117 HR 4033 IH: Small Business Innovation Research and Small Business Technology Transfer Improvements Act of 2021.
U.S. House of Representatives
2021-06-22
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I
117th CONGRESS
1st Session
H. R. 4033
IN THE HOUSE OF REPRESENTATIVES
June 22, 2021
Mr. Baird (for himself and Ms. Stevens) introduced the following bill; which was referred to the Committee on Small Business, and in addition to the Committee on Science, Space, and Technology, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned
A BILL
To amend the Small Business Act to improve the Small Business Innovation Research program and Small Business Technology Transfer program, and for other purposes.
1.

Short title; table of contents
(a)

Short title
This Act may be cited as the “Small Business Innovation Research and Small Business Technology Transfer Improvements Act of 2021.”
(b)

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

Requiring insertion incentives
Section 9(y)(5) of the Small Business Act (15 U.S.C. 638(y)(5)) is amended by striking “is authorized to” and inserting “shall”.
3.

Additional SBIR and STTR technology insertion reporting requirement
Section 9(y)(6) of the Small Business Act (15 U.S.C. 638(y)(6)) is amended—
(1)
in subparagraph (B), by striking “and” at the end;
(2)
in subparagraph (C)(iii), by striking the period at the end and inserting “; and”; and
(3)
by adding at the end the following new subparagraph:
“(D)
not later than 120 days after the date of the enactment of this subparagraph, and not later than December 31 of each year thereafter, submit to the Committee on Science, Space, and Technology and the Committee on Small Business of the House of Representatives, and to the Committee on Small Business and Entrepreneurship of the Senate, a report describing the goals set under subparagraph (A) and the incentives used or created under subparagraph (B).”.
4.

Encouraging innovation in United States manufacturing
Section 9 of the Small Business Act (15 U.S.C. 638) is amended by adding at the end the following new subsection:
“(vv)

Encouraging innovation in united states manufacturing
In carrying out this section, the Administrator shall—
(1)
ensure that, in selecting small business concerns to participate in SBIR or STTR programs under this section, Federal agencies give high priority to small manufacturing companies and other small business concerns engaged in or planning to engage in manufacturing research and development for the purpose of developing and producing new products and technologies in the United States; and
(2)
include in the annual report to Congress under subsection (b)(7) a determination of whether the priority described in paragraph (1) is being carried out.”.
5.

Encouraging innovation in cybersecurity
Section 9 of the Small Business Act (15 U.S.C. 638), as amended by section 4, is further amended by adding at the end the following new subsection:
“(ww)

Encouraging innovation in cybersecurity
In carrying out this section, the Administrator shall—
(1)
ensure that, in selecting small business concerns to participate in SBIR or STTR programs under this section, Federal agencies engaged in cybersecurity research give high priority to small business concerns that are engaged in cybersecurity research and development, for the purpose of developing and implementing technology services and products to strengthen the security of United States Government and private computer systems, including software, hardware, and portable devices; and
(2)
include in the annual report to Congress under subsection (b)(7) a determination of whether the priority described in paragraph (1) is being carried out.”.
6.

Compliance of Phase III awards with competitive procedures
Section 9(r)(4) of the Small Business Act (15 U.S.C. 638(r)(4)) is amended by inserting as “direct follow-on awards issued without further competition” after “developed the technology”.
7.

Increased outreach requirements
(a)

In general
(1)

SBIR Amendment
Section 9(j) of the Small Business Act (15 U.S.C. 638(j)), as amended by section 8, is further amended by adding at the end the following new paragraph:
“(5)

Increased outreach requirements
Upon the enactment of this paragraph, the Administrator shall modify the policy directives issued pursuant to this subsection to require outreach efforts to increase the participation in technological innovation under the SBIR programs among individuals conducting research at minority institutions (as defined in section 365(3) of the Higher Education Act of 1965) and Hispanic-serving institutions (as defined in section 502(a)(5) of such Act).”.
(2)

STTR Amendment
Section 9(p)(2) of the Small Business Act (15 U.S.C. 638(p)(2)), as amended by section 8, is further amended by adding at the end the following new subparagraph:
“(H)
procedures for outreach efforts to increase the participation in technological innovation under the SBIR programs among individuals conducting research at minority institutions (as defined in section 365(3) of the Higher Education Act of 1965) and Hispanic-serving institutions (as defined in section 502(a)(5) of such Act).”.
(b)

Funding for outreach
Section 9(mm)(1) of the Small Business Act (15 U.S.C. 638(mm)(1)) is amended—
(1)
in subparagraph (J), by striking the “and” at the end;
(2)
in subparagraph (K), by striking the period at the end and inserting a semicolon; and
(3)
by adding at the end the following new subparagraph:
“(L)
the outreach efforts described under subsections (j)(4) and (p)(2)(G); and”.
8.

Annual meeting
(a)

In general
Section 9 of the Small Business Act (15 U.S.C. 638), as amended by section 5, is further amended by adding at the end the following new subsection:
“(xx)

Annual meeting
(1)

In general
The head of each Federal agency required to have a program under this section (or a designee) and the Administrator (or a designee) shall meet annually to discuss methods—
(A)
to improve the collection of data under this section;
(B)
to improve the reporting of data to the Administrator under this section;
(C)
to make the application processes for programs under this section more efficient; and
(D)
to increase participation in the programs established under this section.
(2)

Report
Not later than 60 days after the date on which an annual meeting required under paragraph (1) is held, the Administrator shall submit to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business and the Committee on Science, Space, and Technology of the House of Representatives, a report on the findings of such meeting and recommendations on how to implement changes to programs under this section.”.
(b)

Funding for annual meeting
Section 9(mm)(1) of the Small Business Act (15 U.S.C. 638(mm)(1)) as amended by section 9, is further amended by adding at the end the following new subparagraph:
“(M)
the annual meeting required under subsection (xx).”.
9.

Establishing the Civilian Agency Commercialization Readiness Program
Section 9(gg) of the Small Business Act (15 U.S.C. 638(gg)) is amended—
(1)
by amending the subsection heading to read as follows: “Civilian agency commercialization readiness program”;
(2)
in paragraph (1), by inserting “to establish a Civilian Agency Commercialization Readiness Program for civilian agencies” after “the covered Federal agency”;
(3)
in paragraph (2)(A)—
(A)
by striking “establish a pilot program” and inserting “establish a Civilian Agency Commercialization Readiness Program under this subsection”; and
(B)
by striking “the pilot program” and inserting “such Civilian Agency Commercialization Readiness Program”;
(4)
in paragraphs (3) and (4), by striking “a pilot program” each place such term appears and inserting “a Civilian Agency Commercialization Readiness Program”;
(5)
in paragraph (6), by striking “the pilot program” and inserting “a Civilian Agency Commercialization Readiness Program”;
(6)
by striking paragraph (7) and redesignating paragraph (8) as paragraph (7); and
(7)
in paragraph (7) (as so redesignated), by amending subparagraph (B) to read as follows:
“(B)
the term Civilian Agency Commercialization Readiness Program means each program established under paragraph (1).”.
10.

Phase 0 Proof of Concept Partnership program
Section 9(jj) of the Small Business Act (15 U.S.C. 638(jj) is amended—
(1)
in the subsection heading, strike “pilot”;
(2)
in paragraph (1)—
(A)
by striking “The Director of the National Institutes of Health” and inserting “Each covered agency head”;
(B)
by striking “pilot”; and
(C)
by striking “the Director” and inserting “each covered agency head”;
(3)
in paragraph (2)—
(A)
in subparagraph (C), by striking “in the National Institutes of Health’s STTR program” and inserting “in the STTR program of any agency described in section (n)”; and
(B)
by adding at the end the following:
“(D)
the term covered agency head means the Director of the National Institutes of Health, the Director of the National Science Foundation, the Administrator of the National Aeronautics and Space Administration and the Secretary of Energy;
(E)
the term Phase 0 program refers to the Proof of Concept Partnerships program; and
(F)
the terms qualifying institution and institution means a university or other research institution that participates in the STTR program of the National Institutes of Health, National Science Foundation, National Aeronautics and Atmospheric Administration, Department of Energy, or Department of Defense.”;
(4)
in paragraph (3) by adding “entrepreneurial training” after “market research”;
(5)
in paragraph (4)—
(A)
in subparagraph (A), by striking “The Director” and inserting “Each covered agency head”; and
(B)
in subparagraph (B), by striking “In determining” and all that follows through “qualifying institutions—” and inserting the following: “In determining which qualifying institutions receive Phase 0 Program grants, each covered agency head shall consider, in addition to any other criteria such covered agency head determines necessary, the extent to which the qualifying institutions—”;
(6)
in paragraph (6), in the matter preceding (A), by striking “The Director” and inserting “Each covered agency head” and by striking “pilot program” and inserting “Phase 0 program”; and
(7)
by striking paragraph (7).
11.

Reporting requirements
(a)

Annual report to congress
Section 9(b)(7) of the Small Business Act (15 U.S.C. 638(b)(7)) is amended by striking “to report not less than annually” and inserting “to submit a report not later than December 31 of each year”.
(b)

Annual report to SBA and the office of science and technology policy
Section 9(g)(9) of the Small Business Act (15 U.S.C. 638(g)(9)) is amended—
(1)
by striking “make an annual report” and inserting “not later than March 30 of each year, submit a report”; and
(2)
by striking “and the Office of Science and Technology Policy” and inserting “, the Office of Science and Technology Policy, the Committee on Science, Space, and Technology and the Committee on Small Business of the House of Representatives, and the Committee on Small Business and Entrepreneurship of the Senate”.
12.

SBIR phase flexibility
Section 9(cc) of the Small Business Act (15 U.S.C. 638(cc)) is amended by striking “During fiscal years” and all that follows through “may each provide” and inserting “During fiscal years 2022 through 2026 all agencies participating in the SBIR program may provide”.
13.

Amendments to administrative fee assistance
Section 9(mm) of the Small Business Act (15 U.S.C. 638(mm)) is amended—
(1)
in paragraph (1), by striking “and until September 30, 2022”; and
(2)
in paragraph (2), after “(j)(2)(F)” add “and (j)(5)” as required under this Act.
14.

Amendments to technical and business assistance
Section 9(q) of the Small Business Act (15 U.S.C. 638(q)) is amended—
(1)
in the header, by striking “technical and business assistance” and inserting “application, technical, and business assistance”;
(2)
in paragraph (2), by adding at the end the following:
“(C)

Guidance
The Administrator shall establish guidelines and metrics for the selection of vendors for the purposes of this subsection, which shall include at a minimum guidance on selecting vendors with demonstrated experience and success in—
(i)
working with small business concerns focused on research and development of advanced and emerging technologies;
(ii)
federal acquisition and procurement processes and regulations; and
(iii)
commercializing federally funded research and development.”; and
(3)
in paragraph (3)—
(A)
in subparagraph (C), by adding “subject to the guidance provided by the Administrator under paragraph (2)(C)” after “commercializing technology”;
(B)
in subparagraph (D)—
(i)
in clause (i), by striking “; or” and inserting a semicolon;
(ii)
in clause (ii), by striking the period at the end and inserting “; or”; and
(iii)
by adding at the end the following:
“(iii)
use the amounts authorized under subparagraph (A) or (B) to increase the amount of an award for carrying out additional research or development.”;
(C)
by inserting after paragraph (3) the following new paragraph:
“(4)

Application assistance
(A)

In general
Each Federal agency required by this section to conduct an SBIR program or STTR program may establish an Application Assistance Program to provide small business concerns applying to SBIR or STTR with application assistance.
(B)

Purpose
The purpose of this program is to assist small businesses to better understand the technical aspects of the application process and to develop a more competitive application.
(C)

Requirements
Each agency under subparagraph (A) may provide the assistance under this paragraph or enter into an agreement with 1 or more vendors selected under subparagraph (G).
(D)

Eligibility
To be eligible for assistance under this program a small business concern must—
(i)
be a first-time applicant for an SBIR or STTR award from that agency and have not been a previous recipient of an SBIR or STTR award from any other agency; and
(ii)
be selected to proceed in the application process after the short-form application requirements under section 9(g)(2) have been completed.
(E)

Broadening participation
The Administrator shall encourage businesses described under section (j)(2)(F) to apply for assistance under the program established in this paragraph.
(F)

Activities
The program shall provide Phase 1 proposal preparation, review, and registration assistance to small business concerns selected to proceed in the application process after the short-form application requirements under section 9(g)(2) have been completed.
(G)

Vendor selection
If the agency selects 1 or more vendors to provide the assistance under this program, it shall be a competitive, merit-based process for a term not to exceed 5 years and the vendor shall have demonstrated expertise in writing successful Federally funded technology development proposals.
(H)

Payment for services
There shall be no fee assessed to small business concerns receiving services under this program.
(I)

Funding
Each Federal agency that establishes an Application Assistance program may use funds allocated under section 9(mm).”; and
(D)
by redesignating paragraph (4) as paragraph (5).
15.

Extension of commercialization extension pilot
Section 9(uu)(3) of the Small Business Act (15 U.S.C. 638(uu)) is amended by striking “2022” and inserting “2026”.
16.

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