119 HR 4777 IH: Investing in National Next-Generation Opportunities for Venture Acceleration and Technological Excellence
U.S. House of Representatives
2025-07-25
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EN
Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
1.Short title; table of contents(a)This Act may be cited as the Investing in National Next-Generation Opportunities for Venture Acceleration and Technological Excellence
or the INNOVATE Act
.(b)The table of contents for this Act is as follows:Sec. 1. Short title; table of contents.Sec. 2. Definitions.Title I—Promoting Transition for Battle-Ready TechnologiesSec. 101. Enhancing small business success in the STTR program.Sec. 102. Phase II strategic breakthrough funding.Sec. 103. Implementation briefings.Sec. 104. Fixed-price contracts.Title II—Encouraging Small Business Innovation in All of AmericaSec. 201. Encouraging new SBIR and STTR entrants.Sec. 202. Combating discriminatory practices in the SBIR and STTR programs.Sec. 203. Disclosures and prohibitions relating to certain agreements with entities engaging in censorship.Sec. 204. Connecting SBIR and STTR awardees and small business investment companies.Sec. 205. Agency outreach to rural communities.Title III—Streamlining Participation in the SBIR and STTR ProgramsSec. 301. Amendments relating to open topics.Sec. 302. Reducing administrative burden.Title IV—Protecting American Innovation From Adversarial InfluenceSec. 401. Definition of foreign risk.Sec. 402. Bolstering research security of SBIR and STTR awards.Sec. 403. Strengthening the due diligence program to assess security risks.Sec. 404. Strengthening agency recovery authority.Sec. 405. Best practices on investor informational rights.Sec. 406. GAO report.Title V—Simplifying SBIR–STTR StandardsSec. 501. Improving direct to Phase II authorities.Sec. 502. Improving SBIR and STTR data collection.Sec. 503. Streamlining program administration.Sec. 504. Extending SBIR and STTR authorization.Title VI—MiscellaneousSec. 601. Technical amendments.Sec. 602. Repeals.Sec. 603. Severability.2.In this Act, the terms Phase I, Phase II, Phase III, SBIR, and STTR have the meanings given those terms in section 9(e) of the Small Business Act (15 U.S.C. 638(e)).<enum>I</enum><header>Promoting Transition for Battle-Ready Technologies</header><section id="H4B7F4D1C573E4FC8A44FEA9FD306D46F"><enum>101.</enum><header>Enhancing small business success in the STTR program</header><text display-inline="no-display-inline">Section 9 of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/638">15 U.S.C. 638 et seq.</external-xref>) is amended—</text><paragraph id="HF17E6024E6C344B8A413FD8A20DCC2BB"><enum>(1)</enum><text>in subsection (e)(7)—</text><subparagraph id="H94F1623336BC4D62A7E5766D3552219D" display-inline="no-display-inline"><enum>(A)</enum><text>by striking <quote>40</quote> and inserting <quote>50</quote>; and</text></subparagraph><subparagraph id="HEE5AC95D5DF04DE0A522676C91C6BEF7"><enum>(B)</enum><text>by striking <quote>30</quote> and inserting <quote>20</quote>;</text></subparagraph></paragraph><paragraph id="H16A82F3143A24E9CA897F9ECCE1FAB3A"><enum>(2)</enum><text>in subsection (f)(1)—</text><subparagraph id="H3D72053EA7634B58BC226A1C3D205515"><enum>(A)</enum><text>in subparagraph (H), by striking <quote>and</quote> at the end;</text></subparagraph><subparagraph id="H68AC5985757C405C9FF0F613C4C179E5"><enum>(B)</enum><text>in subparagraph (I), by striking <quote>and each fiscal year thereafter,</quote> and inserting <quote>; and</quote>; and</text></subparagraph><subparagraph id="H607513983C4249CB9C4989E8CE88F736"><enum>(C)</enum><text>by adding at the end the following:</text><quoted-block id="H8FE9FA2CF81E4183B00BBCF63CAA331C" style="OLC"><subparagraph id="H540B56C53D1E4379A1E6980B8B73855F"><enum>(J)</enum><text>not less than 3.45 percent of such budget in fiscal year 2026 and every year thereafter,</text></subparagraph><after-quoted-block>; and</after-quoted-block></quoted-block></subparagraph></paragraph><paragraph id="HD51F83B9806847CCA2E362D090C4C0ED"><enum>(3)</enum><text>in subsection (n)(1)(B)—</text><subparagraph id="H0069A9B53FF84293BB4CFBD5371F5299" display-inline="no-display-inline"><enum>(A)</enum><text>in clause (iv), by striking <quote>and</quote> at the end;</text></subparagraph><subparagraph id="HA8D165ECEB0149609604A8F6E7B7A793"><enum>(B)</enum><text>in clause (v), by striking <quote>and each fiscal year thereafter.</quote> and inserting <quote>; and</quote>; and</text></subparagraph><subparagraph id="H56EC10481116451DA9328C1619F629D6"><enum>(C)</enum><text>by adding at the end the following:</text><quoted-block style="OLC" id="H9946B7D1227A485EAA0B3E5657900833"><clause id="H7C577C748623473E93FFF8D93016FCA9"><enum>(vi)</enum><text>not less than 0.20 percent for fiscal year 2026 and each fiscal year thereafter.</text></clause><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph></section><section id="HAD0FD41241234E1B9BE83CC5DC39F28E"><enum>102.</enum><header>Phase II strategic breakthrough funding</header><subsection id="H6DA6A09D526A4E94B94584CDBAF365E7"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Section 9 of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/638">15 U.S.C. 638</external-xref>) is amended—</text><paragraph id="H300CE3C5D20D499A868E53A2BCC1AAD5"><enum>(1)</enum><text>in subsection (aa), by adding at the end the following:</text><quoted-block id="H0DB9A888A7074A66B39909F868F9EC79" style="OLC"><paragraph id="H138D1EA8EF664FD8A733043C6F6480C2"><enum>(6)</enum><header>Strategic breakthrough allocation</header><text display-inline="yes-display-inline">Participating agencies with a budget for SBIR greater than $100,000,000 shall not be required to receive a waiver from the Administrator to award a small business concern not more than $30,000,000 when using funds made available under a strategic breakthrough allocation (as defined in subsection (ff)).</text></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block></paragraph><paragraph id="HD5D34A6B465C4EE5B506CBB8C7EA62B6"><enum>(2)</enum><text>in subsection (ff)—</text><subparagraph id="H9D11104653F34AD4888F918AA529B467" display-inline="no-display-inline"><enum>(A)</enum><text>in the subsection heading, by striking <quote><header-in-text level="subsection" style="OLC">and STTR</header-in-text></quote> and inserting <quote><header-in-text level="subsection" style="OLC">Phase II</header-in-text></quote>;</text></subparagraph><subparagraph id="HAAD6124505C247558E4B025EF7B3E0AE" display-inline="no-display-inline"><enum>(B)</enum><text>in paragraph (1), by striking <quote>or Phase II STTR award</quote>; and</text></subparagraph><subparagraph id="H54BA4FDBBC2243A8B7483D10D1709BD6"><enum>(C)</enum><text>by adding at the end the following new paragraph:</text><quoted-block style="OLC" id="H9C0B610E84B0420288E45D697242742A" display-inline="no-display-inline"><paragraph id="H818DC03474174D5F9F2839B8E6E90967"><enum>(3)</enum><header>Strategic breakthrough awards</header><subparagraph id="H80A3D8E994624A04A9397F6CB0453989"><enum>(A)</enum><header>Award</header><text display-inline="yes-display-inline">Under this subparagraph, a funding agreement may be awarded to a small business concern by each participating agency using funds made available under a strategic breakthrough allocation, as defined in subparagraph (B).</text></subparagraph><subparagraph id="H6D73944825F242BAB5B34DB17DBA3B60"><enum>(B)</enum><header>Fund parameters</header><clause id="H775798B673074427B5B9E0F3D9F46D39"><enum>(i)</enum><header>Strategic breakthrough allocation defined</header><text display-inline="yes-display-inline">In this subparagraph, the term <term>strategic breakthrough allocation</term> means, with respect to a participating agency with a required expenditure under subsection (f)(1) in excess of $100,000,000, a required expenditure amount from the SBIR allocation under subsection (f)(1) of such agency of not less than 0.25 percent of the extramural budget for research or research and development designated for such agency for fiscal year 2026 and every fiscal year thereafter.</text></clause><clause id="HE34438F480CE45CA8856DACE3A193652"><enum>(ii)</enum><header>Requirements</header><text>In the case of a Phase II agreement that is awarded to a small business concern by a participating agency using funds made available under a strategic breakthrough allocation, the following requirements shall apply:</text><subclause id="H4618DC2E393145EFB7BC5269C0C082D5"><enum>(I)</enum><header>Award size and period of performance</header><text display-inline="yes-display-inline">A participating agency may award from a strategic breakthrough allocation not more than $30,000,000 in aggregate to a small business concern, including its affiliates, spinouts, or subsidiaries based on reaching production or development milestone if the total period of performance of the project with respect to which such funds are awarded is not more than 48 months.</text></subclause><subclause id="HC2EF9B4BF9774CDAB722D2A2981CE27D"><enum>(II)</enum><header>Small business concern requirements</header><text>The small business concern shall—</text><item id="H9E0D831ABB984DF6A13B3EE0F7C1D72B"><enum>(aa)</enum><text>have been awarded not less than 1 prior Phase II award under the SBIR or STTR program;</text></item><item id="H726FA85CF67C4703957687527F42E253"><enum>(bb)</enum><text>demonstrate not less than 100 percent matching funds from sources other than the Government or amounts awarded by participating agencies under a program other than Phase I and II of the SBIR or STTR program as a result of an award using funds made available under a strategic breakthrough allocation;</text></item><item id="H79A695652D1E4B818F3C1177665B5B47"><enum>(cc)</enum><text>is an effective solution, as determined by market research; and</text></item><item id="H5A8D531D097142B99C6F39C93E81F737"><enum>(dd)</enum><text>only be eligible for an award from the strategic breakthrough allocation if the product, process, or technology of the small business concern—</text><subitem id="H0ED4D44374C94B7CA4FBA09D1DCD4974"><enum>(AA)</enum><text>meets a necessary level of readiness and has a commitment for inclusion in a program objective memorandum from an official with the rank of program executive officer or higher in an acquisition organization of the participating agency making such award; and</text></subitem><subitem id="HF109C0E1F79242E7A9258DAE6A659210"><enum>(BB)</enum><text>will meet high priority requirements or operational needs of such participating agency through a successful transition and into the acquisition process.</text></subitem></item></subclause><subclause id="HEF2CD9E11FCC45479E3F0FBBA5A435FF"><enum>(III)</enum><header>Deadline</header><text>Each participating agency shall complete any contract awards using strategic breakthrough allocation funds not later than 90 days after receiving a proposal from a small business concern for the award.</text></subclause><subclause id="HDF3972E47E3241D0A5331D94719385B7"><enum>(IV)</enum><header>Eligible activities</header><text>Eligible activities by a small business concern using strategic breakthrough allocation funds are—</text><item id="H326B779870224CAA905D346EED2AA9A8"><enum>(aa)</enum><text>design for manufacturing;</text></item><item id="H655425DA7F2B490B9F4D8EE0E825E530"><enum>(bb)</enum><text>establishing manufacturing facilities, tooling, and supply chain capacity;</text></item><item id="H2079CF41752B4D418892E468A4928C12"><enum>(cc)</enum><text>buying raw materials or inventory;</text></item><item id="H81E7C573F31E4A35875BA85F5F8F6A52"><enum>(dd)</enum><text>the integration of products with open interoperability standards;</text></item><item id="HF1D6FAFC6D054C99BF490CAA98E7EF5D"><enum>(ee)</enum><text>testing, evaluation, and certification of low-rate production units; and</text></item><item id="H594A8226E7634359BC53CB49233B2139"><enum>(ff)</enum><text>the purchase of production units and maintenance.</text></item></subclause><subclause id="H97A1A5A4E76647C89B124401BA4B0906"><enum>(V)</enum><header>Selection criteria</header><text>In making awards using funds made available under a strategic breakthrough allocation, a participating agency shall consider—</text><item id="H63135A3657A04F13A67BD735A9E956A3"><enum>(aa)</enum><text>the potential of the small business concern to—</text><subitem id="H3D84232CEBA44AEFA345B0C941DF73A1"><enum>(AA)</enum><text>advance the national security capabilities of the United States; and</text></subitem><subitem id="H3E09022302034832A14980B9FDF6157D"><enum>(BB)</enum><text>provide new technologies or processes, or new applications of existing technologies, that will enable new alternatives to existing programs;</text></subitem></item><item id="H2CC0AEDDF0094B3093C92397F69937AC"><enum>(bb)</enum><text>whether a customer in the participating agency has expressed an intent to purchase and integrate technology from the small business concern into its operations; and</text></item><item id="HC9771EBEED18432BABF5A2B31EC857BA"><enum>(cc)</enum><text>whether a particular technology area is undercapitalized by private investment.</text></item></subclause></clause></subparagraph><subparagraph id="H1DC839A7F862461EA51D87080CB1D2ED" display-inline="no-display-inline"><enum>(C)</enum><header>Acquisition mechanism</header><text>A participating agency shall establish a mechanism to provide small business concerns with direct access to program and requirements offices throughout the participating agency that may purchase technology from small business concerns under Phase III of the SBIR program.</text></subparagraph><subparagraph id="H593D6108CBCE4BB0B678276596C5C18F" commented="no"><enum>(D)</enum><header>Use of streamlined contracting mechanisms</header><text display-inline="yes-display-inline">Each participating agency shall implement streamlined processes and requirements for submitting proposals and applying for awards using funds made available under a strategic breakthrough allocation.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph></subsection><subsection id="HD55B31C944FD4C0D94017126E8898542" commented="no"><enum>(b)</enum><header>Commercialization readiness program</header><text>Section 9(y) of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/638">15 U.S.C. 638(y)</external-xref>) is amended—</text><paragraph id="H2E50B637D5A84F03BFAF2D6328AD1FAC" commented="no"><enum>(1)</enum><text>in paragraph (2)—</text><subparagraph id="H2DE2D33C756F41FD8BDBFE879AC95F31" commented="no"><enum>(A)</enum><text>by striking <quote>shall identify</quote> and inserting the following:</text><quoted-block style="OLC" id="H6EAEC12AEBD14ABD95D868DFBCC6D571" display-inline="yes-display-inline"><text>shall—</text><subparagraph id="HC39BDB3FC6234B8987929FC5C1FE3ED3" commented="no"><enum>(A)</enum><text display-inline="yes-display-inline">identify</text></subparagraph><after-quoted-block>;</after-quoted-block></quoted-block></subparagraph><subparagraph id="HAF5FCAFC1F3B495AB4464B1278FB091F" commented="no"><enum>(B)</enum><text>in subparagraph (A), as so designated—</text><clause id="HF75776FA075A49698F3708378EEA8489" commented="no"><enum>(i)</enum><text>by inserting <quote>, including small business concerns with an award from the strategic breakthrough allocation,</quote> before <quote>that have the potential</quote>; and</text></clause><clause id="H55DE1B0DC38147B987AEB3E9139E6702" commented="no"><enum>(ii)</enum><text>by striking the period at the end and inserting a semicolon; and</text></clause></subparagraph><subparagraph id="H9672A6EFC7A54ED79A303A41B56C9BDC" commented="no"><enum>(C)</enum><text>by adding at the end the following:</text><quoted-block style="OLC" id="H4639A8A0D28E48B48241605438258988" display-inline="no-display-inline"><subparagraph id="HD4006A75589F444B8D926D5ABE489551" commented="no"><enum>(B)</enum><text display-inline="yes-display-inline">ensure, in collaboration with SBIR program managers of each component, that research programs identified under subparagraph (A) are analyzed within the programming and budgeting process as budget requests are developed; and</text></subparagraph><subparagraph id="HDD5C9DD6450B4B0599E856A94116A4F4" commented="no"><enum>(C)</enum><text display-inline="yes-display-inline">provide to the Committee on Small Business and Entrepreneurship of the Senate and the Committees on Small Business and Science, Space, and Technology of the House of Representatives information on the integration of SBIR and STTR awardees in budget rollouts for research, development, testing, and evaluation activities.</text></subparagraph><after-quoted-block>;</after-quoted-block></quoted-block></subparagraph></paragraph><paragraph id="HB3588C15338343B0A6755BAC4E98106C" commented="no"><enum>(2)</enum><text>by striking paragraph (3) and redesignating paragraphs (4), (5), and (6) as paragraphs (3), (4), and (5), respectively; and</text></paragraph><paragraph id="H500743325A1F4960B80D9988B69A8FC5" commented="no"><enum>(3)</enum><text>in paragraph (5), as so redesignated—</text><subparagraph id="HA0A6CAB52BE44007A1CC0A256059AD58" commented="no"><enum>(A)</enum><text>in the subparagraph heading, by striking <quote><header-in-text level="subparagraph" style="OLC">and STTR</header-in-text></quote>;</text></subparagraph><subparagraph id="HBC1C4388CF1B4C2ABF29B39F9C66423B" commented="no"><enum>(B)</enum><text>in subparagraph (A)—</text><clause id="H7700DA7B946B455CAA940293257CD4FB" commented="no"><enum>(i)</enum><text>by inserting <quote>substantively</quote> before <quote>increase</quote>;</text></clause><clause id="H7AC403530B104E58A772DB759A37D324" commented="no"><enum>(ii)</enum><text>by striking <quote>and the number of Phase II STTR contracts</quote>; and</text></clause><clause id="H55A72AC8DCDF42CF80ED7516D263F67C" commented="no"><enum>(iii)</enum><text>by inserting <quote>in fiscal year 2028 as compared to fiscal year 2025</quote> before the semicolon at the end;</text></clause></subparagraph><subparagraph id="H2E085D5C9AF147FDB411ECA4A06F0984" commented="no"><enum>(C)</enum><text>in subparagraph (B), by striking <quote>and</quote> at the end;</text></subparagraph><subparagraph id="H3E753EFBDF2246868E119DDB96D83C8D" commented="no"><enum>(D)</enum><text>by redesignating subparagraph (C) as subparagraph (E);</text></subparagraph><subparagraph id="HBDD0EA0CE5194E5BB37E563B3F646A01" commented="no"><enum>(E)</enum><text>by inserting after subparagraph (B) the following:</text><quoted-block style="OLC" id="H09F3BC6430DD4F72906A95A3CC39DDD0" display-inline="no-display-inline"><subparagraph id="HAD8F863A08B945BA93E5A60C37C934E0" commented="no"><enum>(C)</enum><text display-inline="yes-display-inline">establish a mechanism to provide small business concerns with direct access to program and requirements offices that may purchase technology from the small business concern under Phase III of the SBIR program;</text></subparagraph><subparagraph id="HC7635E15DF414E2E900774BE34958D6F" commented="no"><enum>(D)</enum><text display-inline="yes-display-inline">allow services to provide operational needs statements directly to chiefs of requirements offices; and</text></subparagraph><after-quoted-block>; and</after-quoted-block></quoted-block></subparagraph><subparagraph id="HDD90D152BA914EAD994DAF31A9D614AB" commented="no"><enum>(F)</enum><text>in subparagraph (E), as so redesignated, in clause (i) by striking <quote>and STTR contracts</quote>.</text></subparagraph></paragraph></subsection></section><section id="H376A5F9DE8294F65A6EAAEDCD2D2BA01"><enum>103.</enum><header>Implementation briefings</header><text display-inline="no-display-inline">Not later than 60 days after the date of enactment of this Act, and on a recurrent basis until the implementation of paragraph (3) of section 9(ff) of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/638">15 U.S.C. 638(ff)</external-xref>), as added by section 102, is complete, the head of each agency participating in the SBIR or STTR programs that made an award from funds made available under a strategic breakthrough allocation (as defined under paragraph (3)(B) of section 9(ff) of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/638">15 U.S.C. 638(ff)</external-xref>, as added by section 102)) shall brief the Committee on Small Business and Entrepreneurship of the Senate and the Committees on Small Business and on Science, Space, and Technology of the House of Representatives on such implementation.</text></section><section id="H3A675DB49567447CB22F1AC2EE5FBE28"><enum>104.</enum><header>Fixed-price contracts</header><text display-inline="no-display-inline">Section 9 of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/638">15 U.S.C. 638</external-xref>) is amended—</text><paragraph id="HD10497574CDD4A12B059590856949053"><enum>(1)</enum><text>in subsection (f), by adding at the end the following:</text><quoted-block id="HDD27CB7A54BF42AABB379AEA831B6015" style="OLC"><paragraph id="H217EF3C0055D456EB1327CD6A462749F"><enum>(5)</enum><header>Fixed-price contract</header><text>Any funding agreement that is a contract made with expenditures allocated to the SBIR program under paragraph (1) shall be a firm fixed-price contract (as defined in section 16.202 of the Federal Acquisition Regulation), unless, on a case-by-case basis, the head of the awarding Federal agency makes a written determination to use a different contract structure.</text></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block></paragraph><paragraph id="H88F996DCD93A429DAF84840F61AA5F02"><enum>(2)</enum><text>in subsection (n), by adding at the end the following:</text><quoted-block id="H7DFF718CFBAA445CA490CE1377AA9BC1" style="OLC"><paragraph id="HA3FE48BC0B514D329593CE87C030F3E6"><enum>(5)</enum><header>Fixed-price contract</header><text>Any funding agreement that is a contract made with expenditures allocated to the STTR program under paragraph (1) shall be a firm fixed-price contract (as defined in section 16.202 of the Federal Acquisition Regulation), unless the head of the awarding Federal agency makes a written determination to use a different contract structure.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></section><enum>II</enum><header>Encouraging Small Business Innovation in All of America</header><section id="HD459B299216F4608B962C41FB51B2984"><enum>201.</enum><header>Encouraging new SBIR and STTR entrants</header><subsection id="H290A1FB92C8F4FB184ECF297D1F7C5E1"><enum>(a)</enum><header>Encouraging new <enum-in-header>SBIR</enum-in-header> and <enum-in-header>STTR</enum-in-header> entrants</header><text>Section 9(jj) of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/638">15 U.S.C. 638(jj)</external-xref>) is amended to read as follows:</text><quoted-block id="H83B9120279B74AB4A0E0711591FEA343" style="OLC"><subsection id="H1EAB267D3490412A8F26879FF5A10403"><enum>(jj)</enum><header>Encouraging new <enum-in-header>SBIR</enum-in-header> and <enum-in-header>STTR</enum-in-header> entrants</header><paragraph id="H518A6546EBAA4401B648A94C832D25C0"><enum>(1)</enum><header>Optimizing SBIR and STTR funding</header><subparagraph id="H9A8B86D4013045B698E55D8B3A91EA45"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">The head of a participating agency may award a Phase I or Phase II award to a small business concern only if the total value of the Phase I and Phase II awards awarded to such small business concern, including its affiliates, spinouts, and subsidiaries, does not exceed $75,000,000.</text></subparagraph><subparagraph id="H4069BCCF85C3401A85C9D0F6BE0C79D3" commented="no"><enum>(B)</enum><header>Waiver</header><clause id="H6CC718A79EFB4CF9978C67080970A512" commented="no"><enum>(i)</enum><header>In general</header><text>On an award-by-award basis, the Undersecretary or Director overseeing the SBIR or STTR program of a Federal agency may waive the requirement under subparagraph (A) with a written justification by the Undersecretary or Director that explains why the use of the waiver authority for an otherwise disqualified small business concern is imperative for national security purposes and why the work cannot be performed by other qualifying small business concerns.</text></clause><clause id="H89057F8F0EF146BEBF9B0CD67C4E114C"><enum>(ii)</enum><header>Nondelegation</header><text>The waiver authority established under clause (i) may not be delegated.</text></clause><clause id="H12F614B031AD4668A910C87E26584806"><enum>(iii)</enum><header>Record requirement</header><text display-inline="yes-display-inline">Participating agencies shall maintain information on any awards made using the waiver established under clause (i), including the amount of the award, the written justification for each award, and the identity of the award recipient.</text></clause><clause id="H1C60997E524F476BA89266BE6B5F7915"><enum>(iv)</enum><header>Report</header><text>The Administrator shall include the information described in clause (iii) in the annual report of the Administrator to Congress required by subsection (b)(7).</text></clause></subparagraph></paragraph><paragraph id="HFF0C82C9B5BD49F9AA93B7DDEED30EFF"><enum>(2)</enum><header>Principal investigators</header><text>An individual may not concurrently serve as the principal investigator on more than 1 proposal to a single Phase I solicitation or a single Phase II solicitation.</text></paragraph><paragraph id="HA14FA98B405C4162868D55467CA62E18"><enum>(3)</enum><header>Phase i size standard</header><text>A small business concern applying for a Phase I award may not have annual receipts (as defined in section 121.104 of title 13, Code of Federal Regulations, or any successor regulation) of more than $40,000,000 for the most recent fiscal year.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="HEFF7B4FD4B564921AC9B97518FF02357"><enum>(b)</enum><header>Phase 1<enum-in-header>A</enum-in-header> program</header><paragraph id="H252B097C816647C6AAB6E39468CF160C"><enum>(1)</enum><header>In general</header><text>Section 9 of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/638">15 U.S.C. 638</external-xref>) is amended—</text><subparagraph id="H91F020C64D8A439FB82FACEBA8DC7135"><enum>(A)</enum><text>in subsection (e)—</text><clause id="H3F2D676F3A894AEFAC9040ECCEC16E4E"><enum>(i)</enum><text>in paragraph (4)—</text><subclause id="H9EE0C12C7E4D48F58FCE2834D0A09FD0"><enum>(I)</enum><text>in subparagraph (A), by striking <quote>subparagraph (B)</quote> and inserting <quote>subparagraph (C)</quote>;</text></subclause><subclause id="HA7237FE7DD6A4A258B948F9B00C9D138"><enum>(II)</enum><text>by redesignating subparagraphs (B) and (C) as subparagraphs (C) and (D); and</text></subclause><subclause id="H94128DF68B274A648C4B3FB6E71C7BAB"><enum>(III)</enum><text>by inserting after subparagraph (A), the following:</text><quoted-block id="H21B5D699BC404DCC814DAEF3D250AD2E" style="OLC"><subparagraph id="H217F366E57C246B984B67CD8606F4C8F" commented="no"><enum>(B)</enum><text>a 1A phase for the same purposes as the first phase described under subparagraph (A) and intended to increase accessibility to the program for new entrants with proposals submitted pursuant to only SBIR open topic announcements;</text></subparagraph><after-quoted-block>; and</after-quoted-block></quoted-block></subclause></clause><clause id="H2ABD6BC58E7B4F14B76839B33BD193F1"><enum>(ii)</enum><text>by adding at the end following:</text><quoted-block style="OLC" id="HE519A18EA5B948BFBB3F78AB2B65FD65" display-inline="no-display-inline"><paragraph id="HA37D43CD1DAE40E3AA115B8DCDF2C530"><enum>(20)</enum><text display-inline="yes-display-inline">the term <term>Phase 1A</term> means the phase described in paragraph (4)(B);</text></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block></clause></subparagraph><subparagraph id="H385E5ABF5FDC4230AD5BE87AA954E86B"><enum>(B)</enum><text>by amending subsection (pp) to read as follows:</text><quoted-block id="H182C492D7EA04D77B7141B1DA57A8F09" style="OLC"><subsection id="HAA7A53FEAF234D1686134ADA2450C361"><enum>(pp)</enum><header>Phase 1<enum-in-header>A</enum-in-header> awards</header><paragraph id="H4F3BEE9144FE4907A819BF02C4D26A16"><enum>(1)</enum><header>Sense of congress</header><text>It is the sense of Congress that—</text><subparagraph id="HA4C808DE6F8F4B03B4E3984732109437"><enum>(A)</enum><text>Phase 1A funds will bring thousands of new small business concerns committed to commercialization of critical technologies into the SBIR program; and</text></subparagraph><subparagraph id="H0B1E0F254B0B48ED98C48EE224AA439C"><enum>(B)</enum><text>in order for participating agencies to benefit from the full scope of American innovation and identify the most promising solutions to scale, Phase 1A awards should fund the strongest technologies in a topic area regardless of—</text><clause id="HE2AA1A84904B4764B756AA16BE61B2C9"><enum>(i)</enum><text>the location of the small business concern within the United States; or</text></clause><clause id="HD00C59EFCBFE4F59B2ABA2CB01DDE6FF"><enum>(ii)</enum><text>the educational background of the principal investigator.</text></clause></subparagraph></paragraph><paragraph id="H4BEF51D1E8BD4330B909584E185A4B36"><enum>(2)</enum><header>Authorization</header><text>The head of each agency with an SBIR program shall allocate not less than 1.5 percent of funding and not more than 3 percent of funding for the SBIR program of the agency to Phase 1A awards.</text></paragraph><paragraph id="HFB6B41E11D61463086FB1365F4A0790B"><enum>(3)</enum><header>Solicitation</header><text>A solicitation issued under this subsection shall be conducted as an open topic announcement.</text></paragraph><paragraph id="HB41B54F5FBCD4F15B6A2C60F408B3226"><enum>(4)</enum><header>Eligibility</header><text display-inline="yes-display-inline">A small business concern, including its affiliates, spinouts, or subsidiaries, is eligible for an award under this subsection only if such small business concern, including its affiliates, spinouts, or subsidiaries, has not previously received an SBIR or STTR award.</text></paragraph><paragraph id="H63E1069189094154AE98CC0F45306A13"><enum>(5)</enum><header>Proposal</header><subparagraph id="H7BD93872E4EE4DE0B8683F70AC33A39C"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">A proposal submitted in response to a solicitation under this subsection shall consist of a report that is not more than 5 pages in length and containing the criteria in clauses (i) through (iv) of subparagraph (B).</text></subparagraph><subparagraph id="HAAF794F8CDB14ABF8C5F49EEB584B3E3"><enum>(B)</enum><header>Criteria</header><clause id="HEE30DC72AE4344F489ECEC80E1227302"><enum>(i)</enum><header>Identification of program</header><text display-inline="yes-display-inline">The small business concern shall describe the problem that the proposal is intended to address for the awarding agency and any commercial customer.</text></clause><clause id="H28625901F02D44CC81974DDC793A4EF1" commented="no" display-inline="no-display-inline"><enum>(ii)</enum><header>Description of solution</header><text display-inline="yes-display-inline">The small business concern shall describe the proposed solution, including the technical basis for the solution to demonstrate how the solution would address the problem described in the proposal, including the level of maturity of the solution at the time of the proposal.</text></clause><clause id="H8D5F9D8AAD864D15882F1DB6E8228C21"><enum>(iii)</enum><header>Effects of the solution</header><text display-inline="yes-display-inline">The small business concern shall describe how adoption of the proposed solution would produce potential time savings, cost savings, risk reduction, improvement of mission outcomes, or any other beneficial effects for the awarding agency and any commercial customer.</text></clause><clause id="H1F602E1DA36B42EBB1E84AC612F03472" commented="no"><enum>(iv)</enum><header>Differentiation</header><text display-inline="yes-display-inline">The small business concern shall—</text><subclause id="HCAB01F3E5DBB4C02962ACC431DBB077A"><enum>(I)</enum><text display-inline="yes-display-inline">identify the state of solutions in use at the time of the proposal to address the problem described in the proposal; and</text></subclause><subclause id="HA2093B6BD0784694B97E8BD46C83649B"><enum>(II)</enum><text>explain how the proposed solution is a unique and novel solution.</text></subclause></clause><clause id="H731C86E0884642169A01E98420ECF7D8" commented="no"><enum>(v)</enum><header>Commercialization strategy</header><text>The small business concern shall—</text><subclause id="H9E1C319D8EE84F87907A2D1B59FBA81D"><enum>(I)</enum><text display-inline="yes-display-inline">describe how the small business concern intends to fund the proposed solution from sources other than the award; and</text></subclause><subclause id="H52F4371268A94140B3FE9CBC9E4DCF94"><enum>(II)</enum><text>explain the market for the proposed solution, including the intended Government and commercial end users.</text></subclause></clause></subparagraph></paragraph><paragraph id="H015A9ADFA50143F7B7ED9030EA58A3D8"><enum>(6)</enum><header>Award limits</header><subparagraph id="H8F6E93BA95D74476A62B0C5DC53F34BE"><enum>(A)</enum><header>Number of awards</header><text>A small business concern or principal investigator is eligible for not more than one Phase 1A award.</text></subparagraph><subparagraph id="HB59AF1485EAB42AD9319F8A8F27E987B"><enum>(B)</enum><header>Amount</header><text>An award made under this subsection shall be for not more than $40,000.</text></subparagraph></paragraph><paragraph id="HA94248EBBFD24ADFB8BFA10AA66C22C3"><enum>(7)</enum><header>Notification of selection or non-selection</header><text>Each agency shall notify each small business concern of the award decision of the agency on any proposal submitted by the small business concern not later than 90 days after the date on which the solicitation closes.</text></paragraph><paragraph id="HC957B8F3131542B1AE1C9A60054C6CF6"><enum>(8)</enum><header>Application for phase ii award</header><subparagraph id="H7310B2CE1FC84CF692DD7F6DAC273B44"><enum>(A)</enum><header>Eligibility</header><text display-inline="yes-display-inline">A small business concern that receives a Phase 1A award shall be eligible to apply for a Phase II award.</text></subparagraph><subparagraph id="H10DC1BA274EC4E0C9B8D0325E9F5C173"><enum>(B)</enum><header>Use of funds</header><text>A small business concern may use funds from a Phase 1A award to develop a proposed solution in pursuit of a subsequent proposal for a Phase I award or a Phase II award.</text></subparagraph></paragraph><paragraph id="H0DB7C2416413422199DB70D1EC6C17A6" commented="no"><enum>(9)</enum><header>Streamlined awards</header><text display-inline="yes-display-inline">The head of each participating agency shall implement streamlined processes and requirements for submitting proposals and applying for solicitations for Phase 1A awards.</text></paragraph><paragraph id="H192DD40320C946C3BE4AA5B63578AA6B"><enum>(10)</enum><header>Peer review requirement</header><text display-inline="yes-display-inline">The head of a participating agency may waive any applicable peer review requirements for Phase 1A awards.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph><paragraph id="HCB10C7F21EA14566ABE1FB6D25C09332"><enum>(2)</enum><header>Conforming amendments</header><text display-inline="yes-display-inline">Section 9(e) of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/638">15 U.S.C. 638(e)</external-xref>) is amended—</text><subparagraph id="HE5B38276B1AF4BE6B9E1265560522AF9"><enum>(A)</enum><text>in paragraph (12)(A), by striking <quote>paragraph (4)(B)</quote> and inserting <quote>paragraph (4)(C)</quote>; and</text></subparagraph><subparagraph id="HCE1A03B6E2F84635BBB062D67DABB38A"><enum>(B)</enum><text display-inline="yes-display-inline">in paragraph (13)(A), by striking <quote>paragraph (4)(C)</quote> and inserting <quote>paragraph (4)(D)</quote>.</text></subparagraph></paragraph></subsection></section><section id="H377C999415AB45A3A4FD813EB43202DC"><enum>202.</enum><header>Combating discriminatory practices in the SBIR and STTR programs</header><text display-inline="no-display-inline">Section 9 of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/638">15 U.S.C. 638</external-xref>), as amended by this Act, is amended—</text><paragraph id="H4BF847E3785D490D9E710CB49863DA20"><enum>(1)</enum><text>in subsection (b)(7)(C), by striking <quote>owned and controlled by women or by socially or economically disadvantaged individuals</quote> and inserting <quote>owned by individuals who reside in rural areas</quote>;</text></paragraph><paragraph id="H8EB34E49676047FC88BC59542EFE595A"><enum>(2)</enum><text>in subsection (e)—</text><subparagraph id="H356DE2885D7A494CB557309DF0615B83"><enum>(A)</enum><text>in paragraph (18), by striking <quote>and</quote> at the end;</text></subparagraph><subparagraph id="H15AA89A40BAF4508B6B695233EACD805"><enum>(B)</enum><text>in paragraph (19), by striking the period at the end and inserting a semicolon; and</text></subparagraph><subparagraph id="H6DB75FBD59904F2880786D85FD1996F2"><enum>(C)</enum><text>by adding at the end the following:</text><quoted-block id="H22EA8B77174549CE903F0FAFF59A45E6" style="OLC"><paragraph id="HEF99AF552D1A4382BB78DE89589CB6F9" commented="no"><enum>(21)</enum><text>the term <term>new entrants</term> means a small business concern that has not received an SBIR or STTR award;</text></paragraph><paragraph id="HA414D5C939B246B4B51FCD0B7C2A27E8"><enum>(22)</enum><text>the term <term>rural area</term> means a county or other political subdivision of a State that the Bureau of the Census has defined as mostly rural or completely rural in the most recent decennial census;</text></paragraph><after-quoted-block>;</after-quoted-block></quoted-block></subparagraph></paragraph><paragraph id="H7F6D98CC841D4CC5ACC10787B75958B7"><enum>(3)</enum><text>in subsection (g)(8)(A)—</text><subparagraph id="H2044D57A70A041A48A2B01133A412CD7"><enum>(A)</enum><text>by striking clause (iii);</text></subparagraph><subparagraph id="H6445CEE0AD8D41BC81EFA1A45FA7F964"><enum>(B)</enum><text>by redesignating clauses (iv), (v), and (vi) as clauses (iii), (iv), and (v), respectively; and</text></subparagraph><subparagraph id="H0A23163043904A9FBDE41E788CD2891D"><enum>(C)</enum><text>in clause (iii), as so redesignated, by striking <quote>a socially or economically disadvantaged individual or has a socially or economically disadvantaged individual</quote> and inserting <quote>an individual who resides in a rural area or has an individual who resides in a rural area or is a new entrant</quote>;</text></subparagraph></paragraph><paragraph id="H259E36177D7E480B9DB11232F17D82AE"><enum>(4)</enum><text>in subsection (j)—</text><subparagraph id="H680E10E970134481A3D42A6F2E3CCD9B"><enum>(A)</enum><text>by adjusting the margins for paragraphs (2) and (3) 2 ems to the left; and</text></subparagraph><subparagraph id="H07A181BAE9FC4B698FBAD7F2F0AA66D3"><enum>(B)</enum><text>in paragraph (2)—</text><clause id="H9B58B166E5ED480397AE6E6856CE53D9" commented="no"><enum>(i)</enum><text>by striking subparagraph (F);</text></clause><clause id="H269D03664DD24AD8981C3FBA1ED2F155"><enum>(ii)</enum><text>by redesignating subparagraphs (G), (H), and (I) as subparagraphs (F), (G), and (H), respectively; and</text></clause><clause id="H90FFF4D621CA4E3785BEEC138442DF28"><enum>(iii)</enum><text>in subparagraph (H), as so redesignated, by striking <quote>subparagraph (H)</quote> and inserting <quote>subparagraph (G)</quote>;</text></clause></subparagraph></paragraph><paragraph id="H8DF0F6D2193E4BFF962B0EB701CDC833"><enum>(5)</enum><text>in subsection (k)(1)(F)—</text><subparagraph id="H078F862A20F0428D942D4B7A080B3A0B"><enum>(A)</enum><text>by striking clause (ii);</text></subparagraph><subparagraph id="HBD6D5B08913F47FFB418D136C39896F4"><enum>(B)</enum><text>by redesignating clauses (iii), (iv), and (v) as clauses (ii), (iii), and (iv), respectively; and</text></subparagraph><subparagraph id="HD8C4CDFE37734F2DAFD2EE1CF5845498"><enum>(C)</enum><text>in clause (ii), as so redesignated, by striking <quote>a socially or economically disadvantaged individual or has a socially or economically disadvantaged individual</quote> and inserting <quote>an individual who resides in a rural area or has an individual who resides in a rural area or is a new entrant</quote>;</text></subparagraph></paragraph><paragraph id="HF115505334854F9D98CC854C8454416E"><enum>(6)</enum><text>in subsection (o)(9)(A)—</text><subparagraph id="HE531BBEF0D5A45D4B40FEDE842A7C39D"><enum>(A)</enum><text>by striking clause (iii);</text></subparagraph><subparagraph id="HF71524D42E054DB496A84AA5679E9ADD"><enum>(B)</enum><text>by redesignating clauses (iv), (v), and (vi) as clauses (iii), (iv), and (v), respectively; and</text></subparagraph><subparagraph id="H010B6CEC74D74BCBBA985CB9BC3BD731"><enum>(C)</enum><text>in clause (iii), as so redesignated, by striking <quote>a socially or economically disadvantaged individual or has a socially or economically disadvantaged individual</quote> and inserting <quote>an individual who resides in a rural area or has an individual who resides in a rural area or is a new entrant</quote>; and</text></subparagraph></paragraph><paragraph id="HC0C88DDCBB44461CA193CF0615C9B133"><enum>(7)</enum><text>in subsection (mm)—</text><subparagraph id="H2AE83CC4DCD64D30B65AAC65BEB92696"><enum>(A)</enum><text>in paragraph (1)—</text><clause id="HAFB603B02D9B41BB8548180D3744EA1E"><enum>(i)</enum><text>in the matter preceding subparagraph (A), by striking <quote>and until September 30, 2025</quote>; and</text></clause><clause id="H09AFD315380B4151A84E853DEE16C0CC"><enum>(ii)</enum><text>in subparagraph (F), by striking <quote>or abuse to ensure compliance</quote> and inserting <quote>abuse, or adversarial influence to ensure compliance</quote>;</text></clause></subparagraph><subparagraph id="H9B0FD8CD6DCD47DEBBF21F714261F19D"><enum>(B)</enum><text>in paragraph (2)(A), by striking <quote>to carry out the policy directive required under subsection (j)(2)(F) and</quote> and inserting <quote>to increase the participation of States with respect to which a low level of SBIR awards have historically been awarded</quote>; and</text></subparagraph><subparagraph id="HBBB058B2D3814EFCAF99388E08792F83"><enum>(C)</enum><text>by adding at the end the following:</text><quoted-block id="H519D6CEABA754566BF39D158FB35AF3C" style="OLC"><paragraph id="H97E2B461E3154B138B77CF5A3430DEB7"><enum>(7)</enum><header>Eligibility</header><text>An agency may use the funds allocated to the SBIR program of such agency under this subsection only if such agency does not—</text><subparagraph id="HA0415C82C952485CBD93C5934A8356A6"><enum>(A)</enum><text>consider the race, gender, or ethnicity of the principal investigator, founder, or key personnel of the small business concern applying for an SBIR or STTR award in an award decision under the SBIR or STTR program of the agency;</text></subparagraph><subparagraph id="HE5C568AD662E464483E4FF46458AF29A"><enum>(B)</enum><text>require or consider a statement or plan to promote diversity or equity as part of an application for an SBIR or STTR award under the SBIR or STTR program of the agency; or</text></subparagraph><subparagraph id="HE775D0C2378044B480E9393A9F09DED4"><enum>(C)</enum><text>offer supplemental funds to a recipient of an SBIR or STTR award based on the race, gender, or ethnicity of the principal investigator, founder, or key personnel of a small business concern.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph></section><section id="HDE58495A87514C4ABCC6AE75E20ABBB9"><enum>203.</enum><header>Disclosures and prohibitions relating to certain agreements with entities engaging in censorship</header><subsection id="H7730CBC7F1A6431B83D6E9B8BBEA22C5"><enum>(a)</enum><header>Disclosure for <enum-in-header>SBIR</enum-in-header> applicants</header><text>Section 9(g)(13) of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/638">15 U.S.C. 638(g)(13)</external-xref>) is amended—</text><paragraph id="H9EFBBBA0446D4F8EBD3F52EB03C6F6D4"><enum>(1)</enum><text>in subparagraph (F), by striking <quote>and</quote> at the end;</text></paragraph><paragraph id="HC61D638954CA474C92653ADE740344F6"><enum>(2)</enum><text>in subparagraph (G), by striking the semicolon at the end and inserting <quote>; and</quote>; and</text></paragraph><paragraph id="H4D7A04259EB44BD1AD4D001494048F47"><enum>(3)</enum><text>by adding at the end the following:</text><quoted-block id="HAAC0D307C2964F4EBC12F9576C826B48" style="OLC"><subparagraph id="HDA11AD98BFA94E4CA4D77A86D30C2453"><enum>(H)</enum><text>a current or pending agreement with—</text><clause id="H2EB46656E39D4AED8FF24D0858B45060"><enum>(i)</enum><text>NewsGuard Technologies, Inc. (doing business as <quote>NEWSGuard</quote>);</text></clause><clause id="H4DD28E78F30F475E9FD60A2B43C3518C"><enum>(ii)</enum><text>Disinformation Index, Inc., Disinformation Index, Ltd., or Global Disinformation Index gUG (collectively doing business as <quote>Global Disinformation Index</quote>);</text></clause><clause id="H119A282DEE0A4260B00C92EC20FFEA97"><enum>(iii)</enum><text>Internews; or</text></clause><clause id="HD930C8C04ECB4A09A5A116AA19D55A77"><enum>(iv)</enum><text>an entity that engages in operations or activities, or produces products, the function of which is to demonetize or rate the credibility of a domestic entity (including news and information outlets) based on lawful speech of such domestic entity under the stated function of <quote>fact-checking</quote> or otherwise exposing or correcting misinformation, disinformation, or misinformation;</text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection id="HE666907D502348CE959014652725C40F"><enum>(b)</enum><header>Prohibition on <enum-in-header>SBIR</enum-in-header> awards</header><text>Paragraph (16) of section 9(g) of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/638">15 U.S.C. 638(g)</external-xref>), as redesignated by section 402, is amended by adding at the end the following:</text><quoted-block id="HC70130B02B514014A0591B3FD9F9A787" style="OLC"><subparagraph id="HCDCAB154B4204D85B78DB306C724FBA3"><enum>(G)</enum><text>the small business concern submitting the proposal or application has a current or pending agreement with—</text><clause id="HD0AAF7871E5E483093A6DF4C97296E8B"><enum>(i)</enum><text>NewsGuard Technologies, Inc. (doing business as <quote>NEWSGuard</quote>);</text></clause><clause id="HDB1714AA1A2C490FABA121FDCA25D8A2"><enum>(ii)</enum><text>Disinformation Index, Inc., Disinformation Index, Ltd., or Global Disinformation Index gUG (collectively doing business as <quote>Global Disinformation Index</quote>);</text></clause><clause id="H42929D334D2540EF9344E80767851112"><enum>(iii)</enum><text>Internews; or</text></clause><clause id="HA20CA13D31CF48D08D674F7B9CD3692B"><enum>(iv)</enum><text>an entity that engages in operations or activities, or produces products, the function of which is to demonetize or rate the credibility of a domestic entity (including news and information outlets) based on lawful speech of such domestic entity under the stated function of <quote>fact-checking</quote> or otherwise exposing or correcting misinformation, disinformation, or misinformation;</text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="HEF52EDC1A1E84ABC86BCC23234CE8BE7"><enum>(c)</enum><header>Disclosure for <enum-in-header>STTR</enum-in-header> applicants</header><text>Section 9(o)(17) of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/638">15 U.S.C. 638(o)(17)</external-xref>) is amended—</text><paragraph id="H86A20CD463B943A6A104E83F4BEF604A"><enum>(1)</enum><text>in subparagraph (F), by striking <quote>and</quote> at the end;</text></paragraph><paragraph id="H3BD92CE3C8BE4602977BE39049481154"><enum>(2)</enum><text>in subparagraph (G), by striking the semicolon at the end and inserting <quote>; and</quote>; and</text></paragraph><paragraph id="HB29F0F3FC8584D65A7AEA0B123D2630E"><enum>(3)</enum><text>by adding at the end the following:</text><quoted-block id="HC9095E3261394B9E84FB46FD6D34DA55" style="OLC"><subparagraph id="H24EED4041C9B464A8368B0B1DD0D9E54"><enum>(H)</enum><text>a current or pending agreement with—</text><clause id="H605DF92B5C6E42C6A8B63F7B6541809A"><enum>(i)</enum><text>NewsGuard Technologies, Inc. (doing business as <quote>NEWSGuard</quote>);</text></clause><clause id="H3E74B962364D45DDB0105DB82FC3C930"><enum>(ii)</enum><text>Disinformation Index, Inc., Disinformation Index, Ltd., or Global Disinformation Index gUG (collectively doing business as <quote>Global Disinformation Index</quote>);</text></clause><clause id="H40E55F7EC34C4DA7AF3255F5E67CAF72"><enum>(iii)</enum><text>Internews; or</text></clause><clause id="HD667B59F71D44EF6AFA3A6EB766C4E89"><enum>(iv)</enum><text>an entity that engages in operations or activities, or produces products, the function of which is to demonetize or rate the credibility of a domestic entity (including news and information outlets) based on lawful speech of such domestic entity under the stated function of <quote>fact-checking</quote> or otherwise exposing or correcting misinformation, disinformation, or misinformation;</text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection id="H3EDFCF53E3AA481E8B51C5D962D0FE39"><enum>(d)</enum><header>Prohibition on <enum-in-header>STTR</enum-in-header> awards</header><text>Paragraph (20) of section 9(o) of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/638">15 U.S.C. 638(o)(20)</external-xref>), as redesignated by section 402, is amended by adding at the end the following:</text><quoted-block id="HBD678D0BC3CC4F5C82D440263BBDB482" style="OLC"><subparagraph id="H18D1D830A41C4E89B50E507470D373C9"><enum>(G)</enum><text>the small business concern submitting the proposal or application has a current or pending agreement with—</text><clause id="H0F9242E0BBDB4B59A36317402708BFE3"><enum>(i)</enum><text>NewsGuard Technologies, Inc. (doing business as <quote>NEWSGuard</quote>);</text></clause><clause id="HAF0D8D84DEE648FB9A25257B205BAE05"><enum>(ii)</enum><text>Disinformation Index, Inc., Disinformation Index, Ltd., or Global Disinformation Index gUG (collectively doing business as <quote>Global Disinformation Index</quote>);</text></clause><clause id="H9E87C26531E04F3AAF8A6EA450942BAA"><enum>(iii)</enum><text>Internews; or</text></clause><clause id="H11EB395B4BD947E6A1772A2C92D7C822"><enum>(iv)</enum><text>an entity that engages in operations or activities, or produces products, the function of which is to demonetize or rate the credibility of a domestic entity (including news and information outlets) based on lawful speech of such domestic entity under the stated function of <quote>fact-checking</quote> or otherwise exposing or correcting misinformation, disinformation, or misinformation;</text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="HA060087466AA4CF2986DEC688EFB012F"><enum>(e)</enum><header>Conforming amendments</header><paragraph id="H7C0D2CF58D874D9785F31352D2272E78"><enum>(1)</enum><header>SBIR awards</header><text display-inline="yes-display-inline">Paragraph (19)(A) of section 9(g) of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/638">15 U.S.C. 638(g)</external-xref>), as so redesignated by section 402, is amended by striking <quote>through (G)</quote> and inserting <quote>through (H)</quote>.</text></paragraph><paragraph id="H73B35AE21E9F48E8A0A906C3A36DB11D"><enum>(2)</enum><header>STTR awards</header><text>Paragraph (23)(A) of section 9(o) of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/638">15 U.S.C. 638(o)</external-xref>), as so redesignated by section 402, is amended by striking <quote>through (G)</quote> and inserting <quote>through (H)</quote>.</text></paragraph></subsection></section><section id="H3DCE9929A1264A0C8E4A251D000DCEDC"><enum>204.</enum><header>Connecting SBIR and STTR awardees and small business investment companies</header><text display-inline="no-display-inline">Section 9(mm)(1) of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/638">15 U.S.C. 638(mm)(1)</external-xref>) is amended—</text><paragraph id="H007F40C0EFAB4D458EC25E54C483162F"><enum>(1)</enum><text>in subparagraph (J), by striking <quote>and</quote> at the end;</text></paragraph><paragraph id="H7990F05BFF424F8A80E494CE31D680C7"><enum>(2)</enum><text>in subparagraph (K), by striking the period at the end and inserting <quote>; and</quote>; and</text></paragraph><paragraph id="HE795BF8AFCBB4C299EE5EF9F94F53780"><enum>(3)</enum><text>by adding at the end the following new subparagraph:</text><quoted-block style="OLC" id="HB5C9EA01A9B6481E9AF2988D3C0D9D4E" display-inline="no-display-inline"><subparagraph id="H7FBAB779EA3543FF833617E770DA3EF9"><enum>(L)</enum><text display-inline="yes-display-inline">connecting SBIR and STTR awardees with small business investment companies (as defined under section 103 of the Small Business Investment Act of 1958 (<external-xref legal-doc="usc" parsable-cite="usc/15/662">15 U.S.C. 662</external-xref>)) and other domestic private investors.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></section><section id="H01E2C1940EE848FA8B38A92CDEFDA5EB"><enum>205.</enum><header>Agency outreach to rural communities</header><subsection id="H606495E7010F47B2838C568627B58795"><enum>(a)</enum><header>Agency outreach</header><text display-inline="yes-display-inline">Section 9 of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/638">15 U.S.C. 638</external-xref>) is amended—</text><paragraph id="HDC1A52D93FE74F63880211B6DC36B34E"><enum>(1)</enum><text>in subsection (j), by adding at the end the following new paragraphs:</text><quoted-block id="H3633064A15904899BACF4D7A76EBE96E" style="OLC"><paragraph id="H1C65048A98E04D818602B13B68E652ED"><enum>(5)</enum><header>Modification relating to rural outreach</header><text>Not later than 90 days after the date of the enactment of this paragraph, the Administrator shall modify the policy directives issued pursuant to this subsection to require each Federal agency participating in the SBIR program to enhance the outreach efforts of such Federal agency to rural communities to increase the participation of small businesses concerns located in rural communities in the SBIR program, including by ensuring that such Federal agency—</text><subparagraph id="HA6AE518E8AE14778BA2EDBA562985222"><enum>(A)</enum><text>conducts outreach efforts with respect to the SBIR program in rural communities; and</text></subparagraph><subparagraph id="H46E7EA358E514B4FA58B703DBADA8591"><enum>(B)</enum><text>when such Federal agency conducts such outreach in an area served by a small business development center, coordinates with such small business development center.</text></subparagraph></paragraph><paragraph id="H9D56712286274718A7DF885C294F41A4" commented="no" display-inline="no-display-inline"><enum>(6)</enum><header>Modification relating to rural outreach</header><text>Not later than 90 days after the date of the enactment of this paragraph, the Administrator shall modify the policy directives issued pursuant to this subsection to require the Administration to place a special emphasis on small business concerns in rural areas when conducting outreach related to the SBIR program, including by ensuring that the Administration includes outreach efforts in rural communities carried out by the Administration with respect to the SBIR program.</text></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block></paragraph><paragraph id="H655330278C6B465D9D60DCD3F61375AA"><enum>(2)</enum><text>in subsection (p), by adding at the end the following new paragraph:</text><quoted-block id="H188F4871E12040FE906D12323A01D8D7" style="OLC"><paragraph id="H95F23344309F47FEAE9A2D4F6C002581"><enum>(4)</enum><header>Modification relating to rural outreach</header><text>Not later than 90 days after the date of the enactment of this paragraph, the Administrator shall modify the policy directive issued pursuant to this subsection to require each Federal agency participating in the STTR program to enhance the outreach efforts of such Federal agency to rural communities to increase the participation of small businesses concerns located in rural communities in the STTR program, including by ensuring that such Federal agency—</text><subparagraph id="HD257BE762004428D83F939E8E52709E9"><enum>(A)</enum><text>conducts outreach efforts with respect to the STTR program in rural communities; and</text></subparagraph><subparagraph id="H2EECADBE4E61467CB8893B98EBBE8964"><enum>(B)</enum><text>when such Federal agency conducts such outreach in an area served by a small business development center, coordinates with such small business development center.</text></subparagraph></paragraph><paragraph id="HFC45399DBAD845A6BACC09FF79569F70" commented="no" display-inline="no-display-inline"><enum>(5)</enum><header>Modification relating to rural outreach</header><text>Not later than 90 days after the date of the enactment of this paragraph, the Administrator shall modify the policy directive issued pursuant to this subsection to require the Administration to place a special emphasis on small business concerns in rural areas when conducting outreach related to the STTR program, including by ensuring that the Administration includes outreach efforts in rural communities carried out by the Administration with respect to the STTR program.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection id="HE1E2375119E942A79337D456FBC90F6E" commented="no"><enum>(b)</enum><header>Modification of current directives</header><text>Section 9(j)(2) of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/638">15 U.S.C. 638(j)(2)</external-xref>), as amended by section 202(4)(B), is amended by revising subparagraph (F) to read as follows:</text><quoted-block id="HC4450DCD80004083BA3E37FF2AC09FB7" style="OLC"><subparagraph id="H130DE09473854C83831133AA9BC44E97" commented="no"><enum>(F)</enum><text>enhanced outreach efforts to increase the participation of small business concerns that have never participated in Federal research and development to develop innovative technologies, with a special emphasis on small business concerns in rural areas;</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection></section><enum>III</enum><header>Streamlining Participation in the SBIR and STTR Programs</header><section id="HF02AC07DD2BE45E8BCDCE75164C43585"><enum>301.</enum><header>Amendments relating to open topics</header><subsection id="H96F6B1017A6045EE92762B8BE5A73EB8"><enum>(a)</enum><header>Definition of open topic announcement</header><text>Section 9(e) of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/638">15 U.S.C. 638(e)</external-xref>), as amended by section 202(2), is further amended by adding at the end the following:</text><quoted-block id="H076872933BC347598EB4890D9E0D266D" style="OLC"><paragraph id="HDABB26E9772F4851B1B13FCE71194E6B"><enum>(23)</enum><text>the term <term>open topic announcement</term> means a solicitation for SBIR or STTR proposals that—</text><subparagraph id="H07D365648926421BB3BE856294D5D433"><enum>(A)</enum><text>is a generalized problem statement or broad technology area and does not contain any language requiring that the solutions that a small business concern proposes adhere to specific technological specifications; and</text></subparagraph><subparagraph id="HB5AE8EF384E240718CDD4260F003FE71"><enum>(B)</enum><text>evaluates the ability of the solution proposed by the small business concern to meet the stated innovation need of the agency or Government end user; and</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="H9F60ABCEA132424EB7CBB7F3BFE27C85" commented="no"><enum>(b)</enum><header>Program on innovation open topics</header><text>Section 9(ww) of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/638">15 U.S.C. 638</external-xref>) is amended—</text><paragraph id="H743AE256A28542B0A2A2BD7B6CB1FA73" commented="no"><enum>(1)</enum><text>in paragraph (1)—</text><subparagraph id="H5F75D136E6A746348F7F1A7C17AE74D9" commented="no"><enum>(A)</enum><text>in the matter preceding subparagraph (A), by striking <quote>Secretary of Defense</quote> and inserting <quote>head of each participating agency</quote>; and</text></subparagraph><subparagraph id="H2096D3345F514AC7896F440B513C03C6" commented="no"><enum>(B)</enum><text>by striking <quote>the Department of Defense</quote> each place it appears and inserting <quote>such participating agency</quote>;</text></subparagraph></paragraph><paragraph id="H690CA39E4FC245FA86101AB660CBD551" commented="no"><enum>(2)</enum><text>in paragraph (2)—</text><subparagraph id="H8DBBAF31ECC54CC49AAC82E4DCB2A21C" commented="no"><enum>(A)</enum><text display-inline="yes-display-inline">by striking <quote>Secretary of Defense</quote> and inserting <quote>head of each participating agency</quote>;</text></subparagraph><subparagraph id="H6001268A6FCB43C0AA30BA96583AA73B"><enum>(B)</enum><text>by striking <quote>each component of</quote> and inserting <quote>such participating agency and, with respect to</quote>; and</text></subparagraph><subparagraph id="H2D9658B20830409C80BF31220C03BD18"><enum>(C)</enum><text>by inserting <quote>, each component thereof,</quote> before <quote>per fiscal year</quote>; and</text></subparagraph></paragraph><paragraph id="HB045412353764CA8AAED820C53DD116E" commented="no"><enum>(3)</enum><text>by striking paragraph (3).</text></paragraph></subsection></section><section id="H7531564A6A7B485A998B29270D79E422"><enum>302.</enum><header>Reducing administrative burden</header><text display-inline="no-display-inline">Section 9(jj) of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/638">15 U.S.C. 638(jj)</external-xref>), as amended by section 201(a)(1), is further amended by adding at the end the following:</text><quoted-block id="HAF19FBD58BDB491D8903CDCCFED6E69C" style="OLC"><paragraph id="HBC70D403FA4744B49529447C24641015"><enum>(4)</enum><header>Reducing administrative burden</header><subparagraph id="HACCB85074AE3436D88EC33C764CF6C92"><enum>(A)</enum><header>Limit on submissions to a solicitation</header><text>A small business concern, including its affiliates, spinouts, or subsidiaries, may not submit more than 10 proposals to a single Phase I solicitation or a single Phase II solicitation under subsection (cc).</text></subparagraph><subparagraph id="HC2715C621DBA47EDBD52C8DE6C9B0330"><enum>(B)</enum><header>Limit on submissions in a single year</header><text>A small business concern, including its affiliates, spinouts, or subsidiaries, may not submit more than a combined total of 25 proposals to Phase I solicitations or Phase II solicitations under subsection (cc) published by a single agency, including the components of the agency, in a single fiscal year.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></section><enum>IV</enum><header>Protecting American Innovation From Adversarial Influence</header><section id="H596992611B014D5A889B355FED82B6AA"><enum>401.</enum><header>Definition of foreign risk</header><text display-inline="no-display-inline">Section 9(e) of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/638">15 U.S.C. 638(e)</external-xref>), as amended by section 301, is further amended by adding at the end the following:</text><quoted-block id="H3CF7D5257E4046BCBF9D7F6675FD0EF4" style="OLC"><paragraph id="H485931A65F8347B9BB9210FD9ED232F3"><enum>(24)</enum><text>the term <term>foreign risk</term> means, in the past 10 years, any foreign affiliation, technology licensing agreement, joint venture, contractual or financial obligation (pending or otherwise), investment agreement, research relationship (including co-authorship), or business relationship between—</text><subparagraph id="H34AF0A40B853473597BE48991AE8FB84"><enum>(A)</enum><text>a small business concern (including all subsidiaries, spinouts, and affiliates) submitting a proposal for an SBIR or STTR program, and covered individuals, owners, or other key personnel of the small business concern; and</text></subparagraph><subparagraph id="H2DF82D2D01F34BA0839261749A6CF5AA"><enum>(B)</enum><text>an individual, research institution, business entity, government, or government-owned entity in a foreign country of concern that is disclosed, as required under subsection (g) or subsection (o), or otherwise identified in the due diligence process, as required under subsection (vv).</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></section><section id="HEAB0E5C56EA343ABBC155E1ED0A62581"><enum>402.</enum><header>Bolstering research security of SBIR and STTR awards</header><text display-inline="no-display-inline">Section 9 of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/638">15 U.S.C. 638</external-xref>), as amended by this Act, is amended—</text><paragraph id="H7D82A2A70E32441C905D749AC5719804"><enum>(1)</enum><text>in subsection (g)—</text><subparagraph id="H8749E84C8B704CB9B05F4823B7C61133" display-inline="no-display-inline"><enum>(A)</enum><text>by redesignating paragraphs (15), (16), and (17) as paragraphs (16), (18), and (19), respectively;</text></subparagraph><subparagraph id="H48006CE4D8B145438DD93ABC81EE407A"><enum>(B)</enum><text>by inserting after paragraph (14) the following:</text><quoted-block style="OLC" id="H8B553168B25C4AAFA6C1A21776A2DD28"><paragraph id="H27FFEACE391F4AE39B5A2FF29E0810B3"><enum>(15)</enum><text>evaluate whether a small business concern presents a risk to national security for any reason, through measures including—</text><subparagraph id="HCE5AD7FB137C4779B8015AB695002E3A"><enum>(A)</enum><text>the due diligence process required under subsection (vv);</text></subparagraph><subparagraph id="HC39BCFF8C43542429EAD19736D4FA2C2"><enum>(B)</enum><text>disclosures submitted under this subsection; or</text></subparagraph><subparagraph id="H4ABFF6D779CA43CCACB7EEF87F1D2CC3"><enum>(C)</enum><text>coordination with the Inspector General of the agency or the intelligence community (as defined under section 3 of the National Security Act of 1947 (<external-xref legal-doc="usc" parsable-cite="usc/50/3003">50 U.S.C. 3003</external-xref>));</text></subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block></subparagraph><subparagraph id="HF73E16F6C57745669137AC53C1016E7C"><enum>(C)</enum><text>in paragraph (16), as so redesignated—</text><clause id="H7109AF6F312242FE830B3C8BE9D67BBC"><enum>(i)</enum><text>by striking subparagraph (B);</text></clause><clause id="HF6CF3225FAE44D4BBF127E0E6F602F48"><enum>(ii)</enum><text>by striking <quote>that—</quote> and all that follows through <quote>the small business concern submitting</quote> and inserting <quote>that the small business concern submitting</quote>;</text></clause><clause id="H51F96FEAB64C49B3A8598CF12668A7CE"><enum>(iii)</enum><text>by redesignating clauses (i), (ii), and (iii) as subparagraphs (A), (B), and (C), respectively, and adjusting the margins accordingly;</text></clause><clause id="H5E731C44682D4E7AAF70AE1FB1FED361"><enum>(iv)</enum><text>in subparagraph (B), as so redesignated, by striking <quote>or</quote> at the end;</text></clause><clause id="HAE9FADC13E8941F6B9EED1CD0ECDEADA"><enum>(v)</enum><text>in subparagraph (C), as so redesignated, by striking <quote>and</quote> at the end; and</text></clause><clause id="HAFC1E5C581B948BE95DDCA7BEB0A89B3"><enum>(vi)</enum><text>by adding at the end the following:</text><quoted-block style="OLC" id="H1557E84E6BAE4CABA62B678CA1908C94"><subparagraph id="HEFC02D95A37C43B5B48000898DD3289F"><enum>(D)</enum><text>has a foreign risk connecting the small business concern to an entity, including any affiliates, spinouts, or subsidiaries of the entity, or individual on one or more of the following lists:</text><clause id="H17E3F7E9CFB34D58BE23D3865FEB64FC"><enum>(i)</enum><text>the UFLPA Entity List maintained by the Department of Homeland Security;</text></clause><clause id="HF3C0711FDE8E44D98F1B97654C39CC59"><enum>(ii)</enum><text>the Non-SDN Chinese Military-Industrial Complex Companies List of the Office of Foreign Assets Control maintained by the Department of the Treasury;</text></clause><clause id="H30056B91E5E34BDE9D9E47024922AE6D"><enum>(iii)</enum><text>the Section 889 Prohibition List established under section 889 of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 (<external-xref legal-doc="public-law" parsable-cite="pl/115/232">Public Law 115–232</external-xref>) and maintained by the Department of Defense;</text></clause><clause id="H4E956B85B67541CF8F483E493107920D"><enum>(iv)</enum><text>the list of Chinese Military companies required under section 1260H of the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021 (<external-xref legal-doc="public-law" parsable-cite="pl/116/283">Public Law 116–283</external-xref>) and maintained by the Department of Defense;</text></clause><clause id="H5812DBB8189440FBA7383D8D366FF718"><enum>(v)</enum><text>the Military End User List maintained by the Bureau of Industry and Security of the Department of Commerce;</text></clause><clause id="H4D2E7315500947E8A781C5CCF14A777B"><enum>(vi)</enum><text>the Entity List maintained by the Bureau of Industry and Security of the Department of Commerce;</text></clause><clause id="H9B157E1E006C4FF3B7E632819FE917EF"><enum>(vii)</enum><text>the List of Equipment and Services maintained by the Federal Communications Commission; and</text></clause><clause id="H057B3B83381A4E59A990C77F46F5DEDC"><enum>(viii)</enum><text>the Withhold Release Orders and Findings List maintained by U.S. Customs and Border Protection;</text></clause></subparagraph><subparagraph id="H4B0C9B144E114699AFA5510DD703079A"><enum>(E)</enum><text>has a foreign risk with a primary source that is classified;</text></subparagraph><subparagraph id="H7E5973B9B238445FA1F2A0C5C593FFF3"><enum>(F)</enum><text>has a foreign risk or another national security risk not listed in statute or regulatory guidance that an agency determines warrants a denial; or</text></subparagraph><after-quoted-block>;</after-quoted-block></quoted-block></clause></subparagraph><subparagraph id="H9EDD8F0F160E410BBB26D9EE2DC8E2C8"><enum>(D)</enum><text>by inserting after paragraph (16), as so redesignated, the following:</text><quoted-block style="OLC" id="H60BBC42920244F5595033504AD0066ED"><paragraph id="H67857D62D2F041C58778BD7858EE29D9"><enum>(17)</enum><text>not, and any personnel of the Federal agency including technical points of contact shall not, communicate to an applicant prior to formal notification of an award decision that an application was denied due to a foreign risk;</text></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block></subparagraph><subparagraph id="HD51DD654B8FB4B2580705F931F8B3FE5"><enum>(E)</enum><text>in paragraph (19), as so redesignated—</text><clause id="H9866CE56814B4B6A80F7513B537BC9B6"><enum>(i)</enum><text>in subparagraph (B), by striking <quote>paragraph (16)(A)</quote> and inserting <quote>paragraph (18)(A)</quote>; and</text></clause><clause id="H4D2D4EE93C9B40D4A9EE47EFC6910755"><enum>(ii)</enum><text>in subparagraph (C), by striking <quote>paragraph (16)(B)</quote> and inserting <quote>paragraph (18)(B)</quote>; and</text></clause></subparagraph></paragraph><paragraph id="H681182E6C7F5475FB36248578C1FE5AA"><enum>(2)</enum><text>in subsection (o)—</text><subparagraph id="HC25B2CA074E4422B8C420324E5576CFB" display-inline="no-display-inline"><enum>(A)</enum><text>by redesignating paragraphs (19), (20), and (21) as paragraphs (20), (22), and (23), respectively;</text></subparagraph><subparagraph id="H4A6C0507CC274D37BD2F156CEF676D9D"><enum>(B)</enum><text>by inserting after paragraph (18) the following:</text><quoted-block id="H7F12927969CE45BD8D16AA136A062B85" style="OLC"><paragraph id="H2B71838BED824E0A92F881BB092B39FB"><enum>(19)</enum><text>evaluate whether a small business concern presents a risk to national security for any reason, through measures including—</text><subparagraph id="H468A7B3F63B946BDA82B6BA3F04DBB63"><enum>(A)</enum><text>the due diligence process required under subsection (vv);</text></subparagraph><subparagraph id="H639556CFC8A146C1B9ED46AD1D5C18DC"><enum>(B)</enum><text>disclosures submitted under this subsection; or</text></subparagraph><subparagraph id="HEB7830B28FAC4F4BA98437FE3511E7C3"><enum>(C)</enum><text>coordination with the Inspector General of the agency or the intelligence community (as defined under section 3 of the National Security Act of 1947 (<external-xref legal-doc="usc" parsable-cite="usc/50/3003">50 U.S.C. 3003</external-xref>));</text></subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block></subparagraph><subparagraph id="H5FEF0B6BAB3340D18FF955577FA88B55"><enum>(C)</enum><text>in paragraph (20), as so redesignated—</text><clause id="H02D792B3DCD1488C82D97CE3BA67BC8C"><enum>(i)</enum><text>by striking subparagraph (B);</text></clause><clause id="HC8715ABE8FD747958091D6ECB05A5BB6"><enum>(ii)</enum><text>by striking <quote>that—</quote> and all that follows through <quote>the small business concern submitting</quote> and inserting <quote>that the small business concern submitting</quote>;</text></clause><clause id="H83D245EEC7D2451EA2414185E66645FB"><enum>(iii)</enum><text>by redesignating clauses (i), (ii), and (iii) as subparagraphs (A), (B), and (C), respectively, and adjusting the margins accordingly;</text></clause><clause id="H26CC449E9F89492E800526FA7FFE9AA8"><enum>(iv)</enum><text>in subparagraph (B), as so redesignated, by striking <quote>or</quote> at the end;</text></clause><clause id="H28DA5B68E36D4318A1242C467C0A5140"><enum>(v)</enum><text>in subparagraph (C), as so redesignated, by striking <quote>and</quote> at the end; and</text></clause><clause id="HA9C4D685F8B9423980A9CBE9A2408C60"><enum>(vi)</enum><text>by adding at the end the following:</text><quoted-block id="H335F3A0FBC504BD3AE99C5ABF7435D4D" style="OLC"><subparagraph id="H2F8778D584CB4C28B41ED6B826C67708"><enum>(D)</enum><text>has a foreign risk connecting the small business concern to an entity, including any affiliates, spinouts, or subsidiaries of the entity, or individual on one or more of the following lists:</text><clause id="H40487A200F0F4A518400E9D652A05272"><enum>(i)</enum><text>the UFLPA Entity List maintained by the Department of Homeland Security;</text></clause><clause id="HD787B2A4EC714A0CA5D30337600F111C"><enum>(ii)</enum><text>the Non-SDN Chinese Military-Industrial Complex Companies List of the Office of Foreign Assets Control maintained by the Department of the Treasury;</text></clause><clause id="H32E082A68A7B419F99C91FB3450FDB68"><enum>(iii)</enum><text>the Section 889 Prohibition List established under section 889 of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 (<external-xref legal-doc="public-law" parsable-cite="pl/115/232">Public Law 115–232</external-xref>) and maintained by the Department of Defense;</text></clause><clause id="H203229E5B2F74AFBAFB8D59676D6F2E3"><enum>(iv)</enum><text>the list of Chinese Military companies required under section 1260H of the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021 (<external-xref legal-doc="public-law" parsable-cite="pl/116/283">Public Law 116–283</external-xref>) and maintained by the Department of Defense;</text></clause><clause id="H1744E89EC580464797ED2A9F0282D842"><enum>(v)</enum><text>the Military End User List maintained by the Bureau of Industry and Security of the Department of Commerce;</text></clause><clause id="H608BA64FE9904A409C683F0AC7CE843C"><enum>(vi)</enum><text>the Entity List maintained by the Bureau of Industry and Security of the Department of Commerce;</text></clause><clause id="H09A9C5DA680D469E9BE11874B33F671E"><enum>(vii)</enum><text>the List of Equipment and Services maintained by the Federal Communications Commission; and</text></clause><clause id="H6D3E3B532C954475968246D37D13549D"><enum>(viii)</enum><text>the Withhold Release Orders and Findings List maintained by U.S. Customs and Border Protection;</text></clause></subparagraph><subparagraph id="H143D7A7507EB40459355F13F51823565"><enum>(E)</enum><text>has a foreign risk with a primary source that is classified;</text></subparagraph><subparagraph id="H6C3B0E9BF7A34068B5AB7057D4261E01"><enum>(F)</enum><text>has a foreign risk or another national security risk not listed in statute or regulatory guidance that an agency determines warrants a denial; or</text></subparagraph><after-quoted-block>;</after-quoted-block></quoted-block></clause></subparagraph><subparagraph id="HC40C145CFF2E42009873CC057380D782"><enum>(D)</enum><text>by inserting after paragraph (20) the following:</text><quoted-block id="HE54E89B643324D0E85B0D277BD300BC4" style="OLC"><paragraph id="HA84FE05F70A845EC8FAA61508BA5EF50"><enum>(21)</enum><text>not, and any personnel of the Federal agency including technical points of contact shall not, communicate to an applicant prior to formal notification of an award decision that an application was denied due to a foreign risk;</text></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block></subparagraph><subparagraph id="HA6A8A50D08F54BD09E04CB1B1C5D5511"><enum>(E)</enum><text>in paragraph (23), as so redesignated—</text><clause id="H2A3169ADCB564D828BB39DD36B350EA4"><enum>(i)</enum><text>in subparagraph (B), by striking <quote>paragraph (20)(A)</quote> and inserting <quote>paragraph (22)(A)</quote>; and</text></clause><clause id="H44DD2FF405584010968E3BCB7AB93335"><enum>(ii)</enum><text>in subparagraph (C), by striking <quote>paragraph (20)(B)</quote> and inserting <quote>paragraph (22)(B)</quote>.</text></clause></subparagraph></paragraph></section><section id="HD7D58948F0F347168099F4552FFE75F0"><enum>403.</enum><header>Strengthening the due diligence program to assess security risks</header><text display-inline="no-display-inline">Section 9(vv)(2) of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/638">15 U.S.C. 638(vv)(2)</external-xref>) is amended—</text><paragraph id="H4F073D0FEB034965ACAB8740D18DE82D"><enum>(1)</enum><text>in subparagraph (B), by striking the period at the end and inserting <quote>; and</quote>; and</text></paragraph><paragraph id="HFD080A2355B941A5A512925D06096704"><enum>(2)</enum><text>by adding at the end the following:</text><quoted-block id="H5A3B6B2BE15A4AD5811C3589C86FB07A" style="OLC"><subparagraph id="HE561E10A191148FBAF0A07CB624A9727"><enum>(C)</enum><text>examine any relationship of a small business concern seeking an award to any entity or individual included on the lists, as published on the date of the closing of the solicitation, described under subsections (g)(16)(D) and (o)(20)(D).</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></section><section id="HDA364952A91E4B979DD6F3325B39614B"><enum>404.</enum><header>Strengthening agency recovery authority</header><text display-inline="no-display-inline">Section 9 of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/638">15 U.S.C. 638</external-xref>), as amended by this Act, is amended—</text><paragraph id="H99C833CC534C458193D98DA60F9EB0B3"><enum>(1)</enum><text>in subsection (g)(18), as redesignated by section 402—</text><subparagraph id="HC3171BB85CC245E8A3BC718173947D2D"><enum>(A)</enum><text>in the matter preceding subparagraph (A), by inserting <quote>, as adjusted for inflation according to the Consumer Price Index published by the Bureau of Labor Statistics,</quote> after <quote>amounts</quote>;</text></subparagraph><subparagraph id="H86A00AABD65E46559F3A1968E15179F5"><enum>(B)</enum><text>in subparagraph (A)—</text><clause id="HFCD90E5B84524AF3B6AB23DF22D1897E"><enum>(i)</enum><text>by inserting <quote>during the 10-year period beginning on the date of the award, or during a longer or indefinite period as determined by the head of the awarding agency as necessary for national security,</quote> before <quote>the small business concern</quote>; and</text></clause><clause id="HC20884994FC544A6A75338B93C4A0593"><enum>(ii)</enum><text>by striking <quote>or</quote> at the end;</text></clause></subparagraph><subparagraph id="HD8914C0A01E642CF8D2C628D0C9656FF"><enum>(C)</enum><text>in subparagraph (B)—</text><clause id="H56F6387DB81442A493CCEFDEBEAAE484"><enum>(i)</enum><text>by inserting <quote>during the 10-year period beginning on the date of the award, or during a longer or indefinite period as determined by the head of the awarding agency as necessary for national security,</quote> before <quote>there is a change</quote>; and</text></clause><clause id="HBFBA5D7BF2154633BA9A4DE729B010F7"><enum>(ii)</enum><text>by striking <quote>and</quote> at the end; and</text></clause></subparagraph><subparagraph id="H8F64DD36F1A841FF89A55CB3F52E4053"><enum>(D)</enum><text>by adding at the end the following:</text><quoted-block id="H1A31944D11614E178117C56CEB34310C" style="OLC"><subparagraph id="H56B562CF4DC44BC28494DCE9006797ED"><enum>(C)</enum><text>during the 5-year period beginning on the date of the award, or during a longer or indefinite period as determined by the head of the awarding agency as necessary for national security, the small business concern sells, leases, or provides (through joint research, technological licensing, or otherwise) intellectual property that was developed, wholly or in part, using an SBIR award to a foreign entity or individual unless the foreign entity or individual is incorporated in or a citizen of a country that is a member of the North Atlantic Treaty Organization or a major non-NATO ally, as described under section 2321k of title 22, United States Code; or</text></subparagraph><subparagraph id="H6DF5CD47827B4597A94E3C2ED347E553"><enum>(D)</enum><text>during the 10-year period beginning on the date of the award, or during a longer or indefinite period as determined by the head of the awarding agency as necessary for national security, the small business concern sells, leases, or provides (through joint research, technological licensing, or otherwise) intellectual property that was developed, wholly or in part, using an SBIR award to an entity, government, or individual in a foreign country of concern; and</text></subparagraph><after-quoted-block>; and</after-quoted-block></quoted-block></subparagraph></paragraph><paragraph id="HE7121C3DA2E34C15829D5A6EDB813980"><enum>(2)</enum><text>in subsection (o)(22), as redesignated by section 402—</text><subparagraph id="H113FC9B5410A4CF2A7EBE8BA9D716841"><enum>(A)</enum><text>in the matter preceding subparagraph (A), by inserting <quote>, as adjusted for inflation according to the Consumer Price Index published by the Bureau of Labor Statistics,</quote> after <quote>amounts</quote>;</text></subparagraph><subparagraph id="H88BE1BB751F14AE08D8067FB006F3144"><enum>(B)</enum><text>in subparagraph (A)—</text><clause id="HD4A884219B9D407AA1B6A7A3CDF7960B"><enum>(i)</enum><text>by inserting <quote>during the 10-year period beginning on the date of the award, or during a longer or indefinite period as determined by the head of the awarding agency as necessary for national security,</quote> before <quote>the small business concern</quote>; and</text></clause><clause id="H890E551DC19346619AB4AF5AE28A06A9"><enum>(ii)</enum><text>by striking <quote>or</quote> at the end;</text></clause></subparagraph><subparagraph id="H9DA2B72C39F0438999EEC75CAF3A937F"><enum>(C)</enum><text>in subparagraph (B)—</text><clause id="H84CD5EA549B24112B58B1823B938D4AF"><enum>(i)</enum><text>by inserting <quote>during the 10-year period beginning on the date of the award, or during a longer or indefinite period as determined by the head of the awarding agency as necessary for national security,</quote> before <quote>there is a change</quote>; and</text></clause><clause id="H3ADBD8C290834FF991AF57B71F72A4D1"><enum>(ii)</enum><text>by striking <quote>and</quote> at the end; and</text></clause></subparagraph><subparagraph id="H4798D6ECBE4E4575BC194C7772490D37"><enum>(D)</enum><text>by adding at the end the following:</text><quoted-block id="H4D6AD0A51AC14AFEA83E12E4C7F52B65" style="OLC"><subparagraph id="HF50D2F955B484B52AA80BEFECDC1E132"><enum>(C)</enum><text>during the 5 year period beginning on the date of the award, or during a longer or indefinite period as determined by the head of the awarding agency as necessary for national security, the small business concern sells, leases, or provides (through joint research, technological licensing, or otherwise) intellectual property that was developed, wholly or in part, using an STTR award to a foreign entity or individual unless the foreign entity or individual is incorporated in or a citizen of a country that is a member of the North Atlantic Treaty Organization or a major non-NATO ally, as described under section 2321k of title 22, United States Code; or</text></subparagraph><subparagraph id="H381C09AF8A374AF9A5D7657B53784727"><enum>(D)</enum><text>during the 10-year period beginning on the date of the award, or during a longer or indefinite period as determined by the head of the awarding agency as necessary for national security, the small business concern sells, leases, or provides (through joint research, technological licensing, or otherwise) intellectual property that was developed, wholly or in part, using an STTR award to an entity, government, or individual in a foreign country of concern; and</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph></section><section id="H44AE5D8307E6478F853DAD7BBED20800"><enum>405.</enum><header>Best practices on investor informational rights</header><text display-inline="no-display-inline">Section 9(uu) of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/638">15 U.S.C. 638(uu)</external-xref>) is amended to read as follows:</text><quoted-block id="H5B93D519A4F943E4852ECC5ED51D007A" style="OLC"><subsection id="H0A92BB3814A1445F8CE284288E3DB3E2"><enum>(uu)</enum><header>Best practices on investor informational rights</header><paragraph id="H7671C2C7EEBE45F9BD459DFEBE315022"><enum>(1)</enum><header>In general</header><text>The Administrator, in coordination with the heads of all agencies with an SBIR program, the Director of the White House Office of Science and Technology Policy, and the Committee on Foreign Investment in the United States, shall develop best practices to be shared with each recipient of an SBIR or STTR award by the agency granting the award.</text></paragraph><paragraph id="H1DD593D4ED2345A7B6157723E8492C66"><enum>(2)</enum><header>Contents</header><text>The best practices developed under paragraph (1) shall include recommendations for protecting the proprietary technology and intellectual property of the small business concern from being shared unintentionally to foreign individuals and entities through informational rights of limited partners in venture capital, hedge fund, or private equity firms that have investments in SBIR or STTR recipients.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></section><section id="HFA7FAAD89B884D59858FA69A5727FE49"><enum>406.</enum><header>GAO report</header><text display-inline="no-display-inline">Paragraph (4) of section 4(b) of the SBIR and STTR Extension Act of 2022 (<external-xref legal-doc="public-law" parsable-cite="pl/117/183">Public Law 117–183</external-xref>; 136 Stat. 2194) is amended to read as follows:</text><quoted-block id="H2B25759DFB2D4235B704C5C665DBC4E9" style="OLC"><paragraph id="H64FF3AD54F08461CA2F88879AC43C9D0"><enum>(4)</enum><header>G<enum-in-header>AO</enum-in-header> report</header><subparagraph id="H33B21A55122040A79A4D17630281D6C9"><enum>(A)</enum><header>In general</header><text>Not later than 18 months after the date of enactment of the INNOVATE Act, and annually thereafter under September 30, 2028, the Comptroller General of the United States shall conduct a study and submit to the Committee on Small Business and Entrepreneurship and the Committee on Armed Services of the Senate and the Committee on Small Business, the Committee on Armed Services, and the Committee on Science, Space, and Technology of the House of Representatives a report on the implementation and best practices of the due diligence programs established under section 9(vv) of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/638">15 U.S.C. 638(vv)</external-xref>) across Federal agencies required to establish an SBIR or STTR program.</text></subparagraph><subparagraph id="HF23A1ACE65304548A12D66BA3AE764EF"><enum>(B)</enum><header>Study</header><text>The study shall evaluate—</text><clause id="HBB97AED3C365471D90E90AA7794C04CB"><enum>(i)</enum><text>the effectiveness of each Federal agency that participates in the SBIR program or STTR program in identifying—</text><subclause id="HE461F43C73FB4B63A0CFD48C15300A1D"><enum>(I)</enum><text>enhanced risk in cybersecurity practices in SBIR and STTR projects;</text></subclause><subclause id="H9A325253344D441AA3C1B44BFB45CE28"><enum>(II)</enum><text>enhanced risk in patents, including co-authorship with academics in foreign countries of concern in SBIR and STTR projects;</text></subclause><subclause id="H1ECD8EF5B49146CAAF4EAE4AE3C4E029"><enum>(III)</enum><text>enhanced foreign influence risk among employees of small business concerns involved in SBIR and STTR projects;</text></subclause><subclause id="H10BF722DFE814D7BA5AE648107E0FEC9"><enum>(IV)</enum><text>foreign ownership of a small business concern seeking an award, including the financial ties and obligations (which shall include surety, equity, and debt obligations) in SBIR and STTR projects; and</text></subclause><subclause id="H9E97004B17CA4660AF6157F7A266E9BB"><enum>(V)</enum><text>security risks among applicants to the SBIR program or the STTR program, including connections to an entity, including any affiliates, spinouts, or subsidiaries of the entity, or individual on one or more of the lists referenced in paragraph (16)(D) of section 9(g) of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/638">15 U.S.C. 638(g)</external-xref>);</text></subclause></clause><clause id="HD6D31B0241B644B1AC2271E9B556A958"><enum>(ii)</enum><text>by year, the number of proposals and number of small business concerns with foreign risks by each Federal agency that participates in the SBIR program or STTR program, including a delineation of how many of those small business concerns have previously received an award under the SBIR program or STTR program and the nature of those foreign risks made by each Federal agency; and</text></clause><clause id="HAE16E83F88974FB89CC0B6A340F2F9C4"><enum>(iii)</enum><text>the extent to which the Inspector General and counterintelligence authorities of each Federal agency that participates in the SBIR or STTR program effectively conducts investigations, audits, inspections, and outreach relating to the due diligence program to assess security risks in the SBIR or STTR program.</text></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></section><enum>V</enum><header>Simplifying SBIR–STTR Standards</header><section id="H1CB916F64CD54DB4B43501E3AD2FA798"><enum>501.</enum><header>Improving direct to Phase II authorities</header><text display-inline="no-display-inline">Section 9(cc) of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/638">15 U.S.C. 638(cc)</external-xref>) is amended to read as follows:</text><quoted-block id="HEF467A1C8587494A8C58FE71EE67C210" style="OLC"><subsection id="H77EC267925084E84BD8B1277EE5EFE41"><enum>(cc)</enum><header>Phase flexibility</header><paragraph id="HCB734FD0004749AE920124E2FC6C2B57"><enum>(1)</enum><header>Awarding a phase ii award absent a phase i award</header><text display-inline="yes-display-inline">Each agency with an SBIR program may provide to a small business concern an award under Phase II of the SBIR program with respect to a project, without regard to whether the small business concern was provided an award under Phase I of an SBIR program with respect to such project, if the head of the agency determines that the small business concern has completed the determinations described in subsection (e)(4)(A) with respect to such project despite not having been provided a Phase I award.</text></paragraph><paragraph id="H57D7B1DF1AB541128FF057753F92FF9C"><enum>(2)</enum><header>Limitations on awards</header><subparagraph id="H57E9B71A717A403EA5B1AE5D329DCF84"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">Except as provided in subparagraph (B), the head of each agency with an SBIR program may award not more than 10 percent of the funds allocated for the SBIR program of the agency in a given fiscal year under the authority of this subsection.</text></subparagraph><subparagraph id="H240974E067824EA8BDDB71C7113BC69D"><enum>(B)</enum><header>National institutes of health and department of defense</header><text display-inline="yes-display-inline">The Director of the National Institutes of Health may award not more than 30 percent of the funds allocated for the SBIR program of the National Institutes of Health in a given fiscal year and the Secretary of Defense may award not more than 30 percent of the funds allocated for the SBIR program of each component in the Department of Defense in a given fiscal year under the authority of this subsection.</text></subparagraph><subparagraph id="H9DC3516D0136480789331AAD97474140"><enum>(C)</enum><header>Limit on eligibility for awards</header><text>An agency may not make an award under this subsection to a small business concern, including its affiliates, spinouts, and subsidiaries, that has received more than 25 Phase II awards.</text></subparagraph><subparagraph id="H78F85E932A9E46A9AB03DE8EEAC5D2FD"><enum>(D)</enum><header>Limit on number of awards</header><text>An agency may make not more than 25 awards under this subsection to a small business concern, including its affiliates, spinouts, and subsidiaries.</text></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></section><section id="H43499B5F52824A3992DDD9F4D0220937"><enum>502.</enum><header>Improving SBIR and STTR data collection</header><subsection id="H1F6952B83CBB43E9BEE4C32F8D5CB7C2"><enum>(a)</enum><header>Additional data fields in <enum-in-header>SBIR</enum-in-header> database</header><text>Section 9(k)(1) of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/638">15 U.S.C. 638(k)(1)</external-xref>) is amended—</text><paragraph id="H6367168BF9BE415AAE998217BB8A7124"><enum>(1)</enum><text>in subparagraph (E)(iv), by striking <quote>and</quote> at the end;</text></paragraph><paragraph id="HCA5ACC57EBB74C1EAE1A32082752004E"><enum>(2)</enum><text>in subparagraph (F)(v), by striking the period at the end and inserting <quote>; and</quote>; and</text></paragraph><paragraph id="H297DB2AC55A8445A99FF1C84914E65FB"><enum>(3)</enum><text>by adding at the end the following:</text><quoted-block id="H7802D5EA1FE24EEC9EB935966454C562" style="OLC"><subparagraph id="H08348A41C87E4AFAB253A9F476679CE6"><enum>(G)</enum><text>for each award granted, whether the award is classified or designated as—</text><clause id="H6C70FE32FB01433FB7BFC11A4621CE10"><enum>(i)</enum><text>Phase 1A, under subsection (pp);</text></clause><clause id="H426B5BFF15B34F7A9E760453393FF8D3"><enum>(ii)</enum><text>direct to Phase II, under subsection (cc);</text></clause><clause id="H90568D6F6644434EB4A2BB07EB067A62"><enum>(iii)</enum><text>subsequent Phase II, under subsection (bb)(1);</text></clause><clause id="HDB187883D70C42689691A68CA4C6981E"><enum>(iv)</enum><text>strategic breakthrough award under subsection (ff)(3);</text></clause><clause id="HA0CB5674951C41FF9712FD29043D9D90"><enum>(v)</enum><text>Phase III prime contract award; or</text></clause><clause id="H299A88F02BCC4FA4A88B63BED9A52FC0"><enum>(vi)</enum><text>Phase III subcontract award.</text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection id="HF7CD8EEC77CE47E89C0B69A61D80EA29"><enum>(b)</enum><header>Improving <enum-in-header>FPDS</enum-in-header> data tracking</header><paragraph id="H70D2FE838F8F4FC0B1F4E8E6878E04F3"><enum>(1)</enum><header>In general</header><text>The Administrator of General Services shall update the Federal Procurement Data System described in section 1122(a)(4) of title 41, United States Code, or any successor system, to—</text><subparagraph id="H9621F460D30346B2B0FD4614F9C0BAE3"><enum>(A)</enum><text>require reporting on whether an award under the SBIR or STTR program is classified or designated as—</text><clause id="HAF3EEC4C7F9D448DA8140DE8F9375A71"><enum>(i)</enum><text>Phase 1A, under subsection (pp) of section 9 of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/638">15 U.S.C. 638</external-xref>), as amended by this Act;</text></clause><clause id="H1F31E8FFE6A74AC7A9D1440F6E4CAD7E"><enum>(ii)</enum><text>direct to Phase II, under subsection (cc) of such section;</text></clause><clause id="HDCC8371A9E9D44C589C7D34C70D005B5"><enum>(iii)</enum><text>subsequent Phase II, under subsection (bb)(1) of such section;</text></clause><clause id="H6096DD7F8BAC4C7EA843A98B6BE349E6"><enum>(iv)</enum><text>a strategic breakthrough award under subsection (ff)(3) of such section;</text></clause><clause id="H272B02ED271B4526907D86AA71737298"><enum>(v)</enum><text>a Phase III prime contract award; or</text></clause><clause id="H7A038BCF72434ECF84D6D06A616BF997"><enum>(vi)</enum><text>a Phase III subcontract award;</text></clause></subparagraph><subparagraph id="H50C306CADB3F4A0A9760DA8EC5E92902"><enum>(B)</enum><text>require reporting on whether a contract is designated as a Phase III contract; and</text></subparagraph><subparagraph id="H292E640EE25F40E7AA65FC19AA94ABB6"><enum>(C)</enum><text>allow a Government contracting officer, when recording a Phase II or Phase III contract following on from work done by a small business concern during a Phase I or Phase II award to reference an SBIR or STTR contract identification number for relevant prior SBIR or STTR work done.</text></subparagraph></paragraph><paragraph id="H3CB8DA8D484B4C97A33245A132D5131F"><enum>(2)</enum><header>No new funds</header><text>No additional funds are authorized to be appropriated for the purpose of carrying out this subsection.</text></paragraph></subsection></section><section id="H827CF57258624E1BBC762E948438542D"><enum>503.</enum><header>Streamlining program administration</header><text display-inline="no-display-inline">Section 9 of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/638">15 U.S.C. 638</external-xref>), as amended by this Act, is amended—</text><paragraph id="HB0581EBAB6434F6697AC7E8E2FC0C908"><enum>(1)</enum><text>in subsection (bb)(3), by inserting <quote>or another component of the same Federal agency</quote> after <quote>another Federal agency</quote>;</text></paragraph><paragraph id="HD6E608AB89C84B15932CE5EEDF0F144C"><enum>(2)</enum><text>in subsection (gg)—</text><subparagraph id="HACCDF62DDF1E47FD99EBB9C5C12E457A"><enum>(A)</enum><text>in the heading, by striking <quote><header-in-text level="subsection" style="OLC">Pilot Program</header-in-text></quote> and inserting <quote><header-in-text level="subsection" style="OLC">Commercialization Readiness Program</header-in-text></quote>;</text></subparagraph><subparagraph id="HD1032A72C0EA4068A994D9B1614985D9"><enum>(B)</enum><text>by striking <quote>pilot</quote> each place the term appears;</text></subparagraph><subparagraph id="H354E0D44434C47CA9896B7D05958435D"><enum>(C)</enum><text>by striking paragraph (7);</text></subparagraph><subparagraph id="H17860545075642A188F4883384DECA6F"><enum>(D)</enum><text>by redesignating paragraph (8) as paragraph (7); and</text></subparagraph><subparagraph id="H386E25E3C20448C0961897F5FFD34521"><enum>(E)</enum><text>by amending paragraph (7), as so redesignated, to read as follows:</text><quoted-block id="H3741203AAD36484AAD3F5C7F20F9E7AE" style="OLC"><paragraph id="HFD6883E5136C41C082F90EA83BE201C3"><enum>(7)</enum><header>Definition</header><text>In this subsection, the term <term>covered Federal agency</term>—</text><subparagraph id="HD2FD588927B14840806B95290500C34D"><enum>(A)</enum><text>means a Federal agency participating in the SBIR program or the STTR program; and</text></subparagraph><subparagraph id="H545801B80C764B47ADBA10B96E464F1A"><enum>(B)</enum><text>does not include the Department of Defense.</text></subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block></subparagraph></paragraph><paragraph id="HA4C1E9B96F934C2BB390C1D809181C7D"><enum>(3)</enum><text>in subsection (hh)—</text><subparagraph id="HEA785852353E4C2FB451EA01B20EB28B"><enum>(A)</enum><text display-inline="yes-display-inline">by striking <quote><header-in-text level="subsection" style="OLC">Funding.</header-in-text>—</quote> and all that follows through <quote>Federal agencies participating</quote> and inserting <quote><header-in-text level="subsection" style="OLC">Funding.</header-in-text>—Federal agencies participating</quote>; and</text></subparagraph><subparagraph id="HAE509438359742D98CCE38DC66FA2365"><enum>(B)</enum><text>by striking paragraph (2);</text></subparagraph></paragraph><paragraph id="H02782096C11141CE85305667DC94360F"><enum>(4)</enum><text>in subsection (ii)(2)(B)—</text><subparagraph id="HBF0E78ADBCAF4415A9577184E4B9E8E1"><enum>(A)</enum><text>in clause (ii), by adding <quote>and</quote> at the end;</text></subparagraph><subparagraph id="H1F017089FDFA43D9B15C376C217A19AC"><enum>(B)</enum><text>in clause (iii), by striking <quote>; and</quote> and inserting a period; and</text></subparagraph><subparagraph id="H20E87EC67C65448BBB83D7EEF2E7C41A"><enum>(C)</enum><text>by striking clause (iv);</text></subparagraph></paragraph><paragraph id="H3D33426AF3344B0487752581D3AE203A"><enum>(5)</enum><text>in subsection (qq)(3), by striking subparagraph (I);</text></paragraph><paragraph id="HC6C4745644114A9F9009987C7E7DC972"><enum>(6)</enum><text>in subsection (vv)(3), by striking subparagraph (C);</text></paragraph><paragraph id="H1A386AA630AC4469B2D062BBCA52472C"><enum>(7)</enum><text>in subsection (yy)—</text><subparagraph id="H30AEAD964E8A47869083CAEF8B2F0357"><enum>(A)</enum><text>in the subsection heading, by striking <quote><header-in-text level="subsection" style="OLC">Pilot</header-in-text></quote>;</text></subparagraph><subparagraph id="HE5C6EDB11BC94F7B8E0AE5E2183F18D4"><enum>(B)</enum><text display-inline="yes-display-inline">by striking <quote><header-in-text level="subsection" style="OLC">STTR Program.—</header-in-text></quote> and all that follows through <quote>Not later than</quote> and inserting <quote><header-in-text level="subsection" style="OLC">STTR Program.</header-in-text>—Not later than</quote>;</text></subparagraph><subparagraph id="HFCD67241D3C44EDAA3FE0F688C583E20"><enum>(C)</enum><text>by striking paragraph (2); and</text></subparagraph><subparagraph id="HA2458A2569C14ACEA74648AA84264647"><enum>(D)</enum><text>by striking <quote>pilot</quote>; and</text></subparagraph></paragraph><paragraph id="HCC5FA2FF01AC4D668EFAA12D7D6BFAF1"><enum>(8)</enum><text>in subsection (zz)—</text><subparagraph id="H9DC15CC9BE73486FA663D5117A9092CC"><enum>(A)</enum><text>in the subsection heading, by striking <quote><header-in-text level="subsection" style="OLC">Pilot</header-in-text></quote>;</text></subparagraph><subparagraph id="HEF3B85A3997246DD93D47134175C4AEE"><enum>(B)</enum><text>in paragraph (1)—</text><clause id="HB84D9D694C4B46A595F82D8C7A633693"><enum>(i)</enum><text>in the paragraph heading, by striking <quote><header-in-text level="paragraph" style="OLC">pilot</header-in-text></quote> and inserting <quote><header-in-text level="paragraph" style="OLC">program</header-in-text></quote>;</text></clause><clause id="H323199C1D1FC4B6880480C7F8CF72451"><enum>(ii)</enum><text>in subparagraph (B), by striking <quote>3.25</quote> and inserting <quote>3.50</quote>; and</text></clause><clause id="HA9DC15480C6342E78280BF00DA7013F7"><enum>(iii)</enum><text>in subparagraph (C), by striking <quote>0.46</quote> and inserting <quote>0.21</quote>;</text></clause></subparagraph><subparagraph id="H5DF5E4F41B294139B50F921D094A906A"><enum>(C)</enum><text>by striking paragraph (3); and</text></subparagraph><subparagraph id="H9F2BF15A863846A086281F785B85AEF3"><enum>(D)</enum><text>by striking <quote>pilot</quote> each place the term appears.</text></subparagraph></paragraph></section><section id="H3098DB7E890A45969587F0FE74C98E68"><enum>504.</enum><header>Extending SBIR and STTR authorization</header><text display-inline="no-display-inline">Section 9 of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/638">15 U.S.C. 638</external-xref>), as amended by this Act, is amended—</text><paragraph id="H08C90451A8E54E3CB3AB9F1AC4B0FF99"><enum>(1)</enum><text>in subsection (m), by striking <quote>2025</quote> and inserting <quote>2028</quote>; and</text></paragraph><paragraph id="H54616CAB0F74455E80C7F9ADBAB7DC2A"><enum>(2)</enum><text>in subsection (n)(1)(A), by striking <quote>2025</quote> and inserting <quote>2028</quote>.</text></paragraph></section><enum>VI</enum><header>Miscellaneous</header><section id="H74106D66D8E44705A94846BE12E42C80" display-inline="no-display-inline" commented="no"><enum>601.</enum><header>Technical amendments</header><text display-inline="no-display-inline">Section 9 of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/638">15 U.S.C. 638</external-xref>) is amended—</text><paragraph id="HE7EDE59D6FA949C4AD75B19ECEDC5983" commented="no"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>small-business concerns</quote> each place it appears and inserting <quote>small business concerns</quote>;</text></paragraph><paragraph id="H4EFDE73C51EC4A6E962F5FA5BED13A9B" commented="no"><enum>(2)</enum><text display-inline="yes-display-inline">by striking <quote>Committee on Small Business of the Senate</quote> each place it appears and inserting <quote>Committee on Small Business and Entrepreneurship of the Senate</quote>;</text></paragraph><paragraph id="H01D65BBCFA634C3984F0B8FEDBDE4E3F" commented="no"><enum>(3)</enum><text display-inline="yes-display-inline">by striking <quote>Committee on Science and the</quote> each place it appears and inserting <quote>Committee on Science, Space, and Technology and the</quote>;</text></paragraph><paragraph id="HC4C2836A575F4EB6AEB9ED2183BCCC66" commented="no"><enum>(4)</enum><text>in subsection (d)(2), by striking <quote>small-business firms</quote> and inserting <quote>small business concerns</quote>;</text></paragraph><paragraph id="H3B5335CEBD8B483BADDC32A08BDC40E6" commented="no"><enum>(5)</enum><text>in subsection (e)(3), by inserting <quote>concern</quote> after <quote>small business</quote>;</text></paragraph><paragraph id="H30C23D4644104CE4803A7E264141579F" commented="no"><enum>(6)</enum><text>in subsection (g)(4)(A), by striking <quote>SBIR proposals</quote> and inserting <quote>SBIR solicitations</quote>;</text></paragraph><paragraph id="HC41FE0966A3745EFB83311850A38E730" commented="no"><enum>(7)</enum><text>in subsection (g)(10), by striking <quote>,,</quote> and inserting <quote>,</quote>;</text></paragraph><paragraph id="H0C22D00BE5E743E1A38DCF000FE914D8" commented="no"><enum>(8)</enum><text display-inline="yes-display-inline">in subsection (g)(13)(A), by inserting <quote>malign</quote> before <quote>foreign talent recruitment program</quote>;</text></paragraph><paragraph id="H45D5F8596C6B45AE870BED83F2B8F84E" commented="no"><enum>(9)</enum><text display-inline="yes-display-inline">in subsection (o)(8), by striking <quote>,,</quote> and inserting <quote>,</quote>;</text></paragraph><paragraph id="HEA45891C168446C48251F1A320B31B29" display-inline="no-display-inline" commented="no"><enum>(10)</enum><text display-inline="yes-display-inline">in subsection (o)(17)(A), by inserting <quote>malign</quote> before <quote>foreign talent recruitment program</quote>; and</text></paragraph><paragraph id="HF5502449FD364D6CBAF6EB5D114D3341" commented="no"><enum>(11)</enum><text>in subsection (vv)(2)(B), by inserting <quote>subsection</quote> before <quote>(g)(13)</quote>.</text></paragraph></section><section id="H7B56E522A667478BBA6C8AD9ACDAD0D1" display-inline="no-display-inline" section-type="subsequent-section" commented="no"><enum>602.</enum><header>Repeals</header><subsection id="H6A904F8D58F74694810C73281A8635D4" commented="no"><enum>(a)</enum><header>Repeal of obsolete provision</header><text display-inline="yes-display-inline">Subsection (tt) of section 9 of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/638">15 U.S.C. 638(tt)</external-xref>) is repealed.</text></subsection><subsection id="HD06214B5FEE444FFBE62F9F0EEB89982" commented="no"><enum>(b)</enum><header>Repeal of redundant provision</header><text display-inline="yes-display-inline">Subsection (oo) section 9 of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/638">15 U.S.C. 638(oo)</external-xref>) is repealed.</text></subsection></section><section id="HCDEFF5F6CF954756B299ADE30B7C2D5E"><enum>603.</enum><header>Severability</header><text display-inline="no-display-inline">If any provision of this Act, or the application of such provision to any person or circumstance, is held to be invalid, the remainder of the Act, and the application of the remaining provisions, shall not be affected.</text></section>