[Congressional Record Volume 164, Number 158 (Tuesday, September 25, 2018)]
[House]
[Pages H8808-H8810]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                 ENCOURAGING SMALL BUSINESS INNOVATORS

  Mr. CHABOT. Mr. Speaker, I move to suspend the rules and pass the 
bill (H.R. 6368) to encourage R&D small business set-asides, to 
encourage SBIR and STTR participants to serve as mentors under the 
Small Business Administration's mentor-protege program, to promote the 
use of interagency contracts, and for other purposes, as amended.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                               H.R. 6368

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Encouraging Small Business 
     Innovators''.

     SEC. 2. INCLUDING TESTING AND EVALUATION IN THE DEFINITION OF 
                   R&D.

       Section 9(e)(5) of the Small Business Act (15 U.S.C. 
     638(e)(5)) is amended--
       (1) by redesignating subparagraphs (A), (B), and (C) as 
     clauses (i), (ii), and (iii), respectively;
       (2) by striking ``means any activity'' and inserting the 
     following: ``means--
       ``(A) any activity''; and
       (3) by adding at the end the following: ``and
       ``(B) any testing or evaluation in connection with such an 
     activity;''.

     SEC. 3. ENCOURAGING PARTICIPATION IN THE MENTOR-PROTEGE 
                   PROGRAM.

       Section 9 of the Small Business Act (15 U.S.C. 638) is 
     amended by adding at the end the following:
       ``(tt) Encouraging Participation in the Mentor-Protege 
     Program.--The Administrator shall provide an increase to the 
     past performance rating of any small business concern that 
     has participated in the SBIR or STTR program that serves as a 
     mentor under section 45 to a small business concern that 
     seeks to participate in the SBIR or STTR program.''.

     SEC. 4. PROMOTING THE USE OF GOVERNMENT-WIDE AND OTHER 
                   INTERAGENCY CONTRACTS.

       (a) Promoting Interagency Acquisitions.--Section 865 of the 
     Duncan Hunter National Defense Authorization Act for Fiscal 
     Year 2009 (Public Law 110-417) is amended--
       (1) in subsection (b)(1)--
       (A) by striking ``all interagency acquisitions'';
       (B) in subparagraph (A)--
       (i) by adding ``all interagency assisted acquisitions'' 
     before ``include''; and
       (ii) by adding ``and'' at the end;
       (C) by striking subparagraph (B);
       (D) by redesignating subparagraph (C) as subparagraph (B);
       (E) in subparagraph (B), as so redesignated, by adding 
     ``all interagency assisted acquisitions'' before ``include''; 
     and
       (2) in subsection (d), by adding at the end the following:
       ``(5) The term `assisted acquisition' means a type of 
     interagency acquisition where a servicing agency performs 
     acquisition activities on a requesting agency's behalf, such 
     as awarding and administering a contract, task order, or 
     delivery order.''.
       (b) GSA Assistance With Certain Small Business Contract 
     Awards.--
       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:
       ``(uu) GSA Assistance With Certain Small Business Contract 
     Awards.--The Administrator of the General Services 
     Administration may assist another agency with the process of 
     awarding a contract to a small business concern under the 
     SBIR or STTR program or under a small business set-aside.''.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Ohio (Mr. Chabot) and the gentlewoman from New York (Ms. Velazquez) 
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 
have 5 legislative days to revise and extend their remarks and include 
extraneous materials 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 was introduced by the 
gentleman from New York (Mr. Espaillat) and cosponsored by the 
gentleman from South Carolina (Mr. Norman), so it is bipartisan. I 
thank the gentlemen, both of them, for their leadership on this 
important issue.
  This legislation would make small but important changes to the Small 
Business Innovation Research, or SBIR, and the Small Business 
Technology Transfer, or STTR, programs.
  A healthy and vibrant Federal marketplace is important to our Nation. 
Competition breeds innovation, which is critical in our national 
defense to save lives on the battlefield or healthcare advancements to 
improve and prolong lives.
  The SBIR and STTR programs are often one of the first places small 
innovators and manufacturers venture into the Federal contracting 
arena. The process can be daunting for small firms completely new to 
contracting with the Federal Government.
  H.R. 6368 provides an avenue for more experienced SBIR and STTR 
companies to mentor newer companies to help them adjust to how the 
Federal Government does business. By doing so, it aims to strengthen 
the industrial base by bringing new firms into the contracting process.
  The bill also rewards mentors with a past-performance rating boost so 
they can be more advantaged when applying for a full research and 
development set-aside or sole-source contracts going forward outside of 
the program.
  Additionally, this legislation provides clarity in the use of 
government-side interagency acquisitions permitted through the fiscal 
year 2009 National Defense Authorization Act, or NDAA, by updating and 
harmonizing the terminology used in acquisitions.
  Finally, the bill expressly allows the GSA, General Services 
Administration, to assist agencies with contract awards and vehicle 
creation for small businesses receiving sole-source or set-aside 
contracts in the SBIR and STTR programs.

[[Page H8809]]

  Historically, there have been lengthy delays in the programs at 
various stages, including award notification, payment, and advancement. 
The bill aims to reduce these delays by allowing the GSA to assist 
participating agencies in the SBIR and STTR contract creation and 
management.
  I urge my colleagues to support this bipartisan legislation, and I 
reserve the balance of my time.

         House of Representatives, Committee on Oversight and 
           Government Reform,
                               Washington, DC, September 18, 2018.
     Hon. Steve Chabot,
     Chairman, Committee on Small Business,
     House of Representatives, Washington, DC.
       Dear Mr. Chairman: I write concerning H.R. 6368, the 
     Encouraging Small Business Innovators Act of 2018. This bill 
     contains provisions within the jurisdiction of the Committee 
     on Oversight and Government Reform. As a result of your 
     having consulted with me concerning the provisions of the 
     bill that fall within our Rule X jurisdiction, I agree to 
     forgo consideration of the bill, so the bill may proceed 
     expeditiously to the House floor.
       The Committee takes this action with our mutual 
     understanding that by foregoing consideration of H.R. 6368, 
     we do not waive any jurisdiction over the subject matter 
     contained in this or similar legislation, and we will be 
     appropriately consulted and involved as the bill or similar 
     legislation moves forward so we may address any remaining 
     issues within our Rule X jurisdiction. Further, I request 
     your support for the appointment of conferees from the 
     Committee on Oversight and Government Reform during any 
     House-Senate conference on this or related legislation.
       Finally, I would appreciate a response confirming this 
     understanding and ask that a copy of our exchange of letters 
     on this matter be included in the bill report filed by the 
     Committee on Small Business, as well as in the Congressional 
     Record during floor consideration thereof.
           Sincerely,
     Trey Gowdy.
                                  ____

                                         House of Representatives,


                                  Committee on Small Business,

                               Washington, DC, September 18, 2018.
     Hon. Trey Gowdy,
     Chairman, Committee on Oversight and Government Reform, House 
         of Representatives, Washington, DC.
       Dear Chairman Gowdy: In reference to your letter of 
     September 18, 2018, I write to confirm our mutual 
     understanding regarding H.R. 6368, the ``Encouraging Small 
     Business Innovators Act of 2018.''
       I appreciate the House Committee on Oversight and 
     Government Reform's waiver of consideration of provisions 
     under its jurisdiction and its subject matter as specified in 
     your letter. I acknowledge that the waiver was granted only 
     to expedite floor consideration of H.R. 6368 and does not in 
     any way waive or diminish the House Committee on Oversight 
     and Government Reform's jurisdictional interests over this or 
     similar legislation. I will support a request from the House 
     Committee on Oversight and Government Reform for appointment 
     to any House-Senate conference on H.R. 6368 or similar 
     legislation.
       Again, thank you for your assistance with these matters.
           Sincerely,
                                                     Steve Chabot,
     Chairman.
                                  ____

         House of Representatives, Committee on Science, Space, 
           and Technology,
                               Washington, DC, September 18, 2018.
     Hon. Steve Chabot,
     Chairman, Committee on Small Business,
     House of Representatives, Washington, DC.
       Dear Mr. Chairman: I am writing concerning H.R. 6368, 
     ``Encouraging Small Business Innovators,'' which was ordered 
     reported by your Committee on July 18, 2018.
       H.R. 6368 contains provisions within the Committee on 
     Science, Space, and Technology's Rule X jurisdiction. As a 
     result of your having consulted with the Committee and in 
     order to expedite this bill for floor consideration, the 
     Committee on Science, Space, and Technology will forego 
     action on the bill. This is being done on the basis of our 
     mutual understanding that doing so will in no way diminish or 
     alter the jurisdiction of the Committee on Science, Space, 
     and Technology with respect to the appointment of conferees, 
     or to any future jurisdictional claim over the subject 
     matters contained in the bill or similar legislation.
       I would appreciate your response to this letter confirming 
     this understanding, and request that you include a copy of 
     this letter and your response in the Congressional Record 
     during the floor consideration of this bill. Thank you in 
     advance for your cooperation.
           Sincerely,
                                                      Lamar Smith,
     Chairman.
                                  ____

                                         House of Representatives,


                                  Committee on Small Business,

                               Washington, DC, September 18, 2018.
     Hon. Lamar Smith,
     Chairman, Committee on Science, Space, and Technology, House 
         of Representatives, Washington, DC.
       Dear Chairman Smith: In reference to your letter of 
     September 18, 2018, I write to confirm our mutual 
     understanding regarding H.R. 6368, the ``Encouraging Small 
     Business Innovators Act of 2018.''
       I appreciate the House Committee on Science, Space, and 
     Technology's waiver of consideration of provisions under its 
     jurisdiction and its subject matter as specified in your 
     letter. I acknowledge that the waiver was granted only to 
     expedite floor consideration of H.R. 6368 and does not in any 
     way waive or diminish the House Committee on Science, Space, 
     and Technology's jurisdictional interests over this or 
     similar legislation. I will support a request from the House 
     Committee on Science, Space, and Technology for appointment 
     to any House-Senate conference on H.R. 6368 or similar 
     legislation.
       Again, thank you for your assistance with these matters.
           Sincerely,
                                                     Steve Chabot,
                                                         Chairman.

  Ms. VELAZQUEZ. Mr. Speaker, I yield myself such time as I may 
consume.
  Mr. Speaker, I rise in support of H.R. 6368, Encouraging Small 
Business Innovators.
  For almost 40 years, our Nation has experienced increased innovation 
and job creation through the Small Business Innovation Research 
program, or SBIR, and the Small Business Technology Transfer program, 
or STTR. Research conducted by SBIR and STTR awardees has helped 
address our country's most technological and research-based challenges 
while generating tremendous economic growth and employment 
opportunities.
  By incentivizing more experienced SBIR/STTR companies to mentor newer 
companies and rewarding mentors through a past-performance rating 
increase, Congressman Espaillat's legislation positively promotes 
integrating these program participants into the larger Federal 
marketplace. That is why I urge Members to support this legislation.
  Mr. Speaker, I reserve the balance of my time.
  Mr. CHABOT. Mr. Speaker, I reserve the balance of time.
  Ms. VELAZQUEZ. Mr. Speaker, I yield 5 minutes to the gentleman from 
New York (Mr. Espaillat), the sponsor of the bill.
  Mr. ESPAILLAT. Mr. Speaker, before I begin, I thank Ranking Member 
Velazquez and Chairman Chabot for their leadership in the Small 
Business Committee, and the colead in this bill, the Congressman from 
South Carolina (Mr. Norman).
  Mr. Speaker, I rise today in support of H.R. 6368, Encouraging Small 
Business Innovators.
  Mr. Speaker, access to capital remains limited for underrepresented 
minority- and women-owned small businesses. I hear this concern from 
many in New York City whose ventures in science and technology are full 
of promise and potential for success.
  However, a 2013 report commissioned by the Small Business 
Administration found that women-owned businesses do not have equal 
access to capital from the private sector as compared to their male 
peers. The Small Business Administration's own Office of Advocacy has 
said that ``there are fewer minority-owned businesses representing 
high-patenting industries than in all industries.''
  Through the Small Business Innovation Research and the Small Business 
Technology Transfer programs, the Small Business Administration works 
with partners in 11 Federal agencies, ranging from agriculture to NASA, 
to support small businesses, and especially those that are minority and 
disadvantaged owned.
  These programs are committed to fostering and encouraging 
participation and innovation and entrepreneurship by socially and 
economically disadvantaged individuals and expanding private-sector 
commercialization of innovations resulting from federally funded 
research and development. But this is limited only to research and 
development. There is no consideration given for testing and 
evaluation.
  What good is a product or a method when you don't know if it works 
effectively, efficiently, or can be used in variable ways?
  H.R. 6368 addresses this problem by including testing and evaluation 
among the activities that SBIR and STTR participants can apply for. 
This is how we can encourage more underrepresented entrepreneurs and 
their expertise into a process where they can

[[Page H8810]]

develop new products, ideas, and gain respected external validators.
  H.R. 6368 also incentivizes mentorship with previous SBIR and STTR 
companies that have found success in the programs to share and impart 
that knowledge and experience.
  Today's bill is endorsed by the National Defense Industrial 
Association, an association whose majority are small businesses.
  Mr. Speaker, I urge my colleagues to support this bipartisan 
legislation.
  Mr. CHABOT. Mr. Speaker, I continue to reserve the balance of my 
time.
  Ms. VELAZQUEZ. Mr. Speaker, I thank the gentleman from New York (Mr. 
Espaillat) for introducing today's bill to spur increased contracting 
activities in the SBIR/STTR programs, and I ask all my colleagues to 
support this important piece of legislation.
  Mr. Speaker, I yield back the balance of my time.
  Mr. CHABOT. Mr. Speaker, I yield myself such time as I may consume to 
close.
  Mr. Speaker, I, first of all, thank the gentlewoman, the ranking 
member, for her leadership on this, and Mr. Espaillat, as well, and Mr. 
Norman for working together in a bipartisan manner.
  Mr. Speaker, the SBIR and STTR play pivotal roles in the development 
of new technologies while giving Federal agencies innovative and cost-
effective ways to solve operational problems. They are highly popular 
and have helped thousands of small businesses create new technologies, 
commercialize their ideas, and generate new jobs.
  The reforms contained in H.R. 6368 will bring more firms into the 
programs and make it easier for them to win contracts. This is a win-
win for small businesses and the Federal Government as competition 
breeds innovation, and innovation leads to saving taxpayer dollars.
  Mr. Speaker, I urge my colleagues to support the bipartisan and 
commonsense reforms of H.R. 6368, and I yield back the balance of my 
time.
  Ms. JACKSON LEE. Mr. Speaker, I rise in support of H.R. 6368, the 
``Encouraging Small Business Innovators Act,'' which encourages R&D 
small business set-asides, to incentivize Small Business Innovation 
Research Program (SBIR) and Small Business Technology Transfer Program 
(STTR) participants to serve as mentors under the Small Business 
Administration's mentor-protege program.
  The SBIR program is a highly competitive program that encourages 
domestic small businesses to engage in Federal Research/Research and 
Development (R/R&D) that has the potential for commercialization.
  Through a competitive awards-based program, SBIR enables small 
businesses to explore their technological potential and provides the 
incentive to profit from its commercialization.
  By including qualified small businesses in the nation's R&D arena, 
high-tech innovation is stimulated and the United States gains 
entrepreneurial capacity as it meets its specific research and 
development needs.
  STTR is another program that expands funding opportunities in the 
federal innovation research and development (R&D) arena.
  Central to the STTR program is expansion of the public/private sector 
partnerships to include the joint venture opportunities for small 
businesses and nonprofit research institutions.
  The unique feature of the STTR program is the requirement for the 
small business to formally collaborate with a research institution in 
Phase I and Phase II.
  STTR's most important role is to bridge the gap between performance 
of basic science and commercialization of resulting innovations.
  As a member of Congress, I have worked to advance policies that 
promote business opportunities and business growth because I believe 
that this is at the heart of the American dream--small businesses are 
the backbone of the American economy.
  To this end, I have authored numerous Legislative proposals 
empowering small businesses such as the American Rising Act and the 
Transitioning Heroes Act, to name a few to provide opportunities for 
small businesses.
  I have also hosted events to create a platform for entrepreneurial 
and small business participants to hear from experts in the industry 
and to network with supplier outreach representatives from major 
government agencies and corporations.
  By finding the right mentors like SBIR and STTR, small business 
owners and incubators can learn valuable tools to aid in leading small 
businesses to success.
  For these reasons, I urge my colleagues to stand with me in the 
support of H.R. 6368.
  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. 6368, as amended.
  The question was taken.
  The SPEAKER pro tempore. In the opinion of the Chair, two-thirds 
being in the affirmative, the ayes have it.
  Mr. CHABOT. Mr. Speaker, I object to the vote on the ground that a 
quorum is not present and make the point of order that a quorum is not 
present.
  The SPEAKER pro tempore. Pursuant to clause 8 of rule XX, further 
proceedings on this question will be postponed.
  The point of no quorum is considered withdrawn.

                          ____________________