II
Calendar No. 541
106TH CONGRESS
2D SESSION
H. R. 2392
[Report No. 106–289]
IN THE SENATE OF THE UNITED STATES
SEPTEMBER 28, 1999
Received; read twice and referred to the Committee on Small Business
MAY 10, 2000
Reported by Mr. BOND, with an amendment
[Strike out all after the enacting clause and insert the part printed in italic]
AN ACT
To amend the Small Business Act to extend the authoriza-
tion for the Small Business Innovation Research Pro-
gram, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Small Business Inno-
vation Research Program Reauthorization Act of 1999’’.
SEC. 2. FINDINGS.
Congress finds that—
(1) the small business innovation research pro-
gram established under the Small Business Innova-
tion Development Act of 1982 and reauthorized by
the Small Business Research and Development En-
hancement Act of 1992 (in this section referred to
as the ‘‘SBIR program’’) is highly successful in in-
volving small businesses in federally funded research
and development;
(2) the SBIR program made the cost-effective
and unique research and development capabilities
possessed by the small businesses of this Nation
available to Federal agencies and departments;
(3) the innovative goods and services developed
by small businesses that participated in the SBIR
program have produced innovations of critical impor-
tance in a wide variety of high-technology fields, in-
cluding biology, medicine, education, and defense;
(4) the SBIR program is a catalyst in the pro-
motion of research and development, the commer-
cialization of innovative technology, the development
of new products and services, and the continued ex-
cellence of this Nation’s high-technology industries;
and
(5) the continuation of the SBIR program will
provide expanded opportunities for one of the Na-
tion’s vital resources, its small businesses, will foster
invention, research, and technology, will create jobs,
and will increase this Nation’s competitiveness in
international markets.
SEC. 3. EXTENSION OF SBIR PROGRAM.
Section 9(m) of the Small Business Act (15 U.S.C.
638(m)) is amended to read as follows:
‘‘(m) TERMINATION.—The authorization to carry out
the Small Business Innovation Research Program estab-
lished under this section shall terminate on September 30,
2007.’’.
SEC. 4. ANNUAL REPORT.
Section 9(b)(7) of the Small Business Act (15 U.S.C.
638(b)(7)) is amended by striking ‘‘and the Committee on
Small Business of the House of Representatives’’ and in-
serting ‘‘, and to the Committee on Science and the Com-
mittee on Small Business of the House of Representa-
tives,’’.
SEC. 5. THIRD PHASE ASSISTANCE.
Section 9(e)(4)(C)(i) of the Small Business Act (15
U.S.C. 638(e)(4)(C)(i)) is amended by striking ‘‘; and’’
and inserting ‘‘; or’’.
SEC. 6. RIGHTS TO DATA.
Section 9(j) of the Small Business Act (15 U.S.C.
638(j)) is amended by adding at the end the following new
paragraph:
‘‘(3) ADDITIONAL
MODIFICATIONS.—Not later
than 90 days after the enactment of the Small Busi-
ness Innovation Research Program Reauthorization
Act of 1999, the Administrator shall modify the pol-
icy directives issued pursuant to this subsection to
clarify that the rights provided for under subpara-
graph (2)(A) of this subsection apply to all Federal
funding awards falling under the definitions of ‘first
phase’, ‘second phase’, or ‘third phase’, as specified
in subsection (e)(4).’’.
SEC. 7. REPORT ON PROGRAMS FOR ANNUAL PERFORM-
ANCE PLAN.
Section 9(g) of the Small Business Act (15 U.S.C.
638(g)) is amended—
(1) in paragraph (7), by striking ‘‘and’’ at the
end;
(2) in paragraph (8), by striking the period at
the end and inserting ‘‘; and’’; and
(3) by adding at the end the following new
paragraph:
‘‘(9) include, as part of its annual performance
plan as required by subsections (a) and (b) of sec-
tion 1115 of title 31, United States Code, a section
on its SBIR program, and shall submit such section
to the Committee on Small Business of the Senate,
and the Committee on Science and the Committee
on Small Business of the House of Representa-
tives.’’.
SEC. 8. OUTPUT AND OUTCOME DATA.
(a) COLLECTION.—Section 9(g) of the Small Busi-
ness Act (15 U.S.C. 638(g)) is amended—
(1) by striking ‘‘and’’ at the end of paragraph
(7);
(2) by striking the period at the end of para-
graph (8) and inserting ‘‘; and’’; and
(3) by adding at the end the following new
paragraph:
‘‘(9) collect and include in the report required
by paragraph (8) such data from awardees as is nec-
essary to assess SBIR program outputs and out-
comes, including data necessary to maintain the
data base described in subsection (k).’’.
(b) REPORT TO CONGRESS.—Section 9(b)(7) of the
Small Business Act (15 U.S.C. 638(b)(7)) is further
amended by inserting ‘‘, including the data on output and
outcomes collected pursuant to subsections (g)(8) and
(o)(9) and a description of the extent to which Federal
agencies are providing in a timely manner information
needed to maintain the data base described in subsection
(k)’’ before the period at the end.
(c) DATA BASE.—Section 9 of the Small Business
Act (15 U.S.C. 638) is amended by adding after sub-
section (j) the following new subsection:
‘‘(k) DATA BASE.—
‘‘(1) PUBLIC DATA BASE.—Not later than 180
days after the date of the enactment of the Small
Business Innovation Research Program Reauthoriza-
tion Act of 1999, the Administrator shall develop,
maintain, and make available to the public a search-
able, up-to-date, electronic data base that includes—
‘‘(A) the name, size, and location, and an
identifying number assigned by the Administra-
tion, of each small business concern that has re-
ceived a first phase or second phase SBIR
award from a Federal agency; and
‘‘(B) a description of each first phase or
second phase SBIR award received by that
small business concern, including—
‘‘(i) an abstract of the project funded
by the award;
‘‘(ii) the Federal agency making the
award; and
‘‘(iii) the date and amount of the
award.
‘‘(2)
GOVERNMENT
DATA
BASE.—Not
later
than 180 days after the date of the enactment of the
Small Business Innovation Research Program Reau-
thorization Act of 1999, the Administrator, in con-
sultation with Federal agencies required to have an
SBIR program pursuant to subsection (f)(1), shall
develop and maintain a data base to be used for
SBIR program evaluation that—
‘‘(A) contains information, for each second
phase award made by a Federal agency, on—
‘‘(i) revenue from the sale of new
products or services (other than research
or research and development services) re-
sulting
from
the
technology
developed
under the award; and
‘‘(ii) additional investment from any
source, other than the SBIR or STTR pro-
gram, in activities that further the develop-
ment or commercialization of the tech-
nology developed under the award, with
commercialization
investment
identified
separately;
‘‘(B) includes any brief narrative informa-
tion that a small business concern receiving a
second phase award submits to further describe
the outputs and outcomes of its award;
‘‘(C) includes for each applicant for a first
phase or second phase award which does not re-
ceive an award—
‘‘(i) the name, size, and location, and
an identifying number assigned by the Ad-
ministration;
‘‘(ii) an abstract of the project; and
‘‘(iii) the Federal agency to which the
application was made; and
‘‘(D) is available for use only for program
evaluation purposes by the Federal Government
or by other authorized persons who are subject
to a use and nondisclosure agreement with the
Federal Government covering the use of the
data base.
‘‘(3) PROTECTION OF INFORMATION.—Informa-
tion provided under paragraph (2) shall be consid-
ered privileged and confidential and not subject to
disclosure pursuant to section 552 of title 5, United
States Code.’’.
SEC. 9. AWARD AMOUNT AND DURATION.
Section 9(j) of the Small Business Act (15 U.S.C.
638(j)) is further amended by adding at the end the fol-
lowing new paragraph:
‘‘(4) FURTHER MODIFICATION.—Not later than
30 days after the date of enactment of the Small
Business Innovation Research Program Reauthoriza-
tion Act of 1999, the Administrator shall modify the
policy directives issued pursuant to this subsection
to—
‘‘(A)
authorize
awards
exceeding
the
amounts established under paragraph (2)(D) or
for time periods greater than those established
pursuant to this subsection;
‘‘(B) require agencies to give preference
when providing second phase awards that ex-
ceed the amounts established under paragraph
(2)(D) to projects that have met the require-
ments of subsection (e)(4)(B)(ii) and (iii); and
‘‘(C) require that notice of and a justifica-
tion for any award described in subparagraph
(A) be included in the report required under
subsection (g)(8).’’.
SEC. 10. SECOND PHASE COMMERCIAL PLAN.
Section 9(j)(2) of the Small Business Act (15 U.S.C.
638(j)(2)) is further amended—
(1) by striking ‘‘and’’ at the end of subpara-
graph (H);
(2) by striking the period at the end of sub-
paragraph (I) and inserting ‘‘; and’’; and
(3) by adding at the end the following new sub-
paragraph:
‘‘(J) the requirement of a commercial plan
with
each
application
for
a
second
phase
award.’’.
SEC. 11. NATIONAL RESEARCH COUNCIL REPORT.
(a) STUDY AND RECOMMENDATIONS.—The heads of
each agency with a budget of more than $65,000,000 for
its SBIR program for fiscal year 1999 shall, not later than
6 months after the date of the enactment of this Act, coop-
eratively enter into an agreement with the National Re-
search Council for such Council, in consultation with the
Office of Advocacy of the Small Business Administration
and other interested parties, to—
(1) conduct a comprehensive study of how the
Small Business Innovation Research Program has
stimulated technological innovation and used small
businesses to meet Federal research and develop-
ment needs, including—
(A) a review of the importance that Fed-
eral research agencies are assigning to the
Small Business Innovation Research Program,
and of the quality of research being conducted
under such program;
(B) an evaluation of the economic rate of
return of the Small Business Innovation Re-
search Program over the life of the program;
(C) a comparison of the rate of techno-
logical innovation by small businesses with that
of large businesses and universities;
(D) a comparison of the allocation for fis-
cal year 1999 of Federal research and develop-
ment funds to small businesses with such allo-
cation for fiscal year 1983; and
(E) an analysis of whether Federal agen-
cies, in fulfilling their procurement needs, are
making sufficient effort to use small businesses
that have completed a second phase award; and
(2) make recommendations with respect to—
(A) measures of outcomes for strategic
plans submitted under section 306 of title 5,
United States Code, and performance plans
submitted
under
section
1115
of
title
31,
United States Code, of each Federal agency
participating in the Small Business Innovation
Research Program;
‘‘(A) an abstract of the project funded by
the award;
‘‘(B) the Federal agency making the award;
and
‘‘(C) the date and amount of the award;
‘‘(3) an identification of any business concern or
subsidiary established for the commercial application
of a product or service for which an SBIR award is
made; and
‘‘(4) information regarding mentors and Men-
toring Networks, as required by section 35(e).’’.
SEC. 8. FEDERAL AGENCY EXPENDITURES FOR THE SBIR
PROGRAM.
Section 9(i) of the Small Business Act (15 U.S.C.
638(i)) is amended—
(1) by striking ‘‘(i) Each Federal’’ and inserting
the following:
‘‘(i) ANNUAL REPORTING.—
‘‘(1) IN GENERAL.—Each Federal’’; and
(2) by adding at the end the following:
‘‘(2) CALCULATION OF EXTRAMURAL BUDGET.—
‘‘(A) METHODOLOGY.—Not later than 4
months after the date of enactment of each ap-
propriations Act for a Federal agency required
by this section to have an SBIR program, the