resentatives a report on the implementation and 
best practices of the due diligence programs es-
tablished under section 9(vv) of the Small Busi-
ness Act (15 U.S.C. 638(vv)) across Federal 
agencies required to establish an SBIR or 
STTR program. 
‘‘(B) STUDY.—The study shall evaluate— 
‘‘(i) the effectiveness of each Federal 
agency that participates in the SBIR pro-
gram or STTR program in identifying— 
‘‘(I) enhanced risk in cybersecu-
rity practices in SBIR and STTR 
projects; 
‘‘(II) enhanced risk in patents, 
including 
co-authorship 
with 
aca-
demics in foreign countries of concern 
in SBIR and STTR projects; 
‘‘(III) enhanced foreign influence 
risk among employees of small busi-
ness concerns involved in SBIR and 
STTR projects; 
‘‘(IV) foreign ownership of a 
small business concern seeking an 
award, including the financial ties and 
obligations (which shall include sur-
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ety, equity, and debt obligations) in 
SBIR and STTR projects; and 
‘‘(V) security risks among appli-
cants to the SBIR program or the 
STTR program, including connections 
to an entity, including any affiliates, 
spinouts, or subsidiaries of the entity, 
or individual on one or more of the 
lists referenced in paragraph (16)(D) 
of section 9(g) of the Small Business 
Act (15 U.S.C. 638(g)); 
‘‘(ii) by year, the number of proposals 
and number of small business concerns 
with foreign risks by each Federal agency 
that participates in the SBIR program or 
STTR program, including a delineation of 
how many of those small business concerns 
have previously received an award under 
the SBIR program or STTR program and 
the nature of those foreign risks made by 
each Federal agency; and 
‘‘(iii) the extent to which the Inspec-
tor General and counterintelligence au-
thorities of each Federal agency that par-
ticipates in the SBIR or STTR program 
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effectively conducts investigations, audits, 
inspections, and outreach relating to the 
due diligence program to assess security 
risks in the SBIR or STTR program.’’. 
TITLE V—SIMPLIFYING SBIR– 
STTR STANDARDS 
SEC. 501. IMPROVING DIRECT TO PHASE II AUTHORITIES. 
Section 9(cc) of the Small Business Act (15 U.S.C. 
638(cc)) is amended to read as follows: 
‘‘(cc) PHASE FLEXIBILITY.— 
‘‘(1) AWARDING A PHASE II AWARD ABSENT A 
PHASE I AWARD.—Each agency with an SBIR pro-
gram may provide to a small business concern an 
award under Phase II of the SBIR program with re-
spect to a project, without regard to whether the 
small business concern was provided an award under 
Phase I of an SBIR program with respect to such 
project, if the head of the agency determines that 
the small business concern has completed the deter-
minations described in subsection (e)(4)(A) with re-
spect to such project despite not having been pro-
vided a Phase I award. 
‘‘(2) LIMITATIONS ON AWARDS.— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), the head of each agency with 
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an SBIR program may award not more than 10 
percent of the funds allocated for the SBIR 
program of the agency in a given fiscal year 
under the authority of this subsection. 
‘‘(B) NATIONAL INSTITUTES OF HEALTH 
AND DEPARTMENT OF DEFENSE.—The Director 
of the National Institutes of Health may award 
not more than 30 percent of the funds allocated 
for the SBIR program of the National Insti-
tutes of Health in a given fiscal year and the 
Secretary of Defense may award not more than 
30 percent of the funds allocated for the SBIR 
program of each component in the Department 
of Defense in a given fiscal year under the au-
thority of this subsection. 
‘‘(C) 
LIMIT
ON
ELIGIBILITY
FOR 
AWARDS.—An agency may not make an award 
under this subsection to a small business con-
cern, including its affiliates, spinouts, and sub-
sidiaries, that has received more than 25 Phase 
II awards. 
‘‘(D) LIMIT ON NUMBER OF AWARDS.—An 
agency may make not more than 25 awards 
under this subsection to a small business con-
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cern, including its affiliates, spinouts, and sub-
sidiaries.’’. 
SEC. 502. IMPROVING SBIR AND STTR DATA COLLECTION. 
(a) ADDITIONAL DATA FIELDS
IN SBIR DATA-
BASE.—Section 9(k)(1) of the Small Business Act (15 
U.S.C. 638(k)(1)) is amended— 
(1) in subparagraph (E)(iv), by striking ‘‘and’’ 
at the end; 
(2) in subparagraph (F)(v), by striking the pe-
riod at the end and inserting ‘‘; and’’; and 
(3) by adding at the end the following: 
‘‘(G) for each award granted, whether the 
award is classified or designated as— 
‘‘(i) Phase 1A, under subsection (pp); 
‘‘(ii) direct to Phase II, under sub-
section (cc); 
‘‘(iii) subsequent Phase II, under sub-
section (bb)(1); 
‘‘(iv) strategic breakthrough award 
under subsection (ff)(3); 
‘‘(v) Phase III prime contract award; 
or 
‘‘(vi) Phase III subcontract award.’’. 
(b) IMPROVING FPDS DATA TRACKING.— 
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(1) IN GENERAL.—The Administrator of Gen-
eral Services shall update the Federal Procurement 
Data System described in section 1122(a)(4) of title 
41, United States Code, or any successor system, 
to— 
(A) require reporting on whether an award 
under the SBIR or STTR program is classified 
or designated as— 
(i) Phase 1A, under subsection (pp) of 
section 9 of the Small Business Act (15 
U.S.C. 638), as amended by this Act; 
(ii) direct to Phase II, under sub-
section (cc) of such section; 
(iii) subsequent Phase II, under sub-
section (bb)(1) of such section; 
(iv) a strategic breakthrough award 
under subsection (ff)(3) of such section; 
(v) a Phase III prime contract award; 
or 
(vi) a Phase III subcontract award; 
(B) require reporting on whether a con-
tract is designated as a Phase III contract; and 
(C) allow a Government contracting offi-
cer, when recording a Phase II or Phase III 
contract following on from work done by a 
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