Small Business Innovation Research and Small Business Technology Transfer Improvements Act of 2021.
Bill: H.R.4033 | Sponsor: Rep. Baird, James R. (R-IN)
Policy area: Commerce

Summary:
Small Business Innovation Research and Small Business Technology Transfer Improvements Act of 2021
This bill modifies the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs administered by the Small Business Administration (SBA).
Specifically, the bill requires the Department of Defense to report on the goals and incentives used to increase awards of SBIR and STTR contracts. It also prioritizes innovation in manufacturing and cybersecurity and directs federal agencies to issue Phase III awards to technology developers without requiring further competition.
Further, the bill makes permanent (as the Civilian Agency Commercialization Readiness Program) the pilot program that a covered agency may establish for awarding SBIR and STTR Phase II and III funds for technology development and progression toward commercialization. The bill also extends the Commercialization Assistance Pilot Program though FY2026.
The bill authorizes specified agencies to use a percentage of STTR funds for a Proof of Concept Partnership program to accelerate the creation of small businesses and the commercialization of research innovations. It also authorizes all agencies participating in the SBIR program, during FY2022-FY2026, to provide a SBIR Phase II award for a project to a small business concern without regard to whether such concern was provided a Phase I award for such project.
The bill requires the SBA to conduct outreach efforts at minority institutions and Hispanic-serving institutions.


To amend the Small Business Act to improve the Small Business 
  Innovation Research program and Small Business Technology Transfer 
                    program, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Small Business 
Innovation Research and Small Business Technology Transfer Improvements 
Act of 2021.''
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Requiring insertion incentives.
Sec. 3. Additional SBIR and STTR technology insertion reporting 
                            requirement.
Sec. 4. Encouraging innovation in United States manufacturing.
Sec. 5. Encouraging innovation in cybersecurity.
Sec. 6. Compliance of Phase III awards with competitive procedures.
Sec. 7. Increased outreach requirements.
Sec. 8. Annual meeting.
Sec. 9. Establishing the Civilian Agency Commercialization Readiness 
                            Program.
Sec. 10. Phase 0 Proof of Concept Partnership Program.
Sec. 11. Reporting requirements.
Sec. 12. SBIR phase flexibility.
Sec. 13. Amendments to administrative fee assistance.
Sec. 14. Amendments to technical and business assistance.
Sec. 15. Extension of commercialization extension pilot.
Sec. 16. Short-form application.

SEC. 2. REQUIRING INSERTION INCENTIVES.

    Section 9(y)(5) of the Small Business Act (15 U.S.C. 638(y)(5)) is 
amended by striking ``is authorized to'' and inserting ``shall''.

SEC. 3. ADDITIONAL SBIR AND STTR TECHNOLOGY INSERTION REPORTING 
              REQUIREMENT.

    Section 9(y)(6) of the Small Business Act (15 U.S.C. 638(y)(6)) is 
amended--
            (1) in subparagraph (B), by striking ``and'' at the end;
            (2) in subparagraph (C)(iii), by striking the period at the 
        end and inserting ``; and''; and
            (3) by adding at the end the following new subparagraph:
                    ``(D) not later than 120 days after the date of the 
                enactment of this subparagraph, and not later than 
                December 31 of each year thereafter, submit to the 
                Committee on Science, Space, and Technology and the 
                Committee on Small Business of the House of 
                Representatives, and to the Committee on Small Business 
                and Entrepreneurship of the Senate, a report describing 
                the goals set under subparagraph (A) and the incentives 
                used or created under subparagraph (B).''.

SEC. 4. ENCOURAGING INNOVATION IN UNITED STATES MANUFACTURING.

    Section 9 of the Small Business Act (15 U.S.C. 638) is amended by 
adding at the end the following new subsection:
    ``(vv) Encouraging Innovation in United States Manufacturing.--In 
carrying out this section, the Administrator shall--
            ``(1) ensure that, in selecting small business concerns to 
        participate in SBIR or STTR programs under this section, 
        Federal agencies give high priority to small manufacturing 
        companies and other small business concerns engaged in or 
        planning to engage in manufacturing research and development 
        for the purpose of developing and producing new products and 
        technologies in the United States; and
            ``(2) include in the annual report to Congress under 
        subsection (b)(7) a determination of whether the priority 
        described in paragraph (1) is being carried out.''.

SEC. 5. ENCOURAGING INNOVATION IN CYBERSECURITY.

    Section 9 of the Small Business Act (15 U.S.C. 638), as amended by 
section 4, is further amended by adding at the end the following new 
subsection:
    ``(ww) Encouraging Innovation in Cybersecurity.--In carrying out 
this section, the Administrator shall--
            ``(1) ensure that, in selecting small business concerns to 
        participate in SBIR or STTR programs under this section, 
        Federal agencies engaged in cybersecurity research give high 
        priority to small business concerns that are engaged in 
        cybersecurity research and development, for the purpose of 
        developing and implementing technology services and products to 
        strengthen the security of United States Government and private 
        computer systems, including software, hardware, and portable 
        devices; and
            ``(2) include in the annual report to Congress under 
        subsection (b)(7) a determination of whether the priority 
        described in paragraph (1) is being carried out.''.

SEC. 6. COMPLIANCE OF PHASE III AWARDS WITH COMPETITIVE PROCEDURES.

    Section 9(r)(4) of the Small Business Act (15 U.S.C. 638(r)(4)) is 
amended by inserting as ``direct follow-on awards issued without 
further competition'' after ``developed the technology''.

SEC. 7. INCREASED OUTREACH REQUIREMENTS.

    (a) In General.--
            (1) SBIR amendment.--Section 9(j) of the Small Business Act 
        (15 U.S.C. 638(j)), as amended by section 8, is further amended 
        by adding at the end the following new paragraph:
            ``(5) Increased outreach requirements.--Upon the enactment 
        of this paragraph, the Administrator shall modify the policy 
        directives issued pursuant to this subsection to require 
        outreach efforts to increase the participation in technological 
        innovation under the SBIR programs among individuals conducting 
        research at minority institutions (as defined in section 365(3) 
        of the Higher Education Act of 1965) and Hispanic-serving 
        institutions (as defined in section 502(a)(5) of such Act).''.
            (2) STTR amendment.--Section 9(p)(2) of the Small Business 
        Act (15 U.S.C. 638(p)(2)), as amended by section 8, is further 
        amended by adding at the end the following new subparagraph:
                    ``(H) procedures for outreach efforts to increase 
                the participation in technological innovation under the 
                SBIR programs among individuals conducting research at 
                minority institutions (as defined in section 365(3) of 
                the Higher Education Act of 1965) and Hispanic-serving 
                institutions (as defined in section 502(a)(5) of such 
                Act).''.
    (b) Funding for Outreach.--Section 9(mm)(1) of the Small Business 
Act (15 U.S.C. 638(mm)(1)) is amended--
            (1) in subparagraph (J), by striking the ``and'' at the 
        end;
            (2) in subparagraph (K), by striking the period at the end 
        and inserting a semicolon; and
            (3) by adding at the end the following new subparagraph:
                    ``(L) the outreach efforts described under 
                subsections (j)(4) and (p)(2)(G); and''.

SEC. 8. ANNUAL MEETING.

    (a) In General.--Section 9 of the Small Business Act (15 U.S.C. 
638), as amended by section 5, is further amended by adding at the end 
the following new subsection:
    ``(xx) Annual Meeting.--
            ``(1) In general.--The head of each Federal agency required 
        to have a program under this section (or a designee) and the 
        Administrator (or a designee) shall meet annually to discuss 
        methods--
                    ``(A) to improve the collection of data under this 
                section;
                    ``(B) to improve the reporting of data to the 
                Administrator under this section;
                    ``(C) to make the application processes for 
                programs under this section more efficient; and
                    ``(D) to increase participation in the programs 
                established under this section.
            ``(2) Report.--Not later than 60 days after the date on 
        which an annual meeting required under paragraph (1) is held, 
        the Administrator shall submit to the Committee on Small 
        Business and Entrepreneurship of the Senate and the Committee 
        on Small Business and the Committee on Science, Space, and 
        Technology of the House of Representatives, a report on the 
        findings of such meeting and recommendations on how to 
        implement changes to programs under this section.''.
    (b) Funding for Annual Meeting.--Section 9(mm)(1) of the Small 
Business Act (15 U.S.C. 638(mm)(1)) as amended by section 9, is further 
amended by adding at the end the following new subparagraph:
                    ``(M) the annual meeting required under subsection 
                (xx).''.

SEC. 9. ESTABLISHING THE CIVILIAN AGENCY COMMERCIALIZATION READINESS 
              PROGRAM.

    Section 9(gg) of the Small Business Act (15 U.S.C. 638(gg)) is 
amended--
            (1) by amending the subsection heading to read as follows: 
        ``Civilian Agency Commercialization Readiness Program'';
            (2) in paragraph (1), by inserting ``to establish a 
        Civilian Agency Commercialization Readiness Program for 
        civilian agencies'' after ``the covered Federal agency'';
            (3) in paragraph (2)(A)--
                    (A) by striking ``establish a pilot program'' and 
                inserting ``establish a Civilian Agency 
                Commercialization Readiness Program under this 
                subsection''; and
                    (B) by striking ``the pilot program'' and inserting 
                ``such Civilian Agency Commercialization Readiness 
                Program'';
            (4) in paragraphs (3) and (4), by striking ``a pilot 
        program'' each place such term appears and inserting ``a 
        Civilian Agency Commercialization Readiness Program'';
            (5) in paragraph (6), by striking ``the pilot program'' and 
        inserting ``a Civilian Agency Commercialization Readiness 
        Program'';
            (6) by striking paragraph (7) and redesignating paragraph 
        (8) as paragraph (7); and
            (7) in paragraph (7) (as so redesignated), by amending 
        subparagraph (B) to read as follows:
                    ``(B) the term `Civilian Agency Commercialization 
                Readiness Program' means each program established under 
                paragraph (1).''.

SEC. 10. PHASE 0 PROOF OF CONCEPT PARTNERSHIP PROGRAM.

    Section 9(jj) of the Small Business Act (15 U.S.C. 638(jj) is 
amended--
            (1) in the subsection heading, strike ``Pilot'';
            (2) in paragraph (1)--
                    (A) by striking ``The Director of the National 
                Institutes of Health'' and inserting ``Each covered 
                agency head'';
                    (B) by striking ``pilot''; and
                    (C) by striking ``the Director'' and inserting 
                ``each covered agency head'';
            (3) in paragraph (2)--
                    (A) in subparagraph (C), by striking ``in the 
                National Institutes of Health's STTR program'' and 
                inserting ``in the STTR program of any agency described 
                in section (n)''; and
                    (B) by adding at the end the following:
                    ``(D) the term `covered agency head' means the 
                Director of the National Institutes of Health, the 
                Director of the National Science Foundation, the 
                Administrator of the National Aeronautics and Space 
                Administration and the Secretary of Energy;
                    ``(E) the term `Phase 0 program' refers to the 
                Proof of Concept Partnerships program; and
                    ``(F) the terms `qualifying institution' and 
                `institution' means a university or other research 
                institution that participates in the STTR program of 
                the National Institutes of Health, National Science 
                Foundation, National Aeronautics and Atmospheric 
                Administration, Department of Energy, or Department of 
                Defense.'';
            (4) in paragraph (3) by adding ``entrepreneurial training'' 
        after ``market research'';
            (5) in paragraph (4)--
                    (A) in subparagraph (A), by striking ``The 
                Director'' and inserting ``Each covered agency head''; 
                and
                    (B) in subparagraph (B), by striking ``In 
                determining'' and all that follows through ``qualifying 
                institutions--'' and inserting the following: ``In 
                determining which qualifying institutions receive Phase 
                0 Program grants, each covered agency head shall 
                consider, in addition to any other criteria such 
                covered agency head determines necessary, the extent to 
                which the qualifying institutions--'';
            (6) in paragraph (6), in the matter preceding (A), by 
        striking ``The Director'' and inserting ``Each covered agency 
        head'' and by striking ``pilot program'' and inserting ``Phase 
        0 program''; and
            (7) by striking paragraph (7).

SEC. 11. REPORTING REQUIREMENTS.

    (a) Annual Report to Congress.--Section 9(b)(7) of the Small 
Business Act (15 U.S.C. 638(b)(7)) is amended by striking ``to report 
not less than annually'' and inserting ``to submit a report not later 
than December 31 of each year''.
    (b) Annual Report to SBA and the Office of Science and Technology 
Policy.--Section 9(g)(9) of the Small Business Act (15 U.S.C. 
638(g)(9)) is amended--
            (1) by striking ``make an annual report'' and inserting 
        ``not later than March 30 of each year, submit a report''; and
            (2) by striking ``and the Office of Science and Technology 
        Policy'' and inserting ``, the Office of Science and Technology 
        Policy, the Committee on Science, Space, and Technology and the 
        Committee on Small Business of the House of Representatives, 
        and the Committee on Small Business and Entrepreneurship of the 
        Senate''.

SEC. 12. SBIR PHASE FLEXIBILITY.

    Section 9(cc) of the Small Business Act (15 U.S.C. 638(cc)) is 
amended by striking ``During fiscal years'' and all that follows 
through ``may each provide'' and inserting ``During fiscal years 2022 
through 2026 all agencies participating in the SBIR program may 
provide''.

SEC. 13. AMENDMENTS TO ADMINISTRATIVE FEE ASSISTANCE.

    Section 9(mm) of the Small Business Act (15 U.S.C. 638(mm)) is 
amended--
            (1) in paragraph (1), by striking ``and until September 30, 
        2022''; and
            (2) in paragraph (2), after ``(j)(2)(F)'' add ``and 
        (j)(5)'' as required under this Act.

SEC. 14. AMENDMENTS TO TECHNICAL AND BUSINESS ASSISTANCE.

    Section 9(q) of the Small Business Act (15 U.S.C. 638(q)) is 
amended--
            (1) in the header, by striking ``technical and business 
        assistance'' and inserting ``Application, Technical, and 
        Business Assistance'';
            (2) in paragraph (2), by adding at the end the following:
                    ``(C) Guidance.--The Administrator shall establish 
                guidelines and metrics for the selection of vendors for 
                the purposes of this subsection, which shall include at 
                a minimum guidance on selecting vendors with 
                demonstrated experience and success in--
                            ``(i) working with small business concerns 
                        focused on research and development of advanced 
                        and emerging technologies;
                            ``(ii) federal acquisition and procurement 
                        processes and regulations; and
                            ``(iii) commercializing federally funded 
                        research and development.''; and
            (3) in paragraph (3)--
                    (A) in subparagraph (C), by adding ``subject to the 
                guidance provided by the Administrator under paragraph 
                (2)(C)'' after ``commercializing technology'';
                    (B) in subparagraph (D)--
                            (i) in clause (i), by striking ``; or'' and 
                        inserting a semicolon;
                            (ii) in clause (ii), by striking the period 
                        at the end and inserting ``; or''; and
                            (iii) by adding at the end the following:
                            ``(iii) use the amounts authorized under 
                        subparagraph (A) or (B) to increase the amount 
                        of an award for carrying out additional 
                        research or development.'';
                    (C) by inserting after paragraph (3) the following 
                new paragraph:
            ``(4) Application assistance.--
                    ``(A) In general.--Each Federal agency required by 
                this section to conduct an SBIR program or STTR program 
                may establish an Application Assistance Program to 
                provide small business concerns applying to SBIR or 
                STTR with application assistance.
                    ``(B) Purpose.--The purpose of this program is to 
                assist small businesses to better understand the 
                technical aspects of the application process and to 
                develop a more competitive application.
                    ``(C) Requirements.--Each agency under subparagraph 
                (A) may provide the assistance under this paragraph or 
                enter into an agreement with 1 or more vendors selected 
                under subparagraph (G).
                    ``(D) Eligibility.--To be eligible for assistance 
                under this program a small business concern must--
                            ``(i) be a first-time applicant for an SBIR 
                        or STTR award from that agency and have not 
                        been a previous recipient of an SBIR or STTR 
                        award from any other agency; and
                            ``(ii) be selected to proceed in the 
                        application process after the short-form 
                        application requirements under section 9(g)(2) 
                        have been completed.
                    ``(E) Broadening participation.--The Administrator 
                shall encourage businesses described under section 
                (j)(2)(F) to apply for assistance under the program 
                established in this paragraph.
                    ``(F) Activities.--The program shall provide Phase 
                1 proposal preparation, review, and registration 
                assistance to small business concerns selected to 
                proceed in the application process after the short-form 
                application requirements under section 9(g)(2) have 
                been completed.
                    ``(G) Vendor selection.--If the agency selects 1 or 
                more vendors to provide the assistance under this 
                program, it shall be a competitive, merit-based process 
                for a term not to exceed 5 years and the vendor shall 
                have demonstrated expertise in writing successful 
                Federally funded technology development proposals.
                    ``(H) Payment for services.--There shall be no fee 
                assessed to small business concerns receiving services 
                under this program.
                    ``(I) Funding.--Each Federal agency that 
                establishes an Application Assistance program may use 
                funds allocated under section 9(mm).''; and
                    (D) by redesignating paragraph (4) as paragraph 
                (5).

SEC. 15. EXTENSION OF COMMERCIALIZATION EXTENSION PILOT.

    Section 9(uu)(3) of the Small Business Act (15 U.S.C. 638(uu)) is 
amended by striking ``2022'' and inserting ``2026''.

SEC. 16. SHORT-FORM APPLICATION.

    Section 9(g) of the Small Business Act (15 U.S.C. 638(g)) is 
amended by--
            (1) by striking ``Each Federal agency'' and inserting ``(1) 
        Each Federal agency'';
            (2) by redesignating paragraphs (1) through (12) as 
        subparagraphs (A) through (L), respectively;
            (3) in subparagraph (C), as so redesignated, by 
        redesignating subparagraphs (A) and (B) as clauses (i) and 
        (ii), respectively;
            (4) in subparagraph (D), as so redesignated--
                    (A) by redesignating subparagraphs (A) and (B) as 
                clauses (i) and (ii), respectively;
                    (B) in clause (ii), as so redesignated, by 
                redesignating clauses (i) and (ii) as subclauses (I) 
                and (II), respectively; and
                    (C) in subclause (II), as so redesignated, by 
                striking ``clause (i)'' and inserting ``subclause 
                (I)'';
            (5) in subparagraph (H), as so redesignated--
                    (A) by redesignating subparagraphs (A) through (C) 
                as clauses (i) through (iii), respectively;
                    (B) in clause (i), as so redesignated, by 
                redesignating clauses (i) through (vi) as subclauses 
                (I) through (VI), respectively;
                    (C) in subclause (I), as so redesignated, by 
                redesignating subclauses (I) and (II) as items (aa) and 
                (bb), respectively; and
                    (D) in subclause (II), as so redesignated, by 
                redesignating subclauses (I) and (II) as items (aa) and 
                (bb), respectively; and
            (6) by adding at the end a new paragraph (2):
            ``(2) To the extent practicable prior to a more extensive 
        application, implement a short-form application to be received 
        and evaluated, which shall include at a minimum a description 
        of--
                    ``(A) the technology innovation;
                    ``(B) the technical objectives and challenges;
                    ``(C) the market opportunity; and
                    ``(D) the small business concern and key 
                employees.''.
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