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velopment 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 agen-
cy may not use investment of venture capital or in-
vestment 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.— 
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 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 Regula-
tions (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)).’’. 
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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 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 
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 capital operating com-
pany, hedge fund, or private equity firm (or with 
any other business that the venture capital operating 
company, hedge fund, or private equity firm has fi-
nanced) if— 
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‘‘(A) the venture capital operating com-
pany, hedge fund, or private equity firm does 
not own 50 percent or more of the business 
concern; 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 op-
erating 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 op-
erating 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 
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business with more than 500 employees (in this 
paragraph referred to as a ‘VCOC, hedge fund, or 
private equity firm under large business control’) 
has an ownership interest in a small business con-
cern that is owned in majority part by venture cap-
ital operating companies, hedge funds, or private eq-
uity 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 
equity 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 ex-
tent practicable, Federal agencies and Federal prime 
contractors shall issue Phase III awards relating to 
technology, including sole source awards, to the 
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SBIR and STTR award recipients that developed 
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: 
‘‘(ff) COLLABORATING WITH FEDERAL LABORA-
TORIES 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 
research and development center for portions of 
the activities to be performed under that award; 
or 
‘‘(B) has entered into a cooperative re-
search and development agreement (as defined 
in section 12(d) of the Stevenson-Wydler Tech-
nology Innovation Act of 1980 (15 U.S.C. 
3710a(d))) with a Federal laboratory. 
‘‘(2) PROHIBITION.—No Federal agency shall— 
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‘‘(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 por-
tion 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 feder-
ally funded laboratory or research and develop-
ment center, if the small business concern per-
forms 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 Adminis-
trator; 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 Di-
rective and the STTR Policy Directive issued under 
this section to ensure that small business concerns— 
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(3) by redesignating paragraph (16) as para-
graph (15); and 
(4) by adding at the end the following: 
‘‘(16) provide timely notice to the Adminis-
trator of any case or controversy before any Federal 
judicial or administrative 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 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.’’. 
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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 in-
serting ‘‘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 insert-
ing ‘‘$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 
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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 pur-
chase 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 re-
cipient requests to seek technical assistance 
from an individual or entity other than the ven-
dor selected under paragraph (2) by the Fed-
eral agency. 
‘‘(D) LIMITATION.—A Federal agency may 
not— 
‘‘(i) use the amounts authorized under 
subparagraph (A) or (B) unless the vendor 
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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 Busi-
ness 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 Busi-
ness Innovation Research Program’’; and 
(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 
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of SBIR or STTR technologies, including any 
such program in effect on the date of enact-
ment 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 con-
tract with a value of not less than $100,000,000, the 
Secretary 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 of contracts entered into by that prime 
contractor for Phase III SBIR or STTR 
projects. 
‘‘(6) GOAL FOR SBIR AND STTR TECHNOLOGY 
INSERTION.—The Secretary of Defense shall— 
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‘‘(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 
subparagraph (A) awarded by that Secretary, 
and information on the ongoing status of 
projects funded through the Commercialization 
Readiness Program and efforts to transition 
these technologies into programs of record or 
fielded systems.’’. 
(b) TECHNICAL AND CONFORMING AMENDMENT.— 
Section 9(i)(1) of the Small Business Act (15 U.S.C. 
638(i)(1)) is amended by inserting ‘‘(including awards 
under subsection (y))’’ after ‘‘the number of awards’’. 
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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 cov-
ered Federal agency may allocate not more than 10 
percent of the funds allocated to the SBIR program 
and the STTR program of the covered Federal agen-
cy— 
‘‘(A) for awards for technology develop-
ment, testing, evaluation, and commercialization 
assistance for SBIR and STTR Phase II tech-
nologies; or 
‘‘(B) to support the progress of research, 
research and development, and commercializa-
tion conducted under the SBIR or STTR pro-
grams 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 days before the first day of the fiscal year 
in which the pilot program is to be established, 
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that describes a compelling reason that addi-
tional investment in SBIR or STTR tech-
nologies is necessary, including unusually high 
regulatory, systems integration, or other costs 
relating to development or manufacturing of 
identifiable, highly promising small business 
technologies or a class of such technologies ex-
pected to substantially advance the mission of 
the agency. 
‘‘(B) 
DETERMINATION.—The 
Adminis-
trator 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 application 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-
mittee on Science, Space, and Technology 
of the House of Representatives. 
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‘‘(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) REPORT.—The head of each covered Fed-
eral agency shall include in the annual report of the 
covered Federal agency to the Administrator an 
analysis of the various activities considered for inclu-
sion in the pilot program of the covered Federal 
agency and a statement of the reasons why each ac-
tivity considered was included or not included, as the 
case may be. 
‘‘(6) TERMINATION.—The authority to establish 
a pilot program under this section expires at the end 
of fiscal year 2014. 
‘‘(7) 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 
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‘‘(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 pol-
icy recommendations on ways to improve program effec-
tiveness 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)). 
(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 busi-
ness concerns face after Phase II but before com-
mercialization. 
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(4) Developing and incorporating a standard 
evaluation framework to enable systematic assess-
ment of SBIR and STTR, including through im-
proved tracking of awards and outcomes and devel-
opment 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 Busi-
ness of the House of Representatives and to the Com-
mittee 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; 
(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. 
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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 pre-
ceding clause (i), by inserting ‘‘for work that derives 
from, extends, or completes efforts made under prior 
funding agreements under the SBIR program’’ after 
‘‘phase’’; 
(2) in paragraph (6)(C), in the matter pre-
ceding clause (i), by inserting ‘‘for work that derives 
from, extends, or completes 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 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) 
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‘‘(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 
(II) by striking ‘‘the second 
phase’’ and inserting ‘‘Phase II’’; 
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(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’’; 
(II) by striking ‘‘the second 
phase (as described in subsection 
(e)(4)(B))’’ and inserting ‘‘Phase II’’; 
and 
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(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 in-
serting ‘‘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)— 
(i) in clause (vi)— 
(I) 
by 
striking 
‘‘the 
second 
phase’’ and inserting ‘‘Phase II’’; and 
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(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 in-
serting ‘‘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 
(B) by striking ‘‘first phase’’ and inserting 
‘‘Phase I’’; 
(8) in subsection (r)— 
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(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’’. 
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— 
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(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 
submitted 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 
submitted under the STTR 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 
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days after the date on which the solicitation 
closes;’’. 
(b) NIH PEER REVIEW PROCESS.— 
(1) IN GENERAL.—Section 9 of the Small Busi-
ness Act (15 U.S.C. 638), as amended by this Act, 
is further amended by adding at the end the fol-
lowing: 
‘‘(ii) NIH PEER REVIEW PROCESS.—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 scientific peer re-
view under section 492 of the Public Health Service Act 
(42 U.S.C. 289a).’’. 
(2) TECHNICAL
AND
CONFORMING
AMEND-
MENTS.—Section 105 of the National Institutes of 
Health Reform Act of 2006 (42 U.S.C. 284n) is 
amended— 
(A) in subsection (a)(3)— 
(i) by striking ‘‘A grant’’ and insert-
ing ‘‘Except as provided in section 9(ii) of 
the Small Business Act (15 U.S.C. 
638(ii)), a grant’’; and 
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(ii) by striking ‘‘section 402(k)’’ and 
all that follows through ‘‘Act)’’ and insert-
ing ‘‘section 402(l) of such Act’’; and 
(B) in subsection (b)(5)— 
(i) by striking ‘‘A grant’’ and insert-
ing ‘‘Except as provided in section 9(ii) of 
the Small Business Act (15 U.S.C. 
638(ii)), a grant’’; and 
(ii) by striking ‘‘section 402(k)’’ and 
all that follows through ‘‘Act)’’ and insert-
ing ‘‘section 402(l) of such Act’’. 
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, includ-
ing the data’’ and inserting the following: 
‘‘STTR programs, including— 
‘‘(A) the data’’; 
(B) by striking ‘‘(g)(10), (o)(9), and 
(o)(15), the number’’ and all that follows 
through ‘‘under each of the SBIR and STTR 
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programs, and a description’’ and inserting the 
following: ‘‘(g)(8) and (o)(9); and 
‘‘(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 equity firm investment (including those 
majority-owned by multiple venture capital op-
erating companies, hedge funds, or private eq-
uity 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 alloca-
tion of funds required under, subsection (dd) 
for firms owned in majority part by venture 
capital operating companies, hedge funds, or 
private equity firms and participating in the 
SBIR program; 
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‘‘(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: 
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‘‘(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 
maintain the database described in subsection (k), 
including— 
‘‘(A) whether an awardee— 
‘‘(i) has venture capital, hedge fund, 
or private equity firm investment or is ma-
jority-owned by multiple venture capital 
operating companies, hedge funds, or pri-
vate equity 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 law-
ful permanent resident of the United 
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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;’’. 
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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 ma-
jority-owned by multiple venture capital 
operating companies, hedge funds, or pri-
vate equity 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; 
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‘‘(ii) has an investor that— 
‘‘(I) is an individual who is not a 
citizen of the United States or a law-
ful 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 pro-
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grams is less than the total value of con-
tracts awarded to small business concerns 
in a majority of other States, as deter-
mined by the Administrator in biennial fis-
cal years, beginning with fiscal year 2008, 
based on the most recent statistics com-
piled 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 
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so, whether the small business concern is 
registered as majority-owned by multiple 
venture 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 
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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 of key individuals that 
will carry out the project; 
‘‘(vi) the percentage of effort each in-
dividual described in clause (iv) will con-
tribute to the project; 
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‘‘(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 infor-
mation for the person or office within the 
Federal agency that is responsible for re-
viewing 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 award-
ee by the Administrator; 
‘‘(ii) whether the awardee has venture 
capital, hedge fund, or private equity firm 
investment, and, if so— 
‘‘(I) the amount of venture cap-
ital, hedge fund, or private equity firm 
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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 multiple venture capital op-
erating companies, 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 
affiliates of the awardee; and 
‘‘(vi) the names of, and the percent-
age of ownership of the awardee held by— 
‘‘(I) any individual who is not a 
citizen of the United States or a law-
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ful 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 committed fraud, waste, or 
abuse relating to 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 established by a 
Federal agency for submitting applications or 
proposals for a Phase I or Phase II award 
under the SBIR program or STTR program, 
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the head of the Federal agency shall submit to 
the Administrator the data required under 
paragraph (2) with respect to each small busi-
ness 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 
section 9 of the Small Business Act (15 U.S.C. 
638), as amended by this Act; 
(B) assess the extent of compliance 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 
the STTR program and the Administration; 
and 
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(C) determine the portion of the extra-
mural research or research and development 
budget of a Federal agency that each Federal 
agency spends for administrative purposes re-
lating to the SBIR program or STTR program, 
and for what specific purposes, including the 
portion, if any, of such budget the Federal 
agency spends for salaries and expenses, travel 
to visit applicants, outreach events, marketing, 
and technical assistance; and 
(2) submit a report to the Committee on Small 
Business and Entrepreneurship of the Senate and 
the Committee on Small Business and the Com-
mittee on Science, Space, and Technology of the 
House of Representatives regarding the audit con-
ducted under paragraph (1), including the assess-
ments required under subparagraph (B), and the de-
termination 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 September 30 of the last full fiscal 
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year before the date of enactment of this Act for 
which information 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 fis-
cal 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. 
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 Administra-
tion, shall cooperatively enter into an agreement 
with the National Academy of Sciences for the Na-
tional Research Council to, not later than 4 years 
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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— 
‘‘(i) the issues described in subpara-
graphs (A), (B), (C), and (E) of subsection 
(a)(1); and 
‘‘(ii) the effectiveness of the govern-
ment 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 pro-
gram to fraud, waste, and abuse, particu-
larly with respect to Federal agencies 
funding duplicative proposals and business 
concerns falsifying information in pro-
posals; 
‘‘(B) make recommendations with respect 
to the issues described in subparagraph (A)(ii) 
and subparagraphs (A), (D), and (E) of sub-
section (a)(2); and 
‘‘(C) estimate, to the extent practicable, 
the number of jobs created by the SBIR pro-
gram or STTR program of the agency. 
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‘‘(2) CONSULTATION.—An agreement under 
paragraph (1) shall require the National Research 
Council to ensure there is participation by and con-
sultation 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 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 enter-
ing into the agreement, the Committee on Small 
Business and Entrepreneurship of the Senate, and 
the Committee on Small Business and the Com-
mittee 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).’’. 
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: 
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‘‘(jj) PHASE III REPORTING.—The annual SBIR or 
STTR report to Congress by the Administration under 
subsection (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 mak-
ing 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: 
‘‘(kk) CONSENT TO RELEASE CONTACT INFORMA-
TION 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-
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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 or-
ganizations 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 estab-
lish rules to implement this subsection. The rules 
shall include a requirement that a Federal agency 
include in the SBIR and STTR application a provi-
sion through which the applicant can indicate con-
sent 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: 
‘‘(ll) ASSISTANCE
FOR
ADMINISTRATIVE, OVER-
SIGHT, AND CONTRACT PROCESSING COSTS.— 
‘‘(1) IN GENERAL.—Subject to paragraph (2), 
for the 3 full fiscal years beginning after the date 
of enactment of this subsection, the Administrator 
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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 
agency; 
‘‘(B) the provision of outreach and tech-
nical assistance relating to the SBIR program 
or STTR program of the Federal agency, in-
cluding technical assistance site visits and per-
sonnel interviews; 
‘‘(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 the waste, 
fraud, and abuse prevention activities described 
in section 312(a)(1)(B)(ii) of the Creating Jobs 
Through Small Business Innovation Act of 
2011; 
‘‘(F) targeted reviews of recipients of 
awards under the SBIR program or STTR pro-
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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. 
‘‘(2) PERFORMANCE
CRITERIA.—A Federal 
agency may not use funds as authorized under para-
graph (1) until after the effective date of perform-
ance criteria, which the Administrator shall estab-
lish, to measure any benefits of using funds as au-
thorized under paragraph (1) and to assess continu-
ation of the authority under paragraph (1). 
‘‘(3) RULES.—Not later than 180 days after 
the date of enactment of this subsection, the Admin-
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istrator shall issue rules to carry out this sub-
section.’’. 
(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-
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 performance criteria established by the Ad-
ministrator under subsection (ll)(2) of section 9 of 
the Small Business Act, as added by subsection (a). 
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(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 para-
graph (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— 
‘‘(A) use any of its SBIR budget estab-
lished pursuant to paragraph (1) for the pur-
pose of funding administrative costs of the pro-
gram, including costs associated with salaries 
and expenses; 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 De-
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partment of Defense or the military department 
pursuant to the Small Business Innovation Re-
search Program for payment of expenses in-
curred to administer the Commercialization 
Pilot Program under this subsection. 
‘‘(B) LIMITATIONS.—The funds described 
in subparagraph (A)— 
‘‘(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 
General 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). 
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SEC. 312. REDUCING VULNERABILITY OF SBIR AND STTR 
PROGRAMS TO FRAUD, WASTE, AND ABUSE. 
(a) FRAUD, WASTE, AND ABUSE PREVENTION.— 
(1) GUIDELINES
FOR
FRAUD, WASTE, AND 
ABUSE PREVENTION.— 
(A) AMENDMENTS REQUIRED.—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 measures to prevent fraud, 
waste, and abuse in the SBIR program and the 
STTR program. 
(B) CONTENT
OF
AMENDMENTS.—The 
amendments required under subparagraph (A) 
shall include— 
(i) definitions or descriptions of fraud, 
waste, and abuse; 
(ii) a requirement that the Inspectors 
General of each Federal agency that par-
ticipates in the SBIR program or the 
STTR program cooperate to— 
(I) establish fraud detection indi-
cators; 
(II) review regulations and oper-
ating procedures of the Federal agen-
cies; 
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(III) 
coordinate 
information 
sharing between the Federal agencies; 
and 
(IV) improve the education and 
training of, and outreach to— 
(aa) administrators of the 
SBIR program and the STTR 
program of each Federal agency; 
(bb) applicants to the SBIR 
program or the STTR program; 
and 
(cc) recipients of awards 
under the SBIR program or the 
STTR program; 
(iii) guidelines for the monitoring and 
oversight of applicants to and recipients of 
awards under the SBIR program or the 
STTR program; and 
(iv) a requirement that each Federal 
agency that participates in the SBIR pro-
gram or STTR program include the tele-
phone number of the hotline established 
under paragraph (2)— 
(I) on the Web site of the Fed-
eral agency; and 
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(II) in any solicitation or notice 
of funding opportunity issued by the 
Federal agency for the SBIR program 
or the STTR program. 
(2) FRAUD, WASTE, AND ABUSE PREVENTION 
HOTLINE.— 
(A) HOTLINE ESTABLISHED.—The Admin-
istrator shall establish a telephone hotline that 
allows individuals to report fraud, waste, and 
abuse in the SBIR program or STTR program. 
(B) 
PUBLICATION.—The 
Administrator 
shall include the telephone number for the hot-
line established under subparagraph (A) on the 
Web site of the Administration. 
(b) STUDY AND REPORT.—Not later than 1 year 
after the date of enactment of this Act, and every 3 years 
thereafter, 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 
Directive made pursuant to subsection (a); 
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(B) 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; 
(C) the effectiveness of the risk manage-
ment strategies of each Federal agency that 
participates in the SBIR program or STTR 
program in identifying areas of the SBIR pro-
gram 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 program in reducing fraud, waste, and 
abuse in the SBIR program or the STTR pro-
gram of the Federal agency; and 
(F) the extent to which the Inspector Gen-
eral of each Federal agency that participates in 
the SBIR program or STTR program effec-
tively conducts investigations of individuals al-
leged to have submitted false claims or violated 
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Federal law relating to fraud, conflicts of inter-
est, bribery, gratuity, or other misconduct; 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-
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-
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riod of public comment, the Administrator shall 
issue regulations or guidelines, taking into consider-
ation 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, 
contracting, 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 require-
ments) to reduce the paperwork and regulatory com-
pliance burden on small business concerns applying 
to and participating in the SBIR program or STTR 
program.’’. 
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 
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this Act, the Administrator shall publish the amended 
SBIR Policy Directive and the amended STTR Policy Di-
rective 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: 
‘‘(mm) ANNUAL REPORT ON SBIR AND STTR PRO-
GRAM 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 pro-
gram and the STTR program of the Federal agency 
that— 
‘‘(A) are science-based and statistically 
driven; 
‘‘(B) reflect the mission of the Federal 
agency; and 
‘‘(C) include factors relating to the eco-
nomic impact of the programs. 
‘‘(2) EVALUATION.—The head of each Federal 
agency described in paragraph (1) shall conduct an 
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annual evaluation using the metrics developed under 
paragraph (1) of— 
‘‘(A) the SBIR program and the STTR 
program of the Federal agency; and 
‘‘(B) the benefits to the people of the 
United States of the SBIR program and the 
STTR program of the Federal agency. 
‘‘(3) REPORT.— 
‘‘(A) IN
GENERAL.—The head of each 
Federal agency described in paragraph (1) shall 
submit to the appropriate committees of Con-
gress and the Administrator an annual report 
describing in detail the results of an evaluation 
conducted 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 
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‘‘(ii) the Committee on Small Busi-
ness and the Committee on Science, Space, 
and Technology of the House of Represent-
atives.’’. 
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: 
‘‘(nn) 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 com-
petitive 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 Adminis-
trator shall promulgate a rule not later than 180 days 
after the date of enactment of this Act that determines 
what restrictions, conditions, or covenants contained in a 
note, bond, debenture, other evidence of indebtedness, or 
preferred stock constitute affiliation for purposes of sec-
tion 121.103(a) of title 13, Code of Federal Regulations, 
as in effect on January 1, 2011. 
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(b) FAILURE
TO PROMULGATE.—If the Adminis-
trator fails to promulgate a rule in the time period re-
quired under subsection (a), the holder of a note, bond, 
debenture, other evidence of indebtedness, or preferred 
stock shall be considered to be affiliated with the debtor 
or issuer of the preferred stock until such time as the Ad-
ministrator promulgates the rule required under sub-
section (a). 
Æ 
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