[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[S. 493 Reported in Senate (RS)]

                                                        Calendar No. 17
112th CONGRESS
  1st Session
                                 S. 493

 To reauthorize and improve the SBIR and STTR programs, and for other 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 4, 2011

     Ms. Landrieu (for herself, Ms. Snowe, Mr. Kerry, Mr. Brown of 
Massachusetts, Mrs. Shaheen, Ms. Ayotte, Mr. Cardin, Mr. Pryor, and Mr. 
Levin) introduced the following bill; which was read twice and referred 
        to the Committee on Small Business and Entrepreneurship

                             March 9, 2011

               Reported by Ms. Landrieu, with amendments
  [Omit the part struck through and insert the part printed in italic]

_______________________________________________________________________

                                 A BILL


 
 To reauthorize and improve the SBIR and STTR programs, and for other 
                               purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``SBIR/STTR Reauthorization Act of 
2011''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. Definitions.
         TITLE I--REAUTHORIZATION OF THE SBIR AND STTR PROGRAMS

Sec. 101. Extension of termination dates.
Sec. 102. Status of the Office of Technology.
Sec. 103. SBIR allocation increase.
Sec. 104. STTR allocation increase.
Sec. 105. SBIR and STTR award levels.
Sec. 106. Agency and program flexibility.
Sec. 107. Elimination of Phase II invitations.
Sec. 108. Participation by firms with substantial investment from 
                            multiple venture capital operating 
                            companies in a portion of the SBIR program.
Sec. 109. SBIR and STTR special acquisition preference.
Sec. 110. Collaborating with Federal laboratories and research and 
                            development centers.
Sec. 111. Notice requirement.
Sec. 112. Express authority for an agency to award sequential Phase II 
                            awards for SBIR or STTR funded projects.
          TITLE II--OUTREACH AND COMMERCIALIZATION INITIATIVES

Sec. 201. Rural and State outreach.
<DELETED>Sec. 202. SBIR-STEM Workforce Development Grant Pilot Program.
</DELETED>Sec. <DELETED>203</DELETED>202. Technical assistance for 
                            awardees.
Sec. <DELETED>204</DELETED>203. Commercialization Readiness Program at 
                            Department of Defense.
Sec. <DELETED>205</DELETED>204. Commercialization Readiness Pilot 
                            Program for civilian agencies.
Sec. <DELETED>206</DELETED>205. Accelerating cures.
Sec. <DELETED>207</DELETED>206. Federal agency engagement with SBIR and 
                            STTR awardees that have been awarded 
                            multiple Phase I awards but have not been 
                            awarded Phase II awards.
Sec. <DELETED>208</DELETED>207. Clarifying the definition of ``Phase 
                            III''.
Sec. <DELETED>209</DELETED>208. Shortened period for final decisions on 
                            proposals and applications.
                  TITLE III--OVERSIGHT AND EVALUATION

Sec. 301. Streamlining annual evaluation requirements.
Sec. 302. Data collection from agencies for SBIR.
Sec. 303. Data collection from agencies for STTR.
Sec. 304. Public database.
Sec. 305. Government database.
Sec. 306. Accuracy in funding base calculations.
Sec. 307. Continued evaluation by the National Academy of Sciences.
Sec. 308. Technology insertion reporting requirements.
Sec. 309. Intellectual property protections.
Sec. 310. Obtaining consent from SBIR and STTR applicants to release 
                            contact information to economic development 
                            organizations.
Sec. 311. Pilot to allow funding for administrative, oversight, and 
                            contract processing costs.
Sec. 312. GAO study with respect to venture capital operating company 
                            involvement.
Sec. 313. Reducing vulnerability of SBIR and STTR programs to fraud, 
                            waste, and abuse.
Sec. 314. Interagency policy committee.
Sec. 315. Simplified paperwork requirements.
                      TITLE IV--POLICY DIRECTIVES

Sec. 401. Conforming amendments to the SBIR and the STTR Policy 
                            Directives.
                       TITLE V--OTHER PROVISIONS

Sec. 501. Research topics and program diversification.
Sec. 502. Report on SBIR and STTR program goals.
Sec. 503. Competitive selection procedures for SBIR and STTR programs.

SEC. 3. DEFINITIONS.

    In this Act--
            (1) the terms ``Administration'' and ``Administrator'' mean 
        the Small Business Administration and the Administrator 
        thereof, respectively;
            (2) the terms ``extramural budget'', ``Federal agency'', 
        ``Small Business Innovation Research Program'', ``SBIR'', 
        ``Small Business Technology Transfer Program'', and ``STTR'' 
        have the meanings given such terms in section 9 of the Small 
        Business Act (15 U.S.C. 638); and
            (3) the term ``small business concern'' has the meaning 
        given that term under section 3 of the Small Business Act (15 
        U.S.C. 632).

         TITLE I--REAUTHORIZATION OF THE SBIR AND STTR PROGRAMS

SEC. 101. EXTENSION OF TERMINATION DATES.

    (a) SBIR.--Section 9(m) of the Small Business Act (15 U.S.C. 
638(m)) is amended--
            (1) by striking ``Termination.--'' and all that follows 
        through ``the authorization'' and inserting ``Termination.--The 
        authorization'';
            (2) by striking ``2008'' and inserting ``2019''; and
            (3) by striking paragraph (2).
    (b) STTR.--Section 9(n)(1)(A) of the Small Business Act (15 U.S.C. 
638(n)(1)(A)) is amended--
            (1) by striking ``In general.--'' and all that follows 
        through ``with respect'' and inserting ``In general.--With 
        respect'';
            (2) by striking ``2009'' and inserting ``2019''; and
            (3) by striking clause (ii).

SEC. 102. STATUS OF THE OFFICE OF TECHNOLOGY.

    Section 9(b) of the Small Business Act (15 U.S.C. 638(b)) is 
amended--
            (1) in paragraph (7), by striking ``and'' at the end;
            (2) in paragraph (8), by striking the period at the end and 
        inserting ``; and'';
            (3) by redesignating paragraph (8) as paragraph (9); and
            (4) by adding at the end the following:
            ``(10) to maintain an Office of Technology to carry out the 
        responsibilities of the Administration under this section, 
        which shall be--
                    ``(A) headed by the Assistant Administrator for 
                Technology, who shall report directly to the 
                Administrator; and
                    ``(B) independent from the Office of Government 
                Contracting of the Administration and sufficiently 
                staffed and funded to comply with the oversight, 
                reporting, and public database responsibilities 
                assigned to the Office of Technology by the 
                Administrator.''.

SEC. 103. SBIR ALLOCATION INCREASE.

    Section 9(f) of the Small Business Act (15 U.S.C. 638(f)) is 
amended--
            (1) in paragraph (1)--
                    (A) in the matter preceding subparagraph (A), by 
                striking ``Each'' and inserting ``Except as provided in 
                paragraph (2)(B), each'';
                    (B) in subparagraph (B), by striking ``and'' at the 
                end; and
                    (C) by striking subparagraph (C) and inserting the 
                following:
                    ``(C) not less than 2.5 percent of such budget in 
                fiscal year 2013;
                    ``(D) not less than 2.6 percent of such budget in 
                fiscal year 2014;
                    ``(E) not less than 2.7 percent of such budget in 
                fiscal year 2015;
                    ``(F) not less than 2.8 percent of such budget in 
                fiscal year 2016;
                    ``(G) not less than 2.9 percent of such budget in 
                fiscal year 2017;
                    ``(H) not less than 3.0 percent of such budget in 
                fiscal year 2018;
                    ``(I) not less than 3.1 percent of such budget in 
                fiscal year 2019;
                    ``(J) not less than 3.2 percent of such budget in 
                fiscal year 2020;
                    ``(K) not less than 3.3 percent of such budget in 
                fiscal year 2021;
                    ``(L) not less than 3.4 percent of such budget in 
                fiscal year 2022; and
                    ``(M) not less than 3.5 percent of such budget in 
                fiscal year 2023 and each fiscal year thereafter.''; 
                <DELETED>and
        </DELETED>    (2) in paragraph (2)--
                    (A) by redesignating subparagraphs (A) and (B) as 
                clauses (i) and (ii), respectively, and adjusting the 
                margins accordingly;
                    (B) by striking ``A Federal agency'' and inserting 
                the following:
                    ``(A) In general.--A Federal agency''; and
                    (C) by adding at the end the following:
                    ``(B) Department of defense and department of 
                energy.--For the Department of Defense and the 
                Department of Energy, to the greatest extent 
                practicable, the percentage of the extramural budget in 
                excess of 2.5 percent required to be expended with 
                small business concerns under subparagraphs (D) through 
                (M) of paragraph (1)--
                            ``(i) may not be used for new Phase I or 
                        Phase II awards; and
                            ``(ii) shall be used for activities that 
                        further the readiness levels of technologies 
                        developed under Phase II awards, including 
                        conducting testing and evaluation to promote 
                        the transition of such technologies into 
                        commercial or defense products, or systems 
                        furthering the mission needs of the Department 
                        of Defense or the Department of Energy, as the 
                        case may be.''<DELETED>.</DELETED>; and
            (3) by adding at the end the following:
            ``(4) Rule of construction.--Nothing in this subsection may 
        be construed to prohibit a Federal agency from expending with 
        small business concerns an amount of the extramural budget for 
        research or research and development of the Federal agency that 
        exceeds the amount required under paragraph (1).''.

SEC. 104. STTR ALLOCATION INCREASE.

    Section 9(n)(1)(B) of the Small Business Act (15 U.S.C. 
638(n)(1)(B)) is amended--
            (1) in clause (i), by striking ``and'' at the end;
            (2) in clause (ii), by striking ``thereafter.'' and 
        inserting ``through fiscal year 2012;''; <DELETED>and
        </DELETED>    (3) by adding at the end the following:
                            ``(iii) 0.4 percent for fiscal years 2013 
                        and 2014;
                            ``(iv) 0.5 percent for fiscal years 2015 
                        and 2016; and
                            ``(v) 0.6 percent for fiscal year 2017 and 
                        each fiscal year 
                        thereafter.''<DELETED>.</DELETED>; and
            (4) by adding at the end the following:
            ``(4) Rule of construction.--Nothing in this subsection may 
        be construed to prohibit a Federal agency from expending with 
        small business concerns an amount of the extramural budget for 
        research or research and development of the Federal agency that 
        exceeds the amount required under paragraph (1).''.

SEC. 105. SBIR AND STTR AWARD LEVELS.

    (a) SBIR Adjustments.--Section 9(j)(2)(D) of the Small Business Act 
(15 U.S.C. 638(j)(2)(D)) is amended--
            (1) by striking ``$100,000'' and inserting ``$150,000''; 
        and
            (2) by striking ``$750,000'' and inserting ``$1,000,000''.
    (b) STTR Adjustments.--Section 9(p)(2)(B)(ix) of the Small Business 
Act (15 U.S.C. 638(p)(2)(B)(ix)) is amended--
            (1) by striking ``$100,000'' and inserting ``$150,000''; 
        and
            (2) by striking ``$750,000'' and inserting ``$1,000,000''.
    (c) Annual Adjustments.--Section 9 of the Small Business Act (15 
U.S.C. 638) is amended--
            (1) in subsection (j)(2)(D), by striking ``once every 5 
        years to reflect economic adjustments and programmatic 
        considerations'' and inserting ``every year for inflation''; 
        and
            (2) in subsection (p)(2)(B)(ix), as amended by subsection 
        (b) of this section, by inserting ``(each of which the 
        Administrator shall adjust for inflation annually)'' after 
        ``$1,000,000,''.
    (d) Limitation on Size of Awards.--Section 9 of the Small Business 
Act (15 U.S.C. 638) is amended by adding at the end the following:
    ``(aa) Limitation on Size of Awards.--
            ``(1) Limitation.--No Federal agency may issue an award 
        under the SBIR program or the STTR program if the size of the 
        award exceeds the award guidelines established under this 
        section by more than 50 percent.
            ``(2) Maintenance of information.--Participating agencies 
        shall maintain information on awards exceeding the guidelines 
        established under this section, including--
                    ``(A) the amount of each award;
                    ``(B) a justification for exceeding the award 
                amount;
                    ``(C) the identity and location of each award 
                recipient; and
                    ``(D) whether an award recipient has received any 
                venture capital investment and, if so, whether the 
                recipient is majority-owned by multiple venture capital 
                operating companies.
            ``(3) Reports.--The Administrator shall include the 
        information described in paragraph (2) in the annual report of 
        the Administrator to Congress.
            ``(4) Rule of construction.--Nothing in this subsection 
        shall be construed to prevent a Federal agency from 
        supplementing an award under the SBIR program or the STTR 
        program using funds of the Federal agency that are not part of 
        the SBIR program or the STTR program of the Federal agency.''.

SEC. 106. AGENCY AND PROGRAM FLEXIBILITY.

    Section 9 of the Small Business Act (15 U.S.C. 638), as amended by 
this Act, is amended by adding at the end the following:
    ``(bb) Subsequent Phase II Awards.--
            ``(1) Agency flexibility.--A small business concern that 
        received an award from a Federal agency under this section 
        shall be eligible to receive a subsequent Phase II award from 
        another Federal agency, if the head of each relevant Federal 
        agency or the relevant component of the Federal agency makes a 
        written determination that the topics of the relevant awards 
        are the same and both agencies report the awards to the 
        Administrator for inclusion in the public database under 
        subsection (k).
            ``(2) SBIR and sttr program flexibility.--A small business 
        concern that received an award under this section under the 
        SBIR program or the STTR program may receive a subsequent Phase 
        II award in either the SBIR program or the STTR program and the 
        participating agency or agencies shall report the awards to the 
        Administrator for inclusion in the public database under 
        subsection (k).
            ``(3) Preventing duplicative awards.--Before making an 
        award under paragraph (1) or (2), the head of a Federal agency 
        shall verify that the project to be performed with the award 
        has not been funded under the SBIR program or STTR program of 
        another Federal agency.''.

SEC. 107. ELIMINATION OF PHASE II INVITATIONS.

    (a) In General.--Section 9(e) of the Small Business Act (15 U.S.C. 
638(e)) is amended--
            (1) in paragraph (4)(B), by striking ``to further'' and 
        inserting: ``which shall not include any invitation, pre-
        screening, pre-selection, or down-selection process for 
        eligibility for the second phase, that will further''; and
            (2) in paragraph (6)(B), by striking ``to further develop 
        proposed ideas to'' and inserting ``which shall not include any 
        invitation, pre-screening, pre-selection, or down-selection 
        process for eligibility for the second phase, that will further 
        develop proposals that''.

SEC. 108. PARTICIPATION BY FIRMS WITH SUBSTANTIAL INVESTMENT FROM 
              MULTIPLE VENTURE CAPITAL OPERATING COMPANIES IN A PORTION 
              OF THE SBIR PROGRAM.

    (a) In General.--Section 9 of the Small Business Act (15 U.S.C. 
638), as amended by this Act, is amended by adding at the end the 
following:
    ``(cc) Participation of Small Business Concerns Majority-Owned by 
Venture Capital Operating Companies in the SBIR Program.--
            ``(1) Authority.--Upon a written determination described in 
        paragraph (2) provided to the Administrator and to the 
        Committee on Small Business and Entrepreneurship of the Senate 
        and the Committee on Small Business of the House of 
        Representatives not later than 30 days before the date on which 
        an award is made--
                    ``(A) the Director of the National Institutes of 
                Health, the Secretary of Energy, and the Director of 
                the National Science Foundation may award not more than 
                25 percent of the funds allocated for the SBIR program 
                of the Federal agency to small business concerns that 
                are owned in majority part by multiple venture capital 
                operating companies through competitive, merit-based 
                procedures that are open to all eligible small business 
                concerns; and
                    ``(B) the head of a Federal agency other than a 
                Federal agency described in subparagraph (A) that 
                participates in the SBIR program may award not more 
                than 15 percent of the funds allocated for the SBIR 
                program of the Federal agency to small business 
                concerns that are owned in majority part by multiple 
                venture capital operating companies through 
                competitive, merit-based procedures that are open to 
                all eligible small business concerns.
            ``(2) Determination.--A written determination described in 
        this paragraph is a written determination by the head of a 
        Federal agency that explains how the use of the authority under 
        paragraph (1) will--
                    ``(A) induce additional venture capital funding of 
                small business innovations;
                    ``(B) substantially contribute to the mission of 
                the Federal agency;
                    ``(C) demonstrate a need for public research; and
                    ``(D) otherwise fulfill the capital needs of small 
                business concerns for additional financing for the SBIR 
                project.
            ``(3) Registration.--A small business concern that is 
        majority-owned by multiple venture capital operating companies 
        and qualified for participation in the program authorized under 
        paragraph (1) shall--
                    ``(A) register with the Administrator on the date 
                that the small business concern submits an application 
                for an award under the SBIR program; and
                    ``(B) indicate in any SBIR proposal that the small 
                business concern is registered under subparagraph (A) 
                as majority-owned by multiple venture capital operating 
                companies.
            ``(4) Compliance.--
                    ``(A) In general.--The head of a Federal agency 
                that makes an award under this subsection during a 
                fiscal year shall collect and submit to the 
                Administrator data relating to the number and dollar 
                amount of Phase I awards, Phase II awards, and any 
                other category of awards by the Federal agency under 
                the SBIR program during that fiscal year.
                    ``(B) Annual reporting.--The Administrator shall 
                include as part of each annual report by the 
                Administration under subsection (b)(7) any data 
                submitted under subparagraph (A) and a discussion of 
                the compliance of each Federal agency that makes an 
                award under this subsection during the fiscal year with 
                the maximum percentages under paragraph (1).
            ``(5) Enforcement.--If a Federal agency awards more than 
        the percent of the funds allocated for the SBIR program of the 
        Federal agency authorized under paragraph (1) for a purpose 
        described in paragraph (1), the head of the Federal agency 
        shall transfer an amount equal to the amount awarded in excess 
        of the amount authorized under paragraph (1) to the funds for 
        general SBIR programs from the non-SBIR and non-STTR research 
        and development funds of the Federal agency not later than 180 
        days after the date on which the Federal agency made the award 
        that caused the total awarded under paragraph (1) to be more 
        than the amount authorized under paragraph (1) for a purpose 
        described in paragraph (1).
            ``(6) Final decisions on applications under the sbir 
        program.--
                    ``(A) Definition.--In this paragraph, the term 
                `covered small business concern' means a small business 
                concern that--
                            ``(i) was not majority-owned by multiple 
                        venture capital operating companies on the date 
                        on which the small business concern submitted 
                        an application in response to a solicitation 
                        under the SBIR programs; and
                            ``(ii) on the date of the award under the 
                        SBIR program is majority-owned by multiple 
                        venture capital operating companies.
                    ``(B) In general.--If a Federal agency does not 
                make an award under a solicitation under the SBIR 
                program before the date that is 9 months after the date 
                on which the period for submitting applications under 
                the solicitation ends--
                            ``(i) a covered small business concern is 
                        eligible to receive the award, without regard 
                        to whether the covered small business concern 
                        meets the requirements for receiving an award 
                        under the SBIR program for a small business 
                        concern that is majority-owned by multiple 
                        venture capital operating companies, if the 
                        covered small business concern meets all other 
                        requirements for such an award; and
                            ``(ii) the head of the Federal agency shall 
                        transfer an amount equal to any amount awarded 
                        to a covered small business concern under the 
                        solicitation to the funds for general SBIR 
                        programs from the non-SBIR and non-STTR 
                        research and development funds of the Federal 
                        agency, not later than 90 days after the date 
                        on which the Federal agency makes the award.
            ``<DELETED>(6)</DELETED>(7) Evaluation criteria.--A Federal 
        agency may not use investment of venture capital as a criterion 
        for the award of contracts under the SBIR program or STTR 
        program.
    (b) Technical and Conforming Amendment.--Section 3 of the Small 
Business Act (15 U.S.C. 632) is amended by adding at the end the 
following:
    ``(aa) Venture Capital Operating Company.--In this Act, the term 
`venture capital operating company' means an entity described in clause 
(i), (v), or (vi) of section 121.103(b)(5) of title 13, Code of Federal 
Regulations (or any successor thereto).''.
    (c) Rulemaking To Ensure That Firms That Are Majority-Owned by 
Multiple Venture Capital Operating Companies Are Able To Participate in 
a Portion of the SBIR Program.--
            (1) Statement of congressional intent.--It is the stated 
        intent of Congress that the Administrator should promulgate 
        regulations to carry out the authority under section 9(cc) of 
        the Small Business Act, as added by this section, that--
                    (A) permit small business concerns that are 
                majority-owned by multiple venture capital operating 
                companies to participate in the SBIR program in 
                accordance with section 9(cc) of the Small Business 
                Act;
                    (B) provide specific guidance for small business 
                concerns that are majority-owned by multiple venture 
                capital operating companies with regard to eligibility, 
                participation, and affiliation rules; and
                    (C) preserve and maintain the integrity of the SBIR 
                program as a program for small business concerns in the 
                United States, prohibiting large businesses or large 
                entities or foreign-owned businesses or entities from 
                participation in the program established under section 
                9 of the Small Business Act.
            (2) Rulemaking required.--
                    (A) Proposed regulations.--Not later than 4 months 
                after the date of enactment of this Act, the 
                Administrator shall issue proposed regulations to amend 
                section 121.103 (relating to determinations of 
                affiliation applicable to the SBIR program) and section 
                121.702 (relating to ownership and control standards 
                and size standards applicable to the SBIR program) of 
                title 13, Code of Federal Regulations, for firms that 
                are majority-owned by multiple venture capital 
                operating companies and participating in the SBIR 
                program solely under the authority under section 9(cc) 
                of the Small Business Act, as added by this section.
                    (B) Final regulations.--Not later than 1 year after 
                the date of enactment of this Act, and after providing 
                notice of and opportunity for comment on the proposed 
                regulations issued under subparagraph (A), the 
                Administrator shall issue final or interim final 
                regulations under this subsection.
            (3) Contents.--
                    (A) In general.--The regulations issued under this 
                subsection shall permit the participation of applicants 
                majority-owned by multiple venture capital operating 
                companies in the SBIR program in accordance with 
                section 9(cc) of the Small Business Act, as added by 
                this section, unless the Administrator determines--
                            (i) in accordance with the size standards 
                        established under subparagraph (B), that the 
                        applicant is--
                                    (I) a large business or large 
                                entity; or
                                    (II) majority-owned or controlled 
                                by a large business or large entity; or
                            (ii) in accordance with the criteria 
                        established under subparagraph (C), that the 
                        applicant--
                                    (I) is a foreign business or a 
                                foreign entity or is not a citizen of 
                                the United States or alien lawfully 
                                admitted for permanent residence; or
                                    (II) is majority-owned or 
                                controlled by a foreign business, 
                                foreign entity, or person who is not a 
                                citizen of the United States or alien 
                                lawfully admitted for permanent 
                                residence.
                    (B) Size standards.--Under the authority to 
                establish size standards under paragraphs (2) and (3) 
                of section 3(a) of the Small Business Act (15 U.S.C. 
                632(a)), the Administrator shall, in accordance with 
                paragraph (1) of this subsection, establish size 
                standards for applicants seeking to participate in the 
                SBIR program solely under the authority under section 
                9(cc) of the Small Business Act, as added by this 
                section.
                    (C) Criteria for determining foreign ownership.--
                The Administrator shall establish criteria for 
                determining whether an applicant meets the requirements 
                under subparagraph (A)(ii), and, in establishing the 
                criteria, shall consider whether the criteria should 
                include--
                            (i) whether the applicant is at least 51 
                        percent owned or controlled by citizens of the 
                        United States or domestic venture capital 
                        operating companies;
                            (ii) whether the applicant is domiciled in 
                        the United States; and
                            (iii) whether the applicant is a direct or 
                        indirect subsidiary of a foreign-owned firm, 
                        including whether the criteria should include 
                        that an applicant is a direct or indirect 
                        subsidiary of a foreign-owned entity if--
                                    (I) any venture capital operating 
                                company that owns more than 20 percent 
                                of the applicant is a direct or 
                                indirect subsidiary of a foreign-owned 
                                entity; or
                                    (II) in the aggregate, entities 
                                that are direct or indirect 
                                subsidiaries of foreign-owned entities 
                                own more than 49 percent of the 
                                applicant.
                    (D) Criteria for determining affiliation.--The 
                Administrator shall establish criteria, in accordance 
                with paragraph (1), for determining whether an 
                applicant is affiliated with a venture capital 
                operating company or any other business that the 
                venture capital operating company has financed and, in 
                establishing the criteria, shall specify that--
                            (i) if a venture capital operating company 
                        that is determined to be affiliated with an 
                        applicant is a minority investor in the 
                        applicant, the portfolio companies of the 
                        venture capital operating company shall not be 
                        determined to be affiliated with the applicant, 
                        unless--
                                    (I) the venture capital operating 
                                company owns a majority of the 
                                portfolio company; or
                                    (II) the venture capital operating 
                                company holds a majority of the seats 
                                on the board of directors of the 
                                portfolio company;
                            (ii) subject to clause (i), the 
                        Administrator retains the authority to 
                        determine whether a venture capital operating 
                        company is affiliated with an applicant, 
                        including establishing other criteria;
                            (iii) the Administrator may not determine 
                        that a portfolio company of a venture capital 
                        operating company is affiliated with an 
                        applicant based solely on one or more shared 
                        investors; and
                            (iv) subject to clauses (i), (ii), and 
                        (iii), the Administrator retains the authority 
                        to determine whether a portfolio company of a 
                        venture capital operating company is affiliated 
                        with an applicant based on factors independent 
                        of whether there is a shared investor, such as 
                        whether there are contractual obligations 
                        between the portfolio company and the 
                        applicant.
            (4) Enforcement.--If the Administrator does not issue final 
        or interim final regulations under this subsection on or before 
        the date that is 1 year after the date of enactment of this 
        Act, the Administrator may not carry out any activities under 
        section 4(h) of the Small Business Act (15 U.S.C. 633(h)) (as 
        continued in effect pursuant to the Act entitled ``An Act to 
        extend temporarily certain authorities of the Small Business 
        Administration'', approved October 10, 2006 (Public Law 109-
        316; 120 Stat. 1742)) during the period beginning on the date 
        that is 1 year and 1 day after the date of enactment of this 
        Act, and ending on the date on which the final or interim final 
        regulations are issued.
            (5) Definition.--In this subsection, the term ``venture 
        capital operating company'' has the same meaning as in section 
        3(aa) of the Small Business Act, as added by this section.
    (d) Assistance for Determining Affiliates.--
            (1) Clear explanation required.--Not later than 30 days 
        after the date of enactment of this Act, the Administrator 
        shall post on the Web site of the Administration (with a direct 
        link displayed on the homepage of the Web site of the 
        Administration or the SBIR and STTR Web sites of the 
        Administration)--
                    (A) a clear explanation of the SBIR and STTR 
                affiliation rules under part 121 of title 13, Code of 
                Federal Regulations; and
                    (B) contact information for officers or employees 
                of the Administration who--
                            (i) upon request, shall review an issue 
                        relating to the rules described in subparagraph 
                        (A); and
                            (ii) shall respond to a request under 
                        clause (i) not later than 20 business days 
                        after the date on which the request is 
                        received.
            (2) Inclusion of affiliation rules for certain small 
        business concerns.--On and after the date on which the final 
        regulations under subsection (c) are issued, the Administrator 
        shall post on the Web site of the Administration information 
        relating to the regulations, in accordance with paragraph (1).

SEC. 109. SBIR AND STTR SPECIAL ACQUISITION PREFERENCE.

    Section 9(r) of the Small Business Act (15 U.S.C. 638(r)) is 
amended by adding at the end the following:
            ``(4) Phase iii awards.--To the greatest extent 
        practicable, Federal agencies and Federal prime contractors 
        shall issue Phase III awards relating to technology, including 
        sole source awards, to the SBIR and STTR award recipients that 
        developed the technology.''.

SEC. 110. COLLABORATING WITH FEDERAL LABORATORIES AND RESEARCH AND 
              DEVELOPMENT CENTERS.

    Section 9 of the Small Business Act (15 U.S.C. 638), as amended by 
this Act, is amended by adding at the end the following:
    ``(dd) Collaborating With Federal Laboratories and Research and 
Development Centers.--
            ``(1) Authorization.--Subject to the limitations under this 
        section, the head of each participating Federal agency may make 
        SBIR and STTR awards to any eligible small business concern 
        that--
                    ``(A) intends to enter into an agreement with a 
                Federal laboratory or federally funded research and 
                development center for portions of the activities to be 
                performed under that award; or
                    ``(B) has entered into a cooperative research and 
                development agreement (as defined in section 12(d) of 
                the Stevenson-Wydler Technology Innovation Act of 1980 
                (15 U.S.C. 3710a(d))) with a Federal laboratory.
            ``(2) Prohibition.--No Federal agency shall--
                    ``(A) condition an SBIR or STTR award upon entering 
                into agreement with any Federal laboratory or any 
                federally funded laboratory or research and development 
                center for any portion of the activities to be 
                performed under that award;
                    ``(B) approve an agreement between a small business 
                concern receiving a SBIR or STTR award and a Federal 
                laboratory or federally funded laboratory or research 
                and development center, if the small business concern 
                performs a lesser portion of the activities to be 
                performed under that award than required by this 
                section and by the SBIR Policy Directive and the STTR 
                Policy Directive of the Administrator; or
                    ``(C) approve an agreement that violates any 
                provision, including any data rights protections 
                provision, of this section or the SBIR and the STTR 
                Policy Directives.
            ``(3) Implementation.--Not later than 180 days after the 
        date of enactment of this subsection, the Administrator shall 
        modify the SBIR Policy Directive and the STTR Policy Directive 
        issued under this section to ensure that small business 
        concerns--
                    ``(A) have the flexibility to use the resources of 
                the Federal laboratories and federally funded research 
                and development centers; and
                    ``(B) are not mandated to enter into agreement with 
                any Federal laboratory or any federally funded 
                laboratory or research and development center as a 
                condition of an award.''.

SEC. 111. NOTICE REQUIREMENT.

    (a) SBIR Program.--Section 9(g) of the Small Business Act (15 
U.S.C. 638(g)) is amended--
            (1) in paragraph (10), by striking ``and'' at the end;
            (2) in paragraph (11), by striking the period at the end 
        and inserting a semicolon; and
            (3) by adding at the end the following:
            ``(12) provide timely notice to the Administrator of any 
        case or controversy before any Federal judicial or 
        administrative tribunal concerning the SBIR program of the 
        Federal agency; and''.
    (b) STTR Program.--Section 9(o) of the Small Business Act (15 
U.S.C. 638(o)) is amended--
            (1) by striking paragraph (15);
            (2) in paragraph (16), by striking the period at the end 
        and inserting ``; and'';
            (3) by redesignating paragraph (16) as paragraph (15); and
            (4) by adding at the end the following:
            ``(16) provide timely notice to the Administrator of any 
        case or controversy before any Federal judicial or 
        administrative tribunal concerning the STTR program of the 
        Federal agency.''.

SEC. 112. EXPRESS AUTHORITY FOR AN AGENCY TO AWARD SEQUENTIAL PHASE II 
              AWARDS FOR SBIR OR STTR FUNDED PROJECTS.

    Section 9 of the Small Business Act (15 U.S.C. 638), as amended by 
this Act, is amended by adding at the end the following:
    ``(ee) Additional Phase II SBIR and STTR Awards.--A small business 
concern that receives a Phase II SBIR award or a Phase II STTR award 
for a project remains eligible to receive an additional Phase II SBIR 
award or Phase II STTR award for that project.''.

          TITLE II--OUTREACH AND COMMERCIALIZATION INITIATIVES

SEC. 201. RURAL AND STATE OUTREACH.

    (a) In General.--Section 9 of the Small Business Act (15 U.S.C. 
638) is amended by inserting after subsection (r) the following:
    ``(s) Federal and State Technology Partnership Program.--
            ``(1) Definitions.--In this subsection, the following 
        definitions apply:
                    ``(A) Applicant.--The term `applicant' means an 
                entity, organization, or individual that submits a 
                proposal for an award or a cooperative agreement under 
                this subsection.
                    ``(B) FAST program.--The term `FAST program' means 
                the Federal and State Technology Partnership Program 
                established under this subsection.
                    ``(C) Recipient.--The term `recipient' means a 
                person that receives an award or becomes party to a 
                cooperative agreement under this subsection.
                    ``(D) State.--The term `State' means each of the 
                several States, the District of Columbia, the 
                Commonwealth of Puerto Rico, the Virgin Islands, Guam, 
                and American Samoa.
                    ``(E) Definitions relating to mentoring networks.--
                The terms `business advice and counseling', `mentor', 
                and `mentoring network' have the meanings given those 
                terms in section 34(e).
            ``(2) Establishment of program.--The Administrator shall 
        establish a program to be known as the Federal and State 
        Technology Partnership Program, the purpose of which shall be 
        to strengthen the technological competitiveness of small 
        business concerns in the States.
            ``(3) Grants and cooperative agreements.--
                    ``(A) Joint review.--In carrying out the FAST 
                program, the Administrator and the program managers for 
                the SBIR program and STTR program at the National 
                Science Foundation, the Department of Defense, and any 
                other Federal agency determined appropriate by the 
                Administrator shall jointly review proposals submitted 
                by applicants and may make awards or enter into 
                cooperative agreements under this subsection based on 
                the factors for consideration set forth in subparagraph 
                (B), in order to enhance or develop in a State--
                            ``(i) technology research and development 
                        by small business concerns;
                            ``(ii) technology transfer from university 
                        research to technology-based small business 
                        concerns;
                            ``(iii) technology deployment and diffusion 
                        benefitting small business concerns;
                            ``(iv) the technological capabilities of 
                        small business concerns through the 
                        establishment or operation of consortia 
                        comprised of entities, organizations, or 
                        individuals, including--
                                    ``(I) State and local development 
                                agencies and entities;
                                    ``(II) representatives of 
                                technology-based small business 
                                concerns;
                                    ``(III) industries and emerging 
                                companies;
                                    ``(IV) universities; and
                                    ``(V) small business development 
                                centers; and
                            ``(v) outreach, financial support, and 
                        technical assistance to technology-based small 
                        business concerns participating in or 
                        interested in participating in an SBIR program 
                        or STTR program, including initiatives--
                                    ``(I) to make grants or loans to 
                                companies to pay a portion or all of 
                                the cost of developing SBIR or STTR 
                                proposals;
                                    ``(II) to establish or operate a 
                                Mentoring Network within the FAST 
                                program to provide business advice and 
                                counseling that will assist small 
                                business concerns that have been 
                                identified by FAST program 
                                participants, program managers of 
                                participating SBIR agencies, the 
                                Administration, or other entities that 
                                are knowledgeable about the SBIR and 
                                STTR programs as good candidates for 
                                the SBIR and STTR programs, and that 
                                would benefit from mentoring, in 
                                accordance with section 34;
                                    ``(III) to create or participate in 
                                a training program for individuals 
                                providing SBIR or STTR outreach and 
                                assistance at the State and local 
                                levels; and
                                    ``(IV) to encourage the 
                                commercialization of technology 
                                developed through funding under the 
                                SBIR program or the STTR program.
                    ``(B) Selection considerations.--In making awards 
                or entering into cooperative agreements under this 
                subsection, the Administrator and the program managers 
                referred to in subparagraph (A)--
                            ``(i) may only consider proposals by 
                        applicants that intend to use a portion of the 
                        Federal assistance provided under this 
                        subsection to provide outreach, financial 
                        support, or technical assistance to technology-
                        based small business concerns participating in 
                        or interested in participating in the SBIR 
                        program or STTR program; and
                            ``(ii) shall consider, at a minimum--
                                    ``(I) whether the applicant has 
                                demonstrated that the assistance to be 
                                provided would address unmet needs of 
                                small business concerns in the 
                                community, and whether it is important 
                                to use Federal funding for the proposed 
                                activities;
                                    ``(II) whether the applicant has 
                                demonstrated that a need exists to 
                                increase the number or success of small 
                                high-technology businesses in the State 
                                or an area of the State, as measured by 
                                the number of Phase I and Phase II SBIR 
                                awards that have historically been 
                                received by small business concerns in 
                                the State or area of the State;
                                    ``(III) whether the projected costs 
                                of the proposed activities are 
                                reasonable;
                                    ``(IV) whether the proposal 
                                integrates and coordinates the proposed 
                                activities with other State and local 
                                programs assisting small high-
                                technology firms in the State;
                                    ``(V) the manner in which the 
                                applicant will measure the results of 
                                the activities to be conducted; and
                                    ``(VI) whether the proposal 
                                addresses the needs of small business 
                                concerns--
                                            ``(aa) owned and controlled 
                                        by women;
                                            ``(bb) that are socially 
                                        and economically disadvantaged 
                                        small business concerns (as 
                                        defined in section 8(a)(4)(A));
                                            ``(cc) that are HUBZone 
                                        small business concerns;
                                            ``(dd) located in areas 
                                        that have historically not 
                                        participated in the SBIR and 
                                        STTR programs;
                                            ``(ee) owned and controlled 
                                        by service-disabled veterans;
                                            ``(ff) owned and controlled 
                                        by Native Americans; and
                                            ``(gg) located in 
                                        geographic areas with an 
                                        unemployment rate that exceeds 
                                        the national unemployment rate, 
                                        based on the most recently 
                                        available monthly publications 
                                        of the Bureau of Labor 
                                        Statistics of the Department of 
                                        Labor.
                    ``(C) Proposal limit.--Not more than 1 proposal may 
                be submitted for inclusion in the FAST program under 
                this subsection to provide services in any one State in 
                any 1 fiscal year.
                    ``(D) Process.--Proposals and applications for 
                assistance under this subsection shall be in such form 
                and subject to such procedures as the Administrator 
                shall establish. The Administrator shall promulgate 
                regulations establishing standards for the 
                consideration of proposals under subparagraph (B), 
                including standards regarding each of the 
                considerations identified in subparagraph (B)(ii).
            ``(4) Cooperation and coordination.--In carrying out the 
        FAST program, the Administrator shall cooperate and coordinate 
        with--
                    ``(A) Federal agencies required by this section to 
                have an SBIR program; and
                    ``(B) entities, organizations, and individuals 
                actively engaged in enhancing or developing the 
                technological capabilities of small business concerns, 
                including--
                            ``(i) State and local development agencies 
                        and entities;
                            ``(ii) State committees established under 
                        the Experimental Program to Stimulate 
                        Competitive Research of the National Science 
                        Foundation (as established under section 113 of 
                        the National Science Foundation Authorization 
                        Act of 1988 (42 U.S.C. 1862g));
                            ``(iii) State science and technology 
                        councils; and
                            ``(iv) representatives of technology-based 
                        small business concerns.
            ``(5) Administrative requirements.--
                    ``(A) Competitive basis.--Awards and cooperative 
                agreements under this subsection shall be made or 
                entered into, as applicable, on a competitive basis.
                    ``(B) Matching requirements.--
                            ``(i) In general.--The non-Federal share of 
                        the cost of an activity (other than a planning 
                        activity) carried out using an award or under a 
                        cooperative agreement under this subsection 
                        shall be--
                                    ``(I) except as provided in clause 
                                (iii), 35 cents for each Federal 
                                dollar, in the case of a recipient that 
                                will serve small business concerns 
                                located in 1 of the 18 States receiving 
                                the fewest Phase I SBIR awards;
                                    ``(II) except as provided in clause 
                                (ii) or (iii), 1 dollar for each 
                                Federal dollar, in the case of a 
                                recipient that will serve small 
                                business concerns located in 1 of the 
                                16 States receiving the greatest number 
                                of Phase I SBIR awards; and
                                    ``(III) except as provided in 
                                clause (ii) or (iii), 50 cents for each 
                                Federal dollar, in the case of a 
                                recipient that will serve small 
                                business concerns located in a State 
                                that is not described in subclause (I) 
                                or (II) that is receiving Phase I SBIR 
                                awards.
                            ``(ii) Low-income areas.--The non-Federal 
                        share of the cost of the activity carried out 
                        using an award or under a cooperative agreement 
                        under this subsection shall be 35 cents for 
                        each Federal dollar that will be directly 
                        allocated by a recipient described in clause 
                        (i) to serve small business concerns located in 
                        a qualified census tract, as that term is 
                        defined in section 42(d)(5)(B)(ii)(I) of the 
                        Internal Revenue Code of 1986. Federal dollars 
                        not so allocated by that recipient shall be 
                        subject to the matching requirements of clause 
                        (i).
                            ``(iii) Rural areas.--
                                    ``(I) In general.--Except as 
                                provided in subclause (II), the non-
                                Federal share of the cost of the 
                                activity carried out using an award or 
                                under a cooperative agreement under 
                                this subsection shall be 35 cents for 
                                each Federal dollar that will be 
                                directly allocated by a recipient 
                                described in clause (i) to serve small 
                                business concerns located in a rural 
                                area.
                                    ``(II) Enhanced rural awards.--For 
                                a recipient located in a rural area 
                                that is located in a State described in 
                                clause (i)(I), the non-Federal share of 
                                the cost of the activity carried out 
                                using an award or under a cooperative 
                                agreement under this subsection shall 
                                be 15 cents for each Federal dollar 
                                that will be directly allocated by a 
                                recipient described in clause (i) to 
                                serve small business concerns located 
                                in the rural area.
                                    ``(III) Definition of rural area.--
                                In this clause, the term `rural area' 
                                has the meaning given that term in 
                                section 1393(a)(2) of the Internal 
                                Revenue Code of 1986.
                            ``(iv) Types of funding.--The non-Federal 
                        share of the cost of an activity carried out by 
                        a recipient shall be comprised of not less than 
                        50 percent cash and not more than 50 percent of 
                        indirect costs and in-kind contributions, 
                        except that no such costs or contributions may 
                        be derived from funds from any other Federal 
                        program.
                            ``(v) Rankings.--For the first full fiscal 
                        year after the date of enactment of the SBIR/
                        STTR Reauthorization Act of 2011, and each 
                        fiscal year thereafter, based on the statistics 
                        for the most recent full fiscal year for which 
                        the Administrator has compiled statistics, the 
                        Administrator shall reevaluate the ranking of 
                        each State for purposes of clause (i).
                    ``(C) Duration.--Awards may be made or cooperative 
                agreements entered into under this subsection for 
                multiple years, not to exceed 5 years in total.
            ``(6) Annual reports.--The Administrator shall submit an 
        annual report to the Committee on Small Business of the Senate 
        and the Committee on Science and the Committee on Small 
        Business of the House of Representatives regarding--
                    ``(A) the number and amount of awards provided and 
                cooperative agreements entered into under the FAST 
                program during the preceding year;
                    ``(B) a list of recipients under this subsection, 
                including their location and the activities being 
                performed with the awards made or under the cooperative 
                agreements entered into; and
                    ``(C) the Mentoring Networks and the mentoring 
                database, as provided for under section 34, including--
                            ``(i) the status of the inclusion of 
                        mentoring information in the database required 
                        by subsection (k); and
                            ``(ii) the status of the implementation and 
                        description of the usage of the Mentoring 
                        Networks.
            ``(7) Program levels.--
                    ``(A) In general.--There is authorized to be 
                appropriated to carry out the FAST program, including 
                Mentoring Networks, under this subsection and section 
                34, $15,000,000 for each of fiscal years 2011 through 
                2016.
                    ``(B) Mentoring database.--Of the total amount made 
                available under subparagraph (A) for fiscal years 2011 
                through 2016, a reasonable amount, not to exceed a 
                total of $500,000, may be used by the Administration to 
                carry out section 34(d).
            ``(8) Termination.--The authority to carry out the FAST 
        program under this subsection shall terminate on September 30, 
        2016.''.
    (b) Technical and Conforming Amendments.--The Small Business Act 
(15 U.S.C. 631 et seq.) is amended--
            (1) by striking section 34 (15 U.S.C. 657d);
            (2) by redesignating sections 35 through 43 as sections 34 
        through 42, respectively;
            (3) in section 9(k)(1)(D) (15 U.S.C. 638(k)(1)(D)), by 
        striking ``section 35(d)'' and inserting ``section 34(d)'';
            (4) in section 34 (15 U.S.C. 657e), as so redesignated--
                    (A) in subsection (c)(1), by striking ``section 
                34(c)(1)(E)(ii)'' and inserting ``section 
                9(s)(3)(A)(v)(II)'';
                    (B) by striking ``section 34'' each place it 
                appears and inserting ``section 9(s)''; and
                    (C) by adding at the end the following:
    ``(e) Definitions.--In this section, the following definitions 
apply:
            ``(1) Business advice and counseling.--The term `business 
        advice and counseling' means providing advice and assistance on 
        matters described in subsection (c)(2)(B) to small business 
        concerns to guide them through the SBIR and STTR program 
        process, from application to award and successful completion of 
        each phase of the program.
            ``(2) FAST program.--The term `FAST program' means the 
        Federal and State Technology Partnership Program established 
        under section 9(s).
            ``(3) Mentor.--The term `mentor' means an individual 
        described in subsection (c)(2).
            ``(4) Mentoring network.--The term `Mentoring Network' 
        means an association, organization, coalition, or other entity 
        (including an individual) that meets the requirements of 
        subsection (c).
            ``(5) Recipient.--The term `recipient' means a person that 
        receives an award or becomes party to a cooperative agreement 
        under this section.
            ``(6) SBIR program.--The term `SBIR program' has the same 
        meaning as in section 9(e)(4).
            ``(7) State.--The term `State' means each of the several 
        States, the District of Columbia, the Commonwealth of Puerto 
        Rico, the Virgin Islands, Guam, and American Samoa.
            ``(8) STTR program.--The term `STTR program' has the same 
        meaning as in section 9(e)(6).'';
            (5) in section 36(d) (15 U.S.C. 657i(d)), as so 
        redesignated, by striking ``section 43'' and inserting 
        ``section 42'';
            (6) in section 39(d) (15 U.S.C. 657l(d)), as so 
        redesignated, by striking ``section 43'' and inserting 
        ``section 42''; and
            (7) in section 40(b) (15 U.S.C. 657m(b)), as so 
        redesignated, by striking ``section 43'' and inserting 
        ``section 42''.

<DELETED>SEC. 202. SBIR-STEM WORKFORCE DEVELOPMENT GRANT PILOT 
              PROGRAM.</DELETED>

<DELETED>    (a) Pilot Program Established.--From amounts made 
available to carry out this section, the Administrator shall establish 
a SBIR-STEM Workforce Development Grant Pilot Program to encourage the 
business community to provide workforce development opportunities for 
college students, in the fields of science, technology, engineering, 
and math (in this section referred to as ``STEM college students''), 
particularly those that are socially and economically disadvantaged 
individuals, from rural areas, or from areas with high unemployment, as 
determined by the Administrator, by providing a SBIR bonus 
grant.</DELETED>
<DELETED>    (b) Eligible Entities Defined.--In this section the term 
``eligible entity'' means a grantee receiving a grant under the SBIR 
Program on the date of the bonus grant under subsection (a) that 
provides an internship program for STEM college students.</DELETED>
<DELETED>    (c) Awards.--An eligible entity shall receive a bonus 
grant equal to 10 percent of either a Phase I or Phase II grant, as 
applicable, with a total award maximum of not more than $10,000 per 
year.</DELETED>
<DELETED>    (d) Evaluation.--Following the fourth year of funding 
under this section, the Administrator shall submit to Congress as part 
of the report under section 9(b)(7) of the Small Business Act (15 
U.S.C. 638(b)(7)) the results of the SBIR-STEM Workforce Development 
Grant Pilot Program.</DELETED>
<DELETED>    (e) Authorization of Appropriations.--There are authorized 
to be appropriated to carry out this section--</DELETED>
        <DELETED>    (1) $1,000,000 for fiscal year 2012;</DELETED>
        <DELETED>    (2) $1,000,000 for fiscal year 2013;</DELETED>
        <DELETED>    (3) $1,000,000 for fiscal year 2014;</DELETED>
        <DELETED>    (4) $1,000,000 for fiscal year 2015; and</DELETED>
        <DELETED>    (5) $1,000,000 for fiscal year 2016.</DELETED>

SEC. <DELETED>203</DELETED>202. TECHNICAL ASSISTANCE FOR AWARDEES.

    Section 9(q) of the Small Business Act (15 U.S.C. 638(q)) is 
amended--
            (1) in paragraph (1)--
                    (A) by inserting ``or STTR program'' after ``SBIR 
                program''; and
                    (B) by striking ``SBIR projects'' and inserting 
                ``SBIR or STTR projects'';
            (2) in paragraph (2), by striking ``3 years'' and inserting 
        ``5 years''; and
            (3) in paragraph (3)--
                    (A) in subparagraph (A)--
                            (i) by inserting ``or STTR'' after 
                        ``SBIR''; and
                            (ii) by striking ``$4,000'' and inserting 
                        ``$5,000'';
                    (B) by striking subparagraph (B) and inserting the 
                following:
                    ``(B) Phase ii.--A Federal agency described in 
                paragraph (1) may--
                            ``(i) provide to the recipient of a Phase 
                        II SBIR or STTR award, through a vendor 
                        selected under paragraph (2), the services 
                        described in paragraph (1), in an amount equal 
                        to not more than $5,000 per year; or
                            ``(ii) authorize the recipient of a Phase 
                        II SBIR or STTR award to purchase the services 
                        described in paragraph (1), in an amount equal 
                        to not more than $5,000 per year, which shall 
                        be in addition to the amount of the recipient's 
                        award.''; and
                    (C) by adding at the end the following:
                    ``(C) Flexibility.--In carrying out subparagraphs 
                (A) and (B), each Federal agency shall provide the 
                allowable amounts to a recipient that meets the 
                eligibility requirements under the applicable 
                subparagraph, if the recipient requests to seek 
                technical assistance from an individual or entity other 
                than the vendor selected under paragraph (2) by the 
                Federal agency.
                    ``(D) Limitation.--A Federal agency may not--
                            ``(i) use the amounts authorized under 
                        subparagraph (A) or (B) unless the vendor 
                        selected under paragraph (2) provides the 
                        technical assistance to the recipient; or
                            ``(ii) enter a contract with a vendor under 
                        paragraph (2) under which the amount provided 
                        for technical assistance is based on total 
                        number of Phase I or Phase II awards.''.

SEC. <DELETED>204</DELETED>203. COMMERCIALIZATION READINESS PROGRAM AT 
              DEPARTMENT OF DEFENSE.

    (a) In General.--Section 9(y) of the Small Business Act (15 U.S.C. 
638(y)) is amended--
            (1) in the subsection heading, by striking ``Pilot'' and 
        inserting ``Readiness'';
            (2) by striking ``Pilot'' each place that term appears and 
        inserting ``Readiness'';
            (3) in paragraph (1)--
                    (A) by inserting ``or Small Business Technology 
                Transfer Program'' after ``Small Business Innovation 
                Research Program''; and
                    (B) by adding at the end the following: ``The 
                authority to create and administer a Commercialization 
                Readiness Program under this subsection may not be 
                construed to eliminate or replace any other SBIR 
                program or STTR program that enhances the insertion or 
                transition of SBIR or STTR technologies, including any 
                such program in effect on the date of enactment of the 
                National Defense Authorization Act for Fiscal Year 2006 
                (Public Law 109-163; 119 Stat. 3136).'';
            (4) in paragraph (2), by inserting ``or Small Business 
        Technology Transfer Program'' after ``Small Business Innovation 
        Research Program'';
            (5) by striking paragraphs (5) and (6); and
            (6) by inserting after paragraph (4) the following:
            ``(5) Insertion incentives.--For any contract with a value 
        of not less than $100,000,000, the Secretary of Defense is 
        authorized to--
                    ``(A) establish goals for the transition of Phase 
                III technologies in subcontracting plans; and
                    ``(B) require a prime contractor on such a contract 
                to report the number and dollar amount of contracts 
                entered into by that prime contractor for Phase III 
                SBIR or STTR projects.
            ``(6) Goal for sbir and sttr technology insertion.--The 
        Secretary of Defense shall--
                    ``(A) set a goal to increase the number of Phase II 
                SBIR contracts and the number of Phase II STTR 
                contracts awarded by that Secretary that lead to 
                technology transition into programs of record or 
                fielded systems;
                    ``(B) use incentives in effect on the date of 
                enactment of the SBIR/STTR Reauthorization Act of 2011, 
                or create new incentives, to encourage agency program 
                managers and prime contractors to meet the goal under 
                subparagraph (A); and
                    ``(C) include in the annual report to Congress the 
                percentage of contracts described in subparagraph (A) 
                awarded by that Secretary, and information on the 
                ongoing status of projects funded through the 
                Commercialization Readiness Program and efforts to 
                transition these technologies into programs of record 
                or fielded systems.''.
    (b) Technical and Conforming Amendment.--Section 9(i)(1) of the 
Small Business Act (15 U.S.C. 638(i)(1)) is amended by inserting 
``(including awards under subsection (y))'' after ``the number of 
awards''.

SEC. <DELETED>205</DELETED>204. COMMERCIALIZATION READINESS PILOT 
              PROGRAM FOR CIVILIAN AGENCIES.

    Section 9 of the Small Business Act (15 U.S.C. 638), as amended by 
this Act, is amended by adding at the end the following:
    ``(ff) Pilot Program.--
            ``(1) Authorization.--The head of each covered Federal 
        agency may allocate not more than 10 percent of the funds 
        allocated to the SBIR program and the STTR program of the 
        covered Federal agency--
                    ``(A) for awards for technology development, 
                testing, and evaluation of SBIR and STTR Phase II 
                technologies; or
                    ``(B) to support the progress of research or 
                research and development conducted under the SBIR or 
                STTR programs to Phase III.
            ``(2) Application by federal agency.--
                    ``(A) In general.--A covered Federal agency may not 
                establish a pilot program unless the covered Federal 
                agency makes a written application to the 
                Administrator, not later than 90 days before to the 
                first day of the fiscal year in which the pilot program 
                is to be established, that describes a compelling 
                reason that additional investment in SBIR or STTR 
                technologies is necessary, including unusually high 
                regulatory, systems integration, or other costs 
                relating to development or manufacturing of 
                identifiable, highly promising small business 
                technologies or a class of such technologies expected 
                to substantially advance the mission of the agency.
                    ``(B) Determination.--The Administrator shall--
                            ``(i) make a determination regarding an 
                        application submitted under subparagraph (A) 
                        not later than 30 days before the first day of 
                        the fiscal year for which the application is 
                        submitted;
                            ``(ii) publish the determination in the 
                        Federal Register; and
                            ``(iii) make a copy of the determination 
                        and any related materials available to the 
                        Committee on Small Business and 
                        Entrepreneurship of the Senate and the 
                        Committee on Small Business of the House of 
                        Representatives.
            ``(3) Maximum amount of award.--The head of a covered 
        Federal agency may not make an award under a pilot program in 
        excess of 3 times the dollar amounts generally established for 
        Phase II awards under subsection (j)(2)(D) or (p)(2)(B)(ix).
            ``(4) Registration.--Any applicant that receives an award 
        under a pilot program shall register with the Administrator in 
        a registry that is available to the public.
            ``(5) Report.--The head of each covered Federal agency 
        shall include in the annual report of the covered Federal 
        agency to the Administrator an analysis of the various 
        activities considered for inclusion in the pilot program of the 
        covered Federal agency and a statement of the reasons why each 
        activity considered was included or not included, as the case 
        may be.
            ``(6) Termination.--The authority to establish a pilot 
        program under this section expires at the end of fiscal year 
        2014.
            ``(7) Definitions.--In this subsection--
                    ``(A) the term `covered Federal agency'--
                            ``(i) means a Federal agency participating 
                        in the SBIR program or the STTR program; and
                            ``(ii) does not include the Department of 
                        Defense; and
                    ``(B) the term `pilot program' means the program 
                established under paragraph (1).''.

SEC. <DELETED>206</DELETED>205. ACCELERATING CURES.

    (a) In General.--The Small Business Act (15 U.S.C. 631 et seq.) is 
amended by inserting after section 42, as redesignated by section 201 
of this Act, the following:

``SEC. 43. SMALL BUSINESS INNOVATION RESEARCH PROGRAM.

    ``(a) NIH Cures Pilot.--
            ``(1) Establishment.--An independent advisory board shall 
        be established at the National Academy of Sciences (in this 
        section referred to as the `advisory board') to conduct 
        periodic evaluations of the SBIR program (as that term is 
        defined in section 9) of each of the National Institutes of 
        Health (referred to in this section as the `NIH') institutes 
        and centers for the purpose of improving the management of the 
        SBIR program through data-driven assessment.
            ``(2) Membership.--
                    ``(A) In general.--The advisory board shall consist 
                of--
                            ``(i) the Director of the NIH;
                            ``(ii) the Director of the SBIR program of 
                        the NIH;
                            ``(iii) senior NIH agency managers, 
                        selected by the Director of NIH;
                            ``(iv) industry experts, selected by the 
                        Council of the National Academy of Sciences in 
                        consultation with the Associate Administrator 
                        for Technology of the Administration and the 
                        Director of the Office of Science and 
                        Technology Policy; and
                            ``(v) owners or operators of small business 
                        concerns that have received an award under the 
                        SBIR program of the NIH, selected by the 
                        Associate Administrator for Technology of the 
                        Administration.
                    ``(B) Number of members.--The total number of 
                members selected under clauses (iii), (iv), and (v) of 
                subparagraph (A) shall not exceed 10.
                    ``(C) Equal representation.--The total number of 
                members of the advisory board selected under clauses 
                (i), (ii), (iii), and (iv) of subparagraph (A) shall be 
                equal to the number of members of the advisory board 
                selected under subparagraph (A)(v).
    ``(b) Addressing Data Gaps.--In order to enhance the evidence-base 
guiding SBIR program decisions and changes, the Director of the SBIR 
program of the NIH shall address the gaps and deficiencies in the data 
collection concerns identified in the 2007 report of the National 
Academy of Science entitled `An Assessment of the Small Business 
Innovation Research Program at the NIH'.
    ``(c) Pilot Program.--
            ``(1) In general.--The Director of the SBIR program of the 
        NIH may initiate a pilot program, under a formal mechanism for 
        designing, implementing, and evaluating pilot programs, to spur 
        innovation and to test new strategies that may enhance the 
        development of cures and therapies.
            ``(2) Considerations.--The Director of the SBIR program of 
        the NIH may consider conducting a pilot program to include 
        individuals with successful SBIR program experience in study 
        sections, hiring individuals with small business development 
        experience for staff positions, separating the commercial and 
        scientific review processes, and examining the impact of the 
        trend toward larger awards on the overall program.
    ``(d) Report to Congress.--The Director of the NIH shall submit an 
annual report to Congress and the advisory board on the activities of 
the SBIR program of the NIH under this section.
    ``(e) SBIR Grants and Contracts.--
            ``(1) In general.--In awarding grants and contracts under 
        the SBIR program of the NIH each SBIR program manager shall 
        emphasize applications that identify products, processes, 
        technologies, and services that may enhance the development of 
        cures and therapies.
            ``(2) Examination of commercialization and other metrics.--
        The advisory board shall evaluate the implementation of the 
        requirement under paragraph (1) by examining increased 
        commercialization and other metrics, to be determined and 
        collected by the SBIR program of the NIH.
            ``(3) Phase i and ii.--To the greatest extent practicable, 
        the Director of the SBIR program of the NIH shall reduce the 
        time period between Phase I and Phase II funding of grants and 
        contracts under the SBIR program of the NIH to 90 days.
    ``(f) Limit.--Not more than a total of 1 percent of the extramural 
budget (as defined in section 9 of the Small Business Act (15 U.S.C. 
638)) of the NIH for research or research and development may be used 
for the pilot program under subsection (c) and to carry out subsection 
(e).''.
    (b) Prospective Repeal.--Effective 5 years after the date of 
enactment of this Act, the Small Business Act (15 U.S.C. 631 et seq.) 
is amended--
            (1) by striking section 43, as added by subsection (a); and
            (2) by redesignating sections 44 and 45 as sections 43 and 
        44, respectively.

SEC. <DELETED>207</DELETED>206. FEDERAL AGENCY ENGAGEMENT WITH SBIR AND 
              STTR AWARDEES THAT HAVE BEEN AWARDED MULTIPLE PHASE I 
              AWARDS BUT HAVE NOT BEEN AWARDED PHASE II AWARDS.

    Section 9 of the Small Business Act (15 U.S.C. 638), as amended by 
this Act, is amended by adding at the end the following:
    ``(gg) Requirements Relating to Federal Agency Engagement With 
Certain Phase I SBIR and STTR Awardees.--
            ``(1) Definition.--In this subsection, the term `covered 
        awardee' means a small business concern that--
                    ``(A) has received multiple Phase I awards over 
                multiple years, as determined by the head of a Federal 
                agency, under the SBIR program or the STTR program of 
                the Federal agency; and
                    ``(B) has not received a Phase II award--
                            ``(i) under the SBIR program or STTR 
                        program, as the case may be, of the Federal 
                        agency described in subparagraph (A); or
                            ``(ii) relating to a Phase I award 
                        described in subparagraph (A) under the SBIR 
                        program or the STTR program of another Federal 
                        agency.
            ``(2) Performance measures.--The head of each Federal 
        agency that participates in the SBIR program or the STTR 
        program shall develop performance measures for any covered 
        awardee relating to commercializing research or research and 
        development activities under the SBIR program or the STTR 
        program of the Federal agency.''.

SEC. <DELETED>208</DELETED>207. CLARIFYING THE DEFINITION OF ``PHASE 
              III''.

    (a) Phase III Awards.--Section 9(e) of the Small Business Act (15 
U.S.C. 638(e)) is amended--
            (1) in paragraph (4)(C), in the matter preceding clause 
        (i), by inserting ``for work that derives from, extends, or 
        completes efforts made under prior funding agreements under the 
        SBIR program'' after ``phase'';
            (2) in paragraph (6)(C), in the matter preceding clause 
        (i), by inserting ``for work that derives from, extends, or 
        completes efforts made under prior funding agreements under the 
        STTR program'' after ``phase'';
            (3) in paragraph (8), by striking ``and'' at the end;
            (4) in paragraph (9), by striking the period at the end and 
        inserting a semicolon; and
            (5) by adding at the end the following:
            ``(10) the term `commercialization' means--
                    ``(A) the process of developing products, 
                processes, technologies, or services; and
                    ``(B) the production and delivery of products, 
                processes, technologies, or services for sale (whether 
                by the originating party or by others) to or use by the 
                Federal Government or commercial markets;''.
    (b) Technical and Conforming Amendments.--The Small Business Act 
(15 U.S.C. 631 et seq.) is amended--
            (1) in section 9 (15 U.S.C. 638)--
                    (A) in subsection (e)--
                            (i) in paragraph (4)(C)(ii), by striking 
                        ``scientific review criteria'' and inserting 
                        ``merit-based selection procedures'';
                            (ii) in paragraph (9), by striking ``the 
                        second or the third phase'' and inserting 
                        ``Phase II or Phase III''; and
                            (iii) by adding at the end the following:
            ``(11) the term `Phase I' means--
                    ``(A) with respect to the SBIR program, the first 
                phase described in paragraph (4)(A); and
                    ``(B) with respect to the STTR program, the first 
                phase described in paragraph (6)(A);
            ``(12) the term `Phase II' means--
                    ``(A) with respect to the SBIR program, the second 
                phase described in paragraph (4)(B); and
                    ``(B) with respect to the STTR program, the second 
                phase described in paragraph (6)(B); and
            ``(13) the term `Phase III' means--
                    ``(A) with respect to the SBIR program, the third 
                phase described in paragraph (4)(C); and
                    ``(B) with respect to the STTR program, the third 
                phase described in paragraph (6)(C).'';
                    (B) in subsection (j)--
                            (i) in paragraph (1)(B), by striking 
                        ``phase two'' and inserting ``Phase II'';
                            (ii) in paragraph (2)--
                                    (I) in subparagraph (B)--
                                            (aa) by striking ``the 
                                        third phase'' each place it 
                                        appears and inserting ``Phase 
                                        III''; and
                                            (bb) by striking ``the 
                                        second phase'' and inserting 
                                        ``Phase II'';
                                    (II) in subparagraph (D)--
                                            (aa) by striking ``the 
                                        first phase'' and inserting 
                                        ``Phase I''; and
                                            (bb) by striking ``the 
                                        second phase'' and inserting 
                                        ``Phase II'';
                                    (III) in subparagraph (F), by 
                                striking ``the third phase'' and 
                                inserting ``Phase III'';
                                    (IV) in subparagraph (G)--
                                            (aa) by striking ``the 
                                        first phase'' and inserting 
                                        ``Phase I''; and
                                            (bb) by striking ``the 
                                        second phase'' and inserting 
                                        ``Phase II''; and
                                    (V) in subparagraph (H)--
                                            (aa) by striking ``the 
                                        first phase'' and inserting 
                                        ``Phase I'';
                                            (bb) by striking ``second 
                                        phase'' each place it appears 
                                        and inserting ``Phase II''; and
                                            (cc) by striking ``third 
                                        phase'' and inserting ``Phase 
                                        III''; and
                            (iii) in paragraph (3)--
                                    (I) in subparagraph (A)--
                                            (aa) by striking ``the 
                                        first phase (as described in 
                                        subsection (e)(4)(A))'' and 
                                        inserting ``Phase I'';
                                            (bb) by striking ``the 
                                        second phase (as described in 
                                        subsection (e)(4)(B))'' and 
                                        inserting ``Phase II''; and
                                            (cc) by striking ``the 
                                        third phase (as described in 
                                        subsection (e)(4)(C))'' and 
                                        inserting ``Phase III''; and
                                    (II) in subparagraph (B), by 
                                striking ``second phase'' and inserting 
                                ``Phase II'';
                    (C) in subsection (k)--
                            (i) by striking ``first phase'' each place 
                        it appears and inserting ``Phase I''; and
                            (ii) by striking ``second phase'' each 
                        place it appears and inserting ``Phase II'';
                    (D) in subsection (l)(2)--
                            (i) by striking ``the first phase'' and 
                        inserting ``Phase I''; and
                            (ii) by striking ``the second phase'' and 
                        inserting ``Phase II'';
                    (E) in subsection (o)(13)--
                            (i) in subparagraph (B), by striking 
                        ``second phase'' and inserting ``Phase II''; 
                        and
                            (ii) in subparagraph (C), by striking 
                        ``third phase'' and inserting ``Phase III'';
                    (F) in subsection (p)--
                            (i) in paragraph (2)(B)--
                                    (I) in clause (vi)--
                                            (aa) by striking ``the 
                                        second phase'' and inserting 
                                        ``Phase II''; and
                                            (bb) by striking ``the 
                                        third phase'' and inserting 
                                        ``Phase III''; and
                                    (II) in clause (ix)--
                                            (aa) by striking ``the 
                                        first phase'' and inserting 
                                        ``Phase I''; and
                                            (bb) by striking ``the 
                                        second phase'' and inserting 
                                        ``Phase II''; and
                            (ii) in paragraph (3)--
                                    (I) by striking ``the first phase 
                                (as described in subsection 
                                (e)(6)(A))'' and inserting ``Phase I'';
                                    (II) by striking ``the second phase 
                                (as described in subsection 
                                (e)(6)(B))'' and inserting ``Phase 
                                II''; and
                                    (III) by striking ``the third phase 
                                (as described in subsection 
                                (e)(6)(A))'' and inserting ``Phase 
                                III'';
                    (G) in subsection (q)(3)--
                            (i) in subparagraph (A)--
                                    (I) in the subparagraph heading, by 
                                striking ``First phase'' and inserting 
                                ``Phase i''; and
                                    (II) by striking ``first phase'' 
                                and inserting ``Phase I''; and
                            (ii) in subparagraph (B)--
                                    (I) in the subparagraph heading, by 
                                striking ``Second phase'' and inserting 
                                ``Phase ii''; and
                                    (II) by striking ``second phase'' 
                                and inserting ``Phase II'';
                    (H) in subsection (r)--
                            (i) in the subsection heading, by striking 
                        ``Third Phase'' and inserting ``Phase III'';
                            (ii) in paragraph (1)--
                                    (I) in the first sentence--
                                            (aa) by striking ``for the 
                                        second phase'' and inserting 
                                        ``for Phase II'';
                                            (bb) by striking ``third 
                                        phase'' and inserting ``Phase 
                                        III''; and
                                            (cc) by striking ``second 
                                        phase period'' and inserting 
                                        ``Phase II period''; and
                                    (II) in the second sentence--
                                            (aa) by striking ``second 
                                        phase'' and inserting ``Phase 
                                        II''; and
                                            (bb) by striking ``third 
                                        phase'' and inserting ``Phase 
                                        III''; and
                            (iii) in paragraph (2), by striking ``third 
                        phase'' and inserting ``Phase III''; and
                    (I) in subsection (u)(2)(B), by striking ``the 
                first phase'' and inserting ``Phase I''; and
            (2) in section 34(c)(2)(B)(vii) (15 U.S.C. 
        657e(c)(2)(B)(vii)), as redesignated by section 201 of this 
        Act, by striking ``third phase'' and inserting ``Phase III''.

SEC. <DELETED>209</DELETED>208. SHORTENED PERIOD FOR FINAL DECISIONS ON 
              PROPOSALS AND APPLICATIONS.

    (a) In General.--Section 9 of the Small Business Act (15 U.S.C. 
638) is amended--
            (1) in subsection (g)(4)--
                    (A) by inserting ``(A)'' after ``(4)'';
                    (B) by adding ``and'' after the semicolon at the 
                end; and
                    (C) by adding at the end the following:
            ``(B) make a final decision on each proposal submitted 
        under the SBIR program--
                    ``(i) not later than 90 days after the date on 
                which the solicitation closes; or
                    ``(ii) if the Administrator authorizes an extension 
                for a solicitation, not later than 180 days after the 
                date on which the solicitation closes;''; and
            (2) in subsection (o)(4)--
                    (A) by inserting ``(A)'' after ``(4)'';
                    (B) by adding ``and'' after the semicolon at the 
                end; and
                    (C) by adding at the end the following:
            ``(B) make a final decision on each proposal submitted 
        under the STTR program--
                    ``(i) not later than 90 days after the date on 
                which the solicitation closes; or
                    ``(ii) if the Administrator authorizes an extension 
                for a solicitation, not later than 180 days after the 
                date on which the solicitation closes;''.
    (b) NIH Peer Review Process.--
            (1) In general.--Section 9 of the Small Business Act (15 
        U.S.C. 638), as amended by this Act, is amended by adding at 
        the end the following:
    ``(hh) NIH Peer Review Process.--The Director of the National 
Institutes of Health may make an award under the SBIR program or the 
STTR program of the National Institutes of Health if the application 
for the award has undergone technical and scientific peer review under 
section 492 of the Public Health Service Act (42 U.S.C. 289a).''.
            (2) Technical and conforming amendments.--Section 105 of 
        the National Institutes of Health Reform Act of 2006 (42 U.S.C. 
        284n) is amended--
                    (A) in subsection (a)(3)--
                            (i) by striking ``A grant'' and inserting 
                        ``Except as provided in section 9(hh) of the 
                        Small Business Act (15 U.S.C. 638(hh)), a 
                        grant''; and
                            (ii) by striking ``section 402(k)'' and all 
                        that follows through ``Act)'' and inserting 
                        ``section 402(l) of such Act''; and
                    (B) in subsection (b)(5)--
                            (i) by striking ``A grant'' and inserting 
                        ``Except as provided in section 9(hh) of the 
                        Small Business Act (15 U.S.C. 638(hh)), a 
                        grant''; and
                            (ii) by striking ``section 402(k)'' and all 
                        that follows through ``Act)'' and inserting 
                        ``section 402(l) of such Act''.

                  TITLE III--OVERSIGHT AND EVALUATION

SEC. 301. STREAMLINING ANNUAL EVALUATION REQUIREMENTS.

    Section 9(b) of the Small Business Act (15 U.S.C. 638(b)), as 
amended by section 102 of this Act, is amended--
            (1) in paragraph (7)--
                    (A) by striking ``STTR programs, including the 
                data'' and inserting the following: ``STTR programs, 
                including--
                    ``(A) the data'';
                    (B) by striking ``(g)(10), (o)(9), and (o)(15), the 
                number'' and all that follows through ``under each of 
                the SBIR and STTR programs, and a description'' and 
                inserting the following: ``(g)(8) and (o)(9); and
                    ``(B) the number of proposals received from, and 
                the number and total amount of awards to, HUBZone small 
                business concerns and firms with venture capital 
                investment (including those majority-owned by multiple 
                venture capital operating companies) under each of the 
                SBIR and STTR programs;
                    ``(C) a description of the extent to which each 
                Federal agency is increasing outreach and awards to 
                firms owned and controlled by women and social or 
                economically disadvantaged individuals under each of 
                the SBIR and STTR programs;
                    ``(D) general information about the implementation 
                of, and compliance with the allocation of funds 
                required under, subsection (cc) for firms owned in 
                majority part by venture capital operating companies 
                and participating in the SBIR program;
                    ``(E) a detailed description of appeals of Phase 
                III awards and notices of noncompliance with the SBIR 
                Policy Directive and the STTR Policy Directive filed by 
                the Administrator with Federal agencies; and
                    ``(F) a description''; and
            (2) by inserting after paragraph (7) the following:
            ``(8) to coordinate the implementation of electronic 
        databases at each of the Federal agencies participating in the 
        SBIR program or the STTR program, including the technical 
        ability of the participating agencies to electronically share 
        data;''.

SEC. 302. DATA COLLECTION FROM AGENCIES FOR SBIR.

    Section 9(g) of the Small Business Act (15 U.S.C. 638(g)) is 
amended--
            (1) by striking paragraph (10);
            (2) by redesignating paragraphs (8) and (9) as paragraphs 
        (9) and (10), respectively; and
            (3) by inserting after paragraph (7) the following:
            ``(8) collect annually, and maintain in a common format in 
        accordance with the simplified reporting requirements under 
        subsection (v), such information from awardees as is necessary 
        to assess the SBIR program, including information necessary to 
        maintain the database described in subsection (k), including--
                    ``(A) whether an awardee--
                            ``(i) has venture capital or is majority-
                        owned by multiple venture capital operating 
                        companies, and, if so--
                                    ``(I) the amount of venture capital 
                                that the awardee has received as of the 
                                date of the award; and
                                    ``(II) the amount of additional 
                                capital that the awardee has invested 
                                in the SBIR technology;
                            ``(ii) has an investor that--
                                    ``(I) is an individual who is not a 
                                citizen of the United States or a 
                                lawful permanent resident of the United 
                                States, and if so, the name of any such 
                                individual; or
                                    ``(II) is a person that is not an 
                                individual and is not organized under 
                                the laws of a State or the United 
                                States, and if so the name of any such 
                                person;
                            ``(iii) is owned by a woman or has a woman 
                        as a principal investigator;
                            ``(iv) is owned by a socially or 
                        economically disadvantaged individual or has a 
                        socially or economically disadvantaged 
                        individual as a principal investigator;
                            ``(v) received assistance under the FAST 
                        program under section 34, as in effect on the 
                        day before the date of enactment of the SBIR/
                        STTR Reauthorization Act of 2011, or the 
                        outreach program under subsection (s);
                            ``(vi) is a faculty member or a student of 
                        an institution of higher education, as that 
                        term is defined in section 101 of the Higher 
                        Education Act of 1965 (20 U.S.C. 1001); or
                            ``(vii) is located in a State described in 
                        subsection (u)(3); and
                    ``(B) a justification statement from the agency, if 
                an awardee receives an award in an amount that is more 
                than the award guidelines under this section;''.

SEC. 303. DATA COLLECTION FROM AGENCIES FOR STTR.

    Section 9(o) of the Small Business Act (15 U.S.C. 638(o)) is 
amended by striking paragraph (9) and inserting the following:
            ``(9) collect annually, and maintain in a common format in 
        accordance with the simplified reporting requirements under 
        subsection (v), such information from applicants and awardees 
        as is necessary to assess the STTR program outputs and 
        outcomes, including information necessary to maintain the 
        database described in subsection (k), including--
                    ``(A) whether an applicant or awardee--
                            ``(i) has venture capital or is majority-
                        owned by multiple venture capital operating 
                        companies, and, if so--
                                    ``(I) the amount of venture capital 
                                that the applicant or awardee has 
                                received as of the date of the 
                                application or award, as applicable; 
                                and
                                    ``(II) the amount of additional 
                                capital that the applicant or awardee 
                                has invested in the SBIR technology;
                            ``(ii) has an investor that--
                                    ``(I) is an individual who is not a 
                                citizen of the United States or a 
                                lawful permanent resident of the United 
                                States, and if so, the name of any such 
                                individual; or
                                    ``(II) is a person that is not an 
                                individual and is not organized under 
                                the laws of a State or the United 
                                States, and if so the name of any such 
                                person;
                            ``(iii) is owned by a woman or has a woman 
                        as a principal investigator;
                            ``(iv) is owned by a socially or 
                        economically disadvantaged individual or has a 
                        socially or economically disadvantaged 
                        individual as a principal investigator;
                            ``(v) received assistance under the FAST 
                        program under section 34 or the outreach 
                        program under subsection (s);
                            ``(vi) is a faculty member or a student of 
                        an institution of higher education, as that 
                        term is defined in section 101 of the Higher 
                        Education Act of 1965 (20 U.S.C. 1001); or
                            ``(vii) is located in a State in which the 
                        total value of contracts awarded to small 
                        business concerns under all STTR programs is 
                        less than the total value of contracts awarded 
                        to small business concerns in a majority of 
                        other States, as determined by the 
                        Administrator in biennial fiscal years, 
                        beginning with fiscal year 2008, based on the 
                        most recent statistics compiled by the 
                        Administrator; and
                    ``(B) if an awardee receives an award in an amount 
                that is more than the award guidelines under this 
                section, a statement from the agency that justifies the 
                award amount;''.

SEC. 304. PUBLIC DATABASE.

    Section 9(k)(1) of the Small Business Act (15 U.S.C. 638(k)(1)) is 
amended--
            (1) in subparagraph (D), by striking ``and'' at the end;
            (2) in subparagraph (E), by striking the period at the end 
        and inserting ``; and''; and
            (3) by adding at the end the following:
                    ``(F) for each small business concern that has 
                received a Phase I or Phase II SBIR or STTR award from 
                a Federal agency, whether the small business concern--
                            ``(i) has venture capital and, if so, 
                        whether the small business concern is 
                        registered as majority-owned by multiple 
                        venture capital operating companies as required 
                        under subsection (cc)(4);
                            ``(ii) is owned by a woman or has a woman 
                        as a principal investigator;
                            ``(iii) is owned by a socially or 
                        economically disadvantaged individual or has a 
                        socially or economically disadvantaged 
                        individual as a principal investigator;
                            ``(iv) received assistance under the FAST 
                        program under section 34, as in effect on the 
                        day before the date of enactment of the SBIR/
                        STTR Reauthorization Act of 2011, or the 
                        outreach program under subsection (s); or
                            ``(v) is owned by a faculty member or a 
                        student of an institution of higher education, 
                        as that term is defined in section 101 of the 
                        Higher Education Act of 1965 (20 U.S.C. 
                        1001).''.

SEC. 305. GOVERNMENT DATABASE.

    Section 9(k) of the Small Business Act (15 U.S.C. 638(k)) is 
amended--
            (1) in paragraph (2)--
                    (A) in the matter preceding subparagraph (A), by 
                striking ``Not later'' and all that follows through 
                ``Act of 2000'' and inserting ``Not later than 90 days 
                after the date of enactment of the SBIR/STTR 
                Reauthorization Act of 2011'';
                    (B) by striking subparagraph (C);
                    (C) by redesignating subparagraphs (A) and (B) as 
                subparagraphs (B) and (C), respectively;
                    (D) by inserting before subparagraph (B), as so 
                redesignated, the following:
                    ``(A) contains, for each small business concern 
                that applies for, submits a proposal for, or receives 
                an award under Phase I or Phase II of the SBIR program 
                or the STTR program--
                            ``(i) the name, size, and location, and an 
                        identifying number assigned by the 
                        Administration of the small business concern;
                            ``(ii) an abstract of the project;
                            ``(iii) the specific aims of the project;
                            ``(iv) the number of employees of the small 
                        business concern;
                            ``(v) the names of key individuals that 
                        will carry out the project;
                            ``(vi) the percentage of effort each 
                        individual described in clause (iv) will 
                        contribute to the project;
                            ``(vii) whether the small business concern 
                        is majority-owned by multiple venture capital 
                        operating companies; and
                            ``(viii) the Federal agency to which the 
                        application is made, and contact information 
                        for the person or office within the Federal 
                        agency that is responsible for reviewing 
                        applications and making awards under the SBIR 
                        program or the STTR program;'';
                    (E) by redesignating subparagraphs (D), and (E) as 
                subparagraphs (E) and (F), respectively;
                    (F) by inserting after subparagraph (C), as so 
                redesignated, the following:
                    ``(D) includes, for each awardee--
                            ``(i) the name, size, location, and any 
                        identifying number assigned to the awardee by 
                        the Administrator;
                            ``(ii) whether the awardee has venture 
                        capital, and, if so--
                                    ``(I) the amount of venture capital 
                                as of the date of the award;
                                    ``(II) the percentage of ownership 
                                of the awardee held by a venture 
                                capital operating company, including 
                                whether the awardee is majority-owned 
                                by multiple venture capital operating 
                                companies; and
                                    ``(III) the amount of additional 
                                capital that the awardee has invested 
                                in the SBIR technology, which 
                                information shall be collected on an 
                                annual basis;
                            ``(iii) the names and locations of any 
                        affiliates of the awardee;
                            ``(iv) the number of employees of the 
                        awardee;
                            ``(v) the number of employees of the 
                        affiliates of the awardee; and
                            ``(vi) the names of, and the percentage of 
                        ownership of the awardee held by--
                                    ``(I) any individual who is not a 
                                citizen of the United States or a 
                                lawful permanent resident of the United 
                                States; or
                                    ``(II) any person that is not an 
                                individual and is not organized under 
                                the laws of a State or the United 
                                States;'';
                    (G) in subparagraph (E), as so redesignated, by 
                striking ``and'' at the end;
                    (H) in subparagraph (F), as so redesignated, by 
                striking the period at the end and inserting ``; and''; 
                and
                    (I) by adding at the end the following:
                    ``(G) includes a timely and accurate list of any 
                individual or small business concern that has 
                participated in the SBIR program or STTR program that 
                has committed fraud, waste, or abuse relating to the 
                SBIR program or STTR program.''; and
            (2) in paragraph (3), by adding at the end the following:
                    ``(C) Government database.--Not later than 60 days 
                after the date established by a Federal agency for 
                submitting applications or proposals for a Phase I or 
                Phase II award under the SBIR program or STTR program, 
                the head of the Federal agency shall submit to the 
                Administrator the data required under paragraph (2) 
                with respect to each small business concern that 
                applies or submits a proposal for the Phase I or Phase 
                II award.''.

SEC. 306. ACCURACY IN FUNDING BASE CALCULATIONS.

    (a) In General.--Not later than 1 year after the date of enactment 
of this Act, and every year thereafter until the date that is 5 years 
after the date of enactment of this Act, the Comptroller General of the 
United States shall--
            (1) conduct a fiscal and management audit of the SBIR 
        program and the STTR program for the applicable period to--
                    (A) determine whether Federal agencies comply with 
                the expenditure amount requirements under subsections 
                (f)(1) and (n)(1) of section 9 of the Small Business 
                Act (15 U.S.C. 638), as amended by this Act;
                    (B) assess the extent of compliance with the 
                requirements of section 9(i)(2) of the Small Business 
                Act (15 U.S.C. 638(i)(2)) by Federal agencies 
                participating in the SBIR program or the STTR program 
                and the Administration;
                    (C) assess whether it would be more consistent and 
                effective to base the amount of the allocations under 
                the SBIR program and the STTR program on a percentage 
                of the research and development budget of a Federal 
                agency, rather than the extramural budget of the 
                Federal agency; and
                    (D) determine the portion of the extramural 
                research or research and development budget of a 
                Federal agency that each Federal agency spends for 
                administrative purposes relating to the SBIR program or 
                STTR program, and for what specific purposes, including 
                the portion, if any, of such budget the Federal agency 
                spends for salaries and expenses, travel to visit 
                applicants, outreach events, marketing, and technical 
                assistance; and
            (2) submit a report to the Committee on Small Business and 
        Entrepreneurship of the Senate and the Committee on Small 
        Business of the House of Representatives regarding the audit 
        conducted under paragraph (1), including the assessments 
        required under subparagraphs (B) and (C), and the determination 
        made under subparagraph (D) of paragraph (1).
    (b) Definition of Applicable Period.--In this section, the term 
``applicable period'' means--
            (1) for the first report submitted under this section, the 
        period beginning on October 1, 2005, and ending on September 30 
        of the last full fiscal year before the date of enactment of 
        this Act for which information is available; and
            (2) for the second and each subsequent report submitted 
        under this section, the period--
                    (A) beginning on October 1 of the first fiscal year 
                after the end of the most recent full fiscal year 
                relating to which a report under this section was 
                submitted; and
                    (B) ending on September 30 of the last full fiscal 
                year before the date of the report.

SEC. 307. CONTINUED EVALUATION BY THE NATIONAL ACADEMY OF SCIENCES.

    Section 108 of the Small Business Reauthorization Act of 2000 (15 
U.S.C. 638 note) is amended by adding at the end the following:
    ``(e) Extensions and Enhancements of Authority.--
            ``(1) In general.--Not later than 6 months after the date 
        of enactment of the SBIR/STTR Reauthorization Act of 2011, the 
        head of each agency described in subsection (a), in 
        consultation with the Small Business Administration, shall 
        cooperatively enter into an agreement with the National Academy 
        of Sciences for the National Research Council to, not later 
        than 4 years after the date of enactment of the SBIR/STTR 
        Reauthorization Act of 2011, and every 4 years thereafter--
                    ``(A) continue the most recent study under this 
                section relating to--
                            ``(i) the issues described in subparagraphs 
                        (A), (B), (C), and (E) of subsection (a)(1); 
                        and
                            ``(ii) the effectiveness of the government 
                        and public databases described in section 9(k) 
                        of the Small Business Act (15 U.S.C. 638(k)) in 
                        reducing vulnerabilities of the SBIR program 
                        and the STTR program to fraud, waste, and 
                        abuse, particularly with respect to Federal 
                        agencies funding duplicative proposals and 
                        business concerns falsifying information in 
                        proposals;
                    ``(B) make recommendations with respect to the 
                issues described in subparagraph (A)(ii) and 
                subparagraphs (A), (D), and (E) of subsection 
                (a)(2)<DELETED>.</DELETED>; and
                    ``(C) estimate, to the extent practicable, the 
                number of jobs created by the SBIR program or STTR 
                program of the agency.
            ``(2) Consultation.--An agreement under paragraph (1) shall 
        require the National Research Council to ensure there is 
        participation by and consultation with the small business 
        community, the Administration, and other interested parties as 
        described in subsection (b).
            ``(3) Reporting.--An agreement under paragraph (1) shall 
        require that not later than 4 years after the date of enactment 
        of the SBIR/STTR Reauthorization Act of 2011, and every 4 years 
        thereafter, the National Research Council shall submit to the 
        head of the agency entering into the agreement, the Committee 
        on Small Business and Entrepreneurship of the Senate, and the 
        Committee on Small Business of the House of Representatives a 
        report regarding the study conducted under paragraph (1) and 
        containing the recommendations described in paragraph (1).''.

SEC. 308. TECHNOLOGY INSERTION REPORTING REQUIREMENTS.

    Section 9 of the Small Business Act (15 U.S.C. 638), as amended by 
this Act, is amended by adding at the end the following:
    ``(ii) Phase III Reporting.--The annual SBIR or STTR report to 
Congress by the Administration under subsection (b)(7) shall include, 
for each Phase III award made by the Federal agency--
            ``(1) the name of the agency or component of the agency or 
        the non-Federal source of capital making the Phase III award;
            ``(2) the name of the small business concern or individual 
        receiving the Phase III award; and
            ``(3) the dollar amount of the Phase III award.''.

SEC. 309. INTELLECTUAL PROPERTY PROTECTIONS.

    (a) In General.--The Comptroller General of the United States shall 
conduct a study of the SBIR program to assess whether--
            (1) Federal agencies comply with the data rights 
        protections for SBIR awardees and the technologies of SBIR 
        awardees under section 9 of the Small Business Act (15 U.S.C. 
        638);
            (2) the laws and policy directives intended to clarify the 
        scope of data rights, including in prototypes and mentor-
        protege relationships and agreements with Federal laboratories, 
        are sufficient to protect SBIR awardees; and
            (3) there is an effective grievance tracking process for 
        SBIR awardees who have grievances against a Federal agency 
        regarding data rights and a process for resolving those 
        grievances.
    (b) Report.--Not later than 18 months after the date of enactment 
of this Act, the Comptroller General shall submit to the Committee on 
Small Business and Entrepreneurship of the Senate and the Committee on 
Small Business of the House of Representatives a report regarding the 
study conducted under subsection (a).

SEC. 310. OBTAINING CONSENT FROM SBIR AND STTR APPLICANTS TO RELEASE 
              CONTACT INFORMATION TO ECONOMIC DEVELOPMENT 
              ORGANIZATIONS.

    Section 9 of the Small Business Act (15 U.S.C. 638), as amended by 
this Act, is amended by adding at the end the following:
    ``(jj) Consent To Release Contact Information to Organizations.--
            ``(1) Enabling concern to give consent.--Each Federal 
        agency required by this section to conduct an SBIR program or 
        an STTR program shall enable a small business concern that is 
        an SBIR applicant or an STTR applicant to indicate to the 
        Federal agency whether the Federal agency has the consent of 
        the concern to--
                    ``(A) identify the concern to appropriate local and 
                State-level economic development organizations as an 
                SBIR applicant or an STTR applicant; and
                    ``(B) release the contact information of the 
                concern to such organizations.
            ``(2) Rules.--The Administrator shall establish rules to 
        implement this subsection. The rules shall include a 
        requirement that a Federal agency include in the SBIR and STTR 
        application a provision through which the applicant can 
        indicate consent for purposes of paragraph (1).''.

SEC. 311. PILOT TO ALLOW FUNDING FOR ADMINISTRATIVE, OVERSIGHT, AND 
              CONTRACT PROCESSING COSTS.

    (a) In General.--Section 9 of the Small Business Act (15 U.S.C. 
638), as amended by this Act, is amended by adding at the end the 
following:
    ``(kk) Assistance for Administrative, Oversight, and Contract 
Processing Costs.--
            ``(1) In general.--Subject to paragraph (2), for the 3 full 
        fiscal years beginning after the date of enactment of this 
        subsection, the Administrator shall allow each Federal agency 
        required to conduct an SBIR program to use not more than 3 
        percent of the funds allocated to the SBIR program of the 
        Federal agency for--
                    ``(A) the administration of the SBIR program or the 
                STTR program of the Federal agency;
                    ``(B) the provision of outreach and technical 
                assistance relating to the SBIR program or STTR program 
                of the Federal agency, including technical assistance 
                site visits and personnel interviews;
                    ``(C) the implementation of commercialization and 
                outreach initiatives that were not in effect on the 
                date of enactment of this subsection;
                    ``(D) carrying out the program under subsection 
                (y);
                    ``(E) activities relating to oversight and 
                congressional reporting, including the waste, fraud, 
                and abuse prevention activities described in section 
                313(a)(1)(B)(ii) of the SBIR/STTR Reauthorization Act 
                of 2011;
                    ``(F) targeted reviews of recipients of awards 
                under the SBIR program or STTR program of the Federal 
                agency that the head of the Federal agency determines 
                are at high risk for fraud, waste, or abuse, to ensure 
                compliance with requirements of the SBIR program or 
                STTR program, respectively;
                    ``(G) the implementation of oversight and quality 
                control measures, including verification of reports and 
                invoices and cost reviews;
                    ``(H) carrying out subsection (cc);
                    ``(I) carrying out subsection (ff);
                    ``(J) contract processing costs relating to the 
                SBIR program or STTR program of the Federal agency; and
                    ``(K) funding for additional personnel and 
                assistance with application reviews.
            ``(2) Performance criteria.--A Federal agency may not use 
        funds as authorized under paragraph (1) until after the 
        effective date of performance criteria, which the Administrator 
        shall establish, to measure any benefits of using funds as 
        authorized under paragraph (1) and to assess continuation of 
        the authority under paragraph (1).
            ``(3) Rules.--Not later than 180 days after the date of 
        enactment of this subsection, the Administrator shall issue 
        rules to carry out this subsection.''.
    (b) Technical and Conforming Amendments.--
            (1) In general.--Section 9 of the Small Business Act (15 
        U.S.C. 638) is amended--
                    (A) in subsection (f)(2)(A), as so designated by 
                section 103(2) of this Act, by striking ``shall not'' 
                and all that follows through ``make available for the 
                purpose'' and inserting ``shall not make available for 
                the purpose''; and
                    (B) in subsection (y), as amended by section 
                <DELETED>204</DELETED> 203--
                            (i) by striking paragraph (4);
                            (ii) by redesignating paragraphs (5) and 
                        (6) as paragraphs (4) and (5), respectively.
            (2) Transitional rule.--Notwithstanding the amendments made 
        by paragraph (1), subsection (f)(2)(A) and (y)(4) of section 9 
        of the Small Business Act (15 U.S.C. 638), as in effect on the 
        day before the date of enactment of this Act, shall continue to 
        apply to each Federal agency until the effective date of the 
        performance criteria established by the Administrator under 
        subsection (kk)(2) of section 9 of the Small Business Act, as 
        added by subsection (a).
            (3) Prospective repeal.--Effective on the first day of the 
        fourth full fiscal year following the date of enactment of this 
        Act, section 9 of the Small Business Act (15 U.S.C. 638), as 
        amended by paragraph (1) of this section, is amended--
                    (A) in subsection (f)(2)(A), by striking ``shall 
                not make available for the purpose'' and inserting the 
                following: ``shall not--
                            ``(i) use any of its SBIR budget 
                        established pursuant to paragraph (1) for the 
                        purpose of funding administrative costs of the 
                        program, including costs associated with 
                        salaries and expenses; or
                            ``(ii) make available for the purpose''; 
                        and
                    (B) in subsection (y)--
                            (i) by redesignating paragraphs (4) and (5) 
                        as paragraphs (5) and (6), respectively; and
                            (ii) by inserting after paragraph (3) the 
                        following:
            ``(4) Funding.--
                    ``(A) In general.--The Secretary of Defense and 
                each Secretary of a military department may use not 
                more than an amount equal to 1 percent of the funds 
                available to the Department of Defense or the military 
                department pursuant to the Small Business Innovation 
                Research Program for payment of expenses incurred to 
                administer the Commercialization Pilot Program under 
                this subsection.
                    ``(B) Limitations.--The funds described in 
                subparagraph (A)--
                            ``(i) shall not be subject to the 
                        limitations on the use of funds in subsection 
                        (f)(2); and
                            ``(ii) shall not be used to make Phase III 
                        awards.''.

SEC. 312. GAO STUDY WITH RESPECT TO VENTURE CAPITAL OPERATING COMPANY 
              INVOLVEMENT.

    Not later than 3 years after the date of enactment of this Act, and 
every 3 years thereafter, the Comptroller General of the United States 
shall--
            (1) conduct a study of the impact of requirements relating 
        to venture capital operating company involvement under section 
        9(cc) of the Small Business Act, as added by section 108 of 
        this Act; and
            (2) submit to Congress a report regarding the study 
        conducted under paragraph (1).

SEC. 313. REDUCING VULNERABILITY OF SBIR AND STTR PROGRAMS TO FRAUD, 
              WASTE, AND ABUSE.

    (a) Fraud, Waste, and Abuse Prevention.--
            (1) Guidelines for fraud, waste, and abuse prevention.--
                    (A) Amendments required.--Not later than 90 days 
                after the date of enactment of this Act, the 
                Administrator shall amend the SBIR Policy Directive and 
                the STTR Policy Directive to include measures to 
                prevent fraud, waste, and abuse in the SBIR program and 
                the STTR program.
                    (B) Content of amendments.--The amendments required 
                under subparagraph (A) shall include--
                            (i) definitions or descriptions of fraud, 
                        waste, and abuse;
                            (ii) a requirement that the Inspectors 
                        General of each Federal agency that 
                        participates in the SBIR program or the STTR 
                        program cooperate to--
                                    (I) establish fraud detection 
                                indicators;
                                    (II) review regulations and 
                                operating procedures of the Federal 
                                agencies;
                                    (III) coordinate information 
                                sharing between the Federal agencies; 
                                and
                                    (IV) improve the education and 
                                training of, and outreach to--
                                            (aa) administrators of the 
                                        SBIR program and the STTR 
                                        program of each Federal agency;
                                            (bb) applicants to the SBIR 
                                        program or the STTR program; 
                                        and
                                            (cc) recipients of awards 
                                        under the SBIR program or the 
                                        STTR program;
                            (iii) guidelines for the monitoring and 
                        oversight of applicants to and recipients of 
                        awards under the SBIR program or the STTR 
                        program; and
                            (iv) a requirement that each Federal agency 
                        that participates in the SBIR program or STTR 
                        program include the telephone number of the 
                        hotline established under paragraph (2)--
                                    (I) on the Web site of the Federal 
                                agency; and
                                    (II) in any solicitation or notice 
                                of funding opportunity issued by the 
                                Federal agency for the SBIR program or 
                                the STTR program.
            (2) Fraud, waste, and abuse prevention hotline.--
                    (A) Hotline established.--The Administrator shall 
                establish a telephone hotline that allows individuals 
                to report fraud, waste, and abuse in the SBIR program 
                or STTR program.
                    (B) Publication.--The Administrator shall include 
                the telephone number for the hotline established under 
                subparagraph (A) on the Web site of the Administration.
    (b) Study and Report.--
            (1) Study.--Not later than 1 year after the date of 
        enactment of this Act, and every 3 years thereafter, the 
        Comptroller General of the United States shall--
                    (A) conduct a study that evaluates--
                            (i) the implementation by each Federal 
                        agency that participates in the SBIR program or 
                        the STTR program of the amendments to the SBIR 
                        Policy Directive and the STTR Policy Directive 
                        made pursuant to subsection (a);
                            (ii) the effectiveness of the management 
                        information system of each Federal agency that 
                        participates in the SBIR program or STTR 
                        program in identifying duplicative SBIR and 
                        STTR projects;
                            (iii) the effectiveness of the risk 
                        management strategies of each Federal agency 
                        that participates in the SBIR program or STTR 
                        program in identifying areas of the SBIR 
                        program or the STTR program that are at high 
                        risk for fraud;
                            (iv) technological tools that may be used 
                        to detect patterns of behavior that may 
                        indicate fraud by applicants to the SBIR 
                        program or the STTR program;
                            (v) the success of each Federal agency that 
                        participates in the SBIR program or STTR 
                        program in reducing fraud, waste, and abuse in 
                        the SBIR program or the STTR program of the 
                        Federal agency; and
                            (vi) the extent to which the Inspector 
                        General of each Federal agency that 
                        participates in the SBIR program or STTR 
                        program effectively conducts investigations of 
                        individuals alleged to have submitted false 
                        claims or violated Federal law relating to 
                        fraud, conflicts of interest, bribery, 
                        gratuity, or other misconduct; and
                    (B) submit to the Committee on Small Business and 
                Entrepreneurship of the Senate, the Committee on Small 
                Business of the House of Representatives, and the head 
                of each Federal agency that participates in the SBIR 
                program or STTR program a report on the results of the 
                study conducted under subparagraph (A).

SEC. 314. INTERAGENCY POLICY COMMITTEE.

    (a) Establishment.--The Director of the Office of Science and 
Technology Policy (in this section referred to as the ``Director''), in 
conjunction with the Administrator, shall establish an Interagency 
SBIR/STTR Policy Committee (in this section referred to as the 
``Committee'') comprised of 1 representative from each Federal agency 
with an SBIR program or an STTR program and 1 representative of the 
Office of Management and Budget.
    (b) Cochairpersons.--The Director and the Administrator shall serve 
as cochairpersons of the Committee.
    (c) Duties.--The Committee shall review, and make policy 
recommendations on ways to improve the effectiveness and efficiency of, 
the SBIR program and the STTR program, including--
            (1) reviewing the effectiveness of the public and 
        government databases described in section 9(k) of the Small 
        Business Act (15 U.S.C. 638(k));
            (2) identifying--
                    (A) best practices for commercialization assistance 
                by Federal agencies that have significant potential to 
                be employed by other Federal agencies; and
                    (B) proposals by Federal agencies for initiatives 
                to address challenges for small business concerns in 
                obtaining funding after a Phase II award ends and 
                before commercialization; and
            (3) developing and incorporating a standard evaluation 
        framework to enable systematic assessment of the SBIR program 
        and STTR program, including through improved tracking of awards 
        and outcomes and development of performance measures for the 
        SBIR program and STTR program of each Federal agency.
    (d) Reports.--The Committee shall submit to the Committee on Small 
Business and Entrepreneurship of the Senate and the Committee on 
Science and Technology and the Committee on Small Business of the House 
of Representatives--
            (1) a report on the review by and recommendations of the 
        Committee under subsection (c)(1) not later than 1 year after 
        the date of enactment of this Act;
            (2) a report on the review by and recommendations of the 
        Committee under subsection (c)(2) not later than 18 months 
        after the date of enactment of this Act; and
            (3) a report on the review by and recommendations of the 
        Committee under subsection (c)(3) not later than 2 years after 
        the date of enactment of this Act.

SEC. 315. SIMPLIFIED PAPERWORK REQUIREMENTS.

    Section 9(v) of the Small Business Act (15 U.S.C. 638(v)) is 
amended--
            (1) in the subsection heading, by striking ``Simplified 
        Reporting Requirements'' and inserting ``Reducing Paperwork and 
        Compliance Burden'';
            (2) by striking ``The Administrator'' and inserting the 
        following:
            ``(1) Standardization of reporting requirements.--The 
        Administrator''; and
            (3) by adding at the end the following:
            ``(2) Simplification of application and award process.--Not 
        later than one year after the date of enactment of this 
        paragraph, and after a period of public comment, the 
        Administrator shall issue regulations or guidelines, taking 
        into consideration the unique needs of each Federal agency, to 
        ensure that each Federal agency required to carry out an SBIR 
        program or STTR program simplifies and standardizes the program 
        proposal, selection, contracting, compliance, and audit 
        procedures for the SBIR program or STTR program of the Federal 
        agency (including procedures relating to overhead rates for 
        applicants and documentation requirements) to reduce the 
        paperwork and regulatory compliance burden on small business 
        concerns applying to and participating in the SBIR program or 
        STTR program.''.

                      TITLE IV--POLICY DIRECTIVES

SEC. 401. CONFORMING AMENDMENTS TO THE SBIR AND THE STTR POLICY 
              DIRECTIVES.

    (a) In General.--Not later than 180 days after the date of 
enactment of this Act, the Administrator shall promulgate amendments to 
the SBIR Policy Directive and the STTR Policy Directive to conform such 
directives to this Act and the amendments made by this Act.
    (b) Publishing SBIR Policy Directive and the STTR Policy Directive 
in the Federal Register.--Not later than 180 days after the date of 
enactment of this Act, the Administrator shall publish the amended SBIR 
Policy Directive and the amended STTR Policy Directive in the Federal 
Register.

                       TITLE V--OTHER PROVISIONS

SEC. 501. RESEARCH TOPICS AND PROGRAM DIVERSIFICATION.

    (a) SBIR Program.--Section 9(g) of the Small Business Act (15 
U.S.C. 638(g)) is amended--
            (1) in paragraph (3)--
                    (A) in the matter preceding subparagraph (A), by 
                striking ``broad research topics and to topics that 
                further 1 or more critical technologies'' and inserting 
                ``applications to the Federal agency for support of 
                projects relating to nanotechnology, rare diseases, 
                security, energy, transportation, or improving the 
                security and quality of the water supply of the United 
                States, and the efficiency of water delivery systems 
                and usage patterns in the United States (including the 
                territories of the United States) through the use of 
                technology (to the extent that the projects relate to 
                the mission of the Federal agency), broad research 
                topics, and topics that further 1 or more critical 
                technologies or research priorities'';
                    (B) in subparagraph (A), by striking ``or'' at the 
                end; and
                    (C) by adding at the end the following:
                    ``(C) the National Academy of Sciences, in the 
                final report issued by the `America's Energy Future: 
                Technology Opportunities, Risks, and Tradeoffs' 
                project, and in any subsequent report by the National 
                Academy of Sciences on sustainability, energy, or 
                alternative fuels;
                    ``(D) the National Institutes of Health, in the 
                annual report on the rare diseases research activities 
                of the National Institutes of Health for fiscal year 
                2005, and in any subsequent report by the National 
                Institutes of Health on rare diseases research 
                activities;
                    ``(E) the National Academy of Sciences, in the 
                final report issued by the `Transit Research and 
                Development: Federal Role in the National Program' 
                project and the report entitled `Transportation 
                Research, Development and Technology Strategic Plan 
                (2006-2010)' issued by the Research and Innovative 
                Technology Administration of the Department of 
                Transportation, and in any subsequent report issued by 
                the National Academy of Sciences or the Department of 
                Transportation on transportation and infrastructure; or
                    ``(F) the national nanotechnology strategic plan 
                required under section 2(c)(4) of the 21st Century 
                Nanotechnology Research and Development Act (15 U.S.C. 
                7501(c)(4)) and in any report issued by the National 
                Science and Technology Council Committee on Technology 
                that focuses on areas of nanotechnology identified in 
                such plan;''; and
            (2) by adding after paragraph (12), as added by section 
        111(a) of this Act, the following:
            ``(13) encourage applications under the SBIR program (to 
        the extent that the projects relate to the mission of the 
        Federal agency)--
                    ``(A) from small business concerns in geographic 
                areas underrepresented in the SBIR program or located 
                in rural areas (as defined in section 1393(a)(2) of the 
                Internal Revenue Code of 1986);
                    ``(B) small business concerns owned and controlled 
                by women;
                    ``(C) small business concerns owned and controlled 
                by veterans;
                    ``(D) small business concerns owned and controlled 
                by Native Americans; and
                    ``(E) small business concerns located in a 
                geographic area with an unemployment rates that exceed 
                the national unemployment rate, based on the most 
                recently available monthly publications of the Bureau 
                of Labor Statistics of the Department of Labor.''.
    (b) STTR Program.--Section 9(o) of the Small Business Act (15 
U.S.C. 638(o)), as amended by section 111(b) of this Act, is amended--
            (1) in paragraph (3)--
                    (A) in the matter preceding subparagraph (A), by 
                striking ``broad research topics and to topics that 
                further 1 or more critical technologies'' and inserting 
                ``applications to the Federal agency for support of 
                projects relating to nanotechnology, security, energy, 
                rare diseases, transportation, or improving the 
                security and quality of the water supply of the United 
                States (to the extent that the projects relate to the 
                mission of the Federal agency), broad research topics, 
                and topics that further 1 or more critical technologies 
                or research priorities'';
                    (B) in subparagraph (A), by striking ``or'' at the 
                end; and
                    (C) by adding at the end the following:
                    ``(C) the National Academy of Sciences, in the 
                final report issued by the `America's Energy Future: 
                Technology Opportunities, Risks, and Tradeoffs' 
                project, and in any subsequent report by the National 
                Academy of Sciences on sustainability, energy, or 
                alternative fuels;
                    ``(D) the National Institutes of Health, in the 
                annual report on the rare diseases research activities 
                of the National Institutes of Health for fiscal year 
                2005, and in any subsequent report by the National 
                Institutes of Health on rare diseases research 
                activities;
                    ``(E) the National Academy of Sciences, in the 
                final report issued by the `Transit Research and 
                Development: Federal Role in the National Program' 
                project and the report entitled `Transportation 
                Research, Development and Technology Strategic Plan 
                (2006-2010)' issued by the Research and Innovative 
                Technology Administration of the Department of 
                Transportation, and in any subsequent report issued by 
                the National Academy of Sciences or the Department of 
                Transportation on transportation and infrastructure; or
                    ``(F) the national nanotechnology strategic plan 
                required under section 2(c)(4) of the 21st Century 
                Nanotechnology Research and Development Act (15 U.S.C. 
                7501(c)(4)) and in any report issued by the National 
                Science and Technology Council Committee on Technology 
                that focuses on areas of nanotechnology identified in 
                such plan;'';
            (2) in paragraph (15), by striking ``and'' at the end;
            (3) in paragraph (16), by striking the period at the end 
        and inserting ``; and''; and
            (4) by adding at the end the following:
            ``(17) encourage applications under the STTR program (to 
        the extent that the projects relate to the mission of the 
        Federal agency)--
                    ``(A) from small business concerns in geographic 
                areas underrepresented in the STTR program or located 
                in rural areas (as defined in section 1393(a)(2) of the 
                Internal Revenue Code of 1986);
                    ``(B) small business concerns owned and controlled 
                by women;
                    ``(C) small business concerns owned and controlled 
                by veterans;
                    ``(D) small business concerns owned and controlled 
                by Native Americans; and
                    ``(E) small business concerns located in a 
                geographic area with an unemployment rates that exceed 
                the national unemployment rate, based on the most 
                recently available monthly publications of the Bureau 
                of Labor Statistics of the Department of Labor.''.
    (c) Research and Development Focus.--Section 9(x) of the Small 
Business Act (15 U.S.C. 638(x)) is amended--
            (1) by striking paragraph (2); and
            (2) by redesignating paragraph (3) as paragraph (2).

SEC. 502. REPORT ON SBIR AND STTR PROGRAM GOALS.

    Section 9 of the Small Business Act (15 U.S.C. 638), as amended by 
this Act, is amended by adding at the end the following:
    ``(ll) Annual Report on SBIR and STTR Program Goals.--
            ``(1) Development of metrics.--The head of each Federal 
        agency required to participate in the SBIR program or the STTR 
        program shall develop metrics to evaluate the effectiveness, 
        and the benefit to the people of the United States, of the SBIR 
        program and the STTR program of the Federal agency that--
                    ``(A) are science-based and statistically driven;
                    ``(B) reflect the mission of the Federal agency; 
                and
                    ``(C) include factors relating to the economic 
                impact of the programs.
            ``(2) Evaluation.--The head of each Federal agency 
        described in paragraph (1) shall conduct an annual evaluation 
        using the metrics developed under paragraph (1) of--
                    ``(A) the SBIR program and the STTR program of the 
                Federal agency; and
                    ``(B) the benefits to the people of the United 
                States of the SBIR program and the STTR program of the 
                Federal agency.
            ``(3) Report.--
                    ``(A) In general.--The head of each Federal agency 
                described in paragraph (1) shall submit to the 
                appropriate committees of Congress and the 
                Administrator an annual report describing in detail the 
                results of an evaluation conducted under paragraph (2).
                    ``(B) Public availability of report.--The head of 
                each Federal agency described in paragraph (1) shall 
                make each report submitted under subparagraph (A) 
                available to the public online.
                    ``(C) Definition.--In this paragraph, the term 
                `appropriate committees of Congress' means--
                            ``(i) the Committee on Small Business and 
                        Entrepreneurship of the Senate; and
                            ``(ii) the Committee on Small Business and 
                        the Committee on Science and Technology of the 
                        House of Representatives.''.

SEC. 503. COMPETITIVE SELECTION PROCEDURES FOR SBIR AND STTR PROGRAMS.

    Section 9 of the Small Business Act (15 U.S.C. 638), as amended by 
this Act, is amended by adding at the end the following:
    ``(mm) Competitive Selection Procedures for SBIR and STTR 
Programs.--All funds awarded, appropriated, or otherwise made available 
in accordance with subsection (f) or (n) must be awarded pursuant to 
competitive and merit-based selection procedures.''.
                                                        Calendar No. 17

112th CONGRESS

  1st Session

                                 S. 493

_______________________________________________________________________

                                 A BILL

 To reauthorize and improve the SBIR and STTR programs, and for other 
                               purposes.

_______________________________________________________________________

                             March, 9, 2011

                        Reported with amendments