[Congressional Record (Bound Edition), Volume 163 (2017), Part 11]
[House]
[Pages 15794-15800]
[From the U.S. Government Publishing Office, www.gpo.gov]




 THE SMALL BUSINESS INNOVATION RESEARCH AND SMALL BUSINESS TECHNOLOGY 
                   TRANSFER IMPROVEMENTS ACT OF 2017

  Mr. CHABOT. Mr. Speaker, I move to suspend the rules and pass the 
bill (H.R. 2763) to amend the Small Business Act to improve the Small 
Business Innovation Research program and Small Business Technology 
Transfer program, and for other purposes, as amended.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                               H.R. 2763

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

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as ``The Small 
     Business Innovation Research and Small Business Technology 
     Transfer Improvements Act of 2017''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title, table of contents.
Sec. 2. Requiring insertion incentives.
Sec. 3. Additional SBIR and STTR technology insertion reporting 
              requirement.
Sec. 4. Encouraging innovation in United States manufacturing.
Sec. 5. Encouraging innovation in cybersecurity.
Sec. 6. Compliance of Phase III awards with competitive procedures.
Sec. 7. Improvements to technical and business assistance in the SBIR 
              and STTR programs.
Sec. 8. Procurement center representatives and other acquisition 
              personnel in the SBIR and STTR programs.
Sec. 9. Increased outreach requirements.
Sec. 10. Annual meeting.
Sec. 11. Establishing the Civilian Agency Commercialization Readiness 
              Program.
Sec. 12. Commercialization assistance pilot programs.
Sec. 13. Phase 0 Proof of Concept Partnership Pilot Program.
Sec. 14. Reporting requirements.
Sec. 15. SBIR Phase flexibility.
Sec. 16. Extension of deadline for assistance for administrative, 
              oversight, and contract processing costs.

     SEC. 2. REQUIRING INSERTION INCENTIVES.

       Section 9(y)(5) of the Small Business Act (15 U.S.C. 
     638(y)(5)) is amended by striking ``is authorized to'' and 
     inserting. ``shall''.

     SEC. 3. ADDITIONAL SBIR AND STTR TECHNOLOGY INSERTION 
                   REPORTING REQUIREMENT.

       Section 9(y)(6) of the Small Business Act (15 U.S.C. 
     638(y)(6)) is amended--
       (1) in subparagraph (B), by striking ``and'' at the end;
       (2) in subparagraph (C)(iii), by striking the period at the 
     end and inserting ``; and''; and
       (3) by adding at the end the following new subparagraph:
       ``(D) not later than 120 days after the date of the 
     enactment of this subparagraph, and not later than December 
     31 of each year thereafter, submit to the Committee on 
     Science, Space, and Technology and the Committee on Small 
     Business of the House of Representatives, and to the 
     Committee on Small Business and Entrepreneurship of the 
     Senate, a report describing the goals set under subparagraph 
     (A) and the incentives used or created under subparagraph 
     (B).''.

     SEC. 4. ENCOURAGING INNOVATION IN UNITED STATES 
                   MANUFACTURING.

       Section 9 of the Small Business Act (15 U.S.C. 638) is 
     amended by adding at the end the following new subsection:
       ``(tt) Encouraging Innovation in United States 
     Manufacturing.--In carrying out this section, the 
     Administrator shall--
       ``(1) ensure that, in selecting small business concerns to 
     participate in SBIR or STTR programs under this section, 
     Federal agencies give high priority to small manufacturing 
     companies and other small business concerns engaged in or 
     planning to engage in manufacturing research and development 
     for the purpose of developing and producing new products and 
     technologies in the United States; and''
       ``(2) include in the annual report to Congress under 
     subsection (b)(7) a determination of whether the priority 
     described in paragraph (1) is being carried out.''.

     SEC. 5. ENCOURAGING INNOVATION IN CYBERSECURITY.

       Section 9 of the Small Business Act (15 U.S.C. 638), as 
     amended by section 4, is further amended by adding at the end 
     the following new subsection.
       ``(uu) Encouraging Innovation in Cybersecurity.--In 
     carrying out this section, the Administrator shall--
       ``(1) ensure that, in selecting small business concerns to 
     participate in SBIR or STIR programs under this section, 
     Federal agencies engaged in cybersecurity research give high 
     priority to small business concerns that are engaged in 
     cybersecurity research and development, for the purpose of 
     developing and implementing technology services and products 
     to strengthen the security of United States Government and 
     private computer systems, including software, hardware, and 
     portable devices; and
       ``(2) include in the annual report to Congress under 
     subsection (b)(7) a determination of whether the priority 
     described in paragraph (1) is being carried out.''

     SEC. 6. COMPLIANCE OF PHASE III AWARDS WITH COMPETITIVE 
                   PROCEDURES.

       Section 9(r)(4) of the Small Business Act (15 U.S.C. 
     638(r)(4)) is amended by inserting ``as direct follow-on 
     awards issued without further competition'' after ``developed 
     the technology''

     SEC. 7. IMPROVEMENTS TO TECHNICAL AND BUSINESS ASSISTANCE IN 
                   THE SBIR AND STTR PROGRAMS.

       Section 9(q) of the Small Business Act (15 U.S.C. 638(q)) 
     is amended--
       (1) in the subsection heading, by inserting ``and 
     Business'' after ``Technical'';
       (2) in paragraph (1)--
       (A) in the matter preceding subparagraph (A)--
       (i) by striking ``a vendor selected under paragraph (2)'' 
     and inserting ``1 or more vendors selected under paragraph 
     (2)(A)'';
       (ii) by inserting ``and business'' before ``assistance 
     services''; and
       (iii) by inserting ``assistance with product sales, 
     intellectual property protections, market research, market 
     validation, and development of regulatory plans and 
     manufacturing plans,'' after ``technologies,''; and
       (B) in subparagraph (D), by inserting ``, including 
     intellectual property protections'' before the period at the 
     end;
       (3) in paragraph (2)--
       (A) by striking ``Each agency may select a vendor to assist 
     small business concerns to meet'' and inserting the 
     following:
       ``(A) In General.--Each agency may select 1 or more vendors 
     from which small business concerns may obtain assistance in 
     meeting''; and
       (B) by adding at the end the following new subparagraph:
       (B) Selection by small business concern.--A small business 
     concern may, by contract or otherwise, select 1 or more 
     vendors to assist the small business concern in meeting the 
     goals listed in paragraph (1).''; and
       (4) in paragraph (3)--
       (A) by inserting ``(A)'' after ``paragraph (2)'' each place 
     it appears;
       (B) in subparagraph (A), by striking ``$5,000 per year'' 
     each place it appears and inserting ``$6,500 per project'';
       (C) in subparagraph (B)--
       (i) by striking ``$5,000 per year'' each place it appears 
     and inserting ``$35,000 per project''; and
       (ii) in clause (ii), by striking ``which shall be in 
     addition to the amount of the recipient's award'' and 
     inserting ``which may, as

[[Page 15795]]

     determined appropriate by the head of the agency, be included 
     as part of the recipient's award or be in addition to the 
     amount of the recipient's award'';
       (D) in subparagraph (C)--
       (i) by inserting ``or business'' after ``technical'';
       (ii) by striking ``the vendor'' and inserting ``a vendor''; 
     and
       (iii) by adding at the end the following: ``Business-
     related services aimed at improving the commercialization 
     success of a small business concern may be obtained from an 
     entity, such as a public or private organization or an agency 
     of or other entity established or funded by a State that 
     facilitates or accelerates the commercialization of 
     technologies or assists in the creation and growth of private 
     enterprises that are commercializing technology.'';
       (E) in subparagraph (D)--
       (i) by inserting ``or business'' after ``technical'' each 
     place it appears; and
       (ii) in clause (i), by striking ``the vendor'' and 
     inserting ``1 or more vendors''; and
       (F) by adding at the end the following new subparagraph:
       (E) Multiple award recipients.--The Administrator shall 
     establish a limit on the amount of technical and business 
     assistance services that may be received or purchased under 
     subparagraph (B) by a small business concern that has 
     received multiple Phase II SBIR or STTR awards for a fiscal 
     year.''.

     SEC. 8. PROCUREMENT CENTER REPRESENTATIVES AND OTHER 
                   ACQUISITION PERSONNEL IN THE SBIR AND STTR 
                   PROGRAMS.

       (a) Definition of Senior Procurement Executive.--Section 
     9(e) of the Small Business Act (15 U.S.C. 638(e)) is 
     amended--
       (1) in paragraph (12)(B), by striking ``and'' at the end;
       (2) in paragraph (13)(B), by striking the period at the end 
     and inserting ``; and''; and
       (3) by adding at the end the following new paragraph:
       ``(14) the term `senior procurement executive' means an 
     official designated under section 1702(c) of title 41, United 
     States Code, as the senior procurement executive of a Federal 
     agency participating in a SBIR or STTR program.''.
       (b) Inclusion of Senior Procurement Executives in SBIR and 
     STTR.--
       (1) In general.--Section 9(b) of the Small Business Act (15 
     U.S.C. 638(b)) is amended--
       (A) in paragraph (8), by striking ``and'' at the end;
       (B) in paragraph (9), by striking the period at the end and 
     inserting ``; and''; and
       (C) by adding at the end the following new paragraph:
       ``(10) to coordinate, where appropriate, with the senior 
     procurement executive of the relevant Federal agency to 
     assist small business concerns participating in a SBIR or 
     STTR program with commercializing research developed under 
     such a program before such small business concern is awarded 
     a contract from such Federal agency.''.
       (2) Technical amendment.--Section 9(b)(3) of the Small 
     Business Act (15 U.S.C. 638(b)(3)) is amended by striking 
     ``and'' at the end.
       (c) Modifications Relating to Procurement Center 
     Representatives and Other Acquisition Personnel.--
       (1) SBIR amendment.--Section 9(j) of the Small Business Act 
     (15 U.S.C. 638(j)) is amended by adding at the end the 
     following new paragraph:
       ``(4) Modifications relating to procurement center 
     representatives.--Upon the enactment of this paragraph, the 
     Administrator shall modify the policy directives issued 
     pursuant to this subsection to require procurement center 
     representatives (as described in section 15(l)) to coordinate 
     with the appropriate contracting officer or SBIR program 
     officer, and the appropriate Director of Small and 
     Disadvantaged Business Utilization established pursuant to 
     section 15(k) for the agency letting the contract, to assist 
     small business concerns participating in the SBIR program, 
     particularly in Phase III. The procurement center 
     representatives shall coordinate with the appropriate 
     contracting officer and the appropriate Director of the 
     Office of Small and Disadvantaged Business Utilization 
     established pursuant to section 15(k) for the agency letting 
     the contract.''.
       (2) STTR amendment.--Section 9(p)(2) of the Small Business 
     Act (15 U.S.C. 638(p)(2)) is amended--
       (A) in subparagraph (E)(ii), by striking ``and'' at the 
     end;
       (B) in subparagraph (F), by striking the period at the end 
     and inserting a semicolon; and
       (C) by adding at the end the following new subparagraph:
       ``(G) procedures to ensure that procurement center 
     representatives (as described in section 15(l))--
       ``(i) coordinate with the appropriate contracting officer 
     or STTR program officer, and the appropriate Director of 
     Small and Disadvantaged Business Utilization established 
     pursuant to section 15(k) for the agency letting the 
     contract, to assist small business concerns participating in 
     the STTR program, particularly in Phase III; and
       ``(ii) coordinate with the appropriate contracting officer 
     and the appropriate Director of the Office of Small and 
     Disadvantaged Business Utilization established pursuant to 
     section 15(k) for the Federal agency letting the contract in 
     providing the assistance described in clause (i); and''.
       (d) Amendment to Duties of Procurement Center 
     Representatives.--Section 15(l)(2) of the Small Business Act 
     (15 U.S.C. 644(l)(2)) is amended--
       (1) in subparagraph (I), by striking ``and'' at the end;
       (2) by redesignating subparagraph (J) as subparagraph (L); 
     and
       (3) by inserting after subparagraph (I) the following new 
     subparagraphs:
       ``(J) coordinate with the appropriate contracting officer 
     or SBIR or STTR program officer, and the appropriate Director 
     of Small and Disadvantaged Business Utilization established 
     pursuant to section 15(k) for the agency letting the 
     contract, to assist small business concerns participating in 
     a SBIR or STTR program under section 9 with Phase III;
       ``(K) coordinate with the appropriate contracting officer 
     and the appropriate Director of the Office of Small and 
     Disadvantaged Business Utilization established pursuant to 
     subsection (k) for the agency letting the contract; and''.
       (e) Amendment to the Duties of the Director of Small and 
     Disadvantaged Business Utilization for Federal Agencies.--
     Section 15(k) of the Small Business Act (15 U.S.C. 644(k)) is 
     amended--
       (1) in paragraph (19), by striking ``and'' at the end;
       (2) in paragraph (20), by striking the period at the end 
     and inserting a semicolon; and
       (3) by adding at the end the following new paragraphs:
       ``(21) shall coordinate with the appropriate contracting 
     officer of SBIR or STTR program officer to assist small 
     business concerns participating in a SBIR or STTR program 
     under section 9 with researching applicable solicitations for 
     the award of a Federal contract (particularly with the 
     Federal agency that has a funding agreement (as defined under 
     section 9) with the concern) to market the research developed 
     by such concern under such SBIR or STTR program; and
       ``(22) shall provide technical assistance to small business 
     concerns participating in a SBIR or STTR program under 
     section 9 to submit a bid for an award of a Federal contract, 
     including coordination with procurement center 
     representatives and the appropriate senior procurement 
     executive for the agency letting the contract.''.

     SEC. 9. INCREASED OUTREACH REQUIREMENTS.

       (a) In General.--
       (1) SBIR amendment.--Section 9(j) of the Small Business Act 
     (15 U.S.C. 638(j)), as amended by section 8, is further 
     amended by adding at the end the following new paragraph:
       ``(5) Increased outreach requirements.--Upon the enactment 
     of this paragraph, the Administrator shall modify the policy 
     directives issued pursuant to this subsection to require 
     outreach efforts to increase the participation in 
     technological innovation under the SBIR programs among 
     individuals conducting research at minority institutions (as 
     defined in section 365(3) of the Higher Education Act of 
     1965) and Hispanic-serving institutions (as defined in 
     section 502(a)(5) of such Act).''.
       (2) STTR amendment.--Section 9(p)(2) of the Small Business 
     Act (15 U.S.C. 638(p)(2)), as amended by section 8, is 
     further amended by adding at the end the following new 
     subparagraph:
       ``(H) procedures for outreach efforts to increase the 
     participation in technological innovation under the SBIR 
     programs among individuals conducting research at minority 
     institutions (as defined in section 365(3) of the Higher 
     Education Act of 1965) and Hispanic-serving institutions (as 
     defined in section 502(a)(5) of such Act).''.
       (b) Funding for Outreach.--Section 9(mm)(1) of the Small 
     Business Act (15 U.S.C. 638(mm)(1)) is amended--
       (1) in subparagraph (I), by striking the ``and'' at the 
     end;
       (2) in subparagraph (J), by striking the period at the end 
     and inserting a semicolon; and
       (3) by adding at the end the following new subparagraph:
       ``(K) the outreach efforts described under subsections 
     (j)(4) and (p)(2)(G); and''.

     SEC. 10. ANNUAL MEETING.

       (a) In General.--Section 9 of the Small Business Act (15 
     U.S.C. 638), as amended by section 5, is further amended by 
     adding at the end the following new subsection:
       ``(vv) Annual Meeting.--
       ``(1) In general.--The head of each Federal agency required 
     to have a program under this section (or a designee) and the 
     Administrator (or a designee) shall meet annually to discuss 
     methods--
       ``(A) to improve the collection of data under this section;
       ``(B) to improve the reporting of data to the Administrator 
     under this section;
       ``(C) to make the application processes for programs under 
     this section more efficient; and
       ``(D) to increase participation in the programs established 
     under this section.
       ``(2) Report.--Not later than 60 days after the date on 
     which an annual meeting required under paragraph (1) is held, 
     the Administrator shall submit to the Committee

[[Page 15796]]

     on Small Business and Entrepreneurship of the Senate and the 
     Committee on Small Business and the Committee on Science, 
     Space, and Technology of the House of Representatives, a 
     report on the findings of such meeting and recommendations on 
     how to implement changes to programs under this section.''.
       (b) Funding for Annual Meeting.--Section 9(mm)(1) of the 
     Small Business Act (15 U.S.C. 638(mm)(1)) as amended by 
     section 9, is further amended by adding at the end the 
     following new subparagraph:
       ``(L) the annual meeting required under subsection (vv).''.

     SEC. 11. ESTABLISHING THE CIVILIAN AGENCY COMMERCIALIZATION 
                   READINESS PROGRAM.

       Section 9(gg) of the Small Business Act (15 U.S.C. 638(gg)) 
     is amended--
       (1) by amending the subsection heading to read as follows: 
     ``Civilian Agency Commercialization Readiness Program'';
       (2) in paragraph (1), by inserting ``to establish a 
     Civilian Agency Commercialization Readiness Program for 
     civilian agencies'' after ``the covered Federal agency'';
       (3) in paragraph (2)(A)--
       (A) by striking ``establish a pilot program'' and inserting 
     ``establish a Civilian Agency Commercialization Readiness 
     Program under this subsection''; and
       (B) by striking ``the pilot program'' and inserting ``such 
     Civilian Agency Commercialization Readiness Program'';
       (4) in paragraphs (3) and (4), by striking ``a pilot 
     program'' each place such term appears and inserting ``a 
     Civilian Commercialization Readiness Program'';
       (5) in paragraph (6), by striking ``the pilot program'' and 
     inserting ``a Civilian Agency Commercialization Readiness 
     Program'';
       (6) by striking. paragraph (7) and redesignating paragraph 
     (8) as paragraph (7); and
       (7) in paragraph (7) (as so redesignated), by amending 
     subparagraph (B) to read as follows:
       ``(B) the term `Civilian Agency Commercialization Readiness 
     Program' means each program established under paragraph 
     (1).''.

     SEC. 12. COMMERCIALIZATION ASSISTANCE PILOT PROGRAMS.

       Section 9 of the Small Business Act (15 U.S.C. 638), as 
     amended by section 10, is further amended by adding at the 
     end the following new subsection:
       ``(ww) Commercialization Assistance Pilot Programs.--
       ``(1) Pilot programs implemented.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     not later than one year after the date of the enactment of 
     this subsection, a covered agency shall implement a 
     commercialization assistance pilot program, under which an 
     eligible entity may receive a subsequent Phase II SBIR award.
       ``(B) Exception.--If the Administrator determines that a 
     covered agency has a program that is sufficiently similar to 
     the commercialization assistance pilot program established 
     under this subsection, such covered agency shall not be 
     required to implement a commercialization assistance pilot 
     program under this subsection.
       ``(2) Percent of agency funds.--The head of each covered 
     agency may allocate not more than 5 percent of the funds 
     allocated to the SBIR program of the covered agency for the 
     purpose of making a subsequent Phase II SBIR award under the 
     commercialization assistance pilot program.
       ``(3) Termination.--A commercialization assistance pilot 
     program established under this subsection shall terminate on 
     September 30, 2022.
       ``(4) Application.--To be selected to receive a subsequent 
     Phase II SBIR award under a commercialization assistance 
     pilot program, an eligible entity shall submit to the covered 
     agency implementing such pilot program an application at such 
     time, in such manner, and containing such information as the 
     covered agency may require, including--
       ``(A) an updated Phase II commercialization plan; and
       ``(B) the source and amount of the matching funding 
     required under paragraph (5).
       ``(5) Matching funding.--
       ``(A) In general.--The Administrator shall require, as a 
     condition of any subsequent Phase II SBIR award made to an 
     eligible entity under this subsection, that a matching amount 
     (excluding any fees collected by the eligible entity 
     receiving such award) equal to the amount of such award be 
     provided from an eligible third-party investor.
       ``(B) Ineligible sources.--An eligible entity may not use 
     funding from ineligible sources to meet the matching 
     requirement of subparagraph (A).
       ``(6) Award.--A subsequent Phase II SBIR award made to an 
     eligible entity under this sub-section--
       ``(A) may not exceed the limitation described under 
     subsection (aa)(1); and
       ``(B) shall be disbursed during Phase II.
       ``(7) Use of funds.--The funds awarded to an eligible 
     entity under this subsection may only be used for research 
     and development activities that build on eligible entity's 
     Phase II program and ensure the research funded under such 
     Phase II is rapidly progressing towards commercialization.
       ``(8) Selection.--In selecting eligible entities to 
     participate in a commercialization assistance pilot program 
     under this subsection, the head of a covered agency shall 
     consider--
       ``(A) the extent to which such award could aid the eligible 
     entity in commercializing the research funded under the 
     eligible entity's Phase II program;
       ``(B) whether the updated Phase II commercialization plan 
     submitted under paragraph (4) provides a sound approach for 
     establishing technical feasibility that could lead to 
     commercialization of such research;
       ``(C) whether the proposed activities to be conducted under 
     such updated Phase II commercialization plan further improve 
     the likelihood that such research will provide societal 
     benefits;
       ``(D) whether the small business concern has progressed 
     satisfactorily in Phase II to justify receipt of a subsequent 
     Phase II SBIR award;
       ``(E) the expectations of the eligible third-party investor 
     that provides matching funding under paragraph (5); and
       ``(F) the likelihood that the proposed activities to be 
     conducted under such updated Phase II commercialization plan 
     using matching funding provided by such eligible third-party 
     investor will lead to commercial and societal benefit.
       ``(9) Evaluation report.--Not later than 3 years after the 
     date of the enactment of this subsection, the Comptroller 
     General of the United States shall submit to the Committee on 
     Science, Space, and Technology and the Committee on Small 
     Business of the House of Representatives, and the Committee 
     on Small Business and Entrepreneurship of the Senate, a 
     report including--
       ``(A) a summary of the activities of commercialization 
     assistance pilot programs carried out under this subsection;
       ``(B) a detailed compilation of results achieved by such 
     commercialization assistance pilot programs, including the 
     number of eligible entities that received awards under such 
     programs;
       ``(C) the rate at which each eligible entity that received 
     a subsequent Phase II SBIR award under this subsection 
     commercialized research of the recipient;
       ``(D) the growth in employment and revenue of eligible 
     entities that is attributable to participation in a 
     commercialization assistance pilot program;
       ``(E) a comparison of commercialization success of eligible 
     entities participating in a commercialization assistance 
     pilot program with recipients of an additional Phase II SBIR 
     award under subsection (ff);
       ``(F) demographic information, such as ethnicity and 
     geographic location, of eligible entities participating in a 
     commercialization assistance pilot program;
       ``(G) an accounting of the funds used at each covered 
     agency that implements a commercialization assistance pilot 
     program under this subsection;
       ``(H) the amount of matching funding provided by eligible 
     third-party investors, set forth separately by source of 
     funding;
       ``(I) an analysis of the effectiveness of the 
     commercialization assistance pilot program implemented by 
     each covered agency; and
       ``(J) recommendations for improvements to the 
     commercialization assistance pilot program.
       ``(10) Definitions.--For purposes of this subsection:
       ``(A) Covered agency.--The term `covered agency' means a 
     Federal agency required to have an SBIR program.
       ``(B) Eligible entity.--The term `eligible entity' means a 
     small business concern that has received a Phase II award 
     under an SBIR program and an additional Phase II SBIR award 
     under subsection (ff) from the covered agency to which such 
     small business concern is applying for a subsequent Phase II 
     SBIR award.
       ``(C) Eligible third-party investor.--The term `eligible 
     third-party investor' means a small business concern other 
     than an eligible entity, a venture capital firm, an 
     individual investor, a non-SBIR Federal, State or local 
     government, or any combination thereof.
       ``(D) Ineligible sources.--The term `ineligible sources' 
     means the following:
       ``(i) The eligible entity's internal research and 
     development funds.
       ``(ii) Funding in forms other than cash, such as in-kind or 
     other intangible assets.
       ``(iii) Funding from the owners of the eligible entity, or 
     the family members or affiliates of such owners.
       ``(iv) Funding attained through loans or other forms of 
     debt obligations.
       ``(E) Subsequent phase ii sbir award.--The term `subsequent 
     Phase II SBIR award' means an award granted to an eligible 
     entity under tins subsection to carry out further 
     commercialization activities for research conducted pursuant 
     to an SBIR program.''.

     SEC. 13. PHASE 0 PROOF OF CONCEPT PARTNERSHIP PILOT PROGRAM.

       (a) Inclusion of Additional Agencies in Pilot Program.--
     Section 9(jj) of the Small Business Act (15 U.S.C. 638(jj) is 
     amended--
       (1) in paragraph (1)--
       (A) by striking ``The Director of the National Institutes 
     of Health'' and inserting ``Each covered agency head''; and
       (B) by striking ``the Director'' and inserting ``each 
     covered agency head'';
       (2) by amending subparagraph (A) of paragraph (2) to read 
     as follows:
       ``(A) the term `covered agency head' means the Director of 
     the National Institutes of

[[Page 15797]]

     Health, the Director of the National Science Foundation, the 
     Administrator of the National Aeronautics and Space 
     Administration and the Secretary of Energy;'';
       (3) in paragraph (4)--
       (A) in subparagraph (A), by striking ``The Director'' and 
     inserting ``Each covered agency head''; and
       (B) in subparagraph (B), by striking ``the Director shall 
     consider, in addition to any other criteria the Director'' 
     and inserting ``each covered agency head shall consider, in 
     addition to any other criteria the appropriate covered agency 
     head''; and
       (4) in paragraph (6), by striking ``The Director'' and 
     inserting ``Each covered agency head''.
       (b) Extension of Pilot Program Authority.--Section 9(jj)(7) 
     of the Small Business Act (15 U.S.C. 638(jj)(7)) is amended 
     by striking ``fiscal year 2017'' and inserting ``fiscal year 
     2022''.

     SEC. 14. REPORTING REQUIREMENTS.

       (a) Annual Report to Congress.--Section 9(b)(7) of the 
     Small Business Act (15 U.S.C. 638(b)(7)) is amended by 
     striking ``to report not less than annually'' and inserting 
     ``to submit a report not later than December 31 of each 
     year''.
       (b) Annual Report to SBA and the Office of Science and 
     Technology Policy.--Section 9(g)(9) of the Small Business Act 
     (15 U.S.C. 638(g)(9)) is amended--
       (1) by striking ``make an annual report'' and inserting 
     ``not later than March 30 of each year, submit a report''; 
     and
       (2) by striking ``and the Office of Science and Technology 
     Policy'' and inserting ``, the Office of Science and 
     Technology Policy, the Committee on Science, Space, and 
     Technology and the Committee on Small Business of the House 
     of Representatives, and the Committee on Small Business and 
     Entrepreneurship of the Senate''.

     SEC. 15. SBIR PHASE FLEXIBILITY.

       Section 9(cc) of the Small Business Act (15 U.S.C. 638(cc)) 
     is amended by striking ``During fiscal years'' and all that 
     follows through ``may each provide'' and inserting ``During 
     fiscal years 2018 through 2022, all agencies participating in 
     the SBIR program may provide''.

     SEC. 16. EXTENSION OF DEADLINE FOR ASSISTANCE FOR 
                   ADMINISTRATIVE, OVERSIGHT, AND CONTRACT 
                   PROCESSING COSTS.

       Section 9(mm)(1) of the Small Business Act (15 U.S.C. 
     638(mm)(1)), as amended by this Act, is further amended by 
     striking ``September 30, 2017'' and inserting ``September 30, 
     2022''.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Ohio (Mr. Chabot) and the gentlewoman from Florida (Mrs. Murphy) each 
will control 20 minutes.
  The Chair recognizes the gentleman from Ohio.


                             General Leave

  Mr. CHABOT. Mr. Speaker, I ask unanimous consent that all Members may 
have 5 legislative days to revise and extend their remarks and include 
extraneous material on the bill under consideration.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Ohio?
  There was no objection.
  Mr. CHABOT. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, this bipartisan legislation introduced by Chairman 
Knight and Ranking Member Murphy of the Committee on Small Business' 
Subcommittee on Contracting and Workforce aims to modernize and improve 
the Small Business Innovation Research and Small Business Technology 
Transfer, or SBIR and STTR, programs.
  The SBIR and STTR programs have helped thousands of small businesses 
create new technologies, commercialize their ideas, and generate new 
jobs. While creating these benefits in the private sector, the programs 
offer, in a cost-effective manner, ways for Federal agencies to solve 
operational problems. H.R. 2763 strengthens these two programs in quite 
a few ways.
  First, the bill emphasizes agency accountability by creating several 
firm reporting deadlines for covered agencies and for the SBA to 
provide future Congresses with improved information that will lead to a 
better understanding of the programs' strengths and weaknesses.
  Second, the legislation clarifies the congressional intent of the 
2011 reauthorization to ensure that taxpayers reap the benefits of the 
SBIR and STTR programs by binding the technologies developed in the 
programs to long-term projects at the Department of Defense.
  Third, the legislation extends a popular pilot program included in 
the 2011 reauthorization that would allow all participating Federal 
agencies to award a phase II contract immediately if the agency finds 
that the small business concern has already completed work typically 
done during phase I.
  Fourth, it makes permanent the option for all participating agencies 
to establish commercialization readiness programs, or CRPs. As a pilot 
program from the 2011 reauthorization, these CRPs have been shown to 
provide much-needed support to small companies nearing the completion 
of the process and have helped advance technology to the 
commercialization phase.
  Fifth, it extends, through 2022, the provision that allows 
participating agencies to utilize 3 percent of their allocation for 
administrative functions, conduct outreach in an effort to bring more 
companies into the SBIR and STTR programs, and increase deterrents to 
waste, fraud, and abuse.
  I want to thank Congressman Knight and Congresswoman Murphy for the 
bipartisan work on this important legislation. I would also like to 
thank Chairman Smith and Ranking Member Johnson of the Committee on 
Science, Space, and Technology, as well as Chairwoman Comstock and 
Ranking Member Lipinski of the Subcommittee on Research and Technology, 
for working together with us to produce this bipartisan bill that we 
have before us this afternoon.
  I urge my colleagues to support the bill, and I reserve the balance 
of my time.
  Mrs. MURPHY of Florida. Mr. Speaker, I yield myself such time as I 
may consume.
  Mr. Speaker, I rise in support of H.R. 2763, The Small Business 
Innovation Research and Small Business Technology Transfer Improvements 
Act, which will modernize two programs that provide Federal funding to 
small technologically advanced firms to research and develop innovative 
products.
  I am proud to have cosponsored this legislation with Congressman 
Steve Knight, and I am encouraged that my colleagues on the Small 
Business Committee and the House Science, Space, and Technology 
Committee on both sides of the aisle support the bill.
  For decades, American innovation and ingenuity have bolstered our 
economic growth and solidified our country's status as a global leader 
in technology; and for more than 30 years, the Small Business 
Innovation Research and Small Business Technology Transfer programs 
have provided a critical source of funding to small businesses that 
engage in research and development. These initiatives were established 
to help spur innovation and job creation throughout the country.
  Since the inception of the programs, more than $40 billion has been 
awarded to small, innovative firms to address our Nation's most 
important research and development challenges. Because of the high-risk 
nature of their ventures, SBIR and STTR grantees receive R&D funding 
that might otherwise be unavailable in the private sector.
  As a direct result of the Federal investment in these programs, 
breakthroughs have been made in a wide range of sectors, including 
agriculture, defense, energy, and healthcare. In turn, these 
discoveries have generated tremendous economic growth and job 
opportunities across the country, including in central Florida.
  For many research companies in my district, these two programs serve 
as a gateway to the Federal contracting field. That is why I am honored 
to have cosponsored this bipartisan legislation.
  The final bill reflects bipartisan compromises and input from both 
committees of jurisdiction. Most importantly, it includes many 
provisions focused on developing innovative products that support 
important national priorities and that can be sold on the commercial 
market.
  To improve oversight of the program, the bill requires the Small 
Business Administration to submit an annual report to Congress no later 
than December 31 of each year. This will enable us to better account 
for the use of funds and to better assess the progress of SBIR and STTR 
initiatives at participating agencies.

[[Page 15798]]

  Another provision makes permanent the pilot program that establishes 
the Civilian Agency Commercialization Readiness program, which allows 
up to 10 percent of agency administrative dollars for sequential phase 
II awards to eligible businesses.
  Finally, the bill includes an amendment that I authored to require 
participating Federal agencies to take additional steps to educate 
small firms about the SBIR and STTR programs and to encourage more 
small firms to apply for funding.
  After more than a decade of fits and starts with these two programs, 
H.R. 2763 will make program improvements and provide much-needed 
certainty to small businesses seeking to commercialize. By authorizing 
the administrative fee to run these programs for an additional 5 years 
beyond its current authorization, Congress is taking proactive steps to 
give small firms the confidence they need to continue developing 
innovative products.
  I respectfully ask my colleagues to vote for this bill.
  Mr. Speaker, I reserve the balance of my time.
  Mr. CHABOT. Mr. Speaker, I yield such time as he may consume to the 
gentleman from California (Mr. Knight), who is the chairman of the 
Subcommittee on Contracting and Workforce on the Small Business 
Committee.
  Mr. KNIGHT. Mr. Speaker, I want to thank the chairman for his hard 
work and for his leadership, and I want to thank my partner in this, 
Congresswoman Murphy, for her cosponsoring of this bill and for her 
work on this important piece of legislation.
  A 21st century military requires a 21st century acquisition process, 
one that is agile, efficient, and effective. I represent California's 
25th District, and nowhere will you find a more exemplary place that 
demonstrates the important role that small businesses play in both our 
aerospace and defense industrial base.

                              {time}  1430

  I see firsthand the innovative effect small businesses make and how 
they can positively impact government functioning.
  The Small Business Innovation Research and Small Business Technology 
Transfer--SBIR and STTR--programs are critical to this impact. Now that 
these programs have been reauthorized until 2022, it is important that 
we continue to focus on spurring innovation.
  That is why I introduced H.R. 2763, the Small Business Innovation 
Research and Small Business Technology Transfer Improvements Act of 
2017. My bill reinforces agency accountability by requiring the Small 
Business Administration to provide Congress with better information and 
reasonable, hard deadlines. It clarifies congressional intent of the 
previous authorization to ensure that taxpayers reap the benefits of 
SBIR and STTR programs by tying them to long-term projects at the DOD. 
It also allows participating agencies to establish a new, separate 
commercialization assistance pilot program and extends three popular 
pilot programs through FY 2022, when the full program will need a full 
reauthorization.
  With the use of SBIR and STTR programs, we can increase small 
business participation in the defense and aerospace industry while 
tapping into the true potential their American innovative spirit 
represents.
  Mr. Speaker, I urge my colleagues to support this legislation and to 
vote ``yes'' on H.R. 2763, the Small Business Innovation Research and 
Small Business Technology Transfer Improvements Act.
  Mrs. MURPHY of Florida. Mr. Speaker, I yield 2 minutes to the 
gentlewoman from Texas (Ms. Eddie Bernice Johnson), the ranking member 
of the Science, Space, and Technology Committee.
  Ms. EDDIE BERNICE JOHNSON of Texas. Mr. Speaker, I rise today to 
support H.R. 2763, the Small Business Innovation Research and Small 
Business Technology Transfer Improvements Act of 2017.
  Mr. Speaker, I thank Chairman Chabot, Ranking Member Velazquez, 
Chairman Smith, and all other colleagues on both committees for their 
work to advance this bipartisan piece to the House floor.
  SBIR and STTR are valuable programs that provide competitive research 
and development grants and contracts to innovative small businesses. 
Stability and continuity in the SBIR and STTR programs are important 
goals, which is why I supported the agreement in last year's National 
Defense Authorization Act to extend the program until fiscal year 2022 
at the current allocation level.
  In H.R. 2763, the two authorizing committees have come to agreement 
on a number of policy improvements and some strengthened oversight for 
the programs.
  The policy changes in H.R. 2763 advances sensible ways to further 
leverage small business R&D to help meet Federal mission needs, as well 
as contribute more broadly to U.S. innovation and economic growth. The 
bill includes continued support for early-stage funding for 
entrepreneurial researchers, provides funding for important agency 
outreach and administrative activities, streamlines reporting 
requirements, ensures agency outreach for researchers at minority-
serving institutions, and authorizes several additional activities to 
support implementation of the program.
  I am particularly pleased that the bill includes a provision to 
address current agency shortfalls in fostering the participation of 
women and minority-owned firms. Fostering diversity in STEM research 
and innovation is an economic imperative.
  The SPEAKER pro tempore. The time of the gentlewoman has expired.
  Mrs. MURPHY of Florida. Mr. Speaker, I yield an additional 1 minute 
to the gentlewoman.
  Ms. EDDIE BERNICE JOHNSON of Texas. Mr. Speaker, we must continue to 
encourage such policies.
  H.R. 2763 is a good bill that improves the SBIR program and maximizes 
the benefits of federally funded small business R&D.
  Mr. Speaker, I urge my colleagues to support this bill.
  Mr. CHABOT. Mr. Speaker, I continue to reserve the balance of my 
time.
  Mrs. MURPHY of Florida. Mr. Speaker, I yield 3 minutes to the 
gentleman from Illinois (Mr. Lipinski).
  Mr. LIPINSKI. Mr. Speaker, I thank Chairmen Chabot and Smith and 
Ranking Members Velazquez and Johnson for their leadership on this 
bill.
  The SBIR and STTR programs have helped countless innovative small 
businesses grow jobs through American ingenuity. This bill will make 
these programs work even better by providing small businesses with 
additional tools for bringing innovations to market. Better SBIR and 
STTR programs mean more successful small businesses and more jobs.
  I especially want to thank my colleagues for supporting inclusion of 
two provisions that I put forward in committee.
  First, the bill increases the amount of money that grant recipients 
are allowed to spend on business and technical services, like market 
research, intellectual property protection; or participation in 
entrepreneurial training programs, like the highly successful 
Innovation Corps program. This helps small businesses, especially 
startups, use their funds where they know they are needed most, for 
technical assistance, creative approaches to problem solving, and other 
types of guidance needed in today's complex marketplaces.
  Second, this bill expands the highly successful Phase 0 Proof of 
Concept Partnership pilot program, which I helped create at the 
National Institutes of Health in a previous SBIR reauthorization. This 
highly successful program provides the earliest funding for researchers 
exploring the possibility of turning their research into a viable 
medical product.
  After just 2 years in operation, the three hubs created by the NIH 
program have filed 30 patent applications, negotiated 14 technology 
licenses, formed 7 companies, and have 70 promising technologies in the 
pipeline.
  This bill extends the Phase 0 program for another 5 years at NIH and 
expands

[[Page 15799]]

it to the National Science Foundation, NASA, and the Department of 
Energy. In doing so, we will be giving a needed boost to more 
researchers who are budding entrepreneurs who will create the jobs of 
tomorrow.
  Mr. Speaker, our small businesses deserve support as they drive 
America's economic growth. This bill will give innovators and 
entrepreneurs additional tools to drive this growth that we so 
desperately need. So I strongly urge my colleagues to support this 
bill.
  Mr. CHABOT. Mr. Speaker, I continue to reserve the balance of my 
time.
  Mrs. MURPHY of Florida. Mr. Speaker, I yield 2 minutes to the 
gentleman from California (Mr. McNerney).
  Mr. McNERNEY. Mr. Speaker, I thank the gentlewoman for yielding and 
for her work on this small business bill. I also thank Chairmen Smith 
and Chabot and Ranking Members Johnson and Velazquez for including my 
amendment to benefit minority-serving institutions in H.R. 2763. This 
is essential to retaining American leadership in innovation and small 
business development.
  The SBIR and STTR programs were both created to expand small business 
participation in the Federal research mission. One of the four 
objectives Congress had in mind in establishing the SBIR was to 
facilitate and increase the participation of minority and disadvantaged 
persons in technological innovation.
  My amendment requires that the participating Federal agencies in the 
SBIR and STTR programs conduct outreach to minority-serving 
institutions--MSIs--and Hispanic-serving institutions and faculty 
conducting research at these institutions so that participation rates 
in Federal research and development opportunities will increase.
  There are many great MSIs and researchers who work at these 
institutions across the country. For example, California State 
University Stanislaus, which has a campus in my district, is a 
Hispanic-serving institution and an MSI, and has been ranked one of the 
best colleges in our Nation. Our country depends on innovation of MSIs 
and the intellectual capital of its graduates.
  In the 21st century, American economic growth is going to be 
determined by the innovation and growth of technology and STEM-focused 
businesses. It is critical to the growth of our economy that minority-
serving institutions and minority-owned businesses are connected to 
this technological ecosystem.
  Mr. CHABOT. Mr. Speaker, I continue to reserve the balance of my 
time.
  Mrs. MURPHY of Florida. Mr. Speaker, I yield 2 minutes to the 
gentleman from New York (Mr. Tonko).
  Mr. TONKO. Mr. Speaker, I thank the gentlewoman for yielding.
  Reauthorizing the SBIR and STTR programs are critical to supporting 
our Nation's most forward-thinking entrepreneurs and innovators. I am 
relieved that we are preserving the critical parts of the programs and 
continuing to improve upon the programs themselves.
  These programs have proven to be one of the most successful Federal 
programs for technological innovation in United States history, 
delivering more than 70,000 patents and valuable innovations in 
agriculture, defense, energy, health sciences, homeland security, 
space, transportation, and other fields.
  Through Phase I and Phase II SBIR, countless jobs have been created 
in the capital region of New York. It is through programs such as SBIR 
that our region has developed the underpinnings of support for a boom 
in high technology innovation and economic development.
  One of many examples of this is Ecovative Design located within my 
congressional district in Green Island, New York, which has benefitted 
from the SBIR program over a number of years. These efforts will allow 
the company to continue its work on a replacement of engineered wood 
resins that will be economically competitive and nontoxic.
  The resin system represents cost and energy savings, and is capable 
of leveraging existing manufacturing equipment in production today. 
This funding will help them deliver on the promise of this innovative 
technology.
  Gavin McIntyre, cofounder and chief scientist at Ecovative said: 
``We're very excited to bring our new material technology to market and 
displace toxic formaldehyde-based resins. The SBIR/STTR program was 
fundamental to how Ecovative got its start and has enabled us to 
continue to take risks and develop game-changing technology.''
  While this bill is a positive step forward towards helping more small 
businesses, we must do more to help other small businesses develop 
these types of game-changing technologies.
  I recognize the value of research and I will fight to see more 
funding for all these agencies and, in turn, more funding for the SBIR 
and STTR programs.
  Mr. CHABOT. Mr. Speaker, I continue to reserve the balance of my 
time.
  Mrs. MURPHY of Florida. Mr. Speaker, I have no further speakers and I 
am prepared to close.
  Mr. Speaker, supporting our entrepreneurs and small businesses are a 
top priority for both sides of the aisle. Our bill will make it easier 
for small firms that receive SBIR and STTR awards to bring their 
products to market and achieve commercial success.
  The SBIR and STTR programs are also critical to our economy, as they 
support our Nation's job creators and ensure that our country continues 
to produce cutting-edge research and development. This ingenuity is 
what makes our country a global economic powerhouse.
  These programs, while successful, can be improved. The bill before us 
is a step in the right direction insofar as it will ensure that all 
Federal agencies are enhancing efforts to help more small businesses 
obtain SBIR and STTR funding and bring their innovative products to 
market.
  Therefore, I respectfully urge my colleagues to support this 
bipartisan bill.
  Mr. Speaker, I yield back the balance of my time.
  Mr. CHABOT. Mr. Speaker, I thank all those who spoke on this 
legislation, a very bipartisan, good legislation, here this afternoon 
on the House floor.
  In closing, whether it is new software system for tracking contract 
payments or a new medical device to help with cancer treatments, or a 
new piece of technology that literally saves lives on the battlefield, 
the SBIR and STTR programs have consistently delivered results to 
Federal agencies. They are worthy programs that do what they are 
supposed to do, but we can always do better. This legislation improves 
and modernizes these programs, and I ask that all of my colleagues 
support it.
  Mr. Speaker, I yield back the balance of my time.
  Mr. SMITH of Texas. Mr. Speaker, I support H.R. 2763, the Small 
Business Innovation Research and Small Business Technology Transfer 
Improvements Act of 2017.
  And I thank the gentleman from California, Mr. Knight, for 
introducing this important legislation. He serves on the two Committees 
that share jurisdiction over the SBIR and STTR programs: the Small 
Business Committee, chaired by my good friend, Mr. Chabot, and the 
Science, Space, and Technology Committee, which I chair.
  Mr. Knight took the lead on last year's timely reauthorization of the 
SBIR and STTR programs, and he is the sponsor of H.R. 2763, which makes 
a number of needed policy changes to increase the programs' efficiency 
and effectiveness.
  The SBIR program was signed into law by President Reagan in 1982, 
followed by the STTR program in 1992. These programs help spur economic 
innovation and competitiveness, and increase small business 
participation in federal research and development activity.
  SBIR and STTR award winners convert the results of taxpayer-supported 
pioneering research into products that are critical to our economic 
competitiveness and national security. Recent examples include parts 
for NASA's Mars Rover and a unique cockpit airbag system to protect 
Army helicopter pilots.
  Today 11 federal agencies provide funding to small businesses through 
SBIR, and five agencies provide funding through STTR--a total of nearly 
$3 billion this fiscal year. That's more than 66 times greater than the 
$45 million spent under the original program in 1983.

[[Page 15800]]

  Recipients of SBIR and STTR funding have boosted scientific and 
technological innovation and created hundreds of thousands of American 
jobs.
  Several large, international companies like Qualcomm, Sonicare and 
Symantec can trace their initial growth to when they were small 
businesses that received SBIR and STTR support.
  I want to call attention to two provisions of H.R. 2763 that were 
added by Members of the Science Committee.
  A provision authored by Mr. Hultgren requires participating federal 
agencies to give priority to SBIR and STTR projects that will 
strengthen American manufacturing innovation and increase manufacturing 
jobs in our country.
  A provision authored by Mr. Higgins requires federal agencies engaged 
in cyber security research to give priority to SBIR and STTR projects 
that will spur advances in cyber security to protect the American 
people from increasingly aggressive and malicious cyber-attacks.
  The legislation before us addresses a number of red flags raised by 
the Government Accountability Office (GAO) about lax administration of 
the SBIR and STTR programs.
  Several participating agencies do not produce accurate, timely 
information that Congress requires to evaluate program performance.
  The U.S. Small Business Administration has not submitted its 
required, comprehensive annual report to Congress since 2013.
  The last administration provided virtually no information to Congress 
and taxpayers about the SBIR and STTR programs.
  It's reassuring that SBA associate administrator Joseph Shepard 
promised during a joint hearing of our Committee and the Small Business 
Committee that annual reports will be submitted on time.
  Mr. Speaker, H.R. 2763 was unanimously approved by both the House 
Small Business Committee and the House Science Committee. I urge all of 
my colleagues to support it.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from Ohio (Mr. Chabot) that the House suspend the rules and 
pass the bill, H.R. 2763, as amended.
  The question was taken; and (two-thirds being in the affirmative) the 
rules were suspended and the bill, as amended, was passed.
  A motion to reconsider was laid on the table.

                          ____________________