[Congressional Record (Bound Edition), Volume 156 (2010), Part 15]
[Senate]
[Pages 23490-23502]
[From the U.S. Government Publishing Office, www.gpo.gov]




                 SBIR/STTR REAUTHORIZATION ACT OF 2010

  Mr. NELSON of Florida. Mr. President, I ask unanimous consent that 
the Senate proceed to the immediate consideration of S. 4053, 
introduced earlier today.
  The PRESIDING OFFICER. The clerk will report the bill by title.
  The bill clerk read as follows:

       A bill (S. 4053) to reauthorize and improve the SBIR and 
     STTR programs, and for other purposes.


[[Page 23491]]


  The ACTING PRESIDENT pro tempore. There being no objection, the 
Senate proceeded to consider the bill.
  Mr. NELSON of Florida. Mr. President, I ask unanimous consent that 
the bill be read a third time and passed, the motion to reconsider be 
laid upon the table, and any statements relating to the bill be printed 
in the Record.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The bill (S. 4053) was ordered to be engrossed for a third reading, 
was read the third time, and passed, as follows:

                                S. 4053

       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 ``SBIR/STTR Reauthorization 
     Act of 2010''.

     SEC. 2. TABLE OF CONTENTS.

       The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. Definitions.

         TITLE I--REAUTHORIZATION OF THE SBIR AND STTR PROGRAMS

Sec. 101. Extension of termination dates.
Sec. 102. Status of the Office of Technology.
Sec. 103. SBIR allocation increase.
Sec. 104. STTR allocation increase.
Sec. 105. SBIR and STTR award levels.
Sec. 106. Agency and program flexibility.
Sec. 107. Elimination of Phase II invitations.
Sec. 108. Participation by firms with substantial investment from 
              multiple venture capital operating companies in a portion 
              of the SBIR program.
Sec. 109. SBIR and STTR special acquisition preference.
Sec. 110. Collaborating with Federal laboratories and research and 
              development centers.
Sec. 111. Notice requirement.
Sec. 112. Express authority for an agency to award sequential Phase II 
              awards for SBIR or STTR funded projects.

          TITLE II--OUTREACH AND COMMERCIALIZATION INITIATIVES

Sec. 201. Rural and State outreach.
Sec. 202. SBIR-STEM Workforce Development Grant Pilot Program.
Sec. 203. Technical assistance for awardees.
Sec. 204. Commercialization Readiness Program at Department of Defense.
Sec. 205. Commercialization Readiness Pilot Program for civilian 
              agencies.
Sec. 206. Accelerating cures.
Sec. 207. Federal agency engagement with SBIR and STTR awardees that 
              have been awarded multiple Phase I awards but have not 
              been awarded Phase II awards.
Sec. 208. Clarifying the definition of ``Phase III''.
Sec. 209. Shortened period for final decisions on proposals and 
              applications.

                  TITLE III--OVERSIGHT AND EVALUATION

Sec. 301. Streamlining annual evaluation requirements.
Sec. 302. Data collection from agencies for SBIR.
Sec. 303. Data collection from agencies for STTR.
Sec. 304. Public database.
Sec. 305. Government database.
Sec. 306. Accuracy in funding base calculations.
Sec. 307. Continued evaluation by the National Academy of Sciences.
Sec. 308. Technology insertion reporting requirements.
Sec. 309. Intellectual property protections.
Sec. 310. Obtaining consent from SBIR and STTR applicants to release 
              contact information to economic development 
              organizations.
Sec. 311. Pilot to allow funding for administrative, oversight, and 
              contract processing costs.
Sec. 312. GAO study with respect to venture capital operating company 
              involvement.
Sec. 313. Reducing vulnerability of SBIR and STTR programs to fraud, 
              waste, and abuse.
Sec. 314. Interagency policy committee.

                      TITLE IV--POLICY DIRECTIVES

Sec. 401. Conforming amendments to the SBIR and the STTR Policy 
              Directives.

                       TITLE V--OTHER PROVISIONS

Sec. 501. Research topics and program diversification.
Sec. 502. Report on SBIR and STTR program goals.
Sec. 503. Competitive selection procedures for SBIR and STTR programs.

     SEC. 3. DEFINITIONS.

       In this Act--
       (1) the terms ``Administration'' and ``Administrator'' mean 
     the Small Business Administration and the Administrator 
     thereof, respectively;
       (2) the terms ``extramural budget'', ``Federal agency'', 
     ``Small Business Innovation Research Program'', ``SBIR'', 
     ``Small Business Technology Transfer Program'', and ``STTR'' 
     have the meanings given such terms in section 9 of the Small 
     Business Act (15 U.S.C. 638); and
       (3) the term ``small business concern'' has the meaning 
     given that term under section 3 of the Small Business Act (15 
     U.S.C. 632).

         TITLE I--REAUTHORIZATION OF THE SBIR AND STTR PROGRAMS

     SEC. 101. EXTENSION OF TERMINATION DATES.

       (a) SBIR.--Section 9(m) of the Small Business Act (15 
     U.S.C. 638(m)) is amended--
       (1) by striking ``Termination.--'' and all that follows 
     through ``the authorization'' and inserting ``Termination.--
     The authorization'';
       (2) by striking ``2008'' and inserting ``2018''; and
       (3) by striking paragraph (2).
       (b) STTR.--Section 9(n)(1)(A) of the Small Business Act (15 
     U.S.C. 638(n)(1)(A)) is amended--
       (1) by striking ``In general.--'' and all that follows 
     through ``with respect'' and inserting ``In general.--With 
     respect'';
       (2) by striking ``2009'' and inserting ``2018''; and
       (3) by striking clause (ii).

     SEC. 102. STATUS OF THE OFFICE OF TECHNOLOGY.

       Section 9(b) of the Small Business Act (15 U.S.C. 638(b)) 
     is amended--
       (1) in paragraph (7), by striking ``and'' at the end;
       (2) in paragraph (8), by striking the period at the end and 
     inserting ``; and'';
       (3) by redesignating paragraph (8) as paragraph (9); and
       (4) by adding at the end the following:
       ``(10) to maintain an Office of Technology to carry out the 
     responsibilities of the Administration under this section, 
     which shall be--
       ``(A) headed by the Assistant Administrator for Technology, 
     who shall report directly to the Administrator; and
       ``(B) independent from the Office of Government Contracting 
     of the Administration and sufficiently staffed and funded to 
     comply with the oversight, reporting, and public database 
     responsibilities assigned to the Office of Technology by the 
     Administrator.''.

     SEC. 103. SBIR ALLOCATION INCREASE.

       Section 9(f) of the Small Business Act (15 U.S.C. 638(f)) 
     is amended--
       (1) in paragraph (1)--
       (A) in the matter preceding subparagraph (A), by striking 
     ``Each'' and inserting ``Except as provided in paragraph 
     (2)(B), each'';
       (B) in subparagraph (B), by striking ``and'' at the end; 
     and
       (C) by striking subparagraph (C) and inserting the 
     following:
       ``(C) not less than 2.5 percent of such budget in fiscal 
     year 2011;
       ``(D) not less than 2.6 percent of such budget in fiscal 
     year 2012;
       ``(E) not less than 2.7 percent of such budget in fiscal 
     year 2013;
       ``(F) not less than 2.8 percent of such budget in fiscal 
     year 2014;
       ``(G) not less than 2.9 percent of such budget in fiscal 
     year 2015;
       ``(H) not less than 3.0 percent of such budget in fiscal 
     year 2016;
       ``(I) not less than 3.1 percent of such budget in fiscal 
     year 2017;
       ``(J) not less than 3.2 percent of such budget in fiscal 
     year 2018;
       ``(K) not less than 3.3 percent of such budget in fiscal 
     year 2019;
       ``(L) not less than 3.4 percent of such budget in fiscal 
     year 2020; and
       ``(M) not less than 3.5 percent of such budget in fiscal 
     year 2021 and each fiscal year thereafter,''; and
       (2) in paragraph (2)--
       (A) by redesignating subparagraphs (A) and (B) as clauses 
     (i) and (ii), respectively, and adjusting the margins 
     accordingly;
       (B) by striking ``A Federal agency'' and inserting the 
     following:
       ``(A) In general.--A Federal agency''; and
       (C) by adding at the end the following:
       ``(B) Department of defense and department of energy.--For 
     the Department of Defense and the Department of Energy, to 
     the greatest extent practicable, the percentage of the 
     extramural budget in excess of 2.5 percent required to be 
     expended with small business concerns under subparagraphs (D) 
     through (M) of paragraph (1)--
       ``(i) may not be used for new Phase I or Phase II awards; 
     and
       ``(ii) shall be used for activities that further the 
     readiness levels of technologies developed under Phase II 
     awards, including conducting testing and evaluation to 
     promote the transition of such technologies into commercial 
     or defense products, or systems furthering the mission needs 
     of the Department of Defense or the Department of Energy, as 
     the case may be.''.

     SEC. 104. STTR ALLOCATION INCREASE.

       Section 9(n)(1)(B) of the Small Business Act (15 U.S.C. 
     638(n)(1)(B)) is amended--
       (1) in clause (i), by striking ``and'' at the end;
       (2) in clause (ii), by striking ``thereafter.'' and 
     inserting ``through fiscal year 2011;''; and
       (3) by adding at the end the following:
       ``(iii) 0.4 percent for fiscal years 2012 and 2013;
       ``(iv) 0.5 percent for fiscal years 2014 and 2015; and

[[Page 23492]]

       ``(v) 0.6 percent for fiscal year 2016 and each fiscal year 
     thereafter.''.

     SEC. 105. SBIR AND STTR AWARD LEVELS.

       (a) SBIR Adjustments.--Section 9(j)(2)(D) of the Small 
     Business Act (15 U.S.C. 638(j)(2)(D)) is amended--
       (1) by striking ``$100,000'' and inserting ``$150,000''; 
     and
       (2) by striking ``$750,000'' and inserting ``$1,000,000''.
       (b) STTR Adjustments.--Section 9(p)(2)(B)(ix) of the Small 
     Business Act (15 U.S.C. 638(p)(2)(B)(ix)) is amended--
       (1) by striking ``$100,000'' and inserting ``$150,000''; 
     and
       (2) by striking ``$750,000'' and inserting ``$1,000,000''.
       (c) Annual Adjustments.--Section 9 of the Small Business 
     Act (15 U.S.C. 638) is amended--
       (1) in subsection (j)(2)(D), by striking ``once every 5 
     years to reflect economic adjustments and programmatic 
     considerations'' and inserting ``every year for inflation''; 
     and
       (2) in subsection (p)(2)(B)(ix) by inserting ``(each of 
     which the Administrator shall adjust for inflation 
     annually)'' after ``$750,000,''.
       (d) Limitation on Size of Awards.--Section 9 of the Small 
     Business Act (15 U.S.C. 638) is amended by adding at the end 
     the following:
       ``(aa) Limitation on Size of Awards.--
       ``(1) Limitation.--No Federal agency may issue an award 
     under the SBIR program or the STTR program if the size of the 
     award exceeds the award guidelines established under this 
     section by more than 50 percent.
       ``(2) Maintenance of information.--Participating agencies 
     shall maintain information on awards exceeding the guidelines 
     established under this section, including--
       ``(A) the amount of each award;
       ``(B) a justification for exceeding the award amount;
       ``(C) the identity and location of each award recipient; 
     and
       ``(D) whether an award recipient has received any venture 
     capital investment and, if so, whether the recipient is 
     majority-owned and controlled by multiple venture capital 
     operating companies.
       ``(3) Reports.--The Administrator shall include the 
     information described in paragraph (2) in the annual report 
     of the Administrator to Congress.
       ``(4) Rule of construction.--Nothing in this subsection 
     shall be construed to prevent a Federal agency from 
     supplementing an award under the SBIR program or the STTR 
     program using funds of the Federal agency that are not part 
     of the SBIR program or the STTR program of the Federal 
     agency.''.

     SEC. 106. AGENCY AND PROGRAM FLEXIBILITY.

       Section 9 of the Small Business Act (15 U.S.C. 638), as 
     amended by this Act, is amended by adding at the end the 
     following:
       ``(bb) Subsequent Phase II Awards.--
       ``(1) Agency flexibility.--A small business concern that 
     received an award from a Federal agency under this section 
     shall be eligible to receive a subsequent Phase II award from 
     another Federal agency, if the head of each relevant Federal 
     agency or the relevant component of the Federal agency makes 
     a written determination that the topics of the relevant 
     awards are the same and both agencies report the awards to 
     the Administrator for inclusion in the public database under 
     subsection (k).
       ``(2) SBIR and sttr program flexibility.--A small business 
     concern that received an award under this section under the 
     SBIR program or the STTR program may receive a subsequent 
     Phase II award in either the SBIR program or the STTR program 
     and the participating agency or agencies shall report the 
     awards to the Administrator for inclusion in the public 
     database under subsection (k).
       ``(3) Preventing duplicative awards.--Before making an 
     award under paragraph (1) or (2), the head of a Federal 
     agency shall verify that the project to be performed with the 
     award has not been funded under the SBIR program or STTR 
     program of another Federal agency.''.

     SEC. 107. ELIMINATION OF PHASE II INVITATIONS.

       (a) In General.--Section 9(e) of the Small Business Act (15 
     U.S.C. 638(e)) is amended--
       (1) in paragraph (4)(B), by striking ``to further'' and 
     inserting: ``which shall not include any invitation, pre-
     screening, pre-selection, or down-selection process for 
     eligibility for the second phase, that will further''; and
       (2) in paragraph (6)(B), by striking ``to further develop 
     proposed ideas to'' and inserting ``which shall not include 
     any invitation, pre-screening, pre-selection, or down-
     selection process for eligibility for the second phase, that 
     will further develop proposals that''.

     SEC. 108. PARTICIPATION BY FIRMS WITH SUBSTANTIAL INVESTMENT 
                   FROM MULTIPLE VENTURE CAPITAL OPERATING 
                   COMPANIES IN A PORTION OF THE SBIR PROGRAM.

       (a) In General.--Section 9 of the Small Business Act (15 
     U.S.C. 638), as amended by this Act, is amended by adding at 
     the end the following:
       ``(cc) Participation of Small Business Concerns Majority-
     owned by Venture Capital Operating Companies in the SBIR 
     Program.--
       ``(1) Authority.--Upon a written determination described in 
     paragraph (2) provided to the Administrator and to the 
     Committee on Small Business and Entrepreneurship of the 
     Senate and the Committee on Small Business of the House of 
     Representatives not later than 30 days before the date on 
     which an award is made--
       ``(A) the Director of the National Institutes of Health, 
     the Secretary of Energy, and the Director of the National 
     Science Foundation may award not more than 25 percent of the 
     funds allocated for the SBIR program of the Federal agency to 
     small business concerns that are owned in majority part by 
     multiple venture capital operating companies through 
     competitive, merit-based procedures that are open to all 
     eligible small business concerns; and
       ``(B) the head of a Federal agency other than a Federal 
     agency described in subparagraph (A) that participates in the 
     SBIR program may award not more than 15 percent of the funds 
     allocated for the SBIR program of the Federal agency to small 
     business concerns that are owned in majority part by multiple 
     venture capital operating companies through competitive, 
     merit-based procedures that are open to all eligible small 
     business concerns.
       ``(2) Determination.--A written determination described in 
     this paragraph is a written determination by the head of a 
     Federal agency that explains how the use of the authority 
     under paragraph (1) will--
       ``(A) induce additional venture capital funding of small 
     business innovations;
       ``(B) substantially contribute to the mission of the 
     Federal agency;
       ``(C) demonstrate a need for public research; and
       ``(D) otherwise fulfill the capital needs of small business 
     concerns for additional financing for the SBIR project.
       ``(3) Registration.--A small business concern that is 
     majority-owned by multiple venture capital operating 
     companies and qualified for participation in the program 
     authorized under paragraph (1) shall--
       ``(A) register with the Administrator on the date that the 
     small business concern submits an application for an award 
     under the SBIR program; and
       ``(B) indicate in any SBIR proposal that the small business 
     concern is registered under subparagraph (A) as majority-
     owned by multiple venture capital operating companies.
       ``(4) Compliance.--
       ``(A) In general.--The head of a Federal agency that makes 
     an award under this subsection during a fiscal year shall 
     collect and submit to the Administrator data relating to the 
     number and dollar amount of Phase I awards, Phase II awards, 
     and any other category of awards by the Federal agency under 
     the SBIR program during that fiscal year.
       ``(B) Annual reporting.--The Administrator shall include as 
     part of each annual report by the Administration under 
     subsection (b)(7) any data submitted under subparagraph (A) 
     and a discussion of the compliance of each Federal agency 
     that makes an award under this subsection during the fiscal 
     year with the maximum percentages under paragraph (1).
       ``(5) Enforcement.--If a Federal agency awards more than 
     the percent of the funds allocated for the SBIR program of 
     the Federal agency authorized under paragraph (1) for a 
     purpose described in paragraph (1), the head of the Federal 
     agency shall transfer an amount equal to the amount awarded 
     in excess of the amount authorized under paragraph (1) to the 
     funds for general SBIR programs from the non-SBIR and non-
     STTR research and development funds of the Federal agency not 
     later than 180 days after the date on which the Federal 
     agency made the award that caused the total awarded under 
     paragraph (1) to be more than the amount authorized under 
     paragraph (1) for a purpose described in paragraph (1).
       ``(6) Evaluation criteria.--A Federal agency may not use 
     investment of venture capital as a criterion for the award of 
     contracts under the SBIR program or STTR program.''.
       (b) Technical and Conforming Amendment.--Section 3 of the 
     Small Business Act (15 U.S.C. 632) is amended by adding at 
     the end the following:
       ``(aa) Venture Capital Operating Company.--In this Act, the 
     term `venture capital operating company' means an entity 
     described in clause (i), (v), or (vi) of section 
     121.103(b)(5) of title 13, Code of Federal Regulations (or 
     any successor thereto).''.
       (c) Rulemaking to Ensure That Firms That Are Majority-owned 
     by Multiple Venture Capital Operating Companies Are Able to 
     Participate in a Portion of the SBIR Program.--
       (1) Statement of congressional intent.--It is the stated 
     intent of Congress that the Administrator should promulgate 
     regulations to carry out the authority under section 9(cc) of 
     the Small Business Act, as added by this section, that--
       (A) permit small business concerns that are majority-owned 
     by multiple venture capital operating companies to 
     participate in the SBIR program in accordance with section 
     9(cc) of the Small Business Act;
       (B) provide specific guidance for small business concerns 
     that are majority-owned

[[Page 23493]]

     by multiple venture capital operating companies with regard 
     to eligibility, participation, and affiliation rules; and
       (C) preserve and maintain the integrity of the SBIR program 
     as a program for small business concerns in the United 
     States, prohibiting large businesses or large entities or 
     foreign-owned businesses or entities from participation in 
     the program established under section 9 of the Small Business 
     Act.
       (2) Rulemaking required.--
       (A) Proposed regulations.--Not later than April 30, 2011, 
     the Administrator shall issue proposed regulations to amend 
     section 121.103 (relating to determinations of affiliation 
     applicable to the SBIR program) and section 121.702 (relating 
     to ownership and control standards and size standards 
     applicable to the SBIR program) of title 13, Code of Federal 
     Regulations, for firms that are majority-owned by multiple 
     venture capital operating companies and participating in the 
     SBIR program solely under the authority under section 9(cc) 
     of the Small Business Act, as added by this section.
       (B) Final regulations.--Not later than December 31, 2011, 
     and after providing notice of and opportunity for comment on 
     the proposed regulations issued under subparagraph (A), the 
     Administrator shall issue final or interim final regulations 
     under this subsection.
       (3) Contents.--
       (A) In general.--The regulations issued under this 
     subsection shall permit the participation of applicants 
     majority-owned by multiple venture capital operating 
     companies in the SBIR program in accordance with section 
     9(cc) of the Small Business Act, as added by this section, 
     unless the Administrator determines--
       (i) in accordance with the size standards established under 
     subparagraph (B), that the applicant is--

       (I) a large business or large entity; or
       (II) majority-owned or controlled by a large business or 
     large entity; or

       (ii) in accordance with the criteria established under 
     subparagraph (C), that the applicant--

       (I) is a foreign business or a foreign entity or is not a 
     citizen of the United States or alien lawfully admitted for 
     permanent residence; or
       (II) is majority-owned or controlled by a foreign business, 
     foreign entity, or person who is not a citizen of the United 
     States or alien lawfully admitted for permanent residence.

       (B) Size standards.--Under the authority to establish size 
     standards under paragraphs (2) and (3) of section 3(a) of the 
     Small Business Act (15 U.S.C. 632(a)), the Administrator 
     shall, in accordance with paragraph (1) of this subsection, 
     establish size standards for applicants seeking to 
     participate in the SBIR program solely under the authority 
     under section 9(cc) of the Small Business Act, as added by 
     this section.
       (C) Criteria for determining foreign ownership.--The 
     Administrator shall establish criteria for determining 
     whether an applicant meets the requirements under 
     subparagraph (A)(ii), and, in establishing the criteria, 
     shall consider whether the criteria should include--
       (i) whether the applicant is at least 51 percent owned or 
     controlled by citizens of the United States or domestic 
     venture capital operating companies;
       (ii) whether the applicant is domiciled in the United 
     States; and
       (iii) whether the applicant is a direct or indirect 
     subsidiary of a foreign-owned firm, including whether the 
     criteria should include that an applicant is a direct or 
     indirect subsidiary of a foreign-owned entity if--

       (I) any venture capital operating company that owns more 
     than 20 percent of the applicant is a direct or indirect 
     subsidiary of a foreign-owned entity; or
       (II) in the aggregate, entities that are direct or indirect 
     subsidiaries of foreign-owned entities own more than 49 
     percent of the applicant.

       (D) Criteria for determining affiliation.--The 
     Administrator shall establish criteria, in accordance with 
     paragraph (1), for determining whether an applicant is 
     affiliated with a venture capital operating company or any 
     other business that the venture capital operating company has 
     financed and, in establishing the criteria, shall specify 
     that--
       (i) if a venture capital operating company that is 
     determined to be affiliated with an applicant is a minority 
     investor in the applicant, the portfolio companies of the 
     venture capital operating company shall not be determined to 
     be affiliated with the applicant, unless--

       (I) the venture capital operating company owns a majority 
     of the portfolio company; or
       (II) the venture capital operating company holds a majority 
     of the seats on the board of directors of the portfolio 
     company;

       (ii) subject to clause (i), the Administrator retains the 
     authority to determine whether a venture capital operating 
     company is affiliated with an applicant, including 
     establishing other criteria;
       (iii) the Administrator may not determine that a portfolio 
     company of a venture capital operating company is affiliated 
     with an applicant based solely on one or more shared 
     investors; and
       (iv) subject to clauses (i), (ii), and (iii), the 
     Administrator retains the authority to determine whether a 
     portfolio company of a venture capital operating company is 
     affiliated with an applicant based on factors independent of 
     whether there is a shared investor, such as whether there are 
     contractual obligations between the portfolio company and the 
     applicant.
       (4) Enforcement.--If the Administrator does not issue final 
     or interim final regulations under this subsection on or 
     before December 31, 2011, the Administrator may not carry out 
     any activities under section 4(h) of the Small Business Act 
     (15 U.S.C. 633(h)) (as continued in effect pursuant to the 
     Act entitled ``An Act to extend temporarily certain 
     authorities of the Small Business Administration'', approved 
     October 10, 2006 (Public Law 109-316; 120 Stat. 1742)) during 
     the period beginning on the day after December 31, 2011, and 
     ending on the date on which the final or interim final 
     regulations are issued.
       (5) Definition.--In this subsection, the term ``venture 
     capital operating company'' has the same meaning as in 
     section 3(aa) of the Small Business Act, as added by this 
     section.
       (d) Assistance for Determining Affiliates.--
       (1) Clear explanation required.--Not later than 30 days 
     after the date of enactment of this Act, the Administrator 
     shall post on the website of the Administration (with a 
     direct link displayed on the homepage of the website of the 
     Administration or the SBIR and STTR websites of the 
     Administration)--
       (A) a clear explanation of the SBIR and STTR affiliation 
     rules under part 121 of title 13, Code of Federal 
     Regulations; and
       (B) contact information for officers or employees of the 
     Administration who--
       (i) upon request, shall review an issue relating to the 
     rules described in subparagraph (A); and
       (ii) shall respond to a request under clause (i) not later 
     than 20 business days after the date on which the request is 
     received.
       (2) Inclusion of affiliation rules for certain small 
     business concerns.--On and after the date on which the final 
     regulations under subsection (c) are issued, the 
     Administrator shall post on the website of the Administration 
     information relating to the regulations, in accordance with 
     paragraph (1).

     SEC. 109. SBIR AND STTR SPECIAL ACQUISITION PREFERENCE.

       Section 9(r) of the Small Business Act (15 U.S.C. 638(r)) 
     is amended by adding at the end the following:
       ``(4) Phase iii awards.--To the greatest extent 
     practicable, Federal agencies and Federal prime contractors 
     shall issue Phase III awards relating to technology, 
     including sole source awards, to the SBIR and STTR award 
     recipients that developed the technology.''.

     SEC. 110. COLLABORATING WITH FEDERAL LABORATORIES AND 
                   RESEARCH AND DEVELOPMENT CENTERS.

       Section 9 of the Small Business Act (15 U.S.C. 638), as 
     amended by this Act, is amended by adding at the end the 
     following:
       ``(dd) Collaborating With Federal Laboratories and Research 
     and Development Centers.--
       ``(1) Authorization.--Subject to the limitations under this 
     section, the head of each participating Federal agency may 
     make SBIR and STTR awards to any eligible small business 
     concern that--
       ``(A) intends to enter into an agreement with a Federal 
     laboratory or federally funded research and development 
     center for portions of the activities to be performed under 
     that award; or
       ``(B) has entered into a cooperative research and 
     development agreement (as defined in section 12(d) of the 
     Stevenson-Wydler Technology Innovation Act of 1980 (15 U.S.C. 
     3710a(d))) with a Federal laboratory.
       ``(2) Prohibition.--No Federal agency shall--
       ``(A) condition an SBIR or STTR award upon entering into 
     agreement with any Federal laboratory or any federally funded 
     laboratory or research and development center for any portion 
     of the activities to be performed under that award;
       ``(B) approve an agreement between a small business concern 
     receiving a SBIR or STTR award and a Federal laboratory or 
     federally funded laboratory or research and development 
     center, if the small business concern performs a lesser 
     portion of the activities to be performed under that award 
     than required by this section and by the SBIR Policy 
     Directive and the STTR Policy Directive of the Administrator; 
     or
       ``(C) approve an agreement that violates any provision, 
     including any data rights protections provision, of this 
     section or the SBIR and the STTR Policy Directives.
       ``(3) Implementation.--Not later than 180 days after the 
     date of enactment of this subsection, the Administrator shall 
     modify the SBIR Policy Directive and the STTR Policy 
     Directive issued under this section to ensure that small 
     business concerns--
       ``(A) have the flexibility to use the resources of the 
     Federal laboratories and federally funded research and 
     development centers; and
       ``(B) are not mandated to enter into agreement with any 
     Federal laboratory or any federally funded laboratory or 
     research and development center as a condition of an 
     award.''.

[[Page 23494]]



     SEC. 111. NOTICE REQUIREMENT.

       (a) SBIR Program.--Section 9(g) of the Small Business Act 
     (15 U.S.C. 638(g)) is amended--
       (1) in paragraph (10), by striking ``and'' at the end;
       (2) in paragraph (11), by striking the period at the end 
     and inserting a semicolon; and
       (3) by adding at the end the following:
       ``(12) provide timely notice to the Administrator of any 
     case or controversy before any Federal judicial or 
     administrative tribunal concerning the SBIR program of the 
     Federal agency; and''.
       (b) STTR Program.--Section 9(o) of the Small Business Act 
     (15 U.S.C. 638(o)) is amended--
       (1) by striking paragraph (15);
       (2) in paragraph (16), by striking the period at the end 
     and inserting ``; and'';
       (3) by redesignating paragraph (16) as paragraph (15); and
       (4) by adding at the end the following:
       ``(16) provide timely notice to the Administrator of any 
     case or controversy before any Federal judicial or 
     administrative tribunal concerning the STTR program of the 
     Federal agency.''.

     SEC. 112. EXPRESS AUTHORITY FOR AN AGENCY TO AWARD SEQUENTIAL 
                   PHASE II AWARDS FOR SBIR OR STTR FUNDED 
                   PROJECTS.

       Section 9 of the Small Business Act (15 U.S.C. 638), as 
     amended by this Act, is amended by adding at the end the 
     following:
       ``(ee) Additional Phase II SBIR and STTR Awards.--A small 
     business concern that receives a Phase II SBIR award or a 
     Phase II STTR award for a project remains eligible to receive 
     an additional Phase II SBIR award or Phase II STTR award for 
     that project.''.

          TITLE II--OUTREACH AND COMMERCIALIZATION INITIATIVES

     SEC. 201. RURAL AND STATE OUTREACH.

       (a) In General.--Section 9 of the Small Business Act (15 
     U.S.C. 638) is amended by inserting after subsection (r) the 
     following:
       ``(s) Federal and State Technology Partnership Program.--
       ``(1) Definitions.--In this subsection, the following 
     definitions apply:
       ``(A) Applicant.--The term `applicant' means an entity, 
     organization, or individual that submits a proposal for an 
     award or a cooperative agreement under this subsection.
       ``(B) Fast program.--The term `FAST program' means the 
     Federal and State Technology Partnership Program established 
     under this subsection.
       ``(C) Recipient.--The term `recipient' means a person that 
     receives an award or becomes party to a cooperative agreement 
     under this subsection.
       ``(D) State.--The term `State' means each of the several 
     States, the District of Columbia, the Commonwealth of Puerto 
     Rico, the Virgin Islands, Guam, and American Samoa.
       ``(E) Definitions relating to mentoring networks.--The 
     terms `business advice and counseling', `mentor', and 
     `mentoring network' have the meanings given those terms in 
     section 34(e).
       ``(2) Establishment of program.--The Administrator shall 
     establish a program to be known as the Federal and State 
     Technology Partnership Program, the purpose of which shall be 
     to strengthen the technological competitiveness of small 
     business concerns in the States.
       ``(3) Grants and cooperative agreements.--
       ``(A) Joint review.--In carrying out the FAST program, the 
     Administrator and the program managers for the SBIR program 
     and STTR program at the National Science Foundation, the 
     Department of Defense, and any other Federal agency 
     determined appropriate by the Administrator shall jointly 
     review proposals submitted by applicants and may make awards 
     or enter into cooperative agreements under this subsection 
     based on the factors for consideration set forth in 
     subparagraph (B), in order to enhance or develop in a State--
       ``(i) technology research and development by small business 
     concerns;
       ``(ii) technology transfer from university research to 
     technology-based small business concerns;
       ``(iii) technology deployment and diffusion benefitting 
     small business concerns;
       ``(iv) the technological capabilities of small business 
     concerns through the establishment or operation of consortia 
     comprised of entities, organizations, or individuals, 
     including--

       ``(I) State and local development agencies and entities;
       ``(II) representatives of technology-based small business 
     concerns;
       ``(III) industries and emerging companies;
       ``(IV) universities; and
       ``(V) small business development centers; and

       ``(v) outreach, financial support, and technical assistance 
     to technology-based small business concerns participating in 
     or interested in participating in an SBIR program or STTR 
     program, including initiatives--

       ``(I) to make grants or loans to companies to pay a portion 
     or all of the cost of developing SBIR or STTR proposals;
       ``(II) to establish or operate a Mentoring Network within 
     the FAST program to provide business advice and counseling 
     that will assist small business concerns that have been 
     identified by FAST program participants, program managers of 
     participating SBIR agencies, the Administration, or other 
     entities that are knowledgeable about the SBIR and STTR 
     programs as good candidates for the SBIR and STTR programs, 
     and that would benefit from mentoring, in accordance with 
     section 34;
       ``(III) to create or participate in a training program for 
     individuals providing SBIR or STTR outreach and assistance at 
     the State and local levels; and
       ``(IV) to encourage the commercialization of technology 
     developed through funding under the SBIR program or the STTR 
     program.

       ``(B) Selection considerations.--In making awards or 
     entering into cooperative agreements under this subsection, 
     the Administrator and the program managers referred to in 
     subparagraph (A)--
       ``(i) may only consider proposals by applicants that intend 
     to use a portion of the Federal assistance provided under 
     this subsection to provide outreach, financial support, or 
     technical assistance to technology-based small business 
     concerns participating in or interested in participating in 
     the SBIR program or STTR program; and
       ``(ii) shall consider, at a minimum--

       ``(I) whether the applicant has demonstrated that the 
     assistance to be provided would address unmet needs of small 
     business concerns in the community, and whether it is 
     important to use Federal funding for the proposed activities;
       ``(II) whether the applicant has demonstrated that a need 
     exists to increase the number or success of small high-
     technology businesses in the State or an area of the State, 
     as measured by the number of Phase I and Phase II SBIR awards 
     that have historically been received by small business 
     concerns in the State or area of the State;
       ``(III) whether the projected costs of the proposed 
     activities are reasonable;
       ``(IV) whether the proposal integrates and coordinates the 
     proposed activities with other State and local programs 
     assisting small high-technology firms in the State;
       ``(V) the manner in which the applicant will measure the 
     results of the activities to be conducted; and
       ``(VI) whether the proposal addresses the needs of small 
     business concerns--

       ``(aa) owned and controlled by women;
       ``(bb) that are socially and economically disadvantaged 
     small business concerns (as defined in section 8(a)(4)(A));
       ``(cc) that are HUBZone small business concerns;
       ``(dd) located in areas that have historically not 
     participated in the SBIR and STTR programs;
       ``(ee) owned and controlled by service-disabled veterans;
       ``(ff) owned and controlled by Native Americans; and
       ``(gg) located in geographic areas with an unemployment 
     rate that exceeds the national unemployment rate, based on 
     the most recently available monthly publications of the 
     Bureau of Labor Statistics of the Department of Labor.
       ``(C) Proposal limit.--Not more than 1 proposal may be 
     submitted for inclusion in the FAST program under this 
     subsection to provide services in any one State in any 1 
     fiscal year.
       ``(D) Process.--Proposals and applications for assistance 
     under this subsection shall be in such form and subject to 
     such procedures as the Administrator shall establish. The 
     Administrator shall promulgate regulations establishing 
     standards for the consideration of proposals under 
     subparagraph (B), including standards regarding each of the 
     considerations identified in subparagraph (B)(ii).
       ``(4) Cooperation and coordination.--In carrying out the 
     FAST program, the Administrator shall cooperate and 
     coordinate with--
       ``(A) Federal agencies required by this section to have an 
     SBIR program; and
       ``(B) entities, organizations, and individuals actively 
     engaged in enhancing or developing the technological 
     capabilities of small business concerns, including--
       ``(i) State and local development agencies and entities;
       ``(ii) State committees established under the Experimental 
     Program to Stimulate Competitive Research of the National 
     Science Foundation (as established under section 113 of the 
     National Science Foundation Authorization Act of 1988 (42 
     U.S.C. 1862g));
       ``(iii) State science and technology councils; and
       ``(iv) representatives of technology-based small business 
     concerns.
       ``(5) Administrative requirements.--
       ``(A) Competitive basis.--Awards and cooperative agreements 
     under this subsection shall be made or entered into, as 
     applicable, on a competitive basis.
       ``(B) Matching requirements.--
       ``(i) In general.--The non-Federal share of the cost of an 
     activity (other than a planning activity) carried out using 
     an award or under a cooperative agreement under this 
     subsection shall be--

       ``(I) except as provided in clause (iii), 35 cents for each 
     Federal dollar, in the case of a recipient that will serve 
     small business concerns located in 1 of the 18 States 
     receiving the fewest Phase I SBIR awards;

[[Page 23495]]

       ``(II) except as provided in clause (ii) or (iii), 1 dollar 
     for each Federal dollar, in the case of a recipient that will 
     serve small business concerns located in 1 of the 16 States 
     receiving the greatest number of Phase I SBIR awards; and
       ``(III) except as provided in clause (ii) or (iii), 50 
     cents for each Federal dollar, in the case of a recipient 
     that will serve small business concerns located in a State 
     that is not described in subclause (I) or (II) that is 
     receiving Phase I SBIR awards.

       ``(ii) Low-income areas.--The non-Federal share of the cost 
     of the activity carried out using an award or under a 
     cooperative agreement under this subsection shall be 35 cents 
     for each Federal dollar that will be directly allocated by a 
     recipient described in clause (i) to serve small business 
     concerns located in a qualified census tract, as that term is 
     defined in section 42(d)(5)(B)(ii)(I) of the Internal Revenue 
     Code of 1986. Federal dollars not so allocated by that 
     recipient shall be subject to the matching requirements of 
     clause (i).
       ``(iii) Rural areas.--

       ``(I) In general.--Except as provided in subclause (II), 
     the non-Federal share of the cost of the activity carried out 
     using an award or under a cooperative agreement under this 
     subsection shall be 35 cents for each Federal dollar that 
     will be directly allocated by a recipient described in clause 
     (i) to serve small business concerns located in a rural area.
       ``(II) Enhanced rural awards.--For a recipient located in a 
     rural area that is located in a State described in clause 
     (i)(I), the non-Federal share of the cost of the activity 
     carried out using an award or under a cooperative agreement 
     under this subsection shall be 15 cents for each Federal 
     dollar that will be directly allocated by a recipient 
     described in clause (i) to serve small business concerns 
     located in the rural area.
       ``(III) Definition of rural area.--In this clause, the term 
     `rural area' has the meaning given that term in section 
     1393(a)(2) of the Internal Revenue Code of 1986.

       ``(iv) Types of funding.--The non-Federal share of the cost 
     of an activity carried out by a recipient shall be comprised 
     of not less than 50 percent cash and not more than 50 percent 
     of indirect costs and in-kind contributions, except that no 
     such costs or contributions may be derived from funds from 
     any other Federal program.
       ``(v) Rankings.--For the first full fiscal year after the 
     date of enactment of the SBIR/STTR Reauthorization Act of 
     2010, and each fiscal year thereafter, based on the 
     statistics for the most recent full fiscal year for which the 
     Administrator has compiled statistics, the Administrator 
     shall reevaluate the ranking of each State for purposes of 
     clause (i).
       ``(C) Duration.--Awards may be made or cooperative 
     agreements entered into under this subsection for multiple 
     years, not to exceed 5 years in total.
       ``(6) Annual reports.--The Administrator shall submit an 
     annual report to the Committee on Small Business of the 
     Senate and the Committee on Science and the Committee on 
     Small Business of the House of Representatives regarding--
       ``(A) the number and amount of awards provided and 
     cooperative agreements entered into under the FAST program 
     during the preceding year;
       ``(B) a list of recipients under this subsection, including 
     their location and the activities being performed with the 
     awards made or under the cooperative agreements entered into; 
     and
       ``(C) the Mentoring Networks and the mentoring database, as 
     provided for under section 34, including--
       ``(i) the status of the inclusion of mentoring information 
     in the database required by subsection (k); and
       ``(ii) the status of the implementation and description of 
     the usage of the Mentoring Networks.
       ``(7) Program levels.--
       ``(A) In general.--There is authorized to be appropriated 
     to carry out the FAST program, including Mentoring Networks, 
     under this subsection and section 34, $15,000,000 for each of 
     fiscal years 2010 through 2014.
       ``(B) Mentoring database.--Of the total amount made 
     available under subparagraph (A) for fiscal years 2010 
     through 2014, a reasonable amount, not to exceed a total of 
     $500,000, may be used by the Administration to carry out 
     section 34(d).
       ``(8) Termination.--The authority to carry out the FAST 
     program under this subsection shall terminate on September 
     30, 2014.''.
       (b) Technical and Conforming Amendments.--The Small 
     Business Act (15 U.S.C. 631 et seq.) is amended--
       (1) by striking section 34 (15 U.S.C. 657d);
       (2) by redesignating sections 35 through 43 as sections 34 
     through 42, respectively;
       (3) in section 9(k)(1)(D) (15 U.S.C. 638(k)(1)(D)), by 
     striking ``section 35(d)'' and inserting ``section 34(d)'';
       (4) in section 34 (15 U.S.C. 657e), as so redesignated--
       (A) in subsection (c)(1), by striking ``section 
     34(c)(1)(E)(ii)'' and inserting ``section 
     9(s)(3)(A)(v)(II)'';
       (B) by striking ``section 34'' each place it appears and 
     inserting ``section 9(s)''; and
       (C) by adding at the end the following:
       ``(e) Definitions.--In this section, the following 
     definitions apply:
       ``(1) Business advice and counseling.--The term `business 
     advice and counseling' means providing advice and assistance 
     on matters described in subsection (c)(2)(B) to small 
     business concerns to guide them through the SBIR and STTR 
     program process, from application to award and successful 
     completion of each phase of the program.
       ``(2) Fast program.--The term `FAST program' means the 
     Federal and State Technology Partnership Program established 
     under section 9(s).
       ``(3) Mentor.--The term `mentor' means an individual 
     described in subsection (c)(2).
       ``(4) Mentoring network.--The term `Mentoring Network' 
     means an association, organization, coalition, or other 
     entity (including an individual) that meets the requirements 
     of subsection (c).
       ``(5) Recipient.--The term `recipient' means a person that 
     receives an award or becomes party to a cooperative agreement 
     under this section.
       ``(6) Sbir program.--The term `SBIR program' has the same 
     meaning as in section 9(e)(4).
       ``(7) State.--The term `State' means each of the several 
     States, the District of Columbia, the Commonwealth of Puerto 
     Rico, the Virgin Islands, Guam, and American Samoa.
       ``(8) Sttr program.--The term `STTR program' has the same 
     meaning as in section 9(e)(6).'';
       (5) in section 36(d) (15 U.S.C. 657i(d)), as so 
     redesignated, by striking ``section 43'' and inserting 
     ``section 42'';
       (6) in section 39(d) (15 U.S.C. 657l(d)), as so 
     redesignated, by striking ``section 43'' and inserting 
     ``section 42''; and
       (7) in section 40(b) (15 U.S.C. 657m(b)), as so 
     redesignated, by striking ``section 43'' and inserting 
     ``section 42''.

     SEC. 202. SBIR-STEM WORKFORCE DEVELOPMENT GRANT PILOT 
                   PROGRAM.

       (a) Pilot Program Established.--From amounts made available 
     to carry out this section, the Administrator shall establish 
     a SBIR-STEM Workforce Development Grant Pilot Program to 
     encourage the business community to provide workforce 
     development opportunities for college students, in the fields 
     of science, technology, engineering, and math (in this 
     section referred to as ``STEM college students''), 
     particularly those that are socially and economically 
     disadvantaged individuals, from rural areas, or from areas 
     with high unemployment, as determined by the Administrator, 
     by providing a SBIR bonus grant.
       (b) Eligible Entities Defined.--In this section the term 
     ``eligible entity'' means a grantee receiving a grant under 
     the SBIR Program on the date of the bonus grant under 
     subsection (a) that provides an internship program for STEM 
     college students.
       (c) Awards.--An eligible entity shall receive a bonus grant 
     equal to 10 percent of either a Phase I or Phase II grant, as 
     applicable, with a total award maximum of not more than 
     $10,000 per year.
       (d) Evaluation.--Following the fourth year of funding under 
     this section, the Administrator shall submit to Congress as 
     part of the report under section 9(b)(7) of the Small 
     Business Act (15 U.S.C. 638(b)(7)) the results of the SBIR-
     STEM Workforce Development Grant Pilot Program.
       (e) Authorization of Appropriations.--There are authorized 
     to be appropriated to carry out this section--
       (1) $1,000,000 for fiscal year 2011;
       (2) $1,000,000 for fiscal year 2012;
       (3) $1,000,000 for fiscal year 2013;
       (4) $1,000,000 for fiscal year 2014; and
       (5) $1,000,000 for fiscal year 2015.

     SEC. 203. TECHNICAL ASSISTANCE FOR AWARDEES.

       Section 9(q) of the Small Business Act (15 U.S.C. 638(q)) 
     is amended--
       (1) in paragraph (1)--
       (A) by inserting ``or STTR program'' after ``SBIR 
     program''; and
       (B) by striking ``SBIR projects'' and inserting ``SBIR or 
     STTR projects'';
       (2) in paragraph (2), by striking ``3 years'' and inserting 
     ``5 years''; and
       (3) in paragraph (3)--
       (A) in subparagraph (A)--
       (i) by inserting ``or STTR'' after ``SBIR''; and
       (ii) by striking ``$4,000'' and inserting ``$5,000'';
       (B) by striking subparagraph (B) and inserting the 
     following:
       ``(B) Phase ii.--A Federal agency described in paragraph 
     (1) may--
       ``(i) provide to the recipient of a Phase II SBIR or STTR 
     award, through a vendor selected under paragraph (2), the 
     services described in paragraph (1), in an amount equal to 
     not more than $5,000 per year; or
       ``(ii) authorize the recipient of a Phase II SBIR or STTR 
     award to purchase the services described in paragraph (1), in 
     an amount equal to not more than $5,000 per year, which shall 
     be in addition to the amount of the recipient's award.''; and
       (C) by adding at the end the following:
       ``(C) Flexibility.--In carrying out subparagraphs (A) and 
     (B), each Federal agency shall provide the allowable amounts 
     to a recipient that meets the eligibility requirements under 
     the applicable subparagraph, if the recipient requests to 
     seek technical assistance from an individual or entity other 
     than the vendor selected under paragraph (2) by the Federal 
     agency.

[[Page 23496]]

       ``(D) Limitation.--A Federal agency may not--
       ``(i) use the amounts authorized under subparagraph (A) or 
     (B) unless the vendor selected under paragraph (2) provides 
     the technical assistance to the recipient; or
       ``(ii) enter a contract with a vendor under paragraph (2) 
     under which the amount provided for technical assistance is 
     based on total number of Phase I or Phase II awards.''.

     SEC. 204. COMMERCIALIZATION READINESS PROGRAM AT DEPARTMENT 
                   OF DEFENSE.

       (a) In General.--Section 9(y) of the Small Business Act (15 
     U.S.C. 638(y)) is amended--
       (1) in the subsection heading, by striking ``Pilot'' and 
     inserting ``Readiness'';
       (2) by striking ``Pilot'' each place that term appears and 
     inserting ``Readiness'';
       (3) in paragraph (1)--
       (A) by inserting ``or Small Business Technology Transfer 
     Program'' after ``Small Business Innovation Research 
     Program''; and
       (B) by adding at the end the following: ``The authority to 
     create and administer a Commercialization Readiness Program 
     under this subsection may not be construed to eliminate or 
     replace any other SBIR program or STTR program that enhances 
     the insertion or transition of SBIR or STTR technologies, 
     including any such program in effect on the date of enactment 
     of the National Defense Authorization Act for Fiscal Year 
     2006 (Public Law 109-163; 119 Stat. 3136).'';
       (4) in paragraph (2), by inserting ``or Small Business 
     Technology Transfer Program'' after ``Small Business 
     Innovation Research Program'';
       (5) by striking paragraphs (5) and (6); and
       (6) by inserting after paragraph (4) the following:
       ``(5) Insertion incentives.--For any contract with a value 
     of not less than $100,000,000, the Secretary of Defense is 
     authorized to--
       ``(A) establish goals for the transition of Phase III 
     technologies in subcontracting plans; and
       ``(B) require a prime contractor on such a contract to 
     report the number and dollar amount of contracts entered into 
     by that prime contractor for Phase III SBIR or STTR projects.
       ``(6) Goal for sbir and sttr technology insertion.--The 
     Secretary of Defense shall--
       ``(A) set a goal to increase the number of Phase II SBIR 
     contracts and the number of Phase II STTR contracts awarded 
     by that Secretary that lead to technology transition into 
     programs of record or fielded systems;
       ``(B) use incentives in effect on the date of enactment of 
     the SBIR/STTR Reauthorization Act of 2010, or create new 
     incentives, to encourage agency program managers and prime 
     contractors to meet the goal under subparagraph (A); and
       ``(C) include in the annual report to Congress the 
     percentage of contracts described in subparagraph (A) awarded 
     by that Secretary, and information on the ongoing status of 
     projects funded through the Commercialization Readiness 
     Program and efforts to transition these technologies into 
     programs of record or fielded systems.''.
       (b) Technical and Conforming Amendment.--Section 9(i)(1) of 
     the Small Business Act (15 U.S.C. 638(i)(1)) is amended by 
     inserting ``(including awards under subsection (y))'' after 
     ``the number of awards''.

     SEC. 205. COMMERCIALIZATION READINESS PILOT PROGRAM FOR 
                   CIVILIAN AGENCIES.

       Section 9 of the Small Business Act (15 U.S.C. 638), as 
     amended by this Act, is amended by adding at the end the 
     following:
       ``(ff) Pilot Program.--
       ``(1) Authorization.--The head of each covered Federal 
     agency may allocate not more than 10 percent of the funds 
     allocated to the SBIR program and the STTR program of the 
     covered Federal agency--
       ``(A) for awards for technology development, testing, and 
     evaluation of SBIR and STTR Phase II technologies; or
       ``(B) to support the progress of research or research and 
     development conducted under the SBIR or STTR programs to 
     Phase III.
       ``(2) Application by federal agency.--
       ``(A) In general.--A covered Federal agency may not 
     establish a pilot program unless the covered Federal agency 
     makes a written application to the Administrator, not later 
     than 90 days before to the first day of the fiscal year in 
     which the pilot program is to be established, that describes 
     a compelling reason that additional investment in SBIR or 
     STTR technologies is necessary, including unusually high 
     regulatory, systems integration, or other costs relating to 
     development or manufacturing of identifiable, highly 
     promising small business technologies or a class of such 
     technologies expected to substantially advance the mission of 
     the agency.
       ``(B) Determination.--The Administrator shall--
       ``(i) make a determination regarding an application 
     submitted under subparagraph (A) not later than 30 days 
     before the first day of the fiscal year for which the 
     application is submitted;
       ``(ii) publish the determination in the Federal Register; 
     and
       ``(iii) make a copy of the determination and any related 
     materials available to the Committee on Small Business and 
     Entrepreneurship of the Senate and the Committee on Small 
     Business of the House of Representatives.
       ``(3) Maximum amount of award.--The head of a covered 
     Federal agency may not make an award under a pilot program in 
     excess of 3 times the dollar amounts generally established 
     for Phase II awards under subsection (j)(2)(D) or 
     (p)(2)(B)(ix).
       ``(4) Registration.--Any applicant that receives an award 
     under a pilot program shall register with the Administrator 
     in a registry that is available to the public.
       ``(5) Report.--The head of each covered Federal agency 
     shall include in the annual report of the covered Federal 
     agency to the Administrator an analysis of the various 
     activities considered for inclusion in the pilot program of 
     the covered Federal agency and a statement of the reasons why 
     each activity considered was included or not included, as the 
     case may be.
       ``(6) Termination.--The authority to establish a pilot 
     program under this section expires at the end of fiscal year 
     2014.
       ``(7) Definitions.--In this subsection--
       ``(A) the term `covered Federal agency'--
       ``(i) means a Federal agency participating in the SBIR 
     program or the STTR program; and
       ``(ii) does not include the Department of Defense; and
       ``(B) the term `pilot program' means the program 
     established under paragraph (1).''.

     SEC. 206. ACCELERATING CURES.

       (a) In General.--The Small Business Act (15 U.S.C. 631 et 
     seq.) is amended by inserting after section 42, as 
     redesignated by section 201 of this Act, the following:

     ``SEC. 43. SMALL BUSINESS INNOVATION RESEARCH PROGRAM.

       ``(a) NIH Cures Pilot.--
       ``(1) Establishment.--An independent advisory board shall 
     be established at the National Academy of Sciences (in this 
     section referred to as the `advisory board') to conduct 
     periodic evaluations of the SBIR program (as that term is 
     defined in section 9) of each of the National Institutes of 
     Health (referred to in this section as the `NIH') institutes 
     and centers for the purpose of improving the management of 
     the SBIR program through data-driven assessment.
       ``(2) Membership.--
       ``(A) In general.--The advisory board shall consist of--
       ``(i) the Director of the NIH;
       ``(ii) the Director of the SBIR program of the NIH;
       ``(iii) senior NIH agency managers, selected by the 
     Director of NIH;
       ``(iv) industry experts, selected by the Council of the 
     National Academy of Sciences in consultation with the 
     Associate Administrator for Technology of the Administration 
     and the Director of the Office of Science and Technology 
     Policy; and
       ``(v) owners or operators of small business concerns that 
     have received an award under the SBIR program of the NIH, 
     selected by the Associate Administrator for Technology of the 
     Administration.
       ``(B) Number of members.--The total number of members 
     selected under clauses (iii), (iv), and (v) of subparagraph 
     (A) shall not exceed 10.
       ``(C) Equal representation.--The total number of members of 
     the advisory board selected under clauses (i), (ii), (iii), 
     and (iv) of subparagraph (A) shall be equal to the number of 
     members of the advisory board selected under subparagraph 
     (A)(v).
       ``(b) Addressing Data Gaps.--In order to enhance the 
     evidence-base guiding SBIR program decisions and changes, the 
     Director of the SBIR program of the NIH shall address the 
     gaps and deficiencies in the data collection concerns 
     identified in the 2007 report of the National Academies of 
     Science entitled `An Assessment of the Small Business 
     Innovation Research Program at the NIH'.
       ``(c) Pilot Program.--
       ``(1) In general.--The Director of the SBIR program of the 
     NIH may initiate a pilot program, under a formal mechanism 
     for designing, implementing, and evaluating pilot programs, 
     to spur innovation and to test new strategies that may 
     enhance the development of cures and therapies.
       ``(2) Considerations.--The Director of the SBIR program of 
     the NIH may consider conducting a pilot program to include 
     individuals with successful SBIR program experience in study 
     sections, hiring individuals with small business development 
     experience for staff positions, separating the commercial and 
     scientific review processes, and examining the impact of the 
     trend toward larger awards on the overall program.
       ``(d) Report to Congress.--The Director of the NIH shall 
     submit an annual report to Congress and the advisory board on 
     the activities of the SBIR program of the NIH under this 
     section.
       ``(e) SBIR Grants and Contracts.--
       ``(1) In general.--In awarding grants and contracts under 
     the SBIR program of the NIH each SBIR program manager shall 
     emphasize applications that identify products, processes, 
     technologies, and services that may enhance the development 
     of cures and therapies.

[[Page 23497]]

       ``(2) Examination of commercialization and other metrics.--
     The advisory board shall evaluate the implementation of the 
     requirement under paragraph (1) by examining increased 
     commercialization and other metrics, to be determined and 
     collected by the SBIR program of the NIH.
       ``(3) Phase i and ii.--To the greatest extent practicable, 
     the Director of the SBIR program of the NIH shall reduce the 
     time period between Phase I and Phase II funding of grants 
     and contracts under the SBIR program of the NIH to 90 days.
       ``(f) Limit.--Not more than a total of 1 percent of the 
     extramural budget (as defined in section 9 of the Small 
     Business Act (15 U.S.C. 638)) of the NIH for research or 
     research and development may be used for the pilot program 
     under subsection (c) and to carry out subsection (e).''.
       (b) Prospective Repeal.--Effective 5 years after the date 
     of enactment of this Act, the Small Business Act (15 U.S.C. 
     631 et seq.) is amended--
       (1) by striking section 43, as added by subsection (a); and
       (2) by redesignating sections 44 and 45 as sections 43 and 
     44, respectively.

     SEC. 207. FEDERAL AGENCY ENGAGEMENT WITH SBIR AND STTR 
                   AWARDEES THAT HAVE BEEN AWARDED MULTIPLE PHASE 
                   I AWARDS BUT HAVE NOT BEEN AWARDED PHASE II 
                   AWARDS.

       Section 9 of the Small Business Act (15 U.S.C. 638), as 
     amended by this Act, is amended by adding at the end the 
     following:
       ``(gg) Requirements Relating to Federal Agency Engagement 
     With Certain Phase I SBIR and STTR Awardees.--
       ``(1) Definition.--In this subsection, the term `covered 
     awardee' means a small business concern that--
       ``(A) has received multiple Phase I awards over multiple 
     years, as determined by the head of a Federal agency, under 
     the SBIR program or the STTR program of the Federal agency; 
     and
       ``(B) has not received a Phase II award--
       ``(i) under the SBIR program or STTR program, as the case 
     may be, of the Federal agency described in subparagraph (A); 
     or
       ``(ii) relating to a Phase I award described in 
     subparagraph (A) under the SBIR program or the STTR program 
     of another Federal agency.
       ``(2) Performance measures.--The head of each Federal 
     agency that participates in the SBIR program or the STTR 
     program shall develop performance measures for any covered 
     awardee relating to commercializing research or research and 
     development activities under the SBIR program or the STTR 
     program of the Federal agency.''.

     SEC. 208. CLARIFYING THE DEFINITION OF ``PHASE III''.

       (a) Phase III Awards.--Section 9(e) of the Small Business 
     Act (15 U.S.C. 638(e)) is amended--
       (1) in paragraph (4)(C), in the matter preceding clause 
     (i), by inserting ``for work that derives from, extends, or 
     completes efforts made under prior funding agreements under 
     the SBIR program'' after ``phase'';
       (2) in paragraph (6)(C), in the matter preceding clause 
     (i), by inserting ``for work that derives from, extends, or 
     completes efforts made under prior funding agreements under 
     the STTR program'' after ``phase'';
       (3) in paragraph (8), by striking ``and'' at the end;
       (4) in paragraph (9), by striking the period at the end and 
     inserting a semicolon; and
       (5) by adding at the end the following:
       ``(10) the term `commercialization' means--
       ``(A) the process of developing products, processes, 
     technologies, or services; and
       ``(B) the production and delivery of products, processes, 
     technologies, or services for sale (whether by the 
     originating party or by others) to or use by the Federal 
     Government or commercial markets;''.
       (b) Technical and Conforming Amendments.--The Small 
     Business Act (15 U.S.C. 631 et seq.) is amended--
       (1) in section 9 (15 U.S.C. 638)--
       (A) in subsection (e)--
       (i) in paragraph (4)(C)(ii), by striking ``scientific 
     review criteria'' and inserting ``merit-based selection 
     procedures'';
       (ii) in paragraph (9), by striking ``the second or the 
     third phase'' and inserting ``Phase II or Phase III''; and
       (iii) by adding at the end the following:
       ``(11) the term `Phase I' means--
       ``(A) with respect to the SBIR program, the first phase 
     described in paragraph (4)(A); and
       ``(B) with respect to the STTR program, the first phase 
     described in paragraph (6)(A);
       ``(12) the term `Phase II' means--
       ``(A) with respect to the SBIR program, the second phase 
     described in paragraph (4)(B); and
       ``(B) with respect to the STTR program, the second phase 
     described in paragraph (6)(B); and
       ``(13) the term `Phase III' means--
       ``(A) with respect to the SBIR program, the third phase 
     described in paragraph (4)(C); and
       ``(B) with respect to the STTR program, the third phase 
     described in paragraph (6)(C).'';
       (B) in subsection (j)--
       (i) in paragraph (1)(B), by striking ``phase two'' and 
     inserting ``Phase II'';
       (ii) in paragraph (2)--

       (I) in subparagraph (B)--

       (aa) by striking ``the third phase'' each place it appears 
     and inserting ``Phase III''; and
       (bb) by striking ``the second phase'' and inserting ``Phase 
     II'';

       (II) in subparagraph (D)--

       (aa) by striking ``the first phase'' and inserting ``Phase 
     I''; and
       (bb) by striking ``the second phase'' and inserting ``Phase 
     II'';

       (III) in subparagraph (F), by striking ``the third phase'' 
     and inserting ``Phase III'';
       (IV) in subparagraph (G)--

       (aa) by striking ``the first phase'' and inserting ``Phase 
     I''; and
       (bb) by striking ``the second phase'' and inserting ``Phase 
     II''; and

       (V) in subparagraph (H)--

       (aa) by striking ``the first phase'' and inserting ``Phase 
     I'';
       (bb) by striking ``second phase'' each place it appears and 
     inserting ``Phase II''; and
       (cc) by striking ``third phase'' and inserting ``Phase 
     III''; and
       (iii) in paragraph (3)--

       (I) in subparagraph (A)--

       (aa) by striking ``the first phase (as described in 
     subsection (e)(4)(A))'' and inserting ``Phase I'';
       (bb) by striking ``the second phase (as described in 
     subsection (e)(4)(B))'' and inserting ``Phase II''; and
       (cc) by striking ``the third phase (as described in 
     subsection (e)(4)(C))'' and inserting ``Phase III''; and

       (II) in subparagraph (B), by striking ``second phase'' and 
     inserting ``Phase II'';

       (C) in subsection (k)--
       (i) by striking ``first phase'' each place it appears and 
     inserting ``Phase I''; and
       (ii) by striking ``second phase'' each place it appears and 
     inserting ``Phase II'';
       (D) in subsection (l)(2)--
       (i) by striking ``the first phase'' and inserting ``Phase 
     I''; and
       (ii) by striking ``the second phase'' and inserting ``Phase 
     II'';
       (E) in subsection (o)(13)--
       (i) in subparagraph (B), by striking ``second phase'' and 
     inserting ``Phase II''; and
       (ii) in subparagraph (C), by striking ``third phase'' and 
     inserting ``Phase III'';
       (F) in subsection (p)--
       (i) in paragraph (2)(B)--

       (I) in clause (vi)--

       (aa) by striking ``the second phase'' and inserting ``Phase 
     II''; and
       (bb) by striking ``the third phase'' and inserting ``Phase 
     III''; and

       (II) in clause (ix)--

       (aa) by striking ``the first phase'' and inserting ``Phase 
     I''; and
       (bb) by striking ``the second phase'' and inserting ``Phase 
     II''; and
       (ii) in paragraph (3)--

       (I) by striking ``the first phase (as described in 
     subsection (e)(6)(A))'' and inserting ``Phase I'';
       (II) by striking ``the second phase (as described in 
     subsection (e)(6)(B))'' and inserting ``Phase II''; and
       (III) by striking ``the third phase (as described in 
     subsection (e)(6)(A))'' and inserting ``Phase III'';

       (G) in subsection (q)(3)--
       (i) in subparagraph (A)--

       (I) in the subparagraph heading, by striking ``First 
     phase'' and inserting ``Phase i''; and
       (II) by striking ``first phase'' and inserting ``Phase I''; 
     and

       (ii) in subparagraph (B)--

       (I) in the subparagraph heading, by striking ``Second 
     phase'' and inserting ``Phase ii''; and
       (II) by striking ``second phase'' and inserting ``Phase 
     II'';

       (H) in subsection (r)--
       (i) in the subsection heading, by striking ``Third Phase'' 
     and inserting ``Phase III'';
       (ii) in paragraph (1)--

       (I) in the first sentence--

       (aa) by striking ``for the second phase'' and inserting 
     ``for Phase II'';
       (bb) by striking ``third phase'' and inserting ``Phase 
     III''; and
       (cc) by striking ``second phase period'' and inserting 
     ``Phase II period''; and

       (II) in the second sentence--

       (aa) by striking ``second phase'' and inserting ``Phase 
     II''; and
       (bb) by striking ``third phase'' and inserting ``Phase 
     III''; and
       (iii) in paragraph (2), by striking ``third phase'' and 
     inserting ``Phase III''; and
       (I) in subsection (u)(2)(B), by striking ``the first 
     phase'' and inserting ``Phase I''; and
       (2) in section 34(c)(2)(B)(vii) (15 U.S.C. 
     657e(c)(2)(B)(vii)), as redesignated by section 201 of this 
     Act, by striking ``third phase'' and inserting ``Phase III''.

     SEC. 209. SHORTENED PERIOD FOR FINAL DECISIONS ON PROPOSALS 
                   AND APPLICATIONS.

       (a) In General.--Section 9 of the Small Business Act (15 
     U.S.C. 638) is amended--
       (1) in subsection (g)(4)--
       (A) by inserting ``(A)'' after ``(4)'';
       (B) by adding ``and'' after the semicolon at the end; and
       (C) by adding at the end the following:
       ``(B) make a final decision on each proposal submitted 
     under the SBIR program--
       ``(i) not later than 90 days after the date on which the 
     solicitation closes; or
       ``(ii) if the Administrator authorizes an extension for a 
     solicitation, not later than 180

[[Page 23498]]

     days after the date on which the solicitation closes;''; and
       (2) in subsection (o)(4)--
       (A) by inserting ``(A)'' after ``(4)'';
       (B) by adding ``and'' after the semicolon at the end; and
       (C) by adding at the end the following:
       ``(B) make a final decision on each proposal submitted 
     under the STTR program--
       ``(i) not later than 90 days after the date on which the 
     solicitation closes; or
       ``(ii) if the Administrator authorizes an extension for a 
     solicitation, not later than 180 days after the date on which 
     the solicitation closes;''.
       (b) NIH Peer Review Process.--
       (1) In general.--Section 9 of the Small Business Act (15 
     U.S.C. 638), as amended by this Act, is amended by adding at 
     the end the following:
       ``(hh) NIH Peer Review Process.--The Director of the 
     National Institutes of Health may make an award under the 
     SBIR program or the STTR program of the National Institutes 
     of Health if the application for the award has undergone 
     technical and scientific peer review under section 492 of the 
     Public Health Service Act (42 U.S.C. 289a).''.
       (2) Technical and conforming amendments.--Section 105 of 
     the National Institutes of Health Reform Act of 2006 (42 
     U.S.C. 284n) is amended--
       (A) in subsection (a)(3)--
       (i) by striking ``A grant'' and inserting ``Except as 
     provided in section 9(hh) of the Small Business Act (15 
     U.S.C. 638(hh)), a grant''; and
       (ii) by striking ``section 402(k)'' and all that follows 
     through ``Act)'' and inserting ``section 402(l) of such 
     Act''; and
       (B) in subsection (b)(5)--
       (i) by striking ``A grant'' and inserting ``Except as 
     provided in section 9(hh) of the Small Business Act (15 
     U.S.C. 638(hh)), a grant''; and
       (ii) by striking ``section 402(k)'' and all that follows 
     through ``Act)'' and inserting ``section 402(l) of such 
     Act''.

                  TITLE III--OVERSIGHT AND EVALUATION

     SEC. 301. STREAMLINING ANNUAL EVALUATION REQUIREMENTS.

       Section 9(b) of the Small Business Act (15 U.S.C. 638(b)), 
     as amended by section 102 of this Act, is amended--
       (1) in paragraph (7)--
       (A) by striking ``STTR programs, including the data'' and 
     inserting the following: ``STTR programs, including--
       ``(A) the data'';
       (B) by striking ``(g)(10), (o)(9), and (o)(15), the 
     number'' and all that follows through ``under each of the 
     SBIR and STTR programs, and a description'' and inserting the 
     following: ``(g)(8) and (o)(9); and
       ``(B) the number of proposals received from, and the number 
     and total amount of awards to, HUBZone small business 
     concerns and firms with venture capital investment (including 
     those majority-owned and controlled by multiple venture 
     capital operating companies) under each of the SBIR and STTR 
     programs;
       ``(C) a description of the extent to which each Federal 
     agency is increasing outreach and awards to firms owned and 
     controlled by women and social or economically disadvantaged 
     individuals under each of the SBIR and STTR programs;
       ``(D) general information about the implementation of, and 
     compliance with the allocation of funds required under, 
     subsection (cc) for firms owned in majority part by venture 
     capital operating companies and participating in the SBIR 
     program;
       ``(E) a detailed description of appeals of Phase III awards 
     and notices of noncompliance with the SBIR Policy Directive 
     and the STTR Policy Directive filed by the Administrator with 
     Federal agencies; and
       ``(F) a description''; and
       (2) by inserting after paragraph (7) the following:
       ``(8) to coordinate the implementation of electronic 
     databases at each of the Federal agencies participating in 
     the SBIR program or the STTR program, including the technical 
     ability of the participating agencies to electronically share 
     data;''.

     SEC. 302. DATA COLLECTION FROM AGENCIES FOR SBIR.

       Section 9(g) of the Small Business Act (15 U.S.C. 638(g)) 
     is amended--
       (1) by striking paragraph (10);
       (2) by redesignating paragraphs (8) and (9) as paragraphs 
     (9) and (10), respectively; and
       (3) by inserting after paragraph (7) the following:
       ``(8) collect annually, and maintain in a common format in 
     accordance with the simplified reporting requirements under 
     subsection (v), such information from awardees as is 
     necessary to assess the SBIR program, including information 
     necessary to maintain the database described in subsection 
     (k), including--
       ``(A) whether an awardee--
       ``(i) has venture capital or is majority-owned and 
     controlled by multiple venture capital operating companies, 
     and, if so--

       ``(I) the amount of venture capital that the awardee has 
     received as of the date of the award; and
       ``(II) the amount of additional capital that the awardee 
     has invested in the SBIR technology;

       ``(ii) has an investor that--

       ``(I) is an individual who is not a citizen of the United 
     States or a lawful permanent resident of the United States, 
     and if so, the name of any such individual; or
       ``(II) is a person that is not an individual and is not 
     organized under the laws of a State or the United States, and 
     if so the name of any such person;

       ``(iii) is owned by a woman or has a woman as a principal 
     investigator;
       ``(iv) is owned by a socially or economically disadvantaged 
     individual or has a socially or economically disadvantaged 
     individual as a principal investigator;
       ``(v) received assistance under the FAST program under 
     section 34, as in effect on the day before the date of 
     enactment of the SBIR/STTR Reauthorization Act of 2010, or 
     the outreach program under subsection (s);
       ``(vi) is a faculty member or a student of an institution 
     of higher education, as that term is defined in section 101 
     of the Higher Education Act of 1965 (20 U.S.C. 1001); or
       ``(vii) is located in a State described in subsection 
     (u)(3); and
       ``(B) a justification statement from the agency, if an 
     awardee receives an award in an amount that is more than the 
     award guidelines under this section;''.

     SEC. 303. DATA COLLECTION FROM AGENCIES FOR STTR.

       Section 9(o) of the Small Business Act (15 U.S.C. 638(o)) 
     is amended by striking paragraph (9) and inserting the 
     following:
       ``(9) collect annually, and maintain in a common format in 
     accordance with the simplified reporting requirements under 
     subsection (v), such information from applicants and awardees 
     as is necessary to assess the STTR program outputs and 
     outcomes, including information necessary to maintain the 
     database described in subsection (k), including--
       ``(A) whether an applicant or awardee--
       ``(i) has venture capital or is majority-owned and 
     controlled by multiple venture capital operating companies, 
     and, if so--

       ``(I) the amount of venture capital that the applicant or 
     awardee has received as of the date of the application or 
     award, as applicable; and
       ``(II) the amount of additional capital that the applicant 
     or awardee has invested in the SBIR technology;

       ``(ii) has an investor that--

       ``(I) is an individual who is not a citizen of the United 
     States or a lawful permanent resident of the United States, 
     and if so, the name of any such individual; or
       ``(II) is a person that is not an individual and is not 
     organized under the laws of a State or the United States, and 
     if so the name of any such person;

       ``(iii) is owned by a woman or has a woman as a principal 
     investigator;
       ``(iv) is owned by a socially or economically disadvantaged 
     individual or has a socially or economically disadvantaged 
     individual as a principal investigator;
       ``(v) received assistance under the FAST program under 
     section 34 or the outreach program under subsection (s);
       ``(vi) is a faculty member or a student of an institution 
     of higher education, as that term is defined in section 101 
     of the Higher Education Act of 1965 (20 U.S.C. 1001); or
       ``(vii) is located in a State in which the total value of 
     contracts awarded to small business concerns under all STTR 
     programs is less than the total value of contracts awarded to 
     small business concerns in a majority of other States, as 
     determined by the Administrator in biennial fiscal years, 
     beginning with fiscal year 2008, based on the most recent 
     statistics compiled by the Administrator; and
       ``(B) if an awardee receives an award in an amount that is 
     more than the award guidelines under this section, a 
     statement from the agency that justifies the award amount;''.

     SEC. 304. PUBLIC DATABASE.

       Section 9(k)(1) of the Small Business Act (15 U.S.C. 
     638(k)(1)) is amended--
       (1) in subparagraph (D), by striking ``and'' at the end;
       (2) in subparagraph (E), by striking the period at the end 
     and inserting ``; and''; and
       (3) by adding at the end the following:
       ``(F) for each small business concern that has received a 
     Phase I or Phase II SBIR or STTR award from a Federal agency, 
     whether the small business concern--
       ``(i) has venture capital and, if so, whether the small 
     business concern is registered as majority-owned and 
     controlled by multiple venture capital operating companies as 
     required under subsection (cc)(4);
       ``(ii) is owned by a woman or has a woman as a principal 
     investigator;
       ``(iii) is owned by a socially or economically 
     disadvantaged individual or has a socially or economically 
     disadvantaged individual as a principal investigator;
       ``(iv) received assistance under the FAST program under 
     section 34, as in effect on the day before the date of 
     enactment of the SBIR/STTR Reauthorization Act of 2010, or 
     the outreach program under subsection (s); or
       ``(v) is owned by a faculty member or a student of an 
     institution of higher education, as that term is defined in 
     section 101 of the Higher Education Act of 1965 (20 U.S.C. 
     1001).''.

[[Page 23499]]



     SEC. 305. GOVERNMENT DATABASE.

       Section 9(k) of the Small Business Act (15 U.S.C. 638(k)) 
     is amended--
       (1) in paragraph (2)--
       (A) in the matter preceding subparagraph (A), by striking 
     ``Not later'' and all that follows through ``Act of 2000'' 
     and inserting ``Not later than 90 days after the date of 
     enactment of the SBIR/STTR Reauthorization Act of 2010'';
       (B) by striking subparagraph (C);
       (C) by redesignating subparagraphs (A) and (B) as 
     subparagraphs (B) and (C), respectively;
       (D) by inserting before subparagraph (B), as so 
     redesignated, the following:
       ``(A) contains, for each small business concern that 
     applies for, submits a proposal for, or receives an award 
     under Phase I or Phase II of the SBIR program or the STTR 
     program--
       ``(i) the name, size, and location, and an identifying 
     number assigned by the Administration of the small business 
     concern;
       ``(ii) an abstract of the project;
       ``(iii) the specific aims of the project;
       ``(iv) the number of employees of the small business 
     concern;
       ``(v) the names of key individuals that will carry out the 
     project;
       ``(vi) the percentage of effort each individual described 
     in clause (iv) will contribute to the project;
       ``(vii) whether the small business concern is majority-
     owned and controlled by multiple venture capital operating 
     companies; and
       ``(viii) the Federal agency to which the application is 
     made, and contact information for the person or office within 
     the Federal agency that is responsible for reviewing 
     applications and making awards under the SBIR program or the 
     STTR program;'';
       (E) by redesignating subparagraphs (D), and (E) as 
     subparagraphs (E) and (F), respectively;
       (F) by inserting after subparagraph (C), as so 
     redesignated, the following:
       ``(D) includes, for each awardee--
       ``(i) the name, size, location, and any identifying number 
     assigned to the awardee by the Administrator;
       ``(ii) whether the awardee has venture capital, and, if 
     so--

       ``(I) the amount of venture capital as of the date of the 
     award;
       ``(II) the percentage of ownership of the awardee held by a 
     venture capital operating company, including whether the 
     awardee is majority-owned and controlled by multiple venture 
     capital operating companies; and
       ``(III) the amount of additional capital that the awardee 
     has invested in the SBIR technology, which information shall 
     be collected on an annual basis;

       ``(iii) the names and locations of any affiliates of the 
     awardee;
       ``(iv) the number of employees of the awardee;
       ``(v) the number of employees of the affiliates of the 
     awardee; and
       ``(vi) the names of, and the percentage of ownership of the 
     awardee held by--

       ``(I) any individual who is not a citizen of the United 
     States or a lawful permanent resident of the United States; 
     or
       ``(II) any person that is not an individual and is not 
     organized under the laws of a State or the United States;'';

       (G) in subparagraph (E), as so redesignated, by striking 
     ``and'' at the end;
       (H) in subparagraph (F), as so redesignated, by striking 
     the period at the end and inserting ``; and''; and
       (I) by adding at the end the following:
       ``(G) includes a timely and accurate list of any individual 
     or small business concern that has participated in the SBIR 
     program or STTR program that has committed fraud, waste, or 
     abuse relating to the SBIR program or STTR program.''; and
       (2) in paragraph (3), by adding at the end the following:
       ``(C) Government database.--Not later than 60 days after 
     the date established by a Federal agency for submitting 
     applications or proposals for a Phase I or Phase II award 
     under the SBIR program or STTR program, the head of the 
     Federal agency shall submit to the Administrator the data 
     required under paragraph (2) with respect to each small 
     business concern that applies or submits a proposal for the 
     Phase I or Phase II award.''.

     SEC. 306. ACCURACY IN FUNDING BASE CALCULATIONS.

       (a) In General.--Not later than 1 year after the date of 
     enactment of this Act, and every year thereafter until the 
     date that is 4 years after the date of enactment of this Act, 
     the Comptroller General of the United States shall--
       (1) conduct a fiscal and management audit of the SBIR 
     program and the STTR program for the applicable period to--
       (A) determine whether Federal agencies comply with the 
     expenditure amount requirements under subsections (f)(1) and 
     (n)(1) of section 9 of the Small Business Act (15 U.S.C. 
     638), as amended by this Act;
       (B) assess the extent of compliance with the requirements 
     of section 9(i)(2) of the Small Business Act (15 U.S.C. 
     638(i)(2)) by Federal agencies participating in the SBIR 
     program or the STTR program and the Administration;
       (C) assess whether it would be more consistent and 
     effective to base the amount of the allocations under the 
     SBIR program and the STTR program on a percentage of the 
     research and development budget of a Federal agency, rather 
     than the extramural budget of the Federal agency; and
       (D) determine the portion of the extramural research or 
     research and development budget of a Federal agency that each 
     Federal agency spends for administrative purposes relating to 
     the SBIR program or STTR program, and for what specific 
     purposes, including the portion, if any, of such budget the 
     Federal agency spends for salaries and expenses, travel to 
     visit applicants, outreach events, marketing, and technical 
     assistance; and
       (2) submit a report to the Committee on Small Business and 
     Entrepreneurship of the Senate and the Committee on Small 
     Business of the House of Representatives regarding the audit 
     conducted under paragraph (1), including the assessments 
     required under subparagraphs (B) and (C), and the 
     determination made under subparagraph (D) of paragraph (1).
       (b) Definition of Applicable Period.--In this section, the 
     term ``applicable period'' means--
       (1) for the first report submitted under this section, the 
     period beginning on October 1, 2004, and ending on September 
     30 of the last full fiscal year before the date of enactment 
     of this Act for which information is available; and
       (2) for the second and each subsequent report submitted 
     under this section, the period--
       (A) beginning on October 1 of the first fiscal year after 
     the end of the most recent full fiscal year relating to which 
     a report under this section was submitted; and
       (B) ending on September 30 of the last full fiscal year 
     before the date of the report.

     SEC. 307. CONTINUED EVALUATION BY THE NATIONAL ACADEMY OF 
                   SCIENCES.

       Section 108 of the Small Business Reauthorization Act of 
     2000 (15 U.S.C. 638 note) is amended by adding at the end the 
     following:
       ``(e) Extensions and Enhancements of Authority.--
       ``(1) In general.--Not later than 6 months after the date 
     of enactment of the SBIR/STTR Reauthorization Act of 2010, 
     the head of each agency described in subsection (a), in 
     consultation with the Small Business Administration, shall 
     cooperatively enter into an agreement with the National 
     Academy of Sciences for the National Research Council to, not 
     later than 4 years after the date of enactment of the SBIR/
     STTR Reauthorization Act of 2010, and every 4 years 
     thereafter--
       ``(A) continue the most recent study under this section 
     relating to--
       ``(i) the issues described in subparagraphs (A), (B), (C), 
     and (E) of subsection (a)(1); and
       ``(ii) the effectiveness of the government and public 
     databases described in section 9(k) of the Small Business Act 
     (15 U.S.C. 638(k)) in reducing vulnerabilities of the SBIR 
     program and the STTR program to fraud, waste, and abuse, 
     particularly with respect to Federal agencies funding 
     duplicative proposals and business concerns falsifying 
     information in proposals;
       ``(B) make recommendations with respect to the issues 
     described in subparagraph (A)(ii) and subparagraphs (A), (D), 
     and (E) of subsection (a)(2).
       ``(2) Consultation.--An agreement under paragraph (1) shall 
     require the National Research Council to ensure there is 
     participation by and consultation with the small business 
     community, the Administration, and other interested parties 
     as described in subsection (b).
       ``(3) Reporting.--An agreement under paragraph (1) shall 
     require that not later than 4 years after the date of 
     enactment of the SBIR/STTR Reauthorization Act of 2010, and 
     every 4 years thereafter, the National Research Council shall 
     submit to the head of the agency entering into the agreement, 
     the Committee on Small Business and Entrepreneurship of the 
     Senate, and the Committee on Small Business of the House of 
     Representatives a report regarding the study conducted under 
     paragraph (1) and containing the recommendations described in 
     paragraph (1).''.

     SEC. 308. TECHNOLOGY INSERTION REPORTING REQUIREMENTS.

       Section 9 of the Small Business Act (15 U.S.C. 638), as 
     amended by this Act, is amended by adding at the end the 
     following:
       ``(ii) Phase III Reporting.--The annual SBIR or STTR report 
     to Congress by the Administration under subsection (b)(7) 
     shall include, for each Phase III award made by the Federal 
     agency--
       ``(1) the name of the agency or component of the agency or 
     the non-Federal source of capital making the Phase III award;
       ``(2) the name of the small business concern or individual 
     receiving the Phase III award; and
       ``(3) the dollar amount of the Phase III award.''.

     SEC. 309. INTELLECTUAL PROPERTY PROTECTIONS.

       (a) In General.--The Comptroller General of the United 
     States shall conduct a study of the SBIR program to assess 
     whether--
       (1) Federal agencies comply with the data rights 
     protections for SBIR awardees and the

[[Page 23500]]

     technologies of SBIR awardees under section 9 of the Small 
     Business Act (15 U.S.C. 638);
       (2) the laws and policy directives intended to clarify the 
     scope of data rights, including in prototypes and mentor-
     protege relationships and agreements with Federal 
     laboratories, are sufficient to protect SBIR awardees; and
       (3) there is an effective grievance tracking process for 
     SBIR awardees who have grievances against a Federal agency 
     regarding data rights and a process for resolving those 
     grievances.
       (b) Report.--Not later than 18 months after the date of 
     enactment of this Act, the Comptroller General shall submit 
     to the Committee on Small Business and Entrepreneurship of 
     the Senate and the Committee on Small Business of the House 
     of Representatives a report regarding the study conducted 
     under subsection (a).

     SEC. 310. OBTAINING CONSENT FROM SBIR AND STTR APPLICANTS TO 
                   RELEASE CONTACT INFORMATION TO ECONOMIC 
                   DEVELOPMENT ORGANIZATIONS.

       Section 9 of the Small Business Act (15 U.S.C. 638), as 
     amended by this Act, is amended by adding at the end the 
     following:
       ``(jj) Consent to Release Contact Information to 
     Organizations.--
       ``(1) Enabling concern to give consent.--Each Federal 
     agency required by this section to conduct an SBIR program or 
     an STTR program shall enable a small business concern that is 
     an SBIR applicant or an STTR applicant to indicate to the 
     Federal agency whether the Federal agency has the consent of 
     the concern to--
       ``(A) identify the concern to appropriate local and State-
     level economic development organizations as an SBIR applicant 
     or an STTR applicant; and
       ``(B) release the contact information of the concern to 
     such organizations.
       ``(2) Rules.--The Administrator shall establish rules to 
     implement this subsection. The rules shall include a 
     requirement that a Federal agency include in the SBIR and 
     STTR application a provision through which the applicant can 
     indicate consent for purposes of paragraph (1).''.

     SEC. 311. PILOT TO ALLOW FUNDING FOR ADMINISTRATIVE, 
                   OVERSIGHT, AND CONTRACT PROCESSING COSTS.

       (a) In General.--Section 9 of the Small Business Act (15 
     U.S.C. 638), as amended by this Act, is amended by adding at 
     the end the following:
       ``(kk) Assistance for Administrative, Oversight, and 
     Contract Processing Costs.--
       ``(1) In general.--Subject to paragraph (3), the 
     Administrator shall allow each Federal agency required to 
     conduct an SBIR program to use not more than 3 percent of the 
     funds allocated to the SBIR program of the Federal agency--
       ``(A) for the first fiscal year beginning after the date of 
     enactment of this subsection, and each fiscal year thereafter 
     through fiscal year 2018, for costs relating to 
     administrative, oversight, and contract processing activities 
     for the SBIR program that the Federal agency was not carrying 
     out during the last full fiscal year before the date of 
     enactment of this subsection, including activities described 
     in paragraph (2); and
       ``(B) for the first 3 fiscal years beginning after the date 
     of enactment of this subsection, for--
       ``(i) administration of the SBIR program or the STTR 
     program;
       ``(ii) implementation of commercialization and outreach 
     initiatives that were not in effect on the date of enactment 
     of this subsection;
       ``(iii) carrying out the program under subsection (y);
       ``(iv) activities relating to oversight and congressional 
     reporting, including the waste, fraud, and abuse prevention 
     activities described in section 313(a)(1)(B)(ii) of the SBIR/
     STTR Reauthorization Act of 2010;
       ``(v) carrying out subsection (cc);
       ``(vi) carrying out subsection (ff);
       ``(vii) contract processing costs relating to the SBIR 
     program; and
       ``(viii) funding for additional personnel and assistance 
     with application reviews.
       ``(2) Activities.--The activities described in this 
     paragraph include--
       ``(A) the administration of the SBIR program or the STTR 
     program of a Federal agency;
       ``(B) the provision of outreach and technical assistance 
     relating to the SBIR program of a Federal agency, including 
     technical assistance site visits and personnel interviews;
       ``(C) contract processing;
       ``(D) the implementation of oversight and quality control 
     measures, including verification of reports and invoices and 
     cost reviews; and
       ``(E) targeted reviews of recipients of awards under the 
     SBIR program that the head of a Federal agency determines are 
     at high risk for fraud, waste, or abuse, to ensure compliance 
     with requirements of the SBIR program.
       ``(3) Performance criteria.--A Federal agency may not use 
     funds as authorized under paragraph (1) until after the 
     effective date of performance criteria, which the 
     Administrator shall establish, to measure any benefits of 
     using funds as authorized under paragraph (1) and to assess 
     continuation of the authority under paragraph (1).
       ``(4) Rules.--Not later than 180 days after the date of 
     enactment of this subsection, the Administrator shall issue 
     rules to carry out this subsection.''.
       (b) Technical and Conforming Amendments.--
       (1) In general.--Section 9 of the Small Business Act (15 
     U.S.C. 638) is amended--
       (A) in subsection (f)(2)(A), as so designated by section 
     103(2) of this Act, by striking ``shall not'' and all that 
     follows through ``make available for the purpose'' and 
     inserting ``shall not make available for the purpose''; and
       (B) in subsection (y), as amended by section 204--
       (i) by striking paragraph (4);
       (ii) by redesignating paragraphs (5) and (6) as paragraphs 
     (4) and (5), respectively.
       (2) Transitional rule.--Notwithstanding the amendments made 
     by paragraph (1), subsection (f)(2)(A) and (y)(4) of section 
     9 of the Small Business Act (15 U.S.C. 638), as in effect on 
     the day before the date of enactment of this Act, shall 
     continue to apply to each Federal agency until the effective 
     date of the performance criteria established by the 
     Administrator under subsection (kk)(3) of section 9 of the 
     Small Business Act, as added by subsection (a).

     SEC. 312. GAO STUDY WITH RESPECT TO VENTURE CAPITAL OPERATING 
                   COMPANY INVOLVEMENT.

       Not later than 3 years after the date of enactment of this 
     Act, and every 3 years thereafter, the Comptroller General of 
     the United States shall--
       (1) conduct a study of the impact of requirements relating 
     to venture capital operating company involvement under 
     section 9(cc) of the Small Business Act, as added by section 
     108 of this Act; and
       (2) submit to Congress a report regarding the study 
     conducted under paragraph (1).

     SEC. 313. REDUCING VULNERABILITY OF SBIR AND STTR PROGRAMS TO 
                   FRAUD, WASTE, AND ABUSE.

       (a) Fraud, Waste, and Abuse Prevention.--
       (1) Guidelines for fraud, waste, and abuse prevention.--
       (A) Amendments required.--Not later than 90 days after the 
     date of enactment of this Act, the Administrator shall amend 
     the SBIR Policy Directive and the STTR Policy Directive to 
     include measures to prevent fraud, waste, and abuse in the 
     SBIR program and the STTR program.
       (B) Content of amendments.--The amendments required under 
     subparagraph (A) shall include--
       (i) definitions or descriptions of fraud, waste, and abuse;
       (ii) a requirement that the Inspectors General of each 
     Federal agency that participates in the SBIR program or the 
     STTR program cooperate to--

       (I) establish fraud detection indicators;
       (II) review regulations and operating procedures of the 
     Federal agencies;
       (III) coordinate information sharing between the Federal 
     agencies; and
       (IV) improve the education and training of, and outreach 
     to--

       (aa) administrators of the SBIR program and the STTR 
     program of each Federal agency;
       (bb) applicants to the SBIR program or the STTR program; 
     and
       (cc) recipients of awards under the SBIR program or the 
     STTR program;
       (iii) guidelines for the monitoring and oversight of 
     applicants to and recipients of awards under the SBIR program 
     or the STTR program; and
       (iv) a requirement that each Federal agency that 
     participates in the SBIR program or STTR program include the 
     telephone number of the hotline established under paragraph 
     (2)--

       (I) on the website of the Federal agency; and
       (II) in any solicitation or notice of funding opportunity 
     issued by the Federal agency for the SBIR program or the STTR 
     program.

       (2) Fraud, waste, and abuse prevention hotline.--
       (A) Hotline established.--The Administrator shall establish 
     a telephone hotline that allows individuals to report fraud, 
     waste, and abuse in the SBIR program or STTR program.
       (B) Publication.--The Administrator shall include the 
     telephone number for the hotline established under 
     subparagraph (A) on the website of the Administration.
       (b) Study and Report.--
       (1) Study.--Not later than 1 year after the date of 
     enactment of this Act, and every 3 years thereafter, the 
     Comptroller General of the United States shall--
       (A) conduct a study that evaluates--
       (i) the implementation by each Federal agency that 
     participates in the SBIR program or the STTR program of the 
     amendments to the SBIR Policy Directive and the STTR Policy 
     Directive made pursuant to subsection (a);
       (ii) the effectiveness of the management information system 
     of each Federal agency that participates in the SBIR program 
     or STTR program in identifying duplicative SBIR and STTR 
     projects;
       (iii) the effectiveness of the risk management strategies 
     of each Federal agency that

[[Page 23501]]

     participates in the SBIR program or STTR program in 
     identifying areas of the SBIR program or the STTR program 
     that are at high risk for fraud;
       (iv) technological tools that may be used to detect 
     patterns of behavior that may indicate fraud by applicants to 
     the SBIR program or the STTR program;
       (v) the success of each Federal agency that participates in 
     the SBIR program or STTR program in reducing fraud, waste, 
     and abuse in the SBIR program or the STTR program of the 
     Federal agency; and
       (vi) the extent to which the Inspector General of each 
     Federal agency that participates in the SBIR program or STTR 
     program effectively conducts investigations of individuals 
     alleged to have submitted false claims or violated Federal 
     law relating to fraud, conflicts of interest, bribery, 
     gratuity, or other misconduct; and
       (B) submit to the Committee on Small Business and 
     Entrepreneurship of the Senate, the Committee on Small 
     Business of the House of Representatives, and the head of 
     each Federal agency that participates in the SBIR program or 
     STTR program a report on the results of the study conducted 
     under subparagraph (A).

     SEC. 314. INTERAGENCY POLICY COMMITTEE.

       (a) Establishment.--The Director of the Office of Science 
     and Technology Policy (in this section referred to as the 
     ``Director''), in conjunction with the Administrator, shall 
     establish an Interagency SBIR/STTR Policy Committee (in this 
     section referred to as the ``Committee'') comprised of 1 
     representative from each Federal agency with an SBIR program 
     or an STTR program and 1 representative of the Office of 
     Management and Budget.
       (b) Cochairpersons.--The Director and the Administrator 
     shall serve as cochairpersons of the Committee.
       (c) Duties.--The Committee shall review, and make policy 
     recommendations on ways to improve the effectiveness and 
     efficiency of, the SBIR program and the STTR program, 
     including --
       (1) reviewing the effectiveness of the public and 
     government databases described in section 9(k) of the Small 
     Business Act (15 U.S.C. 638(k));
       (2) identifying--
       (A) best practices for commercialization assistance by 
     Federal agencies that have significant potential to be 
     employed by other Federal agencies; and
       (B) proposals by Federal agencies for initiatives to 
     address challenges for small business concerns in obtaining 
     funding after a Phase II award ends and before 
     commercialization; and
       (3) developing and incorporating a standard evaluation 
     framework to enable systematic assessment of the SBIR program 
     and STTR program, including through improved tracking of 
     awards and outcomes and development of performance measures 
     for the SBIR program and STTR program of each Federal agency.
       (d) Reports.--The Committee shall submit to the Committee 
     on Small Business and Entrepreneurship of the Senate and the 
     Committee on Science and Technology and the Committee on 
     Small Business of the House of Representatives--
       (1) a report on the review by and recommendations of the 
     Committee under subsection (c)(1) not later than 1 year after 
     the date of enactment of this Act;
       (2) a report on the review by and recommendations of the 
     Committee under subsection (c)(2) not later than 18 months 
     after the date of enactment of this Act; and
       (3) a report on the review by and recommendations of the 
     Committee under subsection (c)(3) not later than 2 years 
     after the date of enactment of this Act.

                      TITLE IV--POLICY DIRECTIVES

     SEC. 401. CONFORMING AMENDMENTS TO THE SBIR AND THE STTR 
                   POLICY DIRECTIVES.

       (a) In General.--Not later than 180 days after the date of 
     enactment of this Act, the Administrator shall promulgate 
     amendments to the SBIR Policy Directive and the STTR Policy 
     Directive to conform such directives to this Act and the 
     amendments made by this Act.
       (b) Publishing SBIR Policy Directive and the STTR Policy 
     Directive in the Federal Register.--Not later than 180 days 
     after the date of enactment of this Act, the Administrator 
     shall publish the amended SBIR Policy Directive and the 
     amended STTR Policy Directive in the Federal Register.

                       TITLE V--OTHER PROVISIONS

     SEC. 501. RESEARCH TOPICS AND PROGRAM DIVERSIFICATION.

       (a) SBIR Program.--Section 9(g) of the Small Business Act 
     (15 U.S.C. 638(g)) is amended--
       (1) in paragraph (3)--
       (A) in the matter preceding subparagraph (A), by striking 
     ``broad research topics and to topics that further 1 or more 
     critical technologies'' and inserting ``applications to the 
     Federal agency for support of projects relating to 
     nanotechnology, rare diseases, security, energy, 
     transportation, or improving the security and quality of the 
     water supply of the United States, and the efficiency of 
     water delivery systems and usage patterns in the United 
     States (including the territories of the United States) 
     through the use of technology (to the extent that the 
     projects relate to the mission of the Federal agency), broad 
     research topics, and topics that further 1 or more critical 
     technologies or research priorities'';
       (B) in subparagraph (A), by striking ``or'' at the end; and
       (C) by adding at the end the following:
       ``(C) the National Academy of Sciences, in the final report 
     issued by the `America's Energy Future: Technology 
     Opportunities, Risks, and Tradeoffs' project, and in any 
     subsequent report by the National Academy of Sciences on 
     sustainability, energy, or alternative fuels;
       ``(D) the National Institutes of Health, in the annual 
     report on the rare diseases research activities of the 
     National Institutes of Health for fiscal year 2005, and in 
     any subsequent report by the National Institutes of Health on 
     rare diseases research activities;
       ``(E) the National Academy of Sciences, in the final report 
     issued by the `Transit Research and Development: Federal Role 
     in the National Program' project and the report entitled 
     `Transportation Research, Development and Technology 
     Strategic Plan (2006-2010)' issued by the Research and 
     Innovative Technology Administration of the Department of 
     Transportation, and in any subsequent report issued by the 
     National Academy of Sciences or the Department of 
     Transportation on transportation and infrastructure; or
       ``(F) the national nanotechnology strategic plan required 
     under section 2(c)(4) of the 21st Century Nanotechnology 
     Research and Development Act (15 U.S.C. 7501(c)(4)) and in 
     any report issued by the National Science and Technology 
     Council Committee on Technology that focuses on areas of 
     nanotechnology identified in such plan;''; and
       (2) by adding after paragraph (12), as added by section 
     111(a) of this Act, the following:
       ``(13) encourage applications under the SBIR program (to 
     the extent that the projects relate to the mission of the 
     Federal agency)--
       ``(A) from small business concerns in geographic areas 
     underrepresented in the SBIR program or located in rural 
     areas (as defined in section 1393(a)(2) of the Internal 
     Revenue Code of 1986);
       ``(B) small business concerns owned and controlled by 
     women;
       ``(C) small business concerns owned and controlled by 
     veterans;
       ``(D) small business concerns owned and controlled by 
     Native Americans; and
       ``(E) small business concerns located in a geographic area 
     with an unemployment rates that exceed the national 
     unemployment rate, based on the most recently available 
     monthly publications of the Bureau of Labor Statistics of the 
     Department of Labor.''.
       (b) STTR Program.--Section 9(o) of the Small Business Act 
     (15 U.S.C. 638(o)), as amended by section 111(b) of this Act, 
     is amended--
       (1) in paragraph (3)--
       (A) in the matter preceding subparagraph (A), by striking 
     ``broad research topics and to topics that further 1 or more 
     critical technologies'' and inserting ``applications to the 
     Federal agency for support of projects relating to 
     nanotechnology, security, energy, rare diseases, 
     transportation, or improving the security and quality of the 
     water supply of the United States (to the extent that the 
     projects relate to the mission of the Federal agency), broad 
     research topics, and topics that further 1 or more critical 
     technologies or research priorities'';
       (B) in subparagraph (A), by striking ``or'' at the end; and
       (C) by adding at the end the following:
       ``(C) the National Academy of Sciences, in the final report 
     issued by the `America's Energy Future: Technology 
     Opportunities, Risks, and Tradeoffs' project, and in any 
     subsequent report by the National Academy of Sciences on 
     sustainability, energy, or alternative fuels;
       ``(D) the National Institutes of Health, in the annual 
     report on the rare diseases research activities of the 
     National Institutes of Health for fiscal year 2005, and in 
     any subsequent report by the National Institutes of Health on 
     rare diseases research activities;
       ``(E) the National Academy of Sciences, in the final report 
     issued by the `Transit Research and Development: Federal Role 
     in the National Program' project and the report entitled 
     `Transportation Research, Development and Technology 
     Strategic Plan (2006-2010)' issued by the Research and 
     Innovative Technology Administration of the Department of 
     Transportation, and in any subsequent report issued by the 
     National Academy of Sciences or the Department of 
     Transportation on transportation and infrastructure; or
       ``(F) the national nanotechnology strategic plan required 
     under section 2(c)(4) of the 21st Century Nanotechnology 
     Research and Development Act (15 U.S.C. 7501(c)(4)) and in 
     any report issued by the National Science and Technology 
     Council Committee on Technology that focuses on areas of 
     nanotechnology identified in such plan;'';
       (2) in paragraph (15), by striking ``and'' at the end;
       (3) in paragraph (16), by striking the period at the end 
     and inserting ``; and''; and
       (4) by adding at the end the following:
       ``(17) encourage applications under the STTR program (to 
     the extent that the

[[Page 23502]]

     projects relate to the mission of the Federal agency)--
       ``(A) from small business concerns in geographic areas 
     underrepresented in the STTR program or located in rural 
     areas (as defined in section 1393(a)(2) of the Internal 
     Revenue Code of 1986);
       ``(B) small business concerns owned and controlled by 
     women;
       ``(C) small business concerns owned and controlled by 
     veterans;
       ``(D) small business concerns owned and controlled by 
     Native Americans; and
       ``(E) small business concerns located in a geographic area 
     with an unemployment rates that exceed the national 
     unemployment rate, based on the most recently available 
     monthly publications of the Bureau of Labor Statistics of the 
     Department of Labor.''.
       (c) Research and Development Focus.--Section 9(x) of the 
     Small Business Act (15 U.S.C. 638(x)) is amended--
       (1) by striking paragraph (2); and
       (2) by redesignating paragraph (3) as paragraph (2).

     SEC. 502. REPORT ON SBIR AND STTR PROGRAM GOALS.

       Section 9 of the Small Business Act (15 U.S.C. 638), as 
     amended by this Act, is amended by adding at the end the 
     following:
       ``(ll) Annual Report on SBIR and STTR Program Goals.--
       ``(1) Development of metrics.--The head of each Federal 
     agency required to participate in the SBIR program or the 
     STTR program shall develop metrics to evaluate the 
     effectiveness, and the benefit to the people of the United 
     States, of the SBIR program and the STTR program of the 
     Federal agency that--
       ``(A) are science-based and statistically driven;
       ``(B) reflect the mission of the Federal agency; and
       ``(C) include factors relating to the economic impact of 
     the programs.
       ``(2) Evaluation.--The head of each Federal agency 
     described in paragraph (1) shall conduct an annual evaluation 
     using the metrics developed under paragraph (1) of--
       ``(A) the SBIR program and the STTR program of the Federal 
     agency; and
       ``(B) the benefits to the people of the United States of 
     the SBIR program and the STTR program of the Federal agency.
       ``(3) Report.--
       ``(A) In general.--The head of each Federal agency 
     described in paragraph (1) shall submit to the appropriate 
     committees of Congress and the Administrator an annual report 
     describing in detail the results of an evaluation conducted 
     under paragraph (2).
       ``(B) Public availability of report.--The head of each 
     Federal agency described in paragraph (1) shall make each 
     report submitted under subparagraph (A) available to the 
     public online.
       ``(C) Definition.--In this paragraph, the term `appropriate 
     committees of Congress' means--
       ``(i) the Committee on Small Business and Entrepreneurship 
     of the Senate; and
       ``(ii) the Committee on Small Business and the Committee on 
     Science and Technology of the House of Representatives.''.

     SEC. 503. COMPETITIVE SELECTION PROCEDURES FOR SBIR AND STTR 
                   PROGRAMS.

       Section 9 of the Small Business Act (15 U.S.C. 638), as 
     amended by this Act, is amended by adding at the end the 
     following:
       ``(mm) Competitive Selection Procedures for SBIR and STTR 
     Programs.--All funds awarded, appropriated, or otherwise made 
     available in accordance with subsection (f) or (n) must be 
     awarded pursuant to competitive and merit-based selection 
     procedures.''.

                          ____________________