[Congressional Record Volume 172, Number 40 (Tuesday, March 3, 2026)]
[Senate]
[Pages S751-S756]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SMALL BUSINESS INNOVATION AND ECONOMIC SECURITY ACT
Ms. ERNST. Mr. President, I rise today as the Senate puts small
business first in America's innovation program and gives them the
certainty they need to build and grow.
For too long, our Nation's seed fund programs, SBIR and STTR, have
been allowed to prioritize a few large companies over truly small
businesses. Until now, these programs received blank checks to squander
tax dollars meant to advance innovation in our national interest and
have not protected taxpayer-funded technologies from foreign influence.
When confronted with this unacceptable status quo, I knew Congress
could work together to find a solution for our truly small businesses.
After working across the aisle and with our small businesses, we now
have the necessary reforms to strengthen America's seed fund while
unleashing small businesses to deliver for taxpayers and our
warfighters.
Together, our bipartisan, bicameral legislation will ensure awardees
safeguard tech against Chinese espionage, hold recipients accountable
to actually producing cutting-edge technologies and capabilities--no
more blank checks--require for the first time an annual limit on
applications to prioritize truly small businesses over large companies
who know how to game the system, establish the first of its kind
strategic breakthrough awards, and, finally, provide taxpayers with
transparency into who receives these awards.
These changes were necessary, and we are taking the time to
absolutely get it right. And, tonight, I am proud the Senate is
unanimously passing these long-overdue updates for innovators.
And at this time I would like to yield the floor to my ranking member
on the Small Business Committee Senator Markey.
Mr. MARKEY. Thank you, Madam Chair.
Mr. President, I am so happy to come to the floor today to reopen the
Small Business Innovation Research and Small Business Technology
Transfer Programs. These programs deliver more than $4 billion to
thousands of innovative small businesses across our country every
single year.
But for nearly 5 months, these programs have been shuttered. That
never should have happened.
In September, I came to the Senate floor seeking unanimous consent to
pass H.R. 5100, a bipartisan bill sponsored by the chairs and ranking
members of the Small Business Committee and House Science and
Technology Committee to temporarily extend these programs while
negotiations continued. Unfortunately, my motion was blocked and the
programs abruptly shut down.
As a result, the smallest SBIR and STTR companies were hurt.
Important research and development was stalled, and jobs were lost.
While I am glad to have come to an agreement, I am disappointed at
the suffering that was caused by the longest shutdown in the program's
history.
But we did ultimately come to an agreement. That is what we bring to
the floor here today.
More than 40 years ago, Congress created the SBIR Program to serve
four purposes: one, stimulate economic innovation; two, use America's
small businesses to meet Federal research and development needs; three,
to foster and encourage participation by minority and disadvantaged
individuals in innovation; and, four, to increase private sector
commercialization from Federal research and development.
Ten years later, Congress created the STTR Program to promote
collaborations between small businesses and research institutions.
And since the creation of the SBIR and STTR Programs, 33,000 American
small businesses have won more than $77 billion in awards.
In my own home State of Massachusetts, more than $9 billion in SBIR
and STTR funding has been won by more than 2,600 small businesses in
Massachusetts. It has been the engine of growth out on our tech belt.
The SBIR, STTR Programs have been overwhelmingly successful in
supporting innovative small businesses and their technologies. This is
just great news here. Data shows that 60 percent of all awardees in the
past 5 years are first-time winners. The SBIR Program has returned
anywhere from $22 to $33 for every $1 spent by the program that is
pushed into our economy. And through SBIR and STTR funding, small
businesses have created cutting-edge lifesaving medical breakthroughs.
In fact--this is an unbelievable number--one out of every eight FDA-
approved drugs is linked to the SBIR and STTR Programs.
SBIR funding ultimately led to the creation of a drug to treat COVID-
19 infections, a medication that treats HIV infections, new treatments
for Alzheimer's disease, a continuous glucose monitoring device for
type 1 diabetics, and even the world's smallest heart pump--SBIR, STTR.
These programs have also led to the creation of technologies we take
for granted, such as GPS, wireless communications systems, and even
self-automated vacuum cleaners.
Simply put, the benefits of the SBIR and STTR Programs touch our
lives far more than most people realize. It has unleashed a cornucopia
of innovation that now is a part of every American family's lives, and
we must keep this program funded and going.
The American people deserve to have access to the most innovative
technologies. Our brave men and women who defend our freedom deserve to
be equipped with the best available technology to keep themselves and
all of us at home safe as Senator Ernst said. Our families and our
friends who are battling illnesses deserve access to the most effective
breakthrough treatments that innovation can offer.
For the Federal Government to continue investing in the most
innovative technologies, SBIR and STTR funding must continue to be
based purely on the strength of an idea, the best ideas our country
has. That is the spirit of Darwinian paranoia-inducing competition,
which is the heart of our system in our country.
So now, after 5 months of the programs' lapse, I am proud that the
chair and I have negotiated a bipartisan agreement that does not
automatically eliminate any small business from the program. Unlike
previous proposals that would have automatically kicked out more than
50 successful small businesses across 20 States and severely curtailed
hundreds of small businesses, this reauthorization would allow small
businesses to continue innovating and creating groundbreaking
technology for our country.
In an attempt to preserve quality proposals, this legislation
requires each Agency with an SBIR and STTR Program to place a ceiling
on the number of proposals that any small business can submit. The
ceiling must be placed in one of three categories: one, a proposal
limit per fiscal year; two, a proposal limit per solicitation; or,
three, a proposal limit per topic.
This language provides Agencies the flexibility to administer these
programs in a manner that best promotes innovation.
I recently met with Agency officials across the administration,
including at the Pentagon, to ensure this language would not hinder the
development of cutting-edge technologies to protect our country. I
received assurances from the Pentagon--the largest awarding SBIR and
STTR Agency--that the provision would be implemented on a per-topic
basis and no company would be unfairly targeted. That means any small
business can take their best shot at solving any problem the
government--the NIH, the Defense Department--poses, and Agencies can
secure the most innovative solutions.
I will continue to hold this administration accountable and fight to
maintain the merit-based nature of these programs.
This reauthorization also includes several new improvements for the
SBIR and STTR communities.
The bill retains the bipartisan 2022 foreign due diligence program,
which requires Agencies to create a process to communicate with small
businesses if they have been flagged for a foreign risk, and explicitly
ends the blacklisting of companies. This transparency measure allows
small businesses the opportunity to address any foreign risk they pose,
likely unknown to them.
Two, the bill expands direct to phase II authority to the Department
of Energy and the National Aeronautics and Space Administration. This
will fast-
[[Page S752]]
track clean and cutting-edge technology.
Three, the bill preserves STTR Program funding for universities and
research institutions.
Four, the bill directs Agencies to train contracting officers so that
SBIR-STTR technologies can more effectively transition to
commercialization.
Five, it allows any unused fiscal year 2026 funding to be carried
over so that no SBIR or STTR funding is lost as a result of the
program's lapse. Therefore, that funding can be used next year.
Finally, the bill reauthorizes the program until 2031, giving some
stability, some reliability, some certainty to small businesses, which
they need after a tumultuous 5 months.
Throughout this process, I knew any agreement had to have broad
support, and that is why it was so important to get input from all
stakeholders and receive assurances from the implementing Agencies. So
while this legislation does not include every improvement--I would like
to see or make programs permanent--it is a bipartisan product that
resulted from a negotiation between the chair and myself as the ranking
member.
The agreement now immediately reopens the programs so that we can
once again stake our position on the world stage, empowering our most
nimble companies in our country and our nimble allies around the world
in the innovation ecosystem to partner with our brilliant small
businesses to make the technological breakthroughs to put us at the
cutting-edge of world leadership.
I thank you, Mr. President, and I thank you, Madam Chair, for our
work together.
I yield the floor.
The PRESIDING OFFICER. The Senator from Iowa.
Ms. ERNST. Mr. President, notwithstanding rule XXII, I ask unanimous
consent that the Senate proceed to the immediate consideration of S.
3971, which is at the desk.
The PRESIDING OFFICER. The clerk will report the bill by title.
The legislative clerk read as follows:
A bill (S. 3971) to extend the SBIR and STTR programs, and
for other purposes.
There being no objection, the Senate proceeded to consider the bill.
Ms. ERNST. I ask unanimous consent that the bill be considered read a
third time.
The PRESIDING OFFICER. Without objection, it is so ordered.
The bill was ordered to be engrossed for a third reading and was read
the third time.
Ms. ERNST. I know of no further debate on the bill.
The PRESIDING OFFICER. If there is no further debate on the bill, the
bill having been read the third time, the question is, Shall the bill
pass?
The bill (S. 3971) was passed as follows:
S. 3971
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 ``Small Business Innovation
and Economic Security Act''.
SEC. 2. BOLSTERING RESEARCH SECURITY OF SBIR AND STTR AWARDS.
(a) In General.--Section 9 of the Small Business Act (15
U.S.C. 638) 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
security risk 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 intelligence community, as
defined in section 3 of the National Security Act of 1947 (50
U.S.C. 3003), Federal law enforcement, and other
counterintelligence capabilities of the Federal
Government;'';
(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 security risk connecting the small business
concern to an entity, including any affiliates of the entity,
or individual on--
``(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;
132 Stat. 1917) 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 (10
U.S.C. 113 note) 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; or
``(viii) the Withhold Release Orders and Findings List
maintained by U.S. Customs and Border Protection;
``(E) has a security risk with a primary source that is
classified; or
``(F) has a security risk that the Federal agency
determines warrants a denial;'';
(D) by inserting after paragraph (16), as so redesignated,
the following:
``(17) provide for--
``(A) a process under which, upon making an award decision
to deny an application on the basis of a determination under
paragraph (16), or upon making a determination under
paragraph (16) that a small business concern has a security
risk described in that paragraph, the Federal agency provides
to the small business concern, as appropriate pursuant to the
discretion of the Federal agency and in a manner that does
not compromise national security, a notification--
``(i) advising the small business concern of such
determination; and
``(ii) identifying the basis for such determination; and
``(B) a policy that clarifies that receipt of an award
decision denying an application does not prohibit the small
business concern from being eligible for an award in a
subsequent award cycle;'';
(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)'';
(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
security risk 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 intelligence community, as
defined in section 3 of the National Security Act of 1947 (50
U.S.C. 3003), Federal law enforcement, and other
counterintelligence capabilities of the Federal
Government;'';
(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 of the entity,
or individual on--
``(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;
132 Stat. 1917) 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 (10
U.S.C. 113 note) 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;
[[Page S753]]
``(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; or
``(viii) the Withhold Release Orders and Findings List
maintained by U.S. Customs and Border Protection;
``(E) has a security risk with a primary source that is
classified; or
``(F) has a security risk that the Federal agency
determines warrants a denial;'';
(D) by inserting after paragraph (20) the following:
``(21) provide for--
``(A) a process under which, upon making an award decision
to deny an application on the basis of a determination under
paragraph (20), or upon making a determination under
paragraph (20) that a small business concern has a security
risk described in that paragraph, the Federal agency provides
to the small business concern, as appropriate pursuant to the
discretion of the Federal agency and in a manner that does
not compromise security, a notification--
``(i) advising the small business concern of such
determination; and
``(ii) identifying the basis for such determination; and
``(B) a policy that clarifies that receipt of an award
decision denying an application does not prohibit the small
business concern from being eligible for an award in a
subsequent award cycle;''; 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)''; and
(3) in subsection (vv)(2)--
(A) by amending subparagraph (A) to read as follows:
``(A) assess, using a risk-based approach as appropriate--
``(i) the cybersecurity practices of a small business
concern;
``(ii) patent analysis;
``(iii) employee analysis;
``(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) of the small business concern and employees of
the small business concern to a foreign country, foreign
person, or foreign entity;
``(v) foreign affiliations of a covered individual, owner,
or other key personnel of a small business concern with an
entity in a foreign country of concern;
``(vi) investment relationships of a small business concern
with an individual or entity in a foreign country of concern;
``(vii) technology licensing agreements or joint ventures
(including joint venture-like agreements) with an individual
or entity in a foreign country of concern; and
``(viii) business relationships between a covered
individual, owner, or other key personnel of a small business
concern and an individual or entity in a foreign country of
concern;'';
(B) in subparagraph (B), by striking the period at the end
and inserting ``; and''; and
(C) 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 described in subsections (g)(16)(D) and (o)(20)(D).''.
(b) GAO Study.--Section 4(b)(4) of the SBIR and STTR
Extension Act of 2022 (Public Law 117-183; 136 Stat. 2183) is
amended by striking ``3 years'' and inserting ``8 years''.
SEC. 3. 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.--The requirement
under paragraph (1) and the requirement to receive a waiver
from the Administrator under paragraph (4) do not apply to a
Federal agency for awards of not more than $30,000,000 to a
small business concern with funds made available under a
strategic breakthrough allocation (as defined in subsection
(ff)(3)(A)).''; and
(2) in subsection (ff), by adding at the end the following:
``(3) Strategic breakthrough awards.--
``(A) Strategic breakthrough allocation defined.--In this
paragraph, the term `strategic breakthrough allocation'
means, with respect to a Federal agency with a required
expenditure under subsection (f)(1) in excess of
$100,000,000, an expenditure amount from the SBIR allocation
under subsection (f)(1) of such agency of not more than 0.50
percent of the extramural budget for research or research and
development designated for such agency for fiscal year 2026
and every fiscal year thereafter.
``(B) Award.--Under this paragraph, a funding agreement may
be awarded to a small business concern by a Federal agency
using funds made available under a strategic breakthrough
allocation.
``(C) Fund parameters.--In the case of a Phase II agreement
that is awarded to a small business concern by a Federal
agency using funds made available under a strategic
breakthrough allocation, the following requirements shall
apply:
``(i) Award size and period of performance.--A Federal
agency may award from a strategic breakthrough allocation not
more than $30,000,000 to a small business concern, including
its affiliates, in a single award or series of awards based
on reaching production or development milestones, 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--
``(I) have been awarded not less than 1 prior Phase II
award under the SBIR or STTR program;
``(II) demonstrate not less than 100 percent matching funds
from--
``(aa) new private capital as a result of an award using
funds made available under a strategic breakthrough
allocation;
``(bb) new funding awarded by a government agency under a
program other than Phase I or II of the SBIR or STTR program
as a result of an award using funds made available under a
strategic breakthrough allocation; or
``(cc) a combination of funds described in items (aa) and
(bb);
``(III) demonstrate a technology that is an effective
solution, as determined by market research; and
``(IV) only be eligible for an award from the strategic
breakthrough allocation at the Department of Defense if the
small business concern--
``(aa) provides a product, process, or technology that
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 acquisition executive or higher in
an acquisition organization of the Department of Defense;
``(bb) provides a product, process, or technology that will
meet high priority requirements or operational needs of a
military department through a successful transition and into
the acquisition process; and
``(cc) demonstrates not less than 20 percent of the
required matching funds under subclause (II) come from new
funding awarded by the Department of Defense under a program
other than Phase I or II of the SBIR or STTR program as a
result of an award using funds made available under a
strategic breakthrough allocation.
``(iii) Deadline.--The Federal 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 any critical technology areas or requirements
deemed necessary by the Federal agency.
``(v) Selection criteria.--In making awards using funds
made available under a strategic breakthrough allocation, the
Federal agency shall consider--
``(I) the potential of the small business concern to
advance the national security capabilities of the United
States;
``(II) the potential of the small business concern to
provide new technologies or processes, or new applications of
existing technologies, that will enable new alternatives to
existing programs;
``(III) whether a customer in a Federal agency has
expressed an intent to purchase and integrate technology from
the small business concern into its operations; or
``(IV) whether a particular technology area is
undercapitalized by private investment.
``(D) Use of streamlined contracting mechanisms.--Each
Federal 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 ``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 (as
defined in subsection (ff)(3)(A),'' 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);
(3) by redesignating paragraphs (4), (5), and (6) as
paragraphs (3), (4), and (5), respectively; and
(4) in paragraph (5), as so redesignated--
(A) in subparagraph (B), by striking ``and'' at the end;
(B) by redesignating subparagraph (C) as subparagraph (D);
and
(C) 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
[[Page S754]]
concern under Phase III of the SBIR program; and''.
(c) Briefings.--
(1) Definition.--In this subsection, the term ``appropriate
committees of Congress'' means--
(A) the Committee on Small Business and Entrepreneurship of
the Senate;
(B) the Committee on Small Business of the House of
Representatives; and
(C) the Committee on Science, Space, and Technology of the
House of Representatives.
(2) General requirement.--Not later than 60 days after the
date of enactment of this Act, the head of each Federal
agency that is eligible to make an award from funds made
available under a strategic breakthrough allocation (as
defined in paragraph (3) of subsection (ff) of section 9 of
the Small Business Act (15 U.S.C. 638), as added by this
section) shall brief the appropriate committees of Congress
on whether that Federal agency plans to make awards pursuant
to the authority provided under such paragraph (3), including
the reasons why the Federal agency plans to, or does not plan
to, use that authority.
(3) Recurring briefing by federal agencies using funding
authority.--The head of each Federal agency that opts to make
awards pursuant to the authority under paragraph (3) of
subsection (ff) of section 9 of the Small Business Act (15
U.S.C. 638), as added by this section, shall, on a recurring
basis until the Federal agency finalizes procedures for
making those awards, brief the appropriate committees of
Congress regarding the implementation of such paragraph (3)
by that Federal agency.
(d) Termination.--Effective on September 30, 2031--
(1) this section and the amendments made by this section
shall cease to have effect; and
(2) the provisions of law amended by this section shall be
restored as if such amendments had not been enacted.
SEC. 4. REDUCING ADMINISTRATIVE BURDEN.
Section 9 of the Small Business Act (15 U.S.C. 638) is
amended by adding at the end the following:
``(aaa) Reducing Administrative Burden.--
``(1) In general.--With respect to fiscal year 2027 and
each fiscal year thereafter, the Director of the SBIR or STTR
program office of each Federal agency shall, pursuant to
authority that may not be delegated, set equally for all
small business concerns a limit on the maximum number of
proposals that a small business concern may submit in
response to Phase I solicitations and Phase II solicitations
under subsection (cc), published by that Federal agency,
including all components of that Federal agency, in a single
fiscal year. In establishing such a limitation, the Director
of the SBIR or STTR program office of each Federal agency
shall use 1 of the following methods:
``(A) A limit for any small business concern on a fiscal
year basis.
``(B) A limit for any small business concern on a
solicitation basis.
``(C) A limit for any small business concern on a topic
basis.
``(2) Waiver.--
``(A) In general.--On a topic by topic basis, the Director
of the SBIR or STTR program office of each Federal agency may
grant a waiver of the proposal limit under paragraph (1) at
the time of a solicitation announcement for a specific topic
for the SBIR or STTR program of the Federal agency if the
topic is time-sensitive and urgent to the mission of the
Federal agency.
``(B) Written justification.--For each topic for which a
waiver is sought under subparagraph (A), the Director of the
SBIR or STTR program office of the Federal agency shall
provide a written justification to the Administrator, and to
the Undersecretary described in subparagraph (C), for why the
use of the waiver authority is imperative for the agency's
mission and the nature of the immediate and critical need
that the Director reasonably believes cannot be met by small
business concerns that have not reached the proposal limit
under paragraph (1).
``(C) Timing.--The Undersecretary overseeing the SBIR or
STTR program at a Federal agency and the Administrator are
required to approve or disapprove a waiver and written
justification not later than 15 days after the date on which
the Undersecretary receives from the Director the waiver
request described in subparagraph (A) and the written
justification described in subparagraph (B).
``(D) Nondelegation.--The authority to grant or approve a
waiver under subparagraph (A) or (C), respectively, may not
be delegated.
``(E) Waiver effects.--If the Federal agency grants a
waiver under subparagraph (A) with respect to a topic for the
SBIR or STTR program of a Federal agency, paragraph (1) shall
not prohibit any small business concern from submitting an
SBIR or STTR proposal to that Federal agency under such
topic.
``(F) Record requirement.--Participating agencies shall
maintain information on topics to which waivers of the
proposal limit under this paragraph are granted, including
the written justifications for those waivers.
``(G) Limitation.--A Federal agency may not grant a waiver
under this paragraph with respect to more than 5 percent of
the topics of the SBIR and STTR programs of the Federal
agency in any fiscal year.
``(3) Reporting.--
``(A) In general.--Not later than 30 days after the date on
which the Director of the SBIR or STTR program office of a
Federal agency sets or changes a limit under paragraph (1),
the head of that Federal agency shall provide to the
Committee on Small Business and Entrepreneurship of the
Senate and the Committee on Small Business and the Committee
on Science, Space, and Technology of the House of
Representatives the methodology for setting or changing that
limit, the considerations made in setting or changing that
limit, and how many small business concerns are impacted by
that limit based on historical data.
``(B) Written notification.--Not later than 30 days after
the date on which the Director of the SBIR or STTR program
office of a Federal agency grants a waiver under paragraph
(2), the Director shall provide to the Committee on Small
Business and Entrepreneurship of the Senate and the Committee
on Small Business and the Committee on Science, Space, and
Technology of the House of Representatives a written
notification regarding the granting of that waiver, which
shall include the information described in paragraph (2)(F)
with respect to that waiver.
``(4) Timing.--The Director shall establish the proposal
limit under paragraph (1) not later than 90 days before the
start of fiscal year 2027 and each fiscal year thereafter.''.
SEC. 5. PHASE III AWARD EDUCATION.
Section 9 of the Small Business Act (15 U.S.C. 638) is
amended--
(1) 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 ``; and''; and
(C) by adding at the end the following:
``(20) the term `agency acquisition workforce' means the
employees of a Federal agency that have procurement or
acquisition responsibilities, including--
``(A) employees described in section 1703 of title 41,
United States Code; and
``(B) individuals that are part of the acquisition
workforce, as defined in section 101(a) of title 10, United
States Code.'';
(2) in subsection (r), by adding at the end the following:
``(5) Workforce training.--
``(A) In general.--The Administrator, in coordination with
the Secretary of Defense, the Administrator of General
Services, and the head of any other Federal agency that the
Administrator determines appropriate, shall establish
training activities for contracting officers and the agency
acquisition workforce of Federal agencies to ensure that all
such individuals are fully aware of all aspects of Phase III
awards under the SBIR and STTR programs, as applicable.
``(B) Training topics.--The training activities required
under subparagraph (A) shall include training on--
``(i) the missions, goals, and authorities of the SBIR and
STTR programs;
``(ii) the use of Phase III agreements;
``(iii) Phase III data rights; and
``(iv) the execution of Phase III sole source award
contracts.
``(C) Funding.--The training activities required under
subparagraph (A) may be carried out using funds made
available to carry out subsections (y) and (mm).''; and
(3) in subsection (mm)(1)--
(A) in subparagraph (J), by striking ``and'' at the end;
(B) in subparagraph (K), by striking the period at the end
and inserting ``; and''; and
(C) by adding at the end the following:
``(L) contracting officer and acquisition workforce
training activities pursuant to subsection (r)(5).''.
SEC. 6. PHASE III IMPROVEMENTS.
(a) Procurement Center Representative Directives.--
(1) In general.--Section 9(j)(4) of the Small Business Act
(15 U.S.C. 638(j)(4)) is amended by inserting before the
period at the end the following: ``, and advocate for the
maximum practicable use and transition of products, services,
and technologies developed under SBIR or STTR programs to
Phase III by means of Phase III awards to small business
concerns''.
(2) Modification deadline.--Not later than 1 year after the
date of enactment of this Act, the Administrator of the Small
Business Administration shall modify the policy directives
issued pursuant to subsection (j) of section 9 of the Small
Business Act (15 U.S.C. 638(j)) in accordance with paragraph
(4) of that subsection, as amended by paragraph (1).
(b) Phase III Award Simplification.--Section 9(r)(4) of the
Small Business Act (15 U.S.C. 638(r)(4)) is amended--
(1) in subparagraph (A), by striking ``and'' at the end;
(2) in subparagraph (B), by striking the period at the end
and inserting a semicolon; and
(3) by adding at the end the following:
``(C) develop simplified and standardized procedures and
model contracts for Phase I, Phase II, and Phase III SBIR
awards and report to the Administrator on actions taken by
the Federal agency in support of these objectives; and
``(D) as applicable, issue standardized solicitation
provisions and contract clauses that provide clear guidance
on the information that small business concerns participating
in SBIR or STTR programs can be expected to provide as part
of market research or as part of a proposal by those small
business concerns to establish eligibility for Phase III
awards.''.
[[Page S755]]
SEC. 7. TECHNICAL AND BUSINESS ASSISTANCE IMPROVEMENTS.
Section 9 of the Small Business Act (15 U.S.C. 638(q)), as
amended by this Act, is amended--
(1) in subsection (q)--
(A) in paragraph (1)--
(i) in the matter preceding subparagraph (A)--
(I) by striking ``may enter into an agreement with 1 or
more vendors selected under paragraph (2)(A) to provide small
business concerns engaged in SBIR or STTR projects with
technical and business assistance services'' and inserting
``shall authorize recipients of awards under the SBIR program
or the STTR program to select, if desired, technical and
business assistance provided under subparagraph (A) or (B) of
paragraph (2) with respect to SBIR or STTR projects'';
(II) by inserting ``cybersecurity assistance,'' after
``intellectual property protections,''; and
(III) by striking ``such concerns'' and inserting ``such
recipients'';
(ii) in subparagraph (C), by striking ``and'' at the end;
(iii) in subparagraph (D), by striking the period at the
end and inserting ``; and''; and
(iv) by adding at the end the following:
``(E) screening for potential foreign involvement in
technology development or commercialization activities.'';
and
(B) in paragraph (2)--
(i) in the paragraph heading, by striking ``Vendor
selection'' and inserting ``Eligible uses of funds.--'';
(ii) by striking subparagraph (A);
(iii) by redesignating subparagraph (B) as subparagraph
(A); and
(iv) by inserting after subparagraph (A), as so
redesignated, the following:
``(B) Staff.--A small business concern may, by contract or
otherwise, use funding provided under this section to hire
new staff, augment staff, or direct staff to conduct or
participate in training activities consistent with the goals
listed in paragraph (1).'';
(C) in paragraph (3)--
(i) by striking subparagraphs (A) and (B) and inserting the
following:
``(A) Phase i.--A Federal agency described in paragraph (1)
shall authorize a recipient of a Phase I SBIR or STTR award
to use not more than $6,500 per project, included as part of
the award of the recipient or in addition to the amount of
the award of the recipient as determined appropriate by the
head of the Federal agency, for the services described in
paragraph (1)--
``(i) provided through a vendor selected by the small
business concern under paragraph (2)(A); or
``(ii) achieved through the activities described in
paragraph (2)(B).
``(B) Phase ii.--A Federal agency described in paragraph
(1) shall authorize a recipient of a Phase II SBIR or STTR
award to utilize not more than $50,000 per project, included
as part of the award of the recipient or in addition to the
amount of the award of the recipient as determined
appropriate by the head of the Federal agency, for the
services described in paragraph (1)--
``(i) provided through a vendor selected by the small
business concern under paragraph (2)(A); or
``(ii) achieved through the activities described in
paragraph (2)(B).''; and
(D) by adding at the end the following:
``(5) Targeted review.--A Federal agency may perform
targeted reviews of technical and business assistance funding
as described in subsection (mm)(1)(F).''; and
(2) by adding at the end the following:
``(bbb) I-corps Participation.--
``(1) In general.--Each Federal agency with an Innovation
Corps program (commonly known as `I-Corps') that is required
to conduct an SBIR or STTR program shall--
``(A) provide an option for requesting participation in an
I-Corps teams course, I-Corps bootcamp, or another equivalent
training program to recipients of an award under the SBIR or
STTR program; and
``(B) authorize the recipients described in subparagraph
(A) to use amounts authorized under subsection (q) to
participate in the I-Corps teams course, I-Corps bootcamp, or
another equivalent training program.
``(2) Cost of participation.--The cost of participation by
a recipient described in paragraph (1)(A) in an I-Corps
course, I-Corps bootcamp, or another equivalent training
program may be provided by--
``(A) an I-Corps team SBIR or STTR grant;
``(B) funds awarded to the recipient under subsection (q);
``(C) funds made available to carry out subsection (mm);
``(D) the participating teams or other sources as
appropriate; or
``(E) any combination of sources described in subparagraphs
(A), (B), (C), and (D).''.
SEC. 8. 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) direct to Phase II, under subsection (cc);
``(ii) subsequent Phase II, under subsection (bb)(1);
``(iii) a strategic breakthrough award under subsection
(ff)(3);
``(iv) a Phase III prime contract award; or
``(v) a Phase III subcontract award.''.
(b) Improving Federal Procurement Data Systems Data
Tracking.--
(1) Definitions.--In this section:
(A) Federal agency; phase ii; phase iii; sbir; sttr.--The
terms ``Federal agency'', ``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)).
(B) Small business concern.--The term ``small business
concern'' has the meaning given the term in section 3 of the
Small Business Act (15 U.S.C. 632).
(2) Requirement to update.--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 under section 9 of the Small Business Act (15
U.S.C. 638) is classified or designated as--
(i) direct to Phase II, under subsection (cc) of such
section;
(ii) subsequent Phase II, under subsection (bb)(1) of such
section;
(iii) a strategic breakthrough award under subsection
(ff)(3) of such section, as added by this Act;
(iv) a Phase III prime contract award; or
(v) a Phase III subcontract award;
(B) require reporting on whether a contract is designated
as a Phase III contract;
(C) require reporting on whether non-SBIR contracts and
subcontracts are using SBIR- or STTR-funded technology; and
(D) require 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.
SEC. 9. EXTENDING SBIR AND STTR AUTHORIZATION.
(a) In General.--Section 9 of the Small Business Act (15
U.S.C. 638), as amended by this Act, is amended--
(1) in subsection (m), by striking ``September 30, 2025''
and inserting ``September 30, 2031''; and
(2) in subsection (n)(1)(A), by striking ``2025'' and
inserting ``2031''.
(b) Carry Over Funds.--If a Federal agency that
participates in the SBIR or STTR program has funds remaining
at the end of fiscal year 2026 from amounts required to be
expended under subsection (f)(1) or (n)(1), respectively, of
section 9 of the Small Business Act (15 U.S.C. 638), the
Federal agency may use those remaining funds in fiscal year
2027 for the SBIR or STTR program, as applicable, of the
Federal agency.
SEC. 10. EXTENSION OF SBIR AND STTR PROGRAMS AND ACTIVITIES.
(a) Phase Flexibility.--Section 9(cc) of the Small Business
Act (15 U.S.C. 638(cc)) is amended--
(1) by striking ``During fiscal years 2012 through 2025''
and inserting ``Until September 30, 2031'';
(2) by striking ``, and the Department of Education'' and
inserting ``the Department of Energy, the National
Aeronautics and Space Administration, and the Department of
Education''; and
(3) by inserting ``or STTR program'' after ``SBIR program''
each place that term appears.
(b) Commercialization Readiness Program for Civilian
Agencies Pilot Program.--Section 9(gg)(7) of the Small
Business Act (15 U.S.C. 638(gg)(7)) is amended by striking
``2025'' and inserting ``2031''.
(c) Accelerated Awards.--Section 9(hh)(2)(C) of the Small
Business Act (15 U.S.C. 638(hh)(2)(C)) is amended by striking
``September 30, 2025'' and inserting ``September 30, 2031''.
(d) Phase 0 Pilot Program.--Section 9(jj)(7) of the Small
Business Act (15 U.S.C. 638(jj)(7)) is amended by striking
``2025'' and inserting ``2031''.
(e) Administrative Assistance.--Section 9(mm)(1) of the
Small Business Act (15 U.S.C. 638(mm)(1)) is amended by
striking ``September 30, 2025'' and inserting ``September 30,
2031''.
(f) Increased Minimum Performance Standards.--Section
9(qq)(3)(I) of the Small Business Act (15 U.S.C.
638(qq)(3)(I)) is amended by striking ``September 30, 2025''
and inserting ``September 30, 2031''.
(g) Commercialization Assistance Pilot Programs.--Section
9(uu)(3) of the Small Business Act (15 U.S.C. 638(uu)(3)) is
amended by striking ``September 30, 2025'' and inserting
``September 30, 2031''.
(h) Due Diligence Program.--Section 9(vv)(3)(C) of the
Small Business Act (15 U.S.C. 638(vv)(3)(C)) is amended by
striking ``September 30, 2025'' and inserting ``September 30,
2031''.
(i) STTR Participation of Military Research and Educational
Institutions Pilot Program.--Section 9(yy)(2) of the Small
Business Act (15 U.S.C. 638(yy)(2)) is amended by striking
``September 30, 2025'' and inserting ``September 30, 2031''.
(j) Budget Calculation Pilot Program.--Section 9(zz)(3) of
the Small Business Act (15 U.S.C. 638(zz)(3)) is amended by
striking ``September 30, 2025'' and inserting ``September 30,
2031''.
(k) Special Operations Command Pilot.--Section 851(e) of
the National Defense Authorization Act for Fiscal Year 2020
(10 U.S.C. 4901 note) is amended by striking
[[Page S756]]
``September 30, 2025'' and inserting ``September 30, 2031''.
(l) Government Accountability Office Mandate Sunset.-- The
National Defense Authorization Act for Fiscal Year 2012
(Public Law 112-81) is amended by striking section 5142 (15
U.S.C. 638a).
Ms. ERNST. I ask unanimous consent that the motion to reconsider be
considered made and laid upon the table.
The PRESIDING OFFICER. Without objection, it is so ordered.
____________________