[Congressional Record Volume 155, Number 104 (Monday, July 13, 2009)]
[Senate]
[Pages S7426-S7439]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                 SBIR/STTR REAUTHORIZATION ACT OF 2009

  Mr. REID. Mr. President, I ask unanimous consent that the Senate 
proceed to the consideration of Calendar No. 94, S. 1233.
  The PRESIDING OFFICER. The clerk will report the bill by title.
  The assistant legislative clerk read as follows:

       A bill (S. 1233) to reauthorize and improve the SBIR and 
     STTR programs, and for other purposes.

  There being no objection, the Senate proceeded to consider the bill, 
which had been reported from the Committee on Small Business and 
Entrepreneurship, with an amendment to strike all after the enacting 
clause and insert in lieu thereof the following:

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``SBIR/STTR Reauthorization 
     Act of 2009''.

     SEC. 2. TABLE OF CONTENTS.

       The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. Definitions.

         TITLE I--REAUTHORIZATION OF THE SBIR AND STTR PROGRAMS

Sec. 101. Extension of termination dates.
Sec. 102. Status of the Office of Technology.
Sec. 103. SBIR allocation increase.
Sec. 104. STTR allocation increase.
Sec. 105. SBIR and STTR award levels.
Sec. 106. Agency and program collaboration.
Sec. 107. Elimination of Phase II invitations.
Sec. 108. Majority-venture investments in SBIR firms.
Sec. 109. SBIR and STTR special acquisition preference.
Sec. 110. Collaborating with Federal laboratories and research and 
              development centers.
Sec. 111. Notice requirement.

          TITLE II--OUTREACH AND COMMERCIALIZATION INITIATIVES

Sec. 201. Rural and State outreach.
Sec. 202. SBIR-STEM Workforce Development Grant Pilot Program.
Sec. 203. Technical assistance for awardees.
Sec. 204. Commercialization program at Department of Defense.
Sec. 205. Commercialization Pilot Program for civilian agencies.
Sec. 206. Nanotechnology initiative.
Sec. 207. Accelerating cures.

                  TITLE III--OVERSIGHT AND EVALUATION

Sec. 301. Streamlining annual evaluation requirements.
Sec. 302. Data collection from agencies for SBIR.
Sec. 303. Data collection from agencies for STTR.
Sec. 304. Public database.
Sec. 305. Government database.
Sec. 306. Accuracy in funding base calculations.
Sec. 307. Continued evaluation by the National Academy of Sciences.
Sec. 308. Technology insertion reporting requirements.
Sec. 309. Intellectual property protections.

                      TITLE IV--POLICY DIRECTIVES

Sec. 401. Conforming amendments to the SBIR and the STTR Policy 
              Directives.

     SEC. 3. DEFINITIONS.

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

         TITLE I--REAUTHORIZATION OF THE SBIR AND STTR PROGRAMS

     SEC. 101. EXTENSION OF TERMINATION DATES.

       (a) SBIR.--Section 9(m) of the Small Business Act (15 
     U.S.C. 638(m)) is amended by striking ``2008'' and inserting 
     ``2023''.
       (b) STTR.--Section 9(n)(1)(A) of the Small Business Act (15 
     U.S.C. 638(n)(1)(A)) is amended by striking ``2009'' and 
     inserting ``2023''.

     SEC. 102. STATUS OF THE OFFICE OF TECHNOLOGY.

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

     SEC. 103. SBIR ALLOCATION INCREASE.

       Section 9(f) of the Small Business Act (15 U.S.C. 638(f)) 
     is amended--
       (1) in paragraph (1)--
       (A) in the matter preceding subparagraph (A), by striking 
     ``Each'' and inserting ``Except as provided in paragraph 
     (2)(C), each'';
       (B) in subparagraph (B), by striking ``and'' at the end; 
     and
       (C) by striking subparagraph (C) and inserting the 
     following:
       ``(C) not less than 2.5 percent of such budget in each of 
     fiscal years 2009 and 2010;
       ``(D) not less than 2.6 percent of such budget in fiscal 
     year 2011;
       ``(E) not less than 2.7 percent of such budget in fiscal 
     year 2012;
       ``(F) not less than 2.8 percent of such budget in fiscal 
     year 2013;
       ``(G) not less than 2.9 percent of such budget in fiscal 
     year 2014;
       ``(H) not less than 3.0 percent of such budget in fiscal 
     year 2015;
       ``(I) not less than 3.1 percent of such budget in fiscal 
     year 2016;
       ``(J) not less than 3.2 percent of such budget in fiscal 
     year 2017;
       ``(K) not less than 3.3 percent of such budget in fiscal 
     year 2018;
       ``(L) not less than 3.4 percent of such budget in fiscal 
     year 2019; and
       ``(M) not less than 3.5 percent of such budget in fiscal 
     year 2020 and each fiscal year thereafter,''; and
       (2) in paragraph (2)--
       (A) by redesignating subparagraphs (A) and (B) as clauses 
     (i) and (ii), respectively, and adjusting the margins 
     accordingly;
       (B) by striking ``A Federal agency'' and inserting the 
     following:
       ``(A) In general.--A Federal agency''; and
       (C) by adding at the end the following:
       ``(B) Department of defense and department of energy.--For 
     the Department of Defense and the Department of Energy, to 
     the greatest extent practicable, the percentage of the 
     extramural budget in excess of 2.5 percent required to be 
     expended with small business concerns under subparagraphs (D) 
     through (M) of paragraph (1)--
       ``(i) may not be used for new Phase I or Phase II awards; 
     and
       ``(ii) shall be used for activities that further the 
     readiness levels of technologies developed under Phase II 
     awards, including conducting testing and evaluation to 
     promote the transition of such technologies into commercial 
     or defense products, or systems furthering the mission needs 
     of the Department of Defense or the Department of Energy, as 
     the case may be.''.

     SEC. 104. STTR ALLOCATION INCREASE.

       Section 9(n)(1)(B) of the Small Business Act (15 U.S.C. 
     638(n)(1)(B)) is amended--
       (1) in clause (i), by striking ``and'' at the end;
       (2) in clause (ii), by striking ``thereafter.'' and 
     inserting ``through fiscal year 2010;''; and
       (3) by adding at the end the following:
       ``(iii) 0.4 percent for fiscal years 2011 and 2012;
       ``(iv) 0.5 percent for fiscal years 2013 and 2014; and
       ``(v) 0.6 percent for fiscal year 2015 and each fiscal year 
     thereafter.''.

     SEC. 105. SBIR AND STTR AWARD LEVELS.

       (a) SBIR Adjustments.--Section 9(j)(2)(D) of the Small 
     Business Act (15 U.S.C. 638(j)(2)(D)) is amended--
       (1) by striking ``$100,000'' and inserting ``$150,000''; 
     and
       (2) by striking ``$750,000'' and inserting ``$1,000,000''.
       (b) STTR Adjustments.--Section 9(p)(2)(B)(ix) of the Small 
     Business Act (15 U.S.C. 638(p)(2)(B)(ix)) is amended--
       (1) by striking ``$100,000'' and inserting ``$150,000''; 
     and
       (2) by striking ``$750,000'' and inserting ``$1,000,000''.
       (c) Triennial Adjustments.--Section 9 of the Small Business 
     Act (15 U.S.C. 638) is amended--
       (1) in subsection (j)(2)(D)--
       (A) by striking ``5 years'' and inserting ``3 years''; and
       (B) by striking ``and programmatic considerations''; and
       (2) in subsection (p)(2)(B)(ix) by striking ``greater or 
     lesser amounts to be awarded at the discretion of the 
     awarding agency,'' and inserting ``an adjustment for 
     inflation of such amounts once every 3 years,''.
       (d) Limitation on Certain Awards.--Section 9 of the Small 
     Business Act (15 U.S.C. 638) is amended by adding at the end 
     the following:
       ``(aa) Limitation on Certain Awards.--
       ``(1) Limitation.--No Federal agency may issue an award 
     under the SBIR program or the STTR program if the size of the 
     award exceeds

[[Page S7427]]

     the award guidelines established under this section by more 
     than 50 percent.
       ``(2) Maintainance of information.--Participating agencies 
     shall maintain information on awards exceeding the guidelines 
     established under this section, including--
       ``(A) the amount of each award;
       ``(B) a justification for exceeding the award amount;
       ``(C) the identity and location of each award recipient; 
     and
       ``(D) whether a recipient has received any venture capital 
     investment and, if so, whether the recipient is majority-
     owned and controlled by multiple venture capital companies.
       ``(3) Reports.--The Administrator shall include the 
     information described in paragraph (2) in the annual report 
     of the Administrator to Congress.
       ``(4) Rule of construction.--Nothing in this subsection 
     shall be construed to prevent a Federal agency from 
     supplementing an award under the SBIR program or the STTR 
     program using funds of the Federal agency that are not part 
     of the SBIR program or the STTR program of the Federal 
     agency.''.

     SEC. 106. AGENCY AND PROGRAM COLLABORATION.

       Section 9 of the Small Business Act (15 U.S.C. 638), as 
     amended by this Act, is amended by adding at the end the 
     following:
       ``(bb) Subsequent Phases.--
       ``(1) Agency collaboration.--A small business concern that 
     received an award from a Federal agency under this section 
     shall be eligible to receive an award for a subsequent phase 
     from another Federal agency, if the head of each relevant 
     Federal agency or the relevant component of the Federal 
     agency makes a written determination that the topics of the 
     relevant awards are the same and both agencies report the 
     awards to the Administrator for inclusion in the public 
     database under subsection (k).
       ``(2) SBIR and sttr collaboration.--A small business 
     concern which received an award under this section under the 
     SBIR program or the STTR program may receive an award under 
     this section for a subsequent phase in either the SBIR 
     program or the STTR program and the participating agency or 
     agencies shall report the awards to the Administrator for 
     inclusion in the public database under subsection (k).''.

     SEC. 107. ELIMINATION OF PHASE II INVITATIONS.

       (a) In General.--Section 9(e) of the Small Business Act (15 
     U.S.C. 638(e)) is amended--
       (1) in paragraph (4)(B), by striking ``to further'' and 
     inserting: ``which shall not include any invitation, pre-
     screening, pre-selection, or down-selection process for 
     eligibility for the second phase, that will further''; and
       (2) in paragraph (6)(B), by striking ``to further develop 
     proposed ideas to'' and inserting ``which shall not include 
     any invitation, pre-screening, pre-selection, or down-
     selection process for eligibility for the second phase, that 
     will further develop proposals that''.
       (b) Technical and Conforming Amendments.--The Small 
     Business Act (15 U.S.C. 638) is amended--
       (1) in section 9--
       (A) in subsection (e)--
       (i) in paragraph (8), by striking ``and'' at the end;
       (ii) in paragraph (9)--

       (I) by striking ``the second or the third phase'' and 
     inserting ``Phase II or Phase III''; and
       (II) by striking the period at the end and inserting a 
     semicolon; and

       (iii) by adding at the end the following:
       ``(10) the term `Phase I' means--
       ``(A) with respect to the SBIR program, the first phase 
     described in paragraph (4)(A); and
       ``(B) with respect to the STTR program, the first phase 
     described in paragraph (6)(A);
       ``(11) the term `Phase II' means--
       ``(A) with respect to the SBIR program, the second phase 
     described in paragraph (4)(B); and
       ``(B) with respect to the STTR program, the second phase 
     described in paragraph (6)(B); and
       ``(12) the term `Phase III' means--
       ``(A) with respect to the SBIR program, the third phase 
     described in paragraph (4)(C); and
       ``(B) with respect to the STTR program, the third phase 
     described in paragraph (6)(C).'';
       (B) in subsection (j)--
       (i) in paragraph (1)(B), by striking ``phase two'' and 
     inserting ``Phase II'';
       (ii) in paragraph (2)--

       (I) in subparagraph (B)--

       (aa) by striking ``the third phase'' each place it appears 
     and inserting ``Phase III''; and
       (bb) by striking ``the second phase'' and inserting ``Phase 
     II'';

       (II) in subparagraph (D)--

       (aa) by striking ``the first phase'' and inserting ``Phase 
     I''; and
       (bb) by striking ``the second phase'' and inserting ``Phase 
     II'';

       (III) in subparagraph (F), by striking ``the third phase'' 
     and inserting ``Phase III'';
       (IV) in subparagraph (G)--

       (aa) by striking ``the first phase'' and inserting ``Phase 
     I''; and
       (bb) by striking ``the second phase'' and inserting ``Phase 
     II''; and

       (V) in subparagraph (H)--

       (aa) by striking ``the first phase'' and inserting ``Phase 
     I'';
       (bb) by striking ``second phase'' each place it appears and 
     inserting ``Phase II''; and
       (cc) by striking ``third phase'' and inserting ``Phase 
     III''; and
       (iii) in paragraph (3)--

       (I) in subparagraph (A)--

       (aa) by striking ``the first phase (as described in 
     subsection (e)(4)(A))'' and inserting ``Phase I'';
       (bb) by striking ``the second phase (as described in 
     subsection (e)(4)(B))'' and inserting ``Phase II''; and
       (cc) by striking ``the third phase (as described in 
     subsection (e)(4)(C))'' and inserting ``Phase III''; and

       (II) in subparagraph (B), by striking ``second phase'' and 
     inserting ``Phase II'';

       (C) in subsection (k)--
       (i) by striking ``first phase'' each place it appears and 
     inserting ``Phase I''; and
       (ii) by striking ``second phase'' each place it appears and 
     inserting ``Phase II'';
       (D) in subsection (l)(2)--
       (i) by striking ``the first phase'' and inserting ``Phase 
     I''; and
       (ii) by striking ``the second phase'' and inserting ``Phase 
     II'';
       (E) in subsection (o)(13)--
       (i) in subparagraph (B), by striking ``second phase'' and 
     inserting ``Phase II''; and
       (ii) in subparagraph (C), by striking ``third phase'' and 
     inserting ``Phase III'';
       (F) in subsection (p)--
       (i) in paragraph (2)(B)--

       (I) in clause (vi)--

       (aa) by striking ``the second phase'' and inserting ``Phase 
     II''; and
       (bb) by striking ``the third phase'' and inserting ``Phase 
     III''; and

       (II) in clause (ix)--

       (aa) by striking ``the first phase'' and inserting ``Phase 
     I''; and
       (bb) by striking ``the second phase'' and inserting ``Phase 
     II''; and
       (ii) in paragraph (3)--

       (I) by striking ``the first phase (as described in 
     subsection (e)(6)(A))'' and inserting ``Phase I'';
       (II) by striking ``the second phase (as described in 
     subsection (e)(6)(B))'' and inserting ``Phase II''; and
       (III) by striking ``the third phase (as described in 
     subsection (e)(6)(A))'' and inserting ``Phase III'';

       (G) in subsection (q)(3)--
       (i) in subparagraph (A)--

       (I) in the subparagraph heading, by striking ``First 
     phase'' and inserting ``Phase i''; and
       (II) by striking ``first phase'' and inserting ``Phase I''; 
     and

       (ii) in subparagraph (B)--

       (I) in the subparagraph heading, by striking ``Second 
     phase'' and inserting ``Phase ii''; and
       (II) by striking ``second phase'' and inserting ``Phase 
     II'';

       (H) in subsection (r)--
       (i) in the subsection heading, by striking ``Third Phase'' 
     and inserting ``Phase III'';
       (ii) in paragraph (1)--

       (I) in the first sentence--

       (aa) by striking ``for the second phase'' and inserting 
     ``for Phase II'';
       (bb) by striking ``third phase'' and inserting ``Phase 
     III''; and
       (cc) by striking ``second phase period'' and inserting 
     ``Phase II period''; and

       (II) in the second sentence--

       (aa) by striking ``second phase'' and inserting ``Phase 
     II''; and
       (bb) by striking ``third phase'' and inserting ``Phase 
     III''; and
       (iii) in paragraph (2), by striking ``third phase'' and 
     inserting ``Phase III''; and
       (I) in subsection (u)(2)(B), by striking ``the first 
     phase'' and inserting ``Phase I'';
       (2) in section 34--
       (A) in subsection (c)(2)(B)(ii), by striking ``first phase 
     and second phase SBIR awards'' and inserting ``Phase I and 
     Phase II SBIR awards (as defined in section 9(e))''; and
       (B) in subsection (e)(2)(A)--
       (i) in clause (i), by striking ``first phase awards'' and 
     all that follows and inserting ``Phase I awards (as defined 
     in section 9(e));''; and
       (ii) by striking ``first phase'' each place it appears and 
     inserting ``Phase I''; and
       (3) in section 35(c)(2)(B)(vii), by striking ``third 
     phase'' and inserting ``Phase III''.

     SEC. 108. MAJORITY-VENTURE INVESTMENTS IN SBIR FIRMS.

       (a) In General.--Section 9 of the Small Business Act (15 
     U.S.C. 638), as amended by this Act, is amended by adding at 
     the end the following:
       ``(cc) Majority-venture Investments in SBIR Firms.--
       ``(1) Authority and determination.--
       ``(A) In general.--Upon a written determination provided 
     not later than 30 days in advance to the Administrator and to 
     the Committee on Small Business and Entrepreneurship of the 
     Senate and the Committee on Small Business of the House of 
     Representatives--
       ``(i) the Director of the National Institutes of Health may 
     award not more than 18 percent of the SBIR funds of the 
     National Institutes of Health allocated in accordance with 
     this Act, in the first full fiscal year beginning after the 
     date of enactment of this subsection, and each fiscal year 
     thereafter, to small business concerns that are owned in 
     majority part by venture capital companies and that satisfy 
     the qualification requirements under paragraph (2) through 
     competitive, merit-based procedures that are open to all 
     eligible small business concerns; and
       ``(ii) the head of any other Federal agency participating 
     in the SBIR program may award not more than 8 percent of the 
     SBIR funds of the Federal agency allocated in accordance with 
     this Act, in the first full fiscal year beginning after the 
     date of enactment of this subsection, and each fiscal year 
     thereafter, to small business concerns that are majority 
     owned by venture capital companies and that satisfy the 
     qualification requirements under paragraph (2) through 
     competitive, merit-based procedures that are open to all 
     eligible small business concerns.
       ``(B) Determination.--A written determination made under 
     subparagraph (A) shall explain how the use of the authority 
     under that subparagraph will induce additional venture 
     capital funding of small business innovations, substantially 
     contribute to the mission of the funding Federal agency, 
     demonstrate a need for public research, and otherwise fulfill 
     the capital

[[Page S7428]]

     needs of small business concerns for additional financing for 
     the SBIR project.
       ``(2) Qualification requirements.--The Administrator shall 
     establish requirements relating to the affiliation by small 
     business concerns with venture capital companies, which may 
     not exclude a United States small business concern from 
     participation in the program under paragraph (1) on the basis 
     that the small business concern is owned in majority part by, 
     or controlled by, more than 1 United States venture capital 
     company, so long as no single venture capital company owns 
     more than 49 percent of the small business concern.
       ``(3) Registration.--A small business concern that is 
     majority owned and controlled by multiple venture capital 
     companies and qualified for participation in the program 
     authorized under paragraph (1) shall--
       ``(A) register with the Administrator on the date that the 
     small business concern submits an application for an award 
     under the SBIR program; and
       ``(B) indicate whether the small business concern is 
     registered under subparagraph (A) in any SBIR proposal.
       ``(4) Compliance.--A Federal agency described in paragraph 
     (1) shall collect data regarding the number and dollar 
     amounts of phase I, phase II, and all other categories of 
     awards under the SBIR program, and the Administrator shall 
     report on the data and the compliance of each such Federal 
     agency with the maximum amounts under paragraph (1) as part 
     of the annual report by the Administration under subsection 
     (b)(7).
       ``(5) Enforcement.--If a Federal agency awards more than 
     the amount authorized under paragraph (1) for a purpose 
     described in paragraph (1), the amount awarded in excess of 
     the amount authorized under paragraph (1) shall be 
     transferred to the funds for general SBIR programs from the 
     non-SBIR research and development funds of the Federal agency 
     within 60 days of the date on which the Federal agency 
     awarded more than the amount authorized under paragraph (1) 
     for a purpose described in paragraph (1).''.
       (b) Technical and Conforming Amendment.--Section 3 of the 
     Small Business Act (15 U.S.C. 632) is amended by adding at 
     the end the following:
       ``(t) Venture Capital Company.--In this Act, the term 
     `venture capital company' means an entity described in clause 
     (i), (v), or (vi) of section 121.103(b)(5) of title 13, Code 
     of Federal Regulations (or any successor thereto).''.
       (c) Assistance for Determining Affiliates.--Not later than 
     30 days after the date of enactment of this Act, the 
     Administrator shall post on the website of the Administration 
     (with a direct link displayed on the homepage of the website 
     of the Administration or the SBIR website of the 
     Administration)--
       (1) a clear explanation of the SBIR affiliation rules under 
     part 121 of title 13, Code of Federal Regulations; and
       (2) contact information for officers or employees of the 
     Administration who--
       (A) upon request, shall review an issue relating to the 
     rules described in paragraph (1); and
       (B) shall respond to a request under subparagraph (A) not 
     later than 20 business days after the date on which the 
     request is received.

     SEC. 109. SBIR AND STTR SPECIAL ACQUISITION PREFERENCE.

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

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

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

     SEC. 111. NOTICE REQUIREMENT.

       The head of any Federal agency involved in a case or 
     controversy before any Federal judicial or administrative 
     tribunal concerning the SBIR program or the STTR program 
     shall provide timely notice, as determined by the 
     Administrator, of the case or controversy to the 
     Administrator.

          TITLE II--OUTREACH AND COMMERCIALIZATION INITIATIVES

     SEC. 201. RURAL AND STATE OUTREACH.

       (a) Outreach.--Section 9 of the Small Business Act (15 
     U.S.C. 638) is amended by inserting after subsection (r) the 
     following:
       ``(s) Outreach.--
       ``(1) Definition of eligible state.--In this subsection, 
     the term `eligible State' means a State--
       ``(A) for which the total value of contracts awarded to the 
     State under this section during the most recent fiscal year 
     for which data is available was less than $5,000,000; and
       ``(B) that certifies to the Administrator that the State 
     will, upon receipt of assistance under this subsection, 
     provide matching funds from non-Federal sources in an amount 
     that is not less than 50 percent of the amount provided under 
     this subsection.
       ``(2) Program authority.--Of amounts made available to 
     carry out this section for each of fiscal years 2010 through 
     2014, the Administrator may expend with eligible States not 
     more than $5,000,000 in each such fiscal year in order to 
     increase the participation of small business concerns located 
     in those States in the programs under this section.
       ``(3) Amount of assistance.--The amount of assistance 
     provided to an eligible State under this subsection in any 
     fiscal year--
       ``(A) shall be equal to not more than 50 percent of the 
     total amount of matching funds from non-Federal sources 
     provided by the State; and
       ``(B) shall not exceed $100,000.
       ``(4) Use of assistance.--Assistance provided to an 
     eligible State under this subsection shall be used by the 
     State, in consultation with State and local departments and 
     agencies, for programs and activities to increase the 
     participation of small business concerns located in the State 
     in the programs under this section, including--
       ``(A) the establishment of quantifiable performance goals, 
     including goals relating to--
       ``(i) the number of program awards under this section made 
     to small business concerns in the State; and
       ``(ii) the total amount of Federal research and development 
     contracts awarded to small business concerns in the State;
       ``(B) the provision of competition outreach support to 
     small business concerns in the State that are involved in 
     research and development; and
       ``(C) the development and dissemination of educational and 
     promotional information relating to the programs under this 
     section to small business concerns in the State.''.
       (b) Federal and State Program Extension.--Section 34 of the 
     Small Business Act (15 U.S.C. 657d) is amended--
       (1) in subsection (h), by striking ``2001 through 2005'' 
     each place it appears and inserting ``2010 through 2014''; 
     and
       (2) in subsection (i), by striking ``2005'' and inserting 
     ``2014''.
       (c) Matching Requirements.--Section 34(e)(2) of the Small 
     Business Act (15 U.S.C. 657d(e)(2)) is amended--
       (1) in subparagraph (A)--
       (A) in clause (i), by striking ``50 cents'' and inserting 
     ``35 cents''; and
       (B) in clause (iii), by striking ``75 cents'' and inserting 
     ``50 cents'';
       (2) in subparagraph (B), by striking ``50 cents'' and 
     inserting ``35 cents'';
       (3) by redesignating subparagraphs (C) and (D) as 
     subparagraphs (D) and (E), respectively; and
       (4) by inserting after subparagraph (B) the following:
       ``(C) Rural areas.--
       ``(i) In general.--Except as provided in clause (ii), the 
     non-Federal share of the cost of the activity carried out 
     using an award or under a cooperative agreement under this 
     section shall be 35 cents for each Federal dollar that will 
     be directly allocated by a recipient described in paragraph 
     (A) to serve small business concerns located in a rural area.
       ``(ii) Enhanced rural awards.--For a recipient located in a 
     rural area that is located in a State described in 
     subparagraph (A)(i), the non-Federal share of the cost of the 
     activity carried out using an award or under a cooperative 
     agreement under this section shall be 15 cents for each 
     Federal dollar that will be directly allocated by a recipient 
     described in paragraph (A) to serve small business concerns 
     located in the rural area.
       ``(iii) Definition of rural area.--In this subparagraph, 
     the term `rural area' has the meaning given that term in 
     section 1393(a)(2)) of the Internal Revenue Code of 1986.''.

     SEC. 202. SBIR-STEM WORKFORCE DEVELOPMENT GRANT PILOT 
                   PROGRAM.

       (a) Pilot Program Established.--From amounts made available 
     to carry out this section, the Administrator shall establish 
     a SBIR-

[[Page S7429]]

     STEM Workforce Development Grant Pilot Program to encourage 
     the business community to provide workforce development 
     opportunities for college students, in the fields of science, 
     technology, engineering, and math (in this section referred 
     to as ``STEM college students''), by providing a SBIR bonus 
     grant.
       (b) Eligible Entities Defined.--In this section the term 
     ``eligible entity'' means a grantee receiving a grant under 
     the SBIR Program on the date of the bonus grant under 
     subsection (a) that provides an internship program for STEM 
     college students.
       (c) Awards.--An eligible entity shall receive a bonus grant 
     equal to 10 percent of either a Phase I or Phase II grant, as 
     applicable, with a total award maximum of not more than 
     $10,000 per year.
       (d) Evaluation.--Following the fourth year of funding under 
     this section, the Administrator shall submit a report to 
     Congress on the results of the SBIR-STEM Workforce 
     Development Grant Pilot Program.
       (e) Authorization of Appropriations.--There are authorized 
     to be appropriated to carry out this section--
       (1) $1,000,000 for fiscal year 2011;
       (2) $1,000,000 for fiscal year 2012;
       (3) $1,000,000 for fiscal year 2013;
       (4) $1,000,000 for fiscal year 2014; and
       (5) $1,000,000 for fiscal year 2015.

     SEC. 203. TECHNICAL ASSISTANCE FOR AWARDEES.

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

     SEC. 204. COMMERCIALIZATION PROGRAM AT DEPARTMENT OF DEFENSE.

       Section 9(y) of the Small Business Act (15 U.S.C. 638(y)) 
     is amended--
       (1) in the subsection heading, by striking ``Pilot'';
       (2) by striking ``Pilot'' each place that term appears;
       (3) in paragraph (1)--
       (A) by inserting ``or Small Business Technology Transfer 
     Program'' after ``Small Business Innovation Research 
     Program''; and
       (B) by adding at the end the following: ``The authority to 
     create and administer a Commercialization Program under this 
     subsection may not be construed to eliminate or replace any 
     other SBIR program or STTR program that enhances the 
     insertion or transition of SBIR or STTR technologies, 
     including any such program in effect on the date of enactment 
     of the National Defense Authorization Act for Fiscal Year 
     2006 (Public Law 109-163; 119 Stat. 3136).'';
       (4) in paragraph (2), by inserting ``or Small Business 
     Technology Transfer Program'' after ``Small Business 
     Innovation Research Program'';
       (5) in paragraph (4), by inserting ``or Small Business 
     Technology Transfer Program'' after ``Small Business 
     Innovation Research Program'';
       (6) by striking paragraph (6);
       (7) by redesignating paragraph (5) as paragraph (7); and
       (8) by inserting after paragraph (4) the following:
       ``(5) Insertion incentives.--For any contract with a value 
     of not less than $100,000,000, the Secretary of Defense is 
     authorized to--
       ``(A) establish goals for the transition of Phase III 
     technologies in subcontracting plans; and
       ``(B) require a prime contractor on such a contract to 
     report the number and dollar amount of contracts entered into 
     by that prime contractor for Phase III SBIR or STTR projects.
       ``(6) Goal for sbir and sttr technology insertion.--The 
     Secretary of Defense shall--
       ``(A) set a goal to increase the number of Phase II SBIR 
     contracts and the number of Phase II STTR contracts awarded 
     by that Secretary that lead to technology transition into 
     programs of record or fielded systems;
       ``(B) use incentives in effect on the date of enactment of 
     the SBIR/STTR Reauthorization Act of 2009, or create new 
     incentives, to encourage agency program managers and prime 
     contractors to meet the goal under subparagraph (A); and
       ``(C) include in the annual report to Congress the 
     percentage of contracts described in subparagraph (A) awarded 
     by that Secretary, and information on the ongoing status of 
     projects funded through the Commercialization Program and 
     efforts to transition these technologies into programs of 
     record or fielded systems.''.

     SEC. 205. COMMERCIALIZATION PILOT PROGRAM FOR CIVILIAN 
                   AGENCIES.

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

     SEC. 206. NANOTECHNOLOGY INITIATIVE.

       (a) In General.--Section 9 of the Small Business Act (15 
     U.S.C. 638), as amended by this Act, is amended by adding at 
     the end the following:
       ``(ff) Nanotechnology Initiative.--Each Federal agency 
     participating in the SBIR or STTR program shall encourage the 
     submission of applications for support of nanotechnology 
     related projects to such program.''.
       (b) Sunset.--Effective October 1, 2014, subsection (ff) of 
     the Small Business Act, as added by subsection (a) of this 
     section, is repealed.

     SEC. 207. ACCELERATING CURES.

       The Small Business Act (15 U.S.C. 631 et seq.) is amended--
       (1) by redesignating section 44 as section 45; and
       (2) by inserting after section 43 the following:

     ``SEC. 44. SMALL BUSINESS INNOVATION RESEARCH PROGRAM.

       ``(a) NIH Cures Pilot.--
       ``(1) Establishment.--An independent advisory board shall 
     be established at the National Academy of Sciences (in this 
     section referred to as the `advisory board') to conduct 
     periodic evaluations of the SBIR program (as that term is 
     defined in section 9) of each of the National Institutes of 
     Health (referred to in this section as the `NIH') institutes 
     and centers for the purpose of improving the management of 
     the SBIR program through data-driven assessment.
       ``(2) Membership.--
       ``(A) In general.--The advisory board shall consist of--
       ``(i) the Director of the NIH;
       ``(ii) the Director of the SBIR program of the NIH;
       ``(iii) senior NIH agency managers, selected by the 
     Director of NIH;
       ``(iv) industry experts, selected by the Council of the 
     National Academy of Sciences in consultation with the 
     Associate Administrator for Technology of the Administration 
     and the Director of the Office of Science and Technology 
     Policy; and
       ``(v) owners or operators of small business concerns that 
     have received an award under the SBIR program of the NIH, 
     selected by the Associate Administrator for Technology of the 
     Administration.
       ``(B) Number of members.--The total number of members 
     selected under clauses (iii), (iv), and (v) of subparagraph 
     (A) shall not exceed 10.
       ``(C) Equal representation.--The total number of members of 
     the advisory board selected under clauses (i), (ii), (iii), 
     and (iv) of subparagraph (A) shall be equal to the number of 
     members of the advisory board selected under subparagraph 
     (A)(v).
       ``(b) Addressing Data Gaps.--In order to enhance the 
     evidence-base guiding SBIR program

[[Page S7430]]

     decisions and changes, the Director of the SBIR program of 
     the NIH shall address the gaps and deficiencies in the data 
     collection concerns identified in the 2007 report of the 
     National Academies of Science entitled `An Assessment of the 
     Small Business Innovation Research Program at the NIH'.
       ``(c) Pilot Program.--
       ``(1) In general.--The Director of the SBIR program of the 
     NIH may initiate a pilot program, under a formal mechanism 
     for designing, implementing, and evaluating pilot programs, 
     to spur innovation and to test new strategies that may 
     enhance the development of cures and therapies.
       ``(2) Considerations.--The Director of the SBIR program of 
     the NIH may consider conducting a pilot program to include 
     individuals with successful SBIR program experience in study 
     sections, hiring individuals with small business development 
     experience for staff positions, separating the commercial and 
     scientific review processes, and examining the impact of the 
     trend toward larger awards on the overall program.
       ``(d) Report to Congress.--The Director of the NIH shall 
     submit an annual report to Congress and the advisory board on 
     the activities of the SBIR program of the NIH under this 
     section.
       ``(e) SBIR Grants and Contracts.--
       ``(1) In general.--In awarding grants and contracts under 
     the SBIR program of the NIH each SBIR program manager shall 
     place an emphasis on applications that identify products and 
     services that may enhance the development of cures and 
     therapies.
       ``(2) Examination of commercialization and other metrics.--
     The advisory board shall evaluate the implementation of the 
     requirement under paragraph (1) by examining increased 
     commercialization and other metrics, to be determined and 
     collected by the SBIR program of the NIH.
       ``(3) Phase i and ii.--To the greatest extent practicable, 
     the Director of the SBIR program of the NIH shall reduce the 
     time period between Phase I and Phase II funding of grants 
     and contracts under the SBIR program of the NIH to 6 months.
       ``(f) Limit.--Not more than a total of 1 percent of the 
     extramural budget (as defined in section 9 of the Small 
     Business Act (15 U.S.C. 638)) of the NIH for research or 
     research and development may be used for the pilot program 
     under subsection (c) and to carry out subsection (e).
       ``(g) Sunset.--This section shall cease to be effective on 
     the date that is 5 years after the date of enactment of the 
     SBIR/STTR Reauthorization Act of 2009.''.

                  TITLE III--OVERSIGHT AND EVALUATION

     SEC. 301. STREAMLINING ANNUAL EVALUATION REQUIREMENTS.

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

     SEC. 302. DATA COLLECTION FROM AGENCIES FOR SBIR.

       Section 9(g) of the Small Business Act (15 U.S.C. 638(g)) 
     is amended--
       (1) by striking paragraph (10);
       (2) by redesignating paragraphs (8) and (9) as paragraphs 
     (9) and (10), respectively;
       (3) by inserting after paragraph (7) the following:
       ``(8) collect annually, and maintain in a common format in 
     accordance with the simplified reporting requirements under 
     subsection (v), such information from awardees as is 
     necessary to assess the SBIR program, including information 
     necessary to maintain the database described in subsection 
     (k), including--
       ``(A) whether an awardee--
       ``(i) has venture capital or is majority owned and 
     controlled by multiple venture capital firms, and, if so--

       ``(I) the amount of venture capital that the awardee has 
     received as of the date of the award; and
       ``(II) the amount of additional capital that the awardee 
     has invested in the SBIR technology;

       ``(ii) has an investor that--

       ``(I) is an individual who is not a citizen of the United 
     States or a lawful permanent resident of the United States, 
     and if so, the name of any such individual; or
       ``(II) is a person that is not an individual and is not 
     organized under the laws of a State or the United States, and 
     if so the name of any such person;

       ``(iii) is owned by a woman or has a woman as a principal 
     investigator;
       ``(iv) is owned by a socially or economically disadvantaged 
     individual or has a socially or economically disadvantaged 
     individual as a principal investigator;
       ``(v) received assistance under the FAST program under 
     section 34 or the outreach program under subsection (s);
       ``(vi) is a faculty member or a student of an institution 
     of higher education, as that term is defined in section 101 
     of the Higher Education Act of 1965 (20 U.S.C. 1001); or
       ``(vii) is located in a State described in subsection 
     (u)(3); and
       ``(B) a justification statement from the agency, if an 
     awardee receives an award in an amount that is more than the 
     award guidelines under this section;''; and
       (4) in paragraph (10), as so redesignated, by adding 
     ``and'' at the end.

     SEC. 303. DATA COLLECTION FROM AGENCIES FOR STTR.

       Section 9(o) of the Small Business Act (15 U.S.C. 638(o)) 
     is amended--
       (1) by striking paragraph (9) and inserting the following:
       ``(9) collect annually, and maintain in a common format in 
     accordance with the simplified reporting requirements under 
     subsection (v), such information from applicants and awardees 
     as is necessary to assess the STTR program outputs and 
     outcomes, including information necessary to maintain the 
     database described in subsection (k), including--
       ``(A) whether an applicant or awardee--
       ``(i) has venture capital or is majority owned and 
     controlled by multiple venture capital firms, and, if so--

       ``(I) the amount of venture capital that the applicant or 
     awardee has received as of the date of the application or 
     award, as applicable; and
       ``(II) the amount of additional capital that the applicant 
     or awardee has invested in the SBIR technology;

       ``(ii) has an investor that--

       ``(I) is an individual who is not a citizen of the United 
     States or a lawful permanent resident of the United States, 
     and if so, the name of any such individual; or
       ``(II) is a person that is not an individual and is not 
     organized under the laws of a State or the United States, and 
     if so the name of any such person;

       ``(iii) is owned by a woman or has a woman as a principal 
     investigator;
       ``(iv) is owned by a socially or economically disadvantaged 
     individual or has a socially or economically disadvantaged 
     individual as a principal investigator;
       ``(v) received assistance under the FAST program under 
     section 34 or the outreach program under subsection (s);
       ``(vi) is a faculty member or a student of an institution 
     of higher education, as that term is defined in section 101 
     of the Higher Education Act of 1965 (20 U.S.C. 1001); or
       ``(vii) is located in a State in which the total value of 
     contracts awarded to small business concerns under all STTR 
     programs is less than the total value of contracts awarded to 
     small business concerns in a majority of other States, as 
     determined by the Administrator in biennial fiscal years, 
     beginning with fiscal year 2008, based on the most recent 
     statistics compiled by the Administrator; and
       ``(B) if an awardee receives an award in an amount that is 
     more than the award guidelines under this section, a 
     statement from the agency that justifies the award amount;'';
       (2) in paragraph (14), by adding ``and'' at the end;
       (3) by striking paragraph (15); and
       (4) by redesignating paragraph (16) as paragraph (15).

     SEC. 304. PUBLIC DATABASE.

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

     SEC. 305. GOVERNMENT DATABASE.

       Section 9(k)(2) of the Small Business Act (15 U.S.C. 
     638(k)(2)) is amended--
       (1) by redesignating subparagraphs (C), (D), and (E) as 
     subparagraphs (D), (E), and (F), respectively;

[[Page S7431]]

       (2) by inserting after subparagraph (B) the following:
       ``(C) includes, for each awardee--
       ``(i) the name, size, location, and any identifying number 
     assigned to the awardee by the Administrator;
       ``(ii) whether the awardee has venture capital, and, if 
     so--

       ``(I) the amount of venture capital as of the date of the 
     award;
       ``(II) the percentage of ownership of the awardee held by a 
     venture capital firm, including whether the awardee is 
     majority owned and controlled by multiple venture capital 
     firms; and
       ``(III) the amount of additional capital that the awardee 
     has invested in the SBIR technology, which information shall 
     be collected on an annual basis;

       ``(iii) the names and locations of any affiliates of the 
     awardee;
       ``(iv) the number of employees of the awardee;
       ``(v) the number of employees of the affiliates of the 
     awardee; and
       ``(vi) the names of, and the percentage of ownership of the 
     awardee held by--

       ``(I) any individual who is not a citizen of the United 
     States or a lawful permanent resident of the United States; 
     or
       ``(II) any person that is not an individual and is not 
     organized under the laws of a State or the United States;''; 
     and

       (3) in subparagraph (D), as so redesignated--
       (A) in clause (ii), by striking ``and'' at the end; and
       (B) by adding at the end, the following:
       ``(iv) whether the applicant was majority owned and 
     controlled by multiple venture capital firms; and
       ``(v) the number of employees of the applicant;''.

     SEC. 306. ACCURACY IN FUNDING BASE CALCULATIONS.

       (a) In General.--Not later than 1 year after the date of 
     enactment of this Act, and every 3 years thereafter, the 
     Comptroller General of the United States shall--
       (1) conduct a fiscal and management audit of the SBIR 
     program and the STTR program for the applicable period to--
       (A) determine whether Federal agencies comply with the 
     expenditure amount requirements under subsections (f)(1) and 
     (n)(1) of section 9 of the Small Business Act (15 U.S.C. 
     638), as amended by this Act;
       (B) assess the extent of compliance with the requirements 
     of section 9(i)(2) of the Small Business Act (15 U.S.C. 
     638(i)(2)) by Federal agencies participating in the SBIR 
     program or the STTR program and the Administration;
       (C) assess whether it would be more consistent and 
     effective to base the amount of the allocations under the 
     SBIR program and the STTR program on a percentage of the 
     research and development budget of a Federal agency, rather 
     than the extramural budget of the Federal agency; and
       (D) determine the portion of the extramural research or 
     research and development budget of a Federal agency that each 
     Federal agency spends for administrative purposes relating to 
     the SBIR program or STTR program, and for what specific 
     purposes, including the portion, if any, of such budget the 
     Federal agency spends for salaries and expenses, travel to 
     visit applicants, outreach events, marketing, and technical 
     assistance; and
       (2) submit a report to the Committee on Small Business and 
     Entrepreneurship of the Senate and the Committee on Small 
     Business of the House of Representatives regarding the audit 
     conducted under paragraph (1), including the assessments 
     required under subparagraphs (B) and (C), and the 
     determination made under subparagraph (D) of paragraph (1).
       (b) Definition of Applicable Period.--In this section, the 
     term ``applicable period'' means--
       (1) for the first report submitted under this section, the 
     period beginning on October 1, 2000, and ending on September 
     30 of the last full fiscal year before the date of enactment 
     of this Act for which information is available; and
       (2) for the second and each subsequent report submitted 
     under this section, the period--
       (A) beginning on October 1 of the first fiscal year after 
     the end of the most recent full fiscal year relating to which 
     a report under this section was submitted; and
       (B) ending on September 30 of the last full fiscal year 
     before the date of the report.

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

       Section 108 of the Small Business Reauthorization Act of 
     2000 (15 U.S.C. 638 note) is amended by adding at the end the 
     following:
       ``(e) Extensions and Enhancements of Authority.--
       ``(1) In general.--Not later than 6 months after the date 
     of enactment of the SBIR/STTR Reauthorization Act of 2009, 
     the head of each agency described in subsection (a), in 
     consultation with the Small Business Administration, shall 
     cooperatively enter into an agreement with the National 
     Academy of Sciences for the National Research Council to 
     conduct a study described in subsection (a)(1) and make 
     recommendations described in subsection (a)(2) not later than 
     4 years after the date of enactment of the SBIR/STTR 
     Reauthorization Act of 2009, and every 4 years thereafter.
       ``(2) Reporting.--An agreement under paragraph (1) shall 
     require that not later than 4 years after the date of 
     enactment of the SBIR/STTR Reauthorization Act of 2009, and 
     every 4 years thereafter, the National Research Council shall 
     submit to the head of the agency entering into the agreement, 
     the Committee on Small Business and Entrepreneurship of the 
     Senate, and the Committee on Small Business of the House of 
     Representatives a report regarding the study conducted under 
     paragraph (1) and containing the recommendations described in 
     paragraph (1).''.

     SEC. 308. TECHNOLOGY INSERTION REPORTING REQUIREMENTS.

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

     SEC. 309. INTELLECTUAL PROPERTY PROTECTIONS.

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

                      TITLE IV--POLICY DIRECTIVES

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

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

  Ms. LANDRIEU. Mr. President, I ask my colleagues to support passage 
of S. 1233, the SBIR/STTR Reauthorization Act of 2009, with an 
amendment from Dr. Coburn and Senator Feingold.
  This legislation is important because it reauthorizes two extremely 
successful programs--the Small Business Innovation Research and Small 
Business Technology Transfer programs--otherwise known as SBIR and 
STTR. These programs foster partnerships between small businesses and 
the Federal Government to develop cutting-edge products and 
technologies important to our country. The bill makes improvements to 
these programs that will allow them to work better for small 
businesses, while contributing to our economy, fulfilling the priority 
research needs of the Nation, and expanding and diversifying our 
military's supply base.
  The SBIR program expires on July 31, 2009, so time is of the essence 
for Congress to pass this legislation and get it to President Obama's 
desk. While we need to act fast, we have not acted in haste. We have 
given these programs full deliberation with numerous hearings, 
roundtables, and meetings since 2006, including a hearing on July 12, 
2006, a roundtable on August 1, 2007, a roundtable on October 18, 2007, 
and a roundtable on June 4, 2009. We have also reviewed the nine 
studies by the National Research Council, and studies by the Government 
Accountability Office, on the SBIR program since it was last authorized 
in 2000 to help guide the committee in drafting not only this bill, S. 
1233, but also the SBIR and STTR reauthorization bills that the 
committee adopted unanimously in the 109th Congress, S. 3778, and in 
the 110th Congress, S. 3362.
  The SBIR and STTR programs are two of the very few Federal programs 
that tap into the scientific and technical community found in America's 
small businesses. As I noted earlier, these programs foster government-
industry partnerships by making competitive awards to firms with the 
best scientific proposals in response to the research needs of our 
agencies and by helping to move technologies from the lab to the 
marketplace or from the lab to insertion in a government program or 
system.
  The SBIR program was designed in 1982 to harness the innovative 
capacity of America's small businesses to meet the needs of our Federal 
agencies and

[[Page S7432]]

to help grow small, high-tech firms that, in turn, grow local economies 
all across the Nation. The STTR program was originally created as a 
pilot program in 1992 to stimulate partnerships between small 
businesses and nonprofit research institutions, such as universities 
like LSU and Louisiana Tech.
  Since their inception, both programs have exceeded all expectations, 
playing an unprecedented role in stimulating technological innovation, 
in allowing small business to meet Federal research and development 
needs, and in providing seed capital for small business to develop 
ideas until they are able to attract outside investment.
  The SBIR program has awarded more than $24 billion to more than 
100,000 projects since it started. Recipients of SBIR and STTR awards 
have produced more than 85,000 patents and have generated millions of 
well-paying jobs across all 50 States. Both programs have garnered high 
praise from well-respected sources, and governments around the world 
are increasingly adopting SBIR-type programs to encourage innovation in 
their countries.
  In drafting this bill, we had many policy goals and interests to 
balance. We wanted to improve the diversity of the programs, 
geographically and otherwise, so that more States and individuals could 
participate in Federal research and development for our country. We 
also wanted to maintain a fair playing field so true small businesses 
could continue to compete for this very small percent of the overall 
Federal R&D budget. We wanted to encourage exploration of high-risk, 
cutting-edge research. These goals, along with many others, were taken 
into consideration in forging this bill. We made a number of important 
compromises in this legislation--and the result is a fair bill that 
will maintain the strength of these programs.
  To keep these innovation programs strong, the bill reauthorizes the 
programs for 8 years, as reflected in the amendment by Dr. Coburn, 
instead of 14 years as adopted by the committee; increases the SBIR 
program allocation by 1 percent, from 2.5 to 3.5 percent, at all 
agencies, including the NIH, spread out over 10 years; increases the 
STTR program allocation from .3 percent to .6 percent spread out over 6 
years; makes firms majority owned and controlled by multiple venture 
capital firms eligible for up to 18 percent of the SBIR funds at NIH 
and up to 8 percent of the funds at the other agencies; and increases 
the award guidelines for SBIR and STTR awards from $100,000 to $150,000 
for Phase I and from $750,000 to $1 million for Phase II.
  The bill also reauthorizes and enhances the Federal and State 
Technology Partnership Program, or FAST Program, that was created by 
Senator Bond in 2000, and the Rural Outreach Program, programs that 
have been very effective in States such as Louisiana and Missouri in 
increasing the participation of small business in Federal research and 
development and the start-up of high-tech firms; strengthens the Office 
of Technology at the SBA so that it has the authority and resources to 
carry out its duty to oversee the SBIR and STTR programs across the 
government; streamlines and improves data collection and reporting 
requirements for the SBIR and STTR programs, including developing 
metrics for annual evaluations by each participating agency, as 
reflected in the amendment by Dr. Coburn; helps SBIR and STTR companies 
move their technologies across the ``valley of death'' between the lab 
and the marketplace and into products and technologies for the 
agencies; and addresses ``jumbo'' awards, those awards that have 
greatly exceeded the $100,000 and $750,000 guidelines for Phase I and 
Phase II and cut out other businesses.
  Reauthorizing these programs will ensure that small businesses 
continue to play a part in our Federal research and development. 
Currently, small businesses receive only about 4 percent of Federal 
research and development dollars despite the fact that they employ 
nearly 40 percent of America's scientists and engineers, produce more 
than 14 times more patents than large businesses and universities, and 
produce patents that are of higher quality and are more than twice as 
likely to be cited. This legislation will help maintain and improve the 
role of small businesses in our Federal research and development.
  The SBIR and STTR programs have spurred so many amazing technologies. 
I would just like to share a few of them with you here today. Among the 
technologies pioneered by SBIR-funded small businesses are a machine 
that uses lasers and computer cameras to sort and inspect bullets at a 
much finer level than the human eye can manage, the technology that 
creates the ``invisible'' condensation trail of the B-2 bomber, a 
therapeutic drug to treat chronic inflammatory disease, and a nerve gas 
protection system.
  With regard to the bullet sorting technology, developed by CyberNet 
Systems, a small, women-owned business located in Ann Arbor, MI, and 
currently in use in Iraq and Afghanistan, that SBIR technology is 
estimated to have saved taxpayers more than $300 million. Those are 
real cost savings and tangible technological improvement.
  In Louisiana, one company that has had great success in recent years 
is Network Foundation Technologies, known as NiFTy. I visited this 
company in Ruston, LA, a rural part of the State, in August 2008 and 
was extremely impressed. NiFTy used an SBIR grant from the National 
Science Foundation to develop technology that permits live streaming 
video over the Internet without using large amounts of bandwidth. They 
have been particularly successful bringing sporting events live over 
the Internet. NiFTy has grown to more than 40 employees, many drawn 
from the ranks of the Louisiana Tech science and engineering programs. 
These are new, high-paying jobs that have been a strong asset to north 
Louisiana's economy.
  SBIR is a program that helps spur technology research and innovation 
in areas you would not normally think of as high-tech corridors. Folks 
think of California or Massachusetts, but not our growing high-tech 
corridor in rural north Louisiana. LA Tech, UL-Monroe, Grambling 
University, LSU-Shreveport, and Centenary College are all in that 
corridor. For those who don't know, Ruston is between Monroe and 
Shreveport, and LA Tech helps attract good companies because we have 
good scientists and engineers. With SBIR and STTR, those entrepreneurs 
started a company.
  It is stories such as these that make the SBIR and STTR programs so 
special to the economic and technological growth of this country. I 
want to once again thank all those involved for their hard work on this 
legislation, particularly our ranking member, Senator Snowe, and her 
staff, as well as Senator Levin and his staff on the Committee on Armed 
Services, Senator Durbin and his Appropriations staff, and Dr. Coburn 
and Senator Feingold on the final amendment to the bill. It is my hope 
that we can now pass this bill in the Senate and work expeditiously 
with the House to get a bill on President Obama's desk before July 31.
  Mr. REID. Mr. President, Senators Coburn and Feingold have an 
amendment at the desk, and I ask unanimous consent for its 
consideration; that the amendment be agreed to and the motion to 
reconsider be laid upon the table; that the committee-reported 
substitute, as amended, be agreed to and the motion to reconsider be 
laid upon the table; that the bill, as amended, be read a third time.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The amendment (No. 1502) was agreed to, as follows:

       On page 61, line 20, strike ``2023'' and insert ``2017''.
       On page 61, line 23, strike ``2023'' and insert ``2017''.
       At the end, add the following:

     SEC. 402. PRIORITIES FOR CERTAIN RESEARCH INITIATIVES.

       (a) In General.--Section 9 of the Small Business Act (15 
     U.S.C. 638), as amended by this Act, is amended by adding at 
     the end the following:
       ``(hh) Research Initiatives.--To the extent that such 
     projects relate to the mission of the Federal agency, each 
     Federal agency participating in the SBIR program or STTR 
     program shall encourage the submission of applications for 
     support of projects relating to security, energy, 
     transportation, or improving the security and quality of the 
     water supply of the United States to such program.''.
       (b) Sunset.--Effective October 1, 2014, section 9(hh) of 
     the Small Business Act, as added by subsection (a) of this 
     section, is repealed.

     SEC. 403. REPORT ON SBIR AND STTR PROGRAM GOALS.

       Section 9 of the Small Business Act (15 U.S.C. 638), as 
     amended by this Act, is amended by adding at the end the 
     following:

[[Page S7433]]

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

     SEC. 404. COMPETITIVE SELECTION PROCEDURES FOR SBIR AND STTR 
                   PROGRAMS.

       Section 9 of the Small Business Act (15 U.S.C. 638), as 
     amended by this Act, is amended by adding at the end the 
     following:
       ``(jj) Competitive Selection Procedures for SBIR and STTR 
     Programs.--All funds awarded, appropriated, or otherwise made 
     available in accordance with subsection (f) or (n) must be 
     awarded pursuant to competitive and merit-based selection 
     procedures.''.

  The committee amendment in the nature of a substitute, as amended, 
was agreed to.
  The bill (S. 1233), as amended, was ordered to be engrossed for a 
third reading, and was read the third time.
  Mr. REID. Mr. President, I now ask unanimous consent that the Senate 
proceed to H.R. 2965, the House companion, which is at the desk; that 
all after the enacting clause be stricken and the text of S. 1233, as 
amended, be inserted in lieu thereof; the bill, as amended, be read a 
third time and passed, and the motion to reconsider be laid upon the 
table; that upon passage of H.R. 2965, S. 1233 be returned to the 
calendar, with no intervening action or debate.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The amendment was ordered to be engrossed and the bill to be read a 
third time.
  The bill was read the third time.
  The bill (H.R. 2965), as amended, was passed, as follows:

                               H.R. 2965

         Resolved, That the bill from the House of Representatives 
     (H.R. 2965) entitled ``An Act to amend the Small Business Act 
     with respect to the Small Business Innovation Research 
     Program and the Small Business Technology Transfer Program, 
     and for other purposes.'', do pass with the following 
     amendment:
       Strike out all after the enacting clause and insert:

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``SBIR/STTR Reauthorization 
     Act of 2009''.

     SEC. 2. TABLE OF CONTENTS.

       The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. Definitions.

         TITLE I--REAUTHORIZATION OF THE SBIR AND STTR PROGRAMS

Sec. 101. Extension of termination dates.
Sec. 102. Status of the Office of Technology.
Sec. 103. SBIR allocation increase.
Sec. 104. STTR allocation increase.
Sec. 105. SBIR and STTR award levels.
Sec. 106. Agency and program collaboration.
Sec. 107. Elimination of Phase II invitations.
Sec. 108. Majority-venture investments in SBIR firms.
Sec. 109. SBIR and STTR special acquisition preference.
Sec. 110. Collaborating with Federal laboratories and research and 
              development centers.
Sec. 111. Notice requirement.

          TITLE II--OUTREACH AND COMMERCIALIZATION INITIATIVES

Sec. 201. Rural and State outreach.
Sec. 202. SBIR-STEM Workforce Development Grant Pilot Program.
Sec. 203. Technical assistance for awardees.
Sec. 204. Commercialization program at Department of Defense.
Sec. 205. Commercialization Pilot Program for civilian agencies.
Sec. 206. Nanotechnology initiative.
Sec. 207. Accelerating cures.

                  TITLE III--OVERSIGHT AND EVALUATION

Sec. 301. Streamlining annual evaluation requirements.
Sec. 302. Data collection from agencies for SBIR.
Sec. 303. Data collection from agencies for STTR.
Sec. 304. Public database.
Sec. 305. Government database.
Sec. 306. Accuracy in funding base calculations.
Sec. 307. Continued evaluation by the National Academy of Sciences.
Sec. 308. Technology insertion reporting requirements.
Sec. 309. Intellectual property protections.

                      TITLE IV--POLICY DIRECTIVES

Sec. 401. Conforming amendments to the SBIR and the STTR Policy 
              Directives.
Sec. 402. Priorities for certain research initiatives.
Sec. 403. Report on SBIR and STTR program goals.
Sec. 404. Competitive selection procedures for SBIR and STTR programs.

     SEC. 3. DEFINITIONS.

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

         TITLE I--REAUTHORIZATION OF THE SBIR AND STTR PROGRAMS

     SEC. 101. EXTENSION OF TERMINATION DATES.

       (a) SBIR.--Section 9(m) of the Small Business Act (15 
     U.S.C. 638(m)) is amended by striking ``2008'' and inserting 
     ``2017''.
       (b) STTR.--Section 9(n)(1)(A) of the Small Business Act (15 
     U.S.C. 638(n)(1)(A)) is amended by striking ``2009'' and 
     inserting ``2017''.

     SEC. 102. STATUS OF THE OFFICE OF TECHNOLOGY.

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

     SEC. 103. SBIR ALLOCATION INCREASE.

       Section 9(f) of the Small Business Act (15 U.S.C. 638(f)) 
     is amended--
       (1) in paragraph (1)--
       (A) in the matter preceding subparagraph (A), by striking 
     ``Each'' and inserting ``Except as provided in paragraph 
     (2)(C), each'';
       (B) in subparagraph (B), by striking ``and'' at the end; 
     and
       (C) by striking subparagraph (C) and inserting the 
     following:
       ``(C) not less than 2.5 percent of such budget in each of 
     fiscal years 2009 and 2010;
       ``(D) not less than 2.6 percent of such budget in fiscal 
     year 2011;
       ``(E) not less than 2.7 percent of such budget in fiscal 
     year 2012;
       ``(F) not less than 2.8 percent of such budget in fiscal 
     year 2013;
       ``(G) not less than 2.9 percent of such budget in fiscal 
     year 2014;
       ``(H) not less than 3.0 percent of such budget in fiscal 
     year 2015;
       ``(I) not less than 3.1 percent of such budget in fiscal 
     year 2016;
       ``(J) not less than 3.2 percent of such budget in fiscal 
     year 2017;
       ``(K) not less than 3.3 percent of such budget in fiscal 
     year 2018;
       ``(L) not less than 3.4 percent of such budget in fiscal 
     year 2019; and
       ``(M) not less than 3.5 percent of such budget in fiscal 
     year 2020 and each fiscal year thereafter,''; and
       (2) in paragraph (2)--
       (A) by redesignating subparagraphs (A) and (B) as clauses 
     (i) and (ii), respectively, and adjusting the margins 
     accordingly;
       (B) by striking ``A Federal agency'' and inserting the 
     following:
       ``(A) In general.--A Federal agency''; and
       (C) by adding at the end the following:
       ``(B) Department of defense and department of energy.--For 
     the Department of Defense and the Department of Energy, to 
     the greatest extent practicable, the percentage of the 
     extramural budget in excess of 2.5 percent required to be 
     expended with small business concerns under subparagraphs (D) 
     through (M) of paragraph (1)--
       ``(i) may not be used for new Phase I or Phase II awards; 
     and

[[Page S7434]]

       ``(ii) shall be used for activities that further the 
     readiness levels of technologies developed under Phase II 
     awards, including conducting testing and evaluation to 
     promote the transition of such technologies into commercial 
     or defense products, or systems furthering the mission needs 
     of the Department of Defense or the Department of Energy, as 
     the case may be.''.

     SEC. 104. STTR ALLOCATION INCREASE.

       Section 9(n)(1)(B) of the Small Business Act (15 U.S.C. 
     638(n)(1)(B)) is amended--
       (1) in clause (i), by striking ``and'' at the end;
       (2) in clause (ii), by striking ``thereafter.'' and 
     inserting ``through fiscal year 2010;''; and
       (3) by adding at the end the following:
       ``(iii) 0.4 percent for fiscal years 2011 and 2012;
       ``(iv) 0.5 percent for fiscal years 2013 and 2014; and
       ``(v) 0.6 percent for fiscal year 2015 and each fiscal year 
     thereafter.''.

     SEC. 105. SBIR AND STTR AWARD LEVELS.

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

     SEC. 106. AGENCY AND PROGRAM COLLABORATION.

       Section 9 of the Small Business Act (15 U.S.C. 638), as 
     amended by this Act, is amended by adding at the end the 
     following:
       ``(bb) Subsequent Phases.--
       ``(1) Agency collaboration.--A small business concern that 
     received an award from a Federal agency under this section 
     shall be eligible to receive an award for a subsequent phase 
     from another Federal agency, if the head of each relevant 
     Federal agency or the relevant component of the Federal 
     agency makes a written determination that the topics of the 
     relevant awards are the same and both agencies report the 
     awards to the Administrator for inclusion in the public 
     database under subsection (k).
       ``(2) SBIR and sttr collaboration.--A small business 
     concern which received an award under this section under the 
     SBIR program or the STTR program may receive an award under 
     this section for a subsequent phase in either the SBIR 
     program or the STTR program and the participating agency or 
     agencies shall report the awards to the Administrator for 
     inclusion in the public database under subsection (k).''.

     SEC. 107. ELIMINATION OF PHASE II INVITATIONS.

       (a) In General.--Section 9(e) of the Small Business Act (15 
     U.S.C. 638(e)) is amended--
       (1) in paragraph (4)(B), by striking ``to further'' and 
     inserting: ``which shall not include any invitation, pre-
     screening, pre-selection, or down-selection process for 
     eligibility for the second phase, that will further''; and
       (2) in paragraph (6)(B), by striking ``to further develop 
     proposed ideas to'' and inserting ``which shall not include 
     any invitation, pre-screening, pre-selection, or down-
     selection process for eligibility for the second phase, that 
     will further develop proposals that''.
       (b) Technical and Conforming Amendments.--The Small 
     Business Act (15 U.S.C. 638) is amended--
       (1) in section 9--
       (A) in subsection (e)--
       (i) in paragraph (8), by striking ``and'' at the end;
       (ii) in paragraph (9)--

       (I) by striking ``the second or the third phase'' and 
     inserting ``Phase II or Phase III''; and
       (II) by striking the period at the end and inserting a 
     semicolon; and

       (iii) by adding at the end the following:
       ``(10) the term `Phase I' means--
       ``(A) with respect to the SBIR program, the first phase 
     described in paragraph (4)(A); and
       ``(B) with respect to the STTR program, the first phase 
     described in paragraph (6)(A);
       ``(11) the term `Phase II' means--
       ``(A) with respect to the SBIR program, the second phase 
     described in paragraph (4)(B); and
       ``(B) with respect to the STTR program, the second phase 
     described in paragraph (6)(B); and
       ``(12) the term `Phase III' means--
       ``(A) with respect to the SBIR program, the third phase 
     described in paragraph (4)(C); and
       ``(B) with respect to the STTR program, the third phase 
     described in paragraph (6)(C).'';
       (B) in subsection (j)--
       (i) in paragraph (1)(B), by striking ``phase two'' and 
     inserting ``Phase II'';
       (ii) in paragraph (2)--

       (I) in subparagraph (B)--

       (aa) by striking ``the third phase'' each place it appears 
     and inserting ``Phase III''; and
       (bb) by striking ``the second phase'' and inserting ``Phase 
     II'';

       (II) in subparagraph (D)--

       (aa) by striking ``the first phase'' and inserting ``Phase 
     I''; and
       (bb) by striking ``the second phase'' and inserting ``Phase 
     II'';

       (III) in subparagraph (F), by striking ``the third phase'' 
     and inserting ``Phase III'';
       (IV) in subparagraph (G)--

       (aa) by striking ``the first phase'' and inserting ``Phase 
     I''; and
       (bb) by striking ``the second phase'' and inserting ``Phase 
     II''; and

       (V) in subparagraph (H)--

       (aa) by striking ``the first phase'' and inserting ``Phase 
     I'';
       (bb) by striking ``second phase'' each place it appears and 
     inserting ``Phase II''; and
       (cc) by striking ``third phase'' and inserting ``Phase 
     III''; and
       (iii) in paragraph (3)--

       (I) in subparagraph (A)--

       (aa) by striking ``the first phase (as described in 
     subsection (e)(4)(A))'' and inserting ``Phase I'';
       (bb) by striking ``the second phase (as described in 
     subsection (e)(4)(B))'' and inserting ``Phase II''; and
       (cc) by striking ``the third phase (as described in 
     subsection (e)(4)(C))'' and inserting ``Phase III''; and

       (II) in subparagraph (B), by striking ``second phase'' and 
     inserting ``Phase II'';

       (C) in subsection (k)--
       (i) by striking ``first phase'' each place it appears and 
     inserting ``Phase I''; and
       (ii) by striking ``second phase'' each place it appears and 
     inserting ``Phase II'';
       (D) in subsection (l)(2)--
       (i) by striking ``the first phase'' and inserting ``Phase 
     I''; and
       (ii) by striking ``the second phase'' and inserting ``Phase 
     II'';
       (E) in subsection (o)(13)--
       (i) in subparagraph (B), by striking ``second phase'' and 
     inserting ``Phase II''; and
       (ii) in subparagraph (C), by striking ``third phase'' and 
     inserting ``Phase III'';
       (F) in subsection (p)--
       (i) in paragraph (2)(B)--

       (I) in clause (vi)--

       (aa) by striking ``the second phase'' and inserting ``Phase 
     II''; and
       (bb) by striking ``the third phase'' and inserting ``Phase 
     III''; and

       (II) in clause (ix)--

       (aa) by striking ``the first phase'' and inserting ``Phase 
     I''; and
       (bb) by striking ``the second phase'' and inserting ``Phase 
     II''; and
       (ii) in paragraph (3)--

       (I) by striking ``the first phase (as described in 
     subsection (e)(6)(A))'' and inserting ``Phase I'';
       (II) by striking ``the second phase (as described in 
     subsection (e)(6)(B))'' and inserting ``Phase II''; and
       (III) by striking ``the third phase (as described in 
     subsection (e)(6)(A))'' and inserting ``Phase III'';

       (G) in subsection (q)(3)--
       (i) in subparagraph (A)--

       (I) in the subparagraph heading, by striking ``First 
     phase'' and inserting ``Phase i''; and
       (II) by striking ``first phase'' and inserting ``Phase I''; 
     and

       (ii) in subparagraph (B)--

       (I) in the subparagraph heading, by striking ``Second 
     phase'' and inserting ``Phase ii''; and
       (II) by striking ``second phase'' and inserting ``Phase 
     II'';

       (H) in subsection (r)--
       (i) in the subsection heading, by striking ``Third Phase'' 
     and inserting ``Phase III'';
       (ii) in paragraph (1)--

       (I) in the first sentence--

       (aa) by striking ``for the second phase'' and inserting 
     ``for Phase II'';
       (bb) by striking ``third phase'' and inserting ``Phase 
     III''; and
       (cc) by striking ``second phase period'' and inserting 
     ``Phase II period''; and

       (II) in the second sentence--

       (aa) by striking ``second phase'' and inserting ``Phase 
     II''; and
       (bb) by striking ``third phase'' and inserting ``Phase 
     III''; and
       (iii) in paragraph (2), by striking ``third phase'' and 
     inserting ``Phase III''; and
       (I) in subsection (u)(2)(B), by striking ``the first 
     phase'' and inserting ``Phase I'';
       (2) in section 34--
       (A) in subsection (c)(2)(B)(ii), by striking ``first phase 
     and second phase SBIR awards'' and inserting ``Phase I and 
     Phase II SBIR awards (as defined in section 9(e))''; and
       (B) in subsection (e)(2)(A)--
       (i) in clause (i), by striking ``first phase awards'' and 
     all that follows and inserting

[[Page S7435]]

     ``Phase I awards (as defined in section 9(e));''; and
       (ii) by striking ``first phase'' each place it appears and 
     inserting ``Phase I''; and
       (3) in section 35(c)(2)(B)(vii), by striking ``third 
     phase'' and inserting ``Phase III''.

     SEC. 108. MAJORITY-VENTURE INVESTMENTS IN SBIR FIRMS.

       (a) In General.--Section 9 of the Small Business Act (15 
     U.S.C. 638), as amended by this Act, is amended by adding at 
     the end the following:
       ``(cc) Majority-venture Investments in SBIR Firms.--
       ``(1) Authority and determination.--
       ``(A) In general.--Upon a written determination provided 
     not later than 30 days in advance to the Administrator and to 
     the Committee on Small Business and Entrepreneurship of the 
     Senate and the Committee on Small Business of the House of 
     Representatives--
       ``(i) the Director of the National Institutes of Health may 
     award not more than 18 percent of the SBIR funds of the 
     National Institutes of Health allocated in accordance with 
     this Act, in the first full fiscal year beginning after the 
     date of enactment of this subsection, and each fiscal year 
     thereafter, to small business concerns that are owned in 
     majority part by venture capital companies and that satisfy 
     the qualification requirements under paragraph (2) through 
     competitive, merit-based procedures that are open to all 
     eligible small business concerns; and
       ``(ii) the head of any other Federal agency participating 
     in the SBIR program may award not more than 8 percent of the 
     SBIR funds of the Federal agency allocated in accordance with 
     this Act, in the first full fiscal year beginning after the 
     date of enactment of this subsection, and each fiscal year 
     thereafter, to small business concerns that are majority 
     owned by venture capital companies and that satisfy the 
     qualification requirements under paragraph (2) through 
     competitive, merit-based procedures that are open to all 
     eligible small business concerns.
       ``(B) Determination.--A written determination made under 
     subparagraph (A) shall explain how the use of the authority 
     under that subparagraph will induce additional venture 
     capital funding of small business innovations, substantially 
     contribute to the mission of the funding Federal agency, 
     demonstrate a need for public research, and otherwise fulfill 
     the capital needs of small business concerns for additional 
     financing for the SBIR project.
       ``(2) Qualification requirements.--The Administrator shall 
     establish requirements relating to the affiliation by small 
     business concerns with venture capital companies, which may 
     not exclude a United States small business concern from 
     participation in the program under paragraph (1) on the basis 
     that the small business concern is owned in majority part by, 
     or controlled by, more than 1 United States venture capital 
     company, so long as no single venture capital company owns 
     more than 49 percent of the small business concern.
       ``(3) Registration.--A small business concern that is 
     majority owned and controlled by multiple venture capital 
     companies and qualified for participation in the program 
     authorized under paragraph (1) shall--
       ``(A) register with the Administrator on the date that the 
     small business concern submits an application for an award 
     under the SBIR program; and
       ``(B) indicate whether the small business concern is 
     registered under subparagraph (A) in any SBIR proposal.
       ``(4) Compliance.--A Federal agency described in paragraph 
     (1) shall collect data regarding the number and dollar 
     amounts of phase I, phase II, and all other categories of 
     awards under the SBIR program, and the Administrator shall 
     report on the data and the compliance of each such Federal 
     agency with the maximum amounts under paragraph (1) as part 
     of the annual report by the Administration under subsection 
     (b)(7).
       ``(5) Enforcement.--If a Federal agency awards more than 
     the amount authorized under paragraph (1) for a purpose 
     described in paragraph (1), the amount awarded in excess of 
     the amount authorized under paragraph (1) shall be 
     transferred to the funds for general SBIR programs from the 
     non-SBIR research and development funds of the Federal agency 
     within 60 days of the date on which the Federal agency 
     awarded more than the amount authorized under paragraph (1) 
     for a purpose described in paragraph (1).''.
       (b) Technical and Conforming Amendment.--Section 3 of the 
     Small Business Act (15 U.S.C. 632) is amended by adding at 
     the end the following:
       ``(t) Venture Capital Company.--In this Act, the term 
     `venture capital company' means an entity described in clause 
     (i), (v), or (vi) of section 121.103(b)(5) of title 13, Code 
     of Federal Regulations (or any successor thereto).''.
       (c) Assistance for Determining Affiliates.--Not later than 
     30 days after the date of enactment of this Act, the 
     Administrator shall post on the website of the Administration 
     (with a direct link displayed on the homepage of the website 
     of the Administration or the SBIR website of the 
     Administration)--
       (1) a clear explanation of the SBIR affiliation rules under 
     part 121 of title 13, Code of Federal Regulations; and
       (2) contact information for officers or employees of the 
     Administration who--
       (A) upon request, shall review an issue relating to the 
     rules described in paragraph (1); and
       (B) shall respond to a request under subparagraph (A) not 
     later than 20 business days after the date on which the 
     request is received.

     SEC. 109. SBIR AND STTR SPECIAL ACQUISITION PREFERENCE.

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

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

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

     SEC. 111. NOTICE REQUIREMENT.

       The head of any Federal agency involved in a case or 
     controversy before any Federal judicial or administrative 
     tribunal concerning the SBIR program or the STTR program 
     shall provide timely notice, as determined by the 
     Administrator, of the case or controversy to the 
     Administrator.

          TITLE II--OUTREACH AND COMMERCIALIZATION INITIATIVES

     SEC. 201. RURAL AND STATE OUTREACH.

       (a) Outreach.--Section 9 of the Small Business Act (15 
     U.S.C. 638) is amended by inserting after subsection (r) the 
     following:
       ``(s) Outreach.--
       ``(1) Definition of eligible state.--In this subsection, 
     the term `eligible State' means a State--
       ``(A) for which the total value of contracts awarded to the 
     State under this section during the most recent fiscal year 
     for which data is available was less than $5,000,000; and
       ``(B) that certifies to the Administrator that the State 
     will, upon receipt of assistance under this subsection, 
     provide matching funds from non-Federal sources in an amount 
     that is not less than 50 percent of the amount provided under 
     this subsection.
       ``(2) Program authority.--Of amounts made available to 
     carry out this section for each of fiscal years 2010 through 
     2014, the Administrator may expend with eligible States not 
     more than $5,000,000 in each such fiscal year in order to 
     increase the participation of small business concerns located 
     in those States in the programs under this section.
       ``(3) Amount of assistance.--The amount of assistance 
     provided to an eligible State under this subsection in any 
     fiscal year--
       ``(A) shall be equal to not more than 50 percent of the 
     total amount of matching funds from non-Federal sources 
     provided by the State; and
       ``(B) shall not exceed $100,000.
       ``(4) Use of assistance.--Assistance provided to an 
     eligible State under this subsection shall be used by the 
     State, in consultation with State and local departments and 
     agencies, for programs and activities to increase the 
     participation of small business concerns located in the State 
     in the programs under this section, including--
       ``(A) the establishment of quantifiable performance goals, 
     including goals relating to--
       ``(i) the number of program awards under this section made 
     to small business concerns in the State; and
       ``(ii) the total amount of Federal research and development 
     contracts awarded to small business concerns in the State;
       ``(B) the provision of competition outreach support to 
     small business concerns in the State that are involved in 
     research and development; and
       ``(C) the development and dissemination of educational and 
     promotional information relating to the programs under this 
     section to small business concerns in the State.''.
       (b) Federal and State Program Extension.--Section 34 of the 
     Small Business Act (15 U.S.C. 657d) is amended--

[[Page S7436]]

       (1) in subsection (h), by striking ``2001 through 2005'' 
     each place it appears and inserting ``2010 through 2014''; 
     and
       (2) in subsection (i), by striking ``2005'' and inserting 
     ``2014''.
       (c) Matching Requirements.--Section 34(e)(2) of the Small 
     Business Act (15 U.S.C. 657d(e)(2)) is amended--
       (1) in subparagraph (A)--
       (A) in clause (i), by striking ``50 cents'' and inserting 
     ``35 cents''; and
       (B) in clause (iii), by striking ``75 cents'' and inserting 
     ``50 cents'';
       (2) in subparagraph (B), by striking ``50 cents'' and 
     inserting ``35 cents'';
       (3) by redesignating subparagraphs (C) and (D) as 
     subparagraphs (D) and (E), respectively; and
       (4) by inserting after subparagraph (B) the following:
       ``(C) Rural areas.--
       ``(i) In general.--Except as provided in clause (ii), the 
     non-Federal share of the cost of the activity carried out 
     using an award or under a cooperative agreement under this 
     section shall be 35 cents for each Federal dollar that will 
     be directly allocated by a recipient described in paragraph 
     (A) to serve small business concerns located in a rural area.
       ``(ii) Enhanced rural awards.--For a recipient located in a 
     rural area that is located in a State described in 
     subparagraph (A)(i), the non-Federal share of the cost of the 
     activity carried out using an award or under a cooperative 
     agreement under this section shall be 15 cents for each 
     Federal dollar that will be directly allocated by a recipient 
     described in paragraph (A) to serve small business concerns 
     located in the rural area.
       ``(iii) Definition of rural area.--In this subparagraph, 
     the term `rural area' has the meaning given that term in 
     section 1393(a)(2)) of the Internal Revenue Code of 1986.''.

     SEC. 202. SBIR-STEM WORKFORCE DEVELOPMENT GRANT PILOT 
                   PROGRAM.

       (a) Pilot Program Established.--From amounts made available 
     to carry out this section, the Administrator shall establish 
     a SBIR-STEM Workforce Development Grant Pilot Program to 
     encourage the business community to provide workforce 
     development opportunities for college students, in the fields 
     of science, technology, engineering, and math (in this 
     section referred to as ``STEM college students''), by 
     providing a SBIR bonus grant.
       (b) Eligible Entities Defined.--In this section the term 
     ``eligible entity'' means a grantee receiving a grant under 
     the SBIR Program on the date of the bonus grant under 
     subsection (a) that provides an internship program for STEM 
     college students.
       (c) Awards.--An eligible entity shall receive a bonus grant 
     equal to 10 percent of either a Phase I or Phase II grant, as 
     applicable, with a total award maximum of not more than 
     $10,000 per year.
       (d) Evaluation.--Following the fourth year of funding under 
     this section, the Administrator shall submit a report to 
     Congress on the results of the SBIR-STEM Workforce 
     Development Grant Pilot Program.
       (e) Authorization of Appropriations.--There are authorized 
     to be appropriated to carry out this section--
       (1) $1,000,000 for fiscal year 2011;
       (2) $1,000,000 for fiscal year 2012;
       (3) $1,000,000 for fiscal year 2013;
       (4) $1,000,000 for fiscal year 2014; and
       (5) $1,000,000 for fiscal year 2015.

     SEC. 203. TECHNICAL ASSISTANCE FOR AWARDEES.

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

     SEC. 204. COMMERCIALIZATION PROGRAM AT DEPARTMENT OF DEFENSE.

       Section 9(y) of the Small Business Act (15 U.S.C. 638(y)) 
     is amended--
       (1) in the subsection heading, by striking ``Pilot'';
       (2) by striking ``Pilot'' each place that term appears;
       (3) in paragraph (1)--
       (A) by inserting ``or Small Business Technology Transfer 
     Program'' after ``Small Business Innovation Research 
     Program''; and
       (B) by adding at the end the following: ``The authority to 
     create and administer a Commercialization Program under this 
     subsection may not be construed to eliminate or replace any 
     other SBIR program or STTR program that enhances the 
     insertion or transition of SBIR or STTR technologies, 
     including any such program in effect on the date of enactment 
     of the National Defense Authorization Act for Fiscal Year 
     2006 (Public Law 109-163; 119 Stat. 3136).'';
       (4) in paragraph (2), by inserting ``or Small Business 
     Technology Transfer Program'' after ``Small Business 
     Innovation Research Program'';
       (5) in paragraph (4), by inserting ``or Small Business 
     Technology Transfer Program'' after ``Small Business 
     Innovation Research Program'';
       (6) by striking paragraph (6);
       (7) by redesignating paragraph (5) as paragraph (7); and
       (8) by inserting after paragraph (4) the following:
       ``(5) Insertion incentives.--For any contract with a value 
     of not less than $100,000,000, the Secretary of Defense is 
     authorized to--
       ``(A) establish goals for the transition of Phase III 
     technologies in subcontracting plans; and
       ``(B) require a prime contractor on such a contract to 
     report the number and dollar amount of contracts entered into 
     by that prime contractor for Phase III SBIR or STTR projects.
       ``(6) Goal for sbir and sttr technology insertion.--The 
     Secretary of Defense shall--
       ``(A) set a goal to increase the number of Phase II SBIR 
     contracts and the number of Phase II STTR contracts awarded 
     by that Secretary that lead to technology transition into 
     programs of record or fielded systems;
       ``(B) use incentives in effect on the date of enactment of 
     the SBIR/STTR Reauthorization Act of 2009, or create new 
     incentives, to encourage agency program managers and prime 
     contractors to meet the goal under subparagraph (A); and
       ``(C) include in the annual report to Congress the 
     percentage of contracts described in subparagraph (A) awarded 
     by that Secretary, and information on the ongoing status of 
     projects funded through the Commercialization Program and 
     efforts to transition these technologies into programs of 
     record or fielded systems.''.

     SEC. 205. COMMERCIALIZATION PILOT PROGRAM FOR CIVILIAN 
                   AGENCIES.

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

     SEC. 206. NANOTECHNOLOGY INITIATIVE.

       (a) In General.--Section 9 of the Small Business Act (15 
     U.S.C. 638), as amended by this Act, is amended by adding at 
     the end the following:
       ``(ff) Nanotechnology Initiative.--Each Federal agency 
     participating in the SBIR or STTR program shall encourage the 
     submission of applications for support of nanotechnology 
     related projects to such program.''.
       (b) Sunset.--Effective October 1, 2014, subsection (ff) of 
     the Small Business Act, as added by subsection (a) of this 
     section, is repealed.

     SEC. 207. ACCELERATING CURES.

       The Small Business Act (15 U.S.C. 631 et seq.) is amended--

[[Page S7437]]

       (1) by redesignating section 44 as section 45; and
       (2) by inserting after section 43 the following:

     ``SEC. 44. SMALL BUSINESS INNOVATION RESEARCH PROGRAM.

       ``(a) NIH Cures Pilot.--
       ``(1) Establishment.--An independent advisory board shall 
     be established at the National Academy of Sciences (in this 
     section referred to as the `advisory board') to conduct 
     periodic evaluations of the SBIR program (as that term is 
     defined in section 9) of each of the National Institutes of 
     Health (referred to in this section as the `NIH') institutes 
     and centers for the purpose of improving the management of 
     the SBIR program through data-driven assessment.
       ``(2) Membership.--
       ``(A) In general.--The advisory board shall consist of--
       ``(i) the Director of the NIH;
       ``(ii) the Director of the SBIR program of the NIH;
       ``(iii) senior NIH agency managers, selected by the 
     Director of NIH;
       ``(iv) industry experts, selected by the Council of the 
     National Academy of Sciences in consultation with the 
     Associate Administrator for Technology of the Administration 
     and the Director of the Office of Science and Technology 
     Policy; and
       ``(v) owners or operators of small business concerns that 
     have received an award under the SBIR program of the NIH, 
     selected by the Associate Administrator for Technology of the 
     Administration.
       ``(B) Number of members.--The total number of members 
     selected under clauses (iii), (iv), and (v) of subparagraph 
     (A) shall not exceed 10.
       ``(C) Equal representation.--The total number of members of 
     the advisory board selected under clauses (i), (ii), (iii), 
     and (iv) of subparagraph (A) shall be equal to the number of 
     members of the advisory board selected under subparagraph 
     (A)(v).
       ``(b) Addressing Data Gaps.--In order to enhance the 
     evidence-base guiding SBIR program decisions and changes, the 
     Director of the SBIR program of the NIH shall address the 
     gaps and deficiencies in the data collection concerns 
     identified in the 2007 report of the National Academies of 
     Science entitled `An Assessment of the Small Business 
     Innovation Research Program at the NIH'.
       ``(c) Pilot Program.--
       ``(1) In general.--The Director of the SBIR program of the 
     NIH may initiate a pilot program, under a formal mechanism 
     for designing, implementing, and evaluating pilot programs, 
     to spur innovation and to test new strategies that may 
     enhance the development of cures and therapies.
       ``(2) Considerations.--The Director of the SBIR program of 
     the NIH may consider conducting a pilot program to include 
     individuals with successful SBIR program experience in study 
     sections, hiring individuals with small business development 
     experience for staff positions, separating the commercial and 
     scientific review processes, and examining the impact of the 
     trend toward larger awards on the overall program.
       ``(d) Report to Congress.--The Director of the NIH shall 
     submit an annual report to Congress and the advisory board on 
     the activities of the SBIR program of the NIH under this 
     section.
       ``(e) SBIR Grants and Contracts.--
       ``(1) In general.--In awarding grants and contracts under 
     the SBIR program of the NIH each SBIR program manager shall 
     place an emphasis on applications that identify products and 
     services that may enhance the development of cures and 
     therapies.
       ``(2) Examination of commercialization and other metrics.--
     The advisory board shall evaluate the implementation of the 
     requirement under paragraph (1) by examining increased 
     commercialization and other metrics, to be determined and 
     collected by the SBIR program of the NIH.
       ``(3) Phase i and ii.--To the greatest extent practicable, 
     the Director of the SBIR program of the NIH shall reduce the 
     time period between Phase I and Phase II funding of grants 
     and contracts under the SBIR program of the NIH to 6 months.
       ``(f) Limit.--Not more than a total of 1 percent of the 
     extramural budget (as defined in section 9 of the Small 
     Business Act (15 U.S.C. 638)) of the NIH for research or 
     research and development may be used for the pilot program 
     under subsection (c) and to carry out subsection (e).
       ``(g) Sunset.--This section shall cease to be effective on 
     the date that is 5 years after the date of enactment of the 
     SBIR/STTR Reauthorization Act of 2009.''.

                  TITLE III--OVERSIGHT AND EVALUATION

     SEC. 301. STREAMLINING ANNUAL EVALUATION REQUIREMENTS.

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

     SEC. 302. DATA COLLECTION FROM AGENCIES FOR SBIR.

       Section 9(g) of the Small Business Act (15 U.S.C. 638(g)) 
     is amended--
       (1) by striking paragraph (10);
       (2) by redesignating paragraphs (8) and (9) as paragraphs 
     (9) and (10), respectively;
       (3) by inserting after paragraph (7) the following:
       ``(8) collect annually, and maintain in a common format in 
     accordance with the simplified reporting requirements under 
     subsection (v), such information from awardees as is 
     necessary to assess the SBIR program, including information 
     necessary to maintain the database described in subsection 
     (k), including--
       ``(A) whether an awardee--
       ``(i) has venture capital or is majority owned and 
     controlled by multiple venture capital firms, and, if so--

       ``(I) the amount of venture capital that the awardee has 
     received as of the date of the award; and
       ``(II) the amount of additional capital that the awardee 
     has invested in the SBIR technology;

       ``(ii) has an investor that--

       ``(I) is an individual who is not a citizen of the United 
     States or a lawful permanent resident of the United States, 
     and if so, the name of any such individual; or
       ``(II) is a person that is not an individual and is not 
     organized under the laws of a State or the United States, and 
     if so the name of any such person;

       ``(iii) is owned by a woman or has a woman as a principal 
     investigator;
       ``(iv) is owned by a socially or economically disadvantaged 
     individual or has a socially or economically disadvantaged 
     individual as a principal investigator;
       ``(v) received assistance under the FAST program under 
     section 34 or the outreach program under subsection (s);
       ``(vi) is a faculty member or a student of an institution 
     of higher education, as that term is defined in section 101 
     of the Higher Education Act of 1965 (20 U.S.C. 1001); or
       ``(vii) is located in a State described in subsection 
     (u)(3); and
       ``(B) a justification statement from the agency, if an 
     awardee receives an award in an amount that is more than the 
     award guidelines under this section;''; and
       (4) in paragraph (10), as so redesignated, by adding 
     ``and'' at the end.

     SEC. 303. DATA COLLECTION FROM AGENCIES FOR STTR.

       Section 9(o) of the Small Business Act (15 U.S.C. 638(o)) 
     is amended--
       (1) by striking paragraph (9) and inserting the following:
       ``(9) collect annually, and maintain in a common format in 
     accordance with the simplified reporting requirements under 
     subsection (v), such information from applicants and awardees 
     as is necessary to assess the STTR program outputs and 
     outcomes, including information necessary to maintain the 
     database described in subsection (k), including--
       ``(A) whether an applicant or awardee--
       ``(i) has venture capital or is majority owned and 
     controlled by multiple venture capital firms, and, if so--

       ``(I) the amount of venture capital that the applicant or 
     awardee has received as of the date of the application or 
     award, as applicable; and
       ``(II) the amount of additional capital that the applicant 
     or awardee has invested in the SBIR technology;

       ``(ii) has an investor that--

       ``(I) is an individual who is not a citizen of the United 
     States or a lawful permanent resident of the United States, 
     and if so, the name of any such individual; or
       ``(II) is a person that is not an individual and is not 
     organized under the laws of a State or the United States, and 
     if so the name of any such person;

       ``(iii) is owned by a woman or has a woman as a principal 
     investigator;
       ``(iv) is owned by a socially or economically disadvantaged 
     individual or has a socially or economically disadvantaged 
     individual as a principal investigator;
       ``(v) received assistance under the FAST program under 
     section 34 or the outreach program under subsection (s);
       ``(vi) is a faculty member or a student of an institution 
     of higher education, as that term is defined in section 101 
     of the Higher Education Act of 1965 (20 U.S.C. 1001); or
       ``(vii) is located in a State in which the total value of 
     contracts awarded to small business concerns under all STTR 
     programs is less than the total value of contracts awarded to 
     small business concerns in a majority of other States, as 
     determined by the Administrator in biennial fiscal years, 
     beginning with fiscal year 2008, based on the most recent 
     statistics compiled by the Administrator; and

[[Page S7438]]

       ``(B) if an awardee receives an award in an amount that is 
     more than the award guidelines under this section, a 
     statement from the agency that justifies the award amount;'';
       (2) in paragraph (14), by adding ``and'' at the end;
       (3) by striking paragraph (15); and
       (4) by redesignating paragraph (16) as paragraph (15).

     SEC. 304. PUBLIC DATABASE.

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

     SEC. 305. GOVERNMENT DATABASE.

       Section 9(k)(2) of the Small Business Act (15 U.S.C. 
     638(k)(2)) is amended--
       (1) by redesignating subparagraphs (C), (D), and (E) as 
     subparagraphs (D), (E), and (F), respectively;
       (2) by inserting after subparagraph (B) the following:
       ``(C) includes, for each awardee--
       ``(i) the name, size, location, and any identifying number 
     assigned to the awardee by the Administrator;
       ``(ii) whether the awardee has venture capital, and, if 
     so--

       ``(I) the amount of venture capital as of the date of the 
     award;
       ``(II) the percentage of ownership of the awardee held by a 
     venture capital firm, including whether the awardee is 
     majority owned and controlled by multiple venture capital 
     firms; and
       ``(III) the amount of additional capital that the awardee 
     has invested in the SBIR technology, which information shall 
     be collected on an annual basis;

       ``(iii) the names and locations of any affiliates of the 
     awardee;
       ``(iv) the number of employees of the awardee;
       ``(v) the number of employees of the affiliates of the 
     awardee; and
       ``(vi) the names of, and the percentage of ownership of the 
     awardee held by--

       ``(I) any individual who is not a citizen of the United 
     States or a lawful permanent resident of the United States; 
     or
       ``(II) any person that is not an individual and is not 
     organized under the laws of a State or the United States;''; 
     and

       (3) in subparagraph (D), as so redesignated--
       (A) in clause (ii), by striking ``and'' at the end; and
       (B) by adding at the end, the following:
       ``(iv) whether the applicant was majority owned and 
     controlled by multiple venture capital firms; and
       ``(v) the number of employees of the applicant;''.

     SEC. 306. ACCURACY IN FUNDING BASE CALCULATIONS.

       (a) In General.--Not later than 1 year after the date of 
     enactment of this Act, and every 3 years thereafter, the 
     Comptroller General of the United States shall--
       (1) conduct a fiscal and management audit of the SBIR 
     program and the STTR program for the applicable period to--
       (A) determine whether Federal agencies comply with the 
     expenditure amount requirements under subsections (f)(1) and 
     (n)(1) of section 9 of the Small Business Act (15 U.S.C. 
     638), as amended by this Act;
       (B) assess the extent of compliance with the requirements 
     of section 9(i)(2) of the Small Business Act (15 U.S.C. 
     638(i)(2)) by Federal agencies participating in the SBIR 
     program or the STTR program and the Administration;
       (C) assess whether it would be more consistent and 
     effective to base the amount of the allocations under the 
     SBIR program and the STTR program on a percentage of the 
     research and development budget of a Federal agency, rather 
     than the extramural budget of the Federal agency; and
       (D) determine the portion of the extramural research or 
     research and development budget of a Federal agency that each 
     Federal agency spends for administrative purposes relating to 
     the SBIR program or STTR program, and for what specific 
     purposes, including the portion, if any, of such budget the 
     Federal agency spends for salaries and expenses, travel to 
     visit applicants, outreach events, marketing, and technical 
     assistance; and
       (2) submit a report to the Committee on Small Business and 
     Entrepreneurship of the Senate and the Committee on Small 
     Business of the House of Representatives regarding the audit 
     conducted under paragraph (1), including the assessments 
     required under subparagraphs (B) and (C), and the 
     determination made under subparagraph (D) of paragraph (1).
       (b) Definition of Applicable Period.--In this section, the 
     term ``applicable period'' means--
       (1) for the first report submitted under this section, the 
     period beginning on October 1, 2000, and ending on September 
     30 of the last full fiscal year before the date of enactment 
     of this Act for which information is available; and
       (2) for the second and each subsequent report submitted 
     under this section, the period--
       (A) beginning on October 1 of the first fiscal year after 
     the end of the most recent full fiscal year relating to which 
     a report under this section was submitted; and
       (B) ending on September 30 of the last full fiscal year 
     before the date of the report.

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

       Section 108 of the Small Business Reauthorization Act of 
     2000 (15 U.S.C. 638 note) is amended by adding at the end the 
     following:
       ``(e) Extensions and Enhancements of Authority.--
       ``(1) In general.--Not later than 6 months after the date 
     of enactment of the SBIR/STTR Reauthorization Act of 2009, 
     the head of each agency described in subsection (a), in 
     consultation with the Small Business Administration, shall 
     cooperatively enter into an agreement with the National 
     Academy of Sciences for the National Research Council to 
     conduct a study described in subsection (a)(1) and make 
     recommendations described in subsection (a)(2) not later than 
     4 years after the date of enactment of the SBIR/STTR 
     Reauthorization Act of 2009, and every 4 years thereafter.
       ``(2) Reporting.--An agreement under paragraph (1) shall 
     require that not later than 4 years after the date of 
     enactment of the SBIR/STTR Reauthorization Act of 2009, and 
     every 4 years thereafter, the National Research Council shall 
     submit to the head of the agency entering into the agreement, 
     the Committee on Small Business and Entrepreneurship of the 
     Senate, and the Committee on Small Business of the House of 
     Representatives a report regarding the study conducted under 
     paragraph (1) and containing the recommendations described in 
     paragraph (1).''.

     SEC. 308. TECHNOLOGY INSERTION REPORTING REQUIREMENTS.

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

     SEC. 309. INTELLECTUAL PROPERTY PROTECTIONS.

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

                      TITLE IV--POLICY DIRECTIVES

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

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

     SEC. 402. PRIORITIES FOR CERTAIN RESEARCH INITIATIVES.

       (a) In General.--Section 9 of the Small Business Act (15 
     U.S.C. 638), as amended by this Act, is amended by adding at 
     the end the following:
       ``(hh) Research Initiatives.--To the extent that such 
     projects relate to the mission of the Federal agency, each 
     Federal agency participating in the SBIR program or STTR 
     program shall encourage the submission of applications for 
     support of projects relating to security, energy, 
     transportation, or improving the security and quality of the 
     water supply of the United States to such program.''.
       (b) Sunset.--Effective October 1, 2014, section 9(hh) of 
     the Small Business Act, as added by subsection (a) of this 
     section, is repealed.

     SEC. 403. REPORT ON SBIR AND STTR PROGRAM GOALS.

       Section 9 of the Small Business Act (15 U.S.C. 638), as 
     amended by this Act, is amended by adding at the end the 
     following:
       ``(ii) Annual Report on SBIR and STTR Program Goals.--
       ``(1) Development of metrics.--The head of each Federal 
     agency required to participate in the SBIR program or the 
     STTR program shall develop metrics to evaluate the 
     effectiveness,

[[Page S7439]]

     and the benefit to the people of the United States, of the 
     SBIR program and the STTR program of the Federal agency 
     that--
       ``(A) are science-based and statistically driven;
       ``(B) reflect the mission of the Federal agency; and
       ``(C) include factors relating to the economic impact of 
     the programs.
       ``(2) Evaluation.--The head of each Federal agency 
     described in paragraph (1) shall conduct an annual evaluation 
     using the metrics developed under paragraph (1) of--
       ``(A) the SBIR program and the STTR program of the Federal 
     agency; and
       ``(B) the benefits to the people of the United States of 
     the SBIR program and the STTR program of the Federal agency.
       ``(3) Report.--
       ``(A) In general.--The head of each Federal agency 
     described in paragraph (1) shall submit to the appropriate 
     committees of Congress and the Administrator an annual report 
     describing in detail the results of an evaluation conducted 
     under paragraph (2).
       ``(B) Public availability of report.--The head of each 
     Federal agency described in paragraph (1) shall make each 
     report submitted under subparagraph (A) available to the 
     public online.
       ``(C) Definition.--In this paragraph, the term `appropriate 
     committees of Congress' means--
       ``(i) the Committee on Small Business and Entrepreneurship 
     of the Senate; and
       ``(ii) the Committee on Small Business and the Committee on 
     Science and Technology of the House of Representatives.''.

     SEC. 404. COMPETITIVE SELECTION PROCEDURES FOR SBIR AND STTR 
                   PROGRAMS.

       Section 9 of the Small Business Act (15 U.S.C. 638), as 
     amended by this Act, is amended by adding at the end the 
     following:
       ``(jj) Competitive Selection Procedures for SBIR and STTR 
     Programs.--All funds awarded, appropriated, or otherwise made 
     available in accordance with subsection (f) or (n) must be 
     awarded pursuant to competitive and merit-based selection 
     procedures.''.

                          ____________________