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STTR Policy Directive made pursuant to 
subsection (a); 
(ii) the effectiveness of the management 
information system of each Federal agency 
that participates in the SBIR program or 
STTR program in identifying duplicative 
SBIR and STTR projects; 
(iii) the effectiveness of the risk man-
agement strategies of each Federal agency 
that participates 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; 
(iv) 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; 
(v) the success of each Federal agency 
that participates in the SBIR program or 
STTR program in reducing fraud, waste, 
and abuse in the SBIR program or the 
STTR program of the Federal agency; and 
(vi) the extent to which the Inspector 
General of each Federal agency that partici-
pates in the SBIR program or STTR pro-
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gram effectively conducts investigations of 
individuals alleged to have submitted false 
claims or violated Federal law relating to 
fraud, conflicts of interest, bribery, gratuity, 
or other misconduct; and 
(B) submit to the Committee on Small 
Business and Entrepreneurship of the Senate, 
the Committee on Small Business of the House 
of Representatives, and the head of each Federal 
agency that participates in the SBIR program 
or STTR program a report on the results of the 
study conducted under subparagraph (A). 
SEC. 5314. INTERAGENCY POLICY COMMITTEE. 
(a) ESTABLISHMENT.—The Director of the Office of 
Science and Technology Policy (in this section referred to 
as the ‘‘Director’’), in conjunction with the Administrator, 
shall establish an Interagency SBIR/STTR Policy Com-
mittee (in this section referred to as the ‘‘Committee’’) com-
prised of 1 representative from each Federal agency with 
an SBIR program or an STTR program and 1 representa-
tive of the Office of Management and Budget. 
(b) COCHAIRPERSONS.—The Director and the Admin-
istrator shall serve as cochairpersons of the Committee. 
(c) DUTIES.—The Committee shall review, and make 
policy recommendations on ways to improve the effective-
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ness and efficiency of, the SBIR program and the STTR 
program, including— 
(1) reviewing the effectiveness of the public and 
government databases described in section 9(k) of the 
Small Business Act (15 U.S.C. 638(k)); 
(2) identifying— 
(A) best practices for commercialization as-
sistance by Federal agencies that have signifi-
cant potential to be employed by other Federal 
agencies; and 
(B) proposals by Federal agencies for ini-
tiatives to address challenges for small business 
concerns in obtaining funding after a Phase II 
award ends and before commercialization; and 
(3) developing and incorporating a standard 
evaluation framework to enable systematic assessment 
of the SBIR program and STTR program, including 
through improved tracking of awards and outcomes 
and development of performance measures for the 
SBIR program and STTR program of each Federal 
agency. 
(d) REPORTS.—The Committee shall submit to the 
Committee on Small Business and Entrepreneurship of the 
Senate and the Committee on Science and Technology and
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the Committee on Small Business of the House of Represent-
atives— 
(1) a report on the review by and recommenda-
tions of the Committee under subsection (c)(1) not 
later than 1 year after the date of enactment of this 
Act; 
(2) a report on the review by and recommenda-
tions of the Committee under subsection (c)(2) not 
later than 18 months after the date of enactment of 
this Act; and 
(3) a report on the review by and recommenda-
tions of the Committee under subsection (c)(3) not 
later than 2 years after the date of enactment of this 
Act. 
SEC. 5315. 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
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(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 
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.’’. 
TITLE LIV—POLICY DIRECTIVES 
SEC. 5401. 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
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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 LV—OTHER PROVISIONS 
SEC. 5501. RESEARCH TOPICS AND PROGRAM DIVERSIFICA-
TION. 
(a) SBIR PROGRAM.—Section 9(g) of the Small Busi-
ness Act (15 U.S.C. 638(g)) is amended— 
(1) in paragraph (3)— 
(A) in the matter preceding subparagraph 
(A), by striking ‘‘broad research topics and to 
topics that further 1 or more critical tech-
nologies’’ and inserting ‘‘applications to the Fed-
eral agency for support of projects relating to 
nanotechnology, rare diseases, security, energy, 
transportation, or improving the security and 
quality of the water supply of the United States, 
and the efficiency of water delivery systems and 
usage patterns in the United States (including 
the territories of the United States) through the
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use of technology (to the extent that the projects 
relate to the mission of the Federal agency), 
broad research topics, and topics that further 1 
or more critical technologies or research prior-
ities’’; 
(B) in subparagraph (A), by striking ‘‘or’’ 
at the end; and 
(C) by adding at the end the following: 
‘‘(C) the National Academy of Sciences, in 
the final report issued by the ‘America’s Energy 
Future: Technology Opportunities, Risks, and 
Tradeoffs’ project, and in any subsequent report 
by the National Academy of Sciences on sustain-
ability, energy, or alternative fuels; 
‘‘(D) the National Institutes of Health, in 
the annual report on the rare diseases research 
activities of the National Institutes of Health for 
fiscal year 2005, and in any subsequent report 
by the National Institutes of Health on rare dis-
eases research activities; 
‘‘(E) the National Academy of Sciences, in 
the final report issued by the ‘Transit Research 
and Development: Federal Role in the National 
Program’ project and the report entitled ‘Trans-
portation Research, Development and Technology
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Strategic Plan (2006–2010)’ issued by the Re-
search and Innovative Technology Administra-
tion of the Department of Transportation, and 
in any subsequent report issued by the National 
Academy of Sciences or the Department of 
Transportation on transportation and infra-
structure; or 
‘‘(F) the national nanotechnology strategic 
plan required under section 2(c)(4) of the 21st 
Century Nanotechnology Research and Develop-
ment Act (15 U.S.C. 7501(c)(4)) and in any re-
port issued by the National Science and Tech-
nology Council Committee on Technology that fo-
cuses on areas of nanotechnology identified in 
such plan;’’; and 
(2) by adding after paragraph (12), as added by 
section 5111(a) of this Act, the following: 
‘‘(13) encourage applications under the SBIR 
program (to the extent that the projects relate to the 
mission of the Federal agency)— 
‘‘(A) from small business concerns in geo-
graphic areas underrepresented in the SBIR pro-
gram or located in rural areas (as defined in 
section 1393(a)(2) of the Internal Revenue Code 
of 1986);
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‘‘(B) small business concerns owned and 
controlled by women; 
‘‘(C) small business concerns owned and 
controlled by veterans; 
‘‘(D) small business concerns owned and 
controlled by Native Americans; and 
‘‘(E) small business concerns located in a 
geographic area with an unemployment rates 
that exceed the national unemployment rate, 
based on the most recently available monthly 
publications of the Bureau of Labor Statistics of 
the Department of Labor.’’. 
(b) STTR PROGRAM.—Section 9(o) of the Small Busi-
ness Act (15 U.S.C. 638(o)), as amended by section 5111(b) 
of this Act, is amended— 
(1) in paragraph (3)— 
(A) in the matter preceding subparagraph 
(A), by striking ‘‘broad research topics and to 
topics that further 1 or more critical tech-
nologies’’ and inserting ‘‘applications to the Fed-
eral agency for support of projects relating to 
nanotechnology, security, energy, rare diseases, 
transportation, or improving the security and 
quality of the water supply of the United States 
(to the extent that the projects relate to the mis-
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sion of the Federal agency), broad research top-
ics, and topics that further 1 or more critical 
technologies or research priorities’’; 
(B) in subparagraph (A), by striking ‘‘or’’ 
at the end; and 
(C) by adding at the end the following: 
‘‘(C) the National Academy of Sciences, in 
the final report issued by the ‘America’s Energy 
Future: Technology Opportunities, Risks, and 
Tradeoffs’ project, and in any subsequent report 
by the National Academy of Sciences on sustain-
ability, energy, or alternative fuels; 
‘‘(D) the National Institutes of Health, in 
the annual report on the rare diseases research 
activities of the National Institutes of Health for 
fiscal year 2005, and in any subsequent report 
by the National Institutes of Health on rare dis-
eases research activities; 
‘‘(E) the National Academy of Sciences, in 
the final report issued by the ‘Transit Research 
and Development: Federal Role in the National 
Program’ project and the report entitled ‘Trans-
portation Research, Development and Technology 
Strategic Plan (2006–2010)’ issued by the Re-
search and Innovative Technology Administra-
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tion of the Department of Transportation, and 
in any subsequent report issued by the National 
Academy of Sciences or the Department of 
Transportation on transportation and infra-
structure; or 
‘‘(F) the national nanotechnology strategic 
plan required under section 2(c)(4) of the 21st 
Century Nanotechnology Research and Develop-
ment Act (15 U.S.C. 7501(c)(4)) and in any re-
port issued by the National Science and Tech-
nology Council Committee on Technology that fo-
cuses on areas of nanotechnology identified in 
such plan;’’; 
(2) in paragraph (15), by striking ‘‘and’’ at the 
end; 
(3) in paragraph (16), by striking the period at 
the end and inserting ‘‘; and’’; and 
(4) by adding at the end the following: 
‘‘(17) encourage applications under the STTR 
program (to the extent that the projects relate to the 
mission of the Federal agency)— 
‘‘(A) from small business concerns in geo-
graphic areas underrepresented in the STTR 
program or located in rural areas (as defined in
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section 1393(a)(2) of the Internal Revenue Code 
of 1986); 
‘‘(B) small business concerns owned and 
controlled by women; 
‘‘(C) small business concerns owned and 
controlled by veterans; 
‘‘(D) small business concerns owned and 
controlled by Native Americans; and 
‘‘(E) small business concerns located in a 
geographic area with an unemployment rates 
that exceed the national unemployment rate, 
based on the most recently available monthly 
publications of the Bureau of Labor Statistics of 
the Department of Labor.’’. 
(c) RESEARCH AND DEVELOPMENT FOCUS.—Section 
9(x) of the Small Business Act (15 U.S.C. 638(x)) is amend-
ed— 
(1) by striking paragraph (2); and 
(2) by redesignating paragraph (3) as para-
graph (2). 
SEC. 5502. 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 amended by adding at the end 
the following:
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‘‘(ll) 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.—
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‘‘(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 and Tech-
nology of the House of Representatives.’’. 
SEC. 5503. 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 amended by adding at the end 
the following:
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‘‘(mm) 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.’’. 
Attest: 
Secretary.
112TH CONGRESS 
1ST SESSION 
H.R. 1540 
AMENDMENT 
December 1, 2011 
Ordered to be printed as passed