I 
118TH CONGRESS 
2D SESSION H. R. 10407 
To amend the Small Business Act to reauthorize and modify the Small 
Business Innovation Research and Small Business Technology Transfer 
Research programs, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
DECEMBER 12, 2024 
Ms. VELA´ZQUEZ introduced the following bill; which was referred to the Com-
mittee on Small Business, and in addition to the Committees on Science, 
Space, and Technology, and Armed Services, for a period to be subse-
quently determined by the Speaker, in each case for consideration of such 
provisions as fall within the jurisdiction of the committee concerned 
A BILL 
To amend the Small Business Act to reauthorize and modify 
the Small Business Innovation Research and Small Busi-
ness Technology Transfer Research programs, 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 ‘‘SBIR/STTR Reau-
thorization Act of 2024’’. 
SEC. 2. TABLE OF CONTENTS. 
The table of contents for this Act is as follows: 
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Sec. 1. Short title. 
Sec. 2. Table of contents. 
TITLE I—REAUTHORIZATION OF PROGRAMS 
Sec. 101. Sense of Congress. 
Sec. 102. Extension of SBIR and STTR authority. 
Sec. 103. Extension of FAST Program. 
TITLE II—DIVERSIFICATION INITIATIVES 
Sec. 201. SBIR and STTR fellowships. 
Sec. 202. Application assistance to broaden participation. 
Sec. 203. Technical and business assistance improvements. 
Sec. 204. Improvements to website relating to the SBIR program or STTR 
program. 
TITLE III—COMMERCIALIZATION IMPROVEMENTS 
Sec. 301. Phase III award education. 
Sec. 302. Report on DoD denials of Phase III. 
TITLE IV—PILOT PROGRAMS 
Sec. 401. Extend and modify assistance for administrative, oversight, and con-
tract processing costs. 
Sec. 402. Extend and expand the direct to Phase II authority. 
Sec. 403. Acceleration of DoD SBIR and STTR awards. 
Sec. 404. Extend commercialization readiness program for civilian agencies. 
Sec. 405. Extend and expand Phase 0 proof of concept partnership program. 
Sec. 406. Extend commercialization assistance programs. 
TITLE V—OVERSIGHT AND SIMPLIFICATION INITIATIVES 
Sec. 501. Annual reports to Congress. 
Sec. 502. Comptroller General reports on fraud controls. 
Sec. 503. Comptroller General report on diversification and commercialization. 
Sec. 504. Extend the report on award timeliness. 
Sec. 505. Pilot program to accelerate National Institutes of Health evaluation 
process. 
Sec. 506. Codifying safeguards for small business concerns majority-owned by 
venture capital operating companies, hedge funds, or private 
equity firms. 
TITLE VI—TECHNICAL CHANGES 
Sec. 601. Inclusion of SBICs in the SBIR and STTR programs. 
Sec. 602. Phase III and sole-source awards. 
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TITLE I—REAUTHORIZATION OF 
PROGRAMS 
SEC. 101. SENSE OF CONGRESS. 
Section 9(a) of the Small Business Act (15 U.S.C. 
638(a)) is amended— 
(1) by inserting ‘‘(1)’’ before ‘‘Research and de-
velopment’’; and 
(2) by adding at the end the following new 
paragraphs: 
‘‘(2) It is the sense of the Congress that— 
‘‘(A) the purpose of the SBIR and STTR pro-
grams is to strengthen the role of innovative small 
business concerns in Federally funded research and 
development, including— 
‘‘(i) stimulating technological innovation; 
‘‘(ii) using small business concerns to meet 
the needs of Federal research and development; 
‘‘(iii) fostering and encouraging participa-
tion of and by socially and economically dis-
advantaged small business concerns (as defined 
in section 8(a)(4)(A)) and small business con-
cerns owned and controlled by women in tech-
nological innovation; and 
‘‘(iv) increasing private sector commer-
cialization of innovations derived from Federal 
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research and development, thereby increasing 
competition, productivity, and economic growth; 
and 
‘‘(B) in addition to the purposes set forth in 
subparagraph (A), the purpose of the STTR pro-
gram is to reserve a portion of the extramural re-
search or research and development budgets of Fed-
eral agencies to provide awards to small business 
concerns for cooperative research and development 
with research institutions.’’. 
SEC. 102. EXTENSION OF SBIR AND STTR AUTHORITY. 
(a) SBIR.—Section 9 of the Small Business Act (15 
U.S.C. 638) is amended by striking subsection (m). 
(b) STTR.—Section 9(n)(1)(A) of the Small Busi-
ness Act (15 U.S.C. 638(n)(1)(A)) is amended by striking 
‘‘through fiscal year 2025’’. 
SEC. 103. EXTENSION OF FAST PROGRAM. 
Section 34(i) of the Small Business Act (15 U.S.C. 
657d(i)) is amended by striking ‘‘September 30, 2005’’ 
and inserting ‘‘September 30, 2030’’. 
TITLE II—DIVERSIFICATION 
INITIATIVES 
SEC. 201. SBIR AND STTR FELLOWSHIPS. 
Section 9 of the Small Business Act (15 U.S.C. 638) 
is amended— 
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(1) in subsection (f), by adding at the end the 
following new paragraph: 
‘‘(5) FELLOWSHIPS.— 
‘‘(A) IN GENERAL.—A Federal agency may 
provide grants or awards, either directly or in 
partnership with a third party, to small busi-
ness concerns that have received SBIR or 
STTR Phase II awards to provide fellowship 
and internship opportunities at the under-
graduate, 
baccalaureate, 
graduate, 
and 
postdoctoral levels in fields that are important 
to such Federal agency. 
‘‘(B) ENHANCED OUTREACH.—Each Fed-
eral agency that makes an award or enters into 
a partnership under subparagraph (A) shall 
provide for enhanced outreach to increase the 
participation of women, socially disadvantaged 
individuals (as described in section 8(a)(5)), 
and economically disadvantaged individuals (as 
described section 8(a)(6)(A)) in the fellowship 
and internship opportunities described under 
subparagraph (A). 
‘‘(C) 
SUPPORT
ORGANIZATION.—Each 
Federal agency that makes an award or enters 
into a partnership under subparagraph (A) may 
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partner with or provide grants or awards to a 
third-party organization to support and facili-
tate the enhanced outreach under subparagraph 
(B) provided that such third-party organization 
is a nonprofit organization with relevant experi-
ence and demonstrated expertise in delivery of 
services described in subparagraph (B). 
‘‘(D) FUNDING.—In carrying out this 
paragraph, a Federal agency may use only the 
following amounts: 
‘‘(i) With respect to a Federal agency 
that uses the authority under subsection 
(mm), the funds authorized under such 
subsection. 
‘‘(ii) With respect a Federal agency 
other than a Federal agency described in 
clause (i), not more than three percent of 
the funds required to be expended under 
paragraph (1).’’; and 
(2) in subsection (n), by adding at the end the 
following new paragraph: 
‘‘(4) FELLOWSHIPS.— 
‘‘(A) IN GENERAL.—A Federal agency may 
provide grants or awards, either directly or in 
partnership with a third party, to small busi-
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ness concerns that have received SBIR or 
STTR Phase II awards to provide fellowship 
and internship opportunities at the under-
graduate, 
baccalaureate, 
graduate, 
and 
postdoctoral levels in fields that are important 
to such Federal agency. 
‘‘(B) ENHANCED OUTREACH.—Each Fed-
eral agency that makes an award or enters into 
a partnership under subparagraph (A) shall 
provide for enhanced outreach to increase the 
participation of women, socially disadvantaged 
individuals (as described in section 8(a)(5)), 
and economically disadvantaged individuals (as 
described section 8(a)(6)(A)) in the fellowship 
and internship opportunities described under 
subparagraph (A). 
‘‘(C) 
SUPPORT
ORGANIZATION.—Each 
Federal agency that makes an award or enters 
into a partnership under subparagraph (A) may 
partner with or provide grants or awards to a 
third-party organization to support and facili-
tate the enhanced outreach under subparagraph 
(B) provided such third-party organization is a 
nonprofit organization with relevant experience 
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and demonstrated expertise in delivery of serv-
ices described in subparagraph (B). 
‘‘(D) FUNDING.—In carrying out this 
paragraph, a Federal agency may use only the 
following amounts: 
‘‘(i) With respect to a Federal agency 
that uses the authority under subsection 
(mm), the funds authorized under such 
subsection. 
‘‘(ii) With respect a Federal agency 
other than a Federal agency described in 
clause (i), not more than three percent of 
the funds required to be expended under 
paragraph (1).’’. 
SEC. 202. APPLICATION ASSISTANCE TO BROADEN PARTICI-
PATION. 
(a) IN GENERAL.—Section 9(mm)(1) of the Small 
Business Act (15 U.S.C. 638(mm)(1)) is amended— 
(1) in subparagraph (J), by striking ‘‘and’’ at 
the end; 
(2) in subparagraph (K), by striking the period 
at the end and inserting ‘‘; and’’; and 
(3) by adding at the end the following new sub-
paragraph: 
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‘‘(L) providing small business concerns 
with assistance applying to the SBIR program 
or STTR program of the Federal agency, in-
cluding providing such assistance to carry out 
the policy directive required under paragraphs 
(2)(F) or (5) of subsection (j) and subsection 
(p)(2)(H) to increase the participation of States 
with respect to which a low level of SBIR or 
STTR awards have historically been awarded.’’. 
(b) ENHANCED MINORITY INSTITUTION PARTICIPA-
TION.— 
(1) SBIR.—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: 
‘‘(5) INCREASED OUTREACH REQUIREMENTS.— 
Not later than 90 days after the date of the enact-
ment of this paragraph, the Administration shall 
modify the policy directives issued pursuant to this 
subsection to require enhanced outreach efforts to 
increase the participation of individuals conducting 
research at minority institutions (as defined in sec-
tion 365 of the Higher Education Act of 1965 (20 
U.S.C. 1067k)) and Hispanic-serving institutions (as 
defined in section 502(a) of such Act (20 U.S.C. 
1101a(a))) in SBIR programs.’’. 
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(2) STTR.—Section 9(p)(2) of the Small Busi-
ness Act (15 U.S.C. 638(p)(2)) is amended— 
(A) in subparagraph (F), by striking 
‘‘and’’ at the end; 
(B) in subparagraph (G)(iii), by striking 
the period at the end and inserting ‘‘; and’’; 
and 
(C) by adding at the end the following new 
subparagraph: 
‘‘(H) procedures for outreach efforts to in-
crease the participation of individuals con-
ducting research at minority institutions (as de-
fined in section 365 of the Higher Education 
Act of 1965 (20 U.S.C. 1067k)) and Hispanic- 
serving institutions (as defined in section 16 
502(a) of such Act (20 U.S.C. 1101a(a))) in 
STTR programs.’’. 
SEC. 203. TECHNICAL AND BUSINESS ASSISTANCE IM-
PROVEMENTS. 
Section 9(q) of the Small Business Act (15 U.S.C. 
638(q)) is amended by— 
(1) in paragraph (1), in the matter preceding 
subparagraph (A)— 
(A) by striking ‘‘may enter into an agree-
ment with 1 or more vendors selected under 
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paragraph (2)(A) to provide small business con-
cerns engaged in SBIR or STTR projects with’’ 
and inserting ‘‘shall authorize recipients of 
awards under the SBIR program or the STTR 
program to select, if desired, commercialization 
activities provided under subparagraph (A), 
(B), or (C) of paragraph (3) to provide such re-
cipients with’’; and 
(B) by inserting ‘‘cybersecurity assist-
ance,’’ after ‘‘market validation,’’; 
(2) in paragraph (3)— 
(A) by striking subparagraphs (A) and (B) 
and inserting the following: 
‘‘(A) PHASE
I.—A Federal agency de-
scribed in paragraph (1) shall authorize a re-
cipient of a Phase I SBIR or STTR award to 
use not more than $6,500 per project, in addi-
tion to the amount of the award of the recipient 
as determined appropriate by the head of the 
Federal agency, for the services described in 
paragraph (1)— 
‘‘(i) provided through a vendor se-
lected under paragraph (2)(A); 
‘‘(ii) provided, to the extent author-
ized by the Federal agency, through a ven-
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dor other than a vendor selected under 
paragraph (2)(A); or 
‘‘(iii) provided through any combina-
tion of clauses (i) and (ii). 
‘‘(B) PHASE
II.—A Federal agency de-
scribed in paragraph (1) shall authorize a re-
cipient of a Phase II SBIR or STTR award to 
use not more than $50,000 per project, in-
cluded as part of the award of the recipient or 
in addition to the amount of the award of the 
recipient as determined appropriate by the head 
of the Federal agency, for the services described 
in paragraph (1)— 
‘‘(i) provided through a vendor se-
lected under paragraph (2)(A); 
‘‘(ii) provided through a vendor other 
than a vendor selected under paragraph 
(2)(A); or 
‘‘(iii) provided through any combina-
tion of clauses (i) and (ii).’’; and 
(B) in subparagraph (E), by inserting 
‘‘Phase I or’’ before ‘‘Phase II’’; and 
(3) by adding at the end the following new 
paragraph: 
‘‘(5) I–CORPS PARTICIPATION.— 
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‘‘(A) IN GENERAL.—Each Federal agency 
that is required to conduct an SBIR or STTR 
program with an Innovation Corps program (es-
tablished under section 601 of the American In-
novation and Competitiveness Act (42 U.S.C. 
1862s–8); commonly known as ‘I–Corps’) 
shall— 
‘‘(i) provide an option for participa-
tion in an I–Corps teams course, I–Corps 
bootcamp, or another equivalent training 
program to recipients of an award under 
the SBIR or STTR program; and 
‘‘(ii) authorize the recipients described 
in clause (i) to use amounts authorized 
under this subsection to participate in the 
I–Corps teams course, I–Corps bootcamp, 
or another equivalent training program. 
‘‘(B) COST OF PARTICIPATION.—The cost 
of participation by a recipient described in sub-
paragraph (A)(i) in an I–Corps course, I–Corps 
bootcamp, or another equivalent training pro-
gram may be provided by— 
‘‘(i) an I–Corps team grant; 
‘‘(ii) funds awarded to the recipient 
under this subsection; 
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‘‘(iii) the participating teams or other 
sources as appropriate; or 
‘‘(iv) any combination of sources de-
scribed in clauses (i), (ii), and (iii).’’. 
SEC. 204. IMPROVEMENTS TO WEBSITE RELATING TO THE 
SBIR PROGRAM OR STTR PROGRAM. 
(a) SBIR PROGRAM.—Section 9(g)(8) of the Small 
Business Act (15 U.S.C. 638(g)(8)) is amended— 
(1) in subparagraph (B), by striking ‘‘and’’ at 
the end; 
(2) in subparagraph (C), by adding ‘‘and’’ at 
the end; and 
(3) by adding at the end the following new sub-
paragraph: 
‘‘(D) for each research institution subcon-
tracted by a recipient of a Phase I, Phase II, 
or Phase III SBIR award to perform research 
or research and development with respect to 
such award— 
‘‘(i) the name and location of such re-
search institution; 
‘‘(ii) whether such research institution 
is— 
‘‘(I) an institution of higher edu-
cation (as such term is defined in sec-
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tion 101 of the Higher Education Act 
of 1965 (20 U.S.C. 1001)); 
‘‘(II) a nonprofit institution (as 
defined in section 4 of the Stevenson- 
Wydler Technology Innovation Act of 
1980 (15 U.S.C. 3703)) other than an 
institution of higher education; or 
‘‘(III) a federally funded research 
and development center (as identified 
by the National Scientific Foundation 
in accordance with the Federal Acqui-
sition Regulation); and 
‘‘(iii) for each research institution 
that is an institution of higher education, 
whether such research institution is— 
‘‘(I) a part B institution (as de-
fined in section 322 the Higher Edu-
cation Act of 1965 (20 U.S.C. 1061)); 
‘‘(II) a Hispanic-serving institu-
tion (as defined in section 502 of such 
Act (20 U.S.C. 1101a)); 
‘‘(III) a Tribal College or Univer-
sity (as defined in section 316 of such 
Act (20 U.S.C. 1059c)); 
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‘‘(IV) an Alaska Native-serving 
institution or a Native Hawaiian-serv-
ing institution (as defined in section 
317(b) of such Act (20 U.S.C. 
1059d(b))); 
‘‘(V) a Predominantly Black In-
stitution (as defined in section 371(c) 
of such Act (20 U.S.C. 1067q(c))); 
‘‘(VI) an Asian American and 
Native American Pacific Islander- 
serving institution (as defined in sec-
tion 371(c) of such Act (20 U.S.C. 10 
1067q(c))); or 
‘‘(VII) a Native American-serving 
nontribal institution (as defined in 
section 371(c) of such Act (20 U.S.C. 
1067q(c)));’’. 
(b) STTR PROGRAM.—Section 9(o)(9) of the Small 
Business Act (15 U.S.C. 638(o)(9)) is amended— 
(1) in subparagraph (B), by striking ‘‘and’’ at 
the end; 
(2) in subparagraph (C), by adding ‘‘and’’ at 
the end; and 
(3) by adding at the end the following new sub-
paragraph: 
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‘‘(D) for each research institution subcon-
tracted by a recipient of a Phase I or Phase II 
STTR award to perform research or research 
and development with respect to such award— 
‘‘(i) the name and location of such re-
search institution; 
‘‘(ii) whether such research institution 
is— 
‘‘(I) an institution of higher edu-
cation (as such term is defined in sec-
tion 101 of the Higher Education Act 
of 1965 (20 U.S.C. 1001)); 
‘‘(II) a nonprofit institution (as 
defined in section 4 of the Stevenson- 
Wydler Technology Innovation Act of 
1980 (15 U.S.C. 3703)) other than an 
institution of higher education; or 
‘‘(III) a federally funded research 
and development center (as identified 
by the National Scientific Foundation 
in accordance with the Federal Acqui-
sition Regulation); and 
‘‘(iii) for each research institution 
that is an institution of higher education, 
whether such research institution is— 
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‘‘(I) a part B institution (as de-
fined in section 322 the Higher Edu-
cation Act of 1965 (20 U.S.C. 1061)); 
‘‘(II) a Hispanic-serving institu-
tion (as defined in section 502 of such 
Act (20 U.S.C. 1101a)); 
‘‘(III) a Tribal College or Univer-
sity (as defined in section 316 of such 
Act (20 U.S.C. 1059c)); 
‘‘(IV) an Alaska Native-serving 
institution or a Native Hawaiian-serv-
ing institution (as defined in section 
317(b) of such Act (20 U.S.C. 
1059d(b))); 
‘‘(V) a Predominantly Black In-
stitution (as defined in section 371(c) 
of such Act (20 U.S.C. 1067q(c))); 
‘‘(VI) an Asian American and 
Native American Pacific Islander- 
serving institution (as defined in sec-
tion 371(c) of such Act (20 U.S.C. 25 
1067q(c))); or 
‘‘(VII) a Native American-serving 
nontribal institution (as defined in 
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section 371(c) of such Act (20 U.S.C. 
1067q(c)));’’. 
(c) DATABASE REPORTING.— 
(1) IN GENERAL.—Section 9(k) of the Small 
Business Act (15 U.S.C. 638(k)) is amended— 
(A) by striking ‘‘Phase I or Phase II SBIR 
or STTR’’ each place it appears and inserting 
‘‘Phase I, Phase II, or Phase III SBIR or 
STTR’’; 
(B) in paragraph (1)(B)— 
(i) in clause (ii), by striking ‘‘and’’ at 
the end; 
(ii) in clause (iii), by adding ‘‘and’’ at 
the end; and 
(iii) by adding at the end the fol-
lowing new clause: 
‘‘(iv) information regarding any re-
search institution subcontracted by such 
small business concern to perform research 
or research and development with respect 
to such award, including— 
‘‘(I) the name and location of 
such research institution; 
‘‘(II) whether such research insti-
tution is— 
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‘‘(aa) an institution of high-
er education (as such term is de-
fined in section 101 of the High-
er Education Act of 1965 (20 
U.S.C. 1001)); 
‘‘(bb) a nonprofit institution 
(as defined in section 4 of the 
Stevenson-Wydler Technology In-
novation Act of 1980 (15 U.S.C. 
3703)) other than an institution 
of higher education; or 
‘‘(cc) a federally funded re-
search and development center 
(as identified by the National 
Scientific Foundation in accord-
ance with the Federal Acquisition 
Regulation); and 
‘‘(III) for each research institu-
tion that is an institution of higher 
education (as such term is defined in 
section 101 of the Higher Education 
Act of 1965 (20 U.S.C. 1001)), 
whether such research institution is 
an institution described in paragraphs 
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(1) through (7) of section 371(a) of 
such Act (20 U.S.C. 1067q(a));’’; 
(C) in paragraph (2)— 
(i) in subparagraph (A), by striking 
‘‘Phase I or Phase II of the SBIR program 
or the STTR’’ and inserting ‘‘Phase I, 
Phase II, or Phase III of the SBIR pro-
gram or the STTR’’; 
(ii) in subparagraph (F), by striking 
‘‘and’’ at the end; 
(iii) in subparagraph (G)(ii), by strik-
ing the period at the end and inserting ‘‘; 
and’’; and 
(iv) by adding at the end the following 
new subparagraph: 
‘‘(H) contains information for each re-
search institution subcontracted by a recipient 
of a Phase I, Phase II, or Phase III STTR or 
SBIR award to perform research or research 
and development with respect to such award, 
including— 
‘‘(i) the name and location of such re-
search institution; 
‘‘(ii) whether such research institution 
is— 
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‘‘(I) an institution of higher edu-
cation (as such term is defined in sec-
tion 101 of the Higher Education Act 
of 1965 (20 U.S.C. 1001)); 
‘‘(II) a nonprofit institution (as 
defined in section 4 of the Stevenson- 
Wydler Technology Innovation Act of 
1980 (15 U.S.C. 3703)) other than an 
institution of higher education; or 
‘‘(III) a federally funded research 
and development center (as identified 
by the National Scientific Foundation 
in accordance with the Federal Acqui-
sition Regulation); and 
‘‘(iii) for each research institution 
that is an institution of higher education 
(as such term is defined in section 101 of 
the Higher Education Act of 1965 (20 
U.S.C. 1001)), whether such research in-
stitution is an institution described in 
paragraphs (1) through (7) of section 
371(a) 
of 
such 
Act 
(20 
U.S.C. 
1067q(a)).’’; and 
(D) in paragraph (3)(C), by striking 
‘‘Phase I or Phase II award’’ each place it ap-
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pears and inserting ‘‘Phase I, Phase II, or 
Phase III award’’. 
(2) DATABASE UPDATE DEADLINE.—Notwith-
standing paragraphs (1) or (2) of section 9(k) of the 
Small Business Act (15 U.S.C. 638(k)), the Admin-
istrator shall, not later than 1 year after the date 
of the enactment of this Act, include— 
(A) in the database described such para-
graph (1) the information required under such 
paragraph, as amended by subparagraphs (A) 
and (B) of paragraph (1) of this Act; and 
(B) in the database described such para-
graph (2) the information required under such 
paragraph, as amended by subparagraphs (A) 
and (C) of paragraph (1) of this Act. 
TITLE III—COMMERCIALIZATION 
IMPROVEMENTS 
SEC. 301. PHASE III AWARD EDUCATION. 
Section 9(r) of the Small Business Act (15 U.S.C. 
638(r)) is amended by adding at the end the following new 
paragraph: 
‘‘(5) WORKFORCE TRAINING.— 
‘‘(A) IN GENERAL.—The Administrator, in 
coordination with the Secretary of Defense, the 
Administrator of the General Services Adminis-
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tration, and the head of any such other Federal 
agency that the Administrator determines ap-
propriate, shall establish training activities for 
contracting officers and agency acquisition 
workforce of Federal agencies to ensure that 
such individuals are fully aware of all aspects of 
Phase III acquisitions under the SBIR and 
STTR programs, as applicable. 
‘‘(B) TRAINING TOPICS.—The training ac-
tivities required under subparagraph (A) shall 
include training on— 
‘‘(i) the missions, goals, and authori-
ties of the SBIR and STTR programs; 
‘‘(ii) the use of Phase III agreement; 
and 
‘‘(iii) Phase III data rights. 
‘‘(C) DEFINITIONS.—In this paragraph: 
‘‘(i) AGENCY
ACQUISITION
WORK-
FORCE.—The term ‘agency acquisition 
workforce’ means the employees of a Fed-
eral agency that have procurement or ac-
quisition responsibilities, including— 
‘‘(I) employees described in sec-
tion 1703 of title 41, United States 
Code; and 
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‘‘(II) individuals that are part of 
the acquisition workforce (as such 
term is defined in section 101(a) of 
title 10, United States Code). 
‘‘(ii) PHASE
III
ACQUISITION.—The 
term ‘Phase III acquisition’ means the ac-
quisition of a good or service from a par-
ticipant in Phase III that such participant 
has commercialized or is seeking to com-
mercialize as such a participant.’’. 
SEC. 302. REPORT ON DOD DENIALS OF PHASE III. 
Section 9(r) of the Small Business Act (15 U.S.C. 
638(r)), as amended by section 301, is further amended 
by adding at the end the following new paragraph: 
‘‘(6) REPORTING.—Not later than 30 days after 
the date on which the Department of Defense denies 
a small business concern Phase III agreement, the 
Secretary of Defense shall report that denial to the 
Administrator.’’. 
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TITLE IV—PILOT PROGRAMS 
SEC. 401. EXTEND AND MODIFY ASSISTANCE FOR ADMINIS-
TRATIVE, OVERSIGHT, AND CONTRACT PROC-
ESSING COSTS. 
(a) IN GENERAL.—Section 9(mm) of the Small Busi-
ness Act (15 U.S.C. 638(mm)), as amended by section 
202, is further amended— 
(1) by designating the text of paragraph (1) as 
subparagraph (A); and 
(2) in paragraph (1)— 
(A) by redesignating subparagraphs (A) 
through (L) as clauses (i) through (xii), respec-
tively; 
(B) by striking ‘‘September 30, 2025’’ and 
inserting ‘‘September 30, 2030’’; 
(C) by striking ‘‘3 percent’’ and inserting 
‘‘3.3 percent’’; and 
(D) by adding at the end the following new 
subparagraph: 
‘‘(B) TRANSFER OF FUNDS.— 
‘‘(i) IN GENERAL.—Not later than 2 
months after the date of the enactment of 
an Act providing appropriations for the 
Department of Defense, the Department of 
Energy, the Department of Health and 
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Human Services, the National Aeronautics 
and Space Administration, or the National 
Science Foundation, the head of each such 
entity for which such Act provided appro-
priations shall transfer not less than 10 
percent of the funds described under sub-
paragraph (A) to the Administrator to in-
crease the resources of the Administration 
for administering the SBIR and STTR 
programs. 
‘‘(ii) FUND USE LIMITS.—None of the 
funds transferred under clause (i) may be 
used for or with respect to any program 
established under the Small Business In-
vestment Act of 1958 (15 U.S.C. 661 et 
seq.).’’. 
(b) INCREASING PARTICIPATION OF UNDERSERVED 
POPULATIONS IN THE SBIR AND STTR PROGRAMS.— 
(1) IN
GENERAL.—Section 9(mm)(2) of the 
Small Business Act (15 U.S.C. 638(mm)(2)) is 
amended to read as follows: 
‘‘(2) OUTREACH
AND
TECHNICAL
ASSIST-
ANCE.—A Federal agency participating in the pro-
gram under this subsection may use a portion of the 
funds authorized for uses under paragraph (1) to 
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carry out the policy directive required under sub-
section (j)(2)(F) and to increase the participation of 
States with respect to which a low level of SBIR 
awards have historically been awarded.’’. 
(2) 
CONFORMING
AMENDMENT.—Section 
9(mm)(6) of the Small Business Act (15 U.S.C. 
638(mm)(6)) is amended by striking ‘‘including’’ 
and all that follows and inserting the following: ‘‘in-
cluding— 
‘‘(A) the use of funds transferred under 
subparagraph (B) of paragraph (1) for the uses 
authorized in such subparagraph and to achieve 
the objectives of paragraph (2); and 
‘‘(B) the use of other funds under this 
subsection to achieve such objectives.’’. 
SEC. 402. EXTEND AND EXPAND THE DIRECT TO PHASE II 
AUTHORITY. 
Section 9 of the Small Business Act (15 U.S.C. 638) 
is amended— 
(1) by designating the text of subsection (cc) as 
paragraph (1); and 
(2) in subsection (cc)— 
(A) by striking ‘‘2012 through 2025’’ and 
inserting ‘‘2012 through 2030’’; 
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(B) by striking ‘‘the National Institutes of 
Health, the Department of Defense, and the 
Department of Education may each’’ and in-
serting ‘‘each Federal agency required to carry 
out an SBIR program may’’; and 
(C) by adding at the end the following new 
paragraphs: 
‘‘(2) LIMITATION.—The total value of awards 
provided by a Federal agency under this subsection 
in a fiscal year shall be— 
‘‘(A) except as provided in subparagraph 
(B), not more than 10 percent of the total 
funds allocated to the SBIR program of the 
Federal agency during that fiscal year; and 
‘‘(B) with respect to the National Insti-
tutes of Health, not more than 15 percent of 
the total funds allocated to the SBIR program 
of the National Institutes of Health during that 
fiscal year. 
‘‘(3) REPORT.—Each head of a Federal agency 
that exercises the authority under this subsection 
shall include in the next report submitted by such 
Federal agency under (g)(9) following such exercise 
the number and amount of awards provided under 
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this subsection by such Federal agency in the period 
covered by such report.’’. 
SEC. 403. ACCELERATION OF DOD SBIR AND STTR AWARDS. 
(a) IN GENERAL.—Section 9(hh) of the Small Busi-
ness Act (15 U.S.C. 638(hh)) is amended— 
(1) in the heading, by inserting ‘‘AND SIM-
PLIFIED DOD FORMS’’ after ‘‘OF FUNDING’’; and 
(2) by amending paragraph (2) to read as fol-
lows: 
‘‘(2) ACCELERATE DEPARTMENT OF DEFENSE 
SBIR AND STTR AWARDS.— 
‘‘(A) IN GENERAL.—Notwithstanding sub-
sections (g)(4) and (o)(4), the Under Secretary 
of Defense for Research and Engineering, act-
ing through the Director of Defense Procure-
ment and Acquisition Policy of the Department 
of Defense, shall develop simplified and stand-
ardized 
procedures 
and 
model 
contracts 
throughout the Department of Defense for 
Phase I, Phase II, and Phase III SBIR awards 
that, to the extent practicable, reduce the 
amount of time between the provision of notice 
of such awards and the subsequent release of 
funding with respect to the awards to 90 days. 
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‘‘(B) CONSULTATION.—In carrying out 
subparagraph (A), the Director of Defense Pro-
curement and Acquisition Policy of the Depart-
ment of Defense shall consult with the Director 
of the Office of Small Business Programs of the 
Department of Defense.’’. 
(b) TIMING.—The Under Secretary of Defense for 
Research and Engineering, acting through the Director of 
Defense Procurement and Acquisition Policy of the De-
partment of Defense, shall carry out section 9(hh)(2) of 
the Small Business Act (15 U.S.C. 638(hh)(2)), as 
amended by subsection (a), not later than 1 year after 
the date of the enactment of this Act. 
SEC. 404. EXTEND COMMERCIALIZATION READINESS PRO-
GRAM FOR CIVILIAN AGENCIES. 
Section 9(gg) of the Small Business Act (15 U.S.C. 
638(gg)) is amended— 
(1) in the heading, by striking ‘‘PILOT’’ and in-
serting ‘‘CIVILIAN AGENCIES COMMERCIALIZATION 
READINESS’’; 
(2) by striking ‘‘pilot program’’ each place it 
appears and inserting ‘‘covered program’’; and 
(3) by striking ‘‘fiscal year 2025’’ and inserting 
‘‘fiscal year 2030’’. 
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SEC. 405. EXTEND AND EXPAND PHASE 0 PROOF OF CON-
CEPT PARTNERSHIP PROGRAM. 
Section 9(jj) of the Small Business Act (15 U.S.C. 
638(jj)) is amended— 
(1) in the subsection heading, by striking 
‘‘PILOT’’; 
(2) in paragraph (1)— 
(A) by striking ‘‘Director of the National 
Institutes of Health’’ and inserting ‘‘head of a 
covered agency’’; 
(B) by striking ‘‘pilot program’’ and in-
serting ‘‘program’’; 
(C) by striking ‘‘the Director shall award’’ 
and inserting ‘‘the head of each covered agency 
shall make’’; and 
(D) by striking ‘‘grants’’ each place it ap-
pears and inserting ‘‘awards’’; 
(3) by amending paragraph (2) to read as fol-
lows: 
‘‘(2) DEFINITIONS.—In this subsection— 
‘‘(A) the term ‘covered agency’ means the 
National Institutes of Health, the National 
Science Foundation, the National Aeronautics 
and Space Administration, and the Department 
of Energy; 
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‘‘(B) the term ‘Phase 0 program’ means a 
Proof of Concept Partnership program; and 
‘‘(C) the term ‘qualifying institution’ 
mean— 
‘‘(i) a university or other research in-
stitution that participates in the STTR 
program of the National Institutes of 
Health, National Science Foundation, Na-
tional Aeronautics and Atmospheric Ad-
ministration, Department of Energy, or 
Department of Defense; or 
‘‘(ii) another U.S.-based organization 
with relevant expertise and capability in 
technology translation, technology entre-
preneurship, or technical research and de-
velopment.’’; 
(4) in paragraph (3)— 
(A) by amending subparagraph (A) to read 
as follows: 
‘‘(A) IN GENERAL.—A Proof of Concept 
Partnership shall be set up by a qualifying in-
stitution to make awards to individual research-
ers in support of proof of concept work and 
commercialization mentoring needed to trans-
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late promising research projects and tech-
nologies into a viable company.’’; and 
(B) in subparagraph (B)— 
(i) in the matter preceding clause 
(i)— 
(I) by striking ‘‘Proof of Concept 
Partnership program’’ and inserting 
‘‘Phase 0 program’’; and 
(II) by striking ‘‘award grants’’ 
and inserting ‘‘make awards’’; 
(ii) by redesignating clause (ii) as 
clause (iv); and 
(iii) by inserting after clause (i) the 
following new clauses: 
‘‘(ii) Eligible individual researchers in-
clude faculty members, university staff, in-
dustrial scientists, owners of small busi-
ness concerns, postdoctoral scholars, and 
students. 
‘‘(iii) Awards may support technical 
validations, market research, entrepre-
neurial 
training, 
clarifying 
intellectual 
property rights position and strategy, and 
investigating commercial or business op-
portunities.’’; 
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(5) in paragraph (4)— 
(A) in subparagraph (A)— 
(i) by striking ‘‘The Director’’ and in-
serting ‘‘The head of a covered agency’’; 
and 
(ii) by striking ‘‘$1,000,000’’ and in-
serting ‘‘$1,500,000’’; and 
(B) in subparagraph (B)— 
(i) in the matter preceding clause (i), 
by striking ‘‘In determining’’ and all that 
follows through ‘‘qualifying institutions—’’ 
and inserting the following: ‘‘In deter-
mining which qualifying institutions receive 
awards under the Phase 0 program, the 
head of a covered agency shall consider, in 
addition to any other criteria such head 
determines necessary, the extent to which 
the qualifying institution—’’; 
(ii) by amending clause (i) to read as 
follows: 
‘‘(i) have an established and proven 
record of working in the areas of tech-
nology transfer, technology or commer-
cialization, entrepreneurial development, or 
another related innovation practice;’’; 
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(iii) in clause (iv), by inserting ‘‘aca-
demic,’’ after ‘‘industry,’’; and 
(iv) by amending clause (v) to read as 
follows: 
‘‘(v) have demonstrated a plan for encouraging par-
ticipation of small business concerns owned and controlled 
by socially and economically disadvantaged individuals and 
small business concerns owned and controlled by women;’’; 
(6) in paragraph (6)— 
(A) in the matter preceding subparagraph 
(A)— 
(i) by striking ‘‘The Director’’ and in-
serting ‘‘The head of each covered agen-
cy’’; and 
(ii) by striking ‘‘pilot program’’ and 
inserting ‘‘Phase 0 program implemented 
by such head’’; 
(B) in subparagraph (B), by striking ‘‘the 
pilot program’’ and inserting ‘‘such Phase 0 
program’’; 
(C) in subparagraph (C), by striking ‘‘the 
pilot program’’ and inserting ‘‘such Phase 0 
program’’; 
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(6) in paragraph (5)(B)— 
(A) by striking ‘‘An eligible entity’’ and in-
serting the following: 
‘‘(i) IN
GENERAL.—An eligible enti-
ty’’; and 
(B) by adding at the end the following new 
clause: 
‘‘(ii) CERTAIN
AGENCY
FUNDS.—An 
eligible entity may use funds received from 
Federal agencies, other than funds received 
under an SBIR or STTR program, to meet 
the matching requirement of subparagraph 
(A).’’; 
(7) by redesignating paragraph (10) as para-
graph (11); 
(8) by inserting after paragraph (9) the fol-
lowing new paragraph: 
‘‘(10) TIMING.—An eligible entity may apply 
for and receive a third Phase II award any time 
after the eligible entity receives an additional Phase 
II SBIR award under subsection (ff), including after 
the completion of such additional Phase II SBIR 
award.’’; and 
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(9) in subparagraph (E) of paragraph (11), as 
so redesignated, in the heading, by striking ‘‘SUBSE-
QUENT PHASE II’’ and inserting ‘‘THIRD PHASE II’’. 
TITLE V—OVERSIGHT AND 
SIMPLIFICATION INITIATIVES 
SEC. 501. ANNUAL REPORTS TO CONGRESS. 
Section 9 of the Small Business Act (15 U.S.C. 638) 
is amended— 
(1) in subsection (g)(9)— 
(A) by inserting ‘‘Congress,’’ after ‘‘SBIR 
program to’’; 
(B) by inserting a comma after ‘‘Adminis-
tration’’; and 
(C) by inserting after ‘‘Technology Policy’’ 
the following: ‘‘and publish such report on the 
website of such Federal agency as soon as prac-
ticable’’; 
(2) in subsection (o)(10)— 
(A) by inserting ‘‘Congress,’’ after ‘‘STTR 
program to’’; 
(B) by inserting a comma after ‘‘Adminis-
tration’’; and 
(C) by inserting after ‘‘Technology Policy’’ 
the following: ‘‘and publish such report on the 
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website of such Federal agency as soon as prac-
ticable’’; and 
(3) in subsection (gg)(6), by inserting ‘‘Con-
gress and’’ after ‘‘agency to’’. 
SEC. 502. COMPTROLLER GENERAL REPORTS ON FRAUD 
CONTROLS. 
(a) REPORT ON STUDY WITH RESPECT TO VENTURE 
CAPITAL OPERATING COMPANY, HEDGE FUND, AND PRI-
VATE EQUITY FIRM INVOLVEMENT.—Section 5142 of the 
National Defense Authorization Act for Fiscal Year 2012 
(15 U.S.C. 638a) is amended by inserting ‘‘through De-
cember 31, 2027’’ after ‘‘every 3 years thereafter’’. 
(b) REPORT
ON
PROGRAM
TO
FIGHT
FRAUD, 
WASTE, AND ABUSE.—Section 5143(b) of the National 
Defense Authorization Act for Fiscal Year 2012 (15 
U.S.C. 638b(b)) is amended by inserting ‘‘through Decem-
ber 31, 2027,’’ after ‘‘every 4 years thereafter’’. 
SEC. 503. COMPTROLLER GENERAL REPORT ON DIVER-
SIFICATION AND COMMERCIALIZATION. 
(a) IN GENERAL.—Not later than three years after 
the date of the enactment of this Act, the Comptroller 
General of the United States shall submit to the Com-
mittee on Small Business and Entrepreneurship of the 
Senate and the Committee on Small Business of the 
House of Representatives a report on the effectiveness of 
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the SBIR and STTR programs with respect to diversifica-
tion of participants and commercialization. 
(b) CONTENTS.—The report shall include, to the ex-
tent practicable, an assessment of— 
(1) the demographics of small business concerns 
receiving SBIR or STTR awards, including new en-
trants and underrepresented groups; 
(2) the efforts of participating agencies to 
broaden representation and participation of new en-
trants and underrepresented groups in the SBIR 
and STTR programs; 
(3) how participating agencies develop solicita-
tion topics and attract applicants; 
(4) the efforts of participating agencies to sup-
port technology commercialization; 
(5) the extent to which the SBIR and STTR 
awards made by each participating agency align with 
the research priorities and technology needs of that 
participating agency; and 
(6) such other matters as the Comptroller Gen-
eral, in consultation with the Committee on Small 
Business and Entrepreneurship of the Senate and 
the Committee on Small Business of the House of 
Representatives, determines appropriate. 
(c) DEFINITIONS.—In this section: 
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(1) FEDERAL AGENCY; SBIR; STTR.—The terms 
‘‘Federal agency’’, ‘‘SBIR’’, and ‘‘STTR’’ have the 
meanings given such terms in section 9(e) of the 
Small Business Act (15 U.S.C. 638(e)). 
(2) NEW ENTRANT.—The term ‘‘new entrant’’ 
means a small business concern that has not pre-
viously received an SBIR or STTR award. 
(3) UNDERREPRESENTED GROUPS.—The term 
‘‘underrepresented groups’’ means small business 
concerns located in States with respect to which a 
low level of SBIR and STTR awards have histori-
cally been awarded, small business concerns owned 
and controlled by women, and small business con-
cerns owned and controlled by socially and economi-
cally disadvantaged individuals. 
(4) PARTICIPATING AGENCY.—The term ‘‘par-
ticipating agency’’ means a Federal agency carrying 
out an SBIR or STTR program under section 9 of 
the Small Business Act (15 U.S.C. 638). 
(5) SMALL
BUSINESS
CONCERN.—The term 
‘‘small business concern’’ has the meaning given 
such term under section 3 of the Small Business Act 
(15 U.S.C. 632). 
(6) SMALL
BUSINESS
CONCERN
OWNED
AND 
CONTROLLED BY SOCIALLY AND ECONOMICALLY DIS-
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ADVANTAGED INDIVIDUALS; SMALL BUSINESS CON-
CERN OWNED AND CONTROLLED BY WOMEN.—The 
terms ‘‘small business concern owned and controlled 
by socially and economically disadvantaged individ-
uals’’ and ‘‘small business concern owned and con-
trolled by women’’ have the meanings given such 
terms in section 8(d) of the Small Business Act (15 
U.S.C. 637(d)). 
SEC. 504. EXTEND THE REPORT ON AWARD TIMELINESS. 
Section 9(ii)(2)(A) of the Small Business Act (15 
U.S.C. 638(ii)(2)(A)) is amended— 
(1) in the matter preceding clause (i), by strik-
ing ‘‘3 years’’ and inserting ‘‘11 years’’; 
(2) in clause (i), by striking ‘‘and’’ at the end; 
(3) by redesignating clause (ii) as clause (iii); 
and 
(4) by inserting after clause (i) the following 
new clause: 
‘‘(ii) provides the average and median 
amount of time that each Federal agency 
with an SBIR or STTR program takes to 
review and make a final decision on pro-
posals submitted under the program; and’’. 
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E:\BILLS\H10407.IH
H10407
kjohnson on DSK7ZCZBW3PROD with $$_JOB