[Congressional Record Volume 163, Number 163 (Wednesday, October 11, 2017)]
[House]
[Pages H7939-H7945]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
THE SMALL BUSINESS INNOVATION RESEARCH AND SMALL BUSINESS TECHNOLOGY
TRANSFER IMPROVEMENTS ACT OF 2017
Mr. CHABOT. Mr. Speaker, I move to suspend the rules and pass the
bill (H.R. 2763) to amend the Small Business Act to improve the Small
Business Innovation Research program and Small Business Technology
Transfer program, and for other purposes, as amended.
The Clerk read the title of the bill.
The text of the bill is as follows:
H.R. 2763
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as ``The Small
Business Innovation Research and Small Business Technology
Transfer Improvements Act of 2017''.
(b) Table of Contents.--The table of contents for this Act
is as follows:
Sec. 1. Short title, table of contents.
Sec. 2. Requiring insertion incentives.
Sec. 3. Additional SBIR and STTR technology insertion reporting
requirement.
Sec. 4. Encouraging innovation in United States manufacturing.
Sec. 5. Encouraging innovation in cybersecurity.
Sec. 6. Compliance of Phase III awards with competitive procedures.
[[Page H7940]]
Sec. 7. Improvements to technical and business assistance in the SBIR
and STTR programs.
Sec. 8. Procurement center representatives and other acquisition
personnel in the SBIR and STTR programs.
Sec. 9. Increased outreach requirements.
Sec. 10. Annual meeting.
Sec. 11. Establishing the Civilian Agency Commercialization Readiness
Program.
Sec. 12. Commercialization assistance pilot programs.
Sec. 13. Phase 0 Proof of Concept Partnership Pilot Program.
Sec. 14. Reporting requirements.
Sec. 15. SBIR Phase flexibility.
Sec. 16. Extension of deadline for assistance for administrative,
oversight, and contract processing costs.
SEC. 2. REQUIRING INSERTION INCENTIVES.
Section 9(y)(5) of the Small Business Act (15 U.S.C.
638(y)(5)) is amended by striking ``is authorized to'' and
inserting. ``shall''.
SEC. 3. ADDITIONAL SBIR AND STTR TECHNOLOGY INSERTION
REPORTING REQUIREMENT.
Section 9(y)(6) of the Small Business Act (15 U.S.C.
638(y)(6)) is amended--
(1) in subparagraph (B), by striking ``and'' at the end;
(2) in subparagraph (C)(iii), by striking the period at the
end and inserting ``; and''; and
(3) by adding at the end the following new subparagraph:
``(D) not later than 120 days after the date of the
enactment of this subparagraph, and not later than December
31 of each year thereafter, submit to the Committee on
Science, Space, and Technology and the Committee on Small
Business of the House of Representatives, and to the
Committee on Small Business and Entrepreneurship of the
Senate, a report describing the goals set under subparagraph
(A) and the incentives used or created under subparagraph
(B).''.
SEC. 4. ENCOURAGING INNOVATION IN UNITED STATES
MANUFACTURING.
Section 9 of the Small Business Act (15 U.S.C. 638) is
amended by adding at the end the following new subsection:
``(tt) Encouraging Innovation in United States
Manufacturing.--In carrying out this section, the
Administrator shall--
``(1) ensure that, in selecting small business concerns to
participate in SBIR or STTR programs under this section,
Federal agencies give high priority to small manufacturing
companies and other small business concerns engaged in or
planning to engage in manufacturing research and development
for the purpose of developing and producing new products and
technologies in the United States; and''
``(2) include in the annual report to Congress under
subsection (b)(7) a determination of whether the priority
described in paragraph (1) is being carried out.''.
SEC. 5. ENCOURAGING INNOVATION IN CYBERSECURITY.
Section 9 of the Small Business Act (15 U.S.C. 638), as
amended by section 4, is further amended by adding at the end
the following new subsection.
``(uu) Encouraging Innovation in Cybersecurity.--In
carrying out this section, the Administrator shall--
``(1) ensure that, in selecting small business concerns to
participate in SBIR or STIR programs under this section,
Federal agencies engaged in cybersecurity research give high
priority to small business concerns that are engaged in
cybersecurity research and development, for the purpose of
developing and implementing technology services and products
to strengthen the security of United States Government and
private computer systems, including software, hardware, and
portable devices; and
``(2) include in the annual report to Congress under
subsection (b)(7) a determination of whether the priority
described in paragraph (1) is being carried out.''
SEC. 6. COMPLIANCE OF PHASE III AWARDS WITH COMPETITIVE
PROCEDURES.
Section 9(r)(4) of the Small Business Act (15 U.S.C.
638(r)(4)) is amended by inserting ``as direct follow-on
awards issued without further competition'' after ``developed
the technology''
SEC. 7. IMPROVEMENTS TO TECHNICAL AND BUSINESS ASSISTANCE IN
THE SBIR AND STTR PROGRAMS.
Section 9(q) of the Small Business Act (15 U.S.C. 638(q))
is amended--
(1) in the subsection heading, by inserting ``and
Business'' after ``Technical'';
(2) in paragraph (1)--
(A) in the matter preceding subparagraph (A)--
(i) by striking ``a vendor selected under paragraph (2)''
and inserting ``1 or more vendors selected under paragraph
(2)(A)'';
(ii) by inserting ``and business'' before ``assistance
services''; and
(iii) by inserting ``assistance with product sales,
intellectual property protections, market research, market
validation, and development of regulatory plans and
manufacturing plans,'' after ``technologies,''; and
(B) in subparagraph (D), by inserting ``, including
intellectual property protections'' before the period at the
end;
(3) in paragraph (2)--
(A) by striking ``Each agency may select a vendor to assist
small business concerns to meet'' and inserting the
following:
``(A) In General.--Each agency may select 1 or more vendors
from which small business concerns may obtain assistance in
meeting''; and
(B) by adding at the end the following new subparagraph:
(B) Selection by small business concern.--A small business
concern may, by contract or otherwise, select 1 or more
vendors to assist the small business concern in meeting the
goals listed in paragraph (1).''; and
(4) in paragraph (3)--
(A) by inserting ``(A)'' after ``paragraph (2)'' each place
it appears;
(B) in subparagraph (A), by striking ``$5,000 per year''
each place it appears and inserting ``$6,500 per project'';
(C) in subparagraph (B)--
(i) by striking ``$5,000 per year'' each place it appears
and inserting ``$35,000 per project''; and
(ii) in clause (ii), by striking ``which shall be in
addition to the amount of the recipient's award'' and
inserting ``which may, as determined appropriate by the head
of the agency, be included as part of the recipient's award
or be in addition to the amount of the recipient's award'';
(D) in subparagraph (C)--
(i) by inserting ``or business'' after ``technical'';
(ii) by striking ``the vendor'' and inserting ``a vendor'';
and
(iii) by adding at the end the following: ``Business-
related services aimed at improving the commercialization
success of a small business concern may be obtained from an
entity, such as a public or private organization or an agency
of or other entity established or funded by a State that
facilitates or accelerates the commercialization of
technologies or assists in the creation and growth of private
enterprises that are commercializing technology.'';
(E) in subparagraph (D)--
(i) by inserting ``or business'' after ``technical'' each
place it appears; and
(ii) in clause (i), by striking ``the vendor'' and
inserting ``1 or more vendors''; and
(F) by adding at the end the following new subparagraph:
(E) Multiple award recipients.--The Administrator shall
establish a limit on the amount of technical and business
assistance services that may be received or purchased under
subparagraph (B) by a small business concern that has
received multiple Phase II SBIR or STTR awards for a fiscal
year.''.
SEC. 8. PROCUREMENT CENTER REPRESENTATIVES AND OTHER
ACQUISITION PERSONNEL IN THE SBIR AND STTR
PROGRAMS.
(a) Definition of Senior Procurement Executive.--Section
9(e) of the Small Business Act (15 U.S.C. 638(e)) is
amended--
(1) in paragraph (12)(B), by striking ``and'' at the end;
(2) in paragraph (13)(B), by striking the period at the end
and inserting ``; and''; and
(3) by adding at the end the following new paragraph:
``(14) the term `senior procurement executive' means an
official designated under section 1702(c) of title 41, United
States Code, as the senior procurement executive of a Federal
agency participating in a SBIR or STTR program.''.
(b) Inclusion of Senior Procurement Executives in SBIR and
STTR.--
(1) In general.--Section 9(b) of the Small Business Act (15
U.S.C. 638(b)) is amended--
(A) in paragraph (8), by striking ``and'' at the end;
(B) in paragraph (9), by striking the period at the end and
inserting ``; and''; and
(C) by adding at the end the following new paragraph:
``(10) to coordinate, where appropriate, with the senior
procurement executive of the relevant Federal agency to
assist small business concerns participating in a SBIR or
STTR program with commercializing research developed under
such a program before such small business concern is awarded
a contract from such Federal agency.''.
(2) Technical amendment.--Section 9(b)(3) of the Small
Business Act (15 U.S.C. 638(b)(3)) is amended by striking
``and'' at the end.
(c) Modifications Relating to Procurement Center
Representatives and Other Acquisition Personnel.--
(1) SBIR amendment.--Section 9(j) of the Small Business Act
(15 U.S.C. 638(j)) is amended by adding at the end the
following new paragraph:
``(4) Modifications relating to procurement center
representatives.--Upon the enactment of this paragraph, the
Administrator shall modify the policy directives issued
pursuant to this subsection to require procurement center
representatives (as described in section 15(l)) to coordinate
with the appropriate contracting officer or SBIR program
officer, and the appropriate Director of Small and
Disadvantaged Business Utilization established pursuant to
section 15(k) for the agency letting the contract, to assist
small business concerns participating in the SBIR program,
particularly in Phase III. The procurement center
representatives shall coordinate with the appropriate
contracting officer and the appropriate Director of the
Office of Small and Disadvantaged Business Utilization
established pursuant to section 15(k) for the agency letting
the contract.''.
(2) STTR amendment.--Section 9(p)(2) of the Small Business
Act (15 U.S.C. 638(p)(2)) is amended--
(A) in subparagraph (E)(ii), by striking ``and'' at the
end;
(B) in subparagraph (F), by striking the period at the end
and inserting a semicolon; and
(C) by adding at the end the following new subparagraph:
[[Page H7941]]
``(G) procedures to ensure that procurement center
representatives (as described in section 15(l))--
``(i) coordinate with the appropriate contracting officer
or STTR program officer, and the appropriate Director of
Small and Disadvantaged Business Utilization established
pursuant to section 15(k) for the agency letting the
contract, to assist small business concerns participating in
the STTR program, particularly in Phase III; and
``(ii) coordinate with the appropriate contracting officer
and the appropriate Director of the Office of Small and
Disadvantaged Business Utilization established pursuant to
section 15(k) for the Federal agency letting the contract in
providing the assistance described in clause (i); and''.
(d) Amendment to Duties of Procurement Center
Representatives.--Section 15(l)(2) of the Small Business Act
(15 U.S.C. 644(l)(2)) is amended--
(1) in subparagraph (I), by striking ``and'' at the end;
(2) by redesignating subparagraph (J) as subparagraph (L);
and
(3) by inserting after subparagraph (I) the following new
subparagraphs:
``(J) coordinate with the appropriate contracting officer
or SBIR or STTR program officer, and the appropriate Director
of Small and Disadvantaged Business Utilization established
pursuant to section 15(k) for the agency letting the
contract, to assist small business concerns participating in
a SBIR or STTR program under section 9 with Phase III;
``(K) coordinate with the appropriate contracting officer
and the appropriate Director of the Office of Small and
Disadvantaged Business Utilization established pursuant to
subsection (k) for the agency letting the contract; and''.
(e) Amendment to the Duties of the Director of Small and
Disadvantaged Business Utilization for Federal Agencies.--
Section 15(k) of the Small Business Act (15 U.S.C. 644(k)) is
amended--
(1) in paragraph (19), by striking ``and'' at the end;
(2) in paragraph (20), by striking the period at the end
and inserting a semicolon; and
(3) by adding at the end the following new paragraphs:
``(21) shall coordinate with the appropriate contracting
officer of SBIR or STTR program officer to assist small
business concerns participating in a SBIR or STTR program
under section 9 with researching applicable solicitations for
the award of a Federal contract (particularly with the
Federal agency that has a funding agreement (as defined under
section 9) with the concern) to market the research developed
by such concern under such SBIR or STTR program; and
``(22) shall provide technical assistance to small business
concerns participating in a SBIR or STTR program under
section 9 to submit a bid for an award of a Federal contract,
including coordination with procurement center
representatives and the appropriate senior procurement
executive for the agency letting the contract.''.
SEC. 9. INCREASED OUTREACH REQUIREMENTS.
(a) In General.--
(1) SBIR amendment.--Section 9(j) of the Small Business Act
(15 U.S.C. 638(j)), as amended by section 8, is further
amended by adding at the end the following new paragraph:
``(5) Increased outreach requirements.--Upon the enactment
of this paragraph, the Administrator shall modify the policy
directives issued pursuant to this subsection to require
outreach efforts to increase the participation in
technological innovation under the SBIR programs among
individuals conducting research at minority institutions (as
defined in section 365(3) of the Higher Education Act of
1965) and Hispanic-serving institutions (as defined in
section 502(a)(5) of such Act).''.
(2) STTR amendment.--Section 9(p)(2) of the Small Business
Act (15 U.S.C. 638(p)(2)), as amended by section 8, is
further amended by adding at the end the following new
subparagraph:
``(H) procedures for outreach efforts to increase the
participation in technological innovation under the SBIR
programs among individuals conducting research at minority
institutions (as defined in section 365(3) of the Higher
Education Act of 1965) and Hispanic-serving institutions (as
defined in section 502(a)(5) of such Act).''.
(b) Funding for Outreach.--Section 9(mm)(1) of the Small
Business Act (15 U.S.C. 638(mm)(1)) is amended--
(1) in subparagraph (I), by striking the ``and'' at the
end;
(2) in subparagraph (J), by striking the period at the end
and inserting a semicolon; and
(3) by adding at the end the following new subparagraph:
``(K) the outreach efforts described under subsections
(j)(4) and (p)(2)(G); and''.
SEC. 10. ANNUAL MEETING.
(a) In General.--Section 9 of the Small Business Act (15
U.S.C. 638), as amended by section 5, is further amended by
adding at the end the following new subsection:
``(vv) Annual Meeting.--
``(1) In general.--The head of each Federal agency required
to have a program under this section (or a designee) and the
Administrator (or a designee) shall meet annually to discuss
methods--
``(A) to improve the collection of data under this section;
``(B) to improve the reporting of data to the Administrator
under this section;
``(C) to make the application processes for programs under
this section more efficient; and
``(D) to increase participation in the programs established
under this section.
``(2) Report.--Not later than 60 days after the date on
which an annual meeting required under paragraph (1) is held,
the Administrator shall submit to the Committee on Small
Business and Entrepreneurship of the Senate and the Committee
on Small Business and the Committee on Science, Space, and
Technology of the House of Representatives, a report on the
findings of such meeting and recommendations on how to
implement changes to programs under this section.''.
(b) Funding for Annual Meeting.--Section 9(mm)(1) of the
Small Business Act (15 U.S.C. 638(mm)(1)) as amended by
section 9, is further amended by adding at the end the
following new subparagraph:
``(L) the annual meeting required under subsection (vv).''.
SEC. 11. ESTABLISHING THE CIVILIAN AGENCY COMMERCIALIZATION
READINESS PROGRAM.
Section 9(gg) of the Small Business Act (15 U.S.C. 638(gg))
is amended--
(1) by amending the subsection heading to read as follows:
``Civilian Agency Commercialization Readiness Program'';
(2) in paragraph (1), by inserting ``to establish a
Civilian Agency Commercialization Readiness Program for
civilian agencies'' after ``the covered Federal agency'';
(3) in paragraph (2)(A)--
(A) by striking ``establish a pilot program'' and inserting
``establish a Civilian Agency Commercialization Readiness
Program under this subsection''; and
(B) by striking ``the pilot program'' and inserting ``such
Civilian Agency Commercialization Readiness Program'';
(4) in paragraphs (3) and (4), by striking ``a pilot
program'' each place such term appears and inserting ``a
Civilian Commercialization Readiness Program'';
(5) in paragraph (6), by striking ``the pilot program'' and
inserting ``a Civilian Agency Commercialization Readiness
Program'';
(6) by striking. paragraph (7) and redesignating paragraph
(8) as paragraph (7); and
(7) in paragraph (7) (as so redesignated), by amending
subparagraph (B) to read as follows:
``(B) the term `Civilian Agency Commercialization Readiness
Program' means each program established under paragraph
(1).''.
SEC. 12. COMMERCIALIZATION ASSISTANCE PILOT PROGRAMS.
Section 9 of the Small Business Act (15 U.S.C. 638), as
amended by section 10, is further amended by adding at the
end the following new subsection:
``(ww) Commercialization Assistance Pilot Programs.--
``(1) Pilot programs implemented.--
``(A) In general.--Except as provided in subparagraph (B),
not later than one year after the date of the enactment of
this subsection, a covered agency shall implement a
commercialization assistance pilot program, under which an
eligible entity may receive a subsequent Phase II SBIR award.
``(B) Exception.--If the Administrator determines that a
covered agency has a program that is sufficiently similar to
the commercialization assistance pilot program established
under this subsection, such covered agency shall not be
required to implement a commercialization assistance pilot
program under this subsection.
``(2) Percent of agency funds.--The head of each covered
agency may allocate not more than 5 percent of the funds
allocated to the SBIR program of the covered agency for the
purpose of making a subsequent Phase II SBIR award under the
commercialization assistance pilot program.
``(3) Termination.--A commercialization assistance pilot
program established under this subsection shall terminate on
September 30, 2022.
``(4) Application.--To be selected to receive a subsequent
Phase II SBIR award under a commercialization assistance
pilot program, an eligible entity shall submit to the covered
agency implementing such pilot program an application at such
time, in such manner, and containing such information as the
covered agency may require, including--
``(A) an updated Phase II commercialization plan; and
``(B) the source and amount of the matching funding
required under paragraph (5).
``(5) Matching funding.--
``(A) In general.--The Administrator shall require, as a
condition of any subsequent Phase II SBIR award made to an
eligible entity under this subsection, that a matching amount
(excluding any fees collected by the eligible entity
receiving such award) equal to the amount of such award be
provided from an eligible third-party investor.
``(B) Ineligible sources.--An eligible entity may not use
funding from ineligible sources to meet the matching
requirement of subparagraph (A).
``(6) Award.--A subsequent Phase II SBIR award made to an
eligible entity under this sub-section--
``(A) may not exceed the limitation described under
subsection (aa)(1); and
``(B) shall be disbursed during Phase II.
``(7) Use of funds.--The funds awarded to an eligible
entity under this subsection may only be used for research
and development activities that build on eligible entity's
Phase II program and ensure the research funded under such
Phase II is rapidly progressing towards commercialization.
[[Page H7942]]
``(8) Selection.--In selecting eligible entities to
participate in a commercialization assistance pilot program
under this subsection, the head of a covered agency shall
consider--
``(A) the extent to which such award could aid the eligible
entity in commercializing the research funded under the
eligible entity's Phase II program;
``(B) whether the updated Phase II commercialization plan
submitted under paragraph (4) provides a sound approach for
establishing technical feasibility that could lead to
commercialization of such research;
``(C) whether the proposed activities to be conducted under
such updated Phase II commercialization plan further improve
the likelihood that such research will provide societal
benefits;
``(D) whether the small business concern has progressed
satisfactorily in Phase II to justify receipt of a subsequent
Phase II SBIR award;
``(E) the expectations of the eligible third-party investor
that provides matching funding under paragraph (5); and
``(F) the likelihood that the proposed activities to be
conducted under such updated Phase II commercialization plan
using matching funding provided by such eligible third-party
investor will lead to commercial and societal benefit.
``(9) Evaluation report.--Not later than 3 years after the
date of the enactment of this subsection, the Comptroller
General of the United States shall submit to the Committee on
Science, Space, and Technology and the Committee on Small
Business of the House of Representatives, and the Committee
on Small Business and Entrepreneurship of the Senate, a
report including--
``(A) a summary of the activities of commercialization
assistance pilot programs carried out under this subsection;
``(B) a detailed compilation of results achieved by such
commercialization assistance pilot programs, including the
number of eligible entities that received awards under such
programs;
``(C) the rate at which each eligible entity that received
a subsequent Phase II SBIR award under this subsection
commercialized research of the recipient;
``(D) the growth in employment and revenue of eligible
entities that is attributable to participation in a
commercialization assistance pilot program;
``(E) a comparison of commercialization success of eligible
entities participating in a commercialization assistance
pilot program with recipients of an additional Phase II SBIR
award under subsection (ff);
``(F) demographic information, such as ethnicity and
geographic location, of eligible entities participating in a
commercialization assistance pilot program;
``(G) an accounting of the funds used at each covered
agency that implements a commercialization assistance pilot
program under this subsection;
``(H) the amount of matching funding provided by eligible
third-party investors, set forth separately by source of
funding;
``(I) an analysis of the effectiveness of the
commercialization assistance pilot program implemented by
each covered agency; and
``(J) recommendations for improvements to the
commercialization assistance pilot program.
``(10) Definitions.--For purposes of this subsection:
``(A) Covered agency.--The term `covered agency' means a
Federal agency required to have an SBIR program.
``(B) Eligible entity.--The term `eligible entity' means a
small business concern that has received a Phase II award
under an SBIR program and an additional Phase II SBIR award
under subsection (ff) from the covered agency to which such
small business concern is applying for a subsequent Phase II
SBIR award.
``(C) Eligible third-party investor.--The term `eligible
third-party investor' means a small business concern other
than an eligible entity, a venture capital firm, an
individual investor, a non-SBIR Federal, State or local
government, or any combination thereof.
``(D) Ineligible sources.--The term `ineligible sources'
means the following:
``(i) The eligible entity's internal research and
development funds.
``(ii) Funding in forms other than cash, such as in-kind or
other intangible assets.
``(iii) Funding from the owners of the eligible entity, or
the family members or affiliates of such owners.
``(iv) Funding attained through loans or other forms of
debt obligations.
``(E) Subsequent phase ii sbir award.--The term `subsequent
Phase II SBIR award' means an award granted to an eligible
entity under tins subsection to carry out further
commercialization activities for research conducted pursuant
to an SBIR program.''.
SEC. 13. PHASE 0 PROOF OF CONCEPT PARTNERSHIP PILOT PROGRAM.
(a) Inclusion of Additional Agencies in Pilot Program.--
Section 9(jj) of the Small Business Act (15 U.S.C. 638(jj) is
amended--
(1) in paragraph (1)--
(A) by striking ``The Director of the National Institutes
of Health'' and inserting ``Each covered agency head''; and
(B) by striking ``the Director'' and inserting ``each
covered agency head'';
(2) by amending subparagraph (A) of paragraph (2) to read
as follows:
``(A) the term `covered agency head' means the Director of
the National Institutes of Health, the Director of the
National Science Foundation, the Administrator of the
National Aeronautics and Space Administration and the
Secretary of Energy;'';
(3) in paragraph (4)--
(A) in subparagraph (A), by striking ``The Director'' and
inserting ``Each covered agency head''; and
(B) in subparagraph (B), by striking ``the Director shall
consider, in addition to any other criteria the Director''
and inserting ``each covered agency head shall consider, in
addition to any other criteria the appropriate covered agency
head''; and
(4) in paragraph (6), by striking ``The Director'' and
inserting ``Each covered agency head''.
(b) Extension of Pilot Program Authority.--Section 9(jj)(7)
of the Small Business Act (15 U.S.C. 638(jj)(7)) is amended
by striking ``fiscal year 2017'' and inserting ``fiscal year
2022''.
SEC. 14. REPORTING REQUIREMENTS.
(a) Annual Report to Congress.--Section 9(b)(7) of the
Small Business Act (15 U.S.C. 638(b)(7)) is amended by
striking ``to report not less than annually'' and inserting
``to submit a report not later than December 31 of each
year''.
(b) Annual Report to SBA and the Office of Science and
Technology Policy.--Section 9(g)(9) of the Small Business Act
(15 U.S.C. 638(g)(9)) is amended--
(1) by striking ``make an annual report'' and inserting
``not later than March 30 of each year, submit a report'';
and
(2) by striking ``and the Office of Science and Technology
Policy'' and inserting ``, the Office of Science and
Technology Policy, the Committee on Science, Space, and
Technology and the Committee on Small Business of the House
of Representatives, and the Committee on Small Business and
Entrepreneurship of the Senate''.
SEC. 15. SBIR PHASE FLEXIBILITY.
Section 9(cc) of the Small Business Act (15 U.S.C. 638(cc))
is amended by striking ``During fiscal years'' and all that
follows through ``may each provide'' and inserting ``During
fiscal years 2018 through 2022, all agencies participating in
the SBIR program may provide''.
SEC. 16. EXTENSION OF DEADLINE FOR ASSISTANCE FOR
ADMINISTRATIVE, OVERSIGHT, AND CONTRACT
PROCESSING COSTS.
Section 9(mm)(1) of the Small Business Act (15 U.S.C.
638(mm)(1)), as amended by this Act, is further amended by
striking ``September 30, 2017'' and inserting ``September 30,
2022''.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Ohio (Mr. Chabot) and the gentlewoman from Florida (Mrs. Murphy) each
will control 20 minutes.
The Chair recognizes the gentleman from Ohio.
General Leave
Mr. CHABOT. Mr. Speaker, I ask unanimous consent that all Members may
have 5 legislative days to revise and extend their remarks and include
extraneous material on the bill under consideration.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Ohio?
There was no objection.
Mr. CHABOT. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, this bipartisan legislation introduced by Chairman
Knight and Ranking Member Murphy of the Committee on Small Business'
Subcommittee on Contracting and Workforce aims to modernize and improve
the Small Business Innovation Research and Small Business Technology
Transfer, or SBIR and STTR, programs.
The SBIR and STTR programs have helped thousands of small businesses
create new technologies, commercialize their ideas, and generate new
jobs. While creating these benefits in the private sector, the programs
offer, in a cost-effective manner, ways for Federal agencies to solve
operational problems. H.R. 2763 strengthens these two programs in quite
a few ways.
First, the bill emphasizes agency accountability by creating several
firm reporting deadlines for covered agencies and for the SBA to
provide future Congresses with improved information that will lead to a
better understanding of the programs' strengths and weaknesses.
Second, the legislation clarifies the congressional intent of the
2011 reauthorization to ensure that taxpayers reap the benefits of the
SBIR and STTR programs by binding the technologies developed in the
programs to long-term projects at the Department of Defense.
Third, the legislation extends a popular pilot program included in
the 2011 reauthorization that would allow all participating Federal
agencies to award a phase II contract immediately if the agency finds
that the small business concern has already completed work typically
done during phase I.
Fourth, it makes permanent the option for all participating agencies
to
[[Page H7943]]
establish commercialization readiness programs, or CRPs. As a pilot
program from the 2011 reauthorization, these CRPs have been shown to
provide much-needed support to small companies nearing the completion
of the process and have helped advance technology to the
commercialization phase.
Fifth, it extends, through 2022, the provision that allows
participating agencies to utilize 3 percent of their allocation for
administrative functions, conduct outreach in an effort to bring more
companies into the SBIR and STTR programs, and increase deterrents to
waste, fraud, and abuse.
I want to thank Congressman Knight and Congresswoman Murphy for the
bipartisan work on this important legislation. I would also like to
thank Chairman Smith and Ranking Member Johnson of the Committee on
Science, Space, and Technology, as well as Chairwoman Comstock and
Ranking Member Lipinski of the Subcommittee on Research and Technology,
for working together with us to produce this bipartisan bill that we
have before us this afternoon.
I urge my colleagues to support the bill, and I reserve the balance
of my time.
Mrs. MURPHY of Florida. Mr. Speaker, I yield myself such time as I
may consume.
Mr. Speaker, I rise in support of H.R. 2763, The Small Business
Innovation Research and Small Business Technology Transfer Improvements
Act, which will modernize two programs that provide Federal funding to
small technologically advanced firms to research and develop innovative
products.
I am proud to have cosponsored this legislation with Congressman
Steve Knight, and I am encouraged that my colleagues on the Small
Business Committee and the House Science, Space, and Technology
Committee on both sides of the aisle support the bill.
For decades, American innovation and ingenuity have bolstered our
economic growth and solidified our country's status as a global leader
in technology; and for more than 30 years, the Small Business
Innovation Research and Small Business Technology Transfer programs
have provided a critical source of funding to small businesses that
engage in research and development. These initiatives were established
to help spur innovation and job creation throughout the country.
Since the inception of the programs, more than $40 billion has been
awarded to small, innovative firms to address our Nation's most
important research and development challenges. Because of the high-risk
nature of their ventures, SBIR and STTR grantees receive R&D funding
that might otherwise be unavailable in the private sector.
As a direct result of the Federal investment in these programs,
breakthroughs have been made in a wide range of sectors, including
agriculture, defense, energy, and healthcare. In turn, these
discoveries have generated tremendous economic growth and job
opportunities across the country, including in central Florida.
For many research companies in my district, these two programs serve
as a gateway to the Federal contracting field. That is why I am honored
to have cosponsored this bipartisan legislation.
The final bill reflects bipartisan compromises and input from both
committees of jurisdiction. Most importantly, it includes many
provisions focused on developing innovative products that support
important national priorities and that can be sold on the commercial
market.
To improve oversight of the program, the bill requires the Small
Business Administration to submit an annual report to Congress no later
than December 31 of each year. This will enable us to better account
for the use of funds and to better assess the progress of SBIR and STTR
initiatives at participating agencies.
Another provision makes permanent the pilot program that establishes
the Civilian Agency Commercialization Readiness program, which allows
up to 10 percent of agency administrative dollars for sequential phase
II awards to eligible businesses.
Finally, the bill includes an amendment that I authored to require
participating Federal agencies to take additional steps to educate
small firms about the SBIR and STTR programs and to encourage more
small firms to apply for funding.
After more than a decade of fits and starts with these two programs,
H.R. 2763 will make program improvements and provide much-needed
certainty to small businesses seeking to commercialize. By authorizing
the administrative fee to run these programs for an additional 5 years
beyond its current authorization, Congress is taking proactive steps to
give small firms the confidence they need to continue developing
innovative products.
I respectfully ask my colleagues to vote for this bill.
Mr. Speaker, I reserve the balance of my time.
Mr. CHABOT. Mr. Speaker, I yield such time as he may consume to the
gentleman from California (Mr. Knight), who is the chairman of the
Subcommittee on Contracting and Workforce on the Small Business
Committee.
Mr. KNIGHT. Mr. Speaker, I want to thank the chairman for his hard
work and for his leadership, and I want to thank my partner in this,
Congresswoman Murphy, for her cosponsoring of this bill and for her
work on this important piece of legislation.
A 21st century military requires a 21st century acquisition process,
one that is agile, efficient, and effective. I represent California's
25th District, and nowhere will you find a more exemplary place that
demonstrates the important role that small businesses play in both our
aerospace and defense industrial base.
{time} 1430
I see firsthand the innovative effect small businesses make and how
they can positively impact government functioning.
The Small Business Innovation Research and Small Business Technology
Transfer--SBIR and STTR--programs are critical to this impact. Now that
these programs have been reauthorized until 2022, it is important that
we continue to focus on spurring innovation.
That is why I introduced H.R. 2763, the Small Business Innovation
Research and Small Business Technology Transfer Improvements Act of
2017. My bill reinforces agency accountability by requiring the Small
Business Administration to provide Congress with better information and
reasonable, hard deadlines. It clarifies congressional intent of the
previous authorization to ensure that taxpayers reap the benefits of
SBIR and STTR programs by tying them to long-term projects at the DOD.
It also allows participating agencies to establish a new, separate
commercialization assistance pilot program and extends three popular
pilot programs through FY 2022, when the full program will need a full
reauthorization.
With the use of SBIR and STTR programs, we can increase small
business participation in the defense and aerospace industry while
tapping into the true potential their American innovative spirit
represents.
Mr. Speaker, I urge my colleagues to support this legislation and to
vote ``yes'' on H.R. 2763, the Small Business Innovation Research and
Small Business Technology Transfer Improvements Act.
Mrs. MURPHY of Florida. Mr. Speaker, I yield 2 minutes to the
gentlewoman from Texas (Ms. Eddie Bernice Johnson), the ranking member
of the Science, Space, and Technology Committee.
Ms. EDDIE BERNICE JOHNSON of Texas. Mr. Speaker, I rise today to
support H.R. 2763, the Small Business Innovation Research and Small
Business Technology Transfer Improvements Act of 2017.
Mr. Speaker, I thank Chairman Chabot, Ranking Member Velazquez,
Chairman Smith, and all other colleagues on both committees for their
work to advance this bipartisan piece to the House floor.
SBIR and STTR are valuable programs that provide competitive research
and development grants and contracts to innovative small businesses.
Stability and continuity in the SBIR and STTR programs are important
goals, which is why I supported the agreement in last year's National
Defense Authorization Act to extend the program until fiscal year 2022
at the current allocation level.
In H.R. 2763, the two authorizing committees have come to agreement
on a number of policy improvements and some strengthened oversight for
the programs.
[[Page H7944]]
The policy changes in H.R. 2763 advances sensible ways to further
leverage small business R&D to help meet Federal mission needs, as well
as contribute more broadly to U.S. innovation and economic growth. The
bill includes continued support for early-stage funding for
entrepreneurial researchers, provides funding for important agency
outreach and administrative activities, streamlines reporting
requirements, ensures agency outreach for researchers at minority-
serving institutions, and authorizes several additional activities to
support implementation of the program.
I am particularly pleased that the bill includes a provision to
address current agency shortfalls in fostering the participation of
women and minority-owned firms. Fostering diversity in STEM research
and innovation is an economic imperative.
The SPEAKER pro tempore. The time of the gentlewoman has expired.
Mrs. MURPHY of Florida. Mr. Speaker, I yield an additional 1 minute
to the gentlewoman.
Ms. EDDIE BERNICE JOHNSON of Texas. Mr. Speaker, we must continue to
encourage such policies.
H.R. 2763 is a good bill that improves the SBIR program and maximizes
the benefits of federally funded small business R&D.
Mr. Speaker, I urge my colleagues to support this bill.
Mr. CHABOT. Mr. Speaker, I continue to reserve the balance of my
time.
Mrs. MURPHY of Florida. Mr. Speaker, I yield 3 minutes to the
gentleman from Illinois (Mr. Lipinski).
Mr. LIPINSKI. Mr. Speaker, I thank Chairmen Chabot and Smith and
Ranking Members Velazquez and Johnson for their leadership on this
bill.
The SBIR and STTR programs have helped countless innovative small
businesses grow jobs through American ingenuity. This bill will make
these programs work even better by providing small businesses with
additional tools for bringing innovations to market. Better SBIR and
STTR programs mean more successful small businesses and more jobs.
I especially want to thank my colleagues for supporting inclusion of
two provisions that I put forward in committee.
First, the bill increases the amount of money that grant recipients
are allowed to spend on business and technical services, like market
research, intellectual property protection; or participation in
entrepreneurial training programs, like the highly successful
Innovation Corps program. This helps small businesses, especially
startups, use their funds where they know they are needed most, for
technical assistance, creative approaches to problem solving, and other
types of guidance needed in today's complex marketplaces.
Second, this bill expands the highly successful Phase 0 Proof of
Concept Partnership pilot program, which I helped create at the
National Institutes of Health in a previous SBIR reauthorization. This
highly successful program provides the earliest funding for researchers
exploring the possibility of turning their research into a viable
medical product.
After just 2 years in operation, the three hubs created by the NIH
program have filed 30 patent applications, negotiated 14 technology
licenses, formed 7 companies, and have 70 promising technologies in the
pipeline.
This bill extends the Phase 0 program for another 5 years at NIH and
expands it to the National Science Foundation, NASA, and the Department
of Energy. In doing so, we will be giving a needed boost to more
researchers who are budding entrepreneurs who will create the jobs of
tomorrow.
Mr. Speaker, our small businesses deserve support as they drive
America's economic growth. This bill will give innovators and
entrepreneurs additional tools to drive this growth that we so
desperately need. So I strongly urge my colleagues to support this
bill.
Mr. CHABOT. Mr. Speaker, I continue to reserve the balance of my
time.
Mrs. MURPHY of Florida. Mr. Speaker, I yield 2 minutes to the
gentleman from California (Mr. McNerney).
Mr. McNERNEY. Mr. Speaker, I thank the gentlewoman for yielding and
for her work on this small business bill. I also thank Chairmen Smith
and Chabot and Ranking Members Johnson and Velazquez for including my
amendment to benefit minority-serving institutions in H.R. 2763. This
is essential to retaining American leadership in innovation and small
business development.
The SBIR and STTR programs were both created to expand small business
participation in the Federal research mission. One of the four
objectives Congress had in mind in establishing the SBIR was to
facilitate and increase the participation of minority and disadvantaged
persons in technological innovation.
My amendment requires that the participating Federal agencies in the
SBIR and STTR programs conduct outreach to minority-serving
institutions--MSIs--and Hispanic-serving institutions and faculty
conducting research at these institutions so that participation rates
in Federal research and development opportunities will increase.
There are many great MSIs and researchers who work at these
institutions across the country. For example, California State
University Stanislaus, which has a campus in my district, is a
Hispanic-serving institution and an MSI, and has been ranked one of the
best colleges in our Nation. Our country depends on innovation of MSIs
and the intellectual capital of its graduates.
In the 21st century, American economic growth is going to be
determined by the innovation and growth of technology and STEM-focused
businesses. It is critical to the growth of our economy that minority-
serving institutions and minority-owned businesses are connected to
this technological ecosystem.
Mr. CHABOT. Mr. Speaker, I continue to reserve the balance of my
time.
Mrs. MURPHY of Florida. Mr. Speaker, I yield 2 minutes to the
gentleman from New York (Mr. Tonko).
Mr. TONKO. Mr. Speaker, I thank the gentlewoman for yielding.
Reauthorizing the SBIR and STTR programs are critical to supporting
our Nation's most forward-thinking entrepreneurs and innovators. I am
relieved that we are preserving the critical parts of the programs and
continuing to improve upon the programs themselves.
These programs have proven to be one of the most successful Federal
programs for technological innovation in United States history,
delivering more than 70,000 patents and valuable innovations in
agriculture, defense, energy, health sciences, homeland security,
space, transportation, and other fields.
Through Phase I and Phase II SBIR, countless jobs have been created
in the capital region of New York. It is through programs such as SBIR
that our region has developed the underpinnings of support for a boom
in high technology innovation and economic development.
One of many examples of this is Ecovative Design located within my
congressional district in Green Island, New York, which has benefitted
from the SBIR program over a number of years. These efforts will allow
the company to continue its work on a replacement of engineered wood
resins that will be economically competitive and nontoxic.
The resin system represents cost and energy savings, and is capable
of leveraging existing manufacturing equipment in production today.
This funding will help them deliver on the promise of this innovative
technology.
Gavin McIntyre, cofounder and chief scientist at Ecovative said:
``We're very excited to bring our new material technology to market and
displace toxic formaldehyde-based resins. The SBIR/STTR program was
fundamental to how Ecovative got its start and has enabled us to
continue to take risks and develop game-changing technology.''
While this bill is a positive step forward towards helping more small
businesses, we must do more to help other small businesses develop
these types of game-changing technologies.
I recognize the value of research and I will fight to see more
funding for all these agencies and, in turn, more funding for the SBIR
and STTR programs.
Mr. CHABOT. Mr. Speaker, I continue to reserve the balance of my
time.
Mrs. MURPHY of Florida. Mr. Speaker, I have no further speakers and I
am prepared to close.
[[Page H7945]]
Mr. Speaker, supporting our entrepreneurs and small businesses are a
top priority for both sides of the aisle. Our bill will make it easier
for small firms that receive SBIR and STTR awards to bring their
products to market and achieve commercial success.
The SBIR and STTR programs are also critical to our economy, as they
support our Nation's job creators and ensure that our country continues
to produce cutting-edge research and development. This ingenuity is
what makes our country a global economic powerhouse.
These programs, while successful, can be improved. The bill before us
is a step in the right direction insofar as it will ensure that all
Federal agencies are enhancing efforts to help more small businesses
obtain SBIR and STTR funding and bring their innovative products to
market.
Therefore, I respectfully urge my colleagues to support this
bipartisan bill.
Mr. Speaker, I yield back the balance of my time.
Mr. CHABOT. Mr. Speaker, I thank all those who spoke on this
legislation, a very bipartisan, good legislation, here this afternoon
on the House floor.
In closing, whether it is new software system for tracking contract
payments or a new medical device to help with cancer treatments, or a
new piece of technology that literally saves lives on the battlefield,
the SBIR and STTR programs have consistently delivered results to
Federal agencies. They are worthy programs that do what they are
supposed to do, but we can always do better. This legislation improves
and modernizes these programs, and I ask that all of my colleagues
support it.
Mr. Speaker, I yield back the balance of my time.
Mr. SMITH of Texas. Mr. Speaker, I support H.R. 2763, the Small
Business Innovation Research and Small Business Technology Transfer
Improvements Act of 2017.
And I thank the gentleman from California, Mr. Knight, for
introducing this important legislation. He serves on the two Committees
that share jurisdiction over the SBIR and STTR programs: the Small
Business Committee, chaired by my good friend, Mr. Chabot, and the
Science, Space, and Technology Committee, which I chair.
Mr. Knight took the lead on last year's timely reauthorization of the
SBIR and STTR programs, and he is the sponsor of H.R. 2763, which makes
a number of needed policy changes to increase the programs' efficiency
and effectiveness.
The SBIR program was signed into law by President Reagan in 1982,
followed by the STTR program in 1992. These programs help spur economic
innovation and competitiveness, and increase small business
participation in federal research and development activity.
SBIR and STTR award winners convert the results of taxpayer-supported
pioneering research into products that are critical to our economic
competitiveness and national security. Recent examples include parts
for NASA's Mars Rover and a unique cockpit airbag system to protect
Army helicopter pilots.
Today 11 federal agencies provide funding to small businesses through
SBIR, and five agencies provide funding through STTR--a total of nearly
$3 billion this fiscal year. That's more than 66 times greater than the
$45 million spent under the original program in 1983.
Recipients of SBIR and STTR funding have boosted scientific and
technological innovation and created hundreds of thousands of American
jobs.
Several large, international companies like Qualcomm, Sonicare and
Symantec can trace their initial growth to when they were small
businesses that received SBIR and STTR support.
I want to call attention to two provisions of H.R. 2763 that were
added by Members of the Science Committee.
A provision authored by Mr. Hultgren requires participating federal
agencies to give priority to SBIR and STTR projects that will
strengthen American manufacturing innovation and increase manufacturing
jobs in our country.
A provision authored by Mr. Higgins requires federal agencies engaged
in cyber security research to give priority to SBIR and STTR projects
that will spur advances in cyber security to protect the American
people from increasingly aggressive and malicious cyber-attacks.
The legislation before us addresses a number of red flags raised by
the Government Accountability Office (GAO) about lax administration of
the SBIR and STTR programs.
Several participating agencies do not produce accurate, timely
information that Congress requires to evaluate program performance.
The U.S. Small Business Administration has not submitted its
required, comprehensive annual report to Congress since 2013.
The last administration provided virtually no information to Congress
and taxpayers about the SBIR and STTR programs.
It's reassuring that SBA associate administrator Joseph Shepard
promised during a joint hearing of our Committee and the Small Business
Committee that annual reports will be submitted on time.
Mr. Speaker, H.R. 2763 was unanimously approved by both the House
Small Business Committee and the House Science Committee. I urge all of
my colleagues to support it.
The SPEAKER pro tempore. The question is on the motion offered by the
gentleman from Ohio (Mr. Chabot) that the House suspend the rules and
pass the bill, H.R. 2763, as amended.
The question was taken; and (two-thirds being in the affirmative) the
rules were suspended and the bill, as amended, was passed.
A motion to reconsider was laid on the table.
____________________