308 
(1) make available for the purpose of meeting the requirements of 
subsection (a) an amount of its extramural budget for basic research 
that exceeds the percentage specified in subsection (a); or 
(2) after September 30, 2015, use any of its SBIR program budget 
established under subsection (a) for the purpose of funding administra-
tive costs of the program, including costs associated with salaries and 
expenses. 
(c) EXCLUSION OF CERTAIN FUNDING AGREEMENTS.—A funding agree-
ment with a small business concern for research or research and develop-
ment that results from a competitive or single source selection other than 
an SBIR program shall not be considered to meet any portion of the per-
centage requirement of subsection (a). 
(d) RULE OF CONSTRUCTION.—Nothing in this section shall be construed 
to prohibit a Federal agency from expending with small business concerns 
an amount of the extramural budget for research or research and develop-
ment of the agency that exceeds the amount required under subsection (a). 
§ 263102. Administration by Federal agencies 
(a) IN GENERAL.—An SBIR agency shall, in accordance with this divi-
sion (including policy directives under section 263104 of this title)— 
(1) unilaterally determine categories of projects to be in its SBIR 
program; 
(2) issue SBIR program solicitations in accordance with a schedule 
determined cooperatively with the Administrator; 
(3) unilaterally determine research topics within the SBIR agency’s 
SBIR program solicitations, giving special consideration to broad re-
search topics and to topics that further 1 or more critical technologies, 
as identified by— 
(A) the National Critical Technologies Panel in the reports re-
quired under section 603 of the National Science and Technology 
Policy, Organization, and Priorities Act of 1976 (42 U.S.C. 6683) 
(as in effect before January 1, 2001); or 
(B) the Secretary of Defense, in the reports required under sec-
tion 2522 of title 10 (as in effect before February 10, 1996); 
(4)(A) unilaterally receive and evaluate proposals resulting from 
SBIR program proposals; and 
(B) make a final decision on each proposal submitted under the 
SBIR program— 
(i)(I) in the case of the National Institutes of Health or the 
National Science Foundation, not later than 1 year after the 
date on which the applicable solicitation closes; or 
VerDate Sep 11 2014 
04:03 Jul 18, 2018
Jkt 079200
PO 00000
Frm 00308
Fmt 6652
Sfmt 6221
E:\BILLS\H6389.IH
H6389
SSpencer on DSKBBXCHB2PROD with BILLS
309 
(II) in the case of SBIR participating agency, not later 
than 90 days after the date on which the applicable solicita-
tion closes,; or 
(ii) if the Administrator authorizes an extension with re-
spect to a solicitation, not later than 90 days after the date 
that would otherwise be applicable to the agency under clause 
(i); 
(5) subject to section 263111(b) of this title— 
(A) unilaterally select awardees for its SBIR program funding 
agreements; and 
(B) inform each awardee under a funding agreement, to the ex-
tent possible, of the expenses of the awardee that will be allowable 
under the funding agreement; 
(6) administer its own SBIR program funding agreements (or dele-
gate such administration to another Federal agency); 
(7)(A) make payments to recipients of SBIR program funding agree-
ments on the basis of progress toward or completion of the funding 
agreement requirements; and 
(B) in all cases, make payment to recipients under such agreements 
in full, subject to audit, on or before the last day of the 12-month pe-
riod beginning on the date of completion of the funding agreement re-
quirements; 
(8) collect annually, and maintain in a common format in accordance 
with the simplified reporting requirements under section 263304 of this 
title, such information from awardees as is necessary to assess the 
SBIR program, including information necessary to maintain the data-
base under section 263301 of this title, including— 
(A) whether an awardee— 
(i) has venture capital, hedge fund, or private equity firm 
investment or is majority-owned by multiple venture capital 
operating companies, hedge funds, or private equity firms 
and, if so— 
(I) the amount of venture capital, hedge fund, or pri-
vate 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 
States and, if so, the name of any such individual; or 
VerDate Sep 11 2014 
04:03 Jul 18, 2018
Jkt 079200
PO 00000
Frm 00309
Fmt 6652
Sfmt 6221
E:\BILLS\H6389.IH
H6389
SSpencer on DSKBBXCHB2PROD with BILLS
310 
(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 
investor; 
(iv) is owned by a socially or economically disadvantaged 
individual or has a socially disadvantaged individual or eco-
nomically disadvantaged individual as a principal investor; 
(v) is a faculty member or a student at an institution of 
higher education (as 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 section 263105(c) of 
this title; 
(B) a justification statement from the agency, if an awardee re-
ceives an award in an amount that is more than the award guide-
lines under this division; and 
(C) data with respect to the FAST program; 
(9)(A) include a section on its SBIR program in its annual perform-
ance plan required by subsections (a) and (b) of section 1115 of title 
31; and 
(B) submit that section to the Committee on Small Business and 
Entrepreneurship of the Senate and the Committee on Science and 
Committee on Small Business of the House of Representatives; 
(10) provide for and fully implement the tenets of Executive Order 
13329 (Encouraging Innovation in Manufacturing); and 
(11) provide timely notice to the Administrator of any case or con-
troversy before any Federal judicial or administrative tribunal con-
cerning the SBIR program of the SBIR agency. 
(b) RESEARCH AND DEVELOPMENT FOCUS.— 
(1) REVISION
AND
UPDATE
OF
CRITERIA
AND
PROCEDURES
OF 
IDENTIFICATION.—In carrying out subsection (a), the Secretary of De-
fense shall, not less often than once every 4 years, revise and update 
the criteria and procedures used to identify areas of the research and 
development efforts of the Department of Defense that are suitable for 
the provision of funds under the SBIR program and the STTR pro-
gram of the Department of Defense. 
(2) USE OF PLANS.—The criteria and procedures described in para-
graph (1) shall be developed through the use of the most current 
versions of the following plans: 
(A) The Joint Warfighting Science and Technology Plan re-
quired under section 270 of the National Defense Authorization 
VerDate Sep 11 2014 
04:03 Jul 18, 2018
Jkt 079200
PO 00000
Frm 00310
Fmt 6652
Sfmt 6221
E:\BILLS\H6389.IH
H6389
SSpencer on DSKBBXCHB2PROD with BILLS
311 
Act for Fiscal Year 1997 (10 U.S.C. 2501 note; Public Law 104– 
201). 
(B) The Defense Technology Area Plan of the Department of 
Defense. 
(C) The Basic Research Plan of the Department of Defense. 
(3) INPUT IN IDENTIFICATION OF AREAS OF EFFORT.—The criteria 
and procedures described in paragraph (1) shall include input in the 
identification of areas of research and development efforts described in 
that paragraph from Department of Defense program managers and 
program executive officers. 
§ 263103. Funding agreement goals 
(a) IN GENERAL.—A Federal agency that has an extramural budget for 
research or research and development in excess of $20,000,000 for any fis-
cal year shall establish goals specifically for funding agreements for research 
or research and development to small business concerns. 
(b) NO BACKSLIDING.—No goal established by a Federal agency under 
subsection (a) shall be less than the percentage of the Federal agency’s re-
search or research and development budget expended under funding agree-
ments with small business concerns in the immediately preceding fiscal year. 
§ 263104. Policy directives 
(a) IN GENERAL.—The Administrator, after consultation with the Admin-
istrator for Federal Procurement Policy, the Director of the Office of 
Science and Technology Policy, and the Intergovernmental Affairs Division 
of the Office of Management and Budget, shall issue policy directives for 
the general conduct of the SBIR programs within the Federal Government. 
(b) MATTERS TO BE PROVIDED FOR.—Policy directives under subsection 
(a) shall provide for— 
(1) simplified, standardized, and timely SBIR program solicitations; 
(2) a simplified, standardized funding process that provides for— 
(A) the timely receipt and review of proposals; 
(B) outside peer review for at least phase two proposals, if ap-
propriate; 
(C) protection of proprietary information provided in proposals; 
(D) selection of awardees; 
(E) retention by a small business concern of the rights to data 
generated by the small business concern in the performance of an 
SBIR award for a period of not less than 4 years (without regard 
to whether the small business concern continues to qualify as a 
small business concern for all of that period); 
VerDate Sep 11 2014 
04:03 Jul 18, 2018
Jkt 079200
PO 00000
Frm 00311
Fmt 6652
Sfmt 6221
E:\BILLS\H6389.IH
H6389
SSpencer on DSKBBXCHB2PROD with BILLS