IB 
Union Calendar No. 85 
112TH CONGRESS 
1ST SESSION H. R. 1425 
[Report No. 112–90, Parts I and II] 
To reauthorize and improve the SBIR and STTR programs, and for other 
purposes. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 7, 2011 
Mrs. ELLMERS (for herself, Mr. ALTMIRE, Mr. QUAYLE, Mr. WU, Mr. HALL, 
Ms. EDDIE BERNICE JOHNSON of Texas, Mr. GRAVES of Missouri, and 
Mr. RICHMOND) introduced the following bill; which was referred to the 
Committee on Science, Space, and Technology, and in addition to the 
Committees on Small Business and Armed Services, for a period to be 
subsequently determined by the Speaker, in each case for consideration 
of such provisions as fall within the jurisdiction of the committee con-
cerned 
MAY 3, 2011 
Rereferred to the Committee on Small Business, and in addition to the Com-
mittees on Science, Space, and Technology and Armed Services, for a pe-
riod to be subsequently determined by the Speaker, in each case for con-
sideration of such provisions as fall within the jurisdiction of the com-
mittee concerned 
MAY 26, 2011 
Reported from the Committee on Science, Space, and Technology with an 
amendment 
[Strike out all after the enacting clause and insert the part printed in italic] 
JULY 1, 2011 
Additional sponsors: Mr. LIPINSKI, Mrs. BIGGERT, Mr. COBLE, Mr. WEST, 
Mr. CLARKE of Michigan, Mr. LUJA´N, Mr. WOMACK, Mrs. LOWEY, Mr. 
HANNA, Mr. WALSH of Illinois, Mr. CHABOT, Mr. BARTLETT, Mr. 
MULVANEY, Mr. BARLETTA, Mr. TIPTON, Mr. LANCE, Mr. JONES, Ms. 
HERRERA BEUTLER, and Mr. SMITH of Texas 
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6652
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
JULY 1, 2011 
Reported from the Committee on Small Business with an amendment 
[Strike out all after the enacting clause and insert the part printed in boldface roman] 
JULY 1, 2011 
Committee on Armed Services discharged; committed to the Committee of the 
Whole House on the State of the Union and ordered to be printed 
[For text of introduced bill, see copy of bill as introduced on April 7, 2011] 
A BILL 
To reauthorize and improve the SBIR and STTR programs, 
and for other purposes. 
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6652
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Creating Jobs Through 
Small Business Innovation Act of 2011’’. 
SEC. 2. TABLE OF CONTENTS. 
The table of contents for this Act is as follows: 
Sec. 1. Short title. 
Sec. 2. Table of contents. 
Sec. 3. Definitions. 
TITLE I—REAUTHORIZATION OF THE SBIR AND STTR PROGRAMS 
Sec. 101. Extension of termination dates. 
Sec. 102. SBIR and STTR award levels. 
Sec. 103. Agency and program flexibility. 
Sec. 104. Elimination of Phase II invitations. 
Sec. 105. Phase flexibility. 
Sec. 106. Participation by firms with substantial investment from multiple ven-
ture capital operating companies, hedge funds, or private equity 
firms in a portion of the SBIR program. 
Sec. 107. Ensuring that innovative small businesses with substantial investment 
from venture capital operating companies, hedge funds, or pri-
vate equity firms are able to participate in the SBIR and STTR 
programs. 
Sec. 108. SBIR and STTR special acquisition preference. 
Sec. 109. Collaborating with Federal laboratories and research and development 
centers. 
Sec. 110. Notice requirement. 
Sec. 111. Additional SBIR and STTR Awards. 
TITLE II—OUTREACH AND COMMERCIALIZATION INITIATIVES 
Sec. 201. Technical assistance for awardees. 
Sec. 202. Commercialization Readiness Program at Department of Defense. 
Sec. 203. Commercialization Readiness Pilot Program for civilian agencies. 
Sec. 204. Interagency Policy Committee. 
Sec. 205. Clarifying the definition of ‘‘Phase III’’. 
Sec. 206. Shortened period for final decisions on proposals and applications. 
Sec. 207. Phase 0 Proof of Concept Partnership pilot program. 
TITLE III—OVERSIGHT AND EVALUATION 
Sec. 301. Streamlining annual evaluation requirements. 
Sec. 302. Data collection from agencies for SBIR. 
Sec. 303. Data collection from agencies for STTR. 
Sec. 304. Public database. 
Sec. 305. Government database. 
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6213
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
Sec. 306. Accuracy in funding base calculations. 
Sec. 307. Continued evaluation by the National Academy of Sciences. 
Sec. 308. Technology insertion reporting requirements. 
Sec. 309. Obtaining consent from SBIR and STTR applicants to release contact 
information to economic development organizations. 
Sec. 310. Pilot to allow funding for administrative, oversight, and contract proc-
essing costs. 
Sec. 311. GAO study with respect to venture capital operating company, hedge 
fund, and private equity firm involvement. 
Sec. 312. Reducing vulnerability of SBIR and STTR programs to fraud, waste, 
and abuse. 
Sec. 313. Simplified paperwork requirements. 
Sec. 314. Reducing fraud, waste, and abuse. 
TITLE IV—POLICY DIRECTIVES 
Sec. 401. Conforming amendments to the SBIR and the STTR Policy Directives. 
TITLE V—OTHER PROVISIONS 
Sec. 501. Report on SBIR and STTR program goals. 
Sec. 502. Competitive selection procedures for SBIR and STTR programs. 
Sec. 503. Loan restrictions. 
Sec. 504. Program diversification. 
SEC. 3. DEFINITIONS. 
In this Act— 
(1) the terms ‘‘Administration’’ and ‘‘Adminis-
trator’’ mean the Small Business Administration and 
the Administrator thereof, respectively; 
(2) the terms ‘‘extramural budget’’, ‘‘Federal 
agency’’, ‘‘Small Business Innovation Research Pro-
gram’’, ‘‘SBIR’’, ‘‘Small Business Technology Trans-
fer Program’’, and ‘‘STTR’’ have the meanings given 
such terms in section 9 of the Small Business Act (15 
U.S.C. 638); and 
(3) the term ‘‘small business concern’’ has the 
meaning given that term under section 3 of the Small 
Business Act (15 U.S.C. 632). 
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6203
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
TITLE I—REAUTHORIZATION OF 
THE SBIR AND STTR PROGRAMS 
SEC. 101. EXTENSION OF TERMINATION DATES. 
(a) SBIR.—Section 9(m) of the Small Business Act 
(15 U.S.C. 638(m)) is amended— 
(1) by striking ‘‘TERMINATION.—’’ and all that 
follows through ‘‘the authorization’’ and inserting 
‘‘TERMINATION.—The authorization’’; 
(2) by striking ‘‘2008’’ and inserting ‘‘2014’’; 
and 
(3) by striking paragraph (2). 
(b) STTR.—Section 9(n)(1)(A) of the Small Business 
Act (15 U.S.C. 638(n)(1)(A)) is amended— 
(1) by striking ‘‘IN GENERAL.—’’ and all that 
follows through ‘‘with respect’’ and inserting ‘‘IN GEN-
ERAL.—With respect’’; 
(2) by striking ‘‘2009’’ and inserting ‘‘2014’’; 
and 
(3) by striking clause (ii). 
SEC. 102. SBIR AND STTR AWARD LEVELS. 
(a) SBIR ADJUSTMENTS.—Section 9(j)(2)(D) of the 
Small Business Act (15 U.S.C. 638(j)(2)(D)) is amended— 
(1) by striking ‘‘$100,000’’ and inserting 
‘‘$150,000’’; and 
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6203
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
(2) by striking ‘‘$750,000’’ and inserting 
‘‘$1,000,000’’. 
(b) STTR ADJUSTMENTS.—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 inserting 
‘‘$150,000’’; and 
(2) by striking ‘‘$750,000’’ and inserting 
‘‘$1,000,000’’. 
(c) ANNUAL ADJUSTMENTS.—Section 9 of the Small 
Business Act (15 U.S.C. 638) is amended— 
(1) in subsection (j)(2)(D), by striking ‘‘once 
every 5 years to reflect economic adjustments and 
programmatic considerations’’ and inserting ‘‘every 
year for inflation’’; and 
(2) in subsection (p)(2)(B)(ix), as amended by 
subsection (b) of this section, by inserting ‘‘(each of 
which the Administrator shall adjust for inflation an-
nually)’’ after ‘‘$1,000,000,’’. 
(d) LIMITATION ON SIZE OF AWARDS.—Section 9 of 
the Small Business Act (15 U.S.C. 638), as amended by 
this Act, is further amended by adding at the end the fol-
lowing: 
‘‘(aa) LIMITATION ON SIZE OF AWARDS.— 
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6203
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
‘‘(1) LIMITATION.—No Federal agency may issue 
an award under the SBIR program or the STTR pro-
gram if the size of the award exceeds the award guide-
lines established under this section by more than 50 
percent. 
‘‘(2) MAINTENANCE OF INFORMATION.—Partici-
pating agencies shall maintain information on 
awards exceeding the guidelines established under this 
section, including— 
‘‘(A) the amount of each award; 
‘‘(B) a justification for exceeding the award 
amount; 
‘‘(C) the identity and location of each 
award recipient; and 
‘‘(D) whether an award recipient has re-
ceived any venture capital, hedge fund, or pri-
vate equity firm investment and, if so, whether 
the recipient is majority-owned by multiple ven-
ture capital operating companies, hedge funds, 
or private equity firms. 
‘‘(3) REPORTS.—The Administrator shall in-
clude the information described in paragraph (2) in 
the annual report of the Administrator to Congress. 
‘‘(4) RULE OF CONSTRUCTION.—Nothing in this 
subsection shall be construed to prevent a Federal 
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6203
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
the determinations described in subsection (e)(4)(A) with 
respect to such project despite not having been provided a 
Phase I award.’’. 
SEC. 106. PARTICIPATION BY FIRMS WITH SUBSTANTIAL IN-
VESTMENT FROM MULTIPLE VENTURE CAP-
ITAL OPERATING COMPANIES, HEDGE FUNDS, 
OR PRIVATE EQUITY FIRMS IN A PORTION OF 
THE SBIR PROGRAM. 
(a) IN GENERAL.—Section 9 of the Small Business Act 
(15 U.S.C. 638), as amended by this Act, is further amend-
ed by adding at the end the following: 
‘‘(dd) PARTICIPATION OF SMALL BUSINESS CONCERNS 
MAJORITY-OWNED BY VENTURE CAPITAL OPERATING COM-
PANIES, HEDGE FUNDS, OR PRIVATE EQUITY FIRMS IN 
THE SBIR PROGRAM.— 
‘‘(1) AUTHORITY.—Upon a written determina-
tion described in paragraph (2) provided to the Ad-
ministrator, 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 Representa-
tives not later than 30 days before the date on which 
an award is made— 
‘‘(A) the Director of the National Institutes 
of Health, the Secretary of Energy, the Adminis-
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6203
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
how the use of the authority under paragraph (1) 
will— 
‘‘(A) induce additional venture capital, 
hedge fund, or private equity firm funding of 
small business innovations; 
‘‘(B) substantially contribute to the mission 
of the Federal agency; 
‘‘(C) demonstrate a need for public research; 
and 
‘‘(D) otherwise fulfill the capital needs of 
small business concerns for additional financing 
for the SBIR project. 
‘‘(3) REGISTRATION.—A small business concern 
that is majority-owned by multiple venture capital 
operating companies, hedge funds, or private equity 
firms and qualified for participation in the program 
authorized under paragraph (1) shall— 
‘‘(A) register with the Administrator on the 
date that the small business concern submits an 
application for an award under the SBIR pro-
gram; and 
‘‘(B) indicate in any SBIR proposal that 
the small business concern is registered under 
subparagraph (A) as majority-owned by multiple 
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00012
Fmt 6652
Sfmt 6203
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
venture capital operating companies, hedge 
funds, or private equity firms. 
‘‘(4) COMPLIANCE.— 
‘‘(A) IN GENERAL.—The head of a Federal 
agency that makes an award under this sub-
section during a fiscal year shall collect and sub-
mit to the Administrator data relating to the 
number and dollar amount of Phase I awards, 
Phase II awards, and any other category of 
awards by the Federal agency under the SBIR 
program during that fiscal year. 
‘‘(B) ANNUAL REPORTING.—The Adminis-
trator shall include as part of each annual re-
port by the Administration under subsection 
(b)(7) any data submitted under subparagraph 
(A) and a discussion of the compliance of each 
Federal agency that makes an award under this 
subsection during the fiscal year with the max-
imum percentages under paragraph (1). 
‘‘(5) 
ENFORCEMENT.—If 
a 
Federal 
agency 
awards more than the percent of the funds allocated 
for the SBIR program of the Federal agency author-
ized under paragraph (1) for a purpose described in 
paragraph (1), the head of the Federal agency shall 
transfer an amount equal to the amount awarded in 
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00013
Fmt 6652
Sfmt 6203
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
excess of the amount authorized under paragraph (1) 
to the funds for general SBIR programs from the non- 
SBIR and non-STTR research and development funds 
of the Federal agency not later than 180 days after 
the date on which the Federal agency made the award 
that caused the total awarded under paragraph (1) to 
be more than the amount authorized under paragraph 
(1) for a purpose described in paragraph (1). 
‘‘(6) FINAL DECISIONS ON APPLICATIONS UNDER 
THE SBIR PROGRAM.— 
‘‘(A) DEFINITION.—In this paragraph, the 
term ‘covered small business concern’ means a 
small business concern that— 
‘‘(i) was not majority-owned by mul-
tiple venture capital operating companies, 
hedge funds, or private equity firms on the 
date on which the small business concern 
submitted an application in response to a 
solicitation under the SBIR programs; and 
‘‘(ii) on the date of the award under 
the SBIR program is majority-owned by 
multiple venture capital operating compa-
nies, hedge funds, or private equity firms. 
‘‘(B) IN
GENERAL.—If a Federal agency 
does not make an award under a solicitation 
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00014
Fmt 6652
Sfmt 6203
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
under the SBIR program before the date that is 
9 months after the date on which the period for 
submitting applications under the solicitation 
ends— 
‘‘(i) a covered small business concern is 
eligible to receive the award, without regard 
to whether the covered small business con-
cern meets the requirements for receiving an 
award under the SBIR program for a small 
business concern that is majority-owned by 
multiple venture capital operating compa-
nies, hedge funds, or private equity firms, if 
the covered small business concern meets all 
other requirements for such an award; and 
‘‘(ii) the head of the Federal agency 
shall transfer an amount equal to any 
amount awarded to a covered small business 
concern under the solicitation to the funds 
for general SBIR programs from the non- 
SBIR and non-STTR research and develop-
ment funds of the Federal agency, not later 
than 90 days after the date on which the 
Federal agency makes the award. 
‘‘(7) EVALUATION CRITERIA.—A Federal agency 
may not use investment of venture capital or invest-
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00015
Fmt 6652
Sfmt 6203
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
ment from hedge funds or private equity firms as a 
criterion for the award of contracts under the SBIR 
program or STTR program.’’. 
(b) TECHNICAL AND CONFORMING AMENDMENT.—Sec-
tion 3 of the Small Business Act (15 U.S.C. 632) is amend-
ed by adding at the end the following: 
‘‘(aa) VENTURE CAPITAL OPERATING COMPANY.—In 
this Act, the term ‘venture capital operating company’ 
means an entity described in clause (i), (v), or (vi) of sec-
tion 121.103(b)(5) of title 13, Code of Federal Regulations 
(or any successor thereto). 
‘‘(bb) HEDGE FUND.—In this Act, the term ‘hedge 
fund’ has the meaning given that term in section 13(h)(2) 
of the Bank Holding Company Act of 1956 (12 U.S.C. 
1851(h)(2)). 
‘‘(cc) PRIVATE EQUITY FIRM.—In this Act, the term 
‘private equity firm’ has the meaning given the term ‘pri-
vate equity fund’ in section 13(h)(2) of the Bank Holding 
Company Act of 1956 (12 U.S.C. 1851(h)(2)).’’. 
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00016
Fmt 6652
Sfmt 6203
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
SEC. 107. ENSURING THAT INNOVATIVE SMALL BUSINESSES 
WITH SUBSTANTIAL INVESTMENT FROM VEN-
TURE 
CAPITAL 
OPERATING 
COMPANIES, 
HEDGE FUNDS, OR PRIVATE EQUITY FIRMS 
ARE ABLE TO PARTICIPATE IN THE SBIR AND 
STTR PROGRAMS. 
Section 9 of the Small Business Act (15 U.S.C. 638), 
as amended by this Act, is further amended by adding at 
the end the following: 
‘‘(ee) VENTURE
CAPITAL
OPERATING
COMPANIES, 
HEDGE FUNDS, AND PRIVATE EQUITY FIRMS.—Effective 
only for the SBIR and STTR programs the following shall 
apply: 
‘‘(1) A business concern that has more than 500 
employees shall not qualify as a small business con-
cern. 
‘‘(2) In determining whether a small business 
concern is independently owned and operated under 
section 3(a)(1) or meets the small business size stand-
ards instituted under section 3(a)(2), the Adminis-
trator shall not consider a business concern to be af-
filiated with a venture capital operating company, 
hedge fund, or private equity firm (or with any other 
business that the venture capital operating company, 
hedge fund, or private equity firm has financed) if— 
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00017
Fmt 6652
Sfmt 6203
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
‘‘(A) the venture capital operating com-
pany, hedge fund, or private equity firm does 
not own 50 percent or more of the business con-
cern; and 
‘‘(B) employees of the venture capital oper-
ating company, hedge fund, or private equity 
firm do not constitute a majority of the board of 
directors of the business concern. 
‘‘(3) A business concern shall be deemed to be 
‘independently owned and operated’ if— 
‘‘(A) it is owned in majority part by one or 
more natural persons or venture capital oper-
ating companies, hedge funds, or private equity 
firms; 
‘‘(B) there is no single venture capital oper-
ating company, hedge fund, or private equity 
firm that owns 50 percent or more of the busi-
ness concern; and 
‘‘(C) there is no single venture capital oper-
ating company, hedge fund, or private equity 
firm the employees of which constitute a major-
ity of the board of directors of the business con-
cern. 
‘‘(4) If a venture capital operating company, 
hedge fund, or private equity firm controlled by a 
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00018
Fmt 6652
Sfmt 6203
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
business with more than 500 employees (in this para-
graph referred to as a ‘VCOC, hedge fund, or private 
equity firm under large business control’) has an 
ownership interest in a small business concern that is 
owned in majority part by venture capital operating 
companies, hedge funds, or private equity firms, the 
small business concern is eligible to receive an award 
under the SBIR or STTR program only if— 
‘‘(A) not more than two VCOCs, hedge 
funds, or private equity firms under large busi-
ness control have an ownership interest in the 
small business concern; and 
‘‘(B) the VCOCs, hedge funds, or private eq-
uity firms under large business control do not 
collectively own more than 20 percent of the 
small business concern.’’. 
SEC. 108. SBIR AND STTR SPECIAL ACQUISITION PREF-
ERENCE. 
Section 9(r) of the Small Business Act (15 U.S.C. 
638(r)) is amended by adding at the end the following: 
‘‘(4) PHASE III AWARDS.—To the greatest extent 
practicable, Federal agencies and Federal prime con-
tractors shall issue Phase III awards relating to tech-
nology, including sole source awards, to the SBIR 
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00019
Fmt 6652
Sfmt 6203
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
and STTR award recipients that developed the tech-
nology.’’. 
SEC. 109. COLLABORATING WITH FEDERAL LABORATORIES 
AND RESEARCH AND DEVELOPMENT CEN-
TERS. 
Section 9 of the Small Business Act (15 U.S.C. 638), 
as amended by this Act, is further amended by adding at 
the end the following: 
‘‘(ff) COLLABORATING WITH FEDERAL LABORATORIES 
AND RESEARCH AND DEVELOPMENT CENTERS.— 
‘‘(1) AUTHORIZATION.—Subject to the limita-
tions under this section, the head of each partici-
pating Federal agency may make SBIR and STTR 
awards to any eligible small business concern that— 
‘‘(A) intends to enter into an agreement 
with a Federal laboratory or federally funded re-
search and development center for portions of the 
activities to be performed under that award; or 
‘‘(B) has entered into a cooperative research 
and development agreement (as defined in sec-
tion 12(d) of the Stevenson-Wydler Technology 
Innovation Act of 1980 (15 U.S.C. 3710a(d))) 
with a Federal laboratory. 
‘‘(2) PROHIBITION.—No Federal agency shall— 
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00020
Fmt 6652
Sfmt 6203
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
‘‘(A) condition an SBIR or STTR award 
upon entering into agreement with any Federal 
laboratory or any federally funded laboratory or 
research and development center for any portion 
of the activities to be performed under that 
award; 
‘‘(B) approve an agreement between a small 
business concern receiving a SBIR or STTR 
award and a Federal laboratory or federally 
funded laboratory or research and development 
center, if the small business concern performs a 
lesser portion of the activities to be performed 
under that award than required by this section 
and by the SBIR Policy Directive and the STTR 
Policy Directive of the Administrator; or 
‘‘(C) approve an agreement that violates 
any provision, including any data rights protec-
tions provision, of this section or the SBIR and 
the STTR Policy Directives. 
‘‘(3) IMPLEMENTATION.—Not later than 180 
days after the date of enactment of this subsection, the 
Administrator shall modify the SBIR Policy Direc-
tive and the STTR Policy Directive issued under this 
section to ensure that small business concerns— 
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00021
Fmt 6652
Sfmt 6203
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
‘‘(A) have the flexibility to use the resources 
of the Federal laboratories and federally funded 
research and development centers; and 
‘‘(B) are not mandated to enter into agree-
ment with any Federal laboratory or any feder-
ally funded laboratory or research and develop-
ment center as a condition of an award. 
‘‘(4) ADVANCE PAYMENT.—If a small business 
concern receiving an award under this section enters 
into an agreement with a Federal laboratory or feder-
ally funded research and development center for por-
tions of the activities to be performed under that 
award, the Federal laboratory or federally funded re-
search and development center may not require ad-
vance payment from the small business concern in an 
amount greater than the amount necessary to pay for 
30 days of such activities.’’. 
SEC. 110. NOTICE REQUIREMENT. 
(a) SBIR PROGRAM.—Section 9(g) of the Small Busi-
ness Act (15 U.S.C. 638(g)) is amended— 
(1) in paragraph (10), by striking ‘‘and’’ at the 
end; 
(2) in paragraph (11), by striking the period at 
the end and inserting ‘‘; and’’; and 
(3) by adding at the end the following: 
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00022
Fmt 6652
Sfmt 6203
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
‘‘(12) provide timely notice to the Administrator 
of any case or controversy before any Federal judicial 
or administrative tribunal concerning the SBIR pro-
gram of the Federal agency.’’. 
(b) STTR PROGRAM.—Section 9(o) of the Small Busi-
ness Act (15 U.S.C. 638(o)) is amended— 
(1) by striking paragraph (15); 
(2) in paragraph (16), by striking the period at 
the end and inserting ‘‘; and’’; 
(3) by redesignating paragraph (16) as para-
graph (15); and 
(4) by adding at the end the following: 
‘‘(16) provide timely notice to the Administrator 
of any case or controversy before any Federal judicial 
or administrative tribunal concerning the STTR pro-
gram of the Federal agency.’’. 
SEC. 111. ADDITIONAL SBIR AND STTR AWARDS. 
Section 9 of the Small Business Act (15 U.S.C. 638), 
as amended by this Act, is further amended by adding at 
the end the following: 
‘‘(gg) ADDITIONAL SBIR AND STTR AWARDS.— 
‘‘(1) EXPRESS AUTHORITY FOR AWARDING A SE-
QUENTIAL PHASE II AWARD.—A small business con-
cern that receives a Phase II SBIR award or a Phase 
II STTR award for a project remains eligible to re-
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00023
Fmt 6652
Sfmt 6203
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
ceive one additional Phase II SBIR award or Phase 
II STTR award for continued work on that project. 
‘‘(2) PREVENTING
DUPLICATIVE
AWARDS.—The 
head of a Federal agency shall verify that any activ-
ity to be performed with respect to a project with a 
Phase I or Phase II SBIR or STTR award has not 
been funded under the SBIR program or STTR pro-
gram of another Federal agency.’’. 
TITLE II—OUTREACH AND COM-
MERCIALIZATION 
INITIA-
TIVES 
SEC. 201. TECHNICAL ASSISTANCE FOR AWARDEES. 
Section 9(q) of the Small Business Act (15 U.S.C. 
638(q)) is amended— 
(1) in paragraph (1)— 
(A) by inserting ‘‘or STTR program’’ after 
‘‘SBIR program’’; and 
(B) by striking ‘‘SBIR projects’’ and insert-
ing ‘‘SBIR or STTR projects’’; 
(2) in paragraph (2), by striking ‘‘3 years’’ and 
inserting ‘‘5 years’’; and 
(3) in paragraph (3)— 
(A) in subparagraph (A)— 
(i) by inserting ‘‘or STTR’’ after 
‘‘SBIR’’; and 
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00024
Fmt 6652
Sfmt 6203
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
(ii) by striking ‘‘$4,000’’ and inserting 
‘‘$5,000’’; 
(B) by striking subparagraph (B) and in-
serting the following: 
‘‘(B) PHASE
II.—A Federal agency de-
scribed in paragraph (1) may— 
‘‘(i) provide to the recipient of a Phase 
II SBIR or STTR award, through a vendor 
selected under paragraph (2), the services 
described in paragraph (1), in an amount 
equal to not more than $5,000 per year; or 
‘‘(ii) authorize the recipient of a Phase 
II SBIR or STTR award to purchase the 
services described in paragraph (1), in an 
amount equal to not more than $5,000 per 
year, which shall be in addition to the 
amount of the recipient’s award.’’; and 
(C) by adding at the end the following: 
‘‘(C) FLEXIBILITY.—In carrying out sub-
paragraphs (A) and (B), each Federal agency 
shall provide the allowable amounts to a recipi-
ent that meets the eligibility requirements under 
the applicable subparagraph, if the recipient re-
quests to seek technical assistance from an indi-
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00025
Fmt 6652
Sfmt 6203
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
vidual or entity other than the vendor selected 
under paragraph (2) by the Federal agency. 
‘‘(D) LIMITATION.—A Federal agency may 
not— 
‘‘(i) use the amounts authorized under 
subparagraph (A) or (B) unless the vendor 
selected under paragraph (2) provides the 
technical assistance to the recipient; or 
‘‘(ii) enter a contract with a vendor 
under paragraph (2) under which the 
amount provided for technical assistance is 
based on total number of Phase I or Phase 
II awards.’’. 
SEC. 202. COMMERCIALIZATION READINESS PROGRAM AT 
DEPARTMENT OF DEFENSE. 
(a) IN GENERAL.—Section 9(y) of the Small Business 
Act (15 U.S.C. 638(y)) is amended— 
(1) in the subsection heading, by striking 
‘‘PILOT’’ and inserting ‘‘READINESS’’; 
(2) by striking ‘‘Pilot’’ each place that term ap-
pears and inserting ‘‘Readiness’’; 
(3) in paragraph (1)— 
(A) by inserting ‘‘or Small Business Tech-
nology Transfer Program’’ after ‘‘Small Business 
Innovation Research Program’’; and 
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00026
Fmt 6652
Sfmt 6203
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
(B) by adding at the end the following: 
‘‘The authority to create and administer a Com-
mercialization Readiness Program under this 
subsection may not be construed to eliminate or 
replace any other SBIR program or STTR pro-
gram that enhances the insertion or transition of 
SBIR or STTR technologies, including any such 
program in effect on the date of enactment of the 
National Defense Authorization Act for Fiscal 
Year 2006 (Public Law 109–163; 119 Stat. 
3136).’’; 
(4) in paragraph (2), by inserting ‘‘or Small 
Business Technology Transfer Program’’ after ‘‘Small 
Business Innovation Research Program’’; 
(5) by striking paragraphs (5) and (6); and 
(6) by inserting after paragraph (4) the fol-
lowing: 
‘‘(5) INSERTION INCENTIVES.—For any contract 
with a value of not less than $100,000,000, the Sec-
retary of Defense is authorized to— 
‘‘(A) establish goals for the transition of 
Phase III technologies in subcontracting plans; 
and 
‘‘(B) require a prime contractor on such a 
contract to report the number and dollar amount 
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00027
Fmt 6652
Sfmt 6203
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
of contracts entered into by that prime con-
tractor for Phase III SBIR or STTR projects. 
‘‘(6) GOAL FOR SBIR AND STTR TECHNOLOGY IN-
SERTION.—The Secretary of Defense shall— 
‘‘(A) set a goal to increase the number of 
Phase II SBIR contracts and the number of 
Phase II STTR contracts awarded by that Sec-
retary that lead to technology transition into 
programs of record or fielded systems; 
‘‘(B) use incentives in effect on the date of 
enactment of the Creating Jobs Through Small 
Business Innovation Act of 2011, or create new 
incentives, to encourage agency program man-
agers and prime contractors to meet the goal 
under subparagraph (A); and 
‘‘(C) include in the annual report to Con-
gress the percentage of contracts described in sub-
paragraph (A) awarded by that Secretary, and 
information on the ongoing status of projects 
funded through the Commercialization Readiness 
Program and efforts to transition these tech-
nologies into programs of record or fielded sys-
tems.’’. 
(b) TECHNICAL AND CONFORMING AMENDMENT.—Sec-
tion 9(i)(1) of the Small Business Act (15 U.S.C. 638(i)(1)) 
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00028
Fmt 6652
Sfmt 6203
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
is amended by inserting ‘‘(including awards under sub-
section (y))’’ after ‘‘the number of awards’’. 
SEC. 203. COMMERCIALIZATION READINESS PILOT PRO-
GRAM FOR CIVILIAN AGENCIES. 
Section 9 of the Small Business Act (15 U.S.C. 638), 
as amended by this Act, is further amended by adding at 
the end the following: 
‘‘(hh) PILOT PROGRAM.— 
‘‘(1) AUTHORIZATION.—The head of each covered 
Federal agency may allocate not more than 10 per-
cent of the funds allocated to the SBIR program and 
the STTR program of the covered Federal agency— 
‘‘(A) for awards for technology development, 
testing, evaluation, and commercialization as-
sistance for SBIR and STTR Phase II tech-
nologies; or 
‘‘(B) to support the progress of research, re-
search and development, and commercialization 
conducted under the SBIR or STTR programs to 
Phase III. 
‘‘(2) APPLICATION BY FEDERAL AGENCY.— 
‘‘(A) IN
GENERAL.—A covered Federal 
agency may not establish a pilot program unless 
the covered Federal agency makes a written ap-
plication to the Administrator, not later than 90 
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00029
Fmt 6652
Sfmt 6203
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
days before the first day of the fiscal year in 
which the pilot program is to be established, that 
describes a compelling reason that additional in-
vestment in SBIR or STTR technologies is nec-
essary, including unusually high regulatory, sys-
tems integration, or other costs relating to devel-
opment or manufacturing of identifiable, highly 
promising small business technologies or a class 
of such technologies expected to substantially ad-
vance the mission of the agency. 
‘‘(B) DETERMINATION.—The Administrator 
shall— 
‘‘(i) make a determination regarding 
an application submitted under subpara-
graph (A) not later than 30 days before the 
first day of the fiscal year for which the ap-
plication is submitted; 
‘‘(ii) publish the determination in the 
Federal Register; and 
‘‘(iii) make a copy of the determina-
tion and any related materials available to 
the Committee on Small Business and En-
trepreneurship of the Senate and the Com-
mittee on Small Business and the Com-
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00030
Fmt 6652
Sfmt 6203
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
mittee on Science, Space, and Technology of 
the House of Representatives. 
‘‘(3) MAXIMUM AMOUNT OF AWARD.—The head of 
a covered Federal agency may not make an award 
under a pilot program in excess of 3 times the dollar 
amounts generally established for Phase II awards 
under subsection (j)(2)(D) or (p)(2)(B)(ix). 
‘‘(4) REGISTRATION.—Any applicant that re-
ceives an award under a pilot program shall register 
with the Administrator in a registry that is available 
to the public. 
‘‘(5) AWARD
CRITERIA
OR
CONSIDERATION.— 
When making an award under this section, the head 
of a covered Federal agency shall give consideration 
to whether the technology to be supported by the 
award is likely to be manufactured in the United 
States. 
‘‘(6) REPORT.—The head of each covered Federal 
agency shall include in the annual report of the cov-
ered Federal agency to the Administrator an analysis 
of the various activities considered for inclusion in 
the pilot program of the covered Federal agency and 
a statement of the reasons why each activity consid-
ered was included or not included, as the case may 
be. 
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00031
Fmt 6652
Sfmt 6203
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
‘‘(7) TERMINATION.—The authority to establish 
a pilot program under this section expires at the end 
of fiscal year 2014. 
‘‘(8) DEFINITIONS.—In this subsection— 
‘‘(A) the term ‘covered Federal agency’— 
‘‘(i) means a Federal agency partici-
pating in the SBIR program or the STTR 
program; and 
‘‘(ii) does not include the Department 
of Defense; and 
‘‘(B) the term ‘pilot program’ means the 
program established under paragraph (1).’’. 
SEC. 204. INTERAGENCY POLICY COMMITTEE. 
(a) ESTABLISHMENT.—The Director of the Office of 
Science and Technology Policy shall establish an Inter-
agency SBIR/STTR Policy Committee. 
(b) DUTIES.—The Interagency SBIR/STTR Policy 
Committee shall review the following issues and make policy 
recommendations on ways to improve program effectiveness 
and efficiency: 
(1) The public and government databases de-
scribed in section 9(k) of the Small Business Act (15 
U.S.C. 638(k)). 
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00032
Fmt 6652
Sfmt 6203
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
(2) Federal agency flexibility in establishing 
Phase I and II award sizes, including appropriate 
criteria for exercising such flexibility. 
(3) Commercialization assistance best practices 
of 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 that business con-
cerns face after Phase II but before commercialization. 
(4) Developing and incorporating a standard 
evaluation framework to enable systematic assessment 
of SBIR and STTR, including through improved 
tracking of awards and outcomes and development of 
performance measures for the SBIR program and 
STTR program of each Federal agency. 
(c) REPORTS.—The Interagency SBIR/STTR Policy 
Committee shall transmit to the Committee on Science, 
Space, and Technology and the Committee on Small Busi-
ness 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 (b)(1) not later than 1 year after the 
date of enactment of this Act; 
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00033
Fmt 6652
Sfmt 6203
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
(2) a report on its review and recommendations 
under subsection (b)(2) not later than 18 months after 
the date of enactment of this Act; 
(3) a report on its review and recommendations 
under subsection (b)(3) not later than 2 years after 
the date of enactment of this Act; and 
(4) a report on its review and recommendations 
under subsection (b)(4) not later than 2 years after 
the date of enactment of this Act. 
SEC. 205. CLARIFYING THE DEFINITION OF ‘‘PHASE III’’. 
(a) PHASE III AWARDS.—Section 9(e) of the Small 
Business Act (15 U.S.C. 638(e)), as amended by this Act, 
is further amended— 
(1) in paragraph (4)(C), in the matter preceding 
clause (i), by inserting ‘‘for work that derives from, 
extends, or completes efforts made under prior fund-
ing agreements under the SBIR program’’ after 
‘‘phase’’; 
(2) in paragraph (6)(C), in the matter preceding 
clause (i), by inserting ‘‘for work that derives from, 
extends, or completes efforts made under prior fund-
ing agreements under the STTR program’’ after 
‘‘phase’’; 
(3) in paragraph (8), by striking ‘‘and’’ at the 
end; 
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00034
Fmt 6652
Sfmt 6203
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
(4) in paragraph (9), by striking the period at 
the end and inserting a semicolon; and 
(5) by adding at the end the following: 
‘‘(10) the term ‘commercialization’ means— 
‘‘(A) the process of developing products, 
processes, technologies, or services; and 
‘‘(B) the production and delivery of prod-
ucts, processes, technologies, or services for sale 
(whether by the originating party or by others) 
to or use by the Federal Government or commer-
cial markets;’’. 
(b) TECHNICAL
AND CONFORMING AMENDMENTS.— 
Section 9 of the Small Business Act (15 U.S.C. 638), as 
amended by this Act, is further amended— 
(1) in subsection (e)— 
(A) in paragraph (4)(C)(ii), by striking 
‘‘scientific review criteria’’ and inserting ‘‘merit- 
based selection procedures’’; 
(B) in paragraph (9), by striking ‘‘the sec-
ond or the third phase’’ and inserting ‘‘Phase II 
or Phase III’’; and 
(C) by adding at the end the following: 
‘‘(11) the term ‘Phase I’ means— 
‘‘(A) with respect to the SBIR program, the 
first phase described in paragraph (4)(A); and 
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00035
Fmt 6652
Sfmt 6203
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
‘‘(B) with respect to the STTR program, the 
first phase described in paragraph (6)(A); 
‘‘(12) the term ‘Phase II’ means— 
‘‘(A) with respect to the SBIR program, the 
second phase described in paragraph (4)(B); and 
‘‘(B) with respect to the STTR program, the 
second phase described in paragraph (6)(B); and 
‘‘(13) the term ‘Phase III’ means— 
‘‘(A) with respect to the SBIR program, the 
third phase described in paragraph (4)(C); and 
‘‘(B) with respect to the STTR program, the 
third phase described in paragraph (6)(C).’’; 
(2) in subsection (j)— 
(A) in paragraph (1)(B), by striking ‘‘phase 
two’’ and inserting ‘‘Phase II’’; 
(B) in paragraph (2)— 
(i) in subparagraph (B)— 
(I) by striking ‘‘the third phase’’ 
each place it appears and inserting 
‘‘Phase III’’; and 
(II) 
by 
striking 
‘‘the 
second 
phase’’ and inserting ‘‘Phase II’’; 
(ii) in subparagraph (D)— 
(I) by striking ‘‘the first phase’’ 
and inserting ‘‘Phase I’’; and 
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00036
Fmt 6652
Sfmt 6203
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
(II) 
by 
striking 
‘‘the 
second 
phase’’ and inserting ‘‘Phase II’’; 
(iii) in subparagraph (F), by striking 
‘‘the third phase’’ and inserting ‘‘Phase 
III’’; 
(iv) in subparagraph (G)— 
(I) by striking ‘‘the first phase’’ 
and inserting ‘‘Phase I’’; and 
(II) 
by 
striking 
‘‘the 
second 
phase’’ and inserting ‘‘Phase II’’; and 
(v) in subparagraph (H)— 
(I) by striking ‘‘the first phase’’ 
and inserting ‘‘Phase I’’; 
(II) by striking ‘‘second phase’’ 
each place it appears and inserting 
‘‘Phase II’’; and 
(III) by striking ‘‘third phase’’ 
and inserting ‘‘Phase III’’; and 
(C) in paragraph (3)— 
(i) in subparagraph (A)— 
(I) by striking ‘‘the first phase (as 
described in subsection (e)(4)(A))’’ and 
inserting ‘‘Phase I’’; 
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00037
Fmt 6652
Sfmt 6203
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
(II) by striking ‘‘the second phase 
(as described in subsection (e)(4)(B))’’ 
and inserting ‘‘Phase II’’; and 
(III) by striking ‘‘the third phase 
(as described in subsection (e)(4)(C))’’ 
and inserting ‘‘Phase III’’; and 
(ii) in subparagraph (B), by striking 
‘‘second phase’’ and inserting ‘‘Phase II’’; 
(3) in subsection (k)— 
(A) by striking ‘‘first phase’’ each place it 
appears and inserting ‘‘Phase I’’; and 
(B) by striking ‘‘second phase’’ each place it 
appears and inserting ‘‘Phase II’’; 
(4) in subsection (l)(2)— 
(A) by striking ‘‘the first phase’’ and insert-
ing ‘‘Phase I’’; and 
(B) by striking ‘‘the second phase’’ and in-
serting ‘‘Phase II’’; 
(5) in subsection (o)(13)— 
(A) in subparagraph (B), by striking ‘‘sec-
ond phase’’ and inserting ‘‘Phase II’’; and 
(B) in subparagraph (C), by striking ‘‘third 
phase’’ and inserting ‘‘Phase III’’; 
(6) in subsection (p)— 
(A) in paragraph (2)(B)— 
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00038
Fmt 6652
Sfmt 6203
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
(i) in clause (vi)— 
(I) by striking ‘‘the second phase’’ 
and inserting ‘‘Phase II’’; and 
(II) by striking ‘‘the third phase’’ 
and inserting ‘‘Phase III’’; and 
(ii) in clause (ix)— 
(I) by striking ‘‘the first phase’’ 
and inserting ‘‘Phase I’’; and 
(II) 
by 
striking 
‘‘the 
second 
phase’’ and inserting ‘‘Phase II’’; and 
(B) in paragraph (3)— 
(i) by striking ‘‘the first phase (as de-
scribed in subsection (e)(6)(A))’’ and insert-
ing ‘‘Phase I’’; 
(ii) by striking ‘‘the second phase (as 
described in subsection (e)(6)(B))’’ and in-
serting ‘‘Phase II’’; and 
(iii) by striking ‘‘the third phase (as 
described in subsection (e)(6)(C))’’ and in-
serting ‘‘Phase III’’; 
(7) in subsection (q)(3)(A)— 
(A) in the subparagraph heading, by strik-
ing ‘‘FIRST PHASE’’ and inserting ‘‘PHASE I’’; 
and 
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00039
Fmt 6652
Sfmt 6203
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
(B) by striking ‘‘first phase’’ and inserting 
‘‘Phase I’’; 
(8) in subsection (r)— 
(A) in the subsection heading, by striking 
‘‘THIRD PHASE’’ and inserting ‘‘PHASE III’’; 
(B) in paragraph (1)— 
(i) in the first sentence— 
(I) by striking ‘‘for the second 
phase’’ and inserting ‘‘for Phase II’’; 
(II) by striking ‘‘third phase’’ and 
inserting ‘‘Phase III’’; and 
(III) by striking ‘‘second phase 
period’’ and inserting ‘‘Phase II pe-
riod’’; and 
(ii) in the second sentence— 
(I) by striking ‘‘second phase’’ 
and inserting ‘‘Phase II’’; and 
(II) by striking ‘‘third phase’’ and 
inserting ‘‘Phase III’’; and 
(C) in paragraph (2), by striking ‘‘third 
phase’’ and inserting ‘‘Phase III’’; and 
(9) in subsection (u)(2)(B), by striking ‘‘the first 
phase’’ and inserting ‘‘Phase I’’. 
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00040
Fmt 6652
Sfmt 6203
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
SEC. 206. SHORTENED PERIOD FOR FINAL DECISIONS ON 
PROPOSALS AND APPLICATIONS. 
(a) IN GENERAL.—Section 9 of the Small Business Act 
(15 U.S.C. 638), as amended by this Act, is further amend-
ed— 
(1) in subsection (g)(4)— 
(A) by inserting ‘‘(A)’’ after ‘‘(4)’’; 
(B) by adding ‘‘and’’ after the semicolon at 
the end; and 
(C) by adding at the end the following: 
‘‘(B) make a final decision on each proposal sub-
mitted under the SBIR program— 
‘‘(i) not later than 90 days after the date on 
which the solicitation closes; or 
‘‘(ii) if the Administrator authorizes an ex-
tension for a solicitation, not later than 180 
days after the date on which the solicitation 
closes;’’; and 
(2) in subsection (o)(4)— 
(A) by inserting ‘‘(A)’’ after ‘‘(4)’’; 
(B) by adding ‘‘and’’ after the semicolon at 
the end; and 
(C) by adding at the end the following: 
‘‘(B) make a final decision on each proposal sub-
mitted under the STTR program— 
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00041
Fmt 6652
Sfmt 6203
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
‘‘(i) not later than 90 days after the date on 
which the solicitation closes; or 
‘‘(ii) if the Administrator authorizes an ex-
tension for a solicitation, not later than 180 
days after the date on which the solicitation 
closes;’’. 
(b) NIH PEER REVIEW PROCESS.—Section 9 of the 
Small Business Act (15 U.S.C. 638), as amended by this 
Act, is further amended by adding at the end the following: 
‘‘(ii) NIH PEER REVIEW PROCESS.—Notwithstanding 
subsections (g)(4)(B) and (o)(4)(B), the Director of the Na-
tional Institutes of Health may make an award under the 
SBIR program or the STTR program of the National Insti-
tutes of Health only if the application for the award has 
undergone technical and scientific peer review under section 
492 of the Public Health Service Act (42 U.S.C. 289a). 
‘‘(jj) NSF PEER REVIEW PROCESS.—Notwithstanding 
subsections (g)(4)(B) and (o)(4)(B), the Director of the Na-
tional Science Foundation may make an award under the 
SBIR program or the STTR program of the National 
Science Foundation only if the application for the award 
has undergone the National Science Foundation’s technical 
and scientific peer review process and met all other applica-
ble peer review procedures and guidelines pursuant to the 
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00042
Fmt 6652
Sfmt 6203
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
National Science Foundation Act of 1950 (42 U.S.C. 1861, 
et seq.) and other applicable Federal law.’’. 
SEC. 207. PHASE 0 PROOF OF CONCEPT PARTNERSHIP 
PILOT PROGRAM. 
Section 9 of the Small Business Act (15 U.S.C. 638), 
as amended by this Act, is further amended by adding at 
the end the following: 
‘‘(kk) PHASE 0 PROOF OF CONCEPT PARTNERSHIP 
PILOT PROGRAM.— 
‘‘(1) IN GENERAL.—The Director of the National 
Institutes of Health shall use $10,000,000 of the funds 
allocated under subsection (n)(1) for a Proof of Con-
cept Partnership pilot program to accelerate the cre-
ation of small businesses and the commercialization of 
research innovations from qualifying institutions. To 
implement this program, the Director shall award, 
through a competitive, merit-based process, grants to 
qualifying institutions. These grants shall only be 
used to administer Proof of Concept Partnership 
awards in conformity with this subsection. 
‘‘(2) DEFINITIONS.—In this subsection— 
‘‘(A) the term ‘Director’ means the Director 
of the National Institutes of Health; 
‘‘(B) the term ‘pilot program’ refers to the 
Proof of Concept Partnership pilot program; and 
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00043
Fmt 6652
Sfmt 6203
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
‘‘(C) the terms ‘qualifying institution’ and 
‘institution’ mean a university or other research 
institution that participates in the National In-
stitutes of Health’s STTR program. 
‘‘(3) PROOF OF CONCEPT PARTNERSHIPS.— 
‘‘(A) IN
GENERAL.—A Proof of Concept 
Partnership shall be set up by a qualifying insti-
tution to award grants to individual researchers. 
These grants should provide researchers with the 
initial investment and the resources to support 
the proof of concept work and commercialization 
mentoring needed to translate promising re-
search projects and technologies into a viable 
company. This work may include technical vali-
dations, market research, clarifying intellectual 
property rights position and strategy and inves-
tigating commercial or business opportunities. 
‘‘(B) AWARD
GUIDELINES.—The adminis-
trator of a Proof of Concept Partnership pro-
gram shall award grants in accordance with the 
following guidelines: 
‘‘(i) The Proof of Concept Partnership 
shall use a market-focused project manage-
ment oversight process, including— 
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00044
Fmt 6652
Sfmt 6203
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
‘‘(I) a rigorous, diverse review 
board comprised of local experts in 
translational and proof of concept re-
search, including industry, start-up, 
venture capital, technical, financial, 
and business experts and university 
technology transfer officials; 
‘‘(II) technology validation mile-
stones focused on market feasibility; 
‘‘(III) simple reporting effective at 
redirecting projects; and 
‘‘(IV) the willingness to reallocate 
funding from failing projects to those 
with more potential. 
‘‘(ii) Not more than $100,000 shall be 
awarded towards an individual proposal. 
‘‘(C) EDUCATIONAL RESOURCES AND GUID-
ANCE.—The administrator of a Proof of Concept 
Partnership program shall make educational re-
sources and guidance available to researchers at-
tempting to commercialize their innovations. 
‘‘(4) AWARDS.— 
‘‘(A) SIZE OF AWARD.—The Director may 
make awards to a qualifying institution for up 
to $1,000,000 per year for up to 3 years. 
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00045
Fmt 6652
Sfmt 6203
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
‘‘(B) AWARD
CRITERIA.—In determining 
which qualifying institutions receive pilot pro-
gram grants, the Director shall consider, in ad-
dition to any other criteria the Director deter-
mines necessary, the extent to which qualifying 
institutions— 
‘‘(i) have an established and proven 
technology transfer or commercialization of-
fice and have a plan for engaging that office 
in the program implementation; 
‘‘(ii) have demonstrated a commitment 
to local and regional economic development; 
‘‘(iii) are located in diverse geog-
raphies and are of diverse sizes; 
‘‘(iv) can assemble project management 
boards comprised of industry, start-up, ven-
ture capital, technical, financial, and busi-
ness experts; 
‘‘(v) have an intellectual property 
rights strategy or office; and 
‘‘(vi) demonstrate a plan for sustain-
ability beyond the duration of the funding 
award. 
‘‘(5) LIMITATIONS.—The funds for the pilot pro-
gram shall not be used— 
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00046
Fmt 6652
Sfmt 6203
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
‘‘(A) for basic research, but to evaluate the 
commercial potential of existing discoveries, in-
cluding— 
‘‘(i) proof of concept research or proto-
type development; and 
‘‘(ii) activities that contribute to deter-
mining a project’s commercialization path, 
to include technical validations, market re-
search, 
clarifying 
intellectual 
property 
rights, and investigating commercial and 
business opportunities; or 
‘‘(B) to fund the acquisition of research 
equipment or supplies unrelated to commer-
cialization activities. 
‘‘(6) EVALUATIVE REPORT.—The Director shall 
submit to the Committee on Science, Space, and Tech-
nology and the Committee on Small Business of the 
House of Representatives and the Committee on 
Small Business and Entrepreneurship of the Senate 
an evaluative report regarding the activities of the 
pilot program. The report shall include— 
‘‘(A) a detailed description of the institu-
tional and proposal selection process; 
‘‘(B) an accounting of the funds used in the 
pilot program; 
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00047
Fmt 6652
Sfmt 6203
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
‘‘(C) a detailed description of the pilot pro-
gram, including incentives and activities under-
taken by review board experts; 
‘‘(D) a detailed compilation of results 
achieved by the pilot program, including the 
number of small business concerns included and 
the number of business packages developed, and 
the number of projects that progressed into subse-
quent STTR phases; and 
‘‘(E) an analysis of the program’s effective-
ness with supporting data. 
‘‘(7) SUNSET.—The pilot program under this 
subsection shall terminate at the end of fiscal year 
2014.’’. 
TITLE III—OVERSIGHT AND 
EVALUATION 
SEC. 301. STREAMLINING ANNUAL EVALUATION REQUIRE-
MENTS. 
Section 9(b) of the Small Business Act (15 U.S.C. 
638(b)) is amended— 
(1) in paragraph (7)— 
(A) by striking ‘‘STTR programs, including 
the data’’ and inserting the following: ‘‘STTR 
programs, including— 
‘‘(A) the data’’; 
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00048
Fmt 6652
Sfmt 6203
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
(B) by striking ‘‘(g)(10), (o)(9), and (o)(15), 
the number’’ and all that follows through ‘‘under 
each of the SBIR and STTR programs, and a 
description’’ and inserting the following: ‘‘(g)(8) 
and (o)(9); 
‘‘(B) the number of proposals received from, 
and the number and total amount of awards to, 
HUBZone small business concerns and firms 
with venture capital, hedge fund, or private eq-
uity firm investment (including those majority- 
owned by multiple venture capital operating 
companies, hedge funds, or private equity firms) 
under each of the SBIR and STTR programs; 
‘‘(C) a description of the extent to which 
each Federal agency is increasing outreach and 
awards to firms owned and controlled by women 
and social or economically disadvantaged indi-
viduals under each of the SBIR and STTR pro-
grams; 
‘‘(D) general information about the imple-
mentation of, and compliance with the allocation 
of funds required under, subsection (dd) for firms 
owned in majority part by venture capital oper-
ating companies, hedge funds, or private equity 
firms and participating in the SBIR program; 
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00049
Fmt 6652
Sfmt 6203
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
‘‘(E) a detailed description of appeals of 
Phase III awards and notices of noncompliance 
with the SBIR Policy Directive and the STTR 
Policy Directive filed by the Administrator with 
Federal agencies; and 
‘‘(F) a description’’; and 
(C) by striking ‘‘and’’ at the end; 
(2) in paragraph (8), by striking the period at 
the end and inserting ‘‘; and’’; and 
(3) by inserting after paragraph (8) the fol-
lowing: 
‘‘(9) to coordinate the implementation of elec-
tronic databases at each of the Federal agencies par-
ticipating in the SBIR program or the STTR pro-
gram, including the technical ability of the partici-
pating agencies to electronically share data.’’. 
SEC. 302. DATA COLLECTION FROM AGENCIES FOR SBIR. 
Section 9(g) of the Small Business Act (15 U.S.C. 
638(g)), as amended by this Act, is further amended— 
(1) by striking paragraph (10); 
(2) by redesignating paragraphs (8) and (9) as 
paragraphs (9) and (10), respectively; and 
(3) by inserting after paragraph (7) the fol-
lowing: 
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00050
Fmt 6652
Sfmt 6203
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
‘‘(8) collect annually, and maintain in a com-
mon format in accordance with the simplified report-
ing requirements under subsection (v), such informa-
tion from awardees as is necessary to assess the SBIR 
program, including information necessary to main-
tain the database described in subsection (k), includ-
ing— 
‘‘(A) whether an awardee— 
‘‘(i) has venture capital, hedge fund, or 
private equity firm investment or is major-
ity-owned by multiple venture capital oper-
ating companies, hedge funds, or private eq-
uity firms, and, if so— 
‘‘(I) the amount of venture cap-
ital, hedge fund, or private equity firm 
investment that the awardee has re-
ceived as of the date of the award; and 
‘‘(II) the amount of additional 
capital that the awardee has invested 
in the SBIR 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 
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00051
Fmt 6652
Sfmt 6203
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
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 eco-
nomically disadvantaged individual or has 
a socially or economically disadvantaged 
individual as a principal investigator; 
‘‘(v) is 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 
‘‘(vi) is located in a State described in 
subsection (u)(3); and 
‘‘(B) a justification statement from the 
agency, if an awardee receives an award in an 
amount that is more than the award guidelines 
under this section;’’. 
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00052
Fmt 6652
Sfmt 6203
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
SEC. 303. DATA COLLECTION FROM AGENCIES FOR STTR. 
Section 9(o) of the Small Business Act (15 U.S.C. 
638(o)), as amended by this Act, is further amended by 
striking paragraph (9) and inserting the following: 
‘‘(9) collect annually, and maintain in a com-
mon format in accordance with the simplified report-
ing requirements under subsection (v), such informa-
tion from applicants and awardees as is necessary to 
assess the STTR program outputs and outcomes, in-
cluding 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 major-
ity-owned by multiple venture capital oper-
ating companies, hedge funds, or private eq-
uity firms, and, if so— 
‘‘(I) the amount of venture cap-
ital, hedge fund, or private equity firm 
investment 
that 
the 
applicant 
or 
awardee has received as of the date of 
the application or award, as applica-
ble; and 
‘‘(II) the amount of additional 
capital that the applicant or awardee 
has invested in the SBIR technology; 
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00053
Fmt 6652
Sfmt 6203
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
‘‘(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 eco-
nomically disadvantaged individual or has 
a socially or economically disadvantaged 
individual as a principal investigator; 
‘‘(v) is 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 
‘‘(vi) is located in a State in which the 
total value of contracts awarded to small 
business concerns under all STTR programs 
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00054
Fmt 6652
Sfmt 6203
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
is less than the total value of contracts 
awarded to small business concerns in a 
majority of other States, as determined by 
the Administrator in biennial fiscal years, 
beginning with fiscal year 2008, based on 
the most recent statistics compiled by the 
Administrator; and 
‘‘(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;’’. 
SEC. 304. 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, 
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00055
Fmt 6652
Sfmt 6203
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
whether the small business concern is reg-
istered as majority-owned by multiple ven-
ture capital operating companies, hedge 
funds, or private equity firms as required 
under subsection (dd)(3); 
‘‘(ii) is owned by a woman or has a 
woman as a principal investigator; 
‘‘(iii) is owned by a socially or eco-
nomically disadvantaged individual or has 
a socially or economically disadvantaged 
individual as a principal investigator; or 
‘‘(iv) is owned by a faculty member or 
a student of an institution of higher edu-
cation, as that term is defined in section 
101 of the Higher Education Act of 1965 
(20 U.S.C. 1001).’’. 
SEC. 305. 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 
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00056
Fmt 6652
Sfmt 6203
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
Creating Jobs Through Small Business Innova-
tion Act of 2011’’; 
(B) by striking subparagraph (C); 
(C) by redesignating subparagraphs (A) 
and (B) as subparagraphs (B) and (C), respec-
tively; 
(D) by inserting before subparagraph (B), 
as so redesignated, the following: 
‘‘(A) contains, for each small business con-
cern 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, and 
an identifying number assigned by the Ad-
ministration of the small business concern; 
‘‘(ii) an abstract of the 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 in-
dividuals that will carry out the project, the 
position each key individual holds in the 
small business concern, and contact infor-
mation for each key individual; 
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00057
Fmt 6652
Sfmt 6203
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
‘‘(vi) the percentage of effort each indi-
vidual described in clause (iv) will con-
tribute to the project; 
‘‘(vii) whether the small business con-
cern 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 informa-
tion for the person or office within the Fed-
eral 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), respec-
tively; 
(F) by inserting after subparagraph (C), as 
so redesignated, the following: 
‘‘(D) includes, for each awardee— 
‘‘(i) the name, size, location, and any 
identifying number assigned to the awardee 
by the Administrator; 
‘‘(ii) whether the awardee has venture 
capital, hedge fund, or private equity firm 
investment, and, if so— 
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00058
Fmt 6652
Sfmt 6203
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
‘‘(I) the amount of venture cap-
ital, 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 cap-
ital operating company, hedge fund, or 
private equity firm, including whether 
the awardee is majority-owned by mul-
tiple venture capital operating compa-
nies, hedge funds, or private equity 
firms; and 
‘‘(III) the amount of additional 
capital that the awardee has invested 
in the SBIR technology, which infor-
mation 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 af-
filiates of the awardee; and 
‘‘(vi) the names of, and the percentage 
of ownership of the awardee held by— 
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00059
Fmt 6652
Sfmt 6203
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
‘‘(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 redesig-
nated, by striking ‘‘and’’ at the end; 
(H) in subparagraph (F), as so redesig-
nated, by striking the period at the end and in-
serting ‘‘; and’’; and 
(I) by adding at the end the following: 
‘‘(G) includes a timely and accurate list of 
any individual or small business concern that 
has participated in the SBIR program or STTR 
program that has been— 
‘‘(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-re-
lated violation involving funding received 
under the SBIR program or STTR pro-
gram.’’; and 
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00060
Fmt 6652
Sfmt 6203
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
(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 Fed-
eral agency for submitting applications or pro-
posals 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. 306. ACCURACY IN FUNDING BASE CALCULATIONS. 
(a) IN GENERAL.—Not later than 1 year after the date 
of enactment 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 require-
ments under subsections (f)(1) and (n)(1) of sec-
tion 9 of the Small Business Act (15 U.S.C. 
638), as amended by this Act; 
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00061
Fmt 6652
Sfmt 6203
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
(B) assess the extent of compliance with the 
requirements of section 9(i)(2) of the Small Busi-
ness Act (15 U.S.C. 638(i)(2)) by Federal agen-
cies participating in the SBIR program or the 
STTR program and the Administration; and 
(C) determine the portion of the extramural 
research or research and development budget of a 
Federal agency that each Federal agency spends 
for administrative purposes relating to the SBIR 
program or STTR program, and for what spe-
cific purposes, including the portion, if any, of 
such budget the Federal agency spends for sala-
ries and expenses, travel to visit applicants, out-
reach events, marketing, and technical assist-
ance; 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 Rep-
resentatives regarding the audit conducted under 
paragraph (1), including the assessments required 
under subparagraph (B), and the determination made 
under subparagraph (C) of paragraph (1). 
(b) DEFINITION OF APPLICABLE PERIOD.—In this sec-
tion, the term ‘‘applicable period’’ means— 
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00062
Fmt 6652
Sfmt 6203
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
(1) for the first report submitted under this sec-
tion, the period beginning on October 1, 2005, and 
ending on September 30 of the last full fiscal year be-
fore the date of enactment of this Act for which infor-
mation 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 sec-
tion was submitted; and 
(B) ending on September 30 of the last full 
fiscal year before the date of the report. 
SEC. 307. 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 AUTHOR-
ITY.— 
‘‘(1) IN
GENERAL.—Not later than 6 months 
after the date of enactment of the Creating Jobs 
Through Small Business Innovation Act of 2011, the 
head of each agency described in subsection (a), in 
consultation with the Small Business Administration, 
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00063
Fmt 6652
Sfmt 6203
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
shall cooperatively enter into an agreement with the 
National Academy of Sciences for the National Re-
search Council to, not later than 4 years after the 
date of enactment of the Creating Jobs Through Small 
Business Innovation 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 sub-
section (a)(1); 
‘‘(B) conduct a comprehensive study of how 
the STTR program has stimulated technological 
innovation and technology transfer, including— 
‘‘(i) a review of the collaborations cre-
ated 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 
collaborations; 
‘‘(ii) an evaluation of the effectiveness 
of the program at transferring technology 
and capabilities developed through Federal 
funding; 
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00064
Fmt 6652
Sfmt 6203
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
‘‘(iii) an evaluation of the program’s 
success at commercializing technologies com-
pared with other Federal technology trans-
fer programs and the SBIR program; 
‘‘(iv) to the extent practicable, an eval-
uation of the economic benefits achieved by 
the STTR program, including the economic 
rate of return; 
‘‘(v) an analysis of how Federal agen-
cies are using small businesses that have 
completed Phase II under the STTR pro-
gram to fulfill their procurement needs; and 
‘‘(vi) an analysis of whether the exist-
ing STTR allocation has impacted the effec-
tiveness of the program in achieving its 
goals; 
‘‘(C) make recommendations with respect to 
the issues described in subparagraph (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. 
‘‘(2) 
CONSULTATION.—An 
agreement 
under 
paragraph (1) shall require the National Research 
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00065
Fmt 6652
Sfmt 6203
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
Council to ensure that there is participation by and 
consultation with the small business community, the 
Administration, and other interested parties as de-
scribed in subsection (b). 
‘‘(3) REPORTING.—An agreement under para-
graph (1) shall require that— 
‘‘(A) not later than 4 years after the date 
of enactment of the Creating Jobs Through Small 
Business Innovation 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 
Committee on Science, Space, and Technology of 
the House of Representatives, a report regarding 
the study conducted under paragraph (1) and 
containing the recommendations described in 
paragraph (1); and 
‘‘(B) not later than 2 years after the date 
of enactment of the Creating Jobs Through Small 
Business Innovation Act of 2011, the National 
Research Council shall submit to the head of the 
agency entering into the agreement, the Com-
mittee on Small Business and Entrepreneurship 
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00066
Fmt 6652
Sfmt 6203
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
of the Senate, and the Committee on Small Busi-
ness and the Committee on Science, Space, and 
Technology of the House of Representatives, a re-
port of preliminary findings and recommenda-
tions regarding the study conducted under para-
graph (1)(B).’’. 
SEC. 308. TECHNOLOGY INSERTION REPORTING REQUIRE-
MENTS. 
Section 9 of the Small Business Act (15 U.S.C. 638), 
as amended by this Act, is further amended by adding at 
the end the following: 
‘‘(ll) PHASE III REPORTING.—The annual SBIR or 
STTR report to Congress by the Administration under sub-
section (b)(7) shall include, for each Phase III award made 
by the Federal agency— 
‘‘(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.’’. 
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00067
Fmt 6652
Sfmt 6203
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
SEC. 309. OBTAINING CONSENT FROM SBIR AND STTR AP-
PLICANTS TO RELEASE CONTACT INFORMA-
TION TO ECONOMIC DEVELOPMENT ORGANI-
ZATIONS. 
Section 9 of the Small Business Act (15 U.S.C. 638), 
as amended by this Act, is further amended by adding at 
the end the following: 
‘‘(mm) CONSENT TO RELEASE CONTACT INFORMATION 
TO ORGANIZATIONS.— 
‘‘(1) ENABLING CONCERN TO GIVE CONSENT.— 
Each Federal agency required by this section to con-
duct an SBIR program or an STTR program shall 
enable a small business concern that is an SBIR ap-
plicant or an STTR applicant to indicate to the Fed-
eral agency whether the Federal agency has the con-
sent of the concern to— 
‘‘(A) identify the concern to appropriate 
local and State-level economic development orga-
nizations 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 in-
clude a requirement that a Federal agency include in 
the SBIR and STTR application a provision through 
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00068
Fmt 6652
Sfmt 6203
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
which the applicant can indicate consent for purposes 
of paragraph (1).’’. 
SEC. 310. PILOT TO ALLOW FUNDING FOR ADMINISTRATIVE, 
OVERSIGHT, AND CONTRACT PROCESSING 
COSTS. 
(a) IN GENERAL.—Section 9 of the Small Business Act 
(15 U.S.C. 638), as amended by this Act, is further amend-
ed by adding at the end the following: 
‘‘(nn) ASSISTANCE FOR ADMINISTRATIVE, OVERSIGHT, 
AND CONTRACT PROCESSING COSTS.— 
‘‘(1) IN GENERAL.—Subject to paragraph (2), for 
the 3 full fiscal years beginning after the date of en-
actment 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 pro-
gram or the STTR program of the Federal agen-
cy; 
‘‘(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 and personnel 
interviews; 
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00069
Fmt 6652
Sfmt 6203
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
‘‘(C) the implementation of commercializa-
tion and outreach initiatives that were not in ef-
fect on the date of enactment of this subsection; 
‘‘(D) carrying out the program under sub-
section (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 pro-
gram 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 control measures, including verification 
of reports and invoices and cost reviews; 
‘‘(H) carrying out subsection (dd); 
‘‘(I) carrying out subsection (hh); 
‘‘(J) contract processing costs relating to the 
SBIR program or STTR program of the Federal 
agency; and 
‘‘(K) funding for additional personnel and 
assistance with application reviews. 
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00070
Fmt 6652
Sfmt 6203
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
‘‘(2) PERFORMANCE CRITERIA.—A Federal agen-
cy may not use funds as authorized under paragraph 
(1) until after the effective date of performance cri-
teria, 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). 
‘‘(3) RULES.—Not later than 180 days after the 
date of enactment of this subsection, the Adminis-
trator shall issue rules to carry out this subsection. 
‘‘(4) 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 per-
forms such activities.’’. 
(b) TECHNICAL AND CONFORMING AMENDMENTS.— 
(1) IN GENERAL.—Section 9 of the Small Busi-
ness Act (15 U.S.C. 638), as amended by this Act, is 
further amended— 
(A) in subsection (f)(2), by striking ‘‘shall 
not’’ and all that follows through ‘‘make avail-
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00071
Fmt 6652
Sfmt 6203
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
able 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), respec-
tively. 
(2) TRANSITIONAL RULE.—Notwithstanding the 
amendments made by paragraph (1), subsection (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, shall continue to apply to 
each Federal agency until the effective date of the per-
formance criteria established by the Administrator 
under subsection (nn)(2) of section 9 of the Small 
Business 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 insert-
ing the following: ‘‘shall not— 
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00072
Fmt 6652
Sfmt 6203
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
‘‘(A) use any of its SBIR budget established 
pursuant to paragraph (1) for the purpose of 
funding administrative costs of the program, in-
cluding costs associated with salaries and ex-
penses; or 
‘‘(B) make available for the purpose’’; and 
(B) in subsection (y)— 
(i) by redesignating paragraphs (4) 
and (5) as paragraphs (5) and (6), respec-
tively; and 
(ii) by inserting after paragraph (3) 
the following: 
‘‘(4) FUNDING.— 
‘‘(A) IN GENERAL.—The Secretary of De-
fense and each Secretary of a military depart-
ment may use not more than an amount equal 
to 1 percent of the funds available to the Depart-
ment of Defense or the military department pur-
suant to the Small Business Innovation Research 
Program for payment of expenses incurred to ad-
minister the Commercialization Pilot Program 
under this subsection. 
‘‘(B) LIMITATIONS.—The funds described in 
subparagraph (A)— 
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00073
Fmt 6652
Sfmt 6203
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
‘‘(i) shall not be subject to the limita-
tions on the use of funds in subsection 
(f)(2); and 
‘‘(ii) shall not be used to make Phase 
III awards.’’. 
SEC. 311. GAO STUDY WITH RESPECT TO VENTURE CAPITAL 
OPERATING COMPANY, HEDGE FUND, AND 
PRIVATE EQUITY FIRM INVOLVEMENT. 
Not later than 2 years after the date of enactment of 
this Act, and every 2 years thereafter, the Comptroller Gen-
eral of the United States shall— 
(1) conduct a study of the impact of require-
ments 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 conducted under paragraph (1). 
SEC. 312. 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 enactment of this Act, the Ad-
ministrator shall amend the SBIR Policy Directive 
and the STTR Policy Directive to include measures 
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00074
Fmt 6652
Sfmt 6203
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
to prevent fraud, waste, and abuse in the SBIR pro-
gram and the STTR program. 
(2) CONTENT
OF
AMENDMENTS.—The amend-
ments required under paragraph (1) shall include— 
(A) definitions or descriptions of fraud, 
waste, and abuse; 
(B) guidelines for the monitoring and over-
sight of applicants to and recipients of awards 
under the SBIR program or the STTR program; 
(C) a requirement that each Federal agency 
that participates in the SBIR program or STTR 
program include information concerning the 
method established by the Inspector General of 
the Federal agency to report fraud, waste, and 
abuse (including any telephone hotline or Web- 
based platform)— 
(i) on the website of the Federal agen-
cy; and 
(ii) in any solicitation or notice of 
funding opportunity issued by the Federal 
agency for the SBIR program or the STTR 
program; and 
(D) a requirement that each applicant for 
and small business concern that receives funding 
under the SBIR program or the STTR program 
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00075
Fmt 6652
Sfmt 6203
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
shall certify whether the applicant or small busi-
ness concern is in compliance with the laws re-
lating to the SBIR program and the STTR pro-
gram and the conduct guidelines established 
under the SBIR Policy Directive and the STTR 
Policy Directive. 
(3) CONSULTATION.—The Administrator shall 
develop the certification required under paragraph 
(2)(D) in cooperation with the Council of Inspectors 
General on Integrity and Efficiency and the Office of 
Advocacy of the Administration. 
(4) INSPECTORS GENERAL.—The Inspector Gen-
eral of each Federal agency that participates in the 
SBIR program or STTR program shall cooperate to 
prevent fraud, waste, and abuse in the SBIR program 
and the STTR program by— 
(A) establishing fraud detection indicators; 
(B) reviewing regulations and operating 
procedures of the Federal agency; 
(C) coordinating information sharing be-
tween Federal agencies, to the extent otherwise 
permitted under Federal law; and 
(D) improving the education and training 
of, and outreach to— 
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00076
Fmt 6652
Sfmt 6203
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
(i) administrators of the SBIR pro-
gram and the STTR program of the Federal 
agency; 
(ii) applicants to the SBIR program 
or the STTR program; and 
(iii) recipients of awards under the 
SBIR program or the STTR program. 
(b) STUDY AND REPORT.—Not later than 1 year after 
the date of enactment of this Act to establish a baseline of 
changes made to the program to fight fraud, waste, and 
abuse, and every 3 years thereafter to evaluate the effective-
ness of the agency strategies, the Comptroller General of the 
United States shall— 
(1) conduct a study that evaluates— 
(A) the implementation by each Federal 
agency that participates in the SBIR program 
or the STTR program of the amendments to the 
SBIR Policy Directive and the STTR Policy Di-
rective made pursuant to subsection (a); 
(B) the effectiveness of the management in-
formation system of each Federal agency that 
participates in the SBIR program or STTR pro-
gram in identifying duplicative SBIR and 
STTR projects; 
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00077
Fmt 6652
Sfmt 6203
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
(C) the effectiveness of the risk management 
strategies of each Federal agency that partici-
pates in the SBIR program or STTR program 
in identifying areas of the SBIR program or the 
STTR program that are at high risk for fraud; 
(D) technological tools that may be used to 
detect patterns of behavior that may indicate 
fraud by applicants to the SBIR program or the 
STTR program; 
(E) the success of each Federal agency that 
participates in the SBIR program or STTR pro-
gram in reducing fraud, waste, and abuse in the 
SBIR program or the STTR program of the 
Federal agency; and 
(F) the extent to which the Inspector Gen-
eral of each Federal agency that participates in 
the SBIR and STTR program effectively con-
ducts investigations, audits, inspections, and 
outreach relating to the SBIR and STTR pro-
grams of the Federal agency; and 
(2) submit to the Committee on Small Business 
and Entrepreneurship of the Senate, the Committee 
on Small Business and the Committee on Science, 
Space, and Technology of the House of Representa-
tives, and the head of each Federal agency that par-
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00078
Fmt 6652
Sfmt 6203
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
ticipates in the SBIR program or STTR program a 
report on the results of the study conducted under 
subparagraph (A). 
SEC. 313. SIMPLIFIED PAPERWORK REQUIREMENTS. 
Section 9(v) of the Small Business Act (15 U.S.C. 
638(v)) is amended— 
(1) in the subsection heading, by striking ‘‘SIM-
PLIFIED REPORTING REQUIREMENTS’’ and inserting 
‘‘REDUCING
PAPERWORK
AND
COMPLIANCE
BUR-
DEN’’; 
(2) by striking ‘‘The Administrator’’ and insert-
ing the following: 
‘‘(1) STANDARDIZATION
OF
REPORTING
RE-
QUIREMENTS.—The Administrator’’; and 
(3) by adding at the end the following: 
‘‘(2) SIMPLIFICATION
OF
APPLICATION
AND 
AWARD PROCESS.—Not later than one year after the 
date of enactment of this paragraph, and after a pe-
riod of public comment, the Administrator shall issue 
regulations or guidelines, taking into consideration 
the unique needs of each Federal agency, to ensure 
that each Federal agency required to carry out an 
SBIR program or STTR program simplifies and 
standardizes the program proposal, selection, con-
tracting, compliance, and audit procedures for the 
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00079
Fmt 6652
Sfmt 6203
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
SBIR program or STTR program of the Federal 
agency (including procedures relating to overhead 
rates for applicants and documentation requirements) 
to reduce the paperwork and regulatory compliance 
burden on small business concerns applying to and 
participating in the SBIR program or STTR pro-
gram.’’. 
SEC. 314. REDUCING FRAUD, WASTE, AND ABUSE. 
Not later than 4 years after the date of enactment of 
this Act, and every 4 years thereafter, the Comptroller Gen-
eral of the United States shall— 
(1) conduct a study of the effectiveness of the gov-
ernment and public databases described in section 
9(k) of the Small Business Act (15 U.S.C. 638(k)) in 
reducing vulnerabilities of the SBIR program and the 
STTR program to fraud, waste, and abuse, particu-
larly with respect to Federal agencies funding dupli-
cative proposals and business concerns falsifying in-
formation in proposals; 
(2) make recommendations with respect to the 
issues described in paragraph (1); and 
(3) submit to the head of each agency described 
in section 108(a) of the Small Business Reauthoriza-
tion Act of 2000 (15 U.S.C. 638 note), the Committee 
on Small Business and Entrepreneurship of the Sen-
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00080
Fmt 6652
Sfmt 6203
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
ate, 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 paragraph (1) and containing the 
recommendations described in paragraph (2). 
TITLE IV—POLICY DIRECTIVES 
SEC. 401. CONFORMING AMENDMENTS TO THE SBIR AND 
THE STTR POLICY DIRECTIVES. 
(a) IN GENERAL.—Not later than 180 days after the 
date of enactment of this Act, the Administrator shall pro-
mulgate amendments to the SBIR Policy Directive and the 
STTR Policy Directive to conform such directives to this 
Act and the amendments made by this Act. 
(b) PUBLISHING SBIR POLICY DIRECTIVE AND THE 
STTR POLICY DIRECTIVE IN THE FEDERAL REGISTER.— 
Not later than 180 days after the date of enactment of this 
Act, the Administrator shall publish the amended SBIR 
Policy Directive and the amended STTR Policy Directive 
in the Federal Register. 
TITLE V—OTHER PROVISIONS 
SEC. 501. REPORT ON SBIR AND STTR PROGRAM GOALS. 
Section 9 of the Small Business Act (15 U.S.C. 638), 
as amended by this Act, is further amended by adding at 
the end the following: 
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00081
Fmt 6652
Sfmt 6203
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
‘‘(oo) ANNUAL REPORT ON SBIR AND STTR PROGRAM 
GOALS.— 
‘‘(1) DEVELOPMENT OF METRICS.—The head of 
each Federal agency required to participate in the 
SBIR program or the STTR program shall develop 
metrics to evaluate the effectiveness, and the benefit to 
the people of the United States, of the SBIR program 
and the STTR program of the Federal agency that— 
‘‘(A) are science-based and statistically 
driven; 
‘‘(B) reflect the mission of the Federal agen-
cy; and 
‘‘(C) include factors relating to the economic 
impact of the programs. 
‘‘(2) EVALUATION.—The head of each Federal 
agency described in paragraph (1) shall conduct an 
annual evaluation using the metrics developed under 
paragraph (1) of— 
‘‘(A) the SBIR program and the STTR pro-
gram of the Federal agency; and 
‘‘(B) the benefits to the people of the United 
States of the SBIR program and the STTR pro-
gram of the Federal agency. 
‘‘(3) REPORT.— 
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00082
Fmt 6652
Sfmt 6203
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
‘‘(A) IN GENERAL.—The head of each Fed-
eral agency described in paragraph (1) shall sub-
mit to the appropriate committees of Congress 
and the Administrator an annual report describ-
ing in detail the results of an evaluation con-
ducted under paragraph (2). 
‘‘(B) PUBLIC AVAILABILITY OF REPORT.— 
The head of each Federal agency described in 
paragraph (1) shall make each report submitted 
under subparagraph (A) available to the public 
online. 
‘‘(C) DEFINITION.—In this paragraph, the 
term 
‘appropriate 
committees 
of 
Congress’ 
means— 
‘‘(i) the Committee on Small Business 
and Entrepreneurship of the Senate; and 
‘‘(ii) the Committee on Small Business 
and the Committee on Science, Space, and 
Technology of the House of Representa-
tives.’’. 
SEC. 502. COMPETITIVE SELECTION PROCEDURES FOR SBIR 
AND STTR PROGRAMS. 
Section 9 of the Small Business Act (15 U.S.C. 638), 
as amended by this Act, is further amended by adding at 
the end the following: 
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00083
Fmt 6652
Sfmt 6203
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
‘‘(pp) COMPETITIVE SELECTION PROCEDURES
FOR 
SBIR AND STTR PROGRAMS.—All funds awarded, appro-
priated, or otherwise made available in accordance with 
subsection (f) or (n) must be awarded pursuant to competi-
tive and merit-based selection procedures.’’. 
SEC. 503. LOAN RESTRICTIONS. 
(a) RULE REQUIRED.—For purposes of section 9 of the 
Small Business Act (15 U.S.C. 638), the Administrator 
shall promulgate a rule not later than 180 days after the 
date of enactment of this Act that determines what restric-
tions, conditions, or covenants contained in a note, bond, 
debenture, other evidence of indebtedness, or preferred stock 
constitute affiliation for purposes of section 121.103(a) of 
title 13, Code of Federal Regulations, as in effect on Janu-
ary 1, 2011. 
(b) FAILURE TO PROMULGATE.—If the Administrator 
fails to promulgate a rule in the time period required under 
subsection (a), the holder of a note, bond, debenture, other 
evidence of indebtedness, or preferred stock shall be consid-
ered to be affiliated with the debtor or issuer of the preferred 
stock until such time as the Administrator promulgates the 
rule required under subsection (a). 
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00084
Fmt 6652
Sfmt 6203
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
SEC. 504. PROGRAM DIVERSIFICATION. 
Federal agencies shall encourage applications under 
the SBIR and STTR programs (to the extent that the 
projects relate to the mission of the Federal agency) from— 
(1) small business concerns in geographic areas 
underrepresented in the SBIR and STTR programs 
or located in rural areas (as defined in section 
1393(a)(2) of the Internal Revenue Code of 1986); 
(2) small business concerns owned and controlled 
by women; 
(3) small business concerns owned and controlled 
by veterans; 
(4) small business concerns owned and controlled 
by minorities; 
(5) small business concerns owned and controlled 
by people with disabilities; and 
(6) small business concerns located in a geo-
graphic area with an unemployment rate that exceeds 
the national unemployment rate, based on the most 
recently available monthly publications of the Bureau 
of Labor Statistics of the Department of Labor. 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Creating 
Jobs Through Small Business Innovation Act 
of 2011’’. 
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00085
Fmt 6652
Sfmt 6202
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
SEC. 2. TABLE OF CONTENTS. 
The table of contents for this Act is as fol-
lows: 
Sec. 1. Short title. 
Sec. 2. Table of contents. 
Sec. 3. Definitions. 
TITLE I—REAUTHORIZATION OF THE SBIR AND STTR 
PROGRAMS 
Sec. 101. Extension of termination dates. 
Sec. 102. SBIR and STTR award levels. 
Sec. 103. Agency and program flexibility. 
Sec. 104. Elimination of Phase II invitations. 
Sec. 105. Phase flexibility. 
Sec. 106. Participation by firms with substantial investment 
from multiple venture capital operating compa-
nies, hedge funds, or private equity firms in a 
portion of the SBIR program. 
Sec. 107. Ensuring that innovative small businesses with sub-
stantial investment from venture capital oper-
ating companies, hedge funds, or private equity 
firms are able to participate in the SBIR and 
STTR programs. 
Sec. 108. SBIR and STTR special acquisition preference. 
Sec. 109. Collaborating with Federal laboratories and research 
and development centers. 
Sec. 110. Notice requirement. 
Sec. 111. Additional SBIR and STTR Awards. 
TITLE II—OUTREACH AND COMMERCIALIZATION 
INITIATIVES 
Sec. 201. Technical assistance for awardees. 
Sec. 202. Commercialization Readiness Program at Depart-
ment of Defense. 
Sec. 203. Commercialization Readiness Pilot Program for civil-
ian agencies. 
Sec. 204. Interagency Policy Committee. 
Sec. 205. Clarifying the definition of ‘‘Phase III’’. 
Sec. 206. Shortened period for final decisions on proposals and 
applications. 
Sec. 207. Phase 0 Proof of Concept Partnership pilot program. 
TITLE III—OVERSIGHT AND EVALUATION 
Sec. 301. Streamlining annual evaluation requirements. 
Sec. 302. Data collection from agencies for SBIR. 
Sec. 303. Data collection from agencies for STTR. 
Sec. 304. Public database. 
Sec. 305. Government database. 
Sec. 306. Accuracy in funding base calculations. 
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00086
Fmt 6652
Sfmt 6212
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
Sec. 307. Continued evaluation by the National Academy of 
Sciences. 
Sec. 308. Technology insertion reporting requirements. 
Sec. 309. Obtaining consent from SBIR and STTR applicants to 
release contact information to economic develop-
ment organizations. 
Sec. 310. Pilot to allow funding for administrative, oversight, 
and contract processing costs. 
Sec. 311. GAO study with respect to venture capital operating 
company, hedge fund, and private equity firm in-
volvement. 
Sec. 312. Reducing vulnerability of SBIR and STTR programs 
to fraud, waste, and abuse. 
Sec. 313. Simplified paperwork requirements. 
Sec. 314. Reducing fraud, waste, and abuse. 
TITLE IV—POLICY DIRECTIVES 
Sec. 401. Conforming amendments to the SBIR and the STTR 
Policy Directives. 
TITLE V—OTHER PROVISIONS 
Sec. 501. Report on SBIR and STTR program goals. 
Sec. 502. Competitive selection procedures for SBIR and STTR 
programs. 
Sec. 503. Loan restrictions. 
Sec. 504. Limitation on pilot programs. 
Sec. 505. Ensuring equity in SBIR and STTR awards to indi-
vidual companies. 
Sec. 506. Inspector General reports. 
Sec. 507. Timing. 
Sec. 508. Publication of certain information. 
Sec. 509. Preference for clean coal technology research. 
Sec. 510. Report on enhancement of manufacturing activities. 
Sec. 511. Express authority to ‘‘fast-track’’ Phase II awards for 
promising Phase I research. 
Sec. 512. Increased partnerships between SBIR awardees and 
prime contractors, venture capital investment 
companies, and larger businesses. 
Sec. 513. Preference for acid mine drainage research. 
Sec. 514. Preference for hydraulic fracturing research. 
SEC. 3. DEFINITIONS. 
In this Act— 
(1) the terms ‘‘Administration’’ and 
‘‘Administrator’’ mean the Small Business 
Administration and the Administrator 
thereof, respectively; 
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00087
Fmt 6652
Sfmt 6202
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
(2) the terms ‘‘extramural budget’’, 
‘‘Federal agency’’, ‘‘Small Business Inno-
vation 
Research 
Program’’, 
‘‘SBIR’’, 
‘‘Small 
Business 
Technology 
Transfer 
Program’’, and ‘‘STTR’’ have the mean-
ings given such terms in section 9 of the 
Small Business Act (15 U.S.C. 638); and 
(3) the term ‘‘small business concern’’ 
has the meaning given that term under 
section 3 of the Small Business Act (15 
U.S.C. 632). 
TITLE I—REAUTHORIZATION OF 
THE SBIR AND STTR PROGRAMS 
SEC. 101. EXTENSION OF TERMINATION DATES. 
(a) SBIR.—Section 9(m) of the Small Busi-
ness Act (15 U.S.C. 638(m)) is amended— 
(1) by striking ‘‘TERMINATION.—’’ and 
all that follows through ‘‘the authoriza-
tion’’ and inserting ‘‘TERMINATION.—The 
authorization’’; 
(2) by striking ‘‘2008’’ and inserting 
‘‘2014’’; and 
(3) by striking paragraph (2). 
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00088
Fmt 6652
Sfmt 6202
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
(b) STTR.—Section 9(n)(1)(A) of the Small 
Business Act (15 U.S.C. 638(n)(1)(A)) is amend-
ed— 
(1) by striking ‘‘IN GENERAL.—’’ and all 
that follows through ‘‘with respect’’ and 
inserting ‘‘IN GENERAL.—With respect’’; 
(2) by striking ‘‘2009’’ and inserting 
‘‘2014’’; and 
(3) by striking clause (ii). 
SEC. 102. SBIR AND STTR AWARD LEVELS. 
(a) SBIR ADJUSTMENTS.—Section 9(j)(2)(D) 
of 
the 
Small 
Business 
Act 
(15 
U.S.C. 
638(j)(2)(D)) is amended— 
(1) by striking ‘‘$100,000’’ and insert-
ing ‘‘$150,000’’; and 
(2) by striking ‘‘$750,000’’ and insert-
ing ‘‘$1,000,000’’. 
(b) 
STTR 
ADJUSTMENTS.—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 insert-
ing ‘‘$150,000’’; and 
(2) by striking ‘‘$750,000’’ and insert-
ing ‘‘$1,000,000’’. 
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00089
Fmt 6652
Sfmt 6202
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
(c) ANNUAL ADJUSTMENTS.—Section 9 of the 
Small Business Act (15 U.S.C. 638) is amend-
ed— 
(1) in subsection (j)(2)(D), by striking 
‘‘once every 5 years to reflect economic 
adjustments and programmatic consider-
ations’’ and inserting ‘‘every year for in-
flation’’; and 
(2) 
in 
subsection 
(p)(2)(B)(ix), 
as 
amended by subsection (b) of this section, 
by inserting ‘‘(each of which the Adminis-
trator shall adjust for inflation annually)’’ 
after ‘‘$1,000,000,’’. 
(d) LIMITATION ON SIZE OF AWARDS.—Sec-
tion 9 of the Small Business Act (15 U.S.C. 
638), as amended by this Act, is further 
amended by adding at the end the following: 
‘‘(aa) LIMITATION ON SIZE OF AWARDS.— 
‘‘(1) LIMITATION.—No Federal agency 
may issue an award under the SBIR pro-
gram or the STTR program if the size of 
the award exceeds the award guidelines 
established under this section by more 
than 50 percent. 
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00090
Fmt 6652
Sfmt 6202
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
‘‘(2) MAINTENANCE
OF
INFORMATION.— 
Participating agencies shall maintain in-
formation 
on 
awards 
exceeding 
the 
guidelines established under this section, 
including— 
‘‘(A) the amount of each award; 
‘‘(B) a justification for exceeding 
the award amount; 
‘‘(C) the identity and location of 
each award recipient; and 
‘‘(D) whether an award recipient 
has received any venture capital, 
hedge fund, or private equity firm in-
vestment and, if so, whether the re-
cipient is majority-owned by multiple 
venture capital operating companies, 
hedge funds, or private equity firms. 
‘‘(3) 
REPORTS.—The 
Administrator 
shall include the information described 
in paragraph (2) in the annual report of 
the Administrator to Congress. 
‘‘(4) RULE OF CONSTRUCTION.—Nothing 
in this subsection shall be construed to 
prevent 
a 
Federal 
agency 
from 
supplementing an award under the SBIR 
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00091
Fmt 6652
Sfmt 6202
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
program or the STTR program using 
funds of the Federal agency that are not 
part of the SBIR program or the STTR 
program of the Federal agency.’’. 
SEC. 103. AGENCY AND PROGRAM FLEXIBILITY. 
Section 9 of the Small Business Act (15 
U.S.C. 638), as amended by this Act, is further 
amended by adding at the end the following: 
‘‘(bb) SUBSEQUENT PHASE II AWARDS.— 
‘‘(1) 
AGENCY
FLEXIBILITY.—A 
small 
business concern that received a Phase I 
award from a Federal agency under this 
section shall be eligible to receive a sub-
sequent Phase II award from another 
Federal agency, if the head of each rel-
evant Federal agency or the relevant 
component of the Federal agency makes 
a written determination that the topics of 
the relevant awards are the same and 
both agencies report the awards to the 
Administrator for inclusion in the public 
database under subsection (k). 
‘‘(2) SBIR AND
STTR
PROGRAM
FLEXI-
BILITY.—A small business concern that re-
ceived a Phase I award under this section 
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00092
Fmt 6652
Sfmt 6202
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
under the SBIR program or the STTR 
program may receive a subsequent Phase 
II award in either the SBIR program or 
the STTR program and the participating 
agency or agencies shall report the 
awards to the Administrator for inclusion 
in the public database under subsection 
(k).’’. 
SEC. 104. ELIMINATION OF PHASE II INVITATIONS. 
Section 9(e) of the Small Business Act (15 
U.S.C. 638(e)) is amended— 
(1) in paragraph (4)(B), by striking ‘‘to 
further’’ and inserting ‘‘which shall not 
include 
any 
invitation, 
pre-screening, 
pre-selection, or down-selection process 
for eligibility for Phase II, that will fur-
ther’’; and 
(2) in paragraph (6)(B), by striking ‘‘to 
further develop proposed ideas to’’ and 
inserting ‘‘which shall not include any in-
vitation, pre-screening, pre-selection, or 
down-selection process for eligibility for 
Phase II, that will further develop pro-
posals that’’. 
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00093
Fmt 6652
Sfmt 6202
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
SEC. 105. PHASE FLEXIBILITY. 
Section 9 of the Small Business Act (15 
U.S.C. 638), as amended by this Act, is further 
amended by adding at the end the following: 
‘‘(cc) PHASE I REQUIRED.—Under this sec-
tion, a Federal agency shall provide to a small 
business concern an award under Phase II of 
an SBIR program with respect to a project 
only if such agency finds that the small busi-
ness concern has been provided an award 
under Phase I of an SBIR program with re-
spect to such project or has completed the de-
terminations described in subsection (e)(4)(A) 
with respect to such project despite not hav-
ing been provided a Phase I award.’’. 
SEC. 106. PARTICIPATION BY FIRMS WITH SUBSTANTIAL IN-
VESTMENT FROM MULTIPLE VENTURE CAP-
ITAL 
OPERATING 
COMPANIES, 
HEDGE 
FUNDS, OR PRIVATE EQUITY FIRMS IN A POR-
TION OF THE SBIR PROGRAM. 
(a) IN GENERAL.—Section 9 of the Small 
Business Act (15 U.S.C. 638), as amended by 
this Act, is further amended by adding at the 
end the following: 
‘‘(dd) PARTICIPATION
OF SMALL BUSINESS 
CONCERNS MAJORITY-OWNED BY VENTURE CAP-
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00094
Fmt 6652
Sfmt 6202
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
ITAL OPERATING COMPANIES, HEDGE FUNDS, OR 
PRIVATE
EQUITY
FIRMS
IN
THE
SBIR PRO-
GRAM.— 
‘‘(1) AUTHORITY.—Upon a written de-
termination described in paragraph (2) 
provided to the Administrator, the Com-
mittee on Small Business and Entrepre-
neurship of the Senate, and the Com-
mittee on Small Business and the Com-
mittee on Science, Space, and Technology 
of the House of Representatives not later 
than 30 days before the date on which an 
award is made— 
‘‘(A) the Director of the National 
Institutes of Health, the Secretary of 
Energy, the Administrator of the Na-
tional Aeronautics and Space Admin-
istration, and the Director of the Na-
tional Science Foundation may award 
not more than 45 percent of the funds 
allocated for the SBIR program of the 
Federal agency to small business con-
cerns that are owned in majority part 
by multiple venture capital operating 
companies, hedge funds, or private 
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00095
Fmt 6652
Sfmt 6202
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
equity 
firms 
through 
competitive, 
merit-based procedures that are open 
to all eligible small business con-
cerns; and 
‘‘(B) the head of a Federal agency 
other than a Federal agency de-
scribed in subparagraph (A) that par-
ticipates in the SBIR program may 
award not more than 35 percent of 
the funds allocated for the SBIR pro-
gram of the Federal agency to small 
business concerns that are owned in 
majority part by multiple venture 
capital operating companies, hedge 
funds, 
or 
private 
equity 
firms 
through competitive, merit-based pro-
cedures that are open to all eligible 
small business concerns. 
‘‘(2) DETERMINATION.—A written deter-
mination described in this paragraph is a 
written determination by the head of a 
Federal agency that explains how the use 
of the authority under paragraph (1) 
will— 
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00096
Fmt 6652
Sfmt 6202
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
‘‘(A) induce additional venture 
capital, hedge fund, or private equity 
firm funding of small business inno-
vations; 
‘‘(B) substantially contribute to 
the mission of the Federal agency; 
‘‘(C) demonstrate a need for pub-
lic research; and 
‘‘(D) otherwise fulfill the capital 
needs of small business concerns for 
additional financing for the SBIR 
project. 
‘‘(3) REGISTRATION.—A small business 
concern that is majority-owned by mul-
tiple venture capital operating compa-
nies, hedge funds, or private equity firms 
and qualified for participation in the pro-
gram authorized under paragraph (1) 
shall— 
‘‘(A) register with the Adminis-
trator on the date that the small busi-
ness concern submits an application 
for an award under the SBIR pro-
gram; and 
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00097
Fmt 6652
Sfmt 6202
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
‘‘(B) indicate in any SBIR pro-
posal that the small business concern 
is registered under subparagraph (A) 
as majority-owned by multiple ven-
ture 
capital 
operating 
companies, 
hedge funds, or private equity firms. 
‘‘(4) COMPLIANCE.— 
‘‘(A) IN GENERAL.—The head of a 
Federal agency that makes an award 
under this subsection during a fiscal 
year shall collect and submit to the 
Administrator data relating to the 
number and dollar amount of Phase I 
awards, Phase II awards, and any 
other category of awards by the Fed-
eral agency under the SBIR program 
during that fiscal year. 
‘‘(B) ANNUAL REPORTING.—The Ad-
ministrator shall include as part of 
each annual report by the Adminis-
tration under subsection (b)(7) any 
data submitted under subparagraph 
(A) and a discussion of the compli-
ance of each Federal agency that 
makes an award under this sub-
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00098
Fmt 6652
Sfmt 6202
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
section during the fiscal year with 
the 
maximum 
percentages 
under 
paragraph (1). 
‘‘(5) ENFORCEMENT.—If a Federal agen-
cy awards more than the percent of the 
funds allocated for the SBIR program of 
the Federal agency authorized under 
paragraph (1) for a purpose described in 
paragraph (1), the head of the Federal 
agency shall transfer an amount equal to 
the amount awarded in excess of the 
amount authorized under paragraph (1) 
to the funds for general SBIR programs 
from the non-SBIR and non-STTR re-
search and development funds of the Fed-
eral agency not later than 180 days after 
the date on which the Federal agency 
made the award that caused the total 
awarded under paragraph (1) to be more 
than the amount authorized under para-
graph (1) for a purpose described in para-
graph (1). 
‘‘(6) FINAL DECISIONS ON APPLICATIONS 
UNDER THE SBIR PROGRAM.— 
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00099
Fmt 6652
Sfmt 6202
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
100 
‘‘(A) DEFINITION.—In this para-
graph, the term ‘covered small busi-
ness concern’ means a small business 
concern that— 
‘‘(i) was not majority-owned 
by multiple venture capital oper-
ating companies, hedge funds, or 
private equity firms on the date 
on which the small business con-
cern submitted an application in 
response to a solicitation under 
the SBIR programs; and 
‘‘(ii) on the date of the award 
under the SBIR program is major-
ity-owned by multiple venture 
capital 
operating 
companies, 
hedge funds, or private equity 
firms. 
‘‘(B) IN
GENERAL.—If a Federal 
agency does not make an award 
under a solicitation under the SBIR 
program before the date that is 9 
months after the date on which the 
period for submitting applications 
under the solicitation ends— 
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00100
Fmt 6652
Sfmt 6202
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
101 
‘‘(i) a covered small business 
concern is eligible to receive the 
award, without regard to whether 
the covered small business con-
cern meets the requirements for 
receiving an award under the 
SBIR program for a small busi-
ness concern that is majority- 
owned by multiple venture cap-
ital operating companies, hedge 
funds, or private equity firms, if 
the covered small business con-
cern meets all other requirements 
for such an award; and 
‘‘(ii) the head of the Federal 
agency shall transfer an amount 
equal to any amount awarded to a 
covered small business concern 
under the solicitation to the funds 
for general SBIR programs from 
the non-SBIR and non-STTR re-
search and development funds of 
the Federal agency, not later than 
90 days after the date on which 
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00101
Fmt 6652
Sfmt 6202
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
102 
the Federal agency makes the 
award. 
‘‘(7) EVALUATION CRITERIA.—A Federal 
agency may not use investment of ven-
ture capital or investment from hedge 
funds or private equity firms as a cri-
terion for the award of contracts under 
the SBIR program or STTR program.’’. 
(b) TECHNICAL
AND CONFORMING AMEND-
MENT.—Section 3 of the Small Business Act (15 
U.S.C. 632) is amended by adding at the end 
the following: 
‘‘(aa) VENTURE CAPITAL OPERATING COM-
PANY.—In this Act, the term ‘venture capital 
operating company’ means an entity de-
scribed in clause (i), (v), or (vi) of section 
121.103(b)(5) of title 13, Code of Federal Regu-
lations (or any successor thereto). 
‘‘(bb) HEDGE FUND.—In this Act, the term 
‘hedge fund’ has the meaning given that term 
in section 13(h)(2) of the Bank Holding Com-
pany Act of 1956 (12 U.S.C. 1851(h)(2)). 
‘‘(cc) PRIVATE EQUITY FIRM.—In this Act, 
the term ‘private equity firm’ has the meaning 
given the term ‘private equity fund’ in section 
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00102
Fmt 6652
Sfmt 6202
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
103 
13(h)(2) of the Bank Holding Company Act of 
1956 (12 U.S.C. 1851(h)(2)).’’. 
SEC. 107. ENSURING THAT INNOVATIVE SMALL BUSI-
NESSES WITH SUBSTANTIAL INVESTMENT 
FROM VENTURE CAPITAL OPERATING COM-
PANIES, HEDGE FUNDS, OR PRIVATE EQUITY 
FIRMS ARE ABLE TO PARTICIPATE IN THE 
SBIR AND STTR PROGRAMS. 
Section 9 of the Small Business Act (15 
U.S.C. 638), as amended by this Act, is further 
amended by adding at the end the following: 
‘‘(ee) VENTURE CAPITAL OPERATING COMPA-
NIES, HEDGE
FUNDS, 
AND
PRIVATE
EQUITY 
FIRMS.—Effective only for the SBIR and STTR 
programs the following shall apply: 
‘‘(1) A business concern that has more 
than 500 employees shall not qualify as a 
small business concern. 
‘‘(2) In determining whether a small 
business concern is independently owned 
and operated under section 3(a)(1) or 
meets the small business size standards 
instituted under section 3(a)(2), the Ad-
ministrator shall not consider a business 
concern to be affiliated with a venture 
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00103
Fmt 6652
Sfmt 6202
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
104 
capital operating company, hedge fund, 
or private equity firm (or with any other 
business that the venture capital oper-
ating company, hedge fund, or private eq-
uity firm has financed) if— 
‘‘(A) the venture capital operating 
company, hedge fund, or private eq-
uity firm does not own 50 percent or 
more of the business concern; and 
‘‘(B) employees of the venture 
capital operating company, hedge 
fund, or private equity firm do not 
constitute a majority of the board of 
directors of the business concern. 
‘‘(3) A business concern shall be 
deemed to be ‘independently owned and 
operated’ if— 
‘‘(A) it is owned in majority part 
by one or more natural persons or 
venture capital operating companies, 
hedge funds, or private equity firms; 
‘‘(B) there is no single venture 
capital operating company, hedge 
fund, or private equity firm that owns 
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00104
Fmt 6652
Sfmt 6202
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
105 
50 percent or more of the business 
concern; and 
‘‘(C) there is no single venture 
capital operating company, hedge 
fund, or private equity firm the em-
ployees of which constitute a major-
ity of the board of directors of the 
business concern. 
‘‘(4) If a venture capital operating 
company, hedge fund, or private equity 
firm controlled by a business with more 
than 500 employees (in this paragraph re-
ferred to as a ‘VCOC, hedge fund, or pri-
vate equity firm under large business 
control’) has an ownership interest in a 
small business concern that is owned in 
majority part by venture capital oper-
ating companies, hedge funds, or private 
equity firms, the small business concern 
is eligible to receive an award under the 
SBIR or STTR program only if— 
‘‘(A) not more than two VCOCs, 
hedge funds, or private equity firms 
under large business control have an 
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00105
Fmt 6652
Sfmt 6202
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
106 
ownership interest in the small busi-
ness concern; and 
‘‘(B) the VCOCs, hedge funds, or 
private equity firms under large busi-
ness control do not collectively own 
more than 20 percent of the small 
business concern.’’. 
SEC. 108. SBIR AND STTR SPECIAL ACQUISITION PREF-
ERENCE. 
Section 9(r) of the Small Business Act (15 
U.S.C. 638(r)) is amended by adding at the end 
the following: 
‘‘(4) PHASE III AWARDS.—To the great-
est extent practicable, Federal agencies 
and Federal prime contractors shall issue 
Phase III awards relating to technology, 
including sole source awards, to the SBIR 
and STTR award recipients that devel-
oped the technology.’’. 
SEC. 109. COLLABORATING WITH FEDERAL LABORATORIES 
AND RESEARCH AND DEVELOPMENT CEN-
TERS. 
Section 9 of the Small Business Act (15 
U.S.C. 638), as amended by this Act, is further 
amended by adding at the end the following: 
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00106
Fmt 6652
Sfmt 6202
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
107 
‘‘(ff) COLLABORATING WITH FEDERAL LAB-
ORATORIES
AND RESEARCH
AND DEVELOPMENT 
CENTERS.— 
‘‘(1) AUTHORIZATION.—Subject to the 
limitations under this section, the head of 
each participating Federal agency may 
make SBIR and STTR awards to any eli-
gible small business concern that— 
‘‘(A) intends to enter into an 
agreement with a Federal laboratory 
or federally funded research and de-
velopment center for portions of the 
activities to be performed under that 
award; or 
‘‘(B) has entered into a coopera-
tive research and development agree-
ment (as defined in section 12(d) of 
the Stevenson-Wydler Technology In-
novation 
Act 
of 
1980 
(15 
U.S.C. 
3710a(d))) with a Federal laboratory. 
‘‘(2) PROHIBITION.—No Federal agency 
shall— 
‘‘(A) condition an SBIR or STTR 
award upon entering into agreement 
with any Federal laboratory or any 
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00107
Fmt 6652
Sfmt 6202
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
108 
federally funded laboratory or re-
search and development center for 
any portion of the activities to be per-
formed under that award; 
‘‘(B) approve an agreement be-
tween a small business concern re-
ceiving a SBIR or STTR award and a 
Federal laboratory or federally fund-
ed laboratory or research and devel-
opment center, if the small business 
concern performs a lesser portion of 
the activities to be performed under 
that award than required by this sec-
tion and by the SBIR Policy Directive 
and the STTR Policy Directive of the 
Administrator; or 
‘‘(C) approve an agreement that 
violates any provision, including any 
data rights protections provision, of 
this section or the SBIR and the 
STTR Policy Directives. 
‘‘(3) IMPLEMENTATION.—Not later than 
180 days after the date of enactment of 
this subsection, the Administrator shall 
modify the SBIR Policy Directive and the 
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00108
Fmt 6652
Sfmt 6202
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
109 
STTR Policy Directive issued under this 
section to ensure that small business con-
cerns— 
‘‘(A) have the flexibility to use the 
resources of the Federal laboratories 
and federally funded research and de-
velopment centers; and 
‘‘(B) are not mandated to enter 
into agreement with any Federal lab-
oratory or any federally funded lab-
oratory or research and development 
center as a condition of an award. 
‘‘(4) ADVANCE
PAYMENT.—If a small 
business concern receiving an award 
under this section enters into an agree-
ment with a Federal laboratory or feder-
ally funded research and development 
center for portions of the activities to be 
performed under that award, the Federal 
laboratory or federally funded research 
and development center may not require 
advance payment from the small business 
concern in an amount greater than the 
amount necessary to pay for 30 days of 
such activities.’’. 
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00109
Fmt 6652
Sfmt 6202
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
110 
SEC. 110. NOTICE REQUIREMENT. 
(a) SBIR PROGRAM.—Section 9(g) of the 
Small Business Act (15 U.S.C. 638(g)) is 
amended— 
(1) in paragraph (10), by striking 
‘‘and’’ at the end; 
(2) in paragraph (11), by striking the 
period at the end and inserting ‘‘; and’’; 
and 
(3) by adding at the end the fol-
lowing: 
‘‘(12) provide timely notice to the Ad-
ministrator of any case or controversy 
before any Federal judicial or adminis-
trative tribunal concerning the SBIR pro-
gram of the Federal agency.’’. 
(b) STTR PROGRAM.—Section 9(o) of the 
Small Business Act (15 U.S.C. 638(o)) is 
amended— 
(1) by striking paragraph (15); 
(2) in paragraph (16), by striking the 
period at the end and inserting ‘‘; and’’; 
(3) by redesignating paragraph (16) as 
paragraph (15); and 
(4) by adding at the end the fol-
lowing: 
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00110
Fmt 6652
Sfmt 6202
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
111 
‘‘(16) provide timely notice to the Ad-
ministrator of any case or controversy 
before any Federal judicial or adminis-
trative tribunal concerning the STTR 
program of the Federal agency.’’. 
SEC. 111. ADDITIONAL SBIR AND STTR AWARDS. 
Section 9 of the Small Business Act (15 
U.S.C. 638), as amended by this Act, is further 
amended by adding at the end the following: 
‘‘(gg) 
ADDITIONAL
SBIR 
AND
STTR 
AWARDS.— 
‘‘(1) EXPRESS AUTHORITY FOR AWARDING 
A
SEQUENTIAL
PHASE
II
AWARD.—A small 
business concern that receives a Phase II 
SBIR award or a Phase II STTR award 
for a project remains eligible to receive 
one additional Phase II SBIR award or 
Phase II STTR award for continued work 
on that project. 
‘‘(2) 
PREVENTING
DUPLICATIVE 
AWARDS.—The head of a Federal agency 
shall verify that any activity to be per-
formed with respect to a project with a 
Phase I or Phase II SBIR or STTR award 
has not been funded under the SBIR pro-
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00111
Fmt 6652
Sfmt 6202
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
112 
gram or STTR program of another Fed-
eral agency.’’. 
TITLE II—OUTREACH AND COM-
MERCIALIZATION 
INITIA-
TIVES 
SEC. 201. TECHNICAL ASSISTANCE FOR AWARDEES. 
Section 9(q) of the Small Business Act (15 
U.S.C. 638(q)) is amended— 
(1) in paragraph (1)— 
(A) by inserting ‘‘or STTR pro-
gram’’ after ‘‘SBIR program’’; and 
(B) by striking ‘‘SBIR projects’’ 
and 
inserting 
‘‘SBIR 
or 
STTR 
projects’’; 
(2) in paragraph (2), by striking ‘‘3 
years’’ and inserting ‘‘5 years’’; and 
(3) in paragraph (3)— 
(A) in subparagraph (A)— 
(i) by inserting ‘‘or STTR’’ 
after ‘‘SBIR’’; and 
(ii) by striking ‘‘$4,000’’ and 
inserting ‘‘$5,000’’; 
(B) by striking subparagraph (B) 
and inserting the following: 
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00112
Fmt 6652
Sfmt 6202
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
113 
‘‘(B) PHASE II.—A Federal agency 
described in paragraph (1) may— 
‘‘(i) provide to the recipient of 
a Phase II SBIR or STTR award, 
through a vendor selected under 
paragraph (2), the services de-
scribed in paragraph (1), in an 
amount equal to not more than 
$5,000 per year; or 
‘‘(ii) authorize the recipient of 
a Phase II SBIR or STTR award 
to 
purchase 
the 
services 
de-
scribed in paragraph (1), in an 
amount equal to not more than 
$5,000 per year, which shall be in 
addition to the amount of the re-
cipient’s award.’’; and 
(C) by adding at the end the fol-
lowing: 
‘‘(C) FLEXIBILITY.—In carrying out 
subparagraphs (A) and (B), each Fed-
eral agency shall provide the allow-
able amounts to a recipient that 
meets the eligibility requirements 
under the applicable subparagraph, if 
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00113
Fmt 6652
Sfmt 6202
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
114 
the recipient requests to seek tech-
nical assistance from an individual or 
entity other than the vendor selected 
under paragraph (2) by the Federal 
agency. 
‘‘(D) LIMITATION.—A Federal agen-
cy may not— 
‘‘(i) use the amounts author-
ized under subparagraph (A) or 
(B) unless the vendor selected 
under paragraph (2) provides the 
technical assistance to the recipi-
ent; or 
‘‘(ii) enter a contract with a 
vendor 
under 
paragraph 
(2) 
under which the amount provided 
for technical assistance is based 
on total number of Phase I or 
Phase II awards.’’. 
SEC. 202. COMMERCIALIZATION READINESS PROGRAM AT 
DEPARTMENT OF DEFENSE. 
(a) IN GENERAL.—Section 9(y) of the Small 
Business Act (15 U.S.C. 638(y)) is amended— 
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00114
Fmt 6652
Sfmt 6202
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
115 
(1) in the subsection heading, by 
striking ‘‘PILOT’’ and inserting ‘‘READI-
NESS’’; 
(2) by striking ‘‘Pilot’’ each place that 
term appears and inserting ‘‘Readiness’’; 
(3) in paragraph (1)— 
(A) by inserting ‘‘or Small Busi-
ness Technology Transfer Program’’ 
after ‘‘Small Business Innovation Re-
search Program’’; and 
(B) by adding at the end the fol-
lowing: ‘‘The authority to create and 
administer 
a 
Commercialization 
Readiness Program under this sub-
section may not be construed to 
eliminate or replace any other SBIR 
program or STTR program that en-
hances the insertion or transition of 
SBIR or STTR technologies, including 
any such program in effect on the 
date of enactment of the National De-
fense Authorization Act for Fiscal 
Year 2006 (Public Law 109–163; 119 
Stat. 3136).’’; 
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00115
Fmt 6652
Sfmt 6202
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
116 
(4) in paragraph (2), by inserting ‘‘or 
Small Business Technology Transfer Pro-
gram’’ after ‘‘Small Business Innovation 
Research Program’’; 
(5) in paragraph (5)— 
(A) by striking ‘‘the Committee on 
Armed Services and the Committee 
on Small Business of the House of 
Representatives’’ and inserting ‘‘the 
Committee on Armed Services, the 
Committee on Small Business, and 
the Committee on Science, Space, and 
Technology of the House of Rep-
resentatives’’; and 
(B) by striking ‘‘shall include’’ and 
inserting ‘‘shall include, in addition 
to the information described in para-
graph (6)(C)’’; 
(6) by redesignating paragraph (5) as 
paragraph (7); 
(7) by striking paragraph (6); and 
(8) by inserting after paragraph (4) 
the following: 
‘‘(5) INSERTION
INCENTIVES.—For any 
contract with a value of not less than 
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00116
Fmt 6652
Sfmt 6202
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
117 
$100,000,000, the Secretary of Defense is 
authorized to— 
‘‘(A) establish goals for the transi-
tion of Phase III technologies in sub-
contracting plans; 
‘‘(B) require a prime contractor 
on such a contract to report the num-
ber and dollar amount of contracts 
entered into by that prime contractor 
for Phase III SBIR or STTR projects; 
and 
‘‘(C) take action to ensure that, if 
a prime contractor on such a con-
tract, after consultation with the Sec-
retary, certifies that an appropriate 
Phase III technology is not available 
to be incorporated into a project of 
the prime contractor, such project 
shall be excluded from any deter-
mination of whether goals under sub-
paragraph (A) have been met. 
‘‘(6) GOAL
FOR
SBIR
AND
STTR
TECH-
NOLOGY INSERTION.—The Secretary of De-
fense shall— 
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00117
Fmt 6652
Sfmt 6202
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
118 
‘‘(A) set a goal to increase the 
number of Phase II SBIR contracts 
and the number of Phase II STTR 
contracts awarded by that Secretary 
that lead to technology transition 
into programs of record or fielded 
systems; 
‘‘(B) use incentives in effect on 
the date of enactment of the Creating 
Jobs Through Small Business Innova-
tion Act of 2011, or create new incen-
tives, to encourage agency program 
managers and prime contractors to 
meet the goal under subparagraph 
(A); and 
‘‘(C) include in the annual report 
under this subsection— 
‘‘(i) the percentage of Phase II 
SBIR and STTR contracts award-
ed by the Secretary that led to 
technology transition into pro-
grams of record or fielded sys-
tems; 
‘‘(ii) information on the status 
of each project that received 
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00118
Fmt 6652
Sfmt 6202
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
119 
funding 
through 
the 
Commer-
cialization 
Readiness 
Program 
and efforts to transition those 
projects into programs of record 
or fielded systems; and 
‘‘(iii) a description of each in-
centive that has been used by the 
Secretary 
under 
subparagraph 
(B) and the effectiveness of that 
incentive with respect to meeting 
the 
goal 
under 
subparagraph 
(A).’’. 
(b) TECHNICAL
AND CONFORMING AMEND-
MENT.—Section 9(i)(1) of the Small Business 
Act (15 U.S.C. 638(i)(1)) is amended by insert-
ing ‘‘(including awards under subsection (y))’’ 
after ‘‘the number of awards’’. 
SEC. 203. COMMERCIALIZATION READINESS PILOT PRO-
GRAM FOR CIVILIAN AGENCIES. 
Section 9 of the Small Business Act (15 
U.S.C. 638), as amended by this Act, is further 
amended by adding at the end the following: 
‘‘(hh) PILOT PROGRAM.— 
‘‘(1) 
AUTHORIZATION.—The 
head 
of 
each covered Federal agency may allo-
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00119
Fmt 6652
Sfmt 6202
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
120 
cate not more than 10 percent of the 
funds allocated to the SBIR program and 
the STTR program of the covered Federal 
agency— 
‘‘(A) for awards for technology de-
velopment, testing, evaluation, and 
commercialization 
assistance 
for 
SBIR 
and 
STTR 
Phase 
II 
tech-
nologies; or 
‘‘(B) to support the progress of re-
search, research and development, 
and 
commercialization 
conducted 
under the SBIR or STTR programs to 
Phase III. 
‘‘(2) APPLICATION
BY
FEDERAL
AGEN-
CY.— 
‘‘(A) IN GENERAL.—A covered Fed-
eral agency may not establish a pilot 
program unless the covered Federal 
agency makes a written application 
to the Administrator, not later than 
90 days before the first day of the fis-
cal year in which the pilot program is 
to be established, that describes a 
compelling reason that additional in-
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00120
Fmt 6652
Sfmt 6202
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
121 
vestment in SBIR or STTR tech-
nologies is necessary, including un-
usually high regulatory, systems inte-
gration, or other costs relating to de-
velopment or manufacturing of iden-
tifiable, highly promising small busi-
ness technologies or a class of such 
technologies 
expected 
to 
substan-
tially advance the mission of the 
agency. 
‘‘(B) DETERMINATION.—The Admin-
istrator shall— 
‘‘(i) make a determination re-
garding an application submitted 
under subparagraph (A) not later 
than 30 days before the first day 
of the fiscal year for which the 
application is submitted; 
‘‘(ii) publish the determina-
tion in the Federal Register; and 
‘‘(iii) make a copy of the deter-
mination and any related mate-
rials available to the Committee 
on Small Business and Entrepre-
neurship of the Senate and the 
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00121
Fmt 6652
Sfmt 6202
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
122 
Committee on Small Business and 
the Committee on Science, Space, 
and Technology of the House of 
Representatives. 
‘‘(3) MAXIMUM AMOUNT OF AWARD.—The 
head of a covered Federal agency may 
not make an award under a pilot pro-
gram in excess of 3 times the dollar 
amounts generally established for Phase 
II awards under subsection (j)(2)(D) or 
(p)(2)(B)(ix). 
‘‘(4) 
REGISTRATION.—Any 
applicant 
that receives an award under a pilot pro-
gram shall register with the Adminis-
trator in a registry that is available to 
the public. 
‘‘(5) AWARD
CRITERIA
OR
CONSIDER-
ATION.—When making an award under 
this section, the head of a covered Fed-
eral agency shall give consideration to 
whether the technology to be supported 
by the award is likely to be manufactured 
in the United States. 
‘‘(6) REPORT.—The head of each cov-
ered Federal agency shall include in the 
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00122
Fmt 6652
Sfmt 6202
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
123 
annual report of the covered Federal 
agency to the Administrator an analysis 
of the various activities considered for 
inclusion in the pilot program of the cov-
ered Federal agency and a statement of 
the reasons why each activity considered 
was included or not included, as the case 
may be. 
‘‘(7) TERMINATION.—The authority to 
establish a pilot program under this sec-
tion expires at the end of fiscal year 2014. 
‘‘(8) DEFINITIONS.—In this subsection— 
‘‘(A) the term ‘covered Federal 
agency’— 
‘‘(i) means a Federal agency 
participating in the SBIR pro-
gram or the STTR program; and 
‘‘(ii) does not include the De-
partment of Defense; and 
‘‘(B) 
the 
term 
‘pilot 
program’ 
means the program established under 
paragraph (1).’’. 
SEC. 204. INTERAGENCY POLICY COMMITTEE. 
(a) ESTABLISHMENT.—The Director of the 
Office of Science and Technology Policy shall 
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00123
Fmt 6652
Sfmt 6202
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
124 
establish an Interagency SBIR/STTR Policy 
Committee. 
(b) DUTIES.—The Interagency SBIR/STTR 
Policy Committee shall review the following 
issues and make policy recommendations on 
ways to improve program effectiveness and 
efficiency: 
(1) The public and government data-
bases described in section 9(k) of the 
Small Business Act (15 U.S.C. 638(k)). 
(2) Federal agency flexibility in estab-
lishing Phase I and II award sizes, in-
cluding appropriate criteria for exer-
cising such flexibility. 
(3) Commercialization assistance best 
practices of Federal agencies with signifi-
cant potential to be employed by other 
agencies, and the appropriate steps to 
achieve that leverage, as well as pro-
posals for new initiatives to address 
funding gaps that business concerns face 
after Phase II but before commercializa-
tion. 
(4) Developing and incorporating a 
standard evaluation framework to enable 
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00124
Fmt 6652
Sfmt 6202
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
125 
systematic assessment of SBIR and STTR, 
including through improved tracking of 
awards and outcomes and development of 
performance measures for the SBIR pro-
gram and STTR program of each Federal 
agency. 
(c) 
REPORTS.—The 
Interagency 
SBIR/ 
STTR Policy Committee shall transmit to the 
Committee on Science, Space, and Technology 
and the Committee on Small Business of the 
House of Representatives and to the Com-
mittee on Small Business and Entrepreneur-
ship of the Senate— 
(1) a report on its review and rec-
ommendations under subsection (b)(1) 
not later than 1 year after the date of en-
actment of this Act; 
(2) a report on its review and rec-
ommendations under subsection (b)(2) 
not later than 18 months after the date of 
enactment of this Act; 
(3) a report on its review and rec-
ommendations under subsection (b)(3) 
not later than 2 years after the date of 
enactment of this Act; and 
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00125
Fmt 6652
Sfmt 6202
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
126 
(4) a report on its review and rec-
ommendations under subsection (b)(4) 
not later than 2 years after the date of 
enactment of this Act. 
SEC. 205. CLARIFYING THE DEFINITION OF ‘‘PHASE III’’. 
(a) PHASE III AWARDS.—Section 9(e) of the 
Small Business Act (15 U.S.C. 638(e)), as 
amended by this Act, is further amended— 
(1) in paragraph (4)(C), in the matter 
preceding clause (i), by inserting ‘‘for 
work that derives from, extends, or com-
pletes efforts made under prior funding 
agreements under the SBIR program’’ 
after ‘‘phase’’; 
(2) in paragraph (6)(C), in the matter 
preceding clause (i), by inserting ‘‘for 
work that derives from, extends, or com-
pletes efforts made under prior funding 
agreements under the STTR program’’ 
after ‘‘phase’’; 
(3) in paragraph (8), by striking ‘‘and’’ 
at the end; 
(4) in paragraph (9), by striking the 
period at the end and inserting a semi-
colon; and 
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00126
Fmt 6652
Sfmt 6202
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
127 
(5) by adding at the end the fol-
lowing: 
‘‘(10) 
the 
term 
‘commercialization’ 
means— 
‘‘(A) the process of developing 
products, processes, technologies, or 
services; and 
‘‘(B) the production and delivery 
of products, processes, technologies, 
or services for sale (whether by the 
originating party or by others) to or 
use by the Federal Government or 
commercial markets;’’. 
(b) TECHNICAL
AND CONFORMING AMEND-
MENTS.—Section 9 of the Small Business Act 
(15 U.S.C. 638), as amended by this Act, is fur-
ther amended— 
(1) in subsection (e)— 
(A) in paragraph (4)(C)(ii), by 
striking ‘‘scientific review criteria’’ 
and inserting ‘‘merit-based selection 
procedures’’; 
(B) in paragraph (9), by striking 
‘‘the second or the third phase’’ and 
inserting ‘‘Phase II or Phase III’’; and 
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00127
Fmt 6652
Sfmt 6202
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
128 
(C) by adding at the end the fol-
lowing: 
‘‘(11) the term ‘Phase I’ means— 
‘‘(A) with respect to the SBIR pro-
gram, the first phase described in 
paragraph (4)(A); and 
‘‘(B) with respect to the STTR pro-
gram, the first phase described in 
paragraph (6)(A); 
‘‘(12) the term ‘Phase II’ means— 
‘‘(A) with respect to the SBIR pro-
gram, the second phase described in 
paragraph (4)(B); and 
‘‘(B) with respect to the STTR pro-
gram, the second phase described in 
paragraph (6)(B); and 
‘‘(13) the term ‘Phase III’ means— 
‘‘(A) with respect to the SBIR pro-
gram, the third phase described in 
paragraph (4)(C); and 
‘‘(B) with respect to the STTR pro-
gram, the third phase described in 
paragraph (6)(C).’’; 
(2) in subsection (j)— 
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00128
Fmt 6652
Sfmt 6202
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS
134 
(I) 
by 
striking 
‘‘second 
phase’’ and inserting ‘‘Phase 
II’’; and 
(II) 
by 
striking 
‘‘third 
phase’’ and inserting ‘‘Phase 
III’’; and 
(C) in paragraph (2), by striking 
‘‘third phase’’ and inserting ‘‘Phase 
III’’; and 
(9) in subsection (u)(2)(B), by striking 
‘‘the first phase’’ and inserting ‘‘Phase I’’. 
SEC. 206. SHORTENED PERIOD FOR FINAL DECISIONS ON 
PROPOSALS AND APPLICATIONS. 
(a) IN GENERAL.—Section 9 of the Small 
Business Act (15 U.S.C. 638), as amended by 
this Act, is further amended— 
(1) in subsection (g)(4)— 
(A) by inserting ‘‘(A)’’ after ‘‘(4)’’; 
(B) by adding ‘‘and’’ after the 
semicolon at the end; and 
(C) by adding at the end the fol-
lowing: 
‘‘(B) make a final decision on each 
proposal submitted under the SBIR pro-
gram— 
VerDate Mar 15 2010 
22:06 Jul 01, 2011
Jkt 099200
PO 00000
Frm 00134
Fmt 6652
Sfmt 6202
E:\BILLS\H1425.RH
H1425
mstockstill on DSK4VPTVN1PROD with BILLS