[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 3971 Enrolled Bill (ENR)]
S.3971
One Hundred Nineteenth Congress
of the
United States of America
AT THE SECOND SESSION
Begun and held at the City of Washington on Saturday,
the third day of January, two thousand and twenty six
An Act
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).
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.