129 
(A) in paragraph (1)(B), by strik-
ing ‘‘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 sec-
ond 
phase’’ 
and 
inserting 
‘‘Phase II’’; 
(ii) in subparagraph (D)— 
(I) by striking ‘‘the first 
phase’’ and inserting ‘‘Phase 
I’’; and 
(II) by striking ‘‘the sec-
ond 
phase’’ 
and 
inserting 
‘‘Phase II’’; 
(iii) in subparagraph (F), by 
striking ‘‘the third phase’’ and in-
serting ‘‘Phase III’’; 
(iv) in subparagraph (G)— 
(I) by striking ‘‘the first 
phase’’ and inserting ‘‘Phase 
I’’; and 
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130 
(II) by striking ‘‘the sec-
ond 
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 sub-
section (e)(4)(A))’’ and insert-
ing ‘‘Phase I’’; 
(II) by striking ‘‘the sec-
ond phase (as described in 
subsection (e)(4)(B))’’ and in-
serting ‘‘Phase II’’; and 
(III) by striking ‘‘the third 
phase (as described in sub-
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131 
section (e)(4)(C))’’ and insert-
ing ‘‘Phase III’’; and 
(ii) in subparagraph (B), by 
striking ‘‘second phase’’ and in-
serting ‘‘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 inserting ‘‘Phase I’’; and 
(B) by striking ‘‘the second phase’’ 
and inserting ‘‘Phase II’’; 
(5) in subsection (o)(13)— 
(A) in subparagraph (B), by strik-
ing ‘‘second phase’’ and inserting 
‘‘Phase II’’; and 
(B) in subparagraph (C), by strik-
ing 
‘‘third 
phase’’ 
and 
inserting 
‘‘Phase III’’; 
(6) in subsection (p)— 
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132 
(A) in paragraph (2)(B)— 
(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 sec-
ond 
phase’’ 
and 
inserting 
‘‘Phase II’’; and 
(B) in paragraph (3)— 
(i) by striking ‘‘the first phase 
(as 
described 
in 
subsection 
(e)(6)(A))’’ and inserting ‘‘Phase I’’; 
(ii) by striking ‘‘the second 
phase (as described in subsection 
(e)(6)(B))’’ and inserting ‘‘Phase 
II’’; and 
(iii) by striking ‘‘the third 
phase (as described in subsection 
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133 
(e)(6)(C))’’ and inserting ‘‘Phase 
III’’; 
(7) in subsection (q)(3)(A)— 
(A) in the subparagraph heading, 
by striking ‘‘FIRST PHASE’’ and insert-
ing ‘‘PHASE I’’; and 
(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 sec-
ond 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 period’’; and 
(ii) in the second sentence— 
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135 
‘‘(i) not later than 90 days after 
the date on which the solicitation 
closes; or 
‘‘(ii) if the Administrator author-
izes an extension 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 fol-
lowing: 
‘‘(B) make a final decision on each 
proposal submitted under the STTR pro-
gram— 
‘‘(i) not later than 90 days after 
the date on which the solicitation 
closes; or 
‘‘(ii) if the Administrator author-
izes an extension 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 
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136 
amended by this Act, is further amended by 
adding at the end the following: 
‘‘(ii) NIH PEER REVIEW PROCESS.—Notwith-
standing subsections (g)(4)(B) and (o)(4)(B), 
the Director of the National Institutes of 
Health may make an award under the SBIR 
program or the STTR program of the National 
Institutes of Health only if the application for 
the award has undergone technical and sci-
entific peer review under section 492 of the 
Public Health Service Act (42 U.S.C. 289a). 
‘‘(jj) NSF PEER REVIEW PROCESS.—Notwith-
standing subsections (g)(4)(B) and (o)(4)(B), 
the Director of the National Science Founda-
tion may make an award under the SBIR pro-
gram 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 National Science Foundation 
Act of 1950 (42 U.S.C. 1861, et seq.) and other 
applicable Federal law.’’. 
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137 
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 PARTNER-
SHIP PILOT PROGRAM.— 
‘‘(1) IN GENERAL.—The Director of the 
National Institutes of Health may use 
$10,000,000 of the funds allocated under 
subsection (n)(1) for a Proof of Concept 
Partnership pilot program to accelerate 
the creation of small businesses and the 
commercialization of research innova-
tions from qualifying institutions. To im-
plement this program, the Director shall 
award, through a competitive, merit- 
based process, grants to qualifying insti-
tutions. These grants shall only be used 
to administer Proof of Concept Partner-
ship awards in conformity with this sub-
section. 
‘‘(2) DEFINITIONS.—In this subsection— 
‘‘(A) the term ‘Director’ means the 
Director of the National Institutes of 
Health; 
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138 
‘‘(B) the term ‘pilot program’ re-
fers to the Proof of Concept Partner-
ship pilot program; and 
‘‘(C) the terms ‘qualifying institu-
tion’ and ‘institution’ mean a univer-
sity or other research institution that 
participates in the National Institutes 
of Health’s STTR program. 
‘‘(3) 
PROOF
OF
CONCEPT
PARTNER-
SHIPS.— 
‘‘(A) IN GENERAL.—A Proof of Con-
cept Partnership shall be set up by a 
qualifying institution to award grants 
to 
individual 
researchers. 
These 
grants should provide researchers 
with the initial investment and the 
resources to support the proof of con-
cept 
work 
and 
commercialization 
mentoring needed to translate prom-
ising research projects and tech-
nologies into a viable company. This 
work may include technical valida-
tions, market research, clarifying in-
tellectual property rights position 
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139 
and strategy and investigating com-
mercial or business opportunities. 
‘‘(B) AWARD
GUIDELINES.—The ad-
ministrator of a Proof of Concept 
Partnership 
program 
shall 
award 
grants in accordance with the fol-
lowing guidelines: 
‘‘(i) The Proof of Concept 
Partnership shall use a market-fo-
cused project management over-
sight process, including— 
‘‘(I) a rigorous, diverse re-
view board comprised of local 
experts in translational and 
proof of concept research, in-
cluding 
industry, 
start-up, 
venture capital, technical, fi-
nancial, and business experts 
and 
university 
technology 
transfer officials; 
‘‘(II) technology validation 
milestones focused on market 
feasibility; 
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140 
‘‘(III) simple reporting ef-
fective at redirecting projects; 
and 
‘‘(IV) the willingness to re-
allocate funding from failing 
projects to those with more 
potential. 
‘‘(ii) Not more than $100,000 
shall be awarded towards an indi-
vidual proposal. 
‘‘(C) EDUCATIONAL RESOURCES AND 
GUIDANCE.—The administrator of a 
Proof of Concept Partnership pro-
gram 
shall 
make 
educational 
re-
sources and guidance available to re-
searchers 
attempting 
to 
commer-
cialize their innovations. 
‘‘(4) AWARDS.— 
‘‘(A) SIZE OF AWARD.—The Director 
may make awards to a qualifying in-
stitution for up to $1,000,000 per year 
for up to 3 years. 
‘‘(B) AWARD
CRITERIA.—In deter-
mining which qualifying institutions 
receive pilot program grants, the Di-
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141 
rector shall consider, in addition 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 
office 
and 
have a plan for engaging that of-
fice in the program implementa-
tion; 
‘‘(ii) 
have 
demonstrated 
a 
commitment to local and regional 
economic development; 
‘‘(iii) are located in diverse ge-
ographies 
and 
are 
of 
diverse 
sizes; 
‘‘(iv) 
can 
assemble 
project 
management boards comprised of 
industry, start-up, venture cap-
ital, technical, financial, and busi-
ness experts; 
‘‘(v) have an intellectual prop-
erty rights strategy or office; and 
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142 
‘‘(vi) demonstrate a plan for 
sustainability beyond the dura-
tion of the funding award. 
‘‘(5) LIMITATIONS.—The funds for the 
pilot program shall not be used— 
‘‘(A) for basic research, but to 
evaluate the commercial potential of 
existing discoveries, including— 
‘‘(i) proof of concept research 
or prototype development; and 
‘‘(ii) activities that contribute 
to determining a project’s com-
mercialization path, to include 
technical validations, market re-
search, 
clarifying 
intellectual 
property rights, and investigating 
commercial and business oppor-
tunities; or 
‘‘(B) to fund the acquisition of re-
search equipment or supplies unre-
lated to commercialization activities. 
‘‘(6) EVALUATIVE
REPORT.—The Direc-
tor shall submit to the Committee on 
Science, Space, and Technology and the 
Committee on Small Business of the 
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143 
House of Representatives and the Com-
mittee on Small Business and Entrepre-
neurship of the Senate an evaluative re-
port regarding the activities of the pilot 
program. The report shall include— 
‘‘(A) a detailed description of the 
institutional and proposal selection 
process; 
‘‘(B) an accounting of the funds 
used in the pilot program; 
‘‘(C) a detailed description of the 
pilot program, including incentives 
and activities undertaken by review 
board experts; 
‘‘(D) a detailed compilation of re-
sults achieved by the pilot program, 
including the number of small busi-
ness concerns included and the num-
ber of business packages developed, 
and the number of projects that pro-
gressed 
into 
subsequent 
STTR 
phases; and 
‘‘(E) an analysis of the program’s 
effectiveness with supporting data. 
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144 
‘‘(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, includ-
ing— 
‘‘(A) the data’’; 
(B) by striking ‘‘(g)(10), (o)(9), and 
(o)(15), the number’’ and all that fol-
lows through ‘‘under each of the SBIR 
and STTR programs, and a descrip-
tion’’ and inserting the following: 
‘‘(g)(8) and (o)(9); 
‘‘(B) the number of proposals re-
ceived from, and the number and 
total amount of awards to, HUBZone 
small business concerns and firms 
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145 
with venture capital, hedge fund, or 
private equity firm investment (in-
cluding those majority-owned by mul-
tiple venture capital operating com-
panies, 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 increas-
ing outreach and awards to firms 
owned and controlled by women and 
social or economically disadvantaged 
individuals under each of the SBIR 
and STTR programs; 
‘‘(D) general information about 
the implementation of, and compli-
ance with the allocation of funds re-
quired under, subsection (dd) for 
firms owned in majority part by ven-
ture 
capital 
operating 
companies, 
hedge funds, or private equity firms 
and participating in the SBIR pro-
gram; 
‘‘(E) a detailed description of ap-
peals of Phase III awards and notices 
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146 
of noncompliance with the SBIR Pol-
icy Directive and the STTR Policy Di-
rective 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 following: 
‘‘(9) to coordinate the implementation 
of electronic databases at each of the 
Federal agencies participating in the 
SBIR program or the STTR program, in-
cluding the technical ability of the par-
ticipating 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 fur-
ther amended— 
(1) by striking paragraph (10); 
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147 
(2) by redesignating paragraphs (8) 
and (9) as paragraphs (9) and (10), respec-
tively; and 
(3) by inserting after paragraph (7) 
the following: 
‘‘(8) collect annually, and maintain in 
a common format in accordance with the 
simplified reporting requirements under 
subsection (v), such information from 
awardees as is necessary to assess the 
SBIR 
program, 
including 
information 
necessary to maintain the database de-
scribed in subsection (k), including— 
‘‘(A) whether an awardee— 
‘‘(i) has venture capital, hedge 
fund, or private equity firm in-
vestment or is majority-owned by 
multiple venture capital oper-
ating companies, hedge funds, or 
private equity firms, and, if so— 
‘‘(I) the amount of venture 
capital, hedge fund, or private 
equity firm investment that 
the awardee has received as 
of the date of the award; and 
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148 
‘‘(II) the amount of addi-
tional capital that the award-
ee 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 
‘‘(II) is a person that is not 
an individual and is not orga-
nized 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 inves-
tigator; 
‘‘(iv) is owned by a socially or 
economically disadvantaged indi-
vidual or has a socially or eco-
nomically 
disadvantaged 
indi-
vidual as a principal investigator; 
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149 
‘‘(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 Edu-
cation Act of 1965 (20 U.S.C. 1001); 
or 
‘‘(vi) is located in a State de-
scribed 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;’’. 
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 fur-
ther amended by striking paragraph (9) and 
inserting the following: 
‘‘(9) collect annually, and maintain in 
a common format in accordance with the 
simplified reporting requirements under 
subsection (v), such information from ap-
plicants and awardees as is necessary to 
assess the STTR program outputs and 
outcomes, 
including 
information 
nec-
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150 
essary to maintain the database de-
scribed in subsection (k), including— 
‘‘(A) whether an applicant or 
awardee— 
‘‘(i) has venture capital, hedge 
fund, or private equity firm in-
vestment or is majority-owned by 
multiple venture capital oper-
ating companies, hedge funds, or 
private equity firms, and, if so— 
‘‘(I) the amount of venture 
capital, hedge fund, or private 
equity firm investment that 
the applicant or awardee has 
received as of the date of the 
application or award, as ap-
plicable; and 
‘‘(II) the amount of addi-
tional capital that the appli-
cant or 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 
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151 
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 orga-
nized 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 inves-
tigator; 
‘‘(iv) is owned by a socially or 
economically disadvantaged indi-
vidual or has a socially or eco-
nomically 
disadvantaged 
indi-
vidual 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 Edu-
cation Act of 1965 (20 U.S.C. 1001); 
or 
‘‘(vi) is located in a State in 
which the total value of contracts 
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awarded to small business con-
cerns under all STTR programs is 
less than the total value of con-
tracts awarded to small business 
concerns in a majority of other 
States, as determined by the Ad-
ministrator 
in 
biennial 
fiscal 
years, beginning with fiscal year 
2008, based on the most recent 
statistics compiled by the Admin-
istrator; 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 
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153 
(3) by adding at the end the fol-
lowing: 
‘‘(F) for each small business con-
cern 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 in-
vestment and, if so, whether the 
small business concern is reg-
istered as majority-owned by mul-
tiple venture capital operating 
companies, hedge funds, or pri-
vate equity firms as required 
under subsection (dd)(3); 
‘‘(ii) is owned by a woman or 
has a woman as a principal inves-
tigator; 
‘‘(iii) is owned by a socially or 
economically disadvantaged indi-
vidual or has a socially or eco-
nomically 
disadvantaged 
indi-
vidual as a principal investigator; 
or 
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‘‘(iv) is owned by a faculty 
member or a student of an insti-
tution of higher education, 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 sub-
paragraph (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 Creating Jobs Through Small 
Business Innovation Act of 2011’’; 
(B) by striking subparagraph (C); 
(C) 
by 
redesignating 
subpara-
graphs (A) and (B) as subparagraphs 
(B) and (C), respectively; 
(D) by inserting before subpara-
graph (B), as so redesignated, the fol-
lowing: 
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‘‘(A) contains, for each small busi-
ness concern that applies for, submits 
a proposal for, or receives an award 
under Phase I or Phase II of the SBIR 
program or the STTR program— 
‘‘(i) the name, size, and loca-
tion, and an identifying number 
assigned by the Administration 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 individuals that will carry 
out the project, the position each 
key individual holds in the small 
business concern, and contact in-
formation for each key individual; 
‘‘(vi) the percentage of effort 
each 
individual 
described 
in 
clause (iv) will contribute to the 
project; 
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‘‘(vii) whether the small busi-
ness concern is majority-owned 
by multiple venture capital oper-
ating companies, hedge funds, or 
private equity firms; and 
‘‘(viii) the Federal agency to 
which the application is made, 
and contact information for the 
person or office within the Fed-
eral agency that is responsible for 
reviewing applications and mak-
ing awards under the SBIR pro-
gram or the STTR program;’’; 
(E) 
by 
redesignating 
subpara-
graphs (D) and (E) as subparagraphs 
(E) and (F), respectively; 
(F) by inserting after subpara-
graph (C), as so redesignated, the fol-
lowing: 
‘‘(D) includes, for each awardee— 
‘‘(i) the name, size, location, 
and any identifying number as-
signed to the awardee by the Ad-
ministrator; 
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‘‘(ii) whether the awardee has 
venture capital, hedge fund, or 
private equity firm investment, 
and, if so— 
‘‘(I) the amount of venture 
capital, hedge fund, or private 
equity firm investment as of 
the date of the award; 
‘‘(II) 
the 
percentage 
of 
ownership 
of 
the 
awardee 
held by a venture capital op-
erating company, hedge fund, 
or private equity firm, includ-
ing whether the awardee is 
majority-owned by multiple 
venture 
capital 
operating 
companies, hedge funds, or 
private equity firms; and 
‘‘(III) the amount of addi-
tional capital that the award-
ee has invested in the SBIR 
technology, 
which 
informa-
tion shall be collected on an 
annual basis; 
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‘‘(iii) the names and locations 
of any affiliates of the awardee; 
‘‘(iv) the number of employees 
of the awardee; 
‘‘(v) the number of employees 
of the affiliates of the awardee; 
and 
‘‘(vi) the names of, and the 
percentage of ownership of the 
awardee held by— 
‘‘(I) any individual who is 
not a citizen of the United 
States or a lawful permanent 
resident of the United States; 
or 
‘‘(II) any person that is not 
an individual and is not orga-
nized under the laws of a 
State or the United States;’’; 
(G) in subparagraph (E), as so re-
designated, by striking ‘‘and’’ at the 
end; 
(H) in subparagraph (F), as so re-
designated, by striking the period at 
the end and inserting ‘‘; and’’; and 
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(I) by adding at the end the fol-
lowing: 
‘‘(G) includes a timely and accu-
rate list of any individual or small 
business concern that has partici-
pated in the SBIR program or STTR 
program that has been— 
‘‘(i) convicted of a fraud-re-
lated crime involving funding re-
ceived under the SBIR program 
or STTR program; or 
‘‘(ii) found civilly liable for a 
fraud-related violation involving 
funding received under the SBIR 
program or STTR program.’’; and 
(2) in paragraph (3), by adding at the 
end the following: 
‘‘(C) GOVERNMENT
DATABASE.—Not 
later than 60 days after the date es-
tablished by a Federal agency for 
submitting applications or proposals 
for a Phase I or Phase II award under 
the SBIR program or STTR program, 
the head of the Federal agency shall 
submit to the Administrator the data 
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required under paragraph (2) with re-
spect 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 
requirements 
under 
sub-
sections (f)(1) and (n)(1) of section 9 
of the Small Business Act (15 U.S.C. 
638), as amended by this Act; 
(B) assess the extent of compli-
ance with the requirements of section 
9(i)(2) of the Small Business Act (15 
U.S.C. 638(i)(2)) by Federal agencies 
participating in the SBIR program or 
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the STTR program and the Adminis-
tration; 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 specific 
purposes, including the portion, if 
any, of such budget the Federal agen-
cy spends for salaries and expenses, 
travel to visit applicants, outreach 
events, marketing, and technical as-
sistance; and 
(2) submit a report to the Committee 
on Small Business and Entrepreneurship 
of the Senate and the Committee on 
Small Business and the Committee on 
Science, Space, and Technology of the 
House of Representatives regarding the 
audit conducted under paragraph (1), in-
cluding the assessments required under 
subparagraph (B), and the determination 
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made under subparagraph (C) of para-
graph (1). 
(b) DEFINITION OF APPLICABLE PERIOD.—In 
this section, the term ‘‘applicable period’’ 
means— 
(1) for the first report submitted 
under this section, the period beginning 
on October 1, 2005, and ending on Sep-
tember 30 of the last full fiscal year be-
fore the date of enactment of this Act for 
which information is available; and 
(2) for the second and each subse-
quent report submitted under this sec-
tion, the period— 
(A) beginning on October 1 of the 
first fiscal year after the end of the 
most recent full fiscal year relating to 
which a report under this section was 
submitted; and 
(B) ending on September 30 of the 
last full fiscal year before the date of 
the report. 
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SEC. 307. CONTINUED EVALUATION BY THE NATIONAL 
ACADEMY OF SCIENCES. 
Section 108 of the Small Business Reau-
thorization Act of 2000 (15 U.S.C. 638 note) is 
amended by adding at the end the following: 
‘‘(e) EXTENSIONS AND ENHANCEMENTS OF AU-
THORITY.— 
‘‘(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 Ad-
ministration, 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 Cre-
ating Jobs Through Small Business Inno-
vation Act of 2011, and every 4 years 
thereafter— 
‘‘(A) continue the most recent 
study under this section relating to 
the 
issues 
described 
in 
subpara-
graphs (A), (B), (C), and (E) of sub-
section (a)(1); 
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‘‘(B) 
conduct 
a 
comprehensive 
study of how the STTR program has 
stimulated technological innovation 
and technology transfer, including— 
‘‘(i) a review of the collabora-
tions created between small busi-
nesses and research institutions, 
including an evaluation of the ef-
fectiveness of the program in 
stimulating 
new 
collaborations 
and any obstacles that may pre-
vent or inhibit the creation of 
such collaborations; 
‘‘(ii) an evaluation of the effec-
tiveness of the program at trans-
ferring technology and capabili-
ties developed through Federal 
funding; 
‘‘(iii) an evaluation of the pro-
gram’s success at commercializing 
technologies compared with other 
Federal technology transfer pro-
grams and the SBIR program; 
‘‘(iv) to the extent practicable, 
an evaluation of the economic 
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benefits achieved by the STTR 
program, including the economic 
rate of return; 
‘‘(v) an analysis of how Fed-
eral agencies are using small 
businesses that have completed 
Phase II under the STTR program 
to fulfill their procurement needs; 
and 
‘‘(vi) an analysis of whether 
the existing STTR allocation has 
impacted the effectiveness of the 
program in achieving its goals; 
‘‘(C) make recommendations with 
respect to the issues described in sub-
paragraph (A), (D), and (E) of sub-
section (a)(2) and subparagraph (B) of 
this paragraph; and 
‘‘(D) estimate, to the extent prac-
ticable, 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 Na-
tional Research Council to ensure that 
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there is participation by and consultation 
with the small business community, the 
Administration, and other interested par-
ties as described in subsection (b). 
‘‘(3) REPORTING.—An agreement under 
paragraph (1) shall require that— 
‘‘(A) not later than 4 years after 
the date of enactment of the Creating 
Jobs Through Small Business Innova-
tion Act of 2011, and every 4 years 
thereafter, 
the 
National 
Research 
Council shall submit to the head of 
the agency entering into the agree-
ment, the Committee on Small Busi-
ness 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 re-
garding the study conducted under 
paragraph (1) and containing the rec-
ommendations 
described 
in 
para-
graph (1); and 
‘‘(B) not later than 2 years after 
the date of enactment of the Creating 
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Jobs Through Small Business Innova-
tion Act of 2011, the National Re-
search 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 of 
preliminary 
findings 
and 
rec-
ommendations regarding the study 
conducted under paragraph (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 Ad-
ministration under subsection (b)(7) shall in-
clude, for each Phase III award made by the 
Federal agency— 
‘‘(1) the name of the agency or compo-
nent of the agency or the non-Federal 
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source of capital making the Phase III 
award; 
‘‘(2) the name of the small business 
concern 
or 
individual 
receiving 
the 
Phase III award; and 
‘‘(3) the dollar amount of the Phase 
III award.’’. 
SEC. 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 IN-
FORMATION TO ORGANIZATIONS.— 
‘‘(1) ENABLING CONCERN TO GIVE CON-
SENT.—Each Federal agency required by 
this section to conduct an SBIR program 
or an STTR program shall enable a small 
business concern that is an SBIR appli-
cant or an STTR applicant to indicate to 
the Federal agency whether the Federal 
agency has the consent of the concern 
to— 
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‘‘(A) identify the concern to ap-
propriate local and State-level eco-
nomic development organizations as 
an SBIR applicant or an STTR appli-
cant; and 
‘‘(B) release the contact informa-
tion of the concern to such organiza-
tions. 
‘‘(2) RULES.—The Administrator shall 
establish rules to implement this sub-
section. The rules shall include a require-
ment that a Federal agency include in 
the SBIR and STTR application a provi-
sion through which the applicant can in-
dicate consent for purposes of paragraph 
(1).’’. 
SEC. 310. PILOT TO ALLOW FUNDING FOR ADMINISTRA-
TIVE, OVERSIGHT, AND CONTRACT PROC-
ESSING COSTS. 
(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: 
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‘‘(nn) 
ASSISTANCE
FOR
ADMINISTRATIVE, 
OVERSIGHT, 
AND
CONTRACT
PROCESSING 
COSTS.— 
‘‘(1) IN
GENERAL.—Subject to para-
graph (2), for the 3 full fiscal years begin-
ning after the date of enactment of this 
subsection, the Administrator shall allow 
each Federal agency required to conduct 
an SBIR program to use not more than 3 
percent of the funds allocated to the 
SBIR program of the Federal agency 
for— 
‘‘(A) the administration of the 
SBIR program or the STTR program 
of the Federal agency; 
‘‘(B) the provision of outreach and 
technical assistance relating to the 
SBIR program or STTR program of 
the Federal agency, including tech-
nical assistance site visits and per-
sonnel interviews; 
‘‘(C) the implementation of com-
mercialization and outreach initia-
tives that were not in effect on the 
date of enactment of this subsection; 
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‘‘(D) carrying out the program 
under subsection (y); 
‘‘(E) activities relating to over-
sight and congressional reporting, in-
cluding waste, fraud, and abuse pre-
vention activities; 
‘‘(F) targeted reviews of recipients 
of awards under the SBIR program or 
STTR program of the Federal agency 
that the head of the Federal agency 
determines are at high risk for fraud, 
waste, or abuse, to ensure compliance 
with requirements of the SBIR pro-
gram or STTR program, respectively; 
‘‘(G) the implementation of over-
sight 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 re-
lating to the SBIR program or STTR 
program of the Federal agency; and 
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‘‘(K) funding for additional per-
sonnel and assistance with applica-
tion reviews. 
‘‘(2) PERFORMANCE
CRITERIA.—A Fed-
eral agency may not use funds as author-
ized under paragraph (1) until after the 
effective date of performance criteria, 
which the Administrator shall establish, 
to measure any benefits of using funds as 
authorized under paragraph (1) and to 
assess 
continuation 
of 
the 
authority 
under paragraph (1). 
‘‘(3) RULES.—Not later than 180 days 
after the date of enactment of this sub-
section, the Administrator shall issue 
rules to carry out this subsection. 
‘‘(4) 
COORDINATION
WITH
IG.—Each 
Federal agency shall coordinate the ac-
tivities funded under subparagraph (E), 
(F), or (G) of paragraph (1) with their re-
spective Inspectors General, when appro-
priate, and each Federal agency that allo-
cates more than $50,000,000 to the SBIR 
program of the Federal agency for a fis-
cal year may share such funding with its 
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Inspector General when the Inspector 
General performs such activities.’’. 
(b) TECHNICAL
AND CONFORMING AMEND-
MENTS.— 
(1) IN
GENERAL.—Section 9 of the 
Small Business Act (15 U.S.C. 638), as 
amended by this Act, is further amend-
ed— 
(A) in subsection (f)(2), by striking 
‘‘shall 
not’’ 
and 
all 
that 
follows 
through ‘‘make available for the pur-
pose’’ and inserting ‘‘shall not make 
available for the purpose’’; and 
(B) in subsection (y)— 
(i) by striking paragraph (4); 
(ii) 
by 
redesignating 
para-
graphs (5), (6), and (7) as para-
graphs (4), (5), and (6), respec-
tively; and 
(iii) in paragraph (6), as so re-
designated, by striking ‘‘described 
in paragraph (6)(C)’’ and inserting 
‘‘described in paragraph (5)(C)’’. 
(2) 
TRANSITIONAL
RULE.—Notwith-
standing the amendments made by para-
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graph (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 perform-
ance criteria established by the Adminis-
trator 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 pur-
pose’’ and inserting the following: 
‘‘shall not— 
‘‘(A) use any of its SBIR budget 
established pursuant to paragraph (1) 
for the purpose of funding adminis-
trative costs of the program, includ-
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175 
ing costs associated with salaries and 
expenses; or 
‘‘(B) make available for the pur-
pose’’; and 
(B) in subsection (y)— 
(i) 
by 
redesignating 
para-
graphs (4), (5), and (6) as para-
graphs (5), (6), and (7), respec-
tively; 
(ii) in paragraph (7), as so re-
designated, by striking ‘‘described 
in paragraph (5)(C)’’ and inserting 
‘‘described in paragraph (6)(C)’’; 
and 
(iii) by inserting after para-
graph (3) the following: 
‘‘(4) FUNDING.— 
‘‘(A) IN
GENERAL.—The Secretary 
of Defense and each Secretary of a 
military department may use not 
more than an amount equal to 1 per-
cent of the funds available to the De-
partment of Defense or the military 
department pursuant to the Small 
Business Innovation Research Pro-
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gram for payment of expenses in-
curred to administer the Commer-
cialization Pilot Program under this 
subsection. 
‘‘(B) LIMITATIONS.—The funds de-
scribed in subparagraph (A)— 
‘‘(i) shall not be subject to the 
limitations on the use of funds in 
subsection (f)(2); and 
‘‘(ii) shall not be used to make 
Phase III awards.’’. 
SEC. 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 en-
actment of this Act, and every 2 years there-
after, the Comptroller General of the United 
States shall— 
(1) conduct a study of the impact of 
requirements relating to venture capital 
operating company, hedge fund, and pri-
vate equity firm involvement under sec-
tion 9 of the Small Business Act; and 
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(2) submit to Congress a report re-
garding the study conducted under para-
graph (1). 
SEC. 312. REDUCING VULNERABILITY OF SBIR AND STTR 
PROGRAMS TO FRAUD, WASTE, AND ABUSE. 
(a) FRAUD, WASTE, AND
ABUSE
PREVEN-
TION.— 
(1) AMENDMENTS REQUIRED FOR FRAUD, 
WASTE, AND ABUSE PREVENTION.—Not later 
than 90 days after the date of enactment 
of this Act, the Administrator shall 
amend the SBIR Policy Directive and the 
STTR Policy Directive to include meas-
ures to prevent fraud, waste, and abuse 
in the SBIR program and the STTR pro-
gram. 
(2) CONTENT
OF
AMENDMENTS.—The 
amendments required under paragraph 
(1) shall include— 
(A) definitions or descriptions of 
fraud, waste, and abuse; 
(B) guidelines for the monitoring 
and oversight of applicants to and re-
cipients of awards under the SBIR 
program or the STTR program; 
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178 
(C) a requirement that each Fed-
eral agency that participates in the 
SBIR program or STTR program in-
clude 
information 
concerning 
the 
method established by the Inspector 
General of the Federal agency to re-
port fraud, waste, and abuse (includ-
ing any telephone hotline or Web- 
based platform)— 
(i) on the website of the Fed-
eral agency; and 
(ii) in any solicitation or no-
tice of funding opportunity issued 
by the Federal agency for the 
SBIR program or the STTR pro-
gram; and 
(D) a requirement that each appli-
cant for and small business concern 
that receives funding under the SBIR 
program or the STTR program shall 
certify whether the applicant or small 
business concern is in compliance 
with the laws relating to the SBIR 
program and the STTR program and 
the conduct guidelines established 
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