quality con-
trol measures, including verification of reports and invoices 
and cost reviews; 
‘‘(H) carrying out subsection (dd); 
‘‘(I) contract processing costs relating to the SBIR pro-
gram or STTR program of the Federal agency; and 
‘‘(J) funding for additional personnel and assistance 
with application reviews.
H. R. 1540—556 
‘‘(2) OUTREACH AND TECHNICAL ASSISTANCE.— 
‘‘(A) IN GENERAL.—Except as provided in subparagraph 
(B), a Federal agency participating in the program under 
this subsection shall use a portion of the funds authorized 
for uses under paragraph (1) to carry out the policy direc-
tive required under subsection (j)(2)(F) and to increase 
the participation of States with respect to which a low 
level of SBIR awards have historically been awarded. 
‘‘(B) WAIVER.—A Federal agency may request the 
Administrator to waive the requirement contained in 
subparagraph (A). Such request shall include an expla-
nation of why the waiver is necessary. The Administrator 
may grant the waiver based on a determination that the 
agency has demonstrated a sufficient need for the waiver, 
that the outreach objectives of the agency are being met, 
and that there is increased participation by States with 
respect to which a low level of SBIR awards have histori-
cally been awarded. 
‘‘(3) PERFORMANCE CRITERIA.—A Federal agency may not 
use funds as authorized under paragraph (1) until after the 
effective date of performance criteria, which the Administrator 
shall establish, to measure any benefits of using funds as 
authorized under paragraph (1) and to assess continuation 
of the authority under paragraph (1). 
‘‘(4) RULES.—Not later than 180 days after the date of 
enactment of this subsection, the Administrator shall issue 
rules to carry out this subsection. 
‘‘(5) COORDINATION WITH IG.—Each Federal agency shall 
coordinate the activities funded under subparagraph (E), (F), 
or (G) of paragraph (1) with their respective Inspectors General, 
when appropriate, and each Federal agency that allocates more 
than $50,000,000 to the SBIR program of the Federal agency 
for a fiscal year may share such funding with its Inspector 
General when the Inspector General performs such activities. 
‘‘(6) REPORTING.—The Administrator shall collect data and 
provide to the Committee on Small Business and Entrepreneur-
ship of the Senate and the Committee on Small Business, 
the Committee on Science, Space, and Technology, and the 
Committee on Appropriations of the House of Representatives 
a report on the use of funds under this subsection, including 
funds used to achieve the objectives of paragraph (2)(A) and 
any use of the waiver authority under paragraph (2)(B).’’. 
(b) TECHNICAL AND CONFORMING AMENDMENTS.— 
(1) IN GENERAL.—Section 9 of the Small Business Act (15 
U.S.C. 638), as amended by this title, is further amended— 
(A) in subsection (f)(2), by striking ‘‘shall not’’ and 
all that follows through ‘‘make available for the purpose’’ 
and inserting ‘‘shall not make available for the purpose’’; 
and 
(B) in subsection (y)— 
(i) by striking paragraph (4); and 
(ii) by redesignating paragraphs (5) and (6) as 
paragraphs (4) and (5), respectively. 
(2) TRANSITIONAL
RULE.—Notwithstanding the amend-
ments made by paragraph (1), subsections (f)(2) and (y)(4) of 
section 9 of the Small Business Act (15 U.S.C. 638), as in 
effect on the day before the date of enactment of this Act,
H. R. 1540—557 
shall continue to apply to each Federal agency until the effective 
date of the performance criteria established by the Adminis-
trator under subsection (mm)(3) of section 9 of the Small Busi-
ness Act, as added by subsection (a). 
(3) PROSPECTIVE REPEAL.—Effective on the first day of the 
fourth full fiscal year following the date of enactment of this 
Act, section 9 of the Small Business Act (15 U.S.C. 638), as 
amended by paragraph (1) of this section, is amended— 
(A) in subsection (f)(2), by striking ‘‘shall not make 
available for the purpose’’ and inserting the following: 
‘‘shall not— 
‘‘(A) use any of its SBIR budget established pursuant 
to paragraph (1) for the purpose of funding administrative 
costs of the program, including costs associated with sala-
ries and expenses; or 
‘‘(B) make available for the purpose’’; and 
(B) in subsection (y)— 
(i) by redesignating paragraphs (4) and (5) as para-
graphs (5) and (6), respectively; and 
(ii) by inserting after paragraph (3) the following: 
‘‘(4) FUNDING.— 
‘‘(A) IN GENERAL.—The Secretary of Defense and each 
Secretary of a military department may use not more than 
an amount equal to 1 percent of the funds available to 
the Department of Defense or the military department 
pursuant to the Small Business Innovation Research Pro-
gram for payment of expenses incurred to administer the 
Commercialization Readiness Program under this sub-
section. 
‘‘(B) LIMITATIONS.—The funds described in subpara-
graph (A)— 
‘‘(i) shall not be subject to the limitations on the 
use of funds in subsection (f)(2); and 
‘‘(ii) shall not be used to make Phase III awards.’’. 
SEC. 5142. GAO STUDY WITH RESPECT TO VENTURE CAPITAL OPER-
ATING COMPANY, HEDGE FUND, AND PRIVATE EQUITY 
FIRM INVOLVEMENT. 
Not later than 3 years after the date of enactment of this 
Act, and every 3 years thereafter, the Comptroller General of the 
United States shall— 
(1) conduct a study of the impact of requirements relating 
to venture capital operating company, hedge fund, and private 
equity firm involvement under section 9 of the Small Business 
Act; and 
(2) submit to Congress a report regarding the study con-
ducted under paragraph (1). 
SEC. 5143. REDUCING VULNERABILITY OF SBIR AND STTR PROGRAMS 
TO FRAUD, WASTE, AND ABUSE. 
(a) FRAUD, WASTE, AND ABUSE PREVENTION.— 
(1) AMENDMENTS REQUIRED FOR FRAUD, WASTE, AND ABUSE 
PREVENTION.—Not later than 90 days after the date of enact-
ment of this Act, the Administrator shall amend the SBIR 
Policy Directive and the STTR Policy Directive to include meas-
ures to prevent fraud, waste, and abuse in the SBIR program 
and the STTR program.