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(ii) by striking ‘‘$4,000’’ and inserting 
‘‘$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 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 purchase 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 recipient re-
quests to seek technical assistance from an indi-
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vidual or entity other than the vendor selected 
under paragraph (2) by the Federal agency. 
‘‘(D) LIMITATION.—A Federal agency may 
not— 
‘‘(i) use the amounts authorized under 
subparagraph (A) or (B) unless the vendor 
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. 5203. COMMERCIALIZATION READINESS PROGRAM AT 
DEPARTMENT OF DEFENSE. 
(a) IN GENERAL.—Section 9(y) of the Small Business 
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 Business 
Innovation Research Program’’; and
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(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 of 
SBIR or STTR technologies, including any such 
program in effect on the date of enactment 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 contract 
with a value of not less than $100,000,000, the Sec-
retary 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
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of contracts entered into by that prime con-
tractor for Phase III SBIR or STTR projects. 
‘‘(6) GOAL FOR SBIR AND STTR TECHNOLOGY IN-
SERTION.—The Secretary of Defense shall— 
‘‘(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 SBIR/STTR Reauthorization 
Act of 2011, or create new incentives, to encour-
age agency program managers and prime con-
tractors to meet the goal under subparagraph 
(A); and 
‘‘(C) include in the annual report to Con-
gress the percentage of contracts described in sub-
paragraph (A) awarded by that Secretary, and 
information on the ongoing status of projects 
funded through the Commercialization Readiness 
Program and efforts to transition these tech-
nologies into programs of record or fielded sys-
tems.’’. 
(b) TECHNICAL AND CONFORMING AMENDMENT.—Sec-
tion 9(i)(1) of the Small Business Act (15 U.S.C. 638(i)(1))
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is amended by inserting ‘‘(including awards under sub-
section (y))’’ after ‘‘the number of awards’’. 
SEC. 5204. 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 amended by adding at the end 
the following: 
‘‘(ff) PILOT PROGRAM.— 
‘‘(1) AUTHORIZATION.—The head of each covered 
Federal agency may allocate not more than 10 per-
cent of the funds allocated to the SBIR program and 
the STTR program of the covered Federal agency— 
‘‘(A) for awards for technology development, 
testing, and evaluation of SBIR and STTR 
Phase II technologies; or 
‘‘(B) to support the progress of research or 
research and development conducted under the 
SBIR or STTR programs 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 to the first day of the fiscal year in 
which the pilot program is to be established, that
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describes a compelling reason that additional in-
vestment in SBIR or STTR technologies is nec-
essary, including unusually high regulatory, sys-
tems integration, or other costs relating to devel-
opment or manufacturing of identifiable, highly 
promising small business technologies or a class 
of such technologies expected to substantially ad-
vance the mission of the agency. 
‘‘(B) DETERMINATION.—The Administrator 
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 ap-
plication 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 of the House of 
Representatives. 
‘‘(3) MAXIMUM AMOUNT OF AWARD.—The head of 
a covered Federal agency may not make an award
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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 Federal 
agency shall include in the annual report of the cov-
ered Federal agency to the Administrator an analysis 
of the various activities considered for inclusion in 
the pilot program of the covered Federal agency and 
a statement of the reasons why each activity consid-
ered 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 
‘‘(ii) does not include the Department 
of Defense; and
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‘‘(B) the term ‘pilot program’ means the 
program established under paragraph (1).’’. 
SEC. 5205. ACCELERATING CURES. 
(a) IN GENERAL.—The Small Business Act (15 U.S.C. 
631 et seq.) is amended by inserting after section 42, as 
redesignated by section 5201 of this Act, the following: 
‘‘SEC. 43. SMALL BUSINESS INNOVATION RESEARCH PRO-
GRAM. 
‘‘(a) NIH CURES PILOT.— 
‘‘(1) ESTABLISHMENT.—An independent advi-
sory board shall be established at the National Acad-
emy of Sciences (in this section referred to as the ‘ad-
visory board’) to conduct periodic evaluations of the 
SBIR program (as that term is defined in section 9) 
of each of the National Institutes of Health (referred 
to in this section as the ‘NIH’) institutes and centers 
for the purpose of improving the management of the 
SBIR program through data-driven assessment. 
‘‘(2) MEMBERSHIP.— 
‘‘(A) IN
GENERAL.—The advisory board 
shall consist of— 
‘‘(i) the Director of the NIH; 
‘‘(ii) the Director of the SBIR program 
of the NIH;
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‘‘(iii) senior NIH agency managers, se-
lected by the Director of NIH; 
‘‘(iv) industry experts, selected by the 
Council of the National Academy of 
Sciences in consultation with the Associate 
Administrator for Technology of the Admin-
istration and the Director of the Office of 
Science and Technology Policy; and 
‘‘(v) owners or operators of small busi-
ness concerns that have received an award 
under the SBIR program of the NIH, se-
lected by the Associate Administrator for 
Technology of the Administration. 
‘‘(B) NUMBER
OF
MEMBERS.—The total 
number of members selected under clauses (iii), 
(iv), and (v) of subparagraph (A) shall not ex-
ceed 10. 
‘‘(C) EQUAL REPRESENTATION.—The total 
number of members of the advisory board selected 
under clauses (i), (ii), (iii), and (iv) of subpara-
graph (A) shall be equal to the number of mem-
bers of the advisory board selected under sub-
paragraph (A)(v). 
‘‘(b) ADDRESSING DATA GAPS.—In order to enhance 
the evidence-base guiding SBIR program decisions and
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changes, the Director of the SBIR program of the NIH shall 
address the gaps and deficiencies in the data collection con-
cerns identified in the 2007 report of the National Academy 
of Science entitled ‘An Assessment of the Small Business 
Innovation Research Program at the NIH’. 
‘‘(c) PILOT PROGRAM.— 
‘‘(1) IN GENERAL.—The Director of the SBIR 
program of the NIH may initiate a pilot program, 
under a formal mechanism for designing, imple-
menting, and evaluating pilot programs, to spur in-
novation and to test new strategies that may enhance 
the development of cures and therapies. 
‘‘(2) CONSIDERATIONS.—The Director of the 
SBIR program of the NIH may consider conducting 
a pilot program to include individuals with successful 
SBIR program experience in study sections, hiring 
individuals with small business development experi-
ence for staff positions, separating the commercial 
and scientific review processes, and examining the 
impact of the trend toward larger awards on the over-
all program. 
‘‘(d) REPORT TO CONGRESS.—The Director of the NIH 
shall submit an annual report to Congress and the advisory 
board on the activities of the SBIR program of the NIH 
under this section.
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‘‘(e) SBIR GRANTS AND CONTRACTS.— 
‘‘(1) IN
GENERAL.—In awarding grants and 
contracts under the SBIR program of the NIH each 
SBIR program manager shall emphasize applications 
that identify products, processes, technologies, and 
services that may enhance the development of cures 
and therapies. 
‘‘(2) EXAMINATION OF COMMERCIALIZATION AND 
OTHER METRICS.—The advisory board shall evaluate 
the implementation of the requirement under para-
graph (1) by examining increased commercialization 
and other metrics, to be determined and collected by 
the SBIR program of the NIH. 
‘‘(3) PHASE I AND II.—To the greatest extent 
practicable, the Director of the SBIR program of the 
NIH shall reduce the time period between Phase I 
and Phase II funding of grants and contracts under 
the SBIR program of the NIH to 90 days. 
‘‘(f) LIMIT.—Not more than a total of 1 percent of the 
extramural budget (as defined in section 9 of the Small 
Business Act (15 U.S.C. 638)) of the NIH for research or 
research and development may be used for the pilot program 
under subsection (c) and to carry out subsection (e).’’.
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(b) PROSPECTIVE REPEAL.—Effective 5 years after the 
date of enactment of this Act, the Small Business Act (15 
U.S.C. 631 et seq.) is amended— 
(1) by striking section 43, as added by subsection 
(a); and 
(2) by redesignating sections 44 and 45 as sec-
tions 43 and 44, respectively. 
SEC. 5206. FEDERAL AGENCY ENGAGEMENT WITH SBIR AND 
STTR AWARDEES THAT HAVE BEEN AWARDED 
MULTIPLE PHASE I AWARDS BUT HAVE NOT 
BEEN AWARDED PHASE II AWARDS. 
Section 9 of the Small Business Act (15 U.S.C. 638), 
as amended by this Act, is amended by adding at the end 
the following: 
‘‘(gg) REQUIREMENTS RELATING TO FEDERAL AGEN-
CY ENGAGEMENT WITH CERTAIN PHASE I SBIR AND 
STTR AWARDEES.— 
‘‘(1) DEFINITION.—In this subsection, the term 
‘covered awardee’ means a small business concern 
that— 
‘‘(A) has received multiple Phase I awards 
over multiple years, as determined by the head 
of a Federal agency, under the SBIR program or 
the STTR program of the Federal agency; and 
‘‘(B) has not received a Phase II award—
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† HR 1540 EAS 
‘‘(i) under the SBIR program or 
STTR program, as the case may be, of the 
Federal agency described in subparagraph 
(A); or 
‘‘(ii) relating to a Phase I award de-
scribed in subparagraph (A) under the 
SBIR program or the STTR program of 
another Federal agency. 
‘‘(2) PERFORMANCE
MEASURES.—The head of 
each Federal agency that participates in the SBIR 
program or the STTR program shall develop perform-
ance measures for any covered awardee relating to 
commercializing research or research and development 
activities under the SBIR program or the STTR pro-
gram of the Federal agency.’’. 
SEC. 5207. CLARIFYING THE DEFINITION OF ‘‘PHASE III’’. 
(a) PHASE III AWARDS.—Section 9(e) of the Small 
Business Act (15 U.S.C. 638(e)) is amended— 
(1) in paragraph (4)(C), in the matter preceding 
clause (i), by inserting ‘‘for work that derives from, 
extends, or completes efforts made under prior fund-
ing agreements under the SBIR program’’ after 
‘‘phase’’; 
(2) in paragraph (6)(C), in the matter preceding 
clause (i), by inserting ‘‘for work that derives from,
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† HR 1540 EAS 
extends, or completes efforts made under prior fund-
ing 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) 
to or use by the Federal Government or commer-
cial markets;’’. 
(b) TECHNICAL
AND CONFORMING AMENDMENTS.— 
The Small Business Act (15 U.S.C. 631 et seq.) is amend-
ed— 
(1) in section 9 (15 U.S.C. 638)— 
(A) in subsection (e)— 
(i) in paragraph (4)(C)(ii), by striking 
‘‘scientific review criteria’’ and inserting 
‘‘merit-based selection procedures’’;
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(ii) in paragraph (9), by striking ‘‘the 
second or the third phase’’ and inserting 
‘‘Phase II or Phase III’’; and 
(iii) by adding at the end the fol-
lowing: 
‘‘(11) the term ‘Phase I’ means— 
‘‘(A) with respect to the SBIR program, the 
first phase described in paragraph (4)(A); and 
‘‘(B) with respect to the STTR program, the 
first phase described in paragraph (6)(A); 
‘‘(12) the term ‘Phase II’ means— 
‘‘(A) with respect to the SBIR program, the 
second phase described in paragraph (4)(B); and 
‘‘(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).’’; 
(B) in subsection (j)— 
(i) in paragraph (1)(B), by striking 
‘‘phase two’’ and inserting ‘‘Phase II’’; 
(ii) in paragraph (2)— 
(I) in subparagraph (B)—
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† HR 1540 EAS 
(aa) by striking ‘‘the third 
phase’’ each place it appears and 
inserting ‘‘Phase III’’; and 
(bb) by striking ‘‘the second 
phase’’ and inserting ‘‘Phase II’’; 
(II) in subparagraph (D)— 
(aa) by striking ‘‘the first 
phase’’ and inserting ‘‘Phase I’’; 
and 
(bb) by striking ‘‘the second 
phase’’ and inserting ‘‘Phase II’’; 
(III) in subparagraph (F), by 
striking ‘‘the third phase’’ and insert-
ing ‘‘Phase III’’; 
(IV) in subparagraph (G)— 
(aa) by striking ‘‘the first 
phase’’ and inserting ‘‘Phase I’’; 
and 
(bb) by striking ‘‘the second 
phase’’ and inserting ‘‘Phase II’’; 
and 
(V) in subparagraph (H)— 
(aa) by striking ‘‘the first 
phase’’ and inserting ‘‘Phase I’’;
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† HR 1540 EAS 
(bb) 
by 
striking 
‘‘second 
phase’’ each place it appears and 
inserting ‘‘Phase II’’; and 
(cc) 
by 
striking 
‘‘third 
phase’’ and inserting ‘‘Phase III’’; 
and 
(iii) in paragraph (3)— 
(I) in subparagraph (A)— 
(aa) by striking ‘‘the first 
phase (as described in subsection 
(e)(4)(A))’’ and inserting ‘‘Phase 
I’’; 
(bb) by striking ‘‘the second 
phase (as described in subsection 
(e)(4)(B))’’ and inserting ‘‘Phase 
II’’; and 
(cc) 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’’; 
(C) in subsection (k)—
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(i) by striking ‘‘first phase’’ each place 
it appears and inserting ‘‘Phase I’’; and 
(ii) by striking ‘‘second phase’’ each 
place it appears and inserting ‘‘Phase II’’; 
(D) in subsection (l)(2)— 
(i) by striking ‘‘the first phase’’ and 
inserting ‘‘Phase I’’; and 
(ii) by striking ‘‘the second phase’’ and 
inserting ‘‘Phase II’’; 
(E) in subsection (o)(13)— 
(i) in subparagraph (B), by striking 
‘‘second phase’’ and inserting ‘‘Phase II’’; 
and 
(ii) in subparagraph (C), by striking 
‘‘third phase’’ and inserting ‘‘Phase III’’; 
(F) in subsection (p)— 
(i) in paragraph (2)(B)— 
(I) in clause (vi)— 
(aa) by striking ‘‘the second 
phase’’ and inserting ‘‘Phase II’’; 
and 
(bb) by striking ‘‘the third 
phase’’ and inserting ‘‘Phase III’’; 
and 
(II) in clause (ix)—
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† HR 1540 EAS 
(aa) by striking ‘‘the first 
phase’’ and inserting ‘‘Phase I’’; 
and 
(bb) by striking ‘‘the second 
phase’’ and inserting ‘‘Phase II’’; 
and 
(ii) in paragraph (3)— 
(I) by striking ‘‘the first phase (as 
described in subsection (e)(6)(A))’’ and 
inserting ‘‘Phase I’’; 
(II) by striking ‘‘the second phase 
(as described in subsection (e)(6)(B))’’ 
and inserting ‘‘Phase II’’; and 
(III) by striking ‘‘the third phase 
(as described in subsection (e)(6)(A))’’ 
and inserting ‘‘Phase III’’; 
(G) in subsection (q)(3)— 
(i) in subparagraph (A)— 
(I) in the subparagraph heading, 
by striking ‘‘FIRST PHASE’’ and insert-
ing ‘‘PHASE I’’; and 
(II) by striking ‘‘first phase’’ and 
inserting ‘‘Phase I’’; and 
(ii) in subparagraph (B)—
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† HR 1540 EAS 
(I) in the subparagraph heading, 
by striking ‘‘SECOND PHASE’’ and in-
serting ‘‘PHASE II’’; and 
(II) by striking ‘‘second phase’’ 
and inserting ‘‘Phase II’’; 
(H) in subsection (r)— 
(i) in the subsection heading, by strik-
ing ‘‘THIRD PHASE’’ and inserting ‘‘PHASE 
III’’; 
(ii) in paragraph (1)— 
(I) in the first sentence— 
(aa) by striking ‘‘for the sec-
ond phase’’ and inserting ‘‘for 
Phase II’’; 
(bb) 
by 
striking 
‘‘third 
phase’’ and inserting ‘‘Phase III’’; 
and 
(cc) 
by 
striking 
‘‘second 
phase 
period’’ 
and 
inserting 
‘‘Phase II period’’; and 
(II) in the second sentence— 
(aa) 
by 
striking 
‘‘second 
phase’’ and inserting ‘‘Phase II’’; 
and
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(bb) 
by 
striking 
‘‘third 
phase’’ and inserting ‘‘Phase III’’; 
and 
(iii) in paragraph (2), by striking 
‘‘third phase’’ and inserting ‘‘Phase III’’; 
and 
(I) in subsection (u)(2)(B), by striking ‘‘the 
first phase’’ and inserting ‘‘Phase I’’; and 
(2) in section 34(c)(2)(B)(vii) (15 U.S.C. 
657e(c)(2)(B)(vii)), as redesignated by section 5201 of 
this Act, by striking ‘‘third phase’’ and inserting 
‘‘Phase III’’. 
SEC. 5208. SHORTENED PERIOD FOR FINAL DECISIONS ON 
PROPOSALS AND APPLICATIONS. 
(a) IN GENERAL.—Section 9 of the Small Business Act 
(15 U.S.C. 638) is amended— 
(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 sub-
mitted under the SBIR program— 
‘‘(i) not later than 90 days after the date on 
which the solicitation closes; or
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‘‘(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 sub-
mitted 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 
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 
amended by adding at the end the following: 
‘‘(hh) 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 Na-
tional Institutes of Health if the application for the award
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has undergone technical and scientific peer review 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 inserting 
‘‘Except as provided in section 9(hh) of the 
Small Business Act (15 U.S.C. 638(hh)), a 
grant’’; and 
(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 inserting 
‘‘Except as provided in section 9(hh) of the 
Small Business Act (15 U.S.C. 638(hh)), a 
grant’’; and 
(ii) by striking ‘‘section 402(k)’’ and 
all that follows through ‘‘Act)’’ and insert-
ing ‘‘section 402(l) of such Act’’.
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TITLE LIII—OVERSIGHT AND 
EVALUATION 
SEC. 5301. STREAMLINING ANNUAL EVALUATION REQUIRE-
MENTS. 
Section 9(b) of the Small Business Act (15 U.S.C. 
638(b)), as amended by section 5102 of this Act, is amend-
ed— 
(1) in paragraph (7)— 
(A) by striking ‘‘STTR programs, including 
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 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 investment (including those 
majority-owned by multiple venture capital op-
erating companies) under each of the SBIR and 
STTR programs;
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‘‘(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 allocation 
of funds required under, subsection (cc) for firms 
owned in majority part by venture capital oper-
ating companies and participating in the SBIR 
program; 
‘‘(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 
(2) by inserting after paragraph (7) the fol-
lowing: 
‘‘(8) 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;’’.
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SEC. 5302. DATA COLLECTION FROM AGENCIES FOR SBIR. 
Section 9(g) of the Small Business Act (15 U.S.C. 
638(g)) is 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: 
‘‘(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 main-
tain the database described in subsection (k), includ-
ing— 
‘‘(A) whether an awardee— 
‘‘(i) has venture capital or is majority- 
owned by multiple venture capital oper-
ating companies, and, if so— 
‘‘(I) the amount of venture capital 
that the awardee has received 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—
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† HR 1540 EAS 
‘‘(I) is an individual who is not a 
citizen of the United States or a lawful 
permanent resident of the United 
States, and if so, the name of any such 
individual; or 
‘‘(II) is a person that is not an 
individual and is not 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) received assistance under the 
FAST program under section 34, as in ef-
fect on the day before the date of enactment 
of the SBIR/STTR Reauthorization Act of 
2011, or the outreach program under sub-
section (s); 
‘‘(vi) is a faculty member or a student 
of an institution of higher education, as 
that term is defined in section 101 of the
869 
† HR 1540 EAS 
Higher Education Act of 1965 (20 U.S.C. 
1001); or 
‘‘(vii) 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;’’. 
SEC. 5303. DATA COLLECTION FROM AGENCIES FOR STTR. 
Section 9(o) of the Small Business Act (15 U.S.C. 
638(o)) is 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 or is majority- 
owned by multiple venture capital oper-
ating companies, and, if so— 
‘‘(I) the amount of venture capital 
that the applicant or awardee has re-
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† HR 1540 EAS 
ceived as of the date of the application 
or award, as applicable; and 
‘‘(II) the amount of additional 
capital that the applicant or awardee 
has invested in the SBIR technology; 
‘‘(ii) has an investor that— 
‘‘(I) is an individual who is not a 
citizen of the United States or a lawful 
permanent 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) received assistance under the 
FAST program under section 34 or the out-
reach program under subsection (s);
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‘‘(vi) 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 
‘‘(vii) is located in a State in which 
the total value of contracts awarded to 
small business concerns under all STTR 
programs is less than the total value of con-
tracts awarded to small business concerns 
in a majority of other States, as determined 
by the Administrator in biennial fiscal 
years, beginning with fiscal year 2008, 
based on the most recent statistics compiled 
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. 5304. 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;
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† HR 1540 EAS 
(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 and, if so, 
whether the small business concern is reg-
istered as majority-owned by multiple ven-
ture capital operating companies as re-
quired under subsection (cc)(4); 
‘‘(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; 
‘‘(iv) received assistance under the 
FAST program under section 34, as in ef-
fect on the day before the date of enactment 
of the SBIR/STTR Reauthorization Act of 
2011, or the outreach program under sub-
section (s); or
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‘‘(v) 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. 5305. 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 
SBIR/STTR Reauthorization 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—
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† HR 1540 EAS 
‘‘(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 indi-
vidual described in clause (iv) will con-
tribute to the project; 
‘‘(vii) whether the small business con-
cern is majority-owned by multiple venture 
capital operating companies; and 
‘‘(viii) the Federal agency to which the 
application is made, and contact informa-
tion for the person or office within the Fed-
eral agency that is responsible for reviewing 
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;
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† HR 1540 EAS 
(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 awardee 
by the Administrator; 
‘‘(ii) whether the awardee has venture 
capital, and, if so— 
‘‘(I) the amount of venture capital 
as of the date of the award; 
‘‘(II) the percentage of ownership 
of the awardee held by a venture cap-
ital operating company, including 
whether the awardee is majority-owned 
by multiple venture capital operating 
companies; 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;
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† HR 1540 EAS 
‘‘(v) the number of employees of the af-
filiates of the awardee; and 
‘‘(vi) the names of, and the percentage 
of ownership of the awardee held by— 
‘‘(I) any individual who is not a 
citizen of the United States or a lawful 
permanent resident of the United 
States; or 
‘‘(II) any person that is not an 
individual and is not 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
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† HR 1540 EAS 
(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 Fed-
eral agency for submitting applications or pro-
posals for a Phase I or Phase II award under the 
SBIR program or STTR program, the head of 
the Federal agency shall submit to the Adminis-
trator the data required under paragraph (2) 
with respect to each small business concern that 
applies or submits a proposal for the Phase I or 
Phase II award.’’. 
SEC. 5306. 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 sec-
tion 9 of the Small Business Act (15 U.S.C. 
638), as amended by this Act;
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† HR 1540 EAS 
(B) assess the extent of compliance with the 
requirements of section 9(i)(2) of the Small Busi-
ness Act (15 U.S.C. 638(i)(2)) by Federal agen-
cies participating in the SBIR program or the 
STTR program and the Administration; 
(C) assess whether it would be more con-
sistent and effective to base the amount of the al-
locations under the SBIR program and the 
STTR program on a percentage of the research 
and development budget of a Federal agency, 
rather than the extramural budget of the Federal 
agency; and 
(D) determine the portion of the extramural 
research or research and development budget of a 
Federal agency that each Federal agency spends 
for administrative purposes relating to the SBIR 
program or STTR program, and for what spe-
cific purposes, including the portion, if any, of 
such budget the Federal agency spends for sala-
ries and expenses, travel to visit applicants, out-
reach events, marketing, and technical assist-
ance; and 
(2) submit a report to the Committee on Small 
Business and Entrepreneurship of the Senate and the 
Committee on Small Business of the House of Rep-
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† HR 1540 EAS 
resentatives regarding the audit conducted under 
paragraph (1), including the assessments required 
under subparagraphs (B) and (C), and the deter-
mination made under subparagraph (D) of para-
graph (1). 
(b) DEFINITION OF APPLICABLE PERIOD.—In this sec-
tion, the term ‘‘applicable period’’ means— 
(1) for the first report submitted under this sec-
tion, the period beginning on October 1, 2005, and 
ending on September 30 of the last full fiscal year be-
fore the date of enactment of this Act for which infor-
mation 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 fiscal 
year after the end of the most recent full fiscal 
year relating to which a report under this sec-
tion was submitted; and 
(B) ending on September 30 of the last full 
fiscal year before the date of the report. 
SEC. 5307. 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:
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† HR 1540 EAS 
‘‘(e) EXTENSIONS AND ENHANCEMENTS OF AUTHOR-
ITY.— 
‘‘(1) IN
GENERAL.—Not later than 6 months 
after the date of enactment of the SBIR/STTR Reau-
thorization Act of 2011, the head of each agency de-
scribed in subsection (a), in consultation with the 
Small Business Administration, shall cooperatively 
enter into an agreement with the National Academy 
of Sciences for the National Research Council to, not 
later than 4 years after the date of enactment of the 
SBIR/STTR Reauthorization 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 government 
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 program to 
fraud, waste, and abuse, particularly with 
respect to Federal agencies funding duplica-
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† HR 1540 EAS 
tive proposals and business concerns fal-
sifying information in proposals; 
‘‘(B) make recommendations with respect to 
the issues described in subparagraph (A)(ii) and 
subparagraphs (A), (D), and (E) of subsection 
(a)(2); and 
‘‘(C) estimate, to the extent practicable, the 
number of jobs created by the SBIR program or 
STTR program of the agency. 
‘‘(2) 
CONSULTATION.—An 
agreement 
under 
paragraph (1) shall require the National Research 
Council to ensure there is participation by and con-
sultation with the small business community, the Ad-
ministration, and other interested parties as described 
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 SBIR/STTR Reau-
thorization Act of 2011, and every 4 years thereafter, 
the National Research Council shall submit to the 
head of the agency entering into the agreement, the 
Committee on Small Business and Entrepreneurship 
of the Senate, and the Committee on Small Business 
of the House of Representatives a report regarding the
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† HR 1540 EAS 
study conducted under paragraph (1) and containing 
the recommendations described in paragraph (1).’’. 
SEC. 5308. TECHNOLOGY INSERTION REPORTING REQUIRE-
MENTS. 
Section 9 of the Small Business Act (15 U.S.C. 638), 
as amended by this Act, is amended by adding at the end 
the following: 
‘‘(ii) PHASE III REPORTING.—The annual SBIR or 
STTR report to Congress by the Administration under sub-
section (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 making 
the Phase III award; 
‘‘(2) the name of the small business concern or 
individual receiving the Phase III award; and 
‘‘(3) the dollar amount of the Phase III award.’’. 
SEC. 5309. INTELLECTUAL PROPERTY PROTECTIONS. 
(a) IN GENERAL.—The Comptroller General of the 
United States shall conduct a study of the SBIR program 
to assess whether— 
(1) Federal agencies comply with the data rights 
protections for SBIR awardees and the technologies of 
SBIR awardees under section 9 of the Small Business 
Act (15 U.S.C. 638);
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† HR 1540 EAS 
(2) the laws and policy directives intended to 
clarify the scope of data rights, including in proto-
types and mentor-prote´ge´ relationships and agree-
ments with Federal laboratories, are sufficient to pro-
tect SBIR awardees; and 
(3) there is an effective grievance tracking proc-
ess for SBIR awardees who have grievances against 
a Federal agency regarding data rights and a process 
for resolving those grievances. 
(b) REPORT.—Not later than 18 months after the date 
of enactment of this Act, the Comptroller General shall sub-
mit to the Committee on Small Business and Entrepreneur-
ship of the Senate and the Committee on Small Business 
of the House of Representatives a report regarding the study 
conducted under subsection (a). 
SEC. 5310. 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 amended by adding at the end 
the following: 
‘‘(jj) CONSENT TO RELEASE CONTACT INFORMATION 
TO ORGANIZATIONS.—
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† HR 1540 EAS 
‘‘(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-
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 orga-
nizations 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 establish 
rules to implement this subsection. The rules shall in-
clude a requirement that a Federal agency include in 
the SBIR and STTR application a provision through 
which the applicant can indicate consent for purposes 
of paragraph (1).’’. 
SEC. 5311. 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 amended by 
adding at the end the following:
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† HR 1540 EAS 
‘‘(kk) ASSISTANCE FOR ADMINISTRATIVE, OVERSIGHT, 
AND CONTRACT PROCESSING COSTS.— 
‘‘(1) IN GENERAL.—Subject to paragraph (2), for 
the 3 full fiscal years beginning after the date of en-
actment of this subsection, the Administrator shall 
allow each Federal agency required to conduct an 
SBIR program to use not more than 3 percent of the 
funds allocated to the SBIR program of the Federal 
agency for— 
‘‘(A) the administration of the SBIR pro-
gram or the STTR program of the Federal agen-
cy; 
‘‘(B) the provision of outreach and technical 
assistance relating to the SBIR program or 
STTR program of the Federal agency, including 
technical assistance site visits and personnel 
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
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† HR 1540 EAS 
in section 313(a)(1)(B)(ii) of the SBIR/STTR 
Reauthorization Act of 2011; 
‘‘(F) targeted reviews of recipients of 
awards under the SBIR program or STTR pro-
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 (cc); 
‘‘(I) carrying out subsection (ff); 
‘‘(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 agen-
cy may not use funds as authorized under paragraph 
(1) until after the effective date of performance cri-
teria, which the Administrator shall establish, to 
measure any benefits of using funds as authorized
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† HR 1540 EAS 
under paragraph (1) and to assess continuation of the 
authority under paragraph (1). 
‘‘(3) RULES.—Not later than 180 days after the 
date of enactment of this subsection, the Adminis-
trator shall issue rules to carry out this subsection.’’. 
(b) TECHNICAL AND CONFORMING AMENDMENTS.— 
(1) IN GENERAL.—Section 9 of the Small Busi-
ness Act (15 U.S.C. 638) is amended— 
(A) in subsection (f)(2)(A), as so designated 
by section 5103(2) of this Act, 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), as amended by section 
203— 
(i) by striking paragraph (4); 
(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)(A) 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
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† HR 1540 EAS 
performance criteria established by the Administrator 
under subsection (kk)(2) of section 9 of the Small 
Business Act, as added by subsection (a). 
(3) PROSPECTIVE REPEAL.—Effective on the first 
day of the fourth full fiscal year following the date of 
enactment of this Act, section 9 of the Small Business 
Act (15 U.S.C. 638), as amended by paragraph (1) of 
this section, is amended— 
(A) in subsection (f)(2)(A), by striking 
‘‘shall not make available for the purpose’’ and 
inserting the following: ‘‘shall not— 
‘‘(i) use any of its SBIR budget estab-
lished pursuant to paragraph (1) for the 
purpose of funding administrative costs of 
the program, including costs associated with 
salaries and expenses; or 
‘‘(ii) 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.—
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† HR 1540 EAS 
‘‘(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 Depart-
ment of Defense or the military department pur-
suant to the Small Business Innovation Research 
Program for payment of expenses incurred to ad-
minister 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. 5312. GAO STUDY WITH RESPECT TO VENTURE CAP-
ITAL OPERATING COMPANY INVOLVEMENT. 
Not later than 3 years after the date of enactment of 
this Act, and every 3 years thereafter, the Comptroller Gen-
eral of the United States shall— 
(1) conduct a study of the impact of require-
ments relating to venture capital operating company 
involvement under section 9(cc) of the Small Business 
Act, as added by section 5108 of this Act; and
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† HR 1540 EAS 
(2) submit to Congress a report regarding the 
study conducted under paragraph (1). 
SEC. 5313. 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 pro-
gram. 
(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 partici-
pates in the SBIR program or the STTR 
program cooperate to— 
(I) establish fraud detection indi-
cators;
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† HR 1540 EAS 
(II) review regulations and oper-
ating procedures of the Federal agen-
cies; 
(III) coordinate information shar-
ing 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)—
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† HR 1540 EAS 
(I) on the Web site of the Federal 
agency; and 
(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 hotline 
established under subparagraph (A) on the Web 
site of the Administration. 
(b) STUDY AND REPORT.— 
(1) STUDY.—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— 
(A) conduct a study that evaluates— 
(i) the implementation by each Federal 
agency that participates in the SBIR pro-
gram or the STTR program of the amend-
ments to the SBIR Policy Directive and the
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† HR 1540 EAS 
STTR Policy Directive made pursuant to 
subsection (a); 
(ii) 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; 
(iii) the effectiveness of the risk man-
agement strategies of each Federal agency 
that participates in the SBIR program or 
STTR program in identifying areas of the 
SBIR program or the STTR program that 
are at high risk for fraud; 
(iv) 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; 
(v) 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 program of the Federal agency; and 
(vi) the extent to which the Inspector 
General of each Federal agency that partici-
pates in the SBIR program or STTR pro-
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† HR 1540 EAS 
gram effectively conducts investigations of 
individuals alleged to have submitted false 
claims or violated Federal law relating to 
fraud, conflicts of interest, bribery, gratuity, 
or other misconduct; and 
(B) submit to the Committee on Small 
Business and Entrepreneurship of the Senate, 
the Committee on Small Business of the House 
of Representatives, and the head of each Federal 
agency that participates in the SBIR program 
or STTR program a report on the results of the 
study conducted under subparagraph (A). 
SEC. 5314. INTERAGENCY POLICY COMMITTEE. 
(a) ESTABLISHMENT.—The Director of the Office of 
Science and Technology Policy (in this section referred to 
as the ‘‘Director’’), in conjunction with the Administrator, 
shall establish an Interagency SBIR/STTR Policy Com-
mittee (in this section referred to as the ‘‘Committee’’) com-
prised of 1 representative from each Federal agency with 
an SBIR program or an STTR program and 1 representa-
tive of the Office of Management and Budget. 
(b) COCHAIRPERSONS.—The Director and the Admin-
istrator shall serve as cochairpersons of the Committee. 
(c) DUTIES.—The Committee shall review, and make 
policy recommendations on ways to improve the effective-
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ness and efficiency of, the SBIR program and the STTR 
program, including— 
(1) reviewing the effectiveness of the public and 
government databases described in section 9(k) of the 
Small Business Act (15 U.S.C. 638(k)); 
(2) identifying— 
(A) best practices for commercialization as-
sistance by Federal agencies that have signifi-
cant potential to be employed by other Federal 
agencies; and 
(B) proposals by Federal agencies for ini-
tiatives to address challenges for small business 
concerns in obtaining funding after a Phase II 
award ends and before commercialization; and 
(3) developing and incorporating a standard 
evaluation framework to enable systematic assessment 
of the SBIR program and STTR program, including 
through improved tracking of awards and outcomes 
and development of performance measures for the 
SBIR program and STTR program of each Federal 
agency. 
(d) REPORTS.—The Committee shall submit to the 
Committee on Small Business and Entrepreneurship of the 
Senate and the Committee on Science and Technology and
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the Committee on Small Business of the House of Represent-
atives— 
(1) a report on the review by and recommenda-
tions of the Committee under subsection (c)(1) not 
later than 1 year after the date of enactment of this 
Act; 
(2) a report on the review by and recommenda-
tions of the Committee under subsection (c)(2) not 
later than 18 months after the date of enactment of 
this Act; and 
(3) a report on the review by and recommenda-
tions of the Committee under subsection (c)(3) not 
later than 2 years after the date of enactment of this 
Act. 
SEC. 5315. 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
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(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-
riod of public comment, the Administrator shall issue 
regulations or guidelines, taking into consideration 
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, con-
tracting, 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 requirements) 
to reduce the paperwork and regulatory compliance 
burden on small business concerns applying to and 
participating in the SBIR program or STTR pro-
gram.’’. 
TITLE LIV—POLICY DIRECTIVES 
SEC. 5401. 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
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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 this 
Act, the Administrator shall publish the amended SBIR 
Policy Directive and the amended STTR Policy Directive 
in the Federal Register. 
TITLE LV—OTHER PROVISIONS 
SEC. 5501. RESEARCH TOPICS AND PROGRAM DIVERSIFICA-
TION. 
(a) SBIR PROGRAM.—Section 9(g) of the Small Busi-
ness Act (15 U.S.C. 638(g)) is amended— 
(1) in paragraph (3)— 
(A) in the matter preceding subparagraph 
(A), by striking ‘‘broad research topics and to 
topics that further 1 or more critical tech-
nologies’’ and inserting ‘‘applications to the Fed-
eral agency for support of projects relating to 
nanotechnology, rare diseases, security, energy, 
transportation, or improving the security and 
quality of the water supply of the United States, 
and the efficiency of water delivery systems and 
usage patterns in the United States (including 
the territories of the United States) through the
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use of technology (to the extent that the projects 
relate to the mission of the Federal agency), 
broad research topics, and topics that further 1 
or more critical technologies or research prior-
ities’’; 
(B) in subparagraph (A), by striking ‘‘or’’ 
at the end; and 
(C) by adding at the end the following: 
‘‘(C) the National Academy of Sciences, in 
the final report issued by the ‘America’s Energy 
Future: Technology Opportunities, Risks, and 
Tradeoffs’ project, and in any subsequent report 
by the National Academy of Sciences on sustain-
ability, energy, or alternative fuels; 
‘‘(D) the National Institutes of Health, in 
the annual report on the rare diseases research 
activities of the National Institutes of Health for 
fiscal year 2005, and in any subsequent report 
by the National Institutes of Health on rare dis-
eases research activities; 
‘‘(E) the National Academy of Sciences, in 
the final report issued by the ‘Transit Research 
and Development: Federal Role in the National 
Program’ project and the report entitled ‘Trans-
portation Research, Development and Technology
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Strategic Plan (2006–2010)’ issued by the Re-
search and Innovative Technology Administra-
tion of the Department of Transportation, and 
in any subsequent report issued by the National 
Academy of Sciences or the Department of 
Transportation on transportation and infra-
structure; or 
‘‘(F) the national nanotechnology strategic 
plan required under section 2(c)(4) of the 21st 
Century Nanotechnology Research and Develop-
ment Act (15 U.S.C. 7501(c)(4)) and in any re-
port issued by the National Science and Tech-
nology Council Committee on Technology that fo-
cuses on areas of nanotechnology identified in 
such plan;’’; and 
(2) by adding after paragraph (12), as added by 
section 5111(a) of this Act, the following: 
‘‘(13) encourage applications under the SBIR 
program (to the extent that the projects relate to the 
mission of the Federal agency)— 
‘‘(A) from small business concerns in geo-
graphic areas underrepresented in the SBIR pro-
gram or located in rural areas (as defined in 
section 1393(a)(2) of the Internal Revenue Code 
of 1986);
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‘‘(B) small business concerns owned and 
controlled by women; 
‘‘(C) small business concerns owned and 
controlled by veterans; 
‘‘(D) small business concerns owned and 
controlled by Native Americans; and 
‘‘(E) small business concerns located in a 
geographic area with an unemployment rates 
that exceed the national unemployment rate, 
based on the most recently available monthly 
publications of the Bureau of Labor Statistics of 
the Department of Labor.’’. 
(b) STTR PROGRAM.—Section 9(o) of the Small Busi-
ness Act (15 U.S.C. 638(o)), as amended by section 5111(b) 
of this Act, is amended— 
(1) in paragraph (3)— 
(A) in the matter preceding subparagraph 
(A), by striking ‘‘broad research topics and to 
topics that further 1 or more critical tech-
nologies’’ and inserting ‘‘applications to the Fed-
eral agency for support of projects relating to 
nanotechnology, security, energy, rare diseases, 
transportation, or improving the security and 
quality of the water supply of the United States 
(to the extent that the projects relate to the mis-
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sion of the Federal agency), broad research top-
ics, and topics that further 1 or more critical 
technologies or research priorities’’; 
(B) in subparagraph (A), by striking ‘‘or’’ 
at the end; and 
(C) by adding at the end the following: 
‘‘(C) the National Academy of Sciences, in 
the final report issued by the ‘America’s Energy 
Future: Technology Opportunities, Risks, and 
Tradeoffs’ project, and in any subsequent report 
by the National Academy of Sciences on sustain-
ability, energy, or alternative fuels; 
‘‘(D) the National Institutes of Health, in 
the annual report on the rare diseases research 
activities of the National Institutes of Health for 
fiscal year 2005, and in any subsequent report 
by the National Institutes of Health on rare dis-
eases research activities; 
‘‘(E) the National Academy of Sciences, in 
the final report issued by the ‘Transit Research 
and Development: Federal Role in the National 
Program’ project and the report entitled ‘Trans-
portation Research, Development and Technology 
Strategic Plan (2006–2010)’ issued by the Re-
search and Innovative Technology Administra-
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tion of the Department of Transportation, and 
in any subsequent report issued by the National 
Academy of Sciences or the Department of 
Transportation on transportation and infra-
structure; or 
‘‘(F) the national nanotechnology strategic 
plan required under section 2(c)(4) of the 21st 
Century Nanotechnology Research and Develop-
ment Act (15 U.S.C. 7501(c)(4)) and in any re-
port issued by the National Science and Tech-
nology Council Committee on Technology that fo-
cuses on areas of nanotechnology identified in 
such plan;’’; 
(2) in paragraph (15), by striking ‘‘and’’ at the 
end; 
(3) in paragraph (16), by striking the period at 
the end and inserting ‘‘; and’’; and 
(4) by adding at the end the following: 
‘‘(17) encourage applications under the STTR 
program (to the extent that the projects relate to the 
mission of the Federal agency)— 
‘‘(A) from small business concerns in geo-
graphic areas underrepresented in the STTR 
program or located in rural areas (as defined in
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section 1393(a)(2) of the Internal Revenue Code 
of 1986); 
‘‘(B) small business concerns owned and 
controlled by women; 
‘‘(C) small business concerns owned and 
controlled by veterans; 
‘‘(D) small business concerns owned and 
controlled by Native Americans; and 
‘‘(E) small business concerns located in a 
geographic area with an unemployment rates 
that exceed the national unemployment rate, 
based on the most recently available monthly 
publications of the Bureau of Labor Statistics of 
the Department of Labor.’’. 
(c) RESEARCH AND DEVELOPMENT FOCUS.—Section 
9(x) of the Small Business Act (15 U.S.C. 638(x)) is amend-
ed— 
(1) by striking paragraph (2); and 
(2) by redesignating paragraph (3) as para-
graph (2). 
SEC. 5502. 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 amended by adding at the end 
the following:
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‘‘(ll) ANNUAL REPORT ON SBIR AND STTR PROGRAM 
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 program 
and the STTR program of the Federal agency that— 
‘‘(A) are science-based and statistically 
driven; 
‘‘(B) reflect the mission of the Federal agen-
cy; and 
‘‘(C) include factors relating to the economic 
impact of the programs. 
‘‘(2) EVALUATION.—The head of each Federal 
agency described in paragraph (1) shall conduct an 
annual evaluation using the metrics developed under 
paragraph (1) of— 
‘‘(A) the SBIR program and the STTR pro-
gram of the Federal agency; and 
‘‘(B) the benefits to the people of the United 
States of the SBIR program and the STTR pro-
gram of the Federal agency. 
‘‘(3) REPORT.—
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‘‘(A) IN GENERAL.—The head of each Fed-
eral agency described in paragraph (1) shall sub-
mit to the appropriate committees of Congress 
and the Administrator an annual report describ-
ing in detail the results of an evaluation con-
ducted 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 
‘‘(ii) the Committee on Small Business 
and the Committee on Science and Tech-
nology of the House of Representatives.’’. 
SEC. 5503. 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 amended by adding at the end 
the following:
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‘‘(mm) 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 competi-
tive and merit-based selection procedures.’’. 
Attest: 
Secretary.