117 S853 IS: This Act may be cited as the
U.S. Senate
2025-03-05
text/xml
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 theInvesting 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.TITLE III—Streamlining Participation in the SBIR and STTR ProgramsSec. 301. Definition of 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 Commercialization StandardsSec. 501. Streamlining transition and commercialization rate benchmarks.Sec. 502. Improving direct to Phase II authorities.Sec. 503. Improving SBIR-STTR data collection.Sec. 504. Streamlining program administration.Sec. 505. Extending SBIR and STTR authorization.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 commented="no" display-inline="no-display-inline" id="id3390efabaaee42b5bac0fd7775edaf7f"><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 commented="no" display-inline="no-display-inline" id="id0bef3d8870a840f08692bce7e1b0321a"><enum>(1)</enum><text>in subsection (e)—</text><subparagraph commented="no" display-inline="no-display-inline" id="idee16b1e7363a47e295a87f72638a9d5b"><enum>(A)</enum><text display-inline="yes-display-inline">in paragraph (6)—</text><clause commented="no" display-inline="no-display-inline" id="id328315bf991f46a888d348da48c5f5e3"><enum>(i)</enum><text display-inline="yes-display-inline">in subparagraph (A), by adding <quote>and</quote> at the end; and</text></clause><clause commented="no" display-inline="no-display-inline" id="id6b24c600583c4a0398152eca44f7a93c"><enum>(ii)</enum><text>by striking subparagraphs (B) and (C) and inserting the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id286E07CBD7344836A1D079E06934FEF3"><subparagraph commented="no" display-inline="no-display-inline" id="id880a8558667f4a03b9aa49de07c484a5"><enum>(B)</enum><text>opportunities for follow-on funding in Phases II and III of the SBIR program;</text></subparagraph><after-quoted-block>; and</after-quoted-block></quoted-block></clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id7de3cfce8c1c4e9c9c08f6514ce0d8c1"><enum>(B)</enum><text display-inline="yes-display-inline">in paragraph (7)—</text><clause commented="no" display-inline="no-display-inline" id="idFD409FF3834048C8B423159E5750789A"><enum>(i)</enum><text>by striking <quote>40</quote> and inserting <quote>50</quote>; and</text></clause><clause id="id06299F767B134316A05B0BAA8E05D749" commented="no" display-inline="no-display-inline"><enum>(ii)</enum><text>by striking <quote>30</quote> and inserting <quote>20</quote>;</text></clause></subparagraph></paragraph><paragraph id="id9ea6af393fd747a2a49fe375355746c9"><enum>(2)</enum><text>in subsection (f)(1)—</text><subparagraph commented="no" display-inline="no-display-inline" id="idd2d2cbad19dc42cbb0b41d0edd40de49"><enum>(A)</enum><text display-inline="yes-display-inline">in subparagraph (H), by striking <quote>and</quote> at the end;</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id7c2a481fff8548ea92e5a6b9a6f7d165"><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 commented="no" display-inline="no-display-inline" id="id0340eed6ec7c461390a572c8ced7dd92"><enum>(C)</enum><text>by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id3D8469BF823748D8A86EEAAA3EB29450"><subparagraph commented="no" display-inline="no-display-inline" id="id5450b81bad844e7ba773e146b8165a5f"><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 commented="no" display-inline="no-display-inline" id="id0fc5406d5d96420fa3b786545df7dd87"><enum>(3)</enum><text>in subsection (n)—</text><subparagraph commented="no" display-inline="no-display-inline" id="iddf5beb763d7949368c905d49a6cd5ed8"><enum>(A)</enum><text display-inline="yes-display-inline">in paragraph (1)(B)—</text><clause commented="no" display-inline="no-display-inline" id="id09955f466a0e48ebb204953def33b876"><enum>(i)</enum><text display-inline="yes-display-inline">in clause (iv), by striking <quote>and</quote> at the end;</text></clause><clause commented="no" display-inline="no-display-inline" id="id17a045879e2e42ba94194f42ef71dde7"><enum>(ii)</enum><text>in clause (v), by striking <quote>and each fiscal year thereafter.</quote> and inserting <quote>; and</quote>; and</text></clause><clause commented="no" display-inline="no-display-inline" id="id9efeada2acd84fea8142fd0596fa6627"><enum>(iii)</enum><text>by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="idA4931BE286A54242A306E0323714053C"><clause commented="no" display-inline="no-display-inline" id="idb00d77a09cc14f27bbb4ec3da05a2e3b"><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></clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id51081ba0352045c0bbef429c00a3c6f2"><enum>(B)</enum><text>by redesignating paragraphs (2) and (3) as paragraphs (3) and (4), respectively; and</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id1f1a81ee03894d2195a9a7938b94eb72"><enum>(C)</enum><text>by inserting after paragraph (1) the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id9800ADE96FBA4CEEBAB1E71EAD658ACC"><paragraph commented="no" display-inline="no-display-inline" id="id62eba93b5a4c44be8d8ec8fce24359e2"><enum>(2)</enum><header>Purpose of STTR program</header><subparagraph commented="no" display-inline="no-display-inline" id="iddc79b049506947618144bbf6c5ec933e"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text>Each Federal agency shall use its STTR budget to fund small business concerns conducting fundamental, basic, or other scientific research that stands to benefit most from partnerships with eligible research institutions. </text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id087d7940af5a4bf7b97f590407a0fb66"><enum>(B)</enum><header>DoD and NASA</header><text display-inline="yes-display-inline">The Department of Defense and the National Aeronautics and Space Administration shall use their STTR budget to solely fund research at technology readiness levels 1, 2, and 3.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph></section><section commented="no" display-inline="no-display-inline" id="ide7df4b0d5502447cb46a30d3858e0363"><enum>102.</enum><header>Phase II strategic breakthrough funding</header><subsection commented="no" display-inline="no-display-inline" id="id23742118c2db44488b65a7afee3deed1"><enum>(a)</enum><header display-inline="yes-display-inline">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>), as amended by this Act, is amended—</text><paragraph commented="no" display-inline="no-display-inline" id="id8a23a76ddd5b4cdf849ff69315dc0b1f"><enum>(1)</enum><text display-inline="yes-display-inline">by redesignating subsection (y) as paragraph (3), adjusting the margins accordingly, and moving it so as to appear in subsection (ff) after paragraph (2);</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id458cd542eb9648b18257d03be3b4b661"><enum>(2)</enum><text>in subsection (aa), by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id51C3A9432BC448EAA5726D851761D53B"><paragraph id="ide3556793287d456aae1031bed121a616"><enum>(6)</enum><header>Strategic breakthrough allocation</header><text>The Department of Defense or its components 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.</text></paragraph><after-quoted-block>;</after-quoted-block></quoted-block></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idc93ce2dfdb9a4cd1a8c4a52de66356e6"><enum>(3)</enum><text>in subsection (ff)—</text><subparagraph commented="no" display-inline="no-display-inline" id="id8b95d60582a84c8f925f4f7af80dbd98"><enum>(A)</enum><text display-inline="yes-display-inline">in the subsection heading, by striking <quote><header-in-text style="OLC" level="subsection">and STTR</header-in-text></quote> and inserting <quote><header-in-text style="OLC" level="subsection">Phase II</header-in-text></quote>;</text></subparagraph><subparagraph id="idb667954e95334d268ddc9aacaa5e79df" commented="no" 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 commented="no" display-inline="no-display-inline" id="id1f3a8735c3d24d7b9ff10308a3a6682c"><enum>(C)</enum><text display-inline="yes-display-inline">in paragraph (3), as so redesignated—</text><clause commented="no" display-inline="no-display-inline" id="id0de9c371c76f435b97cb844f712df987"><enum>(i)</enum><text display-inline="yes-display-inline">in the paragraph heading, by striking <quote><header-in-text style="OLC" level="paragraph">Commercialization Readiness Program</header-in-text></quote> and inserting <quote><header-in-text style="OLC" level="paragraph">Strategic Breakthrough Awards</header-in-text></quote>;</text></clause><clause commented="no" display-inline="no-display-inline" id="id5e9358d77a254807a1b52761cb3e6410"><enum>(ii)</enum><text display-inline="yes-display-inline">in subparagraph (A), as so redesignated—</text><subclause commented="no" display-inline="no-display-inline" id="id507aab32400b4f7b877320d30f6dd793"><enum>(I)</enum><text display-inline="yes-display-inline">in the first sentence, by striking <quote>create and administer a <quote>Commercialization Readiness Program</quote></quote> and inserting <quote>provide funding</quote>; and</text></subclause><subclause commented="no" display-inline="no-display-inline" id="idd4aa4fa40d784c57b895f0f8de1867a3"><enum>(II)</enum><text>in the second sentence, by striking <quote>create and administer a Commercialization Program under this subsection</quote> and inserting <quote>provide funding under this paragraph</quote>;</text></subclause></clause><clause commented="no" display-inline="no-display-inline" id="idba137264912e4ebf8150e10ac7af0ec2"><enum>(iii)</enum><text>in subparagraph (B), as so redesignated—</text><subclause commented="no" display-inline="no-display-inline" id="ide71880d7d22744ab9bb2e50460f455c6"><enum>(I)</enum><text display-inline="yes-display-inline">in the first sentence, by striking <quote>In carrying out the Commercialization Readiness Program</quote> and inserting the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="idB83E6882C7454F69828B8C8078ADA886"><clause commented="no" display-inline="no-display-inline" id="iddccaad75231d4205bd09f2701ce6001a"><enum>(i)</enum><header>In general</header><text>In carrying out this paragraph</text></clause><after-quoted-block>; </after-quoted-block></quoted-block></subclause><subclause commented="no" display-inline="no-display-inline" id="idf608e5ec60e943e1b1f695cf2c57baed"><enum>(II)</enum><text>in clause (i), as so designated—</text><item commented="no" display-inline="no-display-inline" id="idc8a07e6d9f004f298ca7422a6d79bb1d"><enum>(aa)</enum><text display-inline="yes-display-inline">by striking <quote>shall identify</quote> and inserting </text><quoted-block style="OLC" display-inline="yes-display-inline" id="idB69DB0B7295843E59EF6742640093D0B"><text>shall—</text><subclause commented="no" display-inline="no-display-inline" id="id1764dbc18eb04c64bce4511f8fa3bbfa"><enum>(I)</enum><text display-inline="yes-display-inline">identify</text></subclause><after-quoted-block>;</after-quoted-block></quoted-block></item><item commented="no" display-inline="no-display-inline" id="id42483e6273b44a058351a9f46c63be92"><enum>(bb)</enum><text>in subclause (I), as so designated, by striking the period at the end and inserting a semicolon; and</text></item><item commented="no" display-inline="no-display-inline" id="id4ae19d8a09db4c0d9d7c0c70fa0d26c3"><enum>(cc)</enum><text>by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="idE6CFBF689E2844B888FA4DEA9863E7AB"><subclause id="id89e78cb8d2a845ae95d6096be2df5dc8"><enum>(II)</enum><text>ensure, in collaboration with SBIR program managers of each component of the Department of Defense, that research programs identified under subclause (I) are analyzed within the programming and budgeting process as budget requests are developed; and</text></subclause><subclause id="id54beefb738a24bf0acb2b25fde958832"><enum>(III)</enum><text>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></subclause><after-quoted-block>; and</after-quoted-block></quoted-block></item></subclause><subclause commented="no" display-inline="no-display-inline" id="id1f34a1eca5374265b878649609380b50"><enum>(III)</enum><text>by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id51713319979443FF9BA94D01BFD6B88A"><clause commented="no" display-inline="no-display-inline" id="idf1c207fff68e47688da209f6c72ffdcb"><enum>(ii)</enum><header>Award</header><text>Under this paragraph, a funding agreement may be awarded to a small business concern by the Department of Defense using funds made available under a strategic breakthrough allocation, as defined in subparagraph (C)(i).</text></clause><after-quoted-block>;</after-quoted-block></quoted-block></subclause></clause><clause commented="no" display-inline="no-display-inline" id="id2cb2b869f28f4f20af0bf695ccf94591"><enum>(iv)</enum><text>by striking subparagraphs (C), (D), and (E), as so redesignated, and inserting the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id092226CE48B448479BC10FA055728172"><subparagraph commented="no" display-inline="no-display-inline" id="idc06abd2ceb0b4975b2870d81ca68f8cb"><enum>(C)</enum><header>Funding parameters</header><clause commented="no" display-inline="no-display-inline" id="idfff6c58a8491413db67798c042ba1d0a"><enum>(i)</enum><header>Definition</header><text>In this subparagraph, the term <term>strategic breakthrough allocation</term> means a required expenditure amount for the Department of Defense within the SBIR allocation under subsection (f)(1) for fiscal year 2026 and every fiscal year thereafter of not less than 0.25 percent of the extramural budget for research or research and development designated for the Department of Defense.</text></clause><clause commented="no" display-inline="no-display-inline" id="id96aeb2fb819543f1951d8a9671acebbd"><enum>(ii)</enum><header>Requirements</header><text>In the case of a Phase II agreement that is awarded to a small business concern by the Department of Defense using funds made available under a strategic breakthrough allocation, the following requirements shall apply:</text><subclause commented="no" display-inline="no-display-inline" id="id63e315cc543c423e96a6c5ad83e6a484"><enum>(I)</enum><header>Award size and period of performance</header><text>The Department of Defense may award not more than 1 award of not more than $30,000,000 per small business concern, including its affiliates, spinouts, or subsidiaries, from the strategic breakthrough allocation with a period of performance of not more than 48 months.</text></subclause><subclause commented="no" display-inline="no-display-inline" id="id5c2862f1c34545c4ac63faa1245141dc"><enum>(II)</enum><header>Small business concern requirements</header><text>The small business concern shall—</text><item commented="no" display-inline="no-display-inline" id="idefe749a87f8f482e9260a6dc61de4137"><enum>(aa)</enum><text display-inline="yes-display-inline">have been awarded not less than 1 prior Phase II award under the SBIR program;</text></item><item commented="no" display-inline="no-display-inline" id="id595e721f762649cfbad2f5ee6bbfb7eb"><enum>(bb)</enum><text display-inline="yes-display-inline">demonstrate not less than 100 percent matching funds through new outside capital or amounts awarded by the Department of Defense 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 commented="no" display-inline="no-display-inline" id="id28635ea052214f42b514ff77bc1fe783"><enum>(cc)</enum><text>have been awarded not more than $50,000,000 in cumulative Department of Defense contracts or awards; and</text></item><item commented="no" display-inline="no-display-inline" id="id3b7ef692372b43fe821bd7d97bce6aff"><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 commented="no" display-inline="no-display-inline" id="idab756da0ab3a4d11a82cc0584814cd45"><enum>(AA)</enum><text display-inline="yes-display-inline">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 Department of Defense;</text></subitem><subitem commented="no" display-inline="no-display-inline" id="id1063ca4add874705af2705b04e0db62f"><enum>(BB)</enum><text display-inline="yes-display-inline">is an effective solution, as determined by market research; and</text></subitem><subitem commented="no" display-inline="no-display-inline" id="id8d30c8ea96844a19a604ac70c3ad2c98"><enum>(CC)</enum><text>will meet high priority military requirements or operational needs of a military department through a successful transition and into the acquisition process.</text></subitem></item></subclause><subclause commented="no" display-inline="no-display-inline" id="idf00750aafb124f2189761990740d05e1"><enum>(III)</enum><header>Deadline</header><text>The Department of Defense 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 commented="no" display-inline="no-display-inline" id="id7e4dbc67229940adb1dbc3b660a973f0"><enum>(IV)</enum><header>Eligible activities</header><text>Eligible activities by a small business concern using strategic breakthrough allocation funds are—</text><item commented="no" display-inline="no-display-inline" id="id360cb1fb09b742308360561dfdb1ba18"><enum>(aa)</enum><text>design for manufacturing;</text></item><item commented="no" display-inline="no-display-inline" id="id712337d5ec314be58a85745500f410a0"><enum>(bb)</enum><text>establishing manufacturing facilities, tooling, and supply chain capacity;</text></item><item id="idb3593b3148e944d9bec24f0cd723a94a"><enum>(cc)</enum><text>buying raw materials or inventory;</text></item><item id="id4523c43c227b451286eefb6e950ae16a"><enum>(dd)</enum><text>the integration of products with open interoperability standards;</text></item><item id="id5f51033481944a0e8eb028ec60d7666a"><enum>(ee)</enum><text>testing, evaluation, and certification of low-rate production units; and</text></item><item id="id03ff9a16edef4a40a6d9234cb64d2d8b"><enum>(ff)</enum><text>the purchase of production units and maintenance.</text></item></subclause><subclause commented="no" display-inline="no-display-inline" id="idcc6977bd350d45159c2cb2da66a0d5b7"><enum>(V)</enum><header>Selection criteria</header><text display-inline="yes-display-inline">In making awards, the Department of Defense shall consider—</text><item id="id135da840d4d342afa1c0ce2354f814d1"><enum>(aa)</enum><text>the potential of the small business concern to—</text><subitem id="id38905c0d788b4eb885cd2c1d54f2804d"><enum>(AA)</enum><text>advance the national security capabilities of the United States;</text></subitem><subitem id="id91fb31cd61504f17b71d76b5d0831692"><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><subitem id="id3b2208149e5149a0bcae2a6808a8df09"><enum>(CC)</enum><text>provide future cost savings; and</text></subitem><subitem commented="no" display-inline="no-display-inline" id="id80fa5a8fb19f40999e9d87e67e3c98f7"><enum>(DD)</enum><text>enhance the lethality and efficiency of the United States military;</text></subitem></item><item id="ide56f6d42c3cd4d8797ddc62b77937370"><enum>(bb)</enum><text>whether a major system or customer in the Department of Defense has expressed intent to purchase and integrate technology from the small business concern into its operations; and</text></item><item id="id07c362eb0ba9435ca11e9c70297417ec"><enum>(cc)</enum><text>such other criteria that the Department of Defense determines to be appropriate.</text></item></subclause></clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idedd8748bc0fc4a6f9eafcff20e00a60f"><enum>(D)</enum><header>Acquisition mechanism</header><text>The Department of Defense shall establish a mechanism, such as a major system, to provide small business concerns with direct access to program and requirements offices throughout the Department of Defense that may purchase technology from small business concerns under Phase III of the SBIR program of the Department of Defense.</text></subparagraph><subparagraph id="id5890302e958249adaf3eed18af42c5b8"><enum>(E)</enum><header>Operational needs</header><text>The Department of Defense shall allow services to provide operational needs statements directly to chiefs of requirements offices.</text></subparagraph><after-quoted-block>; and</after-quoted-block></quoted-block></clause><clause commented="no" display-inline="no-display-inline" id="id0796e22e6e71495eb4263e4634028b5c"><enum>(v)</enum><text>in subparagraph (F), as so redesignated—</text><subclause commented="no" display-inline="no-display-inline" id="id40a52474a2254d2797a13bd6916dde4f"><enum>(I)</enum><text>by amending clause (i) to read as follows:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id93AB2EFFBD6F4B44A000490A28A64A67"><clause commented="no" display-inline="no-display-inline" id="idad3432a749654d4e8b997a18ba7f895b"><enum>(i)</enum><text>set a goal to substantively increase the number of Phase II SBIR contracts awarded by the Secretary that lead to technology transition into programs of record or fielded systems in fiscal year 2028 compared to fiscal year 2025; and</text></clause><after-quoted-block>;</after-quoted-block></quoted-block></subclause><subclause commented="no" display-inline="no-display-inline" id="id3e9be77f179843f9a82fcbaec7586e70"><enum>(II)</enum><text>by striking clause (ii); </text></subclause><subclause commented="no" display-inline="no-display-inline" id="idfb34fde9658b4a0fa0c98a64da7e7974"><enum>(III)</enum><text>by redesignating clause (iii) as clause (ii); and</text></subclause><subclause commented="no" display-inline="no-display-inline" id="id49577693c9b645f8bd6ffa8be78ff59e"><enum>(IV)</enum><text>in clause (ii), as so redesignated—</text><item commented="no" display-inline="no-display-inline" id="id04353d4a54874693b203d6f863d1d2e3"><enum>(aa)</enum><text display-inline="yes-display-inline">in subclause (I), by adding <quote>and</quote> at the end;</text></item><item commented="no" display-inline="no-display-inline" id="id1e72d27c4072425188d8e4134cc62f35"><enum>(bb)</enum><text display-inline="yes-display-inline">in subclause (II)—</text><subitem commented="no" display-inline="no-display-inline" id="id4a0f413b51cf49b18a52a286dac1a468"><enum>(AA)</enum><text display-inline="yes-display-inline">by striking <quote>through the Commercialization Readiness Program</quote> and inserting <quote>under a strategic breakthrough allocation</quote>; and</text></subitem><subitem commented="no" display-inline="no-display-inline" id="id02e15da3710c4d1ab7e022ce1f33efbb"><enum>(BB)</enum><text>by striking <quote>; and</quote> and inserting a period; and</text></subitem></item><item commented="no" display-inline="no-display-inline" id="ide32c9dd7dbca4ae1b3654ae253108ba8"><enum>(cc)</enum><text>by striking subclause (III); and</text></item></subclause></clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id2a71fd2533344dbda4c94b04c8e05278"><enum>(4)</enum><text display-inline="yes-display-inline">by redesignating subsection (xx), entitled <quote>Additional Provisions Relating to Solicitation Topics</quote>, as subsection (y), and moving it so as to appear after subsection (x).</text></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id6eff9a0016884c61bc3dbd0dae19cc51"><enum>(b)</enum><header>Technical and conforming amendments</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>), as amended by this Act, is amended—</text><paragraph commented="no" display-inline="no-display-inline" id="idc024e4cc73fa45638faa9b774b906190"><enum>(1)</enum><text display-inline="yes-display-inline">in subsection (i)(1), by striking <quote>subsection (y)</quote> and inserting <quote>subsection (ff)(3)</quote>;</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id0e9b197770b140b9ab39c3692da0ba81"><enum>(2)</enum><text>in subsection (mm)(1)(D), by striking <quote>subsection (y)</quote> and inserting <quote>subsection (ff)(3)</quote>; and</text></paragraph><paragraph id="id8d050c1855d44e2e840d566bf16008ab"><enum>(3)</enum><text>in subsection (tt), by striking <quote>(y)(6)(C)</quote> and inserting <quote>(ff)(3)(F)(ii)</quote>.</text></paragraph></subsection></section><section id="id47f2219a3c414bbfbc1a330860c892c3" commented="no" display-inline="no-display-inline" section-type="subsequent-section"><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 implementation is complete, the Secretary of Defense shall brief the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business and the Committee on Science, Space, and Technology of the House of Representatives on 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.</text></section><section commented="no" display-inline="no-display-inline" section-type="subsequent-section" id="idaf93cc602eef422499eac77aa5a32919"><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 commented="no" display-inline="no-display-inline" id="ide1a0cefb34734829b4f5675818a75050"><enum>(1)</enum><text display-inline="yes-display-inline">in subsection (f), by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="idB2F7B56D336645159C540DE46B855DB7"><paragraph commented="no" display-inline="no-display-inline" id="id7c310b1162e04c78903cba5ecb7ea296"><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 utilize a different contract structure.</text></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id50a70fd1f808400791ac178ef7c9c7da"><enum>(2)</enum><text>in subsection (n), as amended by section 101, by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="idCC2C53C8F8B44E25B6122240864AAF71"><paragraph commented="no" display-inline="no-display-inline" id="idfaf8169603d9478b8ef8df2f7428dc93"><enum>(5)</enum><header>Fixed-price contract</header><text display-inline="yes-display-inline">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 utilize 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="id2329e08a4bba416f972412ccc184fe29"><enum>201.</enum><header>Encouraging new SBIR and STTR entrants</header><subsection commented="no" display-inline="no-display-inline" id="id5e72d4b9bf4c401ca45e364e0ceed765"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><paragraph commented="no" display-inline="no-display-inline" id="id9fff77d616e940d0b6fe783c2f750e31"><enum>(1)</enum><header>Encouraging new SBIR and STTR entrants</header><text display-inline="yes-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>) is amended to read as follows: </text><quoted-block style="OLC" display-inline="no-display-inline" id="id7709A1B137544099A134057179436EF1"><subsection commented="no" display-inline="no-display-inline" id="id151BF2DFFCBD4A5F82D36721B6E784A6"><enum>(jj)</enum><header>Encouraging new SBIR and STTR entrants</header><paragraph commented="no" display-inline="no-display-inline" id="id9F9272470F8B4C5EA09518DD436E9AD1"><enum>(1)</enum><header>Optimizing SBIR and STTR funding</header><text>A small business concern, including its affiliates, spinouts, or subsidiaries, may not apply to a Phase I or Phase II solicitation under an SBIR or STTR program if the small business concern, including its affiliates, spinouts, or subsidiaries, has previously received over $75,000,000 in funding from SBIR or STTR Phase I and Phase II awards.</text></paragraph><paragraph id="id29E5BC25A934415D82B1E7920F2364A8"><enum>(2)</enum><header>Primary investigators</header><text>An individual may not concurrently serve as the primary investigator on more than 1 proposal to a single Phase I solicitation or a single Phase II solicitation. </text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id4E5845930BC646648DEF9C6B0C641BD3"><enum>(3)</enum><header>Phase I size standard</header><text display-inline="yes-display-inline">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></paragraph><paragraph id="id7de43ac62a30493ab4d5812eeefd14d6"><enum>(2)</enum><header>Conforming amendment</header><text>Section 9(tt)(1)(A) of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/638">15 U.S.C. 638(tt)(1)(A)</external-xref>) by striking <quote>, (jj)(6)</quote>.</text></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idbc75fd8977b442d2ae4824f50dc916cb"><enum>(b)</enum><header>Phase 1A program</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>), as amended by this Act, is amended—</text><paragraph commented="no" display-inline="no-display-inline" id="id70216421cebb4cf0ae02c05d4795d324"><enum>(1)</enum><text>in subsection (e)(4)—</text><subparagraph commented="no" display-inline="no-display-inline" id="id58104654793b4c469ff127daae8c218f"><enum>(A)</enum><text display-inline="yes-display-inline">in subparagraph (A), by striking <quote>subparagraph (B)</quote> and inserting <quote>subparagraph (C)</quote>;</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id1f2e9b928f4a47be8130eb79aad736d0"><enum>(B)</enum><text display-inline="yes-display-inline">by redesignating subparagraphs (B) and (C) as subparagraphs (C) and (D); and</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id269fc4245ba94fcfaf27f70ca97befe6"><enum>(C)</enum><text>by inserting after subparagraph (A), the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id2D22ED2929EE42A490BB0CEC734F15B0"><subparagraph commented="no" display-inline="no-display-inline" id="id2407bd7a6b3749e6bff534f19c18b32a"><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></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idedf854e8530346918397b9a175ea3e9e"><enum>(2)</enum><text display-inline="yes-display-inline">by amending subsection (pp) to read as follows: </text><quoted-block id="idD34998A5D939484C990AD8332BA08455" display-inline="no-display-inline" style="OLC"><subsection commented="no" display-inline="no-display-inline" id="id89cf226deacf4a0e8a76d2708450172d"><enum>(pp)</enum><header>Phase 1A awards</header><paragraph commented="no" display-inline="no-display-inline" id="id948fb49a919f417e9ec98435cbd8db29"><enum>(1)</enum><header display-inline="yes-display-inline">Sense of Congress</header><text>It is the sense of Congress that—</text><subparagraph commented="no" display-inline="no-display-inline" id="id153c88b987cd42e8b2695a7053eea50e"><enum>(A)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="id0d0d0e55847d47748d742be730b0a176"><enum>(B)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="ide6b8af74420e4316b41b32fa52f76fac"><enum>(i)</enum><text display-inline="yes-display-inline">the location of the small business concern within the United States; or </text></clause><clause commented="no" display-inline="no-display-inline" id="idb6d80fca575a4156a933e6d73f7d3145"><enum>(ii)</enum><text display-inline="yes-display-inline">the educational background of the principal investigator.</text></clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idf9fb8a26fd4e4a2693b16a93ce133534"><enum>(2)</enum><header display-inline="yes-display-inline">Authorization</header><text display-inline="yes-display-inline">The head of each agency with an SBIR program shall allocate not less than 2.5 percent of funding for the SBIR program of the agency to Phase 1A awards.</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idfcd5d123d75d4d22a5ebeee6092a0c13"><enum>(3)</enum><header>Solicitation</header><text>A solicitation issued under this subsection shall be conducted as an open topic announcement, as defined in subsection (e).</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idd8989fb601a14f6bbefbbbcc89d933cb"><enum>(4)</enum><header>Eligibility</header><text>In order to be eligible for an award under this subsection, a small business concern, including its affiliates, spinouts, or subsidiaries, shall not have previously received an SBIR or STTR award.</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id0f9a095d53fc43668331051e53b62338"><enum>(5)</enum><header>Proposal</header><subparagraph commented="no" display-inline="no-display-inline" id="id78d1db32b0164460bdef3f73f88d88cb"><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 of no more than 2 pages in length and shall contain the criteria described in subparagraph (B).</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ida1ed7aec791e422e812fda67d8550331"><enum>(B)</enum><header>Criteria</header><clause commented="no" display-inline="no-display-inline" id="id9dbea733a1a943ea9930579a7a45b7d7"><enum>(i)</enum><header>Identification of problem</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 commented="no" display-inline="no-display-inline" id="id486cdcc6dbc24abea6c35494b5444e59"><enum>(ii)</enum><header>Description of solution</header><text>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 commented="no" display-inline="no-display-inline" id="id5a80de5bd6bd49d5ad460d1a080a61b4"><enum>(iii)</enum><header>Impact of the solution</header><text>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 impact for the awarding agency and any commercial customer.</text></clause><clause commented="no" display-inline="no-display-inline" id="id78474b707a914f2785e22b9a8773ec48"><enum>(iv)</enum><header>Differentiation</header><text>The small business concern shall—</text><subclause commented="no" display-inline="no-display-inline" id="idea0cae7bd7514e8b9099cbe2616a4b53"><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 commented="no" display-inline="no-display-inline" id="id2d5f36c06d2848e5a0020b21e4b4721f"><enum>(II)</enum><text display-inline="yes-display-inline">explain how the proposed solution is a unique and novel solution.</text></subclause></clause><clause commented="no" display-inline="no-display-inline" id="id80aa1e79d05c4e01876e24e5f71958f8"><enum>(v)</enum><header>Commercialization strategy</header><text>The small business concern shall—</text><subclause commented="no" display-inline="no-display-inline" id="id34e98bbc736847928f2f0d515af6a4d8"><enum>(I)</enum><text display-inline="yes-display-inline">describe how the small business concern intends to fund the proposed solution; and</text></subclause><subclause commented="no" display-inline="no-display-inline" id="idc91440341f724eb691ddf5650a2db0f0"><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 commented="no" display-inline="no-display-inline" id="idb81032f6a68c43d1858605e9d78f03e2"><enum>(6)</enum><header>Award limits</header><subparagraph commented="no" display-inline="no-display-inline" id="id019ce5f3dade4dc18803837914f29875"><enum>(A)</enum><header>Number of awards</header><text display-inline="yes-display-inline">A small business concern or principal investigator is eligible for not more than 1 Phase 1A award.</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id56fb811a1b9a44bbba20542c58c384de"><enum>(B)</enum><header>Amount</header><text display-inline="yes-display-inline">An award made under this subsection shall be for not more than $40,000.</text></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id8f48bc94d6d946918109be5c925387f7"><enum>(7)</enum><header>Notification of selection or non-selection</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="id76b6979f47f745d29967e16e97bb7fc6"><enum>(8)</enum><header>Application for Phase II award</header><subparagraph commented="no" display-inline="no-display-inline" id="id8eb5308dba5d45bb8841f0f37af88a51"><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 commented="no" display-inline="no-display-inline" id="id19e06b3f33eb4750a18aa944f24a51b0"><enum>(B)</enum><header>Use of funds</header><text display-inline="yes-display-inline">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></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection></section><section commented="no" display-inline="no-display-inline" section-type="subsequent-section" id="idf23c5fa3d3a64fcd86ad537f78ea2c18"><enum>202.</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="id5bdcc4a756f049959ba986bab22a1d04"><enum>(1)</enum><text>in subsection (b)(7)(C), by striking <quote>owned and controlled by women or by socially and economically disadvantaged individuals</quote> and inserting <quote>owned by individuals who reside in emerging States or rural areas</quote>;</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id0C32CB4F524F423F9650FC93A9E45C86"><enum>(2)</enum><text>in subsection (e)—</text><subparagraph commented="no" display-inline="no-display-inline" id="id29926ac7811b46be9d0bb4cf5c054952"><enum>(A)</enum><text display-inline="yes-display-inline">in paragraph (18), by striking <quote>and</quote> at the end;</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id6BCD3BC9CB45438D813B57FD9ADE0D35"><enum>(B)</enum><text display-inline="yes-display-inline">in paragraph (19), by striking the period at the end and inserting a semicolon; and</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idC06A245C8921460C949637CA849B0359"><enum>(C)</enum><text display-inline="yes-display-inline">by adding at the end the following:</text><quoted-block id="id6486E4332E384896862A031CE3DDEEEF" display-inline="no-display-inline" style="OLC"><paragraph commented="no" display-inline="no-display-inline" id="id85D76C150DA247C586CDEF5BAF4D05DB"><enum>(20)</enum><text>the term <term>emerging State</term> means the 25 States with the fewest combined number of award recipients in the SBIR program and the STTR program that have received their first Phase I award in the previous 10 fiscal years;</text></paragraph><paragraph id="id6BE4BAE762A14649800CC14493F93654" commented="no" display-inline="no-display-inline"><enum>(21)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="idc5f60c9d2a6f40b58db601a4c03c7beb"><enum>(3)</enum><text>in subsection (g)(8)(A)—</text><subparagraph commented="no" display-inline="no-display-inline" id="id41488F05FA624996B1E4AE28A3A45561"><enum>(A)</enum><text display-inline="yes-display-inline">by striking clause (iii);</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id473FB89BF6B14A4CB3102599E41C6E9F"><enum>(B)</enum><text display-inline="yes-display-inline">by redesignating clauses (iv), (v), and (vi) as clauses (iii), (iv), and (v), respectively; and</text></subparagraph><subparagraph id="id08890BCFDB0548D080E7F07CDCA84811" commented="no" display-inline="no-display-inline"><enum>(C)</enum><text display-inline="yes-display-inline">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 an emerging State or rural area or has an individual who resides in an emerging State or rural area</quote>;</text></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id27176dbe590b47ac9fdb2c9ca0750af5"><enum>(4)</enum><text>in subsection (j)—</text><subparagraph commented="no" display-inline="no-display-inline" id="id2ce57fa0bbb146ed8065af06967efbb0"><enum>(A)</enum><text>by adjusting the margins for paragraphs (2) and (3) 2 ems to the left; and</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id4460dd01266e49a695919ec87ec81ed7"><enum>(B)</enum><text>in paragraph (2)—</text><clause commented="no" display-inline="no-display-inline" id="id4995900bf8f54393a4322defa82d22bf"><enum>(i)</enum><text display-inline="yes-display-inline">by striking subparagraph (F);</text></clause><clause commented="no" display-inline="no-display-inline" id="id350aa078ebb6430ba2df1105a4581f29"><enum>(ii)</enum><text>by redesignating subparagraphs (G), (H), and (I) as subparagraphs (F), (G), and (H); and</text></clause><clause commented="no" display-inline="no-display-inline" id="id547edd91d9bb463a8fa618d907e8adf1"><enum>(iii)</enum><text display-inline="yes-display-inline">in subparagraph (H), as so redesignated, by striking <quote>subparagraph (H)</quote> and inserting <quote>subparagraph (G)</quote>;</text></clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id529708d8f3424c0eb8e6c7bbff8b19ec"><enum>(5)</enum><text display-inline="yes-display-inline">in subsection (k)(1)(F)—</text><subparagraph commented="no" display-inline="no-display-inline" id="ide54e20e0cebe41ef834cd48cf9d8175d"><enum>(A)</enum><text display-inline="yes-display-inline">by striking clause (ii);</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id3c41adc4d0d64983b6201857a0ac9207"><enum>(B)</enum><text display-inline="yes-display-inline">by redesignating clauses (iii), (iv), and (v) as clauses (ii), (iii), and (iv), respectively; and</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id71749dc798514cfa945d52781cc87ee5"><enum>(C)</enum><text display-inline="yes-display-inline">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 an emerging State or rural area or has an individual who resides in an emerging State or rural area</quote>;</text></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id2db9d5d46257494483c6f303001f15cd"><enum>(6)</enum><text display-inline="yes-display-inline">in subsection (o)(9)(A)—</text><subparagraph commented="no" display-inline="no-display-inline" id="id7ADDA737F0A14D479B6D61DF400ABC7B"><enum>(A)</enum><text display-inline="yes-display-inline">by striking clause (iii);</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idab828de24abf4ff6bec829cad6cc76a3"><enum>(B)</enum><text display-inline="yes-display-inline">by redesignating clauses (iv), (v), and (vi) as clauses (iii), (iv), and (v), respectively; and</text></subparagraph><subparagraph id="id7E5E927D1E934F40A1BE051030822745" commented="no" display-inline="no-display-inline"><enum>(C)</enum><text display-inline="yes-display-inline">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 an emerging State or rural area or has an individual who resides in an emerging State or rural area</quote>; and</text></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id3b8f48e6e2444d20b7a6c90e49c0b73b"><enum>(7)</enum><text>in subsection (mm)—</text><subparagraph commented="no" display-inline="no-display-inline" id="id67b3bd6f51104c82900f37538cd0479d"><enum>(A)</enum><text display-inline="yes-display-inline">in paragraph (1)—</text><clause commented="no" display-inline="no-display-inline" id="iddd0c37945b714e8aa682ac76721b88bf"><enum>(i)</enum><text display-inline="yes-display-inline">in the matter preceding subparagraph (A), by striking <quote>and until September 30, 2025</quote>; and</text></clause><clause commented="no" display-inline="no-display-inline" id="idc47ed3d1eb7b49419982b7e0b9954811"><enum>(ii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="idcae1740ca345469792e0090fc1be67b3"><enum>(B)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="id96056ea83d0649249b3b94d1dbf46b60"><enum>(C)</enum><text>by adding at the end the following:</text><quoted-block id="id5BBC2E60C0A2429DB8425947150F34B0" display-inline="no-display-inline" style="OLC"><paragraph commented="no" display-inline="no-display-inline" id="id9a373d88a58044d5b465970506d942e7"><enum>(7)</enum><header>Eligibility</header><text>For an agency to be eligible to utilize funds allocated to the SBIR program of that Federal agency under this subsection, the agency shall not—</text><subparagraph commented="no" display-inline="no-display-inline" id="idd7e84191ff284573814082d1b0ffd049"><enum>(A)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="ida5f54ac8e9c84a5f882ed8d2380be6a8"><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="id9bb1bdbf139a48b9a9527248b1ae0077" commented="no" display-inline="no-display-inline"><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><enum>III</enum><header>Streamlining Participation in the SBIR and STTR Programs</header><section id="id911a59b2ef4c4e889d20d8eaa7a2345c"><enum>301.</enum><header>Definition of open topics</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 202(2), is amended by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id41C6A9F357664BB4827406BBB2D9FC18"><paragraph id="id17aa11b2d99c46e187ac60d3e61dfe0c"><enum>(22)</enum><text>the term <term>open topic announcement</term> means a solicitation for SBIR or STTR proposals that—</text><subparagraph commented="no" display-inline="no-display-inline" id="ide4dfeaa6a6104e9a9d88a50976402bce"><enum>(A)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="idb48f0ab174494c618ab701ff916d59b9"><enum>(B)</enum><text display-inline="yes-display-inline">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></section><section id="iddb345de438b045a8b49d5697591cf527"><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 amended by adding at the end the following: </text><quoted-block id="id5D261D4CD2A14284A7A46BA90D6233FE" display-inline="no-display-inline" style="OLC"><paragraph commented="no" display-inline="no-display-inline" id="idCB146373C715424582E39F8CBB422BA2"><enum>(4)</enum><header>Reducing administrative burden</header><subparagraph commented="no" display-inline="no-display-inline" id="idB1720C4E861B4073A90C57EA46958C35"><enum>(A)</enum><header>Limit on submissions to a solicitation</header><text display-inline="yes-display-inline">A small business concern, including its affiliates, spinouts, or subsidiaries, may not submit more than 3 proposals to a single Phase I solicitation or a single Phase II solicitation under subsection (cc).</text></subparagraph><subparagraph id="idF1B26CE882A34BA1BC23609E49EA7544" commented="no" display-inline="no-display-inline"><enum>(B)</enum><header>Limit on submissions in a single year</header><text display-inline="yes-display-inline">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="id64199cfb9f464cc68d98b7ef6bb6ca7c"><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 amended by adding at the end the following:</text><quoted-block id="idA579C6671A28406F892030C6239E477F" display-inline="no-display-inline" style="OLC"><paragraph commented="no" display-inline="no-display-inline" id="idc38c0a66f7e843a1a9d4f5effe55b911"><enum>(23)</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 commented="no" display-inline="no-display-inline" id="id79e448a599b1435393fc4b47ddd27942"><enum>(A)</enum><text display-inline="yes-display-inline">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="idf7d6e7fd4326424d83c1cb039053ba4c" commented="no" display-inline="no-display-inline"><enum>(B)</enum><text display-inline="yes-display-inline">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="id958a3bb6fa3f41598ed3101ab81b2c4b"><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 commented="no" display-inline="no-display-inline" id="id20cd9a57d5714ccda3355f7e6d7ee33b"><enum>(1)</enum><text>in subsection (g)—</text><subparagraph commented="no" display-inline="no-display-inline" id="id97e39ecbadd34d7fa311ffdb3d585336"><enum>(A)</enum><text>by redesignating paragraphs (15), (16), and (17) as paragraphs (16), (18) and (19), respectively; </text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idbc0509e7e08b4407baadcf2eb463153a"><enum>(B)</enum><text>by inserting after paragraph (14) the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id71A2CAF6C35E4AF5B6AD39518AD13354"><paragraph commented="no" display-inline="no-display-inline" id="iddab2b5195b0c4345bad50f6ed7ed824b"><enum>(15)</enum><text>evaluate whether a small business concern presents a risk to national security for any reason, through measures including—</text><subparagraph commented="no" display-inline="no-display-inline" id="idaba4de2eb677438abbe5671438e87b63"><enum>(A)</enum><text display-inline="yes-display-inline">the due diligence process required under subsection (vv);</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id36d8389d58ed41478c9cb086f9afc0aa"><enum>(B)</enum><text display-inline="yes-display-inline">disclosures submitted under this subsection; or</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idc5f0998c3bc04dcb851fa806db42eafe"><enum>(C)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="id6f6e507e905b4b79a9ce50fb7b5d269f"><enum>(C)</enum><text display-inline="yes-display-inline">in paragraph (16), as so redesignated—</text><clause commented="no" display-inline="no-display-inline" id="id0f1cbd94c30f4ee580184f6224ce8db4"><enum>(i)</enum><text display-inline="yes-display-inline">by striking subparagraph (B);</text></clause><clause commented="no" display-inline="no-display-inline" id="ide7939a271e6740d5b480dc5e79f370f5"><enum>(ii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="ide15d8dcc6ca94aefb79ebe5e01444972"><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 commented="no" display-inline="no-display-inline" id="id4f22a1e426f442e2be72e960ad901365"><enum>(iv)</enum><text display-inline="yes-display-inline">in subparagraph (B), as so redesignated, by striking <quote>or</quote> at the end;</text></clause><clause commented="no" display-inline="no-display-inline" id="id0c12d2cdd2ee428fa5d9f8e86aaa2018"><enum>(v)</enum><text>in subparagraph (C), as so redesignated, by striking <quote>and</quote> at the end; and</text></clause><clause commented="no" display-inline="no-display-inline" id="id3f3a3f532b8f425d806a539822dfa82f"><enum>(vi)</enum><text>by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="idA790926572964976AE8C5411E2BB5D89"><subparagraph commented="no" display-inline="no-display-inline" id="idc175634b451f4f8cbdfa2b64e14ebf7c"><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 commented="no" display-inline="no-display-inline" id="idca8332e54f7845f09488d2f31f32ad4e"><enum>(i)</enum><text display-inline="yes-display-inline">the UFLPA Entity List maintained by the Department of Homeland Security;</text></clause><clause commented="no" display-inline="no-display-inline" id="id61c668add4ff4b42b293c9b049ca182b"><enum>(ii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="idb36094af4f524e91b98a5619ad6a1dd5"><enum>(iii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="idd7c16927212a4210b59889e4837943d1"><enum>(iv)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="id6ca3b445092c45baa6896c64f7727ed0"><enum>(v)</enum><text display-inline="yes-display-inline">the Military End User List maintained by the Bureau of Industry and Security of the Department of Commerce;</text></clause><clause commented="no" display-inline="no-display-inline" id="id0fa9c0afb2a044489cfb2f9163448e4e"><enum>(vi)</enum><text>the Entity List maintained by the Bureau of Industry and Security of the Department of Commerce;</text></clause><clause commented="no" display-inline="no-display-inline" id="id5a60b0c9b8de4983a2b47a073f97251b"><enum>(vii)</enum><text display-inline="yes-display-inline">the List of Equipment and Services maintained by the Federal Communications Commission; and </text></clause><clause commented="no" display-inline="no-display-inline" id="id32040e40c87446a293a61764b59ed5ea"><enum>(viii)</enum><text display-inline="yes-display-inline">the Withhold Release Orders and Findings List maintained by U.S. Customs and Border Protection;</text></clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id02ea0ee03a30402c83473e7d5bc6efb0"><enum>(E)</enum><text display-inline="yes-display-inline">has a foreign risk with a primary source that is classified; or</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idb5be77ef8b9d4d33b706dd794abc415e"><enum>(F)</enum><text display-inline="yes-display-inline">has a foreign risk or another national security risk not listed in statute or regulatory guidance that an agency determines warrants a denial;</text></subparagraph><after-quoted-block>;</after-quoted-block></quoted-block></clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idd6d91dc0a88b4f00939f0b0d50a039e7"><enum>(D)</enum><text display-inline="yes-display-inline">by inserting after paragraph (16), as so redesignated, the following:</text><quoted-block id="idDC35EC9218F04915BCFC8F07AFFB2188" display-inline="no-display-inline" style="OLC"><paragraph id="idfe82c8708b784e2aa000334384d5eb5b" commented="no" display-inline="no-display-inline"><enum>(17)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="id7cd7c5701250472d8c22886f2538b7a6"><enum>(E)</enum><text display-inline="yes-display-inline">in paragraph (19), as so redesignated—</text><clause commented="no" display-inline="no-display-inline" id="idde90b1e8dc13406d94baf0c7915a0d57"><enum>(i)</enum><text display-inline="yes-display-inline">in subparagraph (B), by striking <quote>(16)(A)</quote> and inserting <quote>(18)(A)</quote>; and</text></clause><clause commented="no" display-inline="no-display-inline" id="idd83048e0a66a448ca70ca5c26f596f4a"><enum>(ii)</enum><text>in subparagraph (C), by striking <quote>(16)(B)</quote> and inserting <quote>(18)(B)</quote>; and</text></clause></subparagraph></paragraph><paragraph id="iddd607eb90169407eaccd16a0d9a77db1"><enum>(2)</enum><text>in subsection (o)—</text><subparagraph commented="no" display-inline="no-display-inline" id="id2971336F85A344E18D54EA303B055A15"><enum>(A)</enum><text>by redesignating paragraphs (19), (20), and (21) as paragraphs (20), (22) and (23), respectively; </text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id775E544AB7394DC8879501BFFD1664FF"><enum>(B)</enum><text>by inserting after paragraph (18) the following:</text><quoted-block id="idAD4FE667701B4E41B7F16F069D1CB2BD" display-inline="no-display-inline" style="OLC"><paragraph commented="no" display-inline="no-display-inline" id="idA7A891EA06F34575B5E226A886759D62"><enum>(19)</enum><text>evaluate whether a small business concern presents a risk to national security for any reason, through measures including—</text><subparagraph commented="no" display-inline="no-display-inline" id="idDCF18A8940A84C5D89DE01C521A52FFC"><enum>(A)</enum><text display-inline="yes-display-inline">the due diligence process required under subsection (vv);</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idCDF4C86061A34F3DB9D4235CFBE3D5EB"><enum>(B)</enum><text display-inline="yes-display-inline">disclosures submitted under this subsection; or</text></subparagraph><subparagraph id="id9AF83771397A49D2A875470523E17DD4" commented="no" display-inline="no-display-inline"><enum>(C)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="id8D01F44D6C2945B0978C303841FB00DD"><enum>(C)</enum><text display-inline="yes-display-inline">in paragraph (20), as so redesignated—</text><clause commented="no" display-inline="no-display-inline" id="id54D3B4A2007140599273775B8B3A1FB3"><enum>(i)</enum><text display-inline="yes-display-inline">by striking subparagraph (B);</text></clause><clause commented="no" display-inline="no-display-inline" id="id2CD8970A5FC14606833C22CA9A1B6146"><enum>(ii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="idEB5405DC699041A4B210372DAFB3D3BB"><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 commented="no" display-inline="no-display-inline" id="id9E061F2381F94B7796BD1A236A34DAA1"><enum>(iv)</enum><text display-inline="yes-display-inline">in subparagraph (B), as so redesignated, by striking <quote>or</quote> at the end;</text></clause><clause commented="no" display-inline="no-display-inline" id="idA481F843528244A9888E70F2B4484E72"><enum>(v)</enum><text>in subparagraph (C), as so redesignated, by striking <quote>and</quote> at the end; and</text></clause><clause id="idB7E36D437C2149F99100F47A700AAE4C" commented="no" display-inline="no-display-inline"><enum>(vi)</enum><text>by adding at the end the following:</text><quoted-block id="id73FDBB45DFF84121A4AB3129DE943E34" display-inline="no-display-inline" style="OLC"><subparagraph commented="no" display-inline="no-display-inline" id="id569D1FE03F394CA7B4421FF41DDC97D8"><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 commented="no" display-inline="no-display-inline" id="idC8BEF11002484AF9A300DBD3016D7F49"><enum>(i)</enum><text display-inline="yes-display-inline">the UFLPA Entity List maintained by the Department of Homeland Security;</text></clause><clause commented="no" display-inline="no-display-inline" id="idB79B7F770ACF4CF694F1A5E768D38934"><enum>(ii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="idC947DA4A98B84899BBC42F4811D0B012"><enum>(iii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="id3A30039BAD1E46168C826F2F907370B7"><enum>(iv)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="id97031F85C982420E94912FA1C95806AB"><enum>(v)</enum><text display-inline="yes-display-inline">the Military End User List maintained by the Bureau of Industry and Security of the Department of Commerce;</text></clause><clause commented="no" display-inline="no-display-inline" id="id8F3E51EBCED6417CB5762536354A4606"><enum>(vi)</enum><text>the Entity List maintained by the Bureau of Industry and Security of the Department of Commerce;</text></clause><clause commented="no" display-inline="no-display-inline" id="id06D0E970C1D7422E9487BD7C1AF365C5"><enum>(vii)</enum><text display-inline="yes-display-inline">the List of Equipment and Services maintained by the Federal Communications Commission; and </text></clause><clause commented="no" display-inline="no-display-inline" id="id3D591B3A713748F9B4C6BB7EAE25FB32"><enum>(viii)</enum><text display-inline="yes-display-inline">the Withhold Release Orders and Findings List maintained by U.S. Customs and Border Protection;</text></clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id709F70AAEE084E9D9704643EA4F6C8ED"><enum>(E)</enum><text display-inline="yes-display-inline">has a foreign risk with a primary source that is classified; or</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id9D4CF43A62F84DBDBCA7899303F9BD41"><enum>(F)</enum><text display-inline="yes-display-inline">has a foreign risk or another national security risk not listed in statute or regulatory guidance that an agency determines warrants a denial;</text></subparagraph><after-quoted-block>;</after-quoted-block></quoted-block></clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id7D02ED9F8FBF4543BA0417AA424203C2"><enum>(D)</enum><text display-inline="yes-display-inline">by inserting after paragraph (20) the following:</text><quoted-block id="id0AE63FBE654A41DE8B639BD5BC8F2E31" display-inline="no-display-inline" style="OLC"><paragraph id="id7E9718581A4144C29E45DB68B4902327" commented="no" display-inline="no-display-inline"><enum>(21)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="id2BE9289B68D24FF4AC505EA271980C82"><enum>(E)</enum><text display-inline="yes-display-inline">in paragraph (23), as so redesignated—</text><clause commented="no" display-inline="no-display-inline" id="idC2F4E12D9563442680482DEB982543B3"><enum>(i)</enum><text display-inline="yes-display-inline">in subparagraph (B), by striking <quote>(20)(A)</quote> and inserting <quote>(22)(A)</quote>; and</text></clause><clause id="idED0B0536076746D7BBB0B89489C597C2" commented="no" display-inline="no-display-inline"><enum>(ii)</enum><text>in subparagraph (C), by striking <quote>(20)(B)</quote> and inserting <quote>(22)(B)</quote>.</text></clause></subparagraph></paragraph></section><section id="id9d327d39164c420eba18c2df68040e2d"><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 commented="no" display-inline="no-display-inline" id="id03ee2df55ad64fc0b21128e68ce88d05"><enum>(1)</enum><text display-inline="yes-display-inline">in subparagraph (B), by striking the period at the end and inserting <quote>; and</quote>; and</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idc08bcfe2c8594ddaa11bc4a3da9dd172"><enum>(2)</enum><text>by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id274FB839D8F74DC1941171512879C199"><subparagraph commented="no" display-inline="no-display-inline" id="iddf024ee272904b4c9b3783b322496193"><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="idc3845d9d733f471abeabbc47f143fd43"><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 commented="no" display-inline="no-display-inline" id="id5b65eceece5b4a7ba26248f9b8cbb825"><enum>(1)</enum><text>in subsection (g)(18), as redesignated by section 402—</text><subparagraph commented="no" display-inline="no-display-inline" id="id8a664a1768af4f82ab02997f1cd58529"><enum>(A)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="ide94ecdf3028f46f2b2e7b5a6e9c5420f"><enum>(B)</enum><text display-inline="yes-display-inline">in subparagraph (A)—</text><clause commented="no" display-inline="no-display-inline" id="idfff60e4fa993407ba0bfe9905dce547a"><enum>(i)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="idddacd5c9d43a46b6aa1242dd121b0223"><enum>(ii)</enum><text display-inline="yes-display-inline">by striking <quote>or</quote> at the end;</text></clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id343701f85a7e499b9847efe4d9fc212b"><enum>(C)</enum><text display-inline="yes-display-inline">in subparagraph (B)—</text><clause commented="no" display-inline="no-display-inline" id="id3615ef7813fb4bc480b3d79e8320b5ed"><enum>(i)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="idfdbb40cae518420fa55b175220aa0b60"><enum>(ii)</enum><text>by striking <quote>and</quote> at the end; and</text></clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="iddbfaba69294146fa82b43d3105280f85"><enum>(D)</enum><text>by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id761A94DC23134C6C8E1D250B2ABA16BB"><subparagraph commented="no" display-inline="no-display-inline" id="id473acbca7c88442eba224e66b39ede4b"><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 commented="no" display-inline="no-display-inline" id="idc0f0b5baf89a4b26b55c9dd92ae5f0b1"><enum>(D)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="id38b6bbdaa3ac481189ab522c84884d61"><enum>(2)</enum><text>in subsection (o)(22), as redesignated by section 402—</text><subparagraph commented="no" display-inline="no-display-inline" id="id09AAA9331C85412CA6D561FA69322058"><enum>(A)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="ide5ad17037c4b47ce8acc9ed6ff88108a"><enum>(B)</enum><text>in subparagraph (A)—</text><clause commented="no" display-inline="no-display-inline" id="idDFAECCB2BF154452BF3DDBFA6B76F05B"><enum>(i)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="idFBFE94142F3D4292972FAC79B375B7A0"><enum>(ii)</enum><text display-inline="yes-display-inline">by striking <quote>or</quote> at the end;</text></clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idD615ED530D084074A2056702CAA328E1"><enum>(C)</enum><text display-inline="yes-display-inline">in subparagraph (B)—</text><clause commented="no" display-inline="no-display-inline" id="id0BBC170FBFEF42F4803D729C03015D2B"><enum>(i)</enum><text display-inline="yes-display-inline">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="id97ED84699FAA4E36AF056AE2A8084FF3" commented="no" display-inline="no-display-inline"><enum>(ii)</enum><text>by striking <quote>and</quote> at the end; and</text></clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idF15080A7258D4C528C1942437E945FD5"><enum>(D)</enum><text>by adding at the end the following:</text><quoted-block id="id297F8B88EC8A40DDAB344E0AE6033E9C" display-inline="no-display-inline" style="OLC"><subparagraph commented="no" display-inline="no-display-inline" id="id2CE62F626F1F472AB74FEB6668E2A2AF"><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="id10AEE075AD7C4DB4838BB348498ECEB5" commented="no" display-inline="no-display-inline"><enum>(D)</enum><text display-inline="yes-display-inline">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="ida2e9d9ec48bc4496b481e5d9a3fc32cf"><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="id32F2C92A183A476C9B2295A63F5881C7" display-inline="no-display-inline" style="OLC"><subsection commented="no" display-inline="no-display-inline" id="id039d2ef8840e4ab884196b0285f6c933"><enum>(uu)<?LEXA-Enum (xx)?></enum><header>Best practices on investor informational rights</header><paragraph commented="no" display-inline="no-display-inline" id="id7177b99b1da24f9d80b0e39237208ed3"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">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="idde0bc305b5f0409fadd568d60309bb09" commented="no" display-inline="no-display-inline"><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="id64f629931c1c4c7485e6955dad49fa5e"><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 style="OLC" display-inline="no-display-inline" id="idB2660FB06A4C4B768C8DE40AC7122F4F"><paragraph id="idd274bb1c7ccb450387546fe5a96871c3"><enum>(4)</enum><header>GAO Report</header><subparagraph commented="no" display-inline="no-display-inline" id="id2abfaf077e0c440a95b53ed9a36b85f3"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Not later than 1 year after the date of enactment of the <short-title>INNOVATE Act</short-title>, and annually thereafter for 3 years, the Comptroller General of the United States shall conduct a study and submit to the <committee-name committee-id="SSSB00">Committee on Small Business and Entrepreneurship</committee-name> and the <committee-name committee-id="SSAS00">Committee on Armed Services of the Senate</committee-name> and the <committee-name committee-id="">Committee on Small Business</committee-name>, the <committee-name committee-id="">Committee on Armed Services</committee-name>, and the <committee-name committee-id="">Committee on Science, Space, and Technology of the House of Representatives</committee-name> 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 commented="no" display-inline="no-display-inline" id="id1a36468c3e3c444ead95b828fe73ad4f"><enum>(B)</enum><header>Study</header><text>The study shall evaluate—</text><clause id="id3cfedf0ba0924909951c03e5642a5b3d"><enum>(i)</enum><text>the effectiveness of each Federal agency that participates in the SBIR program or STTR program in identifying—</text><subclause id="id77816c709bf64397800a0743b6045f9f"><enum>(I)</enum><text>enhanced risk in cybersecurity practices in SBIR and STTR projects;</text></subclause><subclause id="id3a0fe87f0c324342872c5dd395b84321"><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="id4c2813592aa94e6db42136ce80873fdb"><enum>(III)</enum><text>enhanced foreign influence risk among employees of small business concerns involved in SBIR and STTR projects;</text></subclause><subclause id="id0022139b773f405d88cd69c8f66afe40"><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="id32a8d28315ad4528bd835c43746561e1"><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 subsection (g)(16)(D); </text></subclause></clause><clause id="id5fe9ac9e9aef4a43b43f677b071d5a93"><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="id636ab104f5794a1399be656aa38c056a"><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 Commercialization Standards</header><section id="idf4615800f4c7470bb6edbd3213833746"><enum>501.</enum><header>Streamlining transition and commercialization rate benchmarks</header><text display-inline="no-display-inline">Section 9(qq) of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/638">15 U.S.C. 638(qq)</external-xref>) is amended—</text><paragraph commented="no" display-inline="no-display-inline" id="ide74b208c2c354f12a8d05ed59947ec1f"><enum>(1)</enum><text>by amending paragraph (1)(A)(ii) to read as follows:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id3EC811AE8CA548939C260987B6C04323"><clause commented="no" display-inline="no-display-inline" id="idee282e9bdd91426eb5ffb268d4f36ef8"><enum>(ii)</enum><text>for small business concerns that received or receive more than 10 Phase I awards, establish a minimum performance standard with respect to the receipt of Phase II awards that shall be a ratio of at least 0.25 for the number of Phase II awards received as compared to the number of Phase I awards received; and</text></clause><after-quoted-block>; and</after-quoted-block></quoted-block></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idfa610a75cb2a4570b17e787373298b0b"><enum>(2)</enum><text display-inline="yes-display-inline">in paragraph (3)—</text><subparagraph commented="no" display-inline="no-display-inline" id="idc08295aed5d342d5817698dc0b6c7122"><enum>(A)</enum><text>in subparagraph (A), by striking clauses (i) and (ii) and inserting the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id8F4B9B267F694EBE8EE1F22805C990C6"><clause commented="no" display-inline="no-display-inline" id="ida2285a76426440e7a5a77846c51d2bc1"><enum>(i)</enum><header>In general</header><text display-inline="yes-display-inline">With respect to a small business concern that received or receives more than 25 Phase I awards, the minimum performance standard shall be a ratio of at least 0.5 for the number of Phase II awards received as compared to the number of Phase I awards received.</text></clause><clause commented="no" display-inline="no-display-inline" id="H3F34C27075BA4D19A51D3FE0A68E200F"><enum>(ii)</enum><header display-inline="yes-display-inline">Consequence of failure to meet standard</header><text display-inline="yes-display-inline">If the head of a Federal agency determines that a small business concern is not meeting the applicable increased minimum performance standard established under clause (i), such small business concern may not participate in Phase I of the SBIR or STTR program of that agency during the 1-year period beginning on the date on which such determination is made and the small business concern may not receive more than 5 total Phase I awards from that agency during each 1-year period thereafter until the small business concern surpasses the minimum performance standard established under clause (i).</text></clause><after-quoted-block>; and</after-quoted-block></quoted-block></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="iddd297d0314d44cde90f49888402404f6"><enum>(B)</enum><text display-inline="yes-display-inline">in subparagraph (B)—</text><clause commented="no" display-inline="no-display-inline" id="id7f439259ec76428dafa18ed6500dbbf9"><enum>(i)</enum><text display-inline="yes-display-inline">in clause (i), by striking subclauses (I) and (II) and inserting the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="idEE0091F976A94344B06F4CF293EB785E"><subclause commented="no" display-inline="no-display-inline" id="id20277ca1a110410a95ae60cc72f29a50"><enum>(I)</enum><text>with respect to a small business concern, including its affiliates, spinouts, and subsidiaries, that has received more than 25 Phase II awards over its lifetime, require the sum of the annual receipts (as defined in section 121.104 of title 13, Code of Federal Regulations, or any successor regulation) of the small business concern from sources other than Phase I or Phase II SBIR or STTR awards and investments received by the small business concern to at minimum exceed the sum of the dollars awarded through Phase I and Phase II awards since the date of the first such award; and</text></subclause><subclause commented="no" display-inline="no-display-inline" id="id9c4812b727e842f1beaf82f4cd0ce380"><enum>(II)</enum><text>with respect to a small business concern, including its affiliates, spinouts, and subsidiaries, that receives more than 25 Phase II awards over its lifetime, require a minimum of 65 percent of the sum of the annual receipts (as defined in section 121.104 of title 13, Code of Federal Regulations, or any successor regulation) of the small business concern and investments received by the small business concern during the 3 years preceding the most recent fiscal year come from sources other than Phase I or Phase II SBIR or STTR awards.</text></subclause><after-quoted-block>; and</after-quoted-block></quoted-block></clause><clause commented="no" display-inline="no-display-inline" id="ida020fd3705334f1a98a2db5c32f6d70b"><enum>(ii)</enum><text>by amending clause (ii) to read as follows:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id6AE9F40CC4054CA68577722394E43388"><clause commented="no" display-inline="no-display-inline" id="H952C6CA8349742C4A6BD539A942629D1"><enum>(ii)</enum><header display-inline="yes-display-inline">Consequence of failure to meet standard</header><text display-inline="yes-display-inline">If the head of a Federal agency determines that a small business concern is not meeting an applicable increased minimum performance standard modified under clause (i), the small business concern may not apply for additional Phase I awards or Phase II awards until the small business concern has received enough annual receipts from sources other than an SBIR or STTR program to surpass the minimum performance standard established under clause (i).</text></clause><after-quoted-block>.</after-quoted-block></quoted-block></clause></subparagraph></paragraph></section><section id="idadf443f8910c4aa48aa9f95320d4ea9b"><enum>502.</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="idCC62D34EB87041DBAB7DAA2E03F640B0" display-inline="no-display-inline" style="OLC"><subsection commented="no" display-inline="no-display-inline" id="id5dcb48f0168c4a81a2e1687224f98d79"><enum>(cc)</enum><header>Phase flexibility</header><paragraph commented="no" display-inline="no-display-inline" id="id4417dbff2a5f41749560b6db0dc2e10a"><enum>(1)</enum><header display-inline="yes-display-inline">Awarding a Phase II award absent a Phase I award</header><text>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 commented="no" display-inline="no-display-inline" id="id4c63bb56198c47948b52c634d34aa697"><enum>(2)</enum><header>Limitations on awards</header><subparagraph commented="no" display-inline="no-display-inline" id="idd8995d097ccc4b79bfb4e2050ebcc102"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text>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 commented="no" display-inline="no-display-inline" id="id331725540ae94553b0ff50f2c228677d"><enum>(B)</enum><header>National Institutes of Health and Department of Defense</header><text>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="idefafd111fb974fd19d52fd078d9b0e5d" commented="no" display-inline="no-display-inline"><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 commented="no" display-inline="no-display-inline" id="id86cb05f57f3442ce9b9233488611b28f"><enum>(D)</enum><header>Limit on number of awards</header><text display-inline="yes-display-inline">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="id764936e6389f4facba0832511d68fdf0"><enum>503.</enum><header>Improving SBIR-STTR data collection</header><subsection commented="no" display-inline="no-display-inline" id="id573ee58b3b8843f49691cd0afaba0b00"><enum>(a)</enum><header>Additional data fields in SBIR 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 commented="no" display-inline="no-display-inline" id="id056559fbd1c34daba0c1af42ff7b53cc"><enum>(1)</enum><text display-inline="yes-display-inline">in subparagraph (E)(iv), by striking <quote>and</quote> at the end;</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id878bf4ff29dd466481c7f7c47078175a"><enum>(2)</enum><text>in subparagraph (F)(v), by striking the period at the end and inserting <quote>; and</quote>; and</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id4daba3cc68e64893b3093644a762fcda"><enum>(3)</enum><text display-inline="yes-display-inline">by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id847E56A7AAB04CF58A88A76288CEC919"><subparagraph commented="no" display-inline="no-display-inline" id="id6a4c5e78a7be4c46b2f1b2a491c39ed3"><enum>(G)</enum><text>for each award granted, whether the award is classified or designated as—</text><clause commented="no" display-inline="no-display-inline" id="id93f6833b3fc84e558b1d579daae349fb"><enum>(i)</enum><text display-inline="yes-display-inline">Phase 1A, under subsection (pp);</text></clause><clause commented="no" display-inline="no-display-inline" id="id67d2aae5c4ba4d50be4207621cc7ae43"><enum>(ii)</enum><text display-inline="yes-display-inline">direct to Phase II, under subsection (cc);</text></clause><clause commented="no" display-inline="no-display-inline" id="id75150a37c0f44fc583a14f892639d09d"><enum>(iii)</enum><text>subsequent Phase II, under subsection (bb)(1); </text></clause><clause commented="no" display-inline="no-display-inline" id="id692d9b0d2e8445608aef883359f38a52"><enum>(iv)</enum><text display-inline="yes-display-inline">strategic breakthrough award under subsection (ff)(3); </text></clause><clause commented="no" display-inline="no-display-inline" id="idf24c7464874240aca2384f72fd7d36ab"><enum>(v)</enum><text display-inline="yes-display-inline">Phase III prime contract award; or</text></clause><clause commented="no" display-inline="no-display-inline" id="idbed9f7c429d24f6ab56c610b3ee94e6b"><enum>(vi)</enum><text display-inline="yes-display-inline">Phase III subcontract award.</text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ida9c7ad0a6c634aa19ed8ce9eb91510de"><enum>(b)</enum><header>Improving FPDS data tracking</header><paragraph commented="no" display-inline="no-display-inline" id="id12b186f62aa5471985903ad7f740c00b"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="id24099279124b4f3198d99c64802b34d6"><enum>(A)</enum><text display-inline="yes-display-inline">require reporting on whether an award under the SBIR or STTR program is classified or designated as—</text><clause commented="no" display-inline="no-display-inline" id="idD1FC4B0A959F4081B851E6F305D0D475"><enum>(i)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="id2681d8c159e34fd8927c23ede3ed49cb"><enum>(ii)</enum><text>direct to Phase II, under subsection (cc) of such section;</text></clause><clause commented="no" display-inline="no-display-inline" id="id08D78702A0654370A88247A8EEA136FB"><enum>(iii)</enum><text display-inline="yes-display-inline">subsequent Phase II, under subsection (bb)(1) of such section;</text></clause><clause commented="no" display-inline="no-display-inline" id="idBCBCD09BB58F4C079623547D02E4B07B"><enum>(iv)</enum><text>a strategic breakthrough award under subsection (ff)(3) of such section;</text></clause><clause commented="no" display-inline="no-display-inline" id="ide77117fa84644fd3bc9a4ce74497f1f3"><enum>(v)</enum><text>a Phase III prime contract award; or</text></clause><clause commented="no" display-inline="no-display-inline" id="id7bce8352dae24528892e21b3af05dd9e"><enum>(vi)</enum><text>a Phase III subcontract award; </text></clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id223861ae253d4f2d9dbef49ec6693a56"><enum>(B)</enum><text>require reporting on whether a contract is designated as a Phase III contract; and</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idb60cc1ef9d434015bc3dfc6d6c8646ab"><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 commented="no" display-inline="no-display-inline" id="id1b6df89186f046e18fa56eaf6f06f379"><enum>(2)</enum><header>No new funds</header><text display-inline="yes-display-inline">No additional funds are authorized to be appropriated for the purpose of carrying out this subsection.</text></paragraph></subsection></section><section commented="no" display-inline="no-display-inline" section-type="subsequent-section" id="id0e15493e851c4f54b8edfa036027e900"><enum>504.</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="id52c4a80a56a64620a7cb8d26129665b2"><enum>(1)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="id938379a7a47d43d3bba36bd4568dc3cf"><enum>(2)</enum><text display-inline="yes-display-inline">in subsection (gg)—</text><subparagraph commented="no" display-inline="no-display-inline" id="id5c5aa3cbac55459cb0fbd5d8f41ebd03"><enum>(A)</enum><text display-inline="yes-display-inline">in the heading, by striking <quote><header-in-text style="OLC" level="subsection">Pilot Program</header-in-text></quote> and inserting <quote><header-in-text style="OLC" level="subsection">Commercialization Readiness Program</header-in-text></quote>;</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idab9120d7ecd148238fcc42736dfdebd7"><enum>(B)</enum><text>by striking <quote>pilot</quote> each place the term appears;</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idd9970860ff014cfd907bc360f53489c1"><enum>(C)</enum><text display-inline="yes-display-inline">by striking paragraph (7);</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id7ddd61da21704642965af1f40954aaa4"><enum>(D)</enum><text>by redesignating paragraph (8) as paragraph (7); and</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idb3a53d09c1f14c6fa8cf6cc8efcbdff3"><enum>(E)</enum><text display-inline="yes-display-inline">by amending paragraph (7), as so redesignated, to read as follows:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id5DCFD222358441E7B9A7201F1DF3FDA1"><paragraph commented="no" display-inline="no-display-inline" id="id59689a27b504403c94999fc5fd105215"><enum>(7)</enum><header>Definition</header><text>In this subsection, the term <term>covered Federal agency</term>—</text><subparagraph commented="no" display-inline="no-display-inline" id="id8321a4fb69364665ae97d2e1060aa48a"><enum>(A)</enum><text display-inline="yes-display-inline">means a Federal agency participating in the SBIR program or the STTR program; and</text></subparagraph><subparagraph id="ID5C5B48AE6A3E4D7C8E4AF4679C41B47C"><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="id8dff3d0bda634d14b1133fb1da4bf0b1" commented="no"><enum>(3)</enum><text>in subsection (hh)—</text><subparagraph commented="no" display-inline="no-display-inline" id="id6a9efa7d2c3d46c48aa5088b729a20d9"><enum>(A)</enum><text display-inline="yes-display-inline">by striking <quote><header-in-text style="OLC" level="subsection">funding</header-in-text>.—</quote> and all that follows through <quote>Federal agencies participating</quote> and inserting <quote><header-in-text style="OLC" level="subsection">funding</header-in-text>.—Federal agencies participating</quote>; and</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idc82e6317c89342d69fdc604824ceb34c"><enum>(B)</enum><text>by striking paragraph (2);</text></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id0ba3b384697c4f71bb45c35b108d2d65"><enum>(4)</enum><text display-inline="yes-display-inline">in subsection (ii)(2)(B)—</text><subparagraph commented="no" display-inline="no-display-inline" id="id95a2a90514424147b40e0a0ec4906856"><enum>(A)</enum><text display-inline="yes-display-inline">in clause (ii), by adding <quote>and</quote> at the end;</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ided6f58046c434c94bd778f66b5e101b7"><enum>(B)</enum><text display-inline="yes-display-inline">in clause (iii), by striking <quote>; and</quote> and inserting a period; and</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id3294cff8e81e4052a1bf720c138090ad"><enum>(C)</enum><text>by striking clause (iv);</text></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idd5f2d8da54ae4ff985fbfef9a55afecb"><enum>(5)</enum><text>in subsection (qq)(3), by striking subparagraph (I); </text></paragraph><paragraph id="id74ecb9ec7d9f41b6b603f1c386e4038f" commented="no" display-inline="no-display-inline"><enum>(6)</enum><text>in subsection (vv)(3), by striking subparagraph (C);</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id07155c2940ae4f5ab3071bb82f57e278"><enum>(7)</enum><text>by redesignating subsection (yy) as subsection (xx);</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id47b4e77fd4ff472b85cca2080a459667"><enum>(8)</enum><text display-inline="yes-display-inline">in subsection (xx), as so redesignated—</text><subparagraph commented="no" display-inline="no-display-inline" id="id8154ae85da874a0c8027fd471fc31b99"><enum>(A)</enum><text display-inline="yes-display-inline">in the subsection heading, by striking <quote><header-in-text style="OLC" level="subsection">Pilot</header-in-text></quote>;</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id57a43d7c0ca34c4198053b8ffc59bb01"><enum>(B)</enum><text display-inline="yes-display-inline">by striking <quote><header-in-text style="OLC" level="subsection">STTR Program</header-in-text>.—</quote> and all that follows through <quote>Not later than</quote> and inserting <quote><header-in-text style="OLC" level="subsection">STTR Program</header-in-text>.—Not later than</quote>; </text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idc0d67496f2b143809294eee30cf15dd0"><enum>(C)</enum><text display-inline="yes-display-inline">by striking paragraph (2); and</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id568356c7702545fa93d7b945c6bab541"><enum>(D)</enum><text>by striking <quote>pilot</quote>; </text></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idd87363ddcdf94a52aee56f248725dca8"><enum>(9)</enum><text>by redesignating subsection (zz) as subsection (yy); and</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id3734b857e2e5491dadbe10616053b087"><enum>(10)</enum><text>in subsection (yy), as so redesignated—</text><subparagraph commented="no" display-inline="no-display-inline" id="id4016ce4a3f94432c979c5e4bb735a404"><enum>(A)</enum><text display-inline="yes-display-inline">in the subsection heading, by striking <quote><header-in-text style="OLC" level="subsection">Pilot</header-in-text></quote>; </text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id4bdf5b0fded2481d9ab967e17921736d"><enum>(B)</enum><text display-inline="yes-display-inline">in paragraph (1)—</text><clause commented="no" display-inline="no-display-inline" id="ida4e0f4f434c24349a89a4a95fc214902"><enum>(i)</enum><text display-inline="yes-display-inline">in the paragraph heading, by striking <quote><header-in-text style="OLC" level="paragraph">Pilot</header-in-text></quote> and inserting <quote><header-in-text style="OLC" level="paragraph">Program</header-in-text></quote>;</text></clause><clause commented="no" display-inline="no-display-inline" id="idbb416c4fd73345bb85fb2282edb774b6"><enum>(ii)</enum><text>in subparagraph (B), by striking <quote>3.25</quote> and inserting <quote>3.50</quote>; and</text></clause><clause commented="no" display-inline="no-display-inline" id="id8f52fe02d1b84bd99e6564398048c3b7"><enum>(iii)</enum><text>in subparagraph (C), by striking <quote>0.46</quote> and inserting <quote>0.21</quote>;</text></clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idcbe8c631a3b04fdb880307bd917978b4"><enum>(C)</enum><text display-inline="yes-display-inline">by striking paragraph (3); and</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idf6555342b6be4e2da9d522cae6570a4a"><enum>(D)</enum><text>by striking <quote>pilot</quote> each place the term appears.</text></subparagraph></paragraph></section><section commented="no" display-inline="no-display-inline" id="id8ad2566a20d74c9c90963acb251e1e2f"><enum>505.</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 commented="no" display-inline="no-display-inline" id="id918c5924dafc4600b842239cc58bcdf4"><enum>(1)</enum><text display-inline="yes-display-inline">in subsection (m), by striking <quote>2025</quote> and inserting <quote>2028</quote>; and</text></paragraph><paragraph id="id2f9dd89d27ab4547a68ff53070dc825c" commented="no" display-inline="no-display-inline"><enum>(2)</enum><text>in subsection (n)(1)(A), by striking <quote>2025</quote> and inserting <quote>2028</quote>.</text></paragraph></section>