[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 10407 Introduced in House (IH)]
<DOC>
118th CONGRESS
2d Session
H. R. 10407
To amend the Small Business Act to reauthorize and modify the Small
Business Innovation Research and Small Business Technology Transfer
Research programs, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
December 12, 2024
Ms. Velazquez introduced the following bill; which was referred to the
Committee on Small Business, and in addition to the Committees on
Science, Space, and Technology, and Armed Services, 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 reauthorize and modify the Small
Business Innovation Research and Small Business Technology Transfer
Research 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
2024''.
SEC. 2. TABLE OF CONTENTS.
The table of contents for this Act is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.
TITLE I--REAUTHORIZATION OF PROGRAMS
Sec. 101. Sense of Congress.
Sec. 102. Extension of SBIR and STTR authority.
Sec. 103. Extension of FAST Program.
TITLE II--DIVERSIFICATION INITIATIVES
Sec. 201. SBIR and STTR fellowships.
Sec. 202. Application assistance to broaden participation.
Sec. 203. Technical and business assistance improvements.
Sec. 204. Improvements to website relating to the SBIR program or STTR
program.
TITLE III--COMMERCIALIZATION IMPROVEMENTS
Sec. 301. Phase III award education.
Sec. 302. Report on DoD denials of Phase III.
TITLE IV--PILOT PROGRAMS
Sec. 401. Extend and modify assistance for administrative, oversight,
and contract processing costs.
Sec. 402. Extend and expand the direct to Phase II authority.
Sec. 403. Acceleration of DoD SBIR and STTR awards.
Sec. 404. Extend commercialization readiness program for civilian
agencies.
Sec. 405. Extend and expand Phase 0 proof of concept partnership
program.
Sec. 406. Extend commercialization assistance programs.
TITLE V--OVERSIGHT AND SIMPLIFICATION INITIATIVES
Sec. 501. Annual reports to Congress.
Sec. 502. Comptroller General reports on fraud controls.
Sec. 503. Comptroller General report on diversification and
commercialization.
Sec. 504. Extend the report on award timeliness.
Sec. 505. Pilot program to accelerate National Institutes of Health
evaluation process.
Sec. 506. Codifying safeguards for small business concerns majority-
owned by venture capital operating
companies, hedge funds, or private equity
firms.
TITLE VI--TECHNICAL CHANGES
Sec. 601. Inclusion of SBICs in the SBIR and STTR programs.
Sec. 602. Phase III and sole-source awards.
TITLE I--REAUTHORIZATION OF PROGRAMS
SEC. 101. SENSE OF CONGRESS.
Section 9(a) of the Small Business Act (15 U.S.C. 638(a)) is
amended--
(1) by inserting ``(1)'' before ``Research and
development''; and
(2) by adding at the end the following new paragraphs:
``(2) It is the sense of the Congress that--
``(A) the purpose of the SBIR and STTR programs is to
strengthen the role of innovative small business concerns in
Federally funded research and development, including--
``(i) stimulating technological innovation;
``(ii) using small business concerns to meet the
needs of Federal research and development;
``(iii) fostering and encouraging participation of
and by socially and economically disadvantaged small
business concerns (as defined in section 8(a)(4)(A))
and small business concerns owned and controlled by
women in technological innovation; and
``(iv) increasing private sector commercialization
of innovations derived from Federal research and
development, thereby increasing competition,
productivity, and economic growth; and
``(B) in addition to the purposes set forth in subparagraph
(A), the purpose of the STTR program is to reserve a portion of
the extramural research or research and development budgets of
Federal agencies to provide awards to small business concerns
for cooperative research and development with research
institutions.''.
SEC. 102. EXTENSION OF SBIR AND STTR AUTHORITY.
(a) SBIR.--Section 9 of the Small Business Act (15 U.S.C. 638) is
amended by striking subsection (m).
(b) STTR.--Section 9(n)(1)(A) of the Small Business Act (15 U.S.C.
638(n)(1)(A)) is amended by striking ``through fiscal year 2025''.
SEC. 103. EXTENSION OF FAST PROGRAM.
Section 34(i) of the Small Business Act (15 U.S.C. 657d(i)) is
amended by striking ``September 30, 2005'' and inserting ``September
30, 2030''.
TITLE II--DIVERSIFICATION INITIATIVES
SEC. 201. SBIR AND STTR FELLOWSHIPS.
Section 9 of the Small Business Act (15 U.S.C. 638) is amended--
(1) in subsection (f), by adding at the end the following
new paragraph:
``(5) Fellowships.--
``(A) In general.--A Federal agency may provide
grants or awards, either directly or in partnership
with a third party, to small business concerns that
have received SBIR or STTR Phase II awards to provide
fellowship and internship opportunities at the
undergraduate, baccalaureate, graduate, and
postdoctoral levels in fields that are important to
such Federal agency.
``(B) Enhanced outreach.--Each Federal agency that
makes an award or enters into a partnership under
subparagraph (A) shall provide for enhanced outreach to
increase the participation of women, socially
disadvantaged individuals (as described in section
8(a)(5)), and economically disadvantaged individuals
(as described section 8(a)(6)(A)) in the fellowship and
internship opportunities described under subparagraph
(A).
``(C) Support organization.--Each Federal agency
that makes an award or enters into a partnership under
subparagraph (A) may partner with or provide grants or
awards to a third-party organization to support and
facilitate the enhanced outreach under subparagraph (B)
provided that such third-party organization is a
nonprofit organization with relevant experience and
demonstrated expertise in delivery of services
described in subparagraph (B).
``(D) Funding.--In carrying out this paragraph, a
Federal agency may use only the following amounts:
``(i) With respect to a Federal agency that
uses the authority under subsection (mm), the
funds authorized under such subsection.
``(ii) With respect a Federal agency other
than a Federal agency described in clause (i),
not more than three percent of the funds
required to be expended under paragraph (1).'';
and
(2) in subsection (n), by adding at the end the following
new paragraph:
``(4) Fellowships.--
``(A) In general.--A Federal agency may provide
grants or awards, either directly or in partnership
with a third party, to small business concerns that
have received SBIR or STTR Phase II awards to provide
fellowship and internship opportunities at the
undergraduate, baccalaureate, graduate, and
postdoctoral levels in fields that are important to
such Federal agency.
``(B) Enhanced outreach.--Each Federal agency that
makes an award or enters into a partnership under
subparagraph (A) shall provide for enhanced outreach to
increase the participation of women, socially
disadvantaged individuals (as described in section
8(a)(5)), and economically disadvantaged individuals
(as described section 8(a)(6)(A)) in the fellowship and
internship opportunities described under subparagraph
(A).
``(C) Support organization.--Each Federal agency
that makes an award or enters into a partnership under
subparagraph (A) may partner with or provide grants or
awards to a third-party organization to support and
facilitate the enhanced outreach under subparagraph (B)
provided such third-party organization is a nonprofit
organization with relevant experience and demonstrated
expertise in delivery of services described in
subparagraph (B).
``(D) Funding.--In carrying out this paragraph, a
Federal agency may use only the following amounts:
``(i) With respect to a Federal agency that
uses the authority under subsection (mm), the
funds authorized under such subsection.
``(ii) With respect a Federal agency other
than a Federal agency described in clause (i),
not more than three percent of the funds
required to be expended under paragraph (1).''.
SEC. 202. APPLICATION ASSISTANCE TO BROADEN PARTICIPATION.
(a) In General.--Section 9(mm)(1) of the Small Business Act (15
U.S.C. 638(mm)(1)) is amended--
(1) in subparagraph (J), by striking ``and'' at the end;
(2) in subparagraph (K), by striking the period at the end
and inserting ``; and''; and
(3) by adding at the end the following new subparagraph:
``(L) providing small business concerns with
assistance applying to the SBIR program or STTR program
of the Federal agency, including providing such
assistance to carry out the policy directive required
under paragraphs (2)(F) or (5) of subsection (j) and
subsection (p)(2)(H) to increase the participation of
States with respect to which a low level of SBIR or
STTR awards have historically been awarded.''.
(b) Enhanced Minority Institution Participation.--
(1) SBIR.--Section 9(j) of the Small Business Act (15
U.S.C. 638(j)), is amended by adding at the end the following
new paragraph:
``(5) Increased outreach requirements.--Not later than 90
days after the date of the enactment of this paragraph, the
Administration shall modify the policy directives issued
pursuant to this subsection to require enhanced outreach
efforts to increase the participation of individuals conducting
research at minority institutions (as defined in section 365 of
the Higher Education Act of 1965 (20 U.S.C. 1067k)) and
Hispanic-serving institutions (as defined in section 502(a) of
such Act (20 U.S.C. 1101a(a))) in SBIR programs.''.
(2) STTR.--Section 9(p)(2) of the Small Business Act (15
U.S.C. 638(p)(2)) is amended--
(A) in subparagraph (F), by striking ``and'' at the
end;
(B) in subparagraph (G)(iii), by striking the
period at the end and inserting ``; and''; and
(C) by adding at the end the following new
subparagraph:
``(H) procedures for outreach efforts to increase
the participation of individuals conducting research at
minority institutions (as defined in section 365 of the
Higher Education Act of 1965 (20 U.S.C. 1067k)) and
Hispanic-serving institutions (as defined in section 16
502(a) of such Act (20 U.S.C. 1101a(a))) in STTR
programs.''.
SEC. 203. TECHNICAL AND BUSINESS ASSISTANCE IMPROVEMENTS.
Section 9(q) of the Small Business Act (15 U.S.C. 638(q)) is
amended by--
(1) in paragraph (1), in the matter preceding subparagraph
(A)--
(A) by striking ``may enter into an agreement with
1 or more vendors selected under paragraph (2)(A) to
provide small business concerns engaged in SBIR or STTR
projects with'' and inserting ``shall authorize
recipients of awards under the SBIR program or the STTR
program to select, if desired, commercialization
activities provided under subparagraph (A), (B), or (C)
of paragraph (3) to provide such recipients with''; and
(B) by inserting ``cybersecurity assistance,''
after ``market validation,'';
(2) in paragraph (3)--
(A) by striking subparagraphs (A) and (B) and
inserting the following:
``(A) Phase i.--A Federal agency described in
paragraph (1) shall authorize a recipient of a Phase I
SBIR or STTR award to use not more than $6,500 per
project, in addition to the amount of the award of the
recipient as determined appropriate by the head of the
Federal agency, for the services described in paragraph
(1)--
``(i) provided through a vendor selected
under paragraph (2)(A);
``(ii) provided, to the extent authorized
by the Federal agency, through a vendor other
than a vendor selected under paragraph (2)(A);
or
``(iii) provided through any combination of
clauses (i) and (ii).
``(B) Phase ii.--A Federal agency described in
paragraph (1) shall authorize a recipient of a Phase II
SBIR or STTR award to use not more than $50,000 per
project, included as part of the award of the recipient
or in addition to the amount of the award of the
recipient as determined appropriate by the head of the
Federal agency, for the services described in paragraph
(1)--
``(i) provided through a vendor selected
under paragraph (2)(A);
``(ii) provided through a vendor other than
a vendor selected under paragraph (2)(A); or
``(iii) provided through any combination of
clauses (i) and (ii).''; and
(B) in subparagraph (E), by inserting ``Phase I
or'' before ``Phase II''; and
(3) by adding at the end the following new paragraph:
``(5) I-corps participation.--
``(A) In general.--Each Federal agency that is
required to conduct an SBIR or STTR program with an
Innovation Corps program (established under section 601
of the American Innovation and Competitiveness Act (42
U.S.C. 1862s-8); commonly known as `I-Corps') shall--
``(i) provide an option for participation
in an I-Corps teams course, I-Corps bootcamp,
or another equivalent training program to
recipients of an award under the SBIR or STTR
program; and
``(ii) authorize the recipients described
in clause (i) to use amounts authorized under
this subsection to participate in the I-Corps
teams course, I-Corps bootcamp, or another
equivalent training program.
``(B) Cost of participation.--The cost of
participation by a recipient described in subparagraph
(A)(i) in an I-Corps course, I-Corps bootcamp, or
another equivalent training program may be provided
by--
``(i) an I-Corps team grant;
``(ii) funds awarded to the recipient under
this subsection;
``(iii) the participating teams or other
sources as appropriate; or
``(iv) any combination of sources described
in clauses (i), (ii), and (iii).''.
SEC. 204. IMPROVEMENTS TO WEBSITE RELATING TO THE SBIR PROGRAM OR STTR
PROGRAM.
(a) SBIR Program.--Section 9(g)(8) of the Small Business Act (15
U.S.C. 638(g)(8)) is amended--
(1) in subparagraph (B), by striking ``and'' at the end;
(2) in subparagraph (C), by adding ``and'' at the end; and
(3) by adding at the end the following new subparagraph:
``(D) for each research institution subcontracted
by a recipient of a Phase I, Phase II, or Phase III
SBIR award to perform research or research and
development with respect to such award--
``(i) the name and location of such
research institution;
``(ii) whether such research institution
is--
``(I) an institution of higher
education (as such term is defined in
section 101 of the Higher Education Act
of 1965 (20 U.S.C. 1001));
``(II) a nonprofit institution (as
defined in section 4 of the Stevenson-
Wydler Technology Innovation Act of
1980 (15 U.S.C. 3703)) other than an
institution of higher education; or
``(III) a federally funded research
and development center (as identified
by the National Scientific Foundation
in accordance with the Federal
Acquisition Regulation); and
``(iii) for each research institution that
is an institution of higher education, whether
such research institution is--
``(I) a part B institution (as
defined in section 322 the Higher
Education Act of 1965 (20 U.S.C.
1061));
``(II) a Hispanic-serving
institution (as defined in section 502
of such Act (20 U.S.C. 1101a));
``(III) a Tribal College or
University (as defined in section 316
of such Act (20 U.S.C. 1059c));
``(IV) an Alaska Native-serving
institution or a Native Hawaiian-
serving institution (as defined in
section 317(b) of such Act (20 U.S.C.
1059d(b)));
``(V) a Predominantly Black
Institution (as defined in section
371(c) of such Act (20 U.S.C.
1067q(c)));
``(VI) an Asian American and Native
American Pacific Islander-serving
institution (as defined in section
371(c) of such Act (20 U.S.C. 10
1067q(c))); or
``(VII) a Native American-serving
nontribal institution (as defined in
section 371(c) of such Act (20 U.S.C.
1067q(c)));''.
(b) STTR Program.--Section 9(o)(9) of the Small Business Act (15
U.S.C. 638(o)(9)) is amended--
(1) in subparagraph (B), by striking ``and'' at the end;
(2) in subparagraph (C), by adding ``and'' at the end; and
(3) by adding at the end the following new subparagraph:
``(D) for each research institution subcontracted
by a recipient of a Phase I or Phase II STTR award to
perform research or research and development with
respect to such award--
``(i) the name and location of such
research institution;
``(ii) whether such research institution
is--
``(I) an institution of higher
education (as such term is defined in
section 101 of the Higher Education Act
of 1965 (20 U.S.C. 1001));
``(II) a nonprofit institution (as
defined in section 4 of the Stevenson-
Wydler Technology Innovation Act of
1980 (15 U.S.C. 3703)) other than an
institution of higher education; or
``(III) a federally funded research
and development center (as identified
by the National Scientific Foundation
in accordance with the Federal
Acquisition Regulation); and
``(iii) for each research institution that
is an institution of higher education, whether
such research institution is--
``(I) a part B institution (as
defined in section 322 the Higher
Education Act of 1965 (20 U.S.C.
1061));
``(II) a Hispanic-serving
institution (as defined in section 502
of such Act (20 U.S.C. 1101a));
``(III) a Tribal College or
University (as defined in section 316
of such Act (20 U.S.C. 1059c));
``(IV) an Alaska Native-serving
institution or a Native Hawaiian-
serving institution (as defined in
section 317(b) of such Act (20 U.S.C.
1059d(b)));
``(V) a Predominantly Black
Institution (as defined in section
371(c) of such Act (20 U.S.C.
1067q(c)));
``(VI) an Asian American and Native
American Pacific Islander-serving
institution (as defined in section
371(c) of such Act (20 U.S.C. 25
1067q(c))); or
``(VII) a Native American-serving
nontribal institution (as defined in
section 371(c) of such Act (20 U.S.C.
1067q(c)));''.
(c) Database Reporting.--
(1) In general.--Section 9(k) of the Small Business Act (15
U.S.C. 638(k)) is amended--
(A) by striking ``Phase I or Phase II SBIR or
STTR'' each place it appears and inserting ``Phase I,
Phase II, or Phase III SBIR or STTR'';
(B) in paragraph (1)(B)--
(i) in clause (ii), by striking ``and'' at
the end;
(ii) in clause (iii), by adding ``and'' at
the end; and
(iii) by adding at the end the following
new clause:
``(iv) information regarding any research
institution subcontracted by such small
business concern to perform research or
research and development with respect to such
award, including--
``(I) the name and location of such
research institution;
``(II) whether such research
institution is--
``(aa) an institution of
higher education (as such term
is defined in section 101 of
the Higher Education Act of
1965 (20 U.S.C. 1001));
``(bb) a nonprofit
institution (as defined in
section 4 of the Stevenson-
Wydler Technology Innovation
Act of 1980 (15 U.S.C. 3703))
other than an institution of
higher education; or
``(cc) a federally funded
research and development center
(as identified by the National
Scientific Foundation in
accordance with the Federal
Acquisition Regulation); and
``(III) for each research
institution that is an institution of
higher education (as such term is
defined in section 101 of the Higher
Education Act of 1965 (20 U.S.C.
1001)), whether such research
institution is an institution described
in paragraphs (1) through (7) of
section 371(a) of such Act (20 U.S.C.
1067q(a));'';
(C) in paragraph (2)--
(i) in subparagraph (A), by striking
``Phase I or Phase II of the SBIR program or
the STTR'' and inserting ``Phase I, Phase II,
or Phase III of the SBIR program or the STTR'';
(ii) in subparagraph (F), by striking
``and'' at the end;
(iii) in subparagraph (G)(ii), by striking
the period at the end and inserting ``; and'';
and
(iv) by adding at the end the following new
subparagraph:
``(H) contains information for each research
institution subcontracted by a recipient of a Phase I,
Phase II, or Phase III STTR or SBIR award to perform
research or research and development with respect to
such award, including--
``(i) the name and location of such
research institution;
``(ii) whether such research institution
is--
``(I) an institution of higher
education (as such term is defined in
section 101 of the Higher Education Act
of 1965 (20 U.S.C. 1001));
``(II) a nonprofit institution (as
defined in section 4 of the Stevenson-
Wydler Technology Innovation Act of
1980 (15 U.S.C. 3703)) other than an
institution of higher education; or
``(III) a federally funded research
and development center (as identified
by the National Scientific Foundation
in accordance with the Federal
Acquisition Regulation); and
``(iii) for each research institution that
is an institution of higher education (as such
term is defined in section 101 of the Higher
Education Act of 1965 (20 U.S.C. 1001)),
whether such research institution is an
institution described in paragraphs (1) through
(7) of section 371(a) of such Act (20 U.S.C.
1067q(a)).''; and
(D) in paragraph (3)(C), by striking ``Phase I or
Phase II award'' each place it appears and inserting
``Phase I, Phase II, or Phase III award''.
(2) Database update deadline.--Notwithstanding paragraphs
(1) or (2) of section 9(k) of the Small Business Act (15 U.S.C.
638(k)), the Administrator shall, not later than 1 year after
the date of the enactment of this Act, include--
(A) in the database described such paragraph (1)
the information required under such paragraph, as
amended by subparagraphs (A) and (B) of paragraph (1)
of this Act; and
(B) in the database described such paragraph (2)
the information required under such paragraph, as
amended by subparagraphs (A) and (C) of paragraph (1)
of this Act.
TITLE III--COMMERCIALIZATION IMPROVEMENTS
SEC. 301. PHASE III AWARD EDUCATION.
Section 9(r) of the Small Business Act (15 U.S.C. 638(r)) is
amended by adding at the end the following new paragraph:
``(5) Workforce training.--
``(A) In general.--The Administrator, in
coordination with the Secretary of Defense, the
Administrator of the General Services Administration,
and the head of any such other Federal agency that the
Administrator determines appropriate, shall establish
training activities for contracting officers and agency
acquisition workforce of Federal agencies to ensure
that such individuals are fully aware of all aspects of
Phase III acquisitions under the SBIR and STTR
programs, as applicable.
``(B) Training topics.--The training activities
required under subparagraph (A) shall include training
on--
``(i) the missions, goals, and authorities
of the SBIR and STTR programs;
``(ii) the use of Phase III agreement; and
``(iii) Phase III data rights.
``(C) Definitions.--In this paragraph:
``(i) Agency acquisition workforce.--The
term `agency acquisition workforce' means the
employees of a Federal agency that have
procurement or acquisition responsibilities,
including--
``(I) employees described in
section 1703 of title 41, United States
Code; and
``(II) individuals that are part of
the acquisition workforce (as such term
is defined in section 101(a) of title
10, United States Code).
``(ii) Phase iii acquisition.--The term
`Phase III acquisition' means the acquisition
of a good or service from a participant in
Phase III that such participant has
commercialized or is seeking to commercialize
as such a participant.''.
SEC. 302. REPORT ON DOD DENIALS OF PHASE III.
Section 9(r) of the Small Business Act (15 U.S.C. 638(r)), as
amended by section 301, is further amended by adding at the end the
following new paragraph:
``(6) Reporting.--Not later than 30 days after the date on
which the Department of Defense denies a small business concern
Phase III agreement, the Secretary of Defense shall report that
denial to the Administrator.''.
TITLE IV--PILOT PROGRAMS
SEC. 401. EXTEND AND MODIFY ASSISTANCE FOR ADMINISTRATIVE, OVERSIGHT,
AND CONTRACT PROCESSING COSTS.
(a) In General.--Section 9(mm) of the Small Business Act (15 U.S.C.
638(mm)), as amended by section 202, is further amended--
(1) by designating the text of paragraph (1) as
subparagraph (A); and
(2) in paragraph (1)--
(A) by redesignating subparagraphs (A) through (L)
as clauses (i) through (xii), respectively;
(B) by striking ``September 30, 2025'' and
inserting ``September 30, 2030'';
(C) by striking ``3 percent'' and inserting ``3.3
percent''; and
(D) by adding at the end the following new
subparagraph:
``(B) Transfer of funds.--
``(i) In general.--Not later than 2 months
after the date of the enactment of an Act
providing appropriations for the Department of
Defense, the Department of Energy, the
Department of Health and Human Services, the
National Aeronautics and Space Administration,
or the National Science Foundation, the head of
each such entity for which such Act provided
appropriations shall transfer not less than 10
percent of the funds described under
subparagraph (A) to the Administrator to
increase the resources of the Administration
for administering the SBIR and STTR programs.
``(ii) Fund use limits.--None of the funds
transferred under clause (i) may be used for or
with respect to any program established under
the Small Business Investment Act of 1958 (15
U.S.C. 661 et seq.).''.
(b) Increasing Participation of Underserved Populations in the SBIR
and STTR Programs.--
(1) In general.--Section 9(mm)(2) of the Small Business Act
(15 U.S.C. 638(mm)(2)) is amended to read as follows:
``(2) Outreach and technical assistance.--A Federal agency
participating in the program under this subsection may use a
portion of the funds authorized for uses under paragraph (1) to
carry out the policy directive required under subsection
(j)(2)(F) and to increase the participation of States with
respect to which a low level of SBIR awards have historically
been awarded.''.
(2) Conforming amendment.--Section 9(mm)(6) of the Small
Business Act (15 U.S.C. 638(mm)(6)) is amended by striking
``including'' and all that follows and inserting the following:
``including--
``(A) the use of funds transferred under
subparagraph (B) of paragraph (1) for the uses
authorized in such subparagraph and to achieve the
objectives of paragraph (2); and
``(B) the use of other funds under this subsection
to achieve such objectives.''.
SEC. 402. EXTEND AND EXPAND THE DIRECT TO PHASE II AUTHORITY.
Section 9 of the Small Business Act (15 U.S.C. 638) is amended--
(1) by designating the text of subsection (cc) as paragraph
(1); and
(2) in subsection (cc)--
(A) by striking ``2012 through 2025'' and inserting
``2012 through 2030'';
(B) by striking ``the National Institutes of
Health, the Department of Defense, and the Department
of Education may each'' and inserting ``each Federal
agency required to carry out an SBIR program may''; and
(C) by adding at the end the following new
paragraphs:
``(2) Limitation.--The total value of awards provided by a
Federal agency under this subsection in a fiscal year shall
be--
``(A) except as provided in subparagraph (B), not
more than 10 percent of the total funds allocated to
the SBIR program of the Federal agency during that
fiscal year; and
``(B) with respect to the National Institutes of
Health, not more than 15 percent of the total funds
allocated to the SBIR program of the National
Institutes of Health during that fiscal year.
``(3) Report.--Each head of a Federal agency that exercises
the authority under this subsection shall include in the next
report submitted by such Federal agency under (g)(9) following
such exercise the number and amount of awards provided under
this subsection by such Federal agency in the period covered by
such report.''.
SEC. 403. ACCELERATION OF DOD SBIR AND STTR AWARDS.
(a) In General.--Section 9(hh) of the Small Business Act (15 U.S.C.
638(hh)) is amended--
(1) in the heading, by inserting ``and Simplified DoD
Forms'' after ``of Funding''; and
(2) by amending paragraph (2) to read as follows:
``(2) Accelerate department of defense sbir and sttr
awards.--
``(A) In general.--Notwithstanding subsections
(g)(4) and (o)(4), the Under Secretary of Defense for
Research and Engineering, acting through the Director
of Defense Procurement and Acquisition Policy of the
Department of Defense, shall develop simplified and
standardized procedures and model contracts throughout
the Department of Defense for Phase I, Phase II, and
Phase III SBIR awards that, to the extent practicable,
reduce the amount of time between the provision of
notice of such awards and the subsequent release of
funding with respect to the awards to 90 days.
``(B) Consultation.--In carrying out subparagraph
(A), the Director of Defense Procurement and
Acquisition Policy of the Department of Defense shall
consult with the Director of the Office of Small
Business Programs of the Department of Defense.''.
(b) Timing.--The Under Secretary of Defense for Research and
Engineering, acting through the Director of Defense Procurement and
Acquisition Policy of the Department of Defense, shall carry out
section 9(hh)(2) of the Small Business Act (15 U.S.C. 638(hh)(2)), as
amended by subsection (a), not later than 1 year after the date of the
enactment of this Act.
SEC. 404. EXTEND COMMERCIALIZATION READINESS PROGRAM FOR CIVILIAN
AGENCIES.
Section 9(gg) of the Small Business Act (15 U.S.C. 638(gg)) is
amended--
(1) in the heading, by striking ``Pilot'' and inserting
``Civilian Agencies Commercialization Readiness'';
(2) by striking ``pilot program'' each place it appears and
inserting ``covered program''; and
(3) by striking ``fiscal year 2025'' and inserting ``fiscal
year 2030''.
SEC. 405. EXTEND AND EXPAND 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, by striking ``Pilot'';
(2) in paragraph (1)--
(A) by striking ``Director of the National
Institutes of Health'' and inserting ``head of a
covered agency'';
(B) by striking ``pilot program'' and inserting
``program'';
(C) by striking ``the Director shall award'' and
inserting ``the head of each covered agency shall
make''; and
(D) by striking ``grants'' each place it appears
and inserting ``awards'';
(3) by amending paragraph (2) to read as follows:
``(2) Definitions.--In this subsection--
``(A) the term `covered agency' means the National
Institutes of Health, the National Science Foundation,
the National Aeronautics and Space Administration, and
the Department of Energy;
``(B) the term `Phase 0 program' means a Proof of
Concept Partnership program; and
``(C) the term `qualifying institution' mean--
``(i) 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;
or
``(ii) another U.S.-based organization with
relevant expertise and capability in technology
translation, technology entrepreneurship, or
technical research and development.'';
(4) in paragraph (3)--
(A) by amending subparagraph (A) to read as
follows:
``(A) In general.--A Proof of Concept Partnership
shall be set up by a qualifying institution to make
awards to individual researchers in support of proof of
concept work and commercialization mentoring needed to
translate promising research projects and technologies
into a viable company.''; and
(B) in subparagraph (B)--
(i) in the matter preceding clause (i)--
(I) by striking ``Proof of Concept
Partnership program'' and inserting
``Phase 0 program''; and
(II) by striking ``award grants''
and inserting ``make awards'';
(ii) by redesignating clause (ii) as clause
(iv); and
(iii) by inserting after clause (i) the
following new clauses:
``(ii) Eligible individual researchers
include faculty members, university staff,
industrial scientists, owners of small business
concerns, postdoctoral scholars, and students.
``(iii) Awards may support technical
validations, market research, entrepreneurial
training, clarifying intellectual property
rights position and strategy, and investigating
commercial or business opportunities.'';
(5) in paragraph (4)--
(A) in subparagraph (A)--
(i) by striking ``The Director'' and
inserting ``The head of a covered agency''; and
(ii) by striking ``$1,000,000'' and
inserting ``$1,500,000''; and
(B) in subparagraph (B)--
(i) in the matter preceding clause (i), by
striking ``In determining'' and all that
follows through ``qualifying institutions--''
and inserting the following: ``In determining
which qualifying institutions receive awards
under the Phase 0 program, the head of a
covered agency shall consider, in addition to
any other criteria such head determines
necessary, the extent to which the qualifying
institution--'';
(ii) by amending clause (i) to read as
follows:
``(i) have an established and proven record
of working in the areas of technology transfer,
technology or commercialization,
entrepreneurial development, or another related
innovation practice;'';
(iii) in clause (iv), by inserting
``academic,'' after ``industry,''; and
(iv) by amending clause (v) to read as
follows:
``(v) have demonstrated a plan for encouraging participation of
small business concerns owned and controlled by socially and
economically disadvantaged individuals and small business concerns
owned and controlled by women;'';
(6) in paragraph (6)--
(A) in the matter preceding subparagraph (A)--
(i) by striking ``The Director'' and
inserting ``The head of each covered agency'';
and
(ii) by striking ``pilot program'' and
inserting ``Phase 0 program implemented by such
head'';
(B) in subparagraph (B), by striking ``the pilot
program'' and inserting ``such Phase 0 program'';
(C) in subparagraph (C), by striking ``the pilot
program'' and inserting ``such Phase 0 program'';
(D) in subparagraph (D), by striking ``the pilot
program'' and inserting ``such Phase 0 program''; and
(E) in subparagraph (E)--
(i) by striking ``the program's
effectiveness'' and inserting ``the
effectiveness of such Phase 0 program''; and
(ii) by inserting after ``supporting data''
the following: ``, including how the program
contributes to the implementation of the policy
directive required under subsection
(j)(2)(F)''; and
(7) by striking paragraph (7).
SEC. 406. EXTEND COMMERCIALIZATION ASSISTANCE PROGRAMS.
Section 9(uu) of the Small Business Act (15 U.S.C. 638(uu)) is
amended--
(1) in the heading, by striking ``Pilot'';
(2) by striking ``subsequent Phase II'' each place it
appears and inserting ``third Phase II'';
(3) in paragraph (1), by amending the heading to read as
follows: ``Program implementations'';
(4) by striking ``pilot'' each place it appears;
(5) in paragraph (3), by striking ``September 30, 2025''
and inserting ``September 30, 2030'';
(6) in paragraph (5)(B)--
(A) by striking ``An eligible entity'' and
inserting the following:
``(i) In general.--An eligible entity'';
and
(B) by adding at the end the following new clause:
``(ii) Certain agency funds.--An eligible
entity may use funds received from Federal
agencies, other than funds received under an
SBIR or STTR program, to meet the matching
requirement of subparagraph (A).'';
(7) by redesignating paragraph (10) as paragraph (11);
(8) by inserting after paragraph (9) the following new
paragraph:
``(10) Timing.--An eligible entity may apply for and
receive a third Phase II award any time after the eligible
entity receives an additional Phase II SBIR award under
subsection (ff), including after the completion of such
additional Phase II SBIR award.''; and
(9) in subparagraph (E) of paragraph (11), as so
redesignated, in the heading, by striking ``subsequent phase
ii'' and inserting ``third phase ii''.
TITLE V--OVERSIGHT AND SIMPLIFICATION INITIATIVES
SEC. 501. ANNUAL REPORTS TO CONGRESS.
Section 9 of the Small Business Act (15 U.S.C. 638) is amended--
(1) in subsection (g)(9)--
(A) by inserting ``Congress,'' after ``SBIR program
to'';
(B) by inserting a comma after ``Administration'';
and
(C) by inserting after ``Technology Policy'' the
following: ``and publish such report on the website of
such Federal agency as soon as practicable'';
(2) in subsection (o)(10)--
(A) by inserting ``Congress,'' after ``STTR program
to'';
(B) by inserting a comma after ``Administration'';
and
(C) by inserting after ``Technology Policy'' the
following: ``and publish such report on the website of
such Federal agency as soon as practicable''; and
(3) in subsection (gg)(6), by inserting ``Congress and''
after ``agency to''.
SEC. 502. COMPTROLLER GENERAL REPORTS ON FRAUD CONTROLS.
(a) Report on Study With Respect to Venture Capital Operating
Company, Hedge Fund, and Private Equity Firm Involvement.--Section 5142
of the National Defense Authorization Act for Fiscal Year 2012 (15
U.S.C. 638a) is amended by inserting ``through December 31, 2027''
after ``every 3 years thereafter''.
(b) Report on Program To Fight Fraud, Waste, and Abuse.--Section
5143(b) of the National Defense Authorization Act for Fiscal Year 2012
(15 U.S.C. 638b(b)) is amended by inserting ``through December 31,
2027,'' after ``every 4 years thereafter''.
SEC. 503. COMPTROLLER GENERAL REPORT ON DIVERSIFICATION AND
COMMERCIALIZATION.
(a) In General.--Not later than three years after the date of the
enactment of this Act, the Comptroller General of the United States
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 on the effectiveness of the SBIR and STTR
programs with respect to diversification of participants and
commercialization.
(b) Contents.--The report shall include, to the extent practicable,
an assessment of--
(1) the demographics of small business concerns receiving
SBIR or STTR awards, including new entrants and
underrepresented groups;
(2) the efforts of participating agencies to broaden
representation and participation of new entrants and
underrepresented groups in the SBIR and STTR programs;
(3) how participating agencies develop solicitation topics
and attract applicants;
(4) the efforts of participating agencies to support
technology commercialization;
(5) the extent to which the SBIR and STTR awards made by
each participating agency align with the research priorities
and technology needs of that participating agency; and
(6) such other matters as the Comptroller General, in
consultation with the Committee on Small Business and
Entrepreneurship of the Senate and the Committee on Small
Business of the House of Representatives, determines
appropriate.
(c) Definitions.--In this section:
(1) Federal agency; sbir; sttr.--The terms ``Federal
agency'', ``SBIR'', and ``STTR'' have the meanings given such
terms in section 9(e) of the Small Business Act (15 U.S.C.
638(e)).
(2) New entrant.--The term ``new entrant'' means a small
business concern that has not previously received an SBIR or
STTR award.
(3) Underrepresented groups.--The term ``underrepresented
groups'' means small business concerns located in States with
respect to which a low level of SBIR and STTR awards have
historically been awarded, small business concerns owned and
controlled by women, and small business concerns owned and
controlled by socially and economically disadvantaged
individuals.
(4) Participating agency.--The term ``participating
agency'' means a Federal agency carrying out an SBIR or STTR
program under section 9 of the Small Business Act (15 U.S.C.
638).
(5) Small business concern.--The term ``small business
concern'' has the meaning given such term under section 3 of
the Small Business Act (15 U.S.C. 632).
(6) Small business concern owned and controlled by socially
and economically disadvantaged individuals; small business
concern owned and controlled by women.--The terms ``small
business concern owned and controlled by socially and
economically disadvantaged individuals'' and ``small business
concern owned and controlled by women'' have the meanings given
such terms in section 8(d) of the Small Business Act (15 U.S.C.
637(d)).
SEC. 504. EXTEND THE REPORT ON AWARD TIMELINESS.
Section 9(ii)(2)(A) of the Small Business Act (15 U.S.C.
638(ii)(2)(A)) is amended--
(1) in the matter preceding clause (i), by striking ``3
years'' and inserting ``11 years'';
(2) in clause (i), by striking ``and'' at the end;
(3) by redesignating clause (ii) as clause (iii); and
(4) by inserting after clause (i) the following new clause:
``(ii) provides the average and median
amount of time that each Federal agency with an
SBIR or STTR program takes to review and make a
final decision on proposals submitted under the
program; and''.
SEC. 505. PILOT PROGRAM TO ACCELERATE NATIONAL INSTITUTES OF HEALTH
EVALUATION PROCESS.
(a) In General.--Section 9(hh) of the Small Business Act (15 U.S.C.
638(hh)) is amended by adding at the end the following new paragraph:
``(3) Pilot program to accelerate the national institutes
of health sbir and sttr awards.--
``(A) In general.--Not later than 1 year after the
date of the enactment of this paragraph, the Director
of the National Institutes of Health shall establish a
pilot program to reduce the time for awards under the
SBIR and STTR programs of the National Institutes of
Health.
``(B) Award procedures.--In carrying out the pilot
program under subparagraph (A), the Director shall
develop simplified and standardized procedures across
all relevant awarding offices at the National
Institutes of Health and reduce the amount of time
between the provision of notice of such awards and the
subsequent release of funding with respect to the
awards to be as close to 90 days as possible.
``(C) Merit review.--
``(i) In general.--Under the pilot program
under subparagraph (A), the Director of the
National Institutes of Health may, with respect
to awards under the SBIR and STTR programs of
the National Institute of Health, use such peer
review procedures (including consultation with
appropriate scientific experts) as the Director
determines to be appropriate to obtain
assessments of scientific and technical merit
and potential for commercialization.
``(ii) Deemed.--The use of peer review
procedures under clause (i) shall be deemed to
fulfill any requirements applicable to the
award under the SBIR or STTR program of the
National Institute of Health under sections
406(a)(3)(A) and 492 of the Public Health
Service Act (42 U.S.C. 284a(a)(3)(A); 289a).
``(D) Termination.--The pilot program under
subparagraph (A) shall terminate on September 30,
2030.''.
(b) Evaluation Report.--Not later than three years after the date
of enactment of this Act, the Director of the National Institutes of
Health shall submit to the Committees on Small Business and Science,
Space, and Technology of the House of Representatives and the Committee
on Small Business and Entrepreneurship of the Senate an evaluation of
the pilot program established under paragraph (3) of section 9(hh) of
the Small Business Act (15 U.S.C. 638(hh)), as added by subsection (a),
including an analysis of the peer review procedures used under
subparagraph (C) of such paragraph and the effects on award times.
SEC. 506. CODIFYING SAFEGUARDS FOR SMALL BUSINESS CONCERNS MAJORITY-
OWNED BY VENTURE CAPITAL OPERATING COMPANIES, HEDGE
FUNDS, OR PRIVATE EQUITY FIRMS.
(a) In General.--Section 9(dd) of the Small Business Act (15 U.S.C.
638(dd)) is amended--
(1) in paragraph (6)(B), by striking ``If a Federal'' and
inserting ``Except as provided in paragraph (8), if a
Federal''; and
(2) by adding at the end the following new paragraph:
``(8) Participation limits.--
``(A) In general.--A small business concern that is
majority-owned by multiple venture capital operating
companies, hedge funds, or private equity firms is
ineligible to receive an award under any SBIR program
if the Administrator determines that such small
business concern is, or is owned and controlled in
majority part by, a covered foreign entity.
``(B) Ownership determination.--In determining
whether a small business concern is ineligible to
receive an award under any SBIR program under
subparagraph (A), the Administrator shall consider
whether the small business concern is a direct or
indirect subsidiary of a foreign-owned firm.
``(C) Size standards.--The Administrator shall
establish size standards for small business concerns
seeking to participate in an SBIR program solely under
the authority under this section.
``(D) Definitions.--In this paragraph:
``(i) Covered foreign entity.--the term
`covered foreign entity'--
``(I) means--
``(aa) a foreign entity of
concern;
``(bb) a government or
political party of a foreign
country of concern;
``(cc) a natural person who
is not a lawful permanent
resident of the United States,
citizen of the United States,
or any other protected
individual (as such term is
defined in section 274B(a)(3)
of the Immigration and
Nationality Act (8 U.S.C.
1324b(a)(3))); or
``(dd) a partnership,
association, corporation,
organization, or other
combination of persons
organized under the laws of or
having its principal place of
business in a foreign country
of concern; and
``(II) includes--
``(aa) any person owned by,
controlled by, or subject to
the jurisdiction or direction
of a an entity listed in
subclause (I);
``(bb) any person, wherever
located, who acts as an agent,
representative, or employee of
an entity listed in subclause
(I);
``(cc) any person who acts
in any other capacity at the
order, request, or under the
direction or control, of an
entity listed in subclause (I),
or of a person whose activities
are directly or indirectly
supervised, directed,
controlled, financed, or
subsidized in whole or in
majority part by an entity
listed in subclause (I);
``(dd) any person who
directly or indirectly through
any contract, arrangement,
understanding, relationship, or
otherwise, owns 25 percent or
more of the equity interests of
an entity listed in subclause
(I);
``(ee) any person with
significant responsibility to
control, manage, or direct an
entity listed in subclause (I);
``(ff) any person, wherever
located, who is a citizen or
resident of a country
controlled by an entity listed
in subclause (I); or
``(gg) any corporation,
partnership, association, or
other organization organized
under the laws of a country
controlled by an entity listed
in subclause (I).
``(ii) Foreign entity of concern.--The term
`foreign entity of concern' means a foreign
entity that is--
``(I) designated as a foreign
terrorist organization by the Secretary
of State under section 219(a) of the
Immigration and Nationality Act (8
U.S.C. 1189(a));
``(II) included on the list of
specially designated nationals and
blocked persons maintained by the
Office of Foreign Assets Control of the
Department of the Treasury (commonly
known as the SDN list);
``(III) owned by, controlled by, or
subject to the jurisdiction or
direction of a government of a foreign
country that is a covered nation (as
such term is defined in section 4872 of
title 10, United States Code);
``(IV) alleged by the Attorney
General to have been involved in
activities for which a conviction was
obtained under--
``(aa) chapter 37 of title
18, United States Code
(commonly known as the
Espionage Act);
``(bb) section 951 or 1030
of such title;
``(cc) chapter 90 of such
title (commonly known as the
Economic Espionage Act of
1996);
``(dd) the Arms Export
Control Act (22 U.S.C. 2751 et
seq.);
``(ee) section 224, 225,
226, 227, or 236 of the Atomic
Energy Act of 1954 (42 U.S.C.
2274, 2275, 2276, 2277, and
2284);
``(ff) the Export Control
Reform Act of 2018 (50 U.S.C.
4801 et seq.); or
``(gg) the International
Emergency Economic Powers Act
(50 U.S.C. 1701 et seq.); or
``(V) determined by the Secretary
of Commerce, in consultation with the
Secretary of Defense and the Director
of National Intelligence, to be engaged
in unauthorized conduct that is
detrimental to the national security or
foreign policy of the United States.''.
(b) Applicability.--The amendments made by subsection (a) shall
apply only with respect to awards made under an Small Business
Innovation Research Program (as defined in section 9(e) of the Small
Business Act (15 U.S.C. 638(e))) after the date of the enactment of
this Act.
TITLE VI--TECHNICAL CHANGES
SEC. 601. INCLUSION OF SBICS IN THE SBIR AND STTR PROGRAMS.
Section 9 of the Small Business Act (15 U.S.C. 638) is amended--
(1) by striking ``or private equity firm investment'' each
place that term appears and inserting ``private equity firm, or
SBIC investment'';
(2) by striking ``or private equity firms'' each place that
term appears and inserting ``private equity firms, or SBICs'';
(3) in subsection (e)--
(A) in paragraph (18), by striking ``and'' at the
end;
(B) in paragraph (19), by striking the period at
the end and inserting ``; and''; and
(C) by adding at the end the following new
paragraph:
``(15) the term `SBIC' means a small business investment
company as defined in section 103 of the Small Business
Investment Act of 1958 (15 U.S.C. 662).''; and
(4) in the heading for subsection (dd), by striking ``or
Private Equity Firms'' and inserting ``Private Equity Firms, or
SBICs''.
SEC. 602. PHASE III AND SOLE-SOURCE AWARDS.
Section 9(r) of the Small Business Act (15 U.S.C. 638) is amended--
(1) in the heading, by inserting ``Sole Source and Other''
after ``Justification for''; and
(2) in the heading for paragraph (4), by inserting ``sole
source and other'' after ``justification for''.
<all>