[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 3971 Considered and Passed Senate (CPS)]
<DOC>
119th CONGRESS
2d Session
S. 3971
To extend the SBIR and STTR programs, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
March 3, 2026
Ms. Ernst (for herself and Mr. Markey) introduced the following bill;
which was read twice, considered, read the third time, and passed
_______________________________________________________________________
A BILL
To extend 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 ``Small Business Innovation and
Economic Security Act''.
SEC. 2. BOLSTERING RESEARCH SECURITY OF SBIR AND STTR AWARDS.
(a) In General.--Section 9 of the Small Business Act (15 U.S.C.
638) is amended--
(1) in subsection (g)--
(A) by redesignating paragraphs (15), (16), and
(17) as paragraphs (16), (18), and (19), respectively;
(B) by inserting after paragraph (14) the
following:
``(15) evaluate whether a small business concern presents a
security risk for any reason, through measures including--
``(A) the due diligence process required under
subsection (vv);
``(B) disclosures submitted under this subsection;
or
``(C) coordination with the intelligence community,
as defined in section 3 of the National Security Act of
1947 (50 U.S.C. 3003), Federal law enforcement, and
other counterintelligence capabilities of the Federal
Government;'';
(C) in paragraph (16), as so redesignated--
(i) by striking subparagraph (B);
(ii) by striking ``that--'' and all that
follows through ``the small business concern
submitting'' and inserting ``that the small
business concern submitting'';
(iii) by redesignating clauses (i), (ii),
and (iii) as subparagraphs (A), (B), and (C),
respectively, and adjusting the margins
accordingly;
(iv) in subparagraph (B), as so
redesignated, by striking ``or'' at the end;
(v) in subparagraph (C), as so
redesignated, by striking ``and'' at the end;
and
(vi) by adding at the end the following:
``(D) has a security risk connecting the small
business concern to an entity, including any affiliates
of the entity, or individual on--
``(i) the UFLPA Entity List maintained by
the Department of Homeland Security;
``(ii) the Non-SDN Chinese Military-
Industrial Complex Companies List of the Office
of Foreign Assets Control maintained by the
Department of the Treasury;
``(iii) the Section 889 Prohibition List
established under section 889 of the John S.
McCain National Defense Authorization Act for
Fiscal Year 2019 (Public Law 115-232; 132 Stat.
1917) and maintained by the Department of
Defense;
``(iv) the list of Chinese Military
companies required under section 1260H of the
William M. (Mac) Thornberry National Defense
Authorization Act for Fiscal Year 2021 (10
U.S.C. 113 note) and maintained by the
Department of Defense;
``(v) the Military End User List maintained
by the Bureau of Industry and Security of the
Department of Commerce;
``(vi) the Entity List maintained by the
Bureau of Industry and Security of the
Department of Commerce;
``(vii) the List of Equipment and Services
maintained by the Federal Communications
Commission; or
``(viii) the Withhold Release Orders and
Findings List maintained by U.S. Customs and
Border Protection;
``(E) has a security risk with a primary source
that is classified; or
``(F) has a security risk that the Federal agency
determines warrants a denial;'';
(D) by inserting after paragraph (16), as so
redesignated, the following:
``(17) provide for--
``(A) a process under which, upon making an award
decision to deny an application on the basis of a
determination under paragraph (16), or upon making a
determination under paragraph (16) that a small
business concern has a security risk described in that
paragraph, the Federal agency provides to the small
business concern, as appropriate pursuant to the
discretion of the Federal agency and in a manner that
does not compromise national security, a notification--
``(i) advising the small business concern
of such determination; and
``(ii) identifying the basis for such
determination; and
``(B) a policy that clarifies that receipt of an
award decision denying an application does not prohibit
the small business concern from being eligible for an
award in a subsequent award cycle;'';
(E) in paragraph (19), as so redesignated--
(i) in subparagraph (B), by striking
``paragraph (16)(A)'' and inserting ``paragraph
(18)(A)''; and
(ii) in subparagraph (C), by striking
``paragraph (16)(B)'' and inserting ``paragraph
(18)(B)'';
(2) in subsection (o)--
(A) by redesignating paragraphs (19), (20), and
(21) as paragraphs (20), (22), and (23), respectively;
(B) by inserting after paragraph (18) the
following:
``(19) evaluate whether a small business concern presents a
security risk for any reason, through measures including--
``(A) the due diligence process required under
subsection (vv);
``(B) disclosures submitted under this subsection;
or
``(C) coordination with the intelligence community,
as defined in section 3 of the National Security Act of
1947 (50 U.S.C. 3003), Federal law enforcement, and
other counterintelligence capabilities of the Federal
Government;'';
(C) in paragraph (20), as so redesignated--
(i) by striking subparagraph (B);
(ii) by striking ``that--'' and all that
follows through ``the small business concern
submitting'' and inserting ``that the small
business concern submitting'';
(iii) by redesignating clauses (i), (ii),
and (iii) as subparagraphs (A), (B), and (C),
respectively, and adjusting the margins
accordingly;
(iv) in subparagraph (B), as so
redesignated, by striking ``or'' at the end;
(v) in subparagraph (C), as so
redesignated, by striking ``and'' at the end;
and
(vi) by adding at the end the following:
``(D) has a foreign risk connecting the small
business concern to an entity, including any affiliates
of the entity, or individual on--
``(i) the UFLPA Entity List maintained by
the Department of Homeland Security;
``(ii) the Non-SDN Chinese Military-
Industrial Complex Companies List of the Office
of Foreign Assets Control maintained by the
Department of the Treasury;
``(iii) the Section 889 Prohibition List
established under section 889 of the John S.
McCain National Defense Authorization Act for
Fiscal Year 2019 (Public Law 115-232; 132 Stat.
1917) and maintained by the Department of
Defense;
``(iv) the list of Chinese Military
companies required under section 1260H of the
William M. (Mac) Thornberry National Defense
Authorization Act for Fiscal Year 2021 (10
U.S.C. 113 note) and maintained by the
Department of Defense;
``(v) the Military End User List maintained
by the Bureau of Industry and Security of the
Department of Commerce;
``(vi) the Entity List maintained by the
Bureau of Industry and Security of the
Department of Commerce;
``(vii) the List of Equipment and Services
maintained by the Federal Communications
Commission; or
``(viii) the Withhold Release Orders and
Findings List maintained by U.S. Customs and
Border Protection;
``(E) has a security risk with a primary source
that is classified; or
``(F) has a security risk that the Federal agency
determines warrants a denial;'';
(D) by inserting after paragraph (20) the
following:
``(21) provide for--
``(A) a process under which, upon making an award
decision to deny an application on the basis of a
determination under paragraph (20), or upon making a
determination under paragraph (20) that a small
business concern has a security risk described in that
paragraph, the Federal agency provides to the small
business concern, as appropriate pursuant to the
discretion of the Federal agency and in a manner that
does not compromise security, a notification--
``(i) advising the small business concern
of such determination; and
``(ii) identifying the basis for such
determination; and
``(B) a policy that clarifies that receipt of an
award decision denying an application does not prohibit
the small business concern from being eligible for an
award in a subsequent award cycle;''; and
(E) in paragraph (23), as so redesignated--
(i) in subparagraph (B), by striking
``paragraph (20)(A)'' and inserting ``paragraph
(22)(A)''; and
(ii) in subparagraph (C), by striking
``paragraph (20)(B)'' and inserting ``paragraph
(22)(B)''; and
(3) in subsection (vv)(2)--
(A) by amending subparagraph (A) to read as
follows:
``(A) assess, using a risk-based approach as
appropriate--
``(i) the cybersecurity practices of a
small business concern;
``(ii) patent analysis;
``(iii) employee analysis;
``(iv) foreign ownership of a small
business concern seeking an award, including
the financial ties and obligations (which shall
include surety, equity, and debt obligations)
of the small business concern and employees of
the small business concern to a foreign
country, foreign person, or foreign entity;
``(v) foreign affiliations of a covered
individual, owner, or other key personnel of a
small business concern with an entity in a
foreign country of concern;
``(vi) investment relationships of a small
business concern with an individual or entity
in a foreign country of concern;
``(vii) technology licensing agreements or
joint ventures (including joint venture-like
agreements) with an individual or entity in a
foreign country of concern; and
``(viii) business relationships between a
covered individual, owner, or other key
personnel of a small business concern and an
individual or entity in a foreign country of
concern;'';
(B) in subparagraph (B), by striking the period at
the end and inserting ``; and''; and
(C) by adding at the end the following:
``(C) examine any relationship of a small business
concern seeking an award to any entity or individual
included on the lists described in subsections
(g)(16)(D) and (o)(20)(D).''.
(b) GAO Study.--Section 4(b)(4) of the SBIR and STTR Extension Act
of 2022 (Public Law 117-183; 136 Stat. 2183) is amended by striking ``3
years'' and inserting ``8 years''.
SEC. 3. PHASE II STRATEGIC BREAKTHROUGH FUNDING.
(a) In General.--Section 9 of the Small Business Act (15 U.S.C.
638) is amended--
(1) in subsection (aa), by adding at the end the following:
``(6) Strategic breakthrough allocation.--The requirement
under paragraph (1) and the requirement to receive a waiver
from the Administrator under paragraph (4) do not apply to a
Federal agency for awards of not more than $30,000,000 to a
small business concern with funds made available under a
strategic breakthrough allocation (as defined in subsection
(ff)(3)(A)).''; and
(2) in subsection (ff), by adding at the end the following:
``(3) Strategic breakthrough awards.--
``(A) Strategic breakthrough allocation defined.--
In this paragraph, the term `strategic breakthrough
allocation' means, with respect to a Federal agency
with a required expenditure under subsection (f)(1) in
excess of $100,000,000, an expenditure amount from the
SBIR allocation under subsection (f)(1) of such agency
of not more than 0.50 percent of the extramural budget
for research or research and development designated for
such agency for fiscal year 2026 and every fiscal year
thereafter.
``(B) Award.--Under this paragraph, a funding
agreement may be awarded to a small business concern by
a Federal agency using funds made available under a
strategic breakthrough allocation.
``(C) Fund parameters.--In the case of a Phase II
agreement that is awarded to a small business concern
by a Federal agency using funds made available under a
strategic breakthrough allocation, the following
requirements shall apply:
``(i) Award size and period of
performance.--A Federal agency may award from a
strategic breakthrough allocation not more than
$30,000,000 to a small business concern,
including its affiliates, in a single award or
series of awards based on reaching production
or development milestones, if the total period
of performance of the project with respect to
which such funds are awarded is not more than
48 months.
``(ii) Small business concern
requirements.--The small business concern
shall--
``(I) have been awarded not less
than 1 prior Phase II award under the
SBIR or STTR program;
``(II) demonstrate not less than
100 percent matching funds from--
``(aa) new private capital
as a result of an award using
funds made available under a
strategic breakthrough
allocation;
``(bb) new funding awarded
by a government agency under a
program other than Phase I or
II of the SBIR or STTR program
as a result of an award using
funds made available under a
strategic breakthrough
allocation; or
``(cc) a combination of
funds described in items (aa)
and (bb);
``(III) demonstrate a technology
that is an effective solution, as
determined by market research; and
``(IV) only be eligible for an
award from the strategic breakthrough
allocation at the Department of Defense
if the small business concern--
``(aa) provides a product,
process, or technology that
meets a necessary level of
readiness and has a commitment
for inclusion in a program
objective memorandum from an
official with the rank of
program acquisition executive
or higher in an acquisition
organization of the Department
of Defense;
``(bb) provides a product,
process, or technology that
will meet high priority
requirements or operational
needs of a military department
through a successful transition
and into the acquisition
process; and
``(cc) demonstrates not
less than 20 percent of the
required matching funds under
subclause (II) come from new
funding awarded by the
Department of Defense under a
program other than Phase I or
II of the SBIR or STTR program
as a result of an award using
funds made available under a
strategic breakthrough
allocation.
``(iii) Deadline.--The Federal agency shall
complete any contract awards using strategic
breakthrough allocation funds not later than 90
days after receiving a proposal from a small
business concern for the award.
``(iv) Eligible activities.--Eligible
activities by a small business concern using
strategic breakthrough allocation funds are any
critical technology areas or requirements
deemed necessary by the Federal agency.
``(v) Selection criteria.--In making awards
using funds made available under a strategic
breakthrough allocation, the Federal agency
shall consider--
``(I) the potential of the small
business concern to advance the
national security capabilities of the
United States;
``(II) the potential of the small
business concern to provide new
technologies or processes, or new
applications of existing technologies,
that will enable new alternatives to
existing programs;
``(III) whether a customer in a
Federal agency has expressed an intent
to purchase and integrate technology
from the small business concern into
its operations; or
``(IV) whether a particular
technology area is undercapitalized by
private investment.
``(D) Use of streamlined contracting mechanisms.--
Each Federal agency shall implement streamlined
processes and requirements for submitting proposals and
applying for awards using funds made available under a
strategic breakthrough allocation.''.
(b) Commercialization Readiness Program.--Section 9(y) of the Small
Business Act (15 U.S.C. 638(y)) is amended--
(1) in paragraph (2)--
(A) by striking ``shall identify'' and inserting
``shall--
``(A) identify'';
(B) in subparagraph (A), as so designated--
(i) by inserting ``, including small
business concerns with an award from the
strategic breakthrough allocation (as defined
in subsection (ff)(3)(A),'' before ``that have
the potential''; and
(ii) by striking the period at the end and
inserting a semicolon; and
(C) by adding at the end the following:
``(B) ensure, in collaboration with SBIR program
managers of each component, that research programs
identified under subparagraph (A) are analyzed within
the programming and budgeting process as budget
requests are developed; and
``(C) provide to the Committee on Small Business
and Entrepreneurship of the Senate and the Committees
on Small Business and Science, Space, and Technology of
the House of Representatives information on the
integration of SBIR and STTR awardees in budget
rollouts for research, development, testing, and
evaluation activities.'';
(2) by striking paragraph (3);
(3) by redesignating paragraphs (4), (5), and (6) as
paragraphs (3), (4), and (5), respectively; and
(4) in paragraph (5), as so redesignated--
(A) in subparagraph (B), by striking ``and'' at the
end;
(B) by redesignating subparagraph (C) as
subparagraph (D); and
(C) by inserting after subparagraph (B) the
following:
``(C) establish a mechanism to provide small
business concerns with direct access to program and
requirements offices that may purchase technology from
the small business concern under Phase III of the SBIR
program; and''.
(c) Briefings.--
(1) Definition.--In this subsection, the term ``appropriate
committees of Congress'' means--
(A) the Committee on Small Business and
Entrepreneurship of the Senate;
(B) the Committee on Small Business of the House of
Representatives; and
(C) the Committee on Science, Space, and Technology
of the House of Representatives.
(2) General requirement.--Not later than 60 days after the
date of enactment of this Act, the head of each Federal agency
that is eligible to make an award from funds made available
under a strategic breakthrough allocation (as defined in
paragraph (3) of subsection (ff) of section 9 of the Small
Business Act (15 U.S.C. 638), as added by this section) shall
brief the appropriate committees of Congress on whether that
Federal agency plans to make awards pursuant to the authority
provided under such paragraph (3), including the reasons why
the Federal agency plans to, or does not plan to, use that
authority.
(3) Recurring briefing by federal agencies using funding
authority.--The head of each Federal agency that opts to make
awards pursuant to the authority under paragraph (3) of
subsection (ff) of section 9 of the Small Business Act (15
U.S.C. 638), as added by this section, shall, on a recurring
basis until the Federal agency finalizes procedures for making
those awards, brief the appropriate committees of Congress
regarding the implementation of such paragraph (3) by that
Federal agency.
(d) Termination.--Effective on September 30, 2031--
(1) this section and the amendments made by this section
shall cease to have effect; and
(2) the provisions of law amended by this section shall be
restored as if such amendments had not been enacted.
SEC. 4. REDUCING ADMINISTRATIVE BURDEN.
Section 9 of the Small Business Act (15 U.S.C. 638) is amended by
adding at the end the following:
``(aaa) Reducing Administrative Burden.--
``(1) In general.--With respect to fiscal year 2027 and
each fiscal year thereafter, the Director of the SBIR or STTR
program office of each Federal agency shall, pursuant to
authority that may not be delegated, set equally for all small
business concerns a limit on the maximum number of proposals
that a small business concern may submit in response to Phase I
solicitations and Phase II solicitations under subsection (cc),
published by that Federal agency, including all components of
that Federal agency, in a single fiscal year. In establishing
such a limitation, the Director of the SBIR or STTR program
office of each Federal agency shall use 1 of the following
methods:
``(A) A limit for any small business concern on a
fiscal year basis.
``(B) A limit for any small business concern on a
solicitation basis.
``(C) A limit for any small business concern on a
topic basis.
``(2) Waiver.--
``(A) In general.--On a topic by topic basis, the
Director of the SBIR or STTR program office of each
Federal agency may grant a waiver of the proposal limit
under paragraph (1) at the time of a solicitation
announcement for a specific topic for the SBIR or STTR
program of the Federal agency if the topic is time-
sensitive and urgent to the mission of the Federal
agency.
``(B) Written justification.--For each topic for
which a waiver is sought under subparagraph (A), the
Director of the SBIR or STTR program office of the
Federal agency shall provide a written justification to
the Administrator, and to the Undersecretary described
in subparagraph (C), for why the use of the waiver
authority is imperative for the agency's mission and
the nature of the immediate and critical need that the
Director reasonably believes cannot be met by small
business concerns that have not reached the proposal
limit under paragraph (1).
``(C) Timing.--The Undersecretary overseeing the
SBIR or STTR program at a Federal agency and the
Administrator are required to approve or disapprove a
waiver and written justification not later than 15 days
after the date on which the Undersecretary receives
from the Director the waiver request described in
subparagraph (A) and the written justification
described in subparagraph (B).
``(D) Nondelegation.--The authority to grant or
approve a waiver under subparagraph (A) or (C),
respectively, may not be delegated.
``(E) Waiver effects.--If the Federal agency grants
a waiver under subparagraph (A) with respect to a topic
for the SBIR or STTR program of a Federal agency,
paragraph (1) shall not prohibit any small business
concern from submitting an SBIR or STTR proposal to
that Federal agency under such topic.
``(F) Record requirement.--Participating agencies
shall maintain information on topics to which waivers
of the proposal limit under this paragraph are granted,
including the written justifications for those waivers.
``(G) Limitation.--A Federal agency may not grant a
waiver under this paragraph with respect to more than 5
percent of the topics of the SBIR and STTR programs of
the Federal agency in any fiscal year.
``(3) Reporting.--
``(A) In general.--Not later than 30 days after the
date on which the Director of the SBIR or STTR program
office of a Federal agency sets or changes a limit
under paragraph (1), the head of that Federal agency
shall provide 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 the
methodology for setting or changing that limit, the
considerations made in setting or changing that limit,
and how many small business concerns are impacted by
that limit based on historical data.
``(B) Written notification.--Not later than 30 days
after the date on which the Director of the SBIR or
STTR program office of a Federal agency grants a waiver
under paragraph (2), the Director shall provide 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 written notification
regarding the granting of that waiver, which shall
include the information described in paragraph (2)(F)
with respect to that waiver.
``(4) Timing.--The Director shall establish the proposal
limit under paragraph (1) not later than 90 days before the
start of fiscal year 2027 and each fiscal year thereafter.''.
SEC. 5. PHASE III AWARD EDUCATION.
Section 9 of the Small Business Act (15 U.S.C. 638) is amended--
(1) 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:
``(20) the term `agency acquisition workforce' means the
employees of a Federal agency that have procurement or
acquisition responsibilities, including--
``(A) employees described in section 1703 of title
41, United States Code; and
``(B) individuals that are part of the acquisition
workforce, as defined in section 101(a) of title 10,
United States Code.'';
(2) in subsection (r), by adding at the end the following:
``(5) Workforce training.--
``(A) In general.--The Administrator, in
coordination with the Secretary of Defense, the
Administrator of General Services, and the head of any
other Federal agency that the Administrator determines
appropriate, shall establish training activities for
contracting officers and the agency acquisition
workforce of Federal agencies to ensure that all such
individuals are fully aware of all aspects of Phase III
awards 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 agreements;
``(iii) Phase III data rights; and
``(iv) the execution of Phase III sole
source award contracts.
``(C) Funding.--The training activities required
under subparagraph (A) may be carried out using funds
made available to carry out subsections (y) and
(mm).''; and
(3) in subsection (mm)(1)--
(A) in subparagraph (J), by striking ``and'' at the
end;
(B) in subparagraph (K), by striking the period at
the end and inserting ``; and''; and
(C) by adding at the end the following:
``(L) contracting officer and acquisition workforce
training activities pursuant to subsection (r)(5).''.
SEC. 6. PHASE III IMPROVEMENTS.
(a) Procurement Center Representative Directives.--
(1) In general.--Section 9(j)(4) of the Small Business Act
(15 U.S.C. 638(j)(4)) is amended by inserting before the period
at the end the following: ``, and advocate for the maximum
practicable use and transition of products, services, and
technologies developed under SBIR or STTR programs to Phase III
by means of Phase III awards to small business concerns''.
(2) Modification deadline.--Not later than 1 year after the
date of enactment of this Act, the Administrator of the Small
Business Administration shall modify the policy directives
issued pursuant to subsection (j) of section 9 of the Small
Business Act (15 U.S.C. 638(j)) in accordance with paragraph
(4) of that subsection, as amended by paragraph (1).
(b) Phase III Award Simplification.--Section 9(r)(4) of the Small
Business Act (15 U.S.C. 638(r)(4)) is amended--
(1) in subparagraph (A), by striking ``and'' at the end;
(2) in subparagraph (B), by striking the period at the end
and inserting a semicolon; and
(3) by adding at the end the following:
``(C) develop simplified and standardized
procedures and model contracts for Phase I, Phase II,
and Phase III SBIR awards and report to the
Administrator on actions taken by the Federal agency in
support of these objectives; and
``(D) as applicable, issue standardized
solicitation provisions and contract clauses that
provide clear guidance on the information that small
business concerns participating in SBIR or STTR
programs can be expected to provide as part of market
research or as part of a proposal by those small
business concerns to establish eligibility for Phase
III awards.''.
SEC. 7. TECHNICAL AND BUSINESS ASSISTANCE IMPROVEMENTS.
Section 9 of the Small Business Act (15 U.S.C. 638(q)), as amended
by this Act, is amended--
(1) in subsection (q)--
(A) in paragraph (1)--
(i) in the matter preceding subparagraph
(A)--
(I) 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 technical
and business assistance services'' and
inserting ``shall authorize recipients
of awards under the SBIR program or the
STTR program to select, if desired,
technical and business assistance
provided under subparagraph (A) or (B)
of paragraph (2) with respect to SBIR
or STTR projects'';
(II) by inserting ``cybersecurity
assistance,'' after ``intellectual
property protections,''; and
(III) by striking ``such concerns''
and inserting ``such recipients'';
(ii) in subparagraph (C), by striking
``and'' at the end;
(iii) in subparagraph (D), by striking the
period at the end and inserting ``; and''; and
(iv) by adding at the end the following:
``(E) screening for potential foreign involvement
in technology development or commercialization
activities.''; and
(B) in paragraph (2)--
(i) in the paragraph heading, by striking
``Vendor selection'' and inserting ``Eligible
uses of funds.--'';
(ii) by striking subparagraph (A);
(iii) by redesignating subparagraph (B) as
subparagraph (A); and
(iv) by inserting after subparagraph (A),
as so redesignated, the following:
``(B) Staff.--A small business concern may, by
contract or otherwise, use funding provided under this
section to hire new staff, augment staff, or direct
staff to conduct or participate in training activities
consistent with the goals listed in paragraph (1).'';
(C) in paragraph (3)--
(i) 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, 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 by
the small business concern under paragraph
(2)(A); or
``(ii) achieved through the activities
described in paragraph (2)(B).
``(B) Phase ii.--A Federal agency described in
paragraph (1) shall authorize a recipient of a Phase II
SBIR or STTR award to utilize 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 by
the small business concern under paragraph
(2)(A); or
``(ii) achieved through the activities
described in paragraph (2)(B).''; and
(D) by adding at the end the following:
``(5) Targeted review.--A Federal agency may perform
targeted reviews of technical and business assistance funding
as described in subsection (mm)(1)(F).''; and
(2) by adding at the end the following:
``(bbb) I-corps Participation.--
``(1) In general.--Each Federal agency with an Innovation
Corps program (commonly known as `I-Corps') that is required to
conduct an SBIR or STTR program shall--
``(A) provide an option for requesting
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
``(B) authorize the recipients described in
subparagraph (A) to use amounts authorized under
subsection (q) to participate in the I-Corps teams
course, I-Corps bootcamp, or another equivalent
training program.
``(2) Cost of participation.--The cost of participation by
a recipient described in paragraph (1)(A) in an I-Corps course,
I-Corps bootcamp, or another equivalent training program may be
provided by--
``(A) an I-Corps team SBIR or STTR grant;
``(B) funds awarded to the recipient under
subsection (q);
``(C) funds made available to carry out subsection
(mm);
``(D) the participating teams or other sources as
appropriate; or
``(E) any combination of sources described in
subparagraphs (A), (B), (C), and (D).''.
SEC. 8. IMPROVING SBIR AND STTR DATA COLLECTION.
(a) Additional Data Fields in SBIR Database.--Section 9(k)(1) of
the Small Business Act (15 U.S.C. 638(k)(1)) is amended--
(1) in subparagraph (E)(iv), by striking ``and'' at the
end;
(2) in subparagraph (F)(v), by striking the period at the
end and inserting ``; and''; and
(3) by adding at the end the following:
``(G) for each award granted, whether the award is
classified or designated as--
``(i) direct to Phase II, under subsection
(cc);
``(ii) subsequent Phase II, under
subsection (bb)(1);
``(iii) a strategic breakthrough award
under subsection (ff)(3);
``(iv) a Phase III prime contract award; or
``(v) a Phase III subcontract award.''.
(b) Improving Federal Procurement Data Systems Data Tracking.--
(1) Definitions.--In this section:
(A) Federal agency; phase ii; phase iii; sbir;
sttr.--The terms ``Federal agency'', ``Phase II'',
``Phase III'', ``SBIR'', and ``STTR'' have the meanings
given those terms in section 9(e) of the Small Business
Act (15 U.S.C. 638(e)).
(B) Small business concern.--The term ``small
business concern'' has the meaning given the term in
section 3 of the Small Business Act (15 U.S.C. 632).
(2) Requirement to update.--The Administrator of General
Services shall update the Federal Procurement Data System
described in section 1122(a)(4) of title 41, United States
Code, or any successor system, to--
(A) require reporting on whether an award under the
SBIR or STTR program under section 9 of the Small
Business Act (15 U.S.C. 638) is classified or
designated as--
(i) direct to Phase II, under subsection
(cc) of such section;
(ii) subsequent Phase II, under subsection
(bb)(1) of such section;
(iii) a strategic breakthrough award under
subsection (ff)(3) of such section, as added by
this Act;
(iv) a Phase III prime contract award; or
(v) a Phase III subcontract award;
(B) require reporting on whether a contract is
designated as a Phase III contract;
(C) require reporting on whether non-SBIR contracts
and subcontracts are using SBIR- or STTR-funded
technology; and
(D) require a government contracting officer, when
recording a Phase II or Phase III contract following on
from work done by a small business concern during a
Phase I or Phase II award, to reference an SBIR or STTR
contract identification number for relevant prior SBIR
or STTR work done.
SEC. 9. EXTENDING SBIR AND STTR AUTHORIZATION.
(a) In General.--Section 9 of the Small Business Act (15 U.S.C.
638), as amended by this Act, is amended--
(1) in subsection (m), by striking ``September 30, 2025''
and inserting ``September 30, 2031''; and
(2) in subsection (n)(1)(A), by striking ``2025'' and
inserting ``2031''.
(b) Carry Over Funds.--If a Federal agency that participates in the
SBIR or STTR program has funds remaining at the end of fiscal year 2026
from amounts required to be expended under subsection (f)(1) or (n)(1),
respectively, of section 9 of the Small Business Act (15 U.S.C. 638),
the Federal agency may use those remaining funds in fiscal year 2027
for the SBIR or STTR program, as applicable, of the Federal agency.
SEC. 10. EXTENSION OF SBIR AND STTR PROGRAMS AND ACTIVITIES.
(a) Phase Flexibility.--Section 9(cc) of the Small Business Act (15
U.S.C. 638(cc)) is amended--
(1) by striking ``During fiscal years 2012 through 2025''
and inserting ``Until September 30, 2031'';
(2) by striking ``, and the Department of Education'' and
inserting ``the Department of Energy, the National Aeronautics
and Space Administration, and the Department of Education'';
and
(3) by inserting ``or STTR program'' after ``SBIR program''
each place that term appears.
(b) Commercialization Readiness Program for Civilian Agencies Pilot
Program.--Section 9(gg)(7) of the Small Business Act (15 U.S.C.
638(gg)(7)) is amended by striking ``2025'' and inserting ``2031''.
(c) Accelerated Awards.--Section 9(hh)(2)(C) of the Small Business
Act (15 U.S.C. 638(hh)(2)(C)) is amended by striking ``September 30,
2025'' and inserting ``September 30, 2031''.
(d) Phase 0 Pilot Program.--Section 9(jj)(7) of the Small Business
Act (15 U.S.C. 638(jj)(7)) is amended by striking ``2025'' and
inserting ``2031''.
(e) Administrative Assistance.--Section 9(mm)(1) of the Small
Business Act (15 U.S.C. 638(mm)(1)) is amended by striking ``September
30, 2025'' and inserting ``September 30, 2031''.
(f) Increased Minimum Performance Standards.--Section 9(qq)(3)(I)
of the Small Business Act (15 U.S.C. 638(qq)(3)(I)) is amended by
striking ``September 30, 2025'' and inserting ``September 30, 2031''.
(g) Commercialization Assistance Pilot Programs.--Section 9(uu)(3)
of the Small Business Act (15 U.S.C. 638(uu)(3)) is amended by striking
``September 30, 2025'' and inserting ``September 30, 2031''.
(h) Due Diligence Program.--Section 9(vv)(3)(C) of the Small
Business Act (15 U.S.C. 638(vv)(3)(C)) is amended by striking
``September 30, 2025'' and inserting ``September 30, 2031''.
(i) STTR Participation of Military Research and Educational
Institutions Pilot Program.--Section 9(yy)(2) of the Small Business Act
(15 U.S.C. 638(yy)(2)) is amended by striking ``September 30, 2025''
and inserting ``September 30, 2031''.
(j) Budget Calculation Pilot Program.--Section 9(zz)(3) of the
Small Business Act (15 U.S.C. 638(zz)(3)) is amended by striking
``September 30, 2025'' and inserting ``September 30, 2031''.
(k) Special Operations Command Pilot.--Section 851(e) of the
National Defense Authorization Act for Fiscal Year 2020 (10 U.S.C. 4901
note) is amended by striking ``September 30, 2025'' and inserting
``September 30, 2031''.
(l) Government Accountability Office Mandate Sunset.--The National
Defense Authorization Act for Fiscal Year 2012 (Public Law 112-81) is
amended by striking section 5142 (15 U.S.C. 638a).
<all>