[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.
____________________