[Congressional Record Volume 171, Number 131 (Wednesday, July 30, 2025)]
[Senate]
[Pages S4925-S4931]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 3150. Ms. ERNST submitted an amendment intended to be proposed by 
her to the bill S. 2296, to authorize appropriations for fiscal year 
2026 for military activities of the Department of Defense, for military 
construction, and for defense activities of the Department of Energy, 
to prescribe military personnel strengths for such fiscal year, and for 
other purposes; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

 DIVISION __--INVESTING IN NATIONAL NEXT-GENERATION OPPORTUNITIES FOR 
           VENTURE ACCELERATION AND TECHNOLOGICAL EXCELLENCE

     SEC. __1. SHORT TITLE.

       This division may be cited as the ``Investing in National 
     Next-Generation Opportunities for Venture Acceleration and 
     Technological Excellence'' or the ``INNOVATE Act''.

     SEC. __2. DEFINITIONS.

       In this division, the terms ``Phase I'', ``Phase II'', 
     ``Phase III'', ``SBIR'', and ``STTR'' have the meanings given 
     those terms in section 9(e) of the Small Business Act (15 
     U.S.C. 638(e)).

     TITLE __I--PROMOTING TRANSITION FOR BATTLE-READY TECHNOLOGIES

     SEC. __1. ENHANCING SMALL BUSINESS SUCCESS IN THE STTR 
                   PROGRAM.

       Section 9 of the Small Business Act (15 U.S.C. 638 et seq.) 
     is amended--
       (1) in subsection (e)(7)--
       (A) by striking ``40'' and inserting ``50''; and
       (B) by striking ``30'' and inserting ``20'';
       (2) in subsection (f)(1)--
       (A) in subparagraph (H), by striking ``and'' at the end;
       (B) in subparagraph (I), by striking ``and each fiscal year 
     thereafter,'' and inserting ``; and''; and
       (C) by adding at the end the following:
       ``(J) not less than 3.45 percent of such budget in fiscal 
     year 2026 and every year thereafter,''; and
       (3) in subsection (n)(1)(B)--
       (A) in clause (iv), by striking ``and'' at the end;
       (B) in clause (v), by striking ``and each fiscal year 
     thereafter.'' and inserting ``; and''; and
       (C) by adding at the end the following:
       ``(vi) not less than 0.20 percent for fiscal year 2026 and 
     each fiscal year thereafter.''.

     SEC. __2. PHASE II STRATEGIC BREAKTHROUGH FUNDING.

       (a) In General.--Section 9 of the Small Business Act (15 
     U.S.C. 638) is amended--
       (1) in subsection (aa), by adding at the end the following:
       ``(6) Strategic breakthrough allocation.--Participating 
     agencies with a budget for SBIR greater than $100,000,000 
     shall not be required to receive a waiver from the 
     Administrator to award a small business concern not more than 
     $30,000,000 when using funds made available under a strategic 
     breakthrough allocation (as defined in subsection (ff)).''; 
     and
       (2) in subsection (ff)--
       (A) in the subsection heading, by striking ``and STTR'' and 
     inserting ``Phase II'';
       (B) in paragraph (1), by striking ``or Phase II STTR 
     award''; and
       (C) by adding at the end the following new paragraph:
       ``(3) Strategic breakthrough awards.--
       ``(A) Award.--Under this subparagraph, a funding agreement 
     may be awarded to a small business concern by each 
     participating agency using funds made available under a 
     strategic breakthrough allocation, as defined in subparagraph 
     (B).
       ``(B) Fund parameters.--
       ``(i) Strategic breakthrough allocation defined.--In this 
     subparagraph, the term `strategic breakthrough allocation' 
     means, with respect to a participating agency with a required 
     expenditure under subsection (f)(1) in excess of 
     $100,000,000, a required expenditure amount from the SBIR 
     allocation under subsection (f)(1) of such agency of not less 
     than 0.25 percent of the extramural budget for research or 
     research and development designated for such agency for 
     fiscal year 2026 and every fiscal year thereafter.
       ``(ii) Requirements.--In the case of a Phase II agreement 
     that is awarded to a small business concern by a 
     participating agency using funds made available under a 
     strategic breakthrough allocation, the following requirements 
     shall apply:

       ``(I) Award size and period of performance.--A 
     participating agency may award from a strategic breakthrough 
     allocation not more than $30,000,000 in aggregate to a small 
     business concern, including its affiliates, spinouts, or 
     subsidiaries based on reaching production or development 
     milestone if the total period of performance of the project 
     with respect to which such funds are awarded is not more than 
     48 months.
       ``(II) Small business concern requirements.--The small 
     business concern shall--

       ``(aa) have been awarded not less than 1 prior Phase II 
     award under the SBIR or STTR program;
       ``(bb) demonstrate not less than 100 percent matching funds 
     from sources other than the Government or amounts awarded by 
     participating agencies under a program other than Phase I and 
     II of the SBIR or STTR program as a result of an award using 
     funds made available under a strategic breakthrough 
     allocation;
       ``(cc) is an effective solution, as determined by market 
     research; and
       ``(dd) only be eligible for an award from the strategic 
     breakthrough allocation if the product, process, or 
     technology of the small business concern--
       ``(AA) meets a necessary level of readiness and has a 
     commitment for inclusion in a program objective memorandum 
     from an official with the rank of program executive officer 
     or higher in an acquisition organization of the participating 
     agency making such award; and
       ``(BB) will meet high priority requirements or operational 
     needs of such participating agency through a successful 
     transition and into the acquisition process.

       ``(III) Deadline.--Each participating agency shall complete 
     any contract awards using strategic breakthrough allocation 
     funds not later than 90 days after receiving a proposal from 
     a small business concern for the award.
       ``(IV) Eligible activities.--Eligible activities by a small 
     business concern using strategic breakthrough allocation 
     funds are--

[[Page S4926]]

       ``(aa) design for manufacturing;
       ``(bb) establishing manufacturing facilities, tooling, and 
     supply chain capacity;
       ``(cc) buying raw materials or inventory;
       ``(dd) the integration of products with open 
     interoperability standards;
       ``(ee) testing, evaluation, and certification of low-rate 
     production units; and
       ``(ff) the purchase of production units and maintenance.

       ``(V) Selection criteria.--In making awards using funds 
     made available under a strategic breakthrough allocation, a 
     participating agency shall consider--

       ``(aa) the potential of the small business concern to--
       ``(AA) advance the national security capabilities of the 
     United States; and
       ``(BB) provide new technologies or processes, or new 
     applications of existing technologies, that will enable new 
     alternatives to existing programs;
       ``(bb) whether a customer in the participating agency has 
     expressed an intent to purchase and integrate technology from 
     the small business concern into its operations; and
       ``(cc) whether a particular technology area is 
     undercapitalized by private investment.
       ``(C) Acquisition mechanism.--A participating agency shall 
     establish a mechanism to provide small business concerns with 
     direct access to program and requirements offices throughout 
     the participating agency that may purchase technology from 
     small business concerns under Phase III of the SBIR program.
       ``(D) Use of streamlined contracting mechanisms.--Each 
     participating agency shall implement streamlined processes 
     and requirements for submitting proposals and applying for 
     awards using funds made available under a strategic 
     breakthrough allocation.''.
       (b) Commercialization Readiness Program.--Section 9(y) of 
     the Small Business Act (15 U.S.C. 638(y)) is amended--
       (1) in paragraph (2)--
       (A) by striking ``shall identify'' and inserting the 
     following: ``shall--
       ``(A) identify'';
       (B) in subparagraph (A), as so designated--
       (i) by inserting ``, including small business concerns with 
     an award from the strategic breakthrough allocation,'' before 
     ``that have the potential''; and
       (ii) by striking the period at the end and inserting a 
     semicolon; and
       (C) by adding at the end the following:
       ``(B) ensure, in collaboration with SBIR program managers 
     of each component, that research programs identified under 
     subparagraph (A) are analyzed within the programming and 
     budgeting process as budget requests are developed; and
       ``(C) provide to the Committee on Small Business and 
     Entrepreneurship of the Senate and the Committees on Small 
     Business and Science, Space, and Technology of the House of 
     Representatives information on the integration of SBIR and 
     STTR awardees in budget rollouts for research, development, 
     testing, and evaluation activities.'';
       (2) by striking paragraph (3) and redesignating paragraphs 
     (4), (5), and (6) as paragraphs (3), (4), and (5), 
     respectively; and
       (3) in paragraph (5), as so redesignated--
       (A) in the subparagraph heading, by striking ``and sttr'';
       (B) in subparagraph (A)--
       (i) by inserting ``substantively'' before ``increase'';
       (ii) by striking ``and the number of Phase II STTR 
     contracts''; and
       (iii) by inserting ``in fiscal year 2028 as compared to 
     fiscal year 2025'' before the semicolon at the end;
       (C) in subparagraph (B), by striking ``and'' at the end;
       (D) by redesignating subparagraph (C) as subparagraph (E);
       (E) by inserting after subparagraph (B) the following:
       ``(C) establish a mechanism to provide small business 
     concerns with direct access to program and requirements 
     offices that may purchase technology from the small business 
     concern under Phase III of the SBIR program;
       ``(D) allow services to provide operational needs 
     statements directly to chiefs of requirements offices; and''; 
     and
       (F) in subparagraph (E), as so redesignated, in clause (i) 
     by striking ``and STTR contracts''.

     SEC. __3. IMPLEMENTATION BRIEFINGS.

       Not later than 60 days after the date of enactment of this 
     division, and on a recurrent basis until the implementation 
     of paragraph (3) of section 9(ff) of the Small Business Act 
     (15 U.S.C. 638(ff)), as added by this title, is complete, the 
     head of each agency participating in the SBIR or STTR 
     programs that made an award from funds made available under a 
     strategic breakthrough allocation (as defined under paragraph 
     (3)(B) of section 9(ff) of the Small Business Act (15 U.S.C. 
     638(ff), as added by this title) shall brief the Committee on 
     Small Business and Entrepreneurship of the Senate and the 
     Committees on Small Business and on Science, Space, and 
     Technology of the House of Representatives on such 
     implementation.

     SEC. __4. FIXED-PRICE CONTRACTS.

       Section 9 of the Small Business Act (15 U.S.C. 638) is 
     amended--
       (1) in subsection (f), by adding at the end the following:
       ``(5) Fixed-price contract.--Any funding agreement that is 
     a contract made with expenditures allocated to the SBIR 
     program under paragraph (1) shall be a firm fixed-price 
     contract (as defined in section 16.202 of the Federal 
     Acquisition Regulation), unless, on a case-by-case basis, the 
     head of the awarding Federal agency makes a written 
     determination to use a different contract structure.''; and
       (2) in subsection (n), by adding at the end the following:
       ``(5) Fixed-price contract.--Any funding agreement that is 
     a contract made with expenditures allocated to the STTR 
     program under paragraph (1) shall be a firm fixed-price 
     contract (as defined in section 16.202 of the Federal 
     Acquisition Regulation), unless the head of the awarding 
     Federal agency makes a written determination to use a 
     different contract structure.''.

  TITLE __II--ENCOURAGING SMALL BUSINESS INNOVATION IN ALL OF AMERICA

     SEC. __1. ENCOURAGING NEW SBIR AND STTR ENTRANTS.

       (a) Encouraging New Sbir and Sttr Entrants.--Section 9(jj) 
     of the Small Business Act (15 U.S.C. 638(jj)) is amended to 
     read as follows:
       ``(jj) Encouraging New Sbir and Sttr Entrants.--
       ``(1) Optimizing sbir and sttr funding.--
       ``(A) In general.--The head of a participating agency may 
     award a Phase I or Phase II award to a small business concern 
     only if the total value of the Phase I and Phase II awards 
     awarded to such small business concern, including its 
     affiliates, spinouts, and subsidiaries, does not exceed 
     $75,000,000.
       ``(B) Waiver.--
       ``(i) In general.--On an award-by-award basis, the 
     Undersecretary or Director overseeing the SBIR or STTR 
     program of a Federal agency may waive the requirement under 
     subparagraph (A) with a written justification by the 
     Undersecretary or Director that explains why the use of the 
     waiver authority for an otherwise disqualified small business 
     concern is imperative for national security purposes and why 
     the work cannot be performed by other qualifying small 
     business concerns.
       ``(ii) Nondelegation.--The waiver authority established 
     under clause (i) may not be delegated.
       ``(iii) Record requirement.--Participating agencies shall 
     maintain information on any awards made using the waiver 
     established under clause (i), including the amount of the 
     award, the written justification for each award, and the 
     identity of the award recipient.
       ``(iv) Report.--The Administrator shall include the 
     information described in clause (iii) in the annual report of 
     the Administrator to Congress required by subsection (b)(7).
       ``(2) Principal investigators.--An individual may not 
     concurrently serve as the principal investigator on more than 
     1 proposal to a single Phase I solicitation or a single Phase 
     II solicitation.
       ``(3) Phase i size standard.--A small business concern 
     applying for a Phase I award may not have annual receipts (as 
     defined in section 121.104 of title 13, Code of Federal 
     Regulations, or any successor regulation) of more than 
     $40,000,000 for the most recent fiscal year.''.
       (b) Phase 1a Program.--
       (1) In general.--Section 9 of the Small Business Act (15 
     U.S.C. 638) is amended--
       (A) in subsection (e)--
       (i) in paragraph (4)--

       (I) in subparagraph (A), by striking ``subparagraph (B)'' 
     and inserting ``subparagraph (C)'';
       (II) by redesignating subparagraphs (B) and (C) as 
     subparagraphs (C) and (D); and
       (III) by inserting after subparagraph (A), the following:

       ``(B) a 1A phase for the same purposes as the first phase 
     described under subparagraph (A) and intended to increase 
     accessibility to the program for new entrants with proposals 
     submitted pursuant to only SBIR open topic announcements;''; 
     and
       (ii) by adding at the end following:
       ``(20) the term `Phase 1A' means the phase described in 
     paragraph (4)(B);''; and
       (B) by amending subsection (pp) to read as follows:
       ``(pp) Phase 1a Awards.--
       ``(1) Sense of congress.--It is the sense of Congress 
     that--
       ``(A) Phase 1A funds will bring thousands of new small 
     business concerns committed to commercialization of critical 
     technologies into the SBIR program; and
       ``(B) in order for participating agencies to benefit from 
     the full scope of American innovation and identify the most 
     promising solutions to scale, Phase 1A awards should fund the 
     strongest technologies in a topic area regardless of--
       ``(i) the location of the small business concern within the 
     United States; or
       ``(ii) the educational background of the principal 
     investigator.
       ``(2) Authorization.--The head of each agency with an SBIR 
     program shall allocate not less than 1.5 percent of funding 
     and not more than 3 percent of funding for the SBIR program 
     of the agency to Phase 1A awards.
       ``(3) Solicitation.--A solicitation issued under this 
     subsection shall be conducted as an open topic announcement.
       ``(4) Eligibility.--A small business concern, including its 
     affiliates, spinouts, or subsidiaries, is eligible for an 
     award under this subsection only if such small business 
     concern, including its affiliates, spinouts, or subsidiaries, 
     has not previously received an SBIR or STTR award.

[[Page S4927]]

       ``(5) Proposal.--
       ``(A) In general.--A proposal submitted in response to a 
     solicitation under this subsection shall consist of a report 
     that is not more than 5 pages in length and containing the 
     criteria in clauses (i) through (iv) of subparagraph (B).
       ``(B) Criteria.--
       ``(i) Identification of program.--The small business 
     concern shall describe the problem that the proposal is 
     intended to address for the awarding agency and any 
     commercial customer.
       ``(ii) Description of solution.--The small business concern 
     shall describe the proposed solution, including the technical 
     basis for the solution to demonstrate how the solution would 
     address the problem described in the proposal, including the 
     level of maturity of the solution at the time of the 
     proposal.
       ``(iii) Effects of the solution.--The small business 
     concern shall describe how adoption of the proposed solution 
     would produce potential time savings, cost savings, risk 
     reduction, improvement of mission outcomes, or any other 
     beneficial effects for the awarding agency and any commercial 
     customer.
       ``(iv) Differentiation.--The small business concern shall--

       ``(I) identify the state of solutions in use at the time of 
     the proposal to address the problem described in the 
     proposal; and
       ``(II) explain how the proposed solution is a unique and 
     novel solution.

       ``(v) Commercialization strategy.--The small business 
     concern shall--

       ``(I) describe how the small business concern intends to 
     fund the proposed solution from sources other than the award; 
     and
       ``(II) explain the market for the proposed solution, 
     including the intended Government and commercial end users.

       ``(6) Award limits.--
       ``(A) Number of awards.--A small business concern or 
     principal investigator is eligible for not more than one 
     Phase 1A award.
       ``(B) Amount.--An award made under this subsection shall be 
     for not more than $40,000.
       ``(7) Notification of selection or non-selection.--Each 
     agency shall notify each small business concern of the award 
     decision of the agency on any proposal submitted by the small 
     business concern not later than 90 days after the date on 
     which the solicitation closes.
       ``(8) Application for phase ii award.--
       ``(A) Eligibility.--A small business concern that receives 
     a Phase 1A award shall be eligible to apply for a Phase II 
     award.
       ``(B) Use of funds.--A small business concern may use funds 
     from a Phase 1A award to develop a proposed solution in 
     pursuit of a subsequent proposal for a Phase I award or a 
     Phase II award.
       ``(9) Streamlined awards.--The head of each participating 
     agency shall implement streamlined processes and requirements 
     for submitting proposals and applying for solicitations for 
     Phase 1A awards.
       ``(10) Peer review requirement.--The head of a 
     participating agency may waive any applicable peer review 
     requirements for Phase 1A awards.''.
       (2) Conforming amendments.--Section 9(e) of the Small 
     Business Act (15 U.S.C. 638(e)) is amended--
       (A) in paragraph (12)(A), by striking ``paragraph (4)(B)'' 
     and inserting ``paragraph (4)(C)''; and
       (B) in paragraph (13)(A), by striking ``paragraph (4)(C)'' 
     and inserting ``paragraph (4)(D)''.

     SEC. __2. COMBATING DISCRIMINATORY PRACTICES IN THE SBIR AND 
                   STTR PROGRAMS.

       Section 9 of the Small Business Act (15 U.S.C. 638), as 
     amended by this division, is amended--
       (1) in subsection (b)(7)(C), by striking ``owned and 
     controlled by women or by socially or economically 
     disadvantaged individuals'' and inserting ``owned by 
     individuals who reside in rural areas'';
       (2) in subsection (e)--
       (A) in paragraph (18), by striking ``and'' at the end;
       (B) in paragraph (19), by striking the period at the end 
     and inserting a semicolon; and
       (C) by adding at the end the following:
       ``(21) the term `new entrants' means a small business 
     concern that has not received an SBIR or STTR award;
       ``(22) the term `rural area' means a county or other 
     political subdivision of a State that the Bureau of the 
     Census has defined as mostly rural or completely rural in the 
     most recent decennial census;'';
       (3) in subsection (g)(8)(A)--
       (A) by striking clause (iii);
       (B) by redesignating clauses (iv), (v), and (vi) as clauses 
     (iii), (iv), and (v), respectively; and
       (C) in clause (iii), as so redesignated, by striking ``a 
     socially or economically disadvantaged individual or has a 
     socially or economically disadvantaged individual'' and 
     inserting ``an individual who resides in a rural area or has 
     an individual who resides in a rural area or is a new 
     entrant'';
       (4) in subsection (j)--
       (A) by adjusting the margins for paragraphs (2) and (3) 2 
     ems to the left; and
       (B) in paragraph (2)--
       (i) by striking subparagraph (F);
       (ii) by redesignating subparagraphs (G), (H), and (I) as 
     subparagraphs (F), (G), and (H), respectively; and
       (iii) in subparagraph (H), as so redesignated, by striking 
     ``subparagraph (H)'' and inserting ``subparagraph (G)'';
       (5) in subsection (k)(1)(F)--
       (A) by striking clause (ii);
       (B) by redesignating clauses (iii), (iv), and (v) as 
     clauses (ii), (iii), and (iv), respectively; and
       (C) in clause (ii), as so redesignated, by striking ``a 
     socially or economically disadvantaged individual or has a 
     socially or economically disadvantaged individual'' and 
     inserting ``an individual who resides in a rural area or has 
     an individual who resides in a rural area or is a new 
     entrant'';
       (6) in subsection (o)(9)(A)--
       (A) by striking clause (iii);
       (B) by redesignating clauses (iv), (v), and (vi) as clauses 
     (iii), (iv), and (v), respectively; and
       (C) in clause (iii), as so redesignated, by striking ``a 
     socially or economically disadvantaged individual or has a 
     socially or economically disadvantaged individual'' and 
     inserting ``an individual who resides in a rural area or has 
     an individual who resides in a rural area or is a new 
     entrant''; and
       (7) in subsection (mm)--
       (A) in paragraph (1)--
       (i) in the matter preceding subparagraph (A), by striking 
     ``and until September 30, 2025''; and
       (ii) in subparagraph (F), by striking ``or abuse to ensure 
     compliance'' and inserting ``abuse, or adversarial influence 
     to ensure compliance'';
       (B) in paragraph (2)(A), by striking ``to carry out the 
     policy directive required under subsection (j)(2)(F) and'' 
     and inserting ``to increase the participation of States with 
     respect to which a low level of SBIR awards have historically 
     been awarded''; and
       (C) by adding at the end the following:
       ``(7) Eligibility.--An agency may use the funds allocated 
     to the SBIR program of such agency under this subsection only 
     if such agency does not--
       ``(A) consider the race, gender, or ethnicity of the 
     principal investigator, founder, or key personnel of the 
     small business concern applying for an SBIR or STTR award in 
     an award decision under the SBIR or STTR program of the 
     agency;
       ``(B) require or consider a statement or plan to promote 
     diversity or equity as part of an application for an SBIR or 
     STTR award under the SBIR or STTR program of the agency; or
       ``(C) offer supplemental funds to a recipient of an SBIR or 
     STTR award based on the race, gender, or ethnicity of the 
     principal investigator, founder, or key personnel of a small 
     business concern.''.

     SEC. __3. DISCLOSURES AND PROHIBITIONS RELATING TO CERTAIN 
                   AGREEMENTS WITH ENTITIES ENGAGING IN 
                   CENSORSHIP.

       (a) Disclosure for Sbir Applicants.--Section 9(g)(13) of 
     the Small Business Act (15 U.S.C. 638(g)(13)) is amended--
       (1) in subparagraph (F), by striking ``and'' at the end;
       (2) in subparagraph (G), by striking the semicolon at the 
     end and inserting ``; and''; and
       (3) by adding at the end the following:
       ``(H) a current or pending agreement with--
       ``(i) NewsGuard Technologies, Inc. (doing business as 
     `NEWSGuard');
       ``(ii) Disinformation Index, Inc., Disinformation Index, 
     Ltd., or Global Disinformation Index gUG (collectively doing 
     business as `Global Disinformation Index');
       ``(iii) Internews; or
       ``(iv) an entity that engages in operations or activities, 
     or produces products, the function of which is to demonetize 
     or rate the credibility of a domestic entity (including news 
     and information outlets) based on lawful speech of such 
     domestic entity under the stated function of `fact-checking' 
     or otherwise exposing or correcting misinformation, 
     disinformation, or misinformation;''.
       (b) Prohibition on Sbir Awards.--Paragraph (16) of section 
     9(g) of the Small Business Act (15 U.S.C. 638(g)), as 
     redesignated by title IV, is amended by adding at the end the 
     following:
       ``(G) the small business concern submitting the proposal or 
     application has a current or pending agreement with--
       ``(i) NewsGuard Technologies, Inc. (doing business as 
     `NEWSGuard');
       ``(ii) Disinformation Index, Inc., Disinformation Index, 
     Ltd., or Global Disinformation Index gUG (collectively doing 
     business as `Global Disinformation Index');
       ``(iii) Internews; or
       ``(iv) an entity that engages in operations or activities, 
     or produces products, the function of which is to demonetize 
     or rate the credibility of a domestic entity (including news 
     and information outlets) based on lawful speech of such 
     domestic entity under the stated function of `fact-checking' 
     or otherwise exposing or correcting misinformation, 
     disinformation, or misinformation;''.
       (c) Disclosure for Sttr Applicants.--Section 9(o)(17) of 
     the Small Business Act (15 U.S.C. 638(o)(17)) is amended--
       (1) in subparagraph (F), by striking ``and'' at the end;
       (2) in subparagraph (G), by striking the semicolon at the 
     end and inserting ``; and''; and
       (3) by adding at the end the following:
       ``(H) a current or pending agreement with--
       ``(i) NewsGuard Technologies, Inc. (doing business as 
     `NEWSGuard');
       ``(ii) Disinformation Index, Inc., Disinformation Index, 
     Ltd., or Global

[[Page S4928]]

     Disinformation Index gUG (collectively doing business as 
     `Global Disinformation Index');
       ``(iii) Internews; or
       ``(iv) an entity that engages in operations or activities, 
     or produces products, the function of which is to demonetize 
     or rate the credibility of a domestic entity (including news 
     and information outlets) based on lawful speech of such 
     domestic entity under the stated function of `fact-checking' 
     or otherwise exposing or correcting misinformation, 
     disinformation, or misinformation;''.
       (d) Prohibition on Sttr Awards.--Paragraph (20) of section 
     9(o) of the Small Business Act (15 U.S.C. 638(o)(20)), as 
     redesignated by title IV, is amended by adding at the end the 
     following:
       ``(G) the small business concern submitting the proposal or 
     application has a current or pending agreement with--
       ``(i) NewsGuard Technologies, Inc. (doing business as 
     `NEWSGuard');
       ``(ii) Disinformation Index, Inc., Disinformation Index, 
     Ltd., or Global Disinformation Index gUG (collectively doing 
     business as `Global Disinformation Index');
       ``(iii) Internews; or
       ``(iv) an entity that engages in operations or activities, 
     or produces products, the function of which is to demonetize 
     or rate the credibility of a domestic entity (including news 
     and information outlets) based on lawful speech of such 
     domestic entity under the stated function of `fact-checking' 
     or otherwise exposing or correcting misinformation, 
     disinformation, or misinformation;''.
       (e) Conforming Amendments.--
       (1) SBIR awards.--Paragraph (19)(A) of section 9(g) of the 
     Small Business Act (15 U.S.C. 638(g)), as so redesignated by 
     title IV, is amended by striking ``through (G)'' and 
     inserting ``through (H)''.
       (2) STTR awards.--Paragraph (23)(A) of section 9(o) of the 
     Small Business Act (15 U.S.C. 638(o)), as so redesignated by 
     title IV, is amended by striking ``through (G)'' and 
     inserting ``through (H)''.

     SEC. __4. CONNECTING SBIR AND STTR AWARDEES AND SMALL 
                   BUSINESS INVESTMENT COMPANIES.

       Section 9(mm)(1) of the Small Business Act (15 U.S.C. 
     638(mm)(1)) is amended--
       (1) in subparagraph (J), by striking ``and'' at the end;
       (2) in subparagraph (K), by striking the period at the end 
     and inserting ``; and''; and
       (3) by adding at the end the following new subparagraph:
       ``(L) connecting SBIR and STTR awardees with small business 
     investment companies (as defined under section 103 of the 
     Small Business Investment Act of 1958 (15 U.S.C. 662) and 
     other domestic private investors.''.

     SEC. __5. AGENCY OUTREACH TO RURAL COMMUNITIES.

       (a) Agency Outreach.--Section 9 of the Small Business Act 
     (15 U.S.C. 638) is amended--
       (1) in subsection (j), by adding at the end the following 
     new paragraphs:
       ``(5) Modification relating to rural outreach.--Not later 
     than 90 days after the date of the enactment of this 
     paragraph, the Administrator shall modify the policy 
     directives issued pursuant to this subsection to require each 
     Federal agency participating in the SBIR program to enhance 
     the outreach efforts of such Federal agency to rural 
     communities to increase the participation of small businesses 
     concerns located in rural communities in the SBIR program, 
     including by ensuring that such Federal agency--
       ``(A) conducts outreach efforts with respect to the SBIR 
     program in rural communities; and
       ``(B) when such Federal agency conducts such outreach in an 
     area served by a small business development center, 
     coordinates with such small business development center.
       ``(6) Modification relating to rural outreach.--Not later 
     than 90 days after the date of the enactment of this 
     paragraph, the Administrator shall modify the policy 
     directives issued pursuant to this subsection to require the 
     Administration to place a special emphasis on small business 
     concerns in rural areas when conducting outreach related to 
     the SBIR program, including by ensuring that the 
     Administration includes outreach efforts in rural communities 
     carried out by the Administration with respect to the SBIR 
     program.''; and
       (2) in subsection (p), by adding at the end the following 
     new paragraph:
       ``(4) Modification relating to rural outreach.--Not later 
     than 90 days after the date of the enactment of this 
     paragraph, the Administrator shall modify the policy 
     directive issued pursuant to this subsection to require each 
     Federal agency participating in the STTR program to enhance 
     the outreach efforts of such Federal agency to rural 
     communities to increase the participation of small businesses 
     concerns located in rural communities in the STTR program, 
     including by ensuring that such Federal agency--
       ``(A) conducts outreach efforts with respect to the STTR 
     program in rural communities; and
       ``(B) when such Federal agency conducts such outreach in an 
     area served by a small business development center, 
     coordinates with such small business development center.
       ``(5) Modification relating to rural outreach.--Not later 
     than 90 days after the date of the enactment of this 
     paragraph, the Administrator shall modify the policy 
     directive issued pursuant to this subsection to require the 
     Administration to place a special emphasis on small business 
     concerns in rural areas when conducting outreach related to 
     the STTR program, including by ensuring that the 
     Administration includes outreach efforts in rural communities 
     carried out by the Administration with respect to the STTR 
     program.''.
       (b) Modification of Current Directives.--Section 9(j)(2) of 
     the Small Business Act (15 U.S.C. 638(j)(2)), as amended by 
     this title, is amended by revising subparagraph (F) to read 
     as follows:
       ``(F) enhanced outreach efforts to increase the 
     participation of small business concerns that have never 
     participated in Federal research and development to develop 
     innovative technologies, with a special emphasis on small 
     business concerns in rural areas;''.

 TITLE __III--STREAMLINING PARTICIPATION IN THE SBIR AND STTR PROGRAMS

     SEC. __1. AMENDMENTS RELATING TO OPEN TOPICS.

       (a) Definition of Open Topic Announcement.--Section 9(e) of 
     the Small Business Act (15 U.S.C. 638(e)), as amended by 
     title II, is further amended by adding at the end the 
     following:
       ``(23) the term `open topic announcement' means a 
     solicitation for SBIR or STTR proposals that--
       ``(A) is a generalized problem statement or broad 
     technology area and does not contain any language requiring 
     that the solutions that a small business concern proposes 
     adhere to specific technological specifications; and
       ``(B) evaluates the ability of the solution proposed by the 
     small business concern to meet the stated innovation need of 
     the agency or Government end user; and''.
       (b) Program on Innovation Open Topics.--Section 9(ww) of 
     the Small Business Act (15 U.S.C. 638) is amended--
       (1) in paragraph (1)--
       (A) in the matter preceding subparagraph (A), by striking 
     ``Secretary of Defense'' and inserting ``head of each 
     participating agency''; and
       (B) by striking ``the Department of Defense'' each place it 
     appears and inserting ``such participating agency'';
       (2) in paragraph (2)--
       (A) by striking ``Secretary of Defense'' and inserting 
     ``head of each participating agency'';
       (B) by striking ``each component of'' and inserting ``such 
     participating agency and, with respect to''; and
       (C) by inserting ``, each component thereof,'' before ``per 
     fiscal year''; and
       (3) by striking paragraph (3).

     SEC. __2. REDUCING ADMINISTRATIVE BURDEN.

       Section 9(jj) of the Small Business Act (15 U.S.C. 
     638(jj)), as amended by title II, is further amended by 
     adding at the end the following:
       ``(4) Reducing administrative burden.--
       ``(A) Limit on submissions to a solicitation.--A small 
     business concern, including its affiliates, spinouts, or 
     subsidiaries, may not submit more than 10 proposals to a 
     single Phase I solicitation or a single Phase II solicitation 
     under subsection (cc).
       ``(B) Limit on submissions in a single year.--A small 
     business concern, including its affiliates, spinouts, or 
     subsidiaries, may not submit more than a combined total of 25 
     proposals to Phase I solicitations or Phase II solicitations 
     under subsection (cc) published by a single agency, including 
     the components of the agency, in a single fiscal year.''.

 TITLE __IV--PROTECTING AMERICAN INNOVATION FROM ADVERSARIAL INFLUENCE

     SEC. __1. DEFINITION OF FOREIGN RISK.

       Section 9(e) of the Small Business Act (15 U.S.C. 638(e)), 
     as amended by title III, is further amended by adding at the 
     end the following:
       ``(24) the term `foreign risk' means, in the past 10 years, 
     any foreign affiliation, technology licensing agreement, 
     joint venture, contractual or financial obligation (pending 
     or otherwise), investment agreement, research relationship 
     (including co-authorship), or business relationship between--
       ``(A) a small business concern (including all subsidiaries, 
     spinouts, and affiliates) submitting a proposal for an SBIR 
     or STTR program, and covered individuals, owners, or other 
     key personnel of the small business concern; and
       ``(B) an individual, research institution, business entity, 
     government, or government-owned entity in a foreign country 
     of concern that is disclosed, as required under subsection 
     (g) or subsection (o), or otherwise identified in the due 
     diligence process, as required under subsection (vv).''.

     SEC. __2. BOLSTERING RESEARCH SECURITY OF SBIR AND STTR 
                   AWARDS.

       Section 9 of the Small Business Act (15 U.S.C. 638), as 
     amended by this division, is amended--
       (1) in subsection (g)--
       (A) by redesignating paragraphs (15), (16), and (17) as 
     paragraphs (16), (18), and (19), respectively;
       (B) by inserting after paragraph (14) the following:
       ``(15) evaluate whether a small business concern presents a 
     risk to national security for any reason, through measures 
     including--
       ``(A) the due diligence process required under subsection 
     (vv);
       ``(B) disclosures submitted under this subsection; or

[[Page S4929]]

       ``(C) coordination with the Inspector General of the agency 
     or the intelligence community (as defined under section 3 of 
     the National Security Act of 1947 (50 U.S.C. 3003));'';
       (C) in paragraph (16), as so redesignated--
       (i) by striking subparagraph (B);
       (ii) by striking ``that--'' and all that follows through 
     ``the small business concern submitting'' and inserting 
     ``that the small business concern submitting'';
       (iii) by redesignating clauses (i), (ii), and (iii) as 
     subparagraphs (A), (B), and (C), respectively, and adjusting 
     the margins accordingly;
       (iv) in subparagraph (B), as so redesignated, by striking 
     ``or'' at the end;
       (v) in subparagraph (C), as so redesignated, by striking 
     ``and'' at the end; and
       (vi) by adding at the end the following:
       ``(D) has a foreign risk connecting the small business 
     concern to an entity, including any affiliates, spinouts, or 
     subsidiaries of the entity, or individual on one or more of 
     the following lists:
       ``(i) the UFLPA Entity List maintained by the Department of 
     Homeland Security;
       ``(ii) the Non-SDN Chinese Military-Industrial Complex 
     Companies List of the Office of Foreign Assets Control 
     maintained by the Department of the Treasury;
       ``(iii) the Section 889 Prohibition List established under 
     section 889 of the John S. McCain National Defense 
     Authorization Act for Fiscal Year 2019 (Public Law 115-232) 
     and maintained by the Department of Defense;
       ``(iv) the list of Chinese Military companies required 
     under section 1260H of the William M. (Mac) Thornberry 
     National Defense Authorization Act for Fiscal Year 2021 
     (Public Law 116-283) and maintained by the Department of 
     Defense;
       ``(v) the Military End User List maintained by the Bureau 
     of Industry and Security of the Department of Commerce;
       ``(vi) the Entity List maintained by the Bureau of Industry 
     and Security of the Department of Commerce;
       ``(vii) the List of Equipment and Services maintained by 
     the Federal Communications Commission; and
       ``(viii) the Withhold Release Orders and Findings List 
     maintained by U.S. Customs and Border Protection;
       ``(E) has a foreign risk with a primary source that is 
     classified;
       ``(F) has a foreign risk or another national security risk 
     not listed in statute or regulatory guidance that an agency 
     determines warrants a denial; or'';
       (D) by inserting after paragraph (16), as so redesignated, 
     the following:
       ``(17) not, and any personnel of the Federal agency 
     including technical points of contact shall not, communicate 
     to an applicant prior to formal notification of an award 
     decision that an application was denied due to a foreign 
     risk;''; and
       (E) in paragraph (19), as so redesignated--
       (i) in subparagraph (B), by striking ``paragraph (16)(A)'' 
     and inserting ``paragraph (18)(A)''; and
       (ii) in subparagraph (C), by striking ``paragraph (16)(B)'' 
     and inserting ``paragraph (18)(B)''; and
       (2) in subsection (o)--
       (A) by redesignating paragraphs (19), (20), and (21) as 
     paragraphs (20), (22), and (23), respectively;
       (B) by inserting after paragraph (18) the following:
       ``(19) evaluate whether a small business concern presents a 
     risk to national security for any reason, through measures 
     including--
       ``(A) the due diligence process required under subsection 
     (vv);
       ``(B) disclosures submitted under this subsection; or
       ``(C) coordination with the Inspector General of the agency 
     or the intelligence community (as defined under section 3 of 
     the National Security Act of 1947 (50 U.S.C. 3003));'';
       (C) in paragraph (20), as so redesignated--
       (i) by striking subparagraph (B);
       (ii) by striking ``that--'' and all that follows through 
     ``the small business concern submitting'' and inserting 
     ``that the small business concern submitting'';
       (iii) by redesignating clauses (i), (ii), and (iii) as 
     subparagraphs (A), (B), and (C), respectively, and adjusting 
     the margins accordingly;
       (iv) in subparagraph (B), as so redesignated, by striking 
     ``or'' at the end;
       (v) in subparagraph (C), as so redesignated, by striking 
     ``and'' at the end; and
       (vi) by adding at the end the following:
       ``(D) has a foreign risk connecting the small business 
     concern to an entity, including any affiliates, spinouts, or 
     subsidiaries of the entity, or individual on one or more of 
     the following lists:
       ``(i) the UFLPA Entity List maintained by the Department of 
     Homeland Security;
       ``(ii) the Non-SDN Chinese Military-Industrial Complex 
     Companies List of the Office of Foreign Assets Control 
     maintained by the Department of the Treasury;
       ``(iii) the Section 889 Prohibition List established under 
     section 889 of the John S. McCain National Defense 
     Authorization Act for Fiscal Year 2019 (Public Law 115-232) 
     and maintained by the Department of Defense;
       ``(iv) the list of Chinese Military companies required 
     under section 1260H of the William M. (Mac) Thornberry 
     National Defense Authorization Act for Fiscal Year 2021 
     (Public Law 116-283) and maintained by the Department of 
     Defense;
       ``(v) the Military End User List maintained by the Bureau 
     of Industry and Security of the Department of Commerce;
       ``(vi) the Entity List maintained by the Bureau of Industry 
     and Security of the Department of Commerce;
       ``(vii) the List of Equipment and Services maintained by 
     the Federal Communications Commission; and
       ``(viii) the Withhold Release Orders and Findings List 
     maintained by U.S. Customs and Border Protection;
       ``(E) has a foreign risk with a primary source that is 
     classified;
       ``(F) has a foreign risk or another national security risk 
     not listed in statute or regulatory guidance that an agency 
     determines warrants a denial; or'';
       (D) by inserting after paragraph (20) the following:
       ``(21) not, and any personnel of the Federal agency 
     including technical points of contact shall not, communicate 
     to an applicant prior to formal notification of an award 
     decision that an application was denied due to a foreign 
     risk;''; and
       (E) in paragraph (23), as so redesignated--
       (i) in subparagraph (B), by striking ``paragraph (20)(A)'' 
     and inserting ``paragraph (22)(A)''; and
       (ii) in subparagraph (C), by striking ``paragraph (20)(B)'' 
     and inserting ``paragraph (22)(B)''.

     SEC. __3. STRENGTHENING THE DUE DILIGENCE PROGRAM TO ASSESS 
                   SECURITY RISKS.

       Section 9(vv)(2) of the Small Business Act (15 U.S.C. 
     638(vv)(2)) is amended--
       (1) in subparagraph (B), by striking the period at the end 
     and inserting ``; and''; and
       (2) by adding at the end the following:
       ``(C) examine any relationship of a small business concern 
     seeking an award to any entity or individual included on the 
     lists, as published on the date of the closing of the 
     solicitation, described under subsections (g)(16)(D) and 
     (o)(20)(D).''.

     SEC. __4. STRENGTHENING AGENCY RECOVERY AUTHORITY.

       Section 9 of the Small Business Act (15 U.S.C. 638), as 
     amended by this division, is amended--
       (1) in subsection (g)(18), as redesignated by this title--
       (A) in the matter preceding subparagraph (A), by inserting 
     ``, as adjusted for inflation according to the Consumer Price 
     Index published by the Bureau of Labor Statistics,'' after 
     ``amounts'';
       (B) in subparagraph (A)--
       (i) by inserting ``during the 10-year period beginning on 
     the date of the award, or during a longer or indefinite 
     period as determined by the head of the awarding agency as 
     necessary for national security,'' before ``the small 
     business concern''; and
       (ii) by striking ``or'' at the end;
       (C) in subparagraph (B)--
       (i) by inserting ``during the 10-year period beginning on 
     the date of the award, or during a longer or indefinite 
     period as determined by the head of the awarding agency as 
     necessary for national security,'' before ``there is a 
     change''; and
       (ii) by striking ``and'' at the end; and
       (D) by adding at the end the following:
       ``(C) during the 5-year period beginning on the date of the 
     award, or during a longer or indefinite period as determined 
     by the head of the awarding agency as necessary for national 
     security, the small business concern sells, leases, or 
     provides (through joint research, technological licensing, or 
     otherwise) intellectual property that was developed, wholly 
     or in part, using an SBIR award to a foreign entity or 
     individual unless the foreign entity or individual is 
     incorporated in or a citizen of a country that is a member of 
     the North Atlantic Treaty Organization or a major non-NATO 
     ally, as described under section 2321k of title 22, United 
     States Code; or
       ``(D) during the 10-year period beginning on the date of 
     the award, or during a longer or indefinite period as 
     determined by the head of the awarding agency as necessary 
     for national security, the small business concern sells, 
     leases, or provides (through joint research, technological 
     licensing, or otherwise) intellectual property that was 
     developed, wholly or in part, using an SBIR award to an 
     entity, government, or individual in a foreign country of 
     concern; and''; and
       (2) in subsection (o)(22), as redesignated by this title--
       (A) in the matter preceding subparagraph (A), by inserting 
     ``, as adjusted for inflation according to the Consumer Price 
     Index published by the Bureau of Labor Statistics,'' after 
     ``amounts'';
       (B) in subparagraph (A)--
       (i) by inserting ``during the 10-year period beginning on 
     the date of the award, or during a longer or indefinite 
     period as determined by the head of the awarding agency as 
     necessary for national security,'' before ``the small 
     business concern''; and
       (ii) by striking ``or'' at the end;
       (C) in subparagraph (B)--
       (i) by inserting ``during the 10-year period beginning on 
     the date of the award, or during a longer or indefinite 
     period as determined by the head of the awarding agency as 
     necessary for national security,'' before ``there is a 
     change''; and
       (ii) by striking ``and'' at the end; and
       (D) by adding at the end the following:
       ``(C) during the 5 year period beginning on the date of the 
     award, or during a longer or indefinite period as determined 
     by the head of the awarding agency as necessary for national 
     security, the small business concern sells, leases, or 
     provides (through joint research, technological licensing, or 
     otherwise) intellectual property that was developed,

[[Page S4930]]

     wholly or in part, using an STTR award to a foreign entity or 
     individual unless the foreign entity or individual is 
     incorporated in or a citizen of a country that is a member of 
     the North Atlantic Treaty Organization or a major non-NATO 
     ally, as described under section 2321k of title 22, United 
     States Code; or
       ``(D) during the 10-year period beginning on the date of 
     the award, or during a longer or indefinite period as 
     determined by the head of the awarding agency as necessary 
     for national security, the small business concern sells, 
     leases, or provides (through joint research, technological 
     licensing, or otherwise) intellectual property that was 
     developed, wholly or in part, using an STTR award to an 
     entity, government, or individual in a foreign country of 
     concern; and''.

     SEC. __5. BEST PRACTICES ON INVESTOR INFORMATIONAL RIGHTS.

       Section 9(uu) of the Small Business Act (15 U.S.C. 638(uu)) 
     is amended to read as follows:
       ``(uu) Best Practices on Investor Informational Rights.--
       ``(1) In general.--The Administrator, in coordination with 
     the heads of all agencies with an SBIR program, the Director 
     of the White House Office of Science and Technology Policy, 
     and the Committee on Foreign Investment in the United States, 
     shall develop best practices to be shared with each recipient 
     of an SBIR or STTR award by the agency granting the award.
       ``(2) Contents.--The best practices developed under 
     paragraph (1) shall include recommendations for protecting 
     the proprietary technology and intellectual property of the 
     small business concern from being shared unintentionally to 
     foreign individuals and entities through informational rights 
     of limited partners in venture capital, hedge fund, or 
     private equity firms that have investments in SBIR or STTR 
     recipients.''.

     SEC. __6. GAO REPORT.

       Paragraph (4) of section 4(b) of the SBIR and STTR 
     Extension Act of 2022 (Public Law 117-183; 136 Stat. 2194) is 
     amended to read as follows:
       ``(4) Gao report.--
       ``(A) In general.--Not later than 18 months after the date 
     of enactment of the INNOVATE Act, and annually thereafter 
     under September 30, 2028, the Comptroller General of the 
     United States shall conduct a study and submit to the 
     Committee on Small Business and Entrepreneurship and the 
     Committee on Armed Services of the Senate and the Committee 
     on Small Business, the Committee on Armed Services, and the 
     Committee on Science, Space, and Technology of the House of 
     Representatives a report on the implementation and best 
     practices of the due diligence programs established under 
     section 9(vv) of the Small Business Act (15 U.S.C. 638(vv)) 
     across Federal agencies required to establish an SBIR or STTR 
     program.
       ``(B) Study.--The study shall evaluate--
       ``(i) the effectiveness of each Federal agency that 
     participates in the SBIR program or STTR program in 
     identifying--

       ``(I) enhanced risk in cybersecurity practices in SBIR and 
     STTR projects;
       ``(II) enhanced risk in patents, including co-authorship 
     with academics in foreign countries of concern in SBIR and 
     STTR projects;
       ``(III) enhanced foreign influence risk among employees of 
     small business concerns involved in SBIR and STTR projects;
       ``(IV) foreign ownership of a small business concern 
     seeking an award, including the financial ties and 
     obligations (which shall include surety, equity, and debt 
     obligations) in SBIR and STTR projects; and
       ``(V) security risks among applicants to the SBIR program 
     or the STTR program, including connections to an entity, 
     including any affiliates, spinouts, or subsidiaries of the 
     entity, or individual on one or more of the lists referenced 
     in paragraph (16)(D) of section 9(g) of the Small Business 
     Act (15 U.S.C. 638(g));

       ``(ii) by year, the number of proposals and number of small 
     business concerns with foreign risks by each Federal agency 
     that participates in the SBIR program or STTR program, 
     including a delineation of how many of those small business 
     concerns have previously received an award under the SBIR 
     program or STTR program and the nature of those foreign risks 
     made by each Federal agency; and
       ``(iii) the extent to which the Inspector General and 
     counterintelligence authorities of each Federal agency that 
     participates in the SBIR or STTR program effectively conducts 
     investigations, audits, inspections, and outreach relating to 
     the due diligence program to assess security risks in the 
     SBIR or STTR program.''.

               TITLE __V--SIMPLIFYING SBIR-STTR STANDARDS

     SEC. __1. IMPROVING DIRECT TO PHASE II AUTHORITIES.

       Section 9(cc) of the Small Business Act (15 U.S.C. 638(cc)) 
     is amended to read as follows:
       ``(cc) Phase Flexibility.--
       ``(1) Awarding a phase ii award absent a phase i award.--
     Each agency with an SBIR program may provide to a small 
     business concern an award under Phase II of the SBIR program 
     with respect to a project, without regard to whether the 
     small business concern was provided an award under Phase I of 
     an SBIR program with respect to such project, if the head of 
     the agency determines that the small business concern has 
     completed the determinations described in subsection 
     (e)(4)(A) with respect to such project despite not having 
     been provided a Phase I award.
       ``(2) Limitations on awards.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     the head of each agency with an SBIR program may award not 
     more than 10 percent of the funds allocated for the SBIR 
     program of the agency in a given fiscal year under the 
     authority of this subsection.
       ``(B) National institutes of health and department of 
     defense.--The Director of the National Institutes of Health 
     may award not more than 30 percent of the funds allocated for 
     the SBIR program of the National Institutes of Health in a 
     given fiscal year and the Secretary of Defense may award not 
     more than 30 percent of the funds allocated for the SBIR 
     program of each component in the Department of Defense in a 
     given fiscal year under the authority of this subsection.
       ``(C) Limit on eligibility for awards.--An agency may not 
     make an award under this subsection to a small business 
     concern, including its affiliates, spinouts, and 
     subsidiaries, that has received more than 25 Phase II awards.
       ``(D) Limit on number of awards.--An agency may make not 
     more than 25 awards under this subsection to a small business 
     concern, including its affiliates, spinouts, and 
     subsidiaries.''.

     SEC. __2. IMPROVING SBIR AND STTR DATA COLLECTION.

       (a) Additional Data Fields in Sbir Database.--Section 
     9(k)(1) of the Small Business Act (15 U.S.C. 638(k)(1)) is 
     amended--
       (1) in subparagraph (E)(iv), by striking ``and'' at the 
     end;
       (2) in subparagraph (F)(v), by striking the period at the 
     end and inserting ``; and''; and
       (3) by adding at the end the following:
       ``(G) for each award granted, whether the award is 
     classified or designated as--
       ``(i) Phase 1A, under subsection (pp);
       ``(ii) direct to Phase II, under subsection (cc);
       ``(iii) subsequent Phase II, under subsection (bb)(1);
       ``(iv) strategic breakthrough award under subsection 
     (ff)(3);
       ``(v) Phase III prime contract award; or
       ``(vi) Phase III subcontract award.''.
       (b) Improving Fpds Data Tracking.--
       (1) In general.--The Administrator of General Services 
     shall update the Federal Procurement Data System described in 
     section 1122(a)(4) of title 41, United States Code, or any 
     successor system, to--
       (A) require reporting on whether an award under the SBIR or 
     STTR program is classified or designated as--
       (i) Phase 1A, under subsection (pp) of section 9 of the 
     Small Business Act (15 U.S.C. 638), as amended by this 
     division;
       (ii) direct to Phase II, under subsection (cc) of such 
     section;
       (iii) subsequent Phase II, under subsection (bb)(1) of such 
     section;
       (iv) a strategic breakthrough award under subsection 
     (ff)(3) of such section;
       (v) a Phase III prime contract award; or
       (vi) a Phase III subcontract award;
       (B) require reporting on whether a contract is designated 
     as a Phase III contract; and
       (C) allow a Government contracting officer, when recording 
     a Phase II or Phase III contract following on from work done 
     by a small business concern during a Phase I or Phase II 
     award to reference an SBIR or STTR contract identification 
     number for relevant prior SBIR or STTR work done.
       (2) No new funds.--No additional funds are authorized to be 
     appropriated for the purpose of carrying out this subsection.

     SEC. __3. STREAMLINING PROGRAM ADMINISTRATION.

       Section 9 of the Small Business Act (15 U.S.C. 638), as 
     amended by this division, is amended--
       (1) in subsection (bb)(3), by inserting ``or another 
     component of the same Federal agency'' after ``another 
     Federal agency'';
       (2) in subsection (gg)--
       (A) in the heading, by striking ``Pilot Program'' and 
     inserting ``Commercialization Readiness Program'';
       (B) by striking ``pilot'' each place the term appears;
       (C) by striking paragraph (7);
       (D) by redesignating paragraph (8) as paragraph (7); and
       (E) by amending paragraph (7), as so redesignated, to read 
     as follows:
       ``(7) Definition.--In this subsection, the term `covered 
     Federal agency'--
       ``(A) means a Federal agency participating in the SBIR 
     program or the STTR program; and
       ``(B) does not include the Department of Defense.'';
       (3) in subsection (hh)--
       (A) by striking ``Funding.--'' and all that follows through 
     ``Federal agencies participating'' and inserting ``Funding.--
     Federal agencies participating''; and
       (B) by striking paragraph (2);
       (4) in subsection (ii)(2)(B)--
       (A) in clause (ii), by adding ``and'' at the end;
       (B) in clause (iii), by striking ``; and'' and inserting a 
     period; and
       (C) by striking clause (iv);
       (5) in subsection (qq)(3), by striking subparagraph (I);
       (6) in subsection (vv)(3), by striking subparagraph (C);
       (7) in subsection (yy)--
       (A) in the subsection heading, by striking ``Pilot'';
       (B) by striking ``STTR Program.--'' and all that follows 
     through ``Not later than'' and inserting ``STTR Program.--Not 
     later than'';

[[Page S4931]]

       (C) by striking paragraph (2); and
       (D) by striking ``pilot'';
       (8) in subsection (zz)--
       (A) in the subsection heading, by striking ``Pilot'';
       (B) in paragraph (1)--
       (i) in the paragraph heading, by striking ``pilot'' and 
     inserting ``program'';
       (ii) in subparagraph (B), by striking ``3.25'' and 
     inserting ``3.50''; and
       (iii) in subparagraph (C), by striking ``0.46'' and 
     inserting ``0.21'';
       (C) by striking paragraph (3); and
       (D) by striking ``pilot'' each place the term appears.

     SEC. __4. EXTENDING SBIR AND STTR AUTHORIZATION.

       Section 9 of the Small Business Act (15 U.S.C. 638), as 
     amended by this division, is amended--
       (1) in subsection (m), by striking ``2025'' and inserting 
     ``2028''; and
       (2) in subsection (n)(1)(A), by striking ``2025'' and 
     inserting ``2028''.

                       TITLE __VI--MISCELLANEOUS

     SEC. __1. TECHNICAL AMENDMENTS.

       Section 9 of the Small Business Act (15 U.S.C. 638) is 
     amended--
       (1) by striking ``small-business concerns'' each place it 
     appears and inserting ``small business concerns'';
       (2) by striking ``Committee on Small Business of the 
     Senate'' each place it appears and inserting ``Committee on 
     Small Business and Entrepreneurship of the Senate'';
       (3) by striking ``Committee on Science and the'' each place 
     it appears and inserting ``Committee on Science, Space, and 
     Technology and the'';
       (4) in subsection (d)(2), by striking ``small-business 
     firms'' and inserting ``small business concerns'';
       (5) in subsection (e)(3), by inserting ``concern'' after 
     ``small business'';
       (6) in subsection (g)(4)(A), by striking ``SBIR proposals'' 
     and inserting `` SBIR solicitations'';
       (7) in subsection (g)(10), by striking ``,,'' and inserting 
     ``,'';
       (8) in subsection (g)(13)(A),by inserting ``malign'' before 
     ``foreign talent recruitment program'';
       (9) in subsection (o)(8), by striking ``,,'' and inserting 
     ``,'';
       (10) in subsection (o)(17)(A), by inserting ``malign'' 
     before ``foreign talent recruitment program''; and
       (11) in subsection (vv)(2)(B), by inserting ``subsection'' 
     before ``(g)(13)''.

     SEC. __2. REPEALS.

       (a) Repeal of Obsolete Provision.--Subsection (tt) of 
     section 9 of the Small Business Act (15 U.S.C. 638(tt)) is 
     repealed.
       (b) Repeal of Redundant Provision.--Subsection (oo) section 
     9 of the Small Business Act (15 U.S.C. 638(oo)) is repealed.

     SEC. __3. SEVERABILITY.

       If any provision of this division, or the application of 
     such provision to any person or circumstance, is held to be 
     invalid, the remainder of the division, and the application 
     of the remaining provisions, shall not be affected.
                                 ______