[House Report 115-313]
[From the U.S. Government Publishing Office]


115th Congress  }                                       {   Rept. 115-313
                        HOUSE OF REPRESENTATIVES
 1st Session    }                                       {      Part 1

======================================================================



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

                                _______
                                

 September 14, 2017.--Committed to the Committee of the Whole House on 
          the State of the Union and and ordered to be printed

                                _______
                                

           Mr. Chabot, from the Committee on Small Business,
                        submitted the following

                              R E P O R T

                        [To accompany H.R. 2763]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Small Business, to whom was referred 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, having 
considered the same, report favorably thereon with an amendment 
and recommend that the bill as amended do pass.

                                CONTENTS

   I. Amendment.......................................................2
  II. Purpose and Bill Summary........................................7
 III. Need for Legislation............................................8
  IV. Hearings.......................................................13
   V. Committee Consideration........................................14
  VI. Committee Votes................................................15
 VII. Section-by Section of H.R. 2763, As Amended....................27
VIII. Congressional Budget Office Cost Estimate......................29
  IX. Unfunded Mandates..............................................31
   X. New Budget Authority, Entitlement Authority, and Tax Expenditur31
  XI. Oversight Findings.............................................32
 XII. Statement of Constitutional Authority..........................32
XIII. Congressional Accountability Act...............................32
 XIV. Federal Advisory Committee Act Statement.......................32
  XV. Statement of No Earmarks.......................................32
 XVI. Statement of Duplication of Federal Programs...................32
XVII. Disclosure of Directed Rule Makings............................32
XVIII.Performance Goals and Objectives...............................32

 XIX. Changes in Existing Law, Made by the Bill, As Reported.........33

                              I. Amendment

    The amendment is as follows:
    Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Small Business Innovation Research 
and Small Business Technology Transfer Improvements Act of 2017''.

SEC. 2. 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. 3. 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. 4. 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. 5. 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. 6. 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)) 
is amended by striking ``September 30, 2017'' and inserting ``September 
30, 2022''.

SEC. 7. INCREASED UNDERSERVED POPULATION PARTICIPATION WAIVER REMOVED.

    (a) In General.--Section 9(mm)(2) of the Small Business Act (15 
U.S.C. 638(mm)(2)) is amended to read as follows:
          ``(2) Outreach and Technical Assistance.--A Federal agency 
        participating in the program under this subsection shall use a 
        portion of the funds authorized for uses under paragraph (1) to 
        carry out the policy directive required under subsection 
        (j)(2)(F) and to increase the participation of States with 
        respect to which a low level of SBIR awards have historically 
        been awarded.''.
    (b) Conforming Amendment.--Section 9(mm)(6) of the Small Business 
Act (15 U.S.C. 638(mm)(6)) is amended by striking ``paragraph (2)(A) 
and any use of the waiver authority under paragraph (2)(B)'' and 
inserting ``paragraph (2)''.

SEC. 8. ANNUAL MEETING.

    (a) In General.--Section 9 of the Small Business Act (15 U.S.C. 
638) is amended by adding at the end the following new subsection:
    ``(tt) 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 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 this Act, is further 
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 ``; and''; and
          (3) by adding at the end the following new subparagraph:
                                ``(K) the annual meeting required under 
                                subsection (tt).''.

SEC. 9. 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 striking ``, including sole source awards,'' and inserting 
``as direct follow-on awards issued without further competition''.

SEC. 10. COMMERCIALIZATION ASSISTANCE PILOT PROGRAMS.

    Section 9 of the Small Business Act (15 U.S.C. 638), as amended by 
section 8, is further amended by adding at the end the following new 
subsection:
    ``(uu) 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 subsection--
                  ``(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 in vestors, 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 this subsection to carry 
                out further commercialization activities for research 
                conducted pursuant to an SBIR program.''.

SEC. 11. 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 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 ``; and''; 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) assist small business concerns 
                        participating in the STTR program, particularly 
                        in Phase III; and
                          ``(ii) coordinate with the appropriate 
                        contracting officer and the ap- propriate 
                        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).''.
    (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) 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 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. 12. 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:
                  ``(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 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:
                  ``(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 
                con- cern that has received multiple Phase II SBIR or 
                STTR awards for a fiscal year.''.

SEC. 13. 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).''.

                      II. Purpose and Bill Summary

    The purpose of H.R. 2763, the ``Small Business Innovation 
Research and Small Business Technology Transfer Improvements 
Act of 2017,'' is to amend the Small Business Act (the Act)\1\ 
to improve and modernize the Small Business Innovation Research 
(SBIR) and Small Business Technology Transfer (STTR) programs. 
The objectives of these programs include expansion of 
commercialization of federally-funded small business research 
and development (R&D), stimulation of technological innovation 
in the small business sector, and increased use of this 
community to meet the government's diverse research and 
development needs. H.R. 2763 strengthens the programs in five 
ways.
---------------------------------------------------------------------------
    \1\Originally, title II of the Act of July 30, 1953, c. 282, 67 
Stat. 232, was designated as the Small Business Act of 1953. A plethora 
of amendments in subsequent Congresses led to a rewrite in 1958. Pub. 
L. No. 85-536, Sec. 1, 72 Stat. 384 (1958). The Act is codified at 15 
U.S.C. Sec. Sec. 631-657s.
---------------------------------------------------------------------------
    First, the bill insists on agency accountability, including 
several hard reporting deadlines for participating agencies and 
for the Small Business Administration (SBA) to provide future 
Congresses with better information and a greater grasp of the 
programs' strengths and weaknesses. Second, the legislation 
clarifies congressional intent of the previous reauthorization 
to ensure that taxpayers reap the benefits of the SBIR and STTR 
programs by tying them to long term projects at the Department 
of Defense (DOD). Third, the legislation extends a popular 
pilot program included in the 2011 reauthorization that would 
allow all participating agencies to award a Phase II contract 
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 participating agencies to establish 
Commercialization Readiness Programs (CRPs). As a pilot program 
from the previous reauthorization, these CRPs have shown to 
provide much needed assistance to small firms nearing the 
completion of the process and have helped advance technology to 
the commercialization phase. Fifth, it extends the provision to 
allow participating agencies to utilize 3 percent of their 
allocation for administrative functions, increase waste, fraud, 
and abuse efforts, and conduct outreach in an effort to bring 
more companies into the SBIR and STTR world.

                       III. Need for Legislation

    H.R. 2763 was introduced by Congressman Steve Knight and 
Congresswoman Stephanie Murphy on May 30, 2017, after 
significant oversight of the SBIR and STTR programs by the 
Committee extending several years. Prior to explaining the 
necessary changes, a brief overview of each program will be 
provided.

                                A. SBIR

    Congressional support for the SBIR initiative was 
predicated upon the belief that, while technology-based 
companies under 500 employees tended to be highly innovative, 
and innovation being essential to the economic well-being of 
the United States, these businesses were underrepresented in 
the awarding of government R&D contracts. In order to increase 
participation of such entities in federal R&D efforts, Congress 
passed the Small Business Innovation Development Act in 
1982,\2\ which established the SBIR program. The purpose of the 
Act was to increase government funding of small businesses that 
conduct R&D with a particular focus on technology that has high 
commercial potential. Prior to the most recent reauthorization, 
the SBIR program had been reauthorized and extended several 
times. Each reauthorization made significant changes to the 
SBIR program, including increasing award sizes for inflation, 
codifying agency independence within a framework established by 
the SBA, increasing the percentages of the extramural research 
budgets that participating agencies must allocate for the 
program, and increasing the general focus of the program on the 
commercialization of the technologies developed.
---------------------------------------------------------------------------
    \2\Pub. L. No. 97-219, 96 Stat. 217 (1982) (codified at 18 U.S.C. 
Sec. 638).
---------------------------------------------------------------------------
    The objectives of the SBIR program include expanded 
commercialization of federally-funded R&D, stimulation of 
technological innovation in the small business sector, 
increased use of this community to meet the government's 
diverse R&D needs, and additional involvement of minority and 
disadvantaged individuals in the process.
    The program requires each federal agency with an extramural 
research budget of $100 million or more to allocate a small 
percentage of its extramural budget for awards to small firms 
for technology development. Currently, eleven agencies have 
research budgets large enough to require participation in the 
SBIR program: the Departments of Agriculture, Commerce, 
Defense, Education, Energy, Health and Human Services, Homeland 
Security, and Transportation; the Environmental Protection 
Agency; the National Aeronautics and Space Administration; and 
the National Science Foundation.
    The percentage allocation was set initially at 1.25 percent 
of participating agencies' extramural budgets. Congress has 
increased the allocation percentage several times. For FY17 and 
beyond, the percentage is 3.2 percent.
    Each agency's SBIR activity reflects that organization's 
management style. Individual departments select R&D interests, 
administer program operations, and control financial support. 
Funding may be disbursed in the form of contracts, grants, or 
cooperative agreements. Separate agencies issue solicitations 
for R&D at specific times and small businesses submit competing 
proposals to do the work.
    Congress delegated to the SBA the authority for creating 
broad policy and guidelines under which qualifying agencies 
operate their SBIR programs. The SBA monitors and reports to 
Congress on the conduct of the separate departmental SBIR 
activities. While the SBA provides direction and monitors the 
program, it does not provide funding for the awards, select the 
award winners, or distribute the award dollars.
    Criteria for eligibility in the SBIR program includes 
companies that are: independently owned and operated; not 
dominant in the field of research proposed; for-profit; the 
employer of 500 or fewer people; and at least 51 percent owned 
by one or more United States citizens or lawfully-admitted 
permanent resident aliens.
    The SBIR program is designed to award grants via a three-
phase process. In the first phase, awards up to $150,000 are 
provided to evaluate a concept's scientific or technical merit 
and feasibility. The project must be of interest to and 
coincide with the mission of the supporting organization. 
Projects that demonstrate potential after the initial endeavor 
may compete for Phase II awards of up to $1 million to perform 
the principal R&D. Phase III funding, directed at the 
commercialization of the product or process, is expected to be 
generated in the private sector. Federal dollars, but not SBIR 
funds, may be used if the government perceives that the final 
technology or technique will meet public needs.

                                B. STTR

    STTR is another important small business technology 
development program that also expands funding opportunities in 
the federal innovation R&D arena. Central to the program is 
expansion of the public/private sector partnership to include 
joint venture opportunities for small businesses and the 
nation's network of nonprofit research institutions. Much like 
SBIR, STTR is a highly competitive program that reserves a 
specific percentage of federal R&D funding for awards to small 
businesses and nonprofit research institution partners.
    The risk and expense of conducting sophisticated R&D 
efforts can be beyond the means of many small businesses, 
especially those which have just initiated their businesses. 
Conversely, nonprofit research laboratories are instrumental in 
developing high-tech innovations, but these organizations 
frequently confine themselves to theoretical, not practical, 
applications. But frequently, innovation is confined to the 
theoretical, not the practical. STTR combines the strengths of 
both entities by introducing entrepreneurial skills to high-
tech research efforts. The technologies and products are then 
transferred from the laboratory to the marketplace.
    Eligibility criteria for businesses in STTR mirror those of 
SBIR; they must be American-owned and independently operated; 
for-profit; and employ no more than 500 workers. The nonprofit 
research institution must also meet certain eligibility 
criteria, such as being located in the United States and 
meeting one of the three following definitions: it must be a 
nonprofit college or university; a domestic nonprofit research 
organization; or a federally-funded R&D center.\3\
---------------------------------------------------------------------------
    \3\Examples of each of these could be a major research university 
such as the University of Pittsburgh, a non-profit research 
organization such as the Cystic Fibrosis Foundation, or a federally 
funded R&D center such as the Los Alamos National Laboratory.
---------------------------------------------------------------------------
    Each year, five federal departments and agencies are 
required by STTR to reserve a portion (currently 0.45 percent) 
of their R&D funds for award to small business/nonprofit 
research institution partnerships. Those are the Department of 
Defense; the Department of Energy; the Department of Health and 
Human Services; the National Aeronautics and Space 
Administration; and the National Science Foundation.\4\ As with 
SBIR, SBA develops broad guidelines but the agencies designate 
R&D topics, accept proposals, and award funds.
---------------------------------------------------------------------------
    \4\Federal agencies with extramural R&D budgets that exceed $1 
billion are required to participate in the STTR program.
---------------------------------------------------------------------------
    Similar to the SBIR program, agencies make STTR awards 
based on small business/nonprofit research institution 
qualification, degree of innovation, and future market 
potential. Small businesses that receive awards then begin a 
three-phase program. Phase I and II awards are capped at the 
same levels as SBIR. The Phase III (commercialization) portion 
of the project is designed to encourage private sector 
investment or non-STTR or SBIR federal agency funding, which is 
also similar to SBIR.

                 C. INDEPENDENT REVIEW OF SBIR AND STTR

    In 2007, after more than three years of research and 
analysis, the National Research Council (NRC) of the National 
Academies of Science (NAS) released its assessment of the SBIR 
program as administered by the five federal agencies (DOD, 
National Institutes of Health, the National Aeronautics and 
Space Administration, the Department of Energy, and the 
National Science Foundation) that together made up 
approximately 96 percent of SBIR program expenditures at that 
time. The core finding of the study is that the SBIR program is 
sound in concept and effective in practice.\5\ In support of 
the report's core finding, the NRC concluded that the SBIR 
program is: (1) stimulating technological innovations; (2) 
increasing private sector commercialization of research; (3) 
using small businesses to meet federal research and development 
needs; and (4) providing widely distributed support for 
innovation activity.\6\
---------------------------------------------------------------------------
    \5\NRC, National Academies of Science, An Assessment of the Small 
Business Innovation Research Program 3 (2007).
    \6\Id. at 3-6.
---------------------------------------------------------------------------
    To expand on this research and to provide greater 
information to policymakers in the future, Congress directed\7\ 
the NRC to continue its examination of the SBIR program as well 
as expand its review to include the STTR program. By and large, 
the NRC found that the SBIR program is meeting most of its 
statutory objectives. For instance, the NRC points out that 
SBIR projects at the DOD commercialize at a substantial rate, 
while the percentage of Phase II projects reporting sales 
continues to be greater than 45 percent.\8\ The NRC also found 
that the SBIR program at the National Institutes of Health is 
having a positive overall impact and is meeting three of the 
four legislative objectives of the program: stimulating 
technical innovation, using small businesses to meet federal 
R&D needs, and increasing private-sector commercialization of 
innovations derived from federal R&D.\9\ Finally, the NRC found 
that STTR is meeting its statutory objective of fostering 
cooperation between small business concerns and research 
institutions, and does so in some respects to an extent that 
SBIR does not.\10\
---------------------------------------------------------------------------
    \7\Pub. L. No. 112-81, Div. E., 125 Stat. 1850, 1822-62 (2011). The 
short title of Division E is the SBIR/STTR Reauthorization Act of 2011.
    \8\NRC, NAS, SBIR at the Department of Defense 201 (2014).
    \9\NRC, NAS, SBIR/STTR at the National Institutes of Health 234 
(2015).
    \10\NRC, NAS, STTR: An Assessment of the Small Business Technology 
Transfer Program 91 (2016).
---------------------------------------------------------------------------
    As a result of Public Law 112-81, the Government 
Accountability Office (GAO) conducted several investigations 
constituting a comprehensive body of work to assess, among 
other things, participating agency management, development, and 
transitioning SBIR/STTR and STTR technologies across their 
science and technology enterprises. By and large, the reports 
pointed to a strong and vibrant program, with a few caveats. 
For example, the GAO found that the SBA's ability to fully 
determine compliance with spending requirements for the SBIR 
and STTR programs is limited because most agencies submitted 
incorrect data; GAO recommended that SBA should update its 
guidance to require that adequate information be provided.\11\
---------------------------------------------------------------------------
    \11\GAO, Small Business Research Programs: Challenges Remain in 
Meeting Spending and Reporting Requirements (GAO-15-358) (Apr. 2015).
---------------------------------------------------------------------------
    In the conference report to the National Defense 
Authorization Act (NDAA) for Fiscal Year 2013, the conferees 
directed the GAO to conduct a study to assess the DOD's 
transition of technologies developed by small businesses 
through the SBIR program, including: (1) an analysis of 
technologies developed under the SBIR program and the extent to 
which such technologies were incorporated into major weapon 
systems or major automated information systems; (2) an analysis 
of established or ad hoc procedures to allow program offices to 
monitor, evaluate, and transition small business-developed 
technologies into their programs; and (3) additional actions 
that may be needed to improve DOD and the military services' 
processes for monitoring, evaluating, and transitioning small 
business-developed technologies for use in major weapon systems 
or major automated information systems (including any 
appropriate data collection and measures of effectiveness and 
performance).\12\
---------------------------------------------------------------------------
    \12\H.R. Conf. Rep. No. 112-705, at 942-943 (2012).
---------------------------------------------------------------------------
    GAO released the report\13\ required by the FY 2013 NDAA on 
December 20, 2013. GAO found that some common and branch-
specific transition initiatives, such as the Commercialization 
Readiness Program and the Navy Transition Assistance Program, 
help to improve small businesses' abilities to transition their 
products to Phase III.\14\ While some programs are of 
assistance, GAO recommended that DOD must improve tracking and 
reporting of technology transition outcomes for SBIR projects 
in order to improve transition rates. Specifically, the GAO 
suggested that DOD: 1) establish a common definition of 
technology transition for all SBIR projects to support annual 
reporting requirements; 2) develop a plan to meet the new 
technology reporting requirements that will improve the 
completeness, quality, and reliability of SBIR transition data; 
and 3) report to Congress on the Department's plan for meeting 
the new SBIR reporting requirements, including specific steps 
for improving the technology transition data.\15\
---------------------------------------------------------------------------
    \13\GAO, Small Business Innovation Research: DOD'S Program Supports 
Weapon Systems, but Lacks Comprehensive Data on Technology Transition 
Outcomes (GAO-14-96) (2013).
    \14\Id. at 6-7.
    \15\Id. at 14-15.
---------------------------------------------------------------------------

                          D. NECESSARY REFORMS

    The SBIR and STTR programs are currently authorized through 
September 30, 2022.\16\ However, several popular pilot programs 
and initiatives that were initiated in Public Law 112-81 expire 
on September 30, 2017. Given the popularity of these programs 
and the desire to provide certainty for the participating 
agencies and the small firms who participate in the programs, 
the House Committees on Small Business and Science, Space and 
Technology have expressed interest in extending some of these 
pilot programs and other popular provisions to coincide with 
the September 30, 2022 authorization date.
---------------------------------------------------------------------------
    \16\Pub. L. No. 114-328, Sec. 1834 (2016).
---------------------------------------------------------------------------
    Each year, participating federal agencies are required to 
submit to the SBA data on various aspects of their SBIR and 
STTR programs, such as: reporting their total SBIR and STTR 
allocation based on appropriated extramural research dollars; 
the number and type of awards given, specific outreach 
conducted to increase participation by underrepresented states 
and populations; waste, fraud, and abuse efforts and, copious 
other bits of information that allows the SBA, Congress, and 
the public analyze the information. The SBA is then tasked with 
coordinating these data submissions and compiling one annual 
report that is published and provides a glimpse into the 
programs' strengths and weaknesses. Unfortunately, the SBA is 
currently 3 years in arrears in producing these reports. 
Therefore, H.R. 2763 includes provisions that require agencies 
to submit their annual reports to the SBA no later than March 
30 of the following year. The SBA is additionally required to 
produce their annual report for the previous year and submit it 
to Congress no later than December 31 of each year. These clear 
line standards replace more nebulous language in current statue 
and provides agencies with hard deadlines that can be easily 
noticed by Congress and industry if they are missed.
    The legislation also extends three popular pilot programs 
established by Public Law 112-81. First, it extends through 
fiscal year 2022 the authority for participating agencies to 
utilize 3 percent of the SBIR program for costs relating to 
administrative, oversight, and contract processing activities 
for SBIR programs, commercialization initiatives, technical 
assistance initiatives, and outreach initiatives to raise 
awareness of, and increase participation in the SBIR and STTR 
programs. Recognizing that that the SBIR program is utilized by 
11 different agencies with different needs, the Committee 
supports the flexibility provided for the three percent program 
and not further restricting how these funds may be spent.
    The second pilot program that has been extended through 
fiscal year 2022 is the initiative that allows participating 
agencies to offer a straight to Phase II option for small firms 
that have established they have completed the work 
traditionally done in Phase I of the program. One of the 
guiding principles the Committee has maintained through this 
process is the need for the SBIR and STTR programs to be 
focused on the commercialization phase of the process. This is 
where small business often create the most jobs, generate the 
most revenue, and contribute more to the economy, providing 
taxpayers the biggest bang for their taxpayer buck. Moving 
companies to Phase III of the process in a shortened time frame 
(where appropriate) reinforces this tenant.
    Maintaining the focus on the commercialization aspect of 
the SBIR and STTR programs, the legislation also makes the 
Commercialization Readiness Program at all civilian agencies a 
permanent part of the SBIR program. Under this program, 
agencies may use up to 10 percent of their program 
authorization to grant post-phase II awards up to $3 million to 
support advanced development of small business technologies. 
This initiative helps especially promising technology bridge 
the so-called ``valley of death'' that innovations often face 
between completion of a project but before generating revenue 
from that project. With a substantial investment made by 
taxpayers already at this point in the process, the initiative 
helps to ensure promising technology with commercial appeal is 
not left on the lab floor due to lack of funding.
    Finally, H.R. 2763 strengthens and clarifies congressional 
intent of Public Law No. 112-81 by statutorily requiring the 
Department of Defense to establish goals for transitioning 
Phase III technologies in subcontracting plans for contracts of 
$100 million or more. The provision also statutorily requires 
the Secretary of Defense to set a goal to increase the number 
of Phase II contracts that lead to technology insertion into 
programs or record or fielded systems and to use incentives to 
encourage agency program managers and prime contractors to meet 
that goal.

                              IV. Hearings

    In the 115th Congress, the Committee held one hearing that 
looked at the issues covered by H.R. 2763. On May 4, 2017, the 
Committee on Small Business Subcommittee on Contracting and 
Workforce and the Committee on Science, Space, and Technology 
Subcommittee on Research and Technology met for a joint hearing 
titled, ``Improving the Small Business Innovation Research and 
Small Business Technology Transfer Programs.'' Since the 
Committee on Small Business and the Committee on Science, 
Space, and Technology were interested in collaborating on 
legislation making minor adjustments and improvements to the 
programs in 2017, the joint hearing was carried out. Witnesses 
included SBA officials, GAO officials, and several small firms 
who participate in the SBIR and STTR programs and the topics of 
discussion included the expansion of commercialization of 
federally-funded small business research and development, 
stimulation of technological innovation in the small business 
sector, and increased use of this community to meet the 
government's diverse research and development needs. Witnesses 
also discussed potential improvements to help stimulate 
commercialization rates, modify reporting requirements that 
improve data collection, and ensure agencies are utilizing all 
of the tools available to help transition SBIR and STTR 
technology into larger contracts.

                       V. Committee Consideration

    The Committee on Small Business met in open session, with a 
quorum being present, on June 15, 2017 and ordered H.R. 2763 
reported, as amended, to the House. During the markup, 5 
amendments were offered. The amendments addressed below are in 
the order in which they were considered at the markup.
    An Amendment in the Nature of a Substitute (ANS was offered 
by Chairman Chabot (R-OH) and Ranking Member Velazquez (D-NY). 
The ANS did not change anything in the underlying bill; 
however, it did add three sections at the end. The first 
requires participating agencies to use part of their SBIR 
allocation to conduct outreach to underrepresented states and 
populations by removing the waiver of this requirement from the 
statute. Under current law, the Administrator may waive this 
outreach requirement should agencies certify that substantially 
similar outreach is being conducted elsewhere in the program. 
This provision deletes this waiver mandating that agencies 
utilize a portion of their 3 percent administrative funding for 
such outreach purposes. The second provision of the ANS 
requires that the Administrator of the SBA (or a designee) and 
the head of each participating agency (or a designee) meet 
annually to discuss methods: to improve data collection; to 
improve reporting of data; to make the application process more 
streamlined; and to increase participation in the programs. The 
provision also requires that the SBA submit a report to the 
Committees of jurisdiction in both the House and Senate about 
the topics discussed and resulting actions following the 
discussion. Finally, the ANS clarifies Congressional intent 
from Public Law No. 112-81 that Phase II awards have already 
met all compliance for competitive procedures and may be direct 
follow-on awards without further competition. Unanimous consent 
was given by the Committee to have the text of the ANS be the 
base text of H.R. 2763 for purposes of amendments.
    Amendment Number One was offered by Mr. Lawson (D-FL). This 
amendment requires the heads of all participating agencies to 
implement a Commercialization Assistance Pilot Program, if not 
currently operating such a similar program, within one year of 
passage of the bill. The amendment passed by voice vote at 
10:32 am.
    Amendment Number Two was offered by Ms. Murphy (D-FL). The 
amendment seeks to assist small business concerns in 
commercializing their technology when obtaining government 
contracts by directly incorporating acquisition personnel into 
the SBIR and STTR programs, where appropriate. The amendment 
passed by voice vote at 10:36 am.
    Amendment Number Three was offered by Mr. Schneider (D-IL) 
and Mr. Fitzpatrick (R-PA). The amendment will allow for 
increased flexibility for use of funding within Phase I and II 
of the SBIR and STTR programs. The amendment expands the list 
of allowable expenses to include product sales, intellectual 
property protections, market research, market validation and 
development of regulatory plans and manufacturing plans. It 
also increases the funding the SBIR and STTR Phase I and II 
awardees may use for startup-related commercialization 
activities. The Amendment passed by voice vote at 10:42 am.
    Amendment Number Four was offered by Mr. Blum (R-IA) and 
Mr. Espaillat (D-NY). This amendment stipulates that each 
agency participating in the SBIR and STTR program is required 
to submit their annual SBIR and STTR report to Congress as well 
as to the SBA. Additionally, the amendment stipulates that the 
Department of Defense report to Congress must include any goals 
and inclusion incentives they devise to boost SBIR and STTR-
developed technologies into larger programs of record. The 
amendment passed by voice vote at 10:49 am.

                          VI. Committee Votes

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives requires the Committee to list the recorded 
votes on the motion to report legislation and amendments 
thereto. The Committee voted 19-0 to report H.R. 2763, as 
amended, to the House at 10:52 am.


        AMENDMENT TO H.R. 2763 OFFERED BY MR. LAWSON OF FLORIDA

  At the end of the bill, add the following new section:

SEC. 7. COMMERCIALIZATION ASSISTANCE PILOT PROGRAM.

  Section 9 of the Small Business Act (15 U.S.C. 638) is 
amended by adding at the end the following new subsection:
  ``(tt) 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 subsection--
                  ``(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 this 
                subsection to carry out further 
                commercialization activities for research 
                conducted pursuant to an SBIR program.''.
                              ----------                              


        AMENDMENT TO H.R. 2763 OFFERED BY MRS. MURPHY OF FLORIDA

  At the end of the bill, add the following new section:

SEC. 7. 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:
          ``(13) 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 assist small business concerns participating in the 
SBIR program with researching solicitations for the award of a 
Federal contract (particularly with the Federal agency that has 
a funding agreement with the concern) and to provide technical 
assistance to such concerns to submit a bid for an award of a 
Federal contract. The procurement center representatives shall 
coordinate with the appropriate senior procurement executive 
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 ``; and''; 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) assist small business concerns 
                        participating in the STTR program with 
                        researching applicable solicitations 
                        for the award of a Federal contract 
                        (particularly with the Federal agency 
                        that has a funding agreement with the 
                        concern);
                          ``(ii) provide technical assistance 
                        to such concerns to submit a bid for an 
                        award of a Federal contract; and
                          ``(iii) coordinate with the 
                        appropriate senior procurement 
                        executive 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).''.
  (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) 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 to market the research developed by 
                such concern under such SBIR or STTR program;
                  ``(K) 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 the appropriate senior 
                procurement executive 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 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.''.
                              ----------                              


  AMENDMENT TO H.R. 2763 OFFERED BY MR. SCHNEIDER OF ILLINOIS AND MR. 
                      FITZPATRICK OF PENNSYLVANIA

  At the end of the bill, add the following new section:

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:
                  ``(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 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:
                  ``(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.''.
                              ----------                              


AMENDMENT TO H.R. 2763 OFFERED BY MR. BLUM OF IOWA, FOR HIMSELF AND MR. 
                         ESPAILLAT OF NEW YORK

  Subsection
    (b) of section 2 is amended to read as follows:
  (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''.
  At the end of the bill, add the following new section:

SEC. 7. 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)(3), 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).''.

            VII. Section-by-Section of H.R. 2763, As Amended


Section 1. Short title

    This section designates the bill as the ``Small Business 
Innovation Research and Small Business Technology Transfer 
Improvements Act of 2017.''

Section 2. Reporting requirements

    This section requires the Small Business Administration 
(SBA) to file its annual report on the SBIR and STTR programs 
to Congress by December 31 of each calendar year. The section 
also requires each of the participating agencies to submit all 
of the required reports and information to the SBA by March 31 
of each year.

Section. 3. Requirements for insertion incentives

    This section clarifies Congressional intent from the 2011 
reauthorization by ensuring the Department of Defense 
establishes goals and insertion incentives for the transition 
of Phase III technology in subcontracting plans for any 
contracts with a value of $100 million or more.

Section. 4. SBIR Phase flexibility

    This section extends through FY2022 the pilot program 
instituted at in the 2011 reauthorization (Public Law No. 112-
81, 5106) that allows three agencies (Department of Defense, 
the National Institutes of Health, and the Department of 
Education) to award a Phase II contract if the agency finds 
that the small business concern has already completed work 
typically done during Phase I. This section also extends this 
flexibility to all participating agencies.

Section 5. Establishing the civilian agency Commercialization Readiness 
        Program

    This section makes permanent a pilot program established in 
the 2011 reauthorization (Public Law No. 112-81, 5123) that 
authorizes all civilian agencies to create Commercialization 
Readiness Programs (CRPs) by allocating no more than 10 percent 
of their program authorization to maximize advanced development 
of small business technologies which are facing high 
manufacturing or regulatory costs.

Section 6. Extension of the deadline for assistance for administrative, 
        oversight, and contract processing costs

    This section extends through FY2022 the pilot program 
established in the 2011 reauthorization (Public Law No. 112-
815141) authorizing agencies to utilize up to three percent of 
the allocations under the SBIR program for various 
administrative functions associated with operation of the SBIR 
and STTR programs.

Section 7. Increased underserved population participation waiver 
        removed

    This section requires participating agencies to use part of 
their SBIR allocation to conduct outreach to underrepresented 
states and populations by removing the waiver of this 
requirement from the statute.

Section 8. Annual meeting

    This section requires an annual summit of participating 
agencies so they will be able to discuss best practices to 
improve their ability to collect data and streamline processes 
of the SBIR and STTR programs.

Section 9. Compliance of Phase III awards with competitive procedures

    This section ensures that Phase III awards are deemed to be 
in compliance with competitive procedures as they are given as 
follow-on awards.

Section 10. Commercialization Assistance Pilot Programs

    This section requires the heads of all participating 
agencies to implement a Commercialization Assistance Pilot 
Program, if not currently operating such a similar program, 
within one year of passage of the bill.

Section 11. Procurement center representatives and other acquisition 
        personnel in the SBIR and STTR programs

    The section seeks to assist small business concerns in 
commercializing their technology when obtaining government 
contracts by directly incorporating acquisition personnel into 
the SBIR and STTR programs, where appropriate.

Section 12. Improvements to technical and business assistance in the 
        SBIR and STTR programs

    This section allows for increased flexibility for use of 
funding within Phase I and II of the SBIR and STTR programs. 
The amendment expands the list of allowable expenses to include 
product sales, intellectual property protections, market 
research, market validation and development of regulatory plans 
and manufacturing plans. It also increases the funding the SBIR 
and STTR Phase I and II awardees may use for startup-related 
commercialization activities.

Section 13. Additional SBIR and STTR technology insertion reporting 
        requirement

    This section, within 120 days after enactment, that the 
Department of Defense report to Congress any goals and 
inclusion incentives they devise to boost SBIR and STTR-
developed technologies into larger programs of record.

            VIII. Congressional Budget Office Cost Estimate

    The Congressional Budget Office submitted a cost estimate 
for H.R. 2763 that stated enacting the legislation would not 
increase net direct spending or on-budget deficits in any of 
the four consecutive periods beginning in 2028.
                                     U.S. Congress,
                               Congressional Budget Office,
                                 Washington, DC, September 7, 2017.
Hon. Steve Chabot,
Chairman, Committee on Small Business,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 2763, the Small 
Business Innovation Research and Small Business Technology 
Transfer Improvements Act of 2017.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CB staff contact is Stephen 
Rabent.
            Sincerely,
                                                Keith Hall.
    Enclosure.

H.R. 2763--Small Business Innovation Research and Small Business 
        Technology Transfer Improvements Act of 2017

    H.R. 2763 would make several changes to the operations of 
the Small Business Innovation Research (SBIR) and Small 
Business Technology Transfer (STTR) programs. Based on an 
analysis of information from the Small Business Administration 
(SBA) and participating agencies, CBO estimates that 
implementing the bill would cost $24 million over the 2018-2022 
period; such spending would be subject to the availability of 
appropriated funds.
    Under current law, the SBIR program requires federal 
agencies with extramural budgets for research and development 
(R&D) that exceed $100 million per year to set aside 3.2 
percent of that budget for contracts with small businesses. 
(Extramural budgets consist of expenditures for activities not 
performed by agency employees.) Likewise, the STTR program 
requires federal agencies with extramural budgets for R&D that 
exceed $1 billion per year to set aside 0.45 percent of that 
budget for cooperative research between small businesses and a 
federal laboratory or nonprofit research institution. Eleven 
agencies currently participate in at least one of those 
programs. Under current law, a pilot program authorizes 
participating agencies to use up to 3 percent of the R&D 
amounts set aside for the SBIR program to cover the costs of 
certain authorized activities in administrating the SBIR and 
STTR programs rather than paying those costs from general 
operating funds. That authorization will expire at the end of 
fiscal year 2017.
    H.R. 2763 would extend that pilot program through fiscal 
year 2022. Because the pilot program would not affect the 
underlying costs of administering the SBIR or STIR programs, 
CBO estimates that extending the pilot program would have no 
budgetary effect.
    H.R. 2763 also would require participating agencies to 
create a new pilot program to allocate up to 5 percent of their 
SBIR funding for awards to move technologies toward 
commercialization if the SBA determines that agencies do not 
already operate a similar program. The Government 
Accountability Office (GAO) would be required to develop a 
report on the results of the program after three years and 
recommendations for improvements. Based on an analysis of 
information from the SBA and several participating agencies, 
CBO estimates that implementing the provisions would cost $5 
million over the 2018-2022 period for agencies to develop a new 
pilot program or to adapt current programs to comply with 
requirements of the bill; such spending would be subject to the 
availability of appropriated funds. Based on the costs of 
similar reports, CBO estimates that any increased costs to GAO 
to create the report would be insignificant.
    Finally, H.R. 2763 would expand the duties of procurement 
center representatives at the SBA and Offices of Small and 
Disadvantaged Business Utilization (OSDBU) at participating 
agencies to include providing technical assistance to small 
businesses participating in SBIR and STTR programs. Based on an 
analysis of information from the SBA and participating 
agencies, CBO estimates that implementing those changes would 
cost $19 million over the 2018-2022 period for participating 
agencies to each hire three additional employees to assist 
small businesses in the SBIR and STTR programs and to 
coordinate with the SBA; such spending also would be subject to 
appropriation of the necessary amounts.
    Pay-as-you-go procedures do not apply to this legislation 
because it would not affect direct spending or revenues.
    CBO estimates that enacting H.R. 2763 would not increase 
net direct spending or on-budget deficits in any of the four 
consecutive 10-year periods beginning in 2028.
    H.R. 2763 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act and 
would not affect the budgets of state, local, or tribal 
governments
    On August 17, 2017, CBO transmitted a cost estimate for 
H.R. 2763, the Small Business Innovation Research and Small 
Business Technology Transfer Improvements Act of 2017, as 
ordered reported by the House Committee on Science, Space and 
Technology on June 22, 2017. That version of the bill did not 
include provisions that directed agencies participating in the 
SBIR program to develop a new pilot program, expanded the 
duties of employees at the SBA and at Offices of Small and 
Disadvantaged Business Utilization, and required agencies and 
the SBA to meet annually and for the SBA to develop an annual 
report. That version of the bill also contained a provision 
that required agencies participating in the STTR program to 
develop a new grant program which is not in this version. CBO's 
cost estimates for the two versions of the bill reflect those 
differences.
    The CBO staff contact for this estimate is Stephen Rabent. 
The estimate was approved by Theresa Gullo, Assistant Director 
for Budget Analysis.

                         IX. Unfunded Mandates

    H.R. 2763 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act, Public 
Law No. 104-4, and would impose no costs on state, local, or 
tribal governments.

  X. New Budget Authority, Entitlement Authority, and Tax Expenditures

    In compliance with clause 3(c)(2) of rule XIII of the Rules 
of the House, the Committee provides the following opinion and 
estimate with respect to new budget authority, entitlement 
authority, and tax expenditures. While the Committee has not 
received an estimate of new budget authority contained in the 
cost estimate prepared by the Director of the Congressional 
Budget Office pursuant to 402 of the Congressional Budget Act 
of 1974, the Committee does not believe that there will be any 
additional costs attributable to this legislation. H.R. 2763 
does not direct new spending, but instead reallocates funding 
independently authorized and appropriated.

                         XI. Oversight Findings

    In accordance with clause 2(b)(1) of Rule X of the Rules of 
the House, the oversight findings and recommendations of the 
Committee on Small Business with respect to the subject matter 
contained in H.R. 2763 are incorporated into the descriptive 
portions of this report.

               XII. Statement of Constitutional Authority

    Pursuant to clause 3(d)(1) of Rule XIII of the Rules of the 
House, the Committee finds that the authority for this 
legislation in Art. I, 8, cl. 2; Art. I, 8, cl. 7; and, Art. I, 
8 cl. 12.

                 XIII. Congressional Accountability Act

    H.R. 2763 does not relate to the terms and conditions of 
employment or access to public services or accommodations 
within the meaning of 102(b)(3) of Public Law No. 104-1.

             XIV. Federal Advisory Committee Act Statement

    H.R. 2763 does not establish or authorize the establishment 
of any new advisory committees as that term is defined in the 
Federal Advisory Committee Act, 5 U.S.C. App. 2.

                      XV. Statement of No Earmarks

    Pursuant to clause 9 of rule XXI, H.R. 2763 does not 
contain any congressional earmarks, limited tax benefits, or 
limited tariff benefits as defined in subsections (d), e, or 
(f) of clause 9 of rule XXI of the Rules of the House.

           XVI. Statement of Duplication of Federal Programs

    Pursuant to clause 3(c) of the Rule XIII of the Rules of 
the House, no provision of H.R. 2763 establishes or 
reauthorizes a program of the federal government known to be 
duplicative of another federal program, a program that was 
included in any report from the United States Government 
Accountability Office pursuant to 21 of Pub. L. No. 111-139, or 
a program related to a program identified in the most recent 
catalog of federal domestic assistance.

               XVII. Disclosure of Directed Rule Makings

    Pursuant to clause 3(c) of Rule XIII of the Rules of the 
House, H.R. 2763 does not direct any rulemaking.

                XVIII. Performance Goals and Objectives

    Pursuant to clause 3(c)(4) of rule XIII of the Rules of the 
House, the Committee establishes the following performance-
related goals and objectives for this legislation:
          H.R. 2763 includes a number of provisions designed to 
        improve the opportunities for small business concerns 
        to compete for federal research and development 
        contracts and grants pursuant to the Small Business Act 
        and to improve agency compliance with the Small 
        Business Act.

                      XIX. Changes in Existing Law


         Changes in Existing Law Made by the Bill, as Reported

    In compliance with clause e of rule XIII of the Rules of 
the House, changes in existing law made by the bill, as 
reported, as shown as follows existing law proposed to be 
omitted is enclosed in black brackets, new matter is printed in 
italic, and existing law in which no change is proposed is 
shown in roman:

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, and existing law in which no 
change is proposed is shown in roman):

SMALL BUSINESS ACT

           *       *       *       *       *       *       *


  Sec. 9. (a) Research and development are major factors in the 
growth and progress of industry and the national economy. The 
expense of carrying on research and development programs is 
beyond the means of many small-business concerns, and such 
concerns are handicapped in obtaining the benefits of research 
and development programs conducted at Government expense. These 
small-business concerns are thereby placed at a competitive 
disadvantage. This weakens the competitive free enterprise 
system and prevents the orderly development of the national 
economy. It is the policy of the Congress that assistance be 
given to small-business concerns to enable them to undertake 
and to obtain the benefits of research and development in order 
to maintain and strengthen the competitive free enterprise 
system and the national economy.
  (b) It shall be the duty of the Administration, and it is 
hereby empowered--
          (1) to assist small-business concerns to obtain 
        Government contracts for research and development;
          (2) to assist small-business concerns to obtain the 
        benefits of research and development performed under 
        Government contracts or at Government expense;
          (3) to provide technical assistance to small-business 
        concerns to accomplish the purposes of this section; 
        [and]
          (4) to develop and maintain a source file and an 
        information program to assure each qualified and 
        interested small business concern the opportunity to 
        participate in Federal agency small business innovation 
        research programs and small business technology 
        transfer programs;
          (5) to coordinate with participating agencies a 
        schedule for release of SBIR and STTR solicitations, 
        and to prepare a master release schedule so as to 
        maximize small business' opportunities to respond to 
        solicitations;
          (6) to independently survey and monitor the operation 
        of SBIR and STTR programs within participating Federal 
        agencies;
          (7) [to report not less than annually] to submit a 
        report not later than December 31 of each year to the 
        Committee on Small Business of the Senate, and to the 
        Committee on Science and the Committee on Small 
        Business of the House of Representatives, on the SBIR 
        and STTR programs of the Federal agencies and the 
        Administration's information and monitoring efforts 
        related to the SBIR and STTR programs, including--
                  (A) the data on output and outcomes collected 
                pursuant to subsections (g)(8) and (o)(9);
                  (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, hedge fund, or private equity 
                firm investment (including those majority-owned 
                by multiple venture capital operating 
                companies, hedge funds, or private equity 
                firms) 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 
                or by socially 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 
                (dd) for firms owned in majority part by 
                venture capital operating companies, hedge 
                funds, or private equity firms 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;
                  (F) an accounting of funds, initiatives, and 
                outcomes under the Commercialization Readiness 
                Program; and
                  (G) a descriptionof the extent to which 
                Federal agencies are providing in a timely 
                manner information needed to maintain the 
                database described in subsection (k);
          (8) to provide for and fully implement the tenets of 
        Executive Order No. 13329 (Encouraging Innovation in 
        Manufacturing); [and]
          (9) 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[.]; and
          (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.
  (c) The Administration is authorized to consult and cooperate 
with all Government agencies and to make studies and 
recommendations to such agencies, and such agencies are 
authorized and directed to cooperate with the Administration in 
order to carry out and to accomplish the purposes of this 
section.
  (d)(1) The Administrator is authorized to consult with 
representatives of small-business concerns with a view to 
assisting and encouraging such firms to undertake joint 
programs for research and development carried out through such 
corporate or other mechanism as may be most appropriate for the 
purpose. Such joint programs may, among other things, include 
the following purposes:
          (A) to construct, acquire, or establish laboratories 
        and other facilities for the conduct of research;
          (B) to undertake and utilize applied research;
          (C) to collect research information related to a 
        particular industry and disseminate it to participating 
        members;
          (D) to conduct applied research on a protected, 
        proprietary, and contractual basis with member or 
        nonmember firms, Government agencies, and others;
          (E) to prosecute applications for patents and render 
        patent services for participating members; and
          (F) to negotiate and grant licenses under patents 
        held under the point program, and to establish 
        corporations designed to exploit particular patents 
        obtained by it.
  (2) The Administrator may, after consultation with the 
Attorney General and the Chairman of the Federal Trade 
Commission, and with the prior written approval of the Attorney 
General, approve any agreement between small-business firms 
providing for a joint program of research and development, if 
the Administrator finds that the joint program proposed will 
maintain and strengthen the free enterprise system and the 
economy of the Nation. The Administrator or the Attorney 
General may at any time withdraw his approval of the agreement 
and the joint program of research and development covered 
thereby, if he finds that the agreement or the joint program 
carried on under it is no longer in the best interests of the 
competitive free enterprise system and the economy of the 
Nation. A copy of the statement of any such finding and 
approval intended to be within the coverage of this subsection, 
and a copy of any modification or withdrawal of approval, shall 
be published in the Federal Register. The authority conferred 
by this subsection on the Administrator shall not be delegated 
by him.
  (3) No act or omission to act pursuant to and within the 
scope of any joint program for research and development, under 
an agreement approved by the Administrator under this 
subsection, shall be construed to be within the prohibitions of 
the antitrust laws or the Federal Trade Commission Act. Upon 
publication in the Federal Register of the notice of withdrawal 
of his approval of the agreement granted under this subsection, 
either by the Administrator or by the Attorney General, the 
provisions of this subsection shall not apply to any subsequent 
act or omission to act by reason of such agreement or approval.
  (e) For the purpose of this section--
          (1) the term ``extramural budget'' means the sum of 
        the total obligations minus amounts obligated for such 
        activities by employees of the agency in or through 
        Government-owned, Government-operated facilities, 
        except that for the Agency for International 
        Development it shall not include amounts obligated 
        solely for general institutional support of 
        international research centers or for grants to foreign 
        countries, and except that for the Department of Energy 
        it shall not include amounts obligated for atomic 
        energy defense programs for weapons and weapons-related 
        activities or for naval reactor programs;
          (2) the term ``Federal agency'' means an executive 
        agency as defined in section 105 of title 5, United 
        States Code, or a military department as defined in 
        section 102 of such title, except that it does not 
        include any agency within the Intelligence Community 
        (as the term is defined in section 3.4(f) of Executive 
        Order 12333 or its successor orders);
          (3) the term ``funding agreement'' means any 
        contract, grant, or cooperative agreement entered into 
        between any Federal agency and any small business for 
        the performance of experimental, developmental, or 
        research work funded in whole or in part by the Federal 
        Government;
          (4) the term ``Small Business Innovation Research 
        Program'' or ``SBIR'' means a program under which a 
        portion of a Federal agency's research or research and 
        development effort is reserved for award to small 
        business concerns through a uniform process having--
                  (A) a first phase for determining, insofar as 
                possible, the scientific and technical merit 
                and feasibility of ideas that appear to have 
                commercial potential, as described in 
                subparagraph (B), submitted pursuant to SBIR 
                program solicitations;
                  (B) a second phase, which shall not include 
                any invitation, pre-screening, or pre-selection 
                process for eligibility for Phase II, that will 
                further develop proposals which meet particular 
                program needs, in which awards shall be made 
                based on the scientific and technical merit and 
                feasibility of the proposals, as evidenced by 
                the first phase, considering, among other 
                things, the proposal's commercial potential, as 
                evidenced by--
                          (i) the small business concern's 
                        record of successfully commercializing 
                        SBIR or other research;
                          (ii) the existence of second phase 
                        funding commitments from private sector 
                        or non-SBIR funding sources;
                          (iii) the existence of third phase, 
                        follow-on commitments for the subject 
                        of the research; and
                          (iv) the presence of other indicators 
                        of the commercial potential of the 
                        idea; and
                  (C) where appropriate, a third phase for work 
                that derives from, extends, or completes 
                efforts made under prior funding agreements 
                under the SBIR program--
                          (i) in which commercial applications 
                        of SBIR-funded research or research and 
                        development are funded by non-Federal 
                        sources of capital or, for products or 
                        services intended for use by the 
                        Federal Government, by follow-on non-
                        SBIR Federal funding awards; or
                          (ii) for which awards from non-SBIR 
                        Federal funding sources are used for 
                        the continuation of research or 
                        research and development that has been 
                        competitively selected using peer 
                        review or merit-based selection 
                        procedures;
          (5) the term ``research'' or ``research and 
        development'' means any activity which is (A) a 
        systematic, intensive study directed toward greater 
        knowledge or understanding of the subject studied; (B) 
        a systematic study directed specifically toward 
        applying new knowledge to meet a recognized need; or 
        (C) a systematic application of knowledge toward the 
        production of useful materials, devices, and systems or 
        methods, including design, development, and improvement 
        of prototypes and new processes to meet specific 
        requirements;
          (6) the term ``Small Business Technology Transfer 
        Program'' or ``STTR'' means a program under which a 
        portion of a Federal agency's extramural research or 
        research and development effort is reserved for award 
        to small business concerns for cooperative research and 
        development through a uniform process having--
                  (A) a first phase, to determine, to the 
                extent possible, the scientific, technical, and 
                commercial merit and feasibility of ideas 
                submitted pursuant to STTR program 
                solicitations;
                  (B) a second phase, which shall not include 
                any invitation, pre-screening, or pre-selection 
                process for eligibility for Phase II, that will 
                further develop proposals that meet particular 
                program needs, in which awards shall be made 
                based on the scientific, technical, and 
                commercial merit and feasibility of the idea, 
                as evidenced by the first phase and by other 
                relevant information; and
                  (C) where appropriate, a third phase for work 
                that derives from, extends, or completes 
                efforts made under prior funding agreements 
                under the STTR program--
                          (i) in which commercial applications 
                        of STTR-funded research or research and 
                        development are funded by non-Federal 
                        sources of capital or, for products or 
                        services intended for use by the 
                        Federal Government, by follow-on non-
                        STTR Federal funding awards; and
                          (ii) for which awards from non-STTR 
                        Federal funding sources are used for 
                        the continuation of research or 
                        research and development that has been 
                        competitively selected using peer 
                        review or scientific review criteria;
          (7) the term ``cooperative research and development'' 
        means research or research and development conducted 
        jointly by a small business concern and a research 
        institution in which not less than 40 percent of the 
        work is performed by the small business concern, and 
        not less than 30 percent of the work is performed by 
        the research institution;
          (8) the term ``research institution'' means a 
        nonprofit institution, as defined in section 4(5) of 
        the Stevenson-Wydler Technology Innovation Act of 1980, 
        and includes federally funded research and development 
        centers, as identified by the National Scientific 
        Foundation in accordance with the governmentwide 
        Federal Acquisition Regulation issued in accordance 
        with section 35(c)(1) of the Office of Federal 
        Procurement Policy Act (or any successor regulation 
        thereto);
          (9) the term ``commercial applications'' shall not be 
        construed to exclude testing and evaluation of 
        products, services, or technologies for use in 
        technical or weapons systems, and further, awards for 
        testing and evaluation of products, services, or 
        technologies for use in technical or weapons systems 
        may be made in either Phase II or Phase III of the 
        Small Business Innovation Research Program and of the 
        Small Business Technology Transfer Program, as defined 
        in this subsection;
          (10) the term ``commercialization'' means--
                  (A) the process of developing products, 
                processes, technologies, or services; and
                  (B) the production and delivery (whether by 
                the originating party or by others) of 
                products, processes, technologies, or services 
                for sale to or use by the Federal Government or 
                commercial markets;
          (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)[.]; 
                and
          (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.
  (f) Federal Agency Expenditures for the SBIR Program.--
          (1) Required expenditure amounts.--Except as provided 
        in paragraph (2)(B), each Federal agency which has an 
        extramural budget for research or research and 
        development in excess of $100,000,000 for fiscal year 
        1992, or any fiscal year thereafter, shall expend with 
        small business concerns--
                  (A) not less than 1.5 percent of such budget 
                in each of fiscal years 1993 and 1994;
                  (B) not less than 2.0 percent of such budget 
                in each of fiscal years 1995 and 1996;
                  (C) not less than 2.5 percent of such budget 
                in each of fiscal years 1997 through 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; and
                  (I) not less than 3.2 percent of such budget 
                in fiscal year 2017 and each fiscal year 
                thereafter,
        specifically in connection with SBIR programs which 
        meet the requirements of this section, policy 
        directives, and regulations issued under this section.
          (2) Limitations.--A Federal agency shall not--
                  (A) use any of its SBIR budget established 
                pursuant to paragraph (1) for the purpose of 
                funding administrative costs of the program, 
                including costs associated with salaries and 
                expenses; or
                  (B) make available for the purpose of meeting 
                the requirements of paragraph (1) an amount of 
                its extramural budget for basic research which 
                exceeds the percentages specified in paragraph 
                (1).
          (3) Exclusion of certain funding agreements.--Funding 
        agreements with small business concerns for research or 
        research and development which result from competitive 
        or single source selections other than an SBIR program 
        shall not be considered to meet any portion of the 
        percentage requirements of paragraph (1).
          (4) Rule of construction.--Nothing in this subsection 
        may be construed to prohibit a Federal agency from 
        expending with small business concerns an amount of the 
        extramural budget for research or research and 
        development of the agency that exceeds the amount 
        required under paragraph (1).
  (g) Each Federal agency required by subsection (f) to 
establish a small business innovation research program shall, 
in accordance with this Act and regulations issued hereunder--
          (1) unilaterally determine categories of projects to 
        be in its SBIR program;
          (2) issue small business innovation research 
        solicitations in accordance with a schedule determined 
        cooperatively with the Small Business Administration;
          (3) unilaterally determine research topics within the 
        agency's SBIR solicitations, giving special 
        consideration to broad research topics and to topics 
        that further 1 or more critical technologies, as 
        identified by--
                  (A) the National Critical Technologies Panel 
                (or its successor) in the 1991 report required 
                under section 603 of the National Science and 
                Technology Policy, Organization, and Priorities 
                Act of 1976, and in subsequent reports issued 
                under that authority; or
                  (B) the Secretary of Defense, in the 1992 
                report issued in accordance with section 2522 
                of title 10, United States Code, and in 
                subsequent reports issued under that authority;
          (4)(A) unilaterally receive and evaluate proposals 
        resulting from SBIR proposals; and
          (B) make a final decision on each proposal submitted 
        under the SBIR program--
                  (i) not later than 1 year after the date on 
                which the applicable solicitation closes, if 
                with respect to the National Institutes of 
                Health or the National Science Foundation, or 
                90 days after the date on which the applicable 
                solicitation closes, if with respect to any 
                other participating agency; or
                  (ii) if the Administrator authorizes an 
                extension with respect to a solicitation, not 
                later than 90 days after the date that would 
                otherwise be applicable to the agency under 
                clause (i);
          (5) subject to subsection (l), unilaterally select 
        awardees for the SBIR funding agreements and inform 
        each awardee under such an agreement, to the extent 
        possible, of the expenses of the awardee that will be 
        allowable under the funding agreement;
          (6) administer its own SBIR funding agreements (or 
        delegate such administration to another agency);
          (7) make payments to recipients of SBIR funding 
        agreements on the basis of progress toward or 
        completion of the funding agreement requirements and, 
        in all cases, make payment to recipients under such 
        agreements in full, subject to audit, on or before the 
        last day of the 12-month period beginning on the date 
        of completion of such requirements;
          (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, hedge fund, 
                        or private equity firm investment or is 
                        majority-owned by multiple venture 
                        capital operating companies, hedge 
                        funds, or private equity firms and, if 
                        so--
                                  (I) the amount of venture 
                                capital, hedge fund, or private 
                                equity firm investment 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) 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
                          (vi) is located in a State described 
                        in subsection (u)(3);
                  (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; and
                  (C) data with respect to the Federal and 
                State Technology Partnership Program (FAST 
                Program);
          (9) [make an annual report] not later than March 30 
        of each year, submit a report on the SBIR program to 
        the Small Business Administration [and the Office of 
        Science and Technology Policy], 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;
          (10) include, as part of its annual performance plan 
        as required by subsections (a) and (b) of section 1115 
        of title 31, United States Code, a section on its SBIR 
        program, and shall submit such section 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;
          (11) provide for and fully implement the tenets of 
        Executive Order No. 13329 (Encouraging Innovation in 
        Manufacturing); and
          (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.
  (h) In addition to the requirements of subsection (f), each 
Federal agency which has a budget for research or research and 
development in excess of $20,000,000 for any fiscal year 
beginning with fiscal year 1983 or subsequent fiscal year shall 
establish goals specifically for funding agreements for 
research or research and development to small business 
concerns, and no goal established under this subsection shall 
be less than the percentage of the agency's research or 
research and development budget expended under funding 
agreements with small business concerns in the immediately 
preceding fiscal year.
  (i) Annual Reporting.--
          (1) In general.--Each Federal agency required by this 
        section to have an SBIR program or to establish goals 
        shall report annually to the Small Business 
        Administration the number of awards (including awards 
        under subsection (y)) pursuant to grants, contracts, or 
        cooperative agreements over $10,000 in amount and the 
        dollar value of all such awards, identifying SBIR 
        awards and comparing the number and amount of such 
        awards with awards to other than small business 
        concerns.
          (2) Calculation of extramural budget.--
                  (A) Methodology.--Not later than 4 months 
                after the date of the enactment of each 
                appropriations Act for a Federal agency 
                required by this section to have an SBIR 
                program, the Federal agency shall submit to the 
                Administrator a report, which shall include a 
                description of the methodology used for 
                calculating the amount of the extramural budget 
                of that Federal agency.
                  (B) Administrator's analysis.--The 
                Administrator shall include an analysis of the 
                methodology received from each Federal agency 
                referred to in subparagraph (A) in the report 
                required by subsection (b)(7).
  (j)(1) Policy directives.--The Small Business Administration, 
after consultation with the Administrator of the Office of 
Federal Procurement Policy, the Director of the Office of 
Science and Technology Policy, and the Intergovernmental 
Affairs Division of the Office of Management and Budget, shall, 
within one hundred and twenty days of the enactment of the 
Small Business Innovation Development Act of 1982, issue policy 
directives for the general conduct of the SBIR programs within 
the Federal Government, including providing for--
          (A) simplified, standardized, and timely SBIR 
        solicitations;
          (B) a simplified, standardized funding process which 
        provides for (i) the timely receipt and review of 
        proposals; (ii) outside peer review for at least Phase 
        II proposals, if appropriate; (iii) protection of 
        proprietary information provided in proposals; (iv) 
        selection of awardees; (v) retention of rights in data 
        generated in the performance of the contract by the 
        small business concern; (vi) transfer of title to 
        property provided by the agency to the small business 
        concern if such a transfer would be more cost effective 
        than recovery of the property by the agency; (vii) cost 
        sharing; and (viii) cost principles and payment 
        schedules;
          (C) exemptions from the regulations under paragraph 
        (2) if national security or intelligence functions 
        clearly would be jeopardized;
          (D) minimizing regulatory burden associated with 
        participation in the SBIR program for the small 
        business concern which will stimulate the cost-
        effective conduct of Federal research and development 
        and the likelihood of commercialization of the results 
        of research and development conducted under the SBIR 
        program;
          (E) simplified, standardized, and timely annual 
        report on the SBIR program to the Small Business 
        Administration and the Office of Science and Technology 
        Policy;
          (F) standardized and orderly withdrawal from program 
        participation by an agency having a SBIR program; at 
        the discretion of the Administration, such directives 
        may require a phased withdrawal over a period of time 
        sufficient in duration to minimize any adverse impact 
        on small business concerns; and
          (G) the voluntary participation in a SBIR program by 
        a Federal agency not required to establish such a 
        program pursuant to subsection (f).
          (2) Modifications.--Not later than 90 days after the 
        date of enactment of the Small Business Research and 
        Development Enhancement Act of 1992, the Administrator 
        shall modify the policy directives issued pursuant to 
        this subsection to provide for--
                  (A) retention by a small business concern of 
                the rights to data generated by the concern in 
                the performance of an SBIR award for a period 
                of not less than 4 years;
                  (B) continued use by a small business concern 
                participating in Phase III of the SBIR program, 
                as a directed bailment, of any property 
                transferred by a Federal agency to the small 
                business concern in Phase II of an SBIR program 
                for a period of not less than 2 years, 
                beginning on the initial date of the concern's 
                participation in Phase III of such program;
                  (C) procedures to ensure, to the extent 
                practicable, that an agency which intends to 
                pursue research, development, or production of 
                a technology developed by a small business 
                concern under an SBIR program enters into 
                follow-on, non-SBIR funding agreements with the 
                small business concern for such research, 
                development, or production;
                  (D) an increase to $150,000 in the amount of 
                funds which an agency may award in Phase I of 
                an SBIR program, and to $1,000,000 in Phase II 
                of an SBIR program, and an adjustment of such 
                amounts every year for inflation;
                  (E) a process for notifying the participating 
                SBIR agencies and potential SBIR participants 
                of the 1991, 1992, and the current critical 
                technologies, as identified--
                          (i) by the National Critical 
                        Technologies Panel (or its successor), 
                        in accordance with section 603 of the 
                        National Science and Technology Policy, 
                        Organization, and Priorities Act of 
                        1976; or
                          (ii) by the Secretary of Defense, in 
                        accordance with section 2522 of title 
                        10, United States Code;
                  (F) enhanced outreach efforts to increase the 
                participation of socially and economically 
                disadvantaged small business concerns, as 
                defined in section 8(a)(4), and the 
                participation of small businesses that are 51 
                percent owned and controlled by women in 
                technological innovation and in SBIR programs, 
                including Phase III of such programs, and the 
                collection of data to document such 
                participation;
                  (G) technical and programmatic guidance to 
                encourage agencies to develop gap-funding 
                programs to address the delay between an award 
                for Phase I of an SBIR program and the 
                application for and extension of an award for 
                Phase II of such program;
                  (H) procedures to ensure that a small 
                business concern that submits a proposal for a 
                funding agreement for Phase I of an SBIR 
                program and that has received more than 15 
                Phase II SBIR awards during the preceding 5 
                fiscal years is able to demonstrate the extent 
                to which it was able to secure Phase III 
                funding to develop concepts resulting from 
                previous Phase II SBIR awards; and
                  (I) procedures to ensure that agencies 
                participating in the SBIR program retain the 
                information submitted under subparagraph (H) at 
                least until the General Accounting Office 
                submits the report required under section 105 
                of the Small Business Research and Development 
                Enhancement Act of 1992.
          (3) Additional modifications.--Not later than 120 
        days after the date of the enactment of the Small 
        Business Innovation Research Program Reauthorization 
        Act of 2000, the Administrator shall modify the policy 
        directives issued pursuant to this subsection--
                  (A) to clarify that the rights provided for 
                under paragraph (2)(A) apply to all Federal 
                funding awards under this section, including 
                Phase I, Phase II, and Phase III;
                  (B) to provide for the requirement of a 
                succinct commercialization plan with each 
                application for a Phase II award that is moving 
                toward commercialization;
                  (C) to require agencies to report to the 
                Administration, not less frequently than 
                annually, all instances in which an agency 
                pursued research, development, or production of 
                a technology developed by a small business 
                concern using an award made under the SBIR 
                program of that agency, and determined that it 
                was not practicable to enter into a follow-on 
                non-SBIR program funding agreement with the 
                small business concern, which report shall 
                include, at a minimum--
                          (i) the reasons why the follow-on 
                        funding agreement with the small 
                        business concern was not practicable;
                          (ii) the identity of the entity with 
                        which the agency contracted to perform 
                        the research, development, or 
                        production; and
                          (iii) a description of the type of 
                        funding agreement under which the 
                        research, development, or production 
                        was obtained; and
                  (D) to implement subsection (v), including 
                establishing standardized procedures for the 
                provision of information pursuant to subsection 
                (k)(3).
          (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 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.
  (k) Database.--
          (1) Public database.--Not later than 180 days after 
        the date of the enactment of the Small Business 
        Innovation Research Program Reauthorization Act of 
        2000, the Administrator shall develop, maintain, and 
        make available to the public a searchable, up-to-date, 
        electronic database that includes--
                  (A) the name, size, location, and an 
                identifying number assigned by the 
                Administrator, of each small business concern 
                that has received a Phase I or Phase II SBIR or 
                STTR award from a Federal agency;
                  (B) a description of each Phase I or Phase II 
                SBIR or STTR award received by that small 
                business concern, including--
                          (i) an abstract of the project funded 
                        by the award, excluding any proprietary 
                        information so identified by the small 
                        business concern;
                          (ii) the Federal agency making the 
                        award; and
                          (iii) the date and amount of the 
                        award;
                  (C) an identification of any business concern 
                or subsidiary established for the commercial 
                application of a product or service for which 
                an SBIR or STTR award is made;
                  (D) information regarding mentors and 
                Mentoring Networks, as required by section 
                35(d);
                  (E) with respect to assistance under the STTR 
                program only--
                          (i) whether the small business 
                        concern or the research institution 
                        initiated their collaboration on each 
                        assisted STTR project;
                          (ii) whether the small business 
                        concern or the research institution 
                        originated any technology relating to 
                        the assisted STTR project;
                          (iii) the length of time it took to 
                        negotiate any licensing agreement 
                        between the small business concern and 
                        the research institution under each 
                        assisted STTR project; and
                          (iv) how the proceeds from 
                        commercialization, marketing, or sale 
                        of technology resulting from each 
                        assisted STTR project were allocated 
                        (by percentage) between the small 
                        business concern and the research 
                        institution; and
                  (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, hedge fund, 
                        or private equity firm investment and, 
                        if so, whether the small business 
                        concern is registered as majority-owned 
                        by multiple venture capital operating 
                        companies, hedge funds, or private 
                        equity firms as required under 
                        subsection (dd)(3);
                          (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) 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); or
                          (v) received assistance under the 
                        Federal and State Technology 
                        Partnership Program (FAST Program).
          (2) Government database.--Not later than 90 days 
        after the date of enactment of the SBIR/STTR 
        Reauthorization Act of 2011, the Administrator, in 
        consultation with Federal agencies required to have an 
        SBIR program pursuant to subsection (f)(1) or an STTR 
        program pursuant to subsection (n)(1), shall develop 
        and maintain a database to be used exclusively for SBIR 
        and STTR program evaluation that--
                  (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 of, 
                        and the identifying number assigned by 
                        the Administration to, the small 
                        business concern;
                          (ii) an abstract of the applicable 
                        project;
                          (iii) the specific aims of the 
                        project;
                          (iv) the number of employees of the 
                        small business concern;
                          (v) the names and titles of the key 
                        individuals that will carry out the 
                        project, the position each key 
                        individual holds in the small business 
                        concern, and contact information for 
                        each key individual;
                          (vi) the percentage of effort each 
                        individual described in clause (v) will 
                        contribute to the project;
                          (vii) whether the small business 
                        concern is majority-owned by multiple 
                        venture capital operating companies, 
                        hedge funds, or private equity firms; 
                        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;
                  (B) contains for each Phase II award made by 
                a Federal agency--
                          (i) information collected in 
                        accordance with paragraph (3) on 
                        revenue from the sale of new products 
                        or services resulting from the research 
                        conducted under the award;
                          (ii) information collected in 
                        accordance with paragraph (3) on 
                        additional investment from any source, 
                        other than Phase I or Phase II SBIR or 
                        STTR awards, to further the research 
                        and development conducted under the 
                        award; and
                          (iii) any other information received 
                        in connection with the award that the 
                        Administrator, in conjunction with the 
                        SBIR and STTR program managers of 
                        Federal agencies, considers relevant 
                        and appropriate;
                  (C) includes any narrative information that a 
                small business concern receiving a Phase II 
                award voluntarily submits to further describe 
                the outputs and outcomes of its awards;
                  (D) includes, for each awardee--
                          (i) the name, size, and location of, 
                        and any identifying number assigned by 
                        the Administrator to, the awardee;
                          (ii) whether the awardee has venture 
                        capital, hedge fund, or private equity 
                        firm investment and, if so--
                                  (I) the amount of venture 
                                capital, hedge fund, or private 
                                equity firm investment as of 
                                the date of the award;
                                  (II) the percentage of 
                                ownership of the awardee held 
                                by a venture capital operating 
                                company, hedge fund, or private 
                                equity firm, including whether 
                                the awardee is majority-owned 
                                by multiple venture capital 
                                operating companies, hedge 
                                funds, or private equity firms; 
                                and
                                  (III) the amount of 
                                additional capital that the 
                                awardee has invested in the 
                                SBIR or STTR 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;
                  (E) includes any other data collected by or 
                available to any Federal agency that such 
                agency considers may be useful for SBIR or STTR 
                program evaluation;
                  (F) is available for use solely for program 
                evaluation purposes by the Federal Government 
                or, in accordance with policy directives issued 
                by the Administration, by other authorized 
                persons who are subject to a use and 
                nondisclosure agreement with the Federal 
                Government covering the use of the database; 
                and
                  (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 been--
                          (i) convicted of a fraud-related 
                        crime involving funding received under 
                        the SBIR program or STTR program; or
                          (ii) found civilly liable for a 
                        fraud-related violation involving 
                        funding received under the SBIR program 
                        or STTR program.
          (3) Updating information for database.--
                  (A) In general.--A small business concern 
                applying for a Phase II award under this 
                section shall be required to update information 
                in the database established under this 
                subsection for any prior Phase II award 
                received by that small business concern. In 
                complying with this paragraph, a small business 
                concern may apportion sales or additional 
                investment information relating to more than 
                one Phase II award among those awards, if it 
                notes the apportionment for each award.
                  (B) Annual updates upon termination.--A small 
                business concern receiving a Phase II award 
                under this section shall--
                          (i) update information in the 
                        database concerning that award at the 
                        termination of the award period; and
                          (ii) be requested to voluntarily 
                        update such information annually 
                        thereafter for a period of 5 years.
                  (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.
          (4) Protection of information.--Information provided 
        under paragraph (2) shall be considered privileged and 
        confidential and not subject to disclosure pursuant to 
        section 552 of title 5, United States Code.
          (5) Rule of construction.--Inclusion of information 
        in the database under this subsection shall not be 
        considered to be publication for purposes of subsection 
        (a) or (b) of section 102 of title 35, United States 
        Code.
  (l) Reporting of Awards Made From Single Proposal, to 
Multiple Award Winners, or to Critical Technology Topics.--
          (1) Single proposal.--If a Federal agency required to 
        establish an SBIR program under subsection (f) makes an 
        award with respect to an SBIR solicitation topic or 
        subtopic for which the agency received only 1 proposal, 
        the agency shall provide written justification for 
        making the award in its next quarterly report to the 
        Administration and in the agency's next annual report 
        required under subsection (g)(8).
          (2) Multiple awards.--An agency referred to in 
        paragraph (1) shall include in its next annual report 
        required under subsection (g)(8) an accounting of the 
        awards the agency has made for Phase I of an SBIR 
        program during the reporting period to entities that 
        have received more than 15 awards for the Phase II of 
        an SBIR program during the preceding 5 fiscal years.
          (3) Critical technology awards.--An agency referred 
        to in paragraph (1) shall include in its next annual 
        report required under subsection (g)(8), an accounting 
        of the number of awards it has made to critical 
        technology topics, as defined in subsection (g)(3), 
        including an identification of the specific critical 
        technologies topics, and the percentage by number and 
        dollar amount of the agency's total SBIR awards to such 
        critical technology topics.
  (m) Termination.--The authorization to carry out the Small 
Business Innovation Research Program established under this 
section shall terminate on September 30, 2022.
  (n) Required Expenditures for STTR by Federal Agencies.--
          (1) Required expenditure amounts.--
                  (A) In general.--With respect to each fiscal 
                year through fiscal year 2022, each Federal 
                agency that has an extramural budget for 
                research, or research and development, in 
                excess of $1,000,000,000 for that fiscal year, 
                shall expend with small business concerns not 
                less than the percentage of that extramural 
                budget specified in subparagraph (B), 
                specifically in connection with STTR programs 
                that meet the requirements of this section and 
                any policy directives and regulations issued 
                under this section.
                  (B) Expenditure amounts.--The percentage of 
                the extramural budget required to be expended 
                by an agency in accordance with subparagraph 
                (A) shall be--
                          (i) 0.15 percent for each fiscal year 
                        through fiscal year 2003;
                          (ii) 0.3 percent for each of fiscal 
                        years 2004 through 2011;
                          (iii) 0.35 percent for each of fiscal 
                        years 2012 and 2013;
                          (iv) 0.40 percent for each of fiscal 
                        years 2014 and 2015; and
                          (v) 0.45 percent for fiscal year 2016 
                        and each fiscal year thereafter.
          (2) Limitations.--A Federal agency shall not--
                  (A) use any of its STTR budget established 
                pursuant to paragraph (1) for the purpose of 
                funding administrative costs of the program, 
                including costs associated with salaries and 
                expenses, or, in the case of a small business 
                concern or a research institution, costs 
                associated with salaries, expenses, and 
                administrative overhead (other than those 
                direct or indirect costs allowable under 
                guidelines of the Office of Management and 
                Budget and the governmentwide Federal 
                Acquisition Regulation issued in accordance 
                with section 25(c)(1) of the Office of Federal 
                Procurement Policy Act); or
                  (B) make available for the purpose of meeting 
                the requirements of paragraph (1) an amount of 
                its extramural budget for basic research which 
                exceeds the percentage specified in paragraph 
                (1).
          (3) Exclusion of certain funding agreements.--Funding 
        agreements with small business concerns for research or 
        research and development which result from competitive 
        or single source selections other than an STTR program 
        shall not be considered to meet any portion of the 
        percentage requirements of paragraph (1).
  (o) Federal Agency STTR Authority.--Each Federal agency 
required to establish an STTR program in accordance with 
subsection
    (n) and regulations issued under this Act, shall--
          (1) unilaterally determine categories of projects to 
        be included in its STTR program;
          (2) issue STTR solicitations in accordance with a 
        schedule determined cooperatively with the 
        Administration;
          (3) unilaterally determine research topics within the 
        agency's STTR solicitations, giving special 
        consideration to broad research topics and to topics 
        that further 1 or more critical technologies, as 
        identified--
                  (A) by the National Critical Technologies 
                Panel (or its successor) in reports required 
                under section 603 of the National Science and 
                Technology Policy, Organization, and Priorities 
                Act of 1976; or
                  (B) by the Secretary of Defense, in 
                accordance with section 2522 of title 10, 
                United States Code;
          (4)(A) unilaterally receive and evaluate proposals 
        resulting from STTR solicitations; and
          (B) make a final decision on each proposal submitted 
        under the STTR program--
                  (i) not later than 1 year after the date on 
                which the applicable solicitation closes, if 
                with respect to the National Institutes of 
                Health or the National Science Foundation, or 
                90 days after the date on which the applicable 
                solicitation closes, if with respect to any 
                other participating agency; or
                  (ii) if the Administrator authorizes an 
                extension for a solicitation, not later than 90 
                days after the date that would be applicable to 
                the agency under clause (i);
          (5) unilaterally select awardees for its STTR funding 
        agreements and inform each awardee under such an 
        agreement, to the extent possible, of the expenses of 
        the awardee that will be allowable under the funding 
        agreement;
          (6) administer its own STTR funding agreements (or 
        delegate such administration to another agency);
          (7) make payments to recipients of STTR funding 
        agreements on the basis of progress toward or 
        completion of the funding agreement requirements and, 
        in all cases, make payment to recipients under such 
        agreements in full, subject to audit, on or before the 
        last day of the 12-month period beginning on the date 
        of the completion of such requirements;
          (8) include, as part of its annual performance plan 
        as required by subsections (a) and (b) of section 1115 
        of title 31, United States Code, a section on its STTR 
        program, and shall submit such section 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;
          (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, hedge fund, 
                        or private equity firm investment or is 
                        majority-owned by multiple venture 
                        capital operating companies, hedge 
                        funds, or private equity firms and, if 
                        so--
                                  (I) the amount of venture 
                                capital, hedge fund, or private 
                                equity firm investment 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 
                                STTR 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) 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
                          (vi) 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;
                  (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; and
                  (C) data with respect to the Federal and 
                State Technology Partnership Program (FAST 
                Program);
          (10) submit an annual report on the STTR program to 
        the Administration and the Office of Science and 
        Technology Policy;
          (11) adopt the agreement developed by the 
        Administrator under subsection
    (w) as the agency's model agreement for allocating between 
small business concerns and research institutions intellectual 
property rights and rights, if any, to carry out follow-on 
research, development, or commercialization;
          (12) develop, in consultation with the Office of 
        Federal Procurement Policy and the Office of Government 
        Ethics, procedures to ensure that federally funded 
        research and development centers (as defined in 
        subsection (e)(8)) that participate in STTR 
        agreements--
                  (A) are free from organizational conflicts of 
                interests relative to the STTR program;
                  (B) do not use privileged information gained 
                through work performed for an STTR agency or 
                private access to STTR agency personnel in the 
                development of an STTR proposal; and
                  (C) use outside peer review, as appropriate;
          (13) not later than July 31, 1993, develop procedures 
        for assessing the commercial merit and feasibility of 
        STTR proposals, as evidenced by--
                  (A) the small business concern's record of 
                successfully commercializing STTR or other 
                research;
                  (B) the existence of Phase II funding 
                commitments from private sector or non-STTR 
                funding sources;
                  (C) the existence of Phase III follow-on 
                commitments for the subject of the research; 
                and
                  (D) the presence of other indicators of the 
                commercial potential of the idea;
          (14) implement an outreach program to research 
        institutions and small business concerns for the 
        purpose of enhancing its STTR program, in conjunction 
        with any such outreach done for purposes of the SBIR 
        program;
          (15) provide for and fully implement the tenets of 
        Executive Order No. 13329 (Encouraging Innovation in 
        Manufacturing); and
          (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.
  (p) STTR Policy Directive.--
          (1) Issuance.--The Administrator shall issue a policy 
        directive for the general conduct of the STTR programs 
        within the Federal Government. Such policy directive 
        shall be issued after consultation with--
                  (A) the heads of each of the Federal agencies 
                required by subsection (n) to establish an STTR 
                program;
                  (B) the Under Secretary of Commerce for 
                Intellectual Property and Director of the 
                United States Patent and Trademark Office; and
                  (C) the Director of the Office of Federal 
                Procurement Policy.
          (2) Contents.--The policy directive required by 
        paragraph
    (1) shall provide for--
                  (A) simplified, standardized, and timely STTR 
                solicitations;
                  (B) a simplified, standardized funding 
                process that provides for--
                          (i) the timely receipt and review of 
                        proposals;
                          (ii) outside peer review, if 
                        appropriate;
                          (iii) protection of proprietary 
                        information provided in proposals;
                          (iv) selection of awardees;
                          (v) retention by a small business 
                        concern of the rights to data generated 
                        by the concern in the performance of an 
                        STTR award for a period of not less 
                        than 4 years;
                          (vi) continued use by a small 
                        business concern, as a directed 
                        bailment, of any property transferred 
                        by a Federal agency to the small 
                        business concern in Phase II of the 
                        STTR program for a period of not less 
                        than 2 years, beginning on the initial 
                        date of the concern's participation in 
                        Phase III of such program;
                          (vii) cost sharing;
                          (viii) cost principles and payment 
                        schedules; and
                          (ix) 1-year awards for Phase I of an 
                        STTR program, generally not to exceed 
                        $150,000, and 2-year awards for Phase 
                        II of an STTR program, generally not to 
                        exceed $1,000,000, (each of which the 
                        Administrator shall adjust for 
                        inflation annually) greater or lesser 
                        amounts to be awarded at the discretion 
                        of the awarding agency, and shorter or 
                        longer periods of time to be approved 
                        at the discretion of the awarding 
                        agency where appropriate for a 
                        particular project;
                  (C) minimizing regulatory burdens associated 
                with participation in STTR programs;
                  (D) guidelines for a model agreement, to be 
                used by all agencies, for allocating between 
                small business concerns and research 
                institutions intellectual property rights and 
                rights, if any, to carry out follow-on 
                research, development, or commercialization;
                  (E) procedures to ensure that--
                          (i) a recipient of an STTR award is a 
                        small business concern, as defined in 
                        section 3 and the regulations 
                        promulgated thereunder; and
                          (ii) such small business concern 
                        exercises management and control of the 
                        performance of the STTR funding 
                        agreement pursuant to a business plan 
                        providing for the commercialization of 
                        the technology that is the subject 
                        matter of the award; [and]
                  (F) procedures to ensure, to the extent 
                practicable, that an agency which intends to 
                pursue research, development, or production of 
                a technology developed by a small business 
                concern under an STTR program enters into 
                follow-on, non-STTR funding agreements with the 
                small business concern for such research, 
                development, or production[.]; and
                  (G) procedures to ensure that procurement 
                center representatives (as described in section 
                15(l))--
                          (i) 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).
          (3) Modifications.--Not later than 120 days after the 
        date of enactment of this paragraph, the Administrator 
        shall modify the policy directive issued pursuant to 
        this subsection to clarify that the rights provided for 
        under paragraph (2)(B)(v) apply to all Federal funding 
        awards under this section, including Phase I, Phase II, 
        and Phase III.
  (q) Discretionary Technical and Business Assistance.--
          (1) In general.--Each Federal agency required by this 
        section to conduct an SBIR program or STTR program may 
        enter into an agreement with [a vendor selected under 
        paragraph (2)] 1 or more vendors selected under 
        paragraph (2)(A) to provide small business concerns 
        engaged in SBIR or STTR projects with technical and 
        business assistance services, such as access to a 
        network of scientists and engineers engaged in a wide 
        range of technologies, assistance with product sales, 
        intellectual property protections, market research, 
        market validation, and development of regulatory plans 
        and manufacturing plans, or access to technical and 
        business literature available through on-line data 
        bases, for the purpose of assisting such concerns in--
                  (A) making better technical decisions 
                concerning such projects;
                  (B) solving technical problems which arise 
                during the conduct of such projects;
                  (C) minimizing technical risks associated 
                with such projects; and
                  (D) developing and commercializing new 
                commercial products and processes resulting 
                from such projects, including intellectual 
                property protections.
          (2) Vendor selection.--[Each agency may select a 
        vendor to assist small business concerns to meet]
                  (A) In general._Each agency may select 1 or 
                more vendors from which small business concerns 
                may obtain assistance in meeting the goals 
                listed in paragraph (1) for a term not to 
                exceed 5 years. Such selection shall be 
                competitive and shall utilize merit-based 
                criteria.
                  (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).
          (3) Additional technical assistance.--
                  (A) Phase i.--A Federal agency described in 
                paragraph
    (1) may--
                          (i) provide to the recipient of a 
                        Phase I SBIR or STTR award, through a 
                        vendor selected under paragraph (2)(A), 
                        the services described in paragraph 
                        (1), in an amount equal to not more 
                        than [$5,000 per year] $6,500 per 
                        project; or
                          (ii) authorize the recipient of a 
                        Phase I SBIR or STTR award to purchase 
                        the services described in paragraph 
                        (1), in an amount equal to not more 
                        than [$5,000 per year] $6,500 per 
                        project, which shall be in addition to 
                        the amount of the recipient's award.
                  (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)(A), 
                        the services described in paragraph 
                        (1), in an amount equal to not more 
                        than [$5,000 per year] $35,000 per 
                        project; 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] $35,000 per 
                        project, [which shall be in addition to 
                        the amount of the recipient's award] 
                        which may, as 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.
                  (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 or 
                business assistance from an individual or 
                entity other than [the vendor] a vendor 
                selected under paragraph (2)(A) by the Federal 
                agency. 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.
                  (D) Limitation.--A Federal agency may not--
                          (i) use the amounts authorized under 
                        subparagraph (A) or (B) unless [the 
                        vendor] 1 or more vendors selected 
                        under paragraph (2)(A) provides the 
                        technical or business assistance to the 
                        recipient; or
                          (ii) enter a contract with a vendor 
                        under paragraph (2)(A) under which the 
                        amount provided for technical or 
                        business assistance is based on total 
                        number of Phase I or Phase II awards.
                  (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.
  (r) Phase III Agreements.--
          (1) In general.--In the case of a small business 
        concern that is awarded a funding agreement for Phase 
        II of an SBIR or STTR program, a Federal agency may 
        enter into a Phase III agreement with that business 
        concern for additional work to be performed during or 
        after the Phase II period. The Phase II funding 
        agreement with the small business concern may, at the 
        discretion of the agency awarding the agreement, set 
        out the procedures applicable to Phase III agreements 
        with that agency or any other agency.
          (2) Definition.--In this subsection, the term ``Phase 
        III agreement'' means a follow-on, non-SBIR or non-STTR 
        funded contract as described in paragraph (4)(C) or 
        paragraph (6)(C) of subsection (e).
          (3) Intellectual property rights.--Each funding 
        agreement under an SBIR or STTR program shall include 
        provisions setting forth the respective rights of the 
        United States and the small business concern with 
        respect to intellectual property rights and with 
        respect to any right to carry out follow-on research.
          (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,] as direct 
        follow-on awards issued without further competition to 
        the SBIR and STTR award recipients that developed the 
        technology.
  (s) 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.
  (t) Inclusion in Strategic Plans.--Program information 
relating to the SBIR and STTR programs shall be included by 
each Federal agency in any update or revision required of the 
Federal agency under section 306(b) of title 5, United States 
Code.
  (u) Coordination of Technology Development Programs.--
          (1) Definition of technology development program.--In 
        this subsection, the term ``technology development 
        program'' means--
                  (A) 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);
                  (B) the Defense Experimental Program to 
                Stimulate Competitive Research of the 
                Department of Defense;
                  (C) the Experimental Program to Stimulate 
                Competitive Research of the Department of 
                Energy;
                  (D) the Experimental Program to Stimulate 
                Competitive Research of the Environmental 
                Protection Agency;
                  (E) the Experimental Program to Stimulate 
                Competitive Research of the National 
                Aeronautics and Space Administration;
                  (F) the Institutional Development Award 
                Program of the National Institutes of Health; 
                and
                  (G) the National Research Initiative 
                Competitive Grants Program of the Department of 
                Agriculture.
          (2) Coordination requirements.--Each Federal agency 
        that is subject to subsection (f) and that has 
        established a technology development program may, in 
        each fiscal year, review for funding under that 
        technology development program--
                  (A) any proposal to provide outreach and 
                assistance to one or more small business 
                concerns interested in participating in the 
                SBIR program, including any proposal to make a 
                grant or loan to a company to pay a portion or 
                all of the cost of developing an SBIR proposal, 
                from an entity, organization, or individual 
                located in--
                          (i) a State that is eligible to 
                        participate in that program; or
                          (ii) a State described in paragraph 
                        (3); or
                  (B) any proposal for Phase I of the SBIR 
                program, if the proposal, though meritorious, 
                is not funded through the SBIR program for that 
                fiscal year due to funding restraints, from a 
                small business concern located in--
                          (i) a State that is eligible to 
                        participate in a technology development 
                        program; or
                          (ii) a State described in paragraph 
                        (3).
          (3) Additionally eligible state.--A State referred to 
        in subparagraph (A)(ii) or (B)(ii) of paragraph (2) is 
        a State in which the total value of contracts awarded 
        to small business concerns under all SBIR 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 2000, based on the 
        most recent statistics compiled by the Administrator.
  (v) Reducing Paperwork and Compliance Burden.--
          (1) Standardization of reporting requirements.--The 
        Administrator shall work with the Federal agencies 
        required by this section to have an SBIR or STTR 
        program to standardize reporting requirements for the 
        collection of data from SBIR or STTR applicants and 
        awardees, including data for inclusion in the database 
        under subsection (k), taking into consideration the 
        unique needs of each agency, and to the extent 
        possible, permitting the updating of previously 
        reported information by electronic means. Such 
        requirements shall be designed to minimize the burden 
        on small businesses.
          (2) Simplification of application and award 
        process.--Not later than 1 year after the date of 
        enactment of this paragraph, and after a period of 
        public comment, the Administrator shall issue 
        regulations or guidelines, taking into consideration 
        the unique needs of each Federal agency, to ensure that 
        each Federal agency required to carry out an SBIR 
        program or STTR program simplifies and standardizes the 
        program proposal, selection, contracting, compliance, 
        and audit procedures for the SBIR program or STTR 
        program of the Federal agency (including procedures 
        relating to overhead rates for applicants and 
        documentation requirements) to reduce the paperwork and 
        regulatory compliance burden on small business concerns 
        applying to and participating in the SBIR program or 
        STTR program.
  (w) STTR Model Agreement for Intellectual Property Rights.--
          (1) In general.--The Administrator shall promulgate 
        regulations establishing a single model agreement for 
        use in the STTR program that allocates between small 
        business concerns and research institutions 
        intellectual property rights and rights, if any, to 
        carry out follow-on research, development, or 
        commercialization.
          (2) Opportunity for comment.--In promulgating 
        regulations under paragraph (1), the Administrator 
        shall provide to affected agencies, small business 
        concerns, research institutions, and other interested 
        parties the opportunity to submit written comments.
  (x) Research and Development Focus.--
          (1) Revision and update of criteria and procedures of 
        identification.--In carrying out subsection (g), the 
        Secretary of Defense shall, not less often than once 
        every 4 years, revise and update the criteria and 
        procedures utilized to identify areas of the research 
        and development efforts of the Department of Defense 
        which are suitable for the provision of funds under the 
        Small Business Innovation Research Program and the 
        Small Business Technology Transfer Program.
          (2) Utilization of plans.--The criteria and 
        procedures described in paragraph (1) shall be 
        developed through the use of the most current versions 
        of the following plans:
                  (A) The Joint Warfighting Science and 
                Technology Plan required under section 270 of 
                the National Defense Authorization Act for 
                Fiscal Year 1997 (Public Law 104-201; 10 U.S.C. 
                2501 note).
                  (B) The Defense Technology Area Plan of the 
                Department of Defense.
                  (C) The Basic Research Plan of the Department 
                of Defense.
          (3) Input in identification of areas of effort.--The 
        criteria and procedures described in paragraph (1) 
        shall include input in the identification of areas of 
        research and development efforts described in that 
        paragraph from Department of Defense program managers 
        (PMs) and program executive officers (PEOs).
  (y) Commercialization Readiness Program.--
          (1) In general.--The Secretary of Defense and the 
        Secretary of each military department is authorized to 
        create and administer a ``Commercialization Readiness 
        Program'' to accelerate the transition of technologies, 
        products, and services developed under the Small 
        Business Innovation Research Program or Small Business 
        Technology Transfer Program to Phase III, including the 
        acquisition process. 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).
          (2) Identification of research programs for 
        accelerated transition to acquisition process.--In 
        carrying out the Commercialization Readiness Program, 
        the Secretary of Defense and the Secretary of each 
        military department shall identify research programs of 
        the Small Business Innovation Research Program or Small 
        Business Technology Transfer Program that have the 
        potential for rapid transitioning to Phase III and into 
        the acquisition process.
          (3) Limitation.--No research program may be 
        identified under paragraph (2) unless the Secretary of 
        the military department concerned certifies in writing 
        that the successful transition of the program to Phase 
        III and into the acquisition process is expected to 
        meet high priority military requirements of such 
        military department.
          (4) Funding.--
                  (A) In general.--The Secretary of Defense and 
                each Secretary of a military department may use 
                not more than an amount equal to 1 percent of 
                the funds available to the Department of 
                Defense or the military department pursuant to 
                the Small Business Innovation Research Program 
                for payment of expenses incurred to administer 
                the Commercialization Readiness Program under 
                this subsection.
                  (B) Limitations.--The funds described in 
                subparagraph (A)--
                          (i) shall not be subject to the 
                        limitations on the use of funds in 
                        subsection (f)(2); and
                          (ii) shall not be used to make Phase 
                        III awards.
          (5) Insertion incentives.--For any contract with a 
        value of not less than $100,000,000, the Secretary of 
        Defense [is authorized to] shall--
                  (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 the 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 2011, or create new incentives, to encourage 
                agency program managers and prime contractors 
                to meet the goal under subparagraph (A); [and]
                  (C) submit to the Administrator for inclusion 
                in the annual report under subsection (b)(7)--
                          (i) the number and percentage of 
                        Phase II SBIR and STTR contracts 
                        awarded by the Secretary that led to 
                        technology transition into programs of 
                        record or fielded systems;
                          (ii) information on the status of 
                        each project that received funding 
                        through the Commercialization Readiness 
                        Program and efforts to transition those 
                        projects into programs of record or 
                        fielded systems; and
                          (iii) a description of each incentive 
                        that has been used by the Secretary 
                        under subparagraph (B) and the 
                        effectiveness of that incentive with 
                        respect to meeting the goal under 
                        subparagraph (A)[.]; and
                  (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).
  (z) Encouraging Innovation in Energy Efficiency.--
          (1) Federal agency energy-related priority.--In 
        carrying out its duties under this section relating to 
        SBIR and STTR solicitations by Federal departments and 
        agencies, the Administrator shall--
                  (A) ensure that such departments and agencies 
                give high priority to small business concerns 
                that participate in or conduct energy 
                efficiency or renewable energy system research 
                and development projects; and
                  (B) include in the annual report to Congress 
                under subsection (b)(7) a determination of 
                whether the priority described in subparagraph 
                (A) is being carried out.
          (2) Consultation required.--The Administrator shall 
        consult with the heads of other Federal departments and 
        agencies in determining whether priority has been given 
        to small business concerns that participate in or 
        conduct energy efficiency or renewable energy system 
        research and development projects, as required by this 
        subsection.
          (3) Guidelines.--The Administrator shall, as soon as 
        is practicable after the date of enactment of this 
        subsection, issue guidelines and directives to assist 
        Federal agencies in meeting the requirements of this 
        subsection.
          (4) Definitions.--In this subsection--
                  (A) the term ``biomass''--
                          (i) means any organic material that 
                        is available on a renewable or 
                        recurring basis, including--
                                  (I) agricultural crops;
                                  (II) trees grown for energy 
                                production;
                                  (III) wood waste and wood 
                                residues;
                                  (IV) plants (including 
                                aquatic plants and grasses);
                                  (V) residues;
                                  (VI) fibers;
                                  (VII) animal wastes and other 
                                waste materials; and
                                  (VIII) fats, oils, and 
                                greases (including recycled 
                                fats, oils, and greases); and
                          (ii) does not include--
                                  (I) paper that is commonly 
                                recycled; or
                                  (II) unsegregated solid 
                                waste;
                  (B) the term ``energy efficiency project'' 
                means the installation or upgrading of 
                equipment that results in a significant 
                reduction in energy usage; and
                  (C) the term ``renewable energy system'' 
                means a system of energy derived from--
                          (i) a wind, solar, biomass (including 
                        biodiesel), or geothermal source; or
                          (ii) hydrogen derived from biomass or 
                        water using an energy source described 
                        in clause (i).
  (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 
                guidelines for each award;
                  (C) the identity and location of each award 
                recipient; and
                  (D) whether an award recipient has received 
                any venture capital, hedge fund, or private 
                equity firm investment and, if so, whether the 
                recipient is majority-owned by multiple venture 
                capital operating companies, hedge funds, or 
                private equity firms.
          (3) Reports.--The Administrator shall include the 
        information described in paragraph
    (2) in the annual report of the Administrator to Congress.
          (4) Waiver for specific topic.--Upon the receipt of 
        an application from a Federal agency, the Administrator 
        may grant a waiver from the requirement under paragraph 
        (1) with respect to a specific topic (but not for the 
        agency as a whole) for a fiscal year if the 
        Administrator determines, based on the information 
        contained in the application from the agency, that--
                  (A) the requirement under paragraph (1) will 
                interfere with the ability of the agency to 
                fulfill its research mission through the SBIR 
                program or the STTR program; and
                  (B) the agency will minimize, to the maximum 
                extent possible, the number of awards that do 
                not satisfy the requirement under paragraph (1) 
                to preserve the nature and intent of the SBIR 
                program and the STTR program.
          (5) 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.
  (bb) Subsequent Phase II Awards.--
          (1) Agency flexibility.--A small business concern 
        that received a Phase I 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 a Phase I 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.--The head of a 
        Federal agency shall verify that any activity to be 
        performed with respect to a project with a Phase I or 
        Phase II SBIR or STTR award has not been funded under 
        the SBIR program or STTR program of another Federal 
        agency.
  (cc) Phase Flexibility.--[During fiscal years 2012 through 
2017, the National Institutes of Health, the Department of 
Defense, and the Department of Education may each provide] 
During fiscal years 2018 through 2022, all agencies 
participating in the SBIR program may provide to a small 
business concern an award under Phase II of the SBIR program 
with respect to a project, without regard to whether the small 
business concern was provided an award under Phase I of an SBIR 
program with respect to such project, if the head of the 
applicable agency determines that the small business concern 
has completed the determinations described in subsection 
(e)(4)(A) with respect to such project despite not having been 
provided a Phase I award.
  (dd) Participation of Small Business Concerns Majority-Owned 
by Venture Capital Operating Companies, Hedge Funds, or Private 
Equity Firms in the SBIR Program.--
          (1) Authority.--Upon providing a written 
        determination described in paragraph (2) to the 
        Administrator, the Committee on Small Business and 
        Entrepreneurship of the Senate, and the Committee on 
        Small Business and the Committee on Science, Space, and 
        Technology of the House of Representatives, not later 
        than 30 days before the date on which any such 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 
                applicable Federal agency to small business 
                concerns that are owned in majority part by 
                multiple venture capital operating companies, 
                hedge funds, or private equity firms 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, hedge funds, or private 
                equity firms 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, hedge 
                fund, or private equity firm 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 SBIR projects.
          (3) Registration.--A small business concern that is 
        majority-owned by multiple venture capital operating 
        companies, hedge funds, or private equity firms 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, hedge 
                funds, or private equity firms.
          (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) Final decisions on applications under the sbir 
        program.--
                  (A) Definition.--In this paragraph, the term 
                ``covered small business concern'' means a 
                small business concern that--
                          (i) was not majority-owned by 
                        multiple venture capital operating 
                        companies, hedge funds, or private 
                        equity firms on the date on which the 
                        small business concern submitted an 
                        application in response to a 
                        solicitation under the SBIR programs; 
                        and
                          (ii) on the date of the award under 
                        the SBIR program is majority-owned by 
                        multiple venture capital operating 
                        companies, hedge funds, or private 
                        equity firms.
                  (B) In general.--If a Federal agency does not 
                make an award under a solicitation under the 
                SBIR program before the date that is 9 months 
                after the date on which the period for 
                submitting applications under the solicitation 
                ends--
                          (i) a covered small business concern 
                        is eligible to receive the award, 
                        without regard to whether the covered 
                        small business concern meets the 
                        requirements for receiving an award 
                        under the SBIR program for a small 
                        business concern that is majority-owned 
                        by multiple venture capital operating 
                        companies, hedge funds, or private 
                        equity firms, if the covered small 
                        business concern meets all other 
                        requirements for such an award; and
                          (ii) the head of the Federal agency 
                        shall transfer an amount equal to any 
                        amount awarded to a covered small 
                        business concern under the solicitation 
                        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 90 days after 
                        the date on which the Federal agency 
                        makes the award.
          (7) Evaluation criteria.--A Federal agency may not 
        use investment of venture capital or investment from 
        hedge funds or private equity firms as a criterion for 
        the award of contracts under the SBIR program or STTR 
        program.
  (ee) 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 an 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 or 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.
          (4) Advance payment.--If a small business concern 
        receiving an award under this section enters 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, the 
        Federal laboratory or federally funded research and 
        development center may not require advance payment from 
        the small business concern in an amount greater than 
        the amount necessary to pay for 30 days of such 
        activities.
  (ff) Additional SBIR and STTR Awards.--
          (1) Express authority for awarding a sequential phase 
        ii award.--A small business concern that receives a 
        Phase II SBIR award or a Phase II STTR award for a 
        project remains eligible to receive 1 additional Phase 
        II SBIR award or Phase II STTR award for continued work 
        on that project.
          (2) Preventing duplicative awards.--The head of a 
        Federal agency shall verify that any activity to be 
        performed with respect to a project with a Phase I or 
        Phase II SBIR or STTR award has not been funded under 
        the SBIR program or STTR program of another Federal 
        agency.
  (gg)  [Pilot Program.--] Civilian Agency Commercialization 
Readiness 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 to establish a 
        Civilian Agency Commercialization Readiness Program for 
        civilian agencies--
                  (A) for awards for technology development, 
                testing, evaluation, and commercialization 
                assistance for SBIR and STTR Phase II 
                technologies; or
                  (B) to support the progress of research, 
                research and development, and commercialization 
                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] establish a 
                Civilian Agency Commercialization Readiness 
                Program under this subsection unless the 
                covered Federal agency makes a written 
                application to the Administrator, not later 
                than 90 days before the first day of the fiscal 
                year in which [the pilot program] such Civilian 
                Agency Commercialization Readiness 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 and the Committee on Science, 
                        Space, and Technology 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] a Civilian Commercialization Readiness 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] a Civilian 
        Commercialization Readiness Program shall register with 
        the Administrator in a registry that is available to 
        the public.
          (5) Award criteria or consideration.--When making an 
        award under this section, the head of a covered Federal 
        agency shall give consideration to whether the 
        technology to be supported by the award is likely to be 
        manufactured in the United States.
          (6) 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] a Civilian Agency Commercialization 
        Readiness 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.
          [(7) Termination.--The authority to establish a pilot 
        program under this section expires at the end of fiscal 
        year 2017.]
          [(8)] (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 each 
                program established under paragraph (1).]
                  (B) the term ``Civilian Agency 
                Commercialization Readiness Program'' means 
                each program established under paragraph (1).
  (hh) Timing of Release of Funding.--Federal agencies 
participating in the SBIR program or STTR program shall, to the 
extent possible, attempt to shorten the amount of time between 
the provision of notice of an award under the SBIR program or 
STTR program and the subsequent release of funding with respect 
to the award.
  (ii) Reporting on Timing.--Federal agencies participating in 
the SBIR program or STTR program shall provide to the 
Administrator, for the annual report on the SBIR and STTR 
program under subsection (b)(7), the average amount of time the 
agency takes to make a final decision on proposals submitted 
under such programs, the average amount of time the agency 
takes to release funding with respect to an award under such 
programs, and the goals established to reduce such amounts.
  (jj) Phase 0 Proof of Concept Partnership Pilot Program.--
          (1) In general.--The Director of the National 
        Institutes of Health may use $5,000,000 of the funds 
        allocated under subsection (n)(1) for a Proof of 
        Concept Partnership pilot program to accelerate the 
        creation of small businesses and the commercialization 
        of research innovations from qualifying institutions. 
        To implement this program, the Director shall award, 
        through a competitive, merit-based process, grants to 
        qualifying institutions. These grants shall only be 
        used to administer Proof of Concept Partnership awards 
        in conformity with this subsection.
          (2) Definitions.--In this subsection--
                  (A) the term ``Director'' means the Director 
                of the National Institutes of Health;
                  (B) the term ``pilot program'' refers to the 
                Proof of Concept Partnership pilot program; and
                  (C) the terms ``qualifying institution'' and 
                ``institution'' mean a university or other 
                research institution that participates in the 
                National Institutes of Health's STTR program.
          (3) Proof of concept partnerships.--
                  (A) In general.--A Proof of Concept 
                Partnership shall be set up by a qualifying 
                institution to award grants to individual 
                researchers. These grants should provide 
                researchers with the initial investment and the 
                resources to support the proof of concept work 
                and commercialization mentoring needed to 
                translate promising research projects and 
                technologies into a viable company. This work 
                may include technical validations, market 
                research, clarifying intellectual property 
                rights position and strategy, and investigating 
                commercial or business opportunities.
                  (B) Award guidelines.--The administrator of a 
                Proof of Concept Partnership program shall 
                award grants in accordance with the following 
                guidelines:
                          (i) The Proof of Concept Partnership 
                        shall use a market-focused project 
                        management oversight process, 
                        including--
                                  (I) a rigorous, diverse 
                                review board comprised of local 
                                experts in translational and 
                                proof of concept research, 
                                including industry, start-up, 
                                venture capital, technical, 
                                financial, and business experts 
                                and university technology 
                                transfer officials;
                                  (II) technology validation 
                                milestones focused on market 
                                feasibility;
                                  (III) simple reporting 
                                effective at redirecting 
                                projects; and
                                  (IV) the willingness to 
                                reallocate funding from failing 
                                projects to those with more 
                                potential.
                          (ii) Not more than $100,000 shall be 
                        awarded towards an individual proposal.
                  (C) Educational resources and guidance.--The 
                administrator of a Proof of Concept Partnership 
                program shall make educational resources and 
                guidance available to researchers attempting to 
                commercialize their innovations.
          (4) Awards.--
                  (A) Size of award.--The Director may make 
                awards to a qualifying institution for up to 
                $1,000,000 per year for up to 3 years.
                  (B) Award criteria.--In determining which 
                qualifying institutions receive pilot program 
                grants, the Director shall consider, in 
                addition to any other criteria the Director 
                determines necessary, the extent to which 
                qualifying institutions--
                          (i) have an established and proven 
                        technology transfer or 
                        commercialization office and have a 
                        plan for engaging that office in the 
                        program's implementation;
                          (ii) have demonstrated a commitment 
                        to local and regional economic 
                        development;
                          (iii) are located in diverse 
                        geographies and are of diverse sizes;
                          (iv) can assemble project management 
                        boards comprised of industry, start-up, 
                        venture capital, technical, financial, 
                        and business experts;
                          (v) have an intellectual property 
                        rights strategy or office; and
                          (vi) demonstrate a plan for 
                        sustainability beyond the duration of 
                        the funding award.
          (5) Limitations.--The funds for the pilot program 
        shall not be used--
                  (A) for basic research, but to evaluate the 
                commercial potential of existing discoveries, 
                including--
                          (i) proof of concept research or 
                        prototype development; and
                          (ii) activities that contribute to 
                        determining a project's 
                        commercialization path, to include 
                        technical validations, market research, 
                        clarifying intellectual property 
                        rights, and investigating commercial 
                        and business opportunities; or
                  (B) to fund the acquisition of research 
                equipment or supplies unrelated to 
                commercialization activities.
          (6) Evaluative report.--The Director 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 an evaluative report 
        regarding the activities of the pilot program. The 
        report shall include--
                  (A) a detailed description of the 
                institutional and proposal selection process;
                  (B) an accounting of the funds used in the 
                pilot program;
                  (C) a detailed description of the pilot 
                program, including incentives and activities 
                undertaken by review board experts;
                  (D) a detailed compilation of results 
                achieved by the pilot program, including the 
                number of small business concerns included and 
                the number of business packages developed, and 
                the number of projects that progressed into 
                subsequent STTR phases; and
                  (E) an analysis of the program's 
                effectiveness with supporting data.
          (7) Sunset.--The pilot program under this subsection 
        shall terminate at the end of fiscal year 2017.
  (kk) 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--
          (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.
  (ll) 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).
  (mm) Assistance for Administrative, Oversight, and Contract 
Processing Costs.--
          (1) In general.--Subject to paragraph (3) and until 
        [September 30, 2017] September 30, 2022, 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 for--
                  (A) the administration of the SBIR program or 
                the STTR program of the Federal agency;
                  (B) the provision of outreach and technical 
                assistance relating to the SBIR program or STTR 
                program of the Federal agency, including 
                technical assistance site visits, personnel 
                interviews, and national conferences;
                  (C) the implementation of commercialization 
                and outreach initiatives that were not in 
                effect on the date of enactment of this 
                subsection;
                  (D) carrying out the program under subsection 
                (y);
                  (E) activities relating to oversight and 
                congressional reporting, including waste, 
                fraud, and abuse prevention activities;
                  (F) targeted reviews of recipients of awards 
                under the SBIR program or STTR program of the 
                Federal agency that the head of the Federal 
                agency determines are at high risk for fraud, 
                waste, or abuse to ensure compliance with 
                requirements of the SBIR program or STTR 
                program, respectively;
                  (G) the implementation of oversight and 
                quality control measures, including 
                verification of reports and invoices and cost 
                reviews;
                  (H) carrying out subsection (dd);
                  (I) contract processing costs relating to the 
                SBIR program or STTR program of the Federal 
                agency; [and]
                  (J) funding for additional personnel and 
                assistance with application reviews[.]; and
                  (K) the annual meeting required under 
                subsection (tt).
          [(2) Outreach and technical assistance.--
                  [(A) In general.--Except as provided in 
                subparagraph (B), a Federal agency 
                participating in the program under this 
                subsection shall use a portion of the funds 
                authorized for uses under paragraph (1) to 
                carry out the policy directive required under 
                subsection (j)(2)(F) and to increase the 
                participation of States with respect to which a 
                low level of SBIR awards have historically been 
                awarded.
                  [(B) Waiver.--A Federal agency may request 
                the Administrator to waive the requirement 
                contained in subparagraph (A). Such request 
                shall include an explanation of why the waiver 
                is necessary. The Administrator may grant the 
                waiver based on a determination that the agency 
                has demonstrated a sufficient need for the 
                waiver, that the outreach objectives of the 
                agency are being met, and that there is 
                increased participation by States with respect 
                to which a low level of SBIR awards have 
                historically been awarded.]
          (2) Outreach and technical assistance.--A Federal 
        agency participating in the program under this 
        subsection shall use a portion of the funds authorized 
        for uses under paragraph (1) to carry out the policy 
        directive required under subsection (j)(2)(F) and to 
        increase the participation of States with respect to 
        which a low level of SBIR awards have historically been 
        awarded.
          (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.
          (5) Coordination with ig.--Each Federal agency shall 
        coordinate the activities funded under subparagraph 
        (E), (F), or (G) of paragraph (1) with their respective 
        Inspectors General, when appropriate, and each Federal 
        agency that allocates more than $50,000,000 to the SBIR 
        program of the Federal agency for a fiscal year may 
        share such funding with its Inspector General when the 
        Inspector General performs such activities.
          (6) Reporting.--The Administrator shall collect data 
        and provide to the Committee on Small Business and 
        Entrepreneurship of the Senate and the Committee on 
        Small Business, the Committee on Science, Space, and 
        Technology, and the Committee on Appropriations of the 
        House of Representatives a report on the use of funds 
        under this subsection, including funds used to achieve 
        the objectives of [paragraph (2)(A) and any use of the 
        waiver authority under paragraph (2)(B)] paragraph (2).
  (nn) 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, Space, 
                        and Technology of the House of 
                        Representatives.
  (oo) 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.
  (pp) Limitation on Pilot Programs.--
          (1) Existing pilot programs.--The Administrator may 
        only carry out a covered pilot program that is in 
        operation on the date of enactment of this subsection 
        during the 3-year period beginning on such date of 
        enactment.
          (2) New pilot programs.--The Administrator may only 
        carry out a covered pilot program established after the 
        date of enactment of this subsection--
                  (A) during the 3-year period beginning on the 
                date on which such program is established; and
                  (B) if such program does not continue and is 
                not based on, in any manner, a previously 
                established covered pilot program.
          (3) Covered pilot program defined.--In this 
        subsection, the term ``covered pilot program'' means 
        any initiative, project, innovation, or other 
        activity--
                  (A) established by the Administrator;
                  (B) relating to an SBIR or STTR program; and
                  (C) not specifically authorized by law.
  (qq) Minimum Standards for Participation.--
          (1) Progress to phase ii success.--
                  (A) Establishment of system and minimum 
                commercialization rate.--Not later than 1 year 
                after the date of enactment of this subsection, 
                the head of each Federal agency participating 
                in the SBIR or STTR program shall--
                          (i) establish a system to measure, 
                        where appropriate, the success of small 
                        business concerns with respect to the 
                        receipt of Phase II SBIR or STTR awards 
                        for projects that have received Phase I 
                        SBIR or STTR awards;
                          (ii) establish a minimum performance 
                        standard for small business concerns 
                        with respect to the receipt of Phase II 
                        SBIR or STTR awards for projects that 
                        have received Phase I SBIR or STTR 
                        awards; and
                          (iii) begin evaluating, each fiscal 
                        year, whether each small business 
                        concern that received a Phase I SBIR or 
                        STTR award from the agency meets the 
                        minimum performance standard 
                        established under clause (ii).
                  (B) Consequence of failure to meet minimum 
                commercialization rate.--If the head of a 
                Federal agency determines that a small business 
                concern that received a Phase I SBIR or STTR 
                award from the agency is not meeting the 
                minimum performance standard established under 
                subparagraph (A)(ii), such concern may not 
                participate in Phase I (or Phase II if under 
                the authority of subsection (cc)) of the SBIR 
                or STTR program of that agency during the 1-
                year period beginning on the date on which such 
                determination is made.
          (2) Progress to phase iii success.--
                  (A) Establishment of system and minimum 
                commercialization rate.--Not later than 2 years 
                after the date of enactment of this subsection, 
                the head of each Federal agency participating 
                in the SBIR or STTR program shall--
                          (i) establish a system to measure, 
                        where appropriate, the success of small 
                        business concerns with respect to the 
                        receipt of Phase III SBIR or STTR 
                        awards for projects that have received 
                        Phase I SBIR or STTR awards;
                          (ii) establish a minimum performance 
                        standard for small business concerns 
                        with respect to the receipt of Phase 
                        III SBIR or STTR awards for projects 
                        that have received Phase I SBIR or STTR 
                        awards; and
                          (iii) begin evaluating, each fiscal 
                        year, whether each small business 
                        concern that received a Phase I SBIR or 
                        STTR award from the agency meets the 
                        minimum performance standard 
                        established under clause (ii).
                  (B) Consequence of failure to meet minimum 
                commercialization rate.--If the head of a 
                Federal agency determines that a small business 
                concern that received a Phase I SBIR or STTR 
                award from the agency is not meeting the 
                minimum performance standard established under 
                subparagraph (A)(ii), such concern may not 
                participate in Phase I (or Phase II if under 
                the authority of subsection (cc)) of the SBIR 
                or STTR program of that agency during the 1-
                year period beginning on the date on which such 
                determination is made.
          (3) Administration oversight.--
                  (A) Approval and publication of systems and 
                minimum performance standards.--Each system and 
                minimum performance standard established under 
                paragraph (1) or paragraph (2) shall be 
                submitted by the head of the applicable Federal 
                agency to the Administrator and shall be 
                subject to the approval of the Administrator. 
                In making a determination with respect to 
                approval, the Administrator shall ensure that 
                the minimum performance standard exceeds a de 
                minimis level. The Administrator shall publish 
                on the Internet Web site of the Administration 
                the systems and minimum performance standards 
                approved.
                  (B) Submission of evaluation results by 
                agency.--The head of each covered Federal 
                agency shall submit to the Administrator the 
                results of each evaluation conducted under 
                paragraph (1) or paragraph (2).
          (4) Requirement of notice and comment.--Each system 
        and minimum performance standard established under 
        paragraph (1) or paragraph (2) and each approval 
        provided by the Administrator under paragraph (3)(A), 
        at least 60 days before becoming effective, shall be 
        preceded by the provision of notice of and an 
        opportunity for public comment on such system, 
        standard, or approval.
  (rr) Publication of Certain Information.--In order to 
increase the number of small businesses receiving awards under 
the SBIR or STTR programs of participating agencies, and to 
simplify the application process for such awards, the 
Administrator shall establish and maintain a public Internet 
Web site on which the Administrator shall publish such 
information relating to notice of and application for awards 
under the SBIR program and STTR program of each participating 
Federal agency as the Administrator determines appropriate.
  (ss) Report on Enhancement of Manufacturing Activities.--Not 
later than October 1, 2013, and annually thereafter, the head 
of each Federal agency that makes more than $50,000,000 in 
awards under the SBIR and STTR programs of the agency combined 
shall submit to the Administrator, for inclusion in the annual 
report required under subsection (b)(7), information that 
includes--
          (1) a description of efforts undertaken by the head 
        of the Federal agency to enhance United States 
        manufacturing activities;
          (2) a comprehensive description of the actions 
        undertaken each year by the head of the Federal agency 
        in carrying out the SBIR or STTR program of the agency 
        in support of Executive Order 13329 (69 Fed. Reg. 9181; 
        relating to encouraging innovation in manufacturing);
          (3) an assessment of the effectiveness of the actions 
        described in paragraph (2) at enhancing the research 
        and development of United States manufacturing 
        technologies and processes;
          (4) a description of efforts by vendors selected to 
        provide discretionary technical assistance under 
        subsection (q)(1) to help SBIR and STTR concerns 
        manufacture in the United States; and
          (5) recommendations that the program managers of the 
        SBIR or STTR program of the agency consider appropriate 
        for additional actions to increase the effectiveness of 
        enhancing manufacturing activities.
  (tt) 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 
        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.
  (uu) 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 subsection--
                  (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 this 
                subsection to carry out further 
                commercialization activities for research 
                conducted pursuant to an SBIR program.

           *       *       *       *       *       *       *

  Sec. 15.
  (a) Small Business Procurements.--
          (1) In general.--For purposes of this Act, small 
        business concerns shall receive any award or contract 
        if such award or contract is, in the determination of 
        the Administrator and the contracting agency, in the 
        interest of--
                  (A) maintaining or mobilizing the full 
                productive capacity of the United States;
                  (B) war or national defense programs; or
                  (C) assuring that a fair proportion of the 
                total purchase and contracts for goods and 
                services of the Government in each industry 
                category (as defined under paragraph (2)) are 
                awarded to small business concerns.
          (2) Industry category defined.--
                  (A) In general.--In this subsection, the term 
                ``industry category'' means a discrete group of 
                similar goods and services, as determined by 
                the Administrator in accordance with the North 
                American Industry Classification System codes 
                used to establish small business size 
                standards, except that the Administrator shall 
                limit an industry category to a greater extent 
                than provided under the North American Industry 
                Classification System codes if the 
                Administrator receives evidence indicating that 
                further segmentation of the industry category 
                is warranted--
                          (i) due to special capital equipment 
                        needs;
                          (ii) due to special labor 
                        requirements;
                          (iii) due to special geographic 
                        requirements, except as provided in 
                        subparagraph (B);
                          (iv) due to unique Federal buying 
                        patterns or requirements; or
                          (v) to recognize a new industry.
                  (B) Exception for geographic requirements.--
                The Administrator may not further segment an 
                industry category based on geographic 
                requirements unless--
                          (i) the Government typically 
                        designates the geographic area where 
                        work for contracts for goods or 
                        services is to be performed;
                          (ii) Government purchases comprise 
                        the major portion of the entire 
                        domestic market for such goods or 
                        services; and
                          (iii) it is unreasonable to expect 
                        competition from business concerns 
                        located outside of the general 
                        geographic area due to the fixed 
                        location of facilities, high 
                        mobilization costs, or similar economic 
                        factors.
          (3) Determinations with respect to awards or 
        contracts.--Determinations made pursuant to paragraph 
        (1) may be made for individual awards or contracts, any 
        part of an award or contract or task order, or for 
        classes of awards or contracts or task orders.
          (4) Increasing prime contracting opportunities for 
        small business concerns.--
                  (A) Description of covered proposed 
                procurements.--The requirements of this 
                paragraph shall apply to a proposed procurement 
                that includes in its statement of work goods or 
                services currently being supplied or performed 
                by a small business concern and, as determined 
                by the Administrator--
                          (i) is in a quantity or of an 
                        estimated dollar value which makes the 
                        participation of a small business 
                        concern as a prime contractor unlikely;
                          (ii) in the case of a proposed 
                        procurement for construction, seeks to 
                        bundle or consolidate discrete 
                        construction projects; or
                          (iii) is a solicitation that involves 
                        an unnecessary or unjustified bundling 
                        of contract requirements.
                  (B) Notice to procurement center 
                representatives.--With respect to proposed 
                procurements described in subparagraph (A), at 
                least 30 days before issuing a solicitation and 
                concurrent with other processing steps required 
                before issuing the solicitation, the 
                contracting agency shall provide a copy of the 
                proposed procurement to the procurement center 
                representative of the contracting agency (as 
                described in subsection (l)) along with a 
                statement explaining--
                          (i) why the proposed procurement 
                        cannot be divided into reasonably small 
                        lots (not less than economic production 
                        runs) to permit offers on quantities 
                        less than the total requirement;
                          (ii) why delivery schedules cannot be 
                        established on a realistic basis that 
                        will encourage the participation of 
                        small business concerns in a manner 
                        consistent with the actual requirements 
                        of the Government;
                          (iii) why the proposed procurement 
                        cannot be offered to increase the 
                        likelihood of the participation of 
                        small business concerns;
                          (iv) in the case of a proposed 
                        procurement for construction, why the 
                        proposed procurement cannot be offered 
                        as separate discrete projects; or
                          (v) why the contracting agency has 
                        determined that the bundling of 
                        contract requirements is necessary and 
                        justified.
                  (C) Alternatives to increase prime 
                contracting opportunities for small business 
                concerns.--If the procurement center 
                representative believes that the proposed 
                procurement will make the participation of 
                small business concerns as prime contractors 
                unlikely, the procurement center 
                representative, within 15 days after receiving 
                the statement described in subparagraph (B), 
                shall recommend to the contracting agency 
                alternative procurement methods for increasing 
                prime contracting opportunities for small 
                business concerns.
                  (D) Failure to agree on an alternative 
                procurement method.--If the procurement center 
                representative and the contracting agency fail 
                to agree on an alternative procurement method, 
                the Administrator shall submit the matter to 
                the head of the appropriate department or 
                agency for a determination.
          (5) Contracts for sale of Government property.--With 
        respect to a contract for the sale of Government 
        property, small business concerns shall receive any 
        such contract if, in the determination of the 
        Administrator and the disposal agency, the award of 
        such contract is in the interest of assuring that a 
        fair proportion of the total sales of Government 
        property be made to small business concerns.
          (6) Sale of electrical power or other property.--
        Nothing in this subsection shall be construed to change 
        any preferences or priorities established by law with 
        respect to the sale of electrical power or other 
        property by the Federal Government.
          (7) Costs exceeding fair market price.--A contract 
        may not be awarded under this subsection if the cost of 
        the contract to the awarding agency exceeds a fair 
        market price.
  (b) With respect to any work to be performed the amount of 
which would exceed the maximum amount of any contract for which 
a surety may be guaranteed against loss under section 411 of 
the Small Business Investment Act of 1958 (15 U.S.C. 694(b)), 
the contracting procurement agency shall, to the extent 
practicable, place contracts so as to allow more than one small 
business concern to perform such work.
  (c)(1) As used in this subsection:
          (A) The term ``Committee'' means the Committee for 
        Purchase from the Blind and Other Severely Handicapped 
        established under the first section of the Act entitled 
        ``An Act to create a Committee on Purchases of Blind-
        made Products, and for other purposes'', approved June 
        25, 1938 (41 U.S.C. 46).
          (B) The term ``public or private organization for the 
        handicapped'' has the same meaning given such term in 
        section 3(e).
          (C) The term ``handicapped individual'' has the same 
        meaning given such term in section 3(f).
  (2)(A) During fiscal year 1995, public or private 
organizations for the handicapped shall be eligible to 
participate in programs authorized under this section in an 
aggregate amount not to exceed $40,000,000.
  (B) None of the amounts authorized for participation by 
subparagraph (A) may be placed on the procurement list 
maintained by the Committee pursuant to section 2 of the Act 
entitled ``An Act to create a Committee on Purchases of Blind-
made Products, and for other purposes'', approved June 25, 1938 
(41 U.S.C. 47).
  (3) The Administrator shall monitor and evaluate such 
participation.
  (4)(A) Not later than ten days after the announcement of a 
proposed award of a contract by an agency or department to a 
public or private organization for the handicapped, a for-
profit small business concern that has experienced or is likely 
to experience severe economic injury as the result of the 
proposed award may file an appeal of the proposed award with 
the Administrator.
  (B) If such a concern files an appeal of a proposed award 
under subparagraph (A) and the Administrator, after 
consultation with the Executive Director of the Committee, 
finds that the concern has experienced or is likely to 
experience severe economic injury as the result of the proposed 
award, not later than thirty days after the filing of the 
appeal, the Administration shall require each agency and 
department having procurement powers to take such action as may 
be appropriate to alleviate economic injury sustained or likely 
to be sustained by the concern.
  (5) Each agency and department having procurement powers 
shall report to the Office of Federal Procurement Policy each 
time a contract subject to paragraph (2)(A) is entered into, 
and shall include in its report the amount of the next higher 
bid submitted by a for-profit small business concern. The 
Office of Federal Procurement Policy shall collect data 
reported under the preceding sentence through the Federal 
procurement data system and shall report to the Administration 
which shall notify all such agencies and departments when the 
maximum amount of awards authorized under paragraph (2)(A) has 
been made during any fiscal year.
  (6) For the purpose of this subsection, a contract may be 
awarded only if at least 75 per centum of the direct labor 
performed on each item being produced under the contract in the 
sheltered workshop or performed in providing each type of 
service under the contract by the sheltered workshop is 
performed by handicapped individuals.
  (7) Agencies awarding one or more contracts to such an 
organization pursuant to the provisions of this subsection may 
use multiyear contracts, if appropriate.
  (d) For purposes of this section priority shall be given to 
the awarding of contracts and the placement of subcontracts to 
small business concerns which shall perform a substantial 
proportion of the production on those contracts and 
subcontracts within areas of concentrated unemployment or 
underemployment or within labor surplus areas. Notwithstanding 
any other provison of law, total labor surplus area set-asides 
pursuant to Defense Manpower Policy Number 4 (32A C.F.R. 
Chapter 1) or any successor policy shall be authorized if the 
Secretary or his designee specifically determines that there is 
a reasonable expectation that offers will be obtained from a 
sufficient number of eligible concerns so that awards will be 
made at reasonable prices. As soon as practicable and to the 
extent possible, in determining labor surplus areas, 
consideration shall be given to those persons who would be 
available for employment were suitable employment available. 
Until such definition reflects such number, the present 
criteria of such policy shall govern.
  (e) Procurement Strategies; Contract Bundling.--
          (1) In general.--To the maximum extent practicable, 
        procurement strategies used by a Federal department or 
        agency having contracting authority shall facilitate 
        the maximum participation of small business concerns as 
        prime contractors, subcontractors, and suppliers, and 
        each such Federal department or agency shall--
                  (A) provide opportunities for the 
                participation of small business concerns during 
                acquisition planning processes and in 
                acquisition plans; and
                  (B) invite the participation of the 
                appropriate Director of Small and Disadvantaged 
                Business Utilization in acquisition planning 
                processes and provide that Director access to 
                acquisition plans.
          (2) Market research.--
                  (A) In general.--Before proceeding with an 
                acquisition strategy that could lead to a 
                contract containing consolidated procurement 
                requirements, the head of an agency shall 
                conduct market research to determine whether 
                consolidation of the requirements is necessary 
                and justified.
                  (B) Factors.--For purposes of subparagraph 
                (A), consolidation of the requirements may be 
                determined as being necessary and justified if, 
                as compared to the benefits that would be 
                derived from contracting to meet those 
                requirements if not consolidated, the Federal 
                Government would derive from the consolidation 
                measurably substantial benefits, including any 
                combination of benefits that, in combination, 
                are measurably substantial. Benefits described 
                in the preceding sentence may include the 
                following:
                          (i) Cost savings.
                          (ii) Quality improvements.
                          (iii) Reduction in acquisition cycle 
                        times.
                          (iv) Better terms and conditions.
                          (v) Any other benefits.
                  (C) Reduction of costs not determinative.--
                The reduction of administrative or personnel 
                costs alone shall not be a justification for 
                bundling of contract requirements unless the 
                cost savings are expected to be substantial in 
                relation to the dollar value of the procurement 
                requirements to be consolidated.
          (3) Strategy specifications.--If the head of a 
        contracting agency determines that an acquisition plan 
        for a procurement involves a substantial bundling of 
        contract requirements, the head of a contracting agency 
        shall publish a notice on a public website that such 
        determination has been made not later than 7 days after 
        making such determination. Any solicitation for a 
        procurement related to the acquisition plan may not be 
        published earlier than 7 days after such notice is 
        published. Along with the publication of the 
        solicitation, the head of a contracting agency shall 
        publish a justification for the determination, which 
        shall include the following information:
                  (A) The specific benefits anticipated to be 
                derived from the bundling of contract 
                requirements and a determination that such 
                benefits justify the bundling.
                  (B) An identification of any alternative 
                contracting approaches that would involve a 
                lesser degree of bundling of contract 
                requirements.
                  (C) An assessment of--
                          (i) the specific impediments to 
                        participation by small business 
                        concerns as prime contractors that 
                        result from the bundling of contract 
                        requirements; and
                          (ii) the specific actions designed to 
                        maximize participation of small 
                        business concerns as subcontractors 
                        (including suppliers) at various tiers 
                        under the contract or contracts that 
                        are awarded to meet the requirements.
          (4) Contract teaming.--
                  (A) In general.--In the case of a 
                solicitation of offers for a bundled or 
                consolidated contract that is issued by the 
                head of an agency, a small business concern 
                that provides for use of a particular team of 
                subcontractors or a joint venture of small 
                business concerns may submit an offer for the 
                performance of the contract.
                  (B) Evaluation of offers.--The head of the 
                agency shall evaluate an offer described in 
                subparagraph (A) in the same manner as other 
                offers, with due consideration to the 
                capabilities of all of the proposed 
                subcontractors or members of the joint venture 
                as follows:
                          (i) Teams.--When evaluating an offer 
                        of a small business prime contractor 
                        that includes a proposed team of small 
                        business subcontractors, the head of 
                        the agency shall consider the 
                        capabilities and past performance of 
                        each first tier subcontractor that is 
                        part of the team as the capabilities 
                        and past performance of the small 
                        business prime contractor.
                          (ii) Joint ventures.--When evaluating 
                        an offer of a joint venture of small 
                        business concerns, if the joint venture 
                        does not demonstrate sufficient 
                        capabilities or past performance to be 
                        considered for award of a contract 
                        opportunity, the head of the agency 
                        shall consider the capabilities and 
                        past performance of each member of the 
                        joint venture as the capabilities and 
                        past performance of the joint venture.
                  (C) Status as a small business concern.--
                Participation of a small business concern in a 
                team or a joint venture under this paragraph 
                shall not affect the status of that concern as 
                a small business concern for any other purpose.
  (f) Contracting Preference for Small Business Concerns in a 
Major Disaster Area.--
          (1) Definition.--In this subsection, the term 
        ``disaster area'' means the area for which the 
        President has declared a major disaster, during the 
        period of the declaration.
          (2) Contracting preference.--An agency shall provide 
        a contracting preference for a small business concern 
        located in a disaster area if the small business 
        concern will perform the work required under the 
        contract in the disaster area.
          (3) Credit for meeting contracting goals.--If an 
        agency awards a contract to a small business concern 
        under the circumstances described in paragraph (2), the 
        value of the contract shall be doubled for purposes of 
        determining compliance with the goals for procurement 
        contracts under subsection (g)(1)(A).
  (g)
          (1) Governmentwide goals.--
                  (A) Establishment.--The President shall 
                annually establish Governmentwide goals for 
                procurement contracts awarded to small business 
                concerns, small business concerns owned and 
                controlled by service-disabled veterans, 
                qualified HUBZone small business concerns, 
                small business concerns owned and controlled by 
                socially and economically disadvantaged 
                individuals, and small business concerns owned 
                and controlled by women in accordance with the 
                following:
                          (i) The Governmentwide goal for 
                        participation by small business 
                        concerns shall be established at not 
                        less than 23 percent of the total value 
                        of all prime contract awards for each 
                        fiscal year. In meeting this goal, the 
                        Government shall ensure the 
                        participation of small business 
                        concerns from a wide variety of 
                        industries and from a broad spectrum of 
                        small business concerns within each 
                        industry.
                          (ii) The Governmentwide goal for 
                        participation by small business 
                        concerns owned and controlled by 
                        service-disabled veterans shall be 
                        established at not less than 3 percent 
                        of the total value of all prime 
                        contract and subcontract awards for 
                        each fiscal year.
                          (iii) The Governmentwide goal for 
                        participation by qualified HUBZone 
                        small business concerns shall be 
                        established at not less than 3 percent 
                        of the total value of all prime 
                        contract and subcontract awards for 
                        each fiscal year.
                          (iv) The Governmentwide goal for 
                        participation by small business 
                        concerns owned and controlled by 
                        socially and economically disadvantaged 
                        individuals shall be established at not 
                        less than 5 percent of the total value 
                        of all prime contract and subcontract 
                        awards for each fiscal year.
                          (v) The Governmentwide goal for 
                        participation by small business 
                        concerns owned and controlled by women 
                        shall be established at not less than 5 
                        percent of the total value of all prime 
                        contract and subcontract awards for 
                        each fiscal year.
                  (B) Achievement of governmentwide goals.--
                Each agency shall have an annual goal that 
                presents, for that agency, the maximum 
                practicable opportunity for small business 
                concerns, small business concerns owned and 
                controlled by service-disabled veterans, 
                qualified HUBZone small business concerns, 
                small business concerns owned and controlled by 
                socially and economically disadvantaged 
                individuals, and small business concerns owned 
                and controlled by women to participate in the 
                performance of contracts let by such agency. 
                The Small Business Administration and the 
                Administrator for Federal Procurement Policy 
                shall, when exercising their authority pursuant 
                to paragraph (2), insure that the cumulative 
                annual prime contract goals for all agencies 
                meet or exceed the annual Governmentwide prime 
                contract goal established by the President 
                pursuant to this paragraph.
  (2)(A) The head of each Federal agency shall, after 
consultation with the Administration, establish goals for the 
participation by small business concerns, by small business 
concerns owned and controlled by service-disabled veterans, by 
qualified HUBZone small business concerns, by small business 
concerns owned and controlled by socially and economically 
disadvantaged individuals, and by small business concerns owned 
and controlled by women in procurement contracts of such 
agency. Such goals shall separately address prime contract 
awards and subcontract awards for each category of small 
business covered.
  (B) Goals established under this subsection shall be jointly 
established by the Administration and the head of each Federal 
agency and shall realistically reflect the potential of small 
business concerns, small business concerns owned and controlled 
by service-disabled veterans, qualified HUBZone small business 
concerns, small business concerns owned and controlled by 
socially and economically disadvantaged individuals, and small 
business concerns owned and controlled by women to perform such 
contracts and to perform subcontracts under such contracts.
  (C) Whenever the Administration and the head of any Federal 
agency fail to agree on established goals, the disagreement 
shall be submitted to the Administrator for Federal Procurement 
Policy for final determination.
  (D) After establishing goals under this paragraph for a 
fiscal year, the head of each Federal agency shall develop a 
plan for achieving such goals at both the prime contract and 
the subcontract level, which shall apportion responsibilities 
among the agency's acquisition executives and officials. In 
establishing goals under this paragraph, the head of each 
Federal agency shall make a consistent effort to annually 
expand participation by small business concerns from each 
industry category in procurement contracts and subcontracts of 
such agency, including participation by small business concerns 
owned and controlled by service-disabled veterans, qualified 
HUBZone small business concerns, small business concerns owned 
and controlled by socially and economically disadvantaged 
individuals, and small business concerns owned and controlled 
by women.
          (E) The head of each Federal agency, in attempting to 
        attain expanded participation under subparagraph (D), 
        shall consider--
                  (i) contracts awarded as the result of 
                unrestricted competition; and
                  (ii) contracts awarded after competition 
                restricted to eligible small business concerns 
                under this section and under the program 
                established under section 8(a).
          (F)(i) Each procurement employee or program manager 
        described in clause (ii) shall communicate to the 
        subordinates of the procurement employee or program 
        manager the importance of achieving goals established 
        under subparagraph (A).
                  (ii) A procurement employee or program 
                manager described in this clause is a senior 
                procurement executive, senior program manager, 
                or Director of Small and Disadvantaged Business 
                Utilization of a Federal agency having 
                contracting authority.
  (3) First tier subcontracts that are awarded by Management 
and Operating contractors sponsored by the Department of Energy 
to small business concerns, small businesses concerns owned and 
controlled by service disabled veterans, qualified HUBZone 
small business concerns, small business concerns owned and 
controlled by socially and economically disadvantaged 
individuals, and small business concerns owned and controlled 
by women, shall be considered toward the annually established 
agency and Government-wide goals for procurement contracts 
awarded.
  (h) Reporting on Goals for Procurement Contracts Awarded to 
Small Business Concerns.--
          (1) Agency reports.--At the conclusion of each fiscal 
        year, the head of each Federal agency shall submit to 
        the Administrator a report describing--
                  (A) the extent of the participation by small 
                business concerns, small business concerns 
                owned and controlled by veterans (including 
                service-disabled veterans), qualified HUBZone 
                small business concerns, small business 
                concerns owned and controlled by socially and 
                economically disadvantaged individuals, and 
                small business concerns owned and controlled by 
                women in the procurement contracts of such 
                agency during such fiscal year;
                  (B) whether the agency achieved the goals 
                established for the agency under subsection 
                (g)(2) with respect to such fiscal year;
                  (C) any justifications for a failure to 
                achieve such goals; and
                  (D) a remediation plan with proposed new 
                practices to better meet such goals, including 
                analysis of factors leading to any failure to 
                achieve such goals.
          (2) Reports by administrator.--Not later than 60 days 
        after receiving a report from each Federal agency under 
        paragraph (1) with respect to a fiscal year, the 
        Administrator shall submit to the President and 
        Congress, and to make available on a public Web site, a 
        report that includes--
                  (A) a copy of each report submitted to the 
                Administrator under paragraph (1);
                  (B) a determination of whether each goal 
                established by the President under subsection 
                (g)(1) for such fiscal year was achieved;
                  (C) a determination of whether each goal 
                established by the head of a Federal agency 
                under subsection (g)(2) for such fiscal year 
                was achieved;
                  (D) the reasons for any failure to achieve a 
                goal established under paragraph (1) or (2) of 
                subsection (g) for such fiscal year and a 
                description of actions planned by the 
                applicable agency to address such failure, 
                including the Administrator's comments and 
                recommendations on the proposed remediation 
                plan; and
                  (E) for the Federal Government and each 
                Federal agency, an analysis of the number and 
                dollar amount of prime contracts awarded during 
                such fiscal year to--
                          (i) small business concerns--
                                  (I) in the aggregate;
                                  (II) through sole source 
                                contracts;
                                  (III) through competitions 
                                restricted to small business 
                                concerns; and
                                  (IV) through unrestricted 
                                competition;
                          (ii) small business concerns owned 
                        and controlled by service-disabled 
                        veterans--
                                  (I) in the aggregate;
                                  (II) through sole source 
                                contracts;
                                  (III) through competitions 
                                restricted to small business 
                                concerns;
                                  (IV) through competitions 
                                restricted to small business 
                                concerns owned and controlled 
                                by service-disabled veterans; 
                                and
                                  (V) through unrestricted 
                                competition;
                          (iii) qualified HUBZone small 
                        business concerns--
                                  (I) in the aggregate;
                                  (II) through sole source 
                                contracts;
                                  (III) through competitions 
                                restricted to small business 
                                concerns;
                                  (IV) through competitions 
                                restricted to qualified HUBZone 
                                small business concerns;
                                  (V) through unrestricted 
                                competition where a price 
                                evaluation preference was used; 
                                and
                                  (VI) through unrestricted 
                                competition where a price 
                                evaluation preference was not 
                                used;
                          (iv) small business concerns owned 
                        and controlled by socially and 
                        economically disadvantaged 
                        individuals--
                                  (I) in the aggregate;
                                  (II) through sole source 
                                contracts;
                                  (III) through competitions 
                                restricted to small business 
                                concerns;
                                  (IV) through competitions 
                                restricted to small business 
                                concerns owned and controlled 
                                by socially and economically 
                                disadvantaged individuals;
                                  (V) through unrestricted 
                                competition; and
                                  (VI) by reason of that 
                                concern's certification as a 
                                small business owned and 
                                controlled by socially and 
                                economically disadvantaged 
                                individuals;
                          (v) small business concerns owned by 
                        an Indian tribe (as such term is 
                        defined in section 8(a)(13)) other than 
                        an Alaska Native Corporation--
                                  (I) in the aggregate;
                                  (II) through sole source 
                                contracts;
                                  (III) through competitions 
                                restricted to small business 
                                concerns;
                                  (IV) through competitions 
                                restricted to small business 
                                concerns owned and controlled 
                                by socially and economically 
                                disadvantaged individuals; and
                                  (V) through unrestricted 
                                competition;
                          (vi) small business concerns owned by 
                        a Native Hawaiian Organization--
                                  (I) in the aggregate;
                                  (II) through sole source 
                                contracts;
                                  (III) through competitions 
                                restricted to small business 
                                concerns;
                                  (IV) through competitions 
                                restricted to small business 
                                concerns owned and controlled 
                                by socially and economically 
                                disadvantaged individuals; and
                                  (V) through unrestricted 
                                competition;
                          (vii) small business concerns owned 
                        by an Alaska Native Corporation--
                                  (I) in the aggregate;
                                  (II) through sole source 
                                contracts;
                                  (III) through competitions 
                                restricted to small business 
                                concerns;
                                  (IV) through competitions 
                                restricted to small business 
                                concerns owned and controlled 
                                by socially and economically 
                                disadvantaged individuals; and
                                  (V) through unrestricted 
                                competition; and
                          (viii) small business concerns owned 
                        and controlled by women--
                                  (I) in the aggregate;
                                  (II) through competitions 
                                restricted to small business 
                                concerns;
                                  (III) through competitions 
                                restricted using the authority 
                                under section 8(m)(2);
                                  (IV) through competitions 
                                restricted using the authority 
                                under section 8(m)(2) and in 
                                which the waiver authority 
                                under section 8(m)(3) was used;
                                  (V) through sole source 
                                contracts awarded using the 
                                authority under subsection 
                                8(m)(7);
                                  (VI) through sole source 
                                contracts awarded using the 
                                authority under section 
                                8(m)(8);
                                  (VII) by industry for 
                                contracts described in 
                                subclause (III), (IV), (V), or 
                                (VI); and
                                  (VIII) through unrestricted 
                                competition; and
                  (F) for the Federal Government, the number, 
                dollar amount, and distribution with respect to 
                the North American Industry Classification 
                System of subcontracts awarded during such 
                fiscal year to small business concerns, small 
                business concerns owned and controlled by 
                service-disabled veterans, qualified HUBZone 
                small business concerns, small business 
                concerns owned and controlled by socially and 
                economically disadvantaged individuals, and 
                small business concerns owned and controlled by 
                women, provided that such information is 
                publicly available through data systems 
                developed pursuant to the Federal Funding 
                Accountability and Transparency Act of 2006 
                (Public Law 109-282), or otherwise available as 
                provided in paragraph (3).
          (3) Procurement data.--
                  (A) Federal procurement data system.--
                          (i) In general.--To assist in the 
                        implementation of this section, the 
                        Administrator shall have access to 
                        information collected through the 
                        Federal Procurement Data System, 
                        Federal Subcontracting Reporting 
                        System, or any new or successor system.
                          (ii) GSA report.--On the date that 
                        the Administrator makes available the 
                        report required under paragraph (2), 
                        the Administrator of the General 
                        Services Administration shall submit to 
                        the President and Congress, and shall 
                        make available on a public website, a 
                        report in the same form and manner, and 
                        including the same information, as the 
                        report required under paragraph (2). 
                        The report shall include all 
                        procurements made for the period 
                        covered by the report and may not 
                        exclude any contract awarded.
                  (B) Agency procurement data sources.--To 
                assist in the implementation of this section, 
                the head of each contracting agency shall 
                provide, upon request of the Administrator, 
                procurement information collected through 
                agency data collection sources in existence at 
                the time of the request. Contracting agencies 
                shall not be required to establish new data 
                collection systems to provide such data.
  (i) Nothing in this Act or any other provision of law 
precludes exclusive small business set-asides for procurements 
of architectural and engineering services, research, 
development, test and evaluation, and each Federal agency is 
authorized to develop such set-asides to further the interests 
of small business in those areas.
  (j)(1) Each contract for the purchase of goods and services 
that has an anticipated value greater than $2,500 but not 
greater than $100,000 shall be reserved exclusively for small 
business concerns unless the contracting officer is unable to 
obtain offers from two or more small business concerns that are 
competitive with market prices and are competitive with regard 
to the quality and delivery of the goods or services being 
purchased.
  (2) In carrying out paragraph (1), a contracting officer 
shall consider a responsive offer timely received from an 
eligible small business offeror.
  (3) Nothing in paragraph (1) shall be construed as precluding 
an award of a contract with a value not greater than $100,000 
under the authority of subsection (a) of section 8 of this Act, 
section 2323 of title 10, United States Code, section 712 of 
the Business Opportunity Development Reform Act of 1988 (Public 
Law 100-656; 15 U.S.C. 644 note), or section 7102 of the 
Federal Acquisition Streamlining Act of 1994.
  (k) There is hereby established in each Federal agency having 
procurement powers an office to be known as the ``Office of 
Small and Disadvantaged Business Utilization''. The management 
of each such office shall be vested in an officer or employee 
of such agency, with experience serving in any combination of 
the following roles: program manager, deputy program manager, 
or assistant program manager for Federal acquisition program; 
chief engineer, systems engineer, assistant engineer, or 
product support manager for Federal acquisition program; 
Federal contracting officer; small business technical advisor; 
contracts administrator for Federal Government contracts; 
attorney specializing in Federal procurement law; small 
business liaison officer; officer or employee who managed 
Federal Government contracts for a small business; or 
individual whose primary responsibilities were for the 
functions and duties of section 8, 15, 31, 36, or 44 of this 
Act. Such officer or employee--
          (1) shall be known as the ``Director of Small and 
        Disadvantaged Business Utilization'' for such agency;
          (2) shall be appointed by the head of such agency to 
        a position that is a Senior Executive Service position 
        (as such term is defined under section 3132(a) of title 
        5, United States Code), except that, for any agency in 
        which the positions of Chief Acquisition Officer and 
        senior procurement executive (as such terms are defined 
        under section 44(a) of this Act) are not Senior 
        Executive Service positions, the Director of Small and 
        Disadvantaged Business Utilization may be appointed to 
        a position compensated at not less than the minimum 
        rate of basic pay payable for grade GS-15 of the 
        General Schedule under section 5332 of such title 
        (including comparability payments under section 5304 of 
        such title);
          (3) shall be responsible only to (including with 
        respect to performance appraisals), and report directly 
        and exclusively to, the head of such agency or to the 
        deputy of such head, except that the Director for the 
        Office of the Secretary of Defense shall be responsible 
        only to (including with respect to performance 
        appraisals), and report directly and exclusively to, 
        such Secretary or the Secretary's designee;
          (4) shall be responsible for the implementation and 
        execution of the functions and duties under sections 8, 
        15, 31, 36, and 44 of this Act which relate to such 
        agency;
          (5) shall identify proposed solicitations that 
        involve significant bundling of contract requirements, 
        and work with the agency acquisition officials and the 
        Administration to revise the procurement strategies for 
        such proposed solicitations where appropriate to 
        increase the probability of participation by small 
        businesses as prime contractors, or to facilitate small 
        business participation as subcontractors and suppliers, 
        if a solicitation for a bundled contract is to be 
        issued;
          (6) shall assist small business concerns to obtain 
        payments, required late payment interest penalties, or 
        information regarding payments due to such concerns 
        from an executive agency or a contractor, in conformity 
        with chapter 39 of title 31, United States Code, or any 
        other protection for contractors or subcontractors 
        (including suppliers) that is included in the Federal 
        Acquisition Regulation or any individual agency 
        supplement to such Government-wide regulation;
          (7) shall have supervisory authority over personnel 
        of such agency to the extent that the functions and 
        duties of such personnel relate to functions and duties 
        under sections 8, 15, 31, 36, and 44 of this Act;
          (8) shall assign a small business technical adviser 
        to each office to which the Administration has assigned 
        a procurement center representative--
                  (A) who shall be a full-time employee of the 
                procuring activity and shall be well qualified, 
                technically trained and familiar with the 
                supplies or services purchased at the activity; 
                and
                  (B) whose principal duty shall be to assist 
                the Administration procurement center 
                representative in his duties and functions 
                relating to sections 8, 15, 31, 36, and 44 of 
                this Act,
          (9) shall cooperate, and consult on a regular basis, 
        with the Administration with respect to carrying out 
        the functions and duties described in paragraph (4) of 
        this subsection;
          (10) shall make recommendations to contracting 
        officers as to whether a particular contract 
        requirement should be awarded pursuant to subsection 
        (a), section 8, 15, 31, or 36 of this Act, or section 
        2323 of title 10, United States Code, which shall be 
        made with due regard to the requirements of subsection 
        (m), and the failure of the contracting officer to 
        accept any such recommendations shall be documented and 
        included within the appropriate contract file;
          (11) shall review and advise such agency on any 
        decision to convert an activity performed by a small 
        business concern to an activity performed by a Federal 
        employee;
          (12) shall provide to the Chief Acquisition Officer 
        and senior procurement executive of such agency advice 
        and comments on acquisition strategies, market 
        research, and justifications related to section 44 of 
        this Act;
          (13) may provide training to small business concerns 
        and contract specialists, except that such training may 
        only be provided to the extent that the training does 
        not interfere with the Director carrying out other 
        responsibilities under this subsection;
          (14) shall receive unsolicited proposals and, when 
        appropriate, forward such proposals to personnel of the 
        activity responsible for reviewing such proposals;
          (15) shall carry out exclusively the duties 
        enumerated in this Act, and shall, while the Director, 
        not hold any other title, position, or responsibility, 
        except as necessary to carry out responsibilities under 
        this subsection;
          (16) shall submit, each fiscal year, to the Committee 
        on Small Business of the House of Representatives and 
        the Committee on Small Business and Entrepreneurship of 
        the Senate a report describing--
                  (A) the training provided by the Director 
                under paragraph (13) in the most recently 
                completed fiscal year;
                  (B) the percentage of the budget of the 
                Director used for such training in the most 
                recently completed fiscal year;
                  (C) the percentage of the budget of the 
                Director used for travel in the most recently 
                completed fiscal year; and
                  (D) any failure of the agency to comply with 
                section 8, 15, 31, or 36;
          (17) shall, when notified by a small business concern 
        prior to the award of a contract that the small 
        business concern believes that a solicitation, request 
        for proposal, or request for quotation unduly restricts 
        the ability of the small business concern to compete 
        for the award--
                  (A) submit the notice of the small business 
                concern to the contracting officer and, if 
                necessary, recommend ways in which the 
                solicitation, request for proposal, or request 
                for quotation may be altered to increase the 
                opportunity for competition;
                  (B) inform the advocate for competition of 
                such agency (as established under section 1705 
                of title 41, United States Code, or section 
                2318 of title 10, United States Code) of such 
                notice; and
                  (C) ensure that the small business concern is 
                aware of other resources and processes 
                available to address unduly restrictive 
                provisions in a solicitation, request for 
                proposal, or request for quotation, even if 
                such resources and processes are provided by 
                such agency, the Administration, the 
                Comptroller General, or a procurement technical 
                assistance program established under chapter 
                142 of title 10, United States Code;
          (18) shall review summary data provided by purchase 
        card issuers of purchases made by the agency greater 
        than the micro-purchase threshold (as defined under 
        section 1902 of title 41, United Stated Code) and less 
        than the simplified acquisition threshold to ensure 
        that the purchases have been made in compliance with 
        the provisions of this Act and have been properly 
        recorded in the Federal Procurement Data System, if the 
        method of payment is a purchase card issued by the 
        Department of Defense pursuant to section 2784 of title 
        10, United States Code, or by the head of an executive 
        agency pursuant to section 1909 of title 41, United 
        States Code;
          (19) shall provide assistance to a small business 
        concern awarded a contract or subcontract under this 
        Act or under title 10 or title 41, United States Code, 
        in finding resources for education and training on 
        compliance with contracting regulations (including the 
        Federal Acquisition Regulation) after award of such a 
        contract or subcontract; [and]
          (20) shall review all subcontracting plans required 
        by paragraph (4) or (5) of section 8(d) to ensure that 
        the plan provides maximum practicable opportunity for 
        small business concerns to participate in the 
        performance of the contract to which the plan 
        applies[.];
          (21) shall 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.
This subsection shall not apply to the Administration.
  (l) Procurement Center Representatives.--
          (1) Assignment and role.--The Administrator shall 
        assign to each major procurement center a procurement 
        center representative with such assistance as may be 
        appropriate.
          (2) Activities.--A procurement center representative 
        is authorized to--
          (A) attend any provisioning conference or similar 
        evaluation session during which determinations are made 
        as to whether requirements are to be procured through 
        other than full and open competition and make 
        recommendations with respect to such requirements to 
        the members of such conference or session;
                  (B) review, at any time, barriers to small 
                business participation in Federal contracting 
                previously imposed on goods and services 
                through acquisition method coding or similar 
                procedures, and recommend to personnel of the 
                appropriate activity the prompt reevaluation of 
                such barriers;
                  (C) review barriers to small business 
                participation in Federal contracting arising 
                out of restrictions on the rights of the United 
                States in technical data, and, when 
                appropriate, recommend that personnel of the 
                appropriate activity initiate a review of the 
                validity of such an asserted restriction;
                  (D) review any bundled or consolidated 
                solicitation or contract in accordance with 
                this Act;
                  (E) have access to procurement records and 
                other data of the procurement center 
                commensurate with the level of such 
                representative's approved security clearance 
                classification, with such data provided upon 
                request in electronic format, when available;
                  (F) receive unsolicited proposals from small 
                business concerns and transmit such proposals 
                to personnel of the activity responsible for 
                reviewing such proposals, who shall furnish the 
                procurement center representative with 
                information regarding the disposition of any 
                such proposal;
                  (G) consult with the Director the Office of 
                Small and Disadvantaged Business Utilization of 
                that agency and the agency personnel described 
                in paragraph (7) and (8) of subsection (k) with 
                regard to agency insourcing decisions covered 
                by subsection (k)(11);
                  (H) be an advocate for the maximum 
                practicable utilization of small business 
                concerns in Federal contracting, including by 
                advocating against the consolidation or 
                bundling of contract requirements when not 
                justified;
                  (I) assist small business concerns with 
                finding resources for education and training on 
                compliance with contracting regulations 
                (including the Federal Acquisition Regulation) 
                after award of a contract or subcontract; [and]
                  (J) 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
                  [(J)] (L) carry out any other responsibility 
                assigned by the Administrator.
          (3) Appeals.--A procurement center representative is 
        authorized to appeal the failure to act favorably on 
        any recommendation made pursuant to paragraph (2). Such 
        appeal shall be filed and processed in the same manner 
        and subject to the same conditions and limitations as 
        an appeal filed by the Administrator pursuant to 
        subsection (a).
          (4) The Administration shall assign and co-locate at 
        least two small business technical advisers to each 
        major procurement center in addition to such other 
        advisers as may be authorized from time to time. The 
        sole duties of such advisers shall be to assist the 
        procurement center representative for the center to 
        which such advisers are assigned in carrying out the 
        functions described in paragraph (2) and the 
        representatives referred to in subsection (k)(6).
          (5) Position requirements.--
                  (A) In general.--A procurement center 
                representative assigned under this subsection 
                shall--
                          (i) be a full-time employee of the 
                        Administration;
                          (ii) be fully qualified, technically 
                        trained, and familiar with the goods 
                        and services procured by the major 
                        procurement center to which that 
                        representative is assigned; and
                          (iii) have the certification 
                        described in subparagraph (C).
                  (B) Compensation.--The Administrator shall 
                establish personnel positions for procurement 
                center representatives assigned under this 
                subsection, which are classified at a grade 
                level of the General Schedule sufficient to 
                attract and retain highly qualified personnel.
                  (C) Certification requirements.--
                          (i) In general.--Consistent with the 
                        requirements of clause (ii), a 
                        procurement center representative shall 
                        have a Level III Federal Acquisition 
                        Certification in Contracting (or any 
                        successor certification) or the 
                        equivalent Department of Defense 
                        certification, except that any person 
                        serving in such a position on or before 
                        January 3, 2013, may continue to serve 
                        in that position for a period of 5 
                        years without the required 
                        certification.
                          (ii) Delay of certification 
                        requirements.--
                                  (I) Timing.--The 
                                certification described in 
                                clause (i) is not required for 
                                any person serving as a 
                                procurement center 
                                representative until the date 
                                that is one calendar year after 
                                the date such person is 
                                appointed as a procurement 
                                center representative.
                                  (II) Application.--The 
                                requirements of subclause (I) 
                                shall--
                                          (aa) be included in 
                                        any initial job posting 
                                        for the position of a 
                                        procurement center 
                                        representative; and
                                          (bb) apply to any 
                                        person appointed as a 
                                        procurement center 
                                        representative after 
                                        January 3, 2013.
          (6) Major procurement center defined.--For purposes 
        of this subsection, the term ``major procurement 
        center'' means a procurement center that, in the 
        opinion of the Administrator, purchases substantial 
        dollar amounts of goods or services, including goods or 
        services that are commercially available.
          (7) Training.--
                  (A) Authorization.--At such times as the 
                Administrator deems appropriate, the breakout 
                procurement center representative shall conduct 
                familiarization sessions for contracting 
                officers and other appropriate personnel of the 
                procurement center to which such representative 
                is assigned. Such sessions shall acquaint the 
                participants with the provisions of this 
                subsection and shall instruct them in methods 
                designed to further the purposes of such 
                subsection.
                  (B) Limitation.--A procurement center 
                representative may provide training under 
                subparagraph
    (A) only to the extent that the training does not interfere 
with the representative carrying out other activities under 
this subsection.
          (8) Annual briefing and report.--A procurement center 
        representative shall prepare and personally deliver an 
        annual briefing and report to the head of the 
        procurement center to which such representative is 
        assigned. Such briefing and report shall detail the 
        past and planned activities of the representative and 
        shall contain such recommendations for improvement in 
        the operation of the center as may be appropriate. The 
        head of such center shall personally receive such 
        briefing and report and shall, within 60 calendar days 
        after receipt, respond, in writing, to each 
        recommendation made by such representative.
          (9) Scope of review.--The Administrator--
                  (A) may not limit the scope of review by the 
                procurement center representative for any 
                solicitation of a contract or task order 
                without regard to whether the contract or task 
                order or part of the contract or task order is 
                set aside for small business concerns, whether 
                1 or more contracts or task order awards are 
                reserved for small business concerns under a 
                multiple award contract, or whether or not the 
                solicitation would result in a bundled or 
                consolidated contract (as defined in subsection 
                (s)) or a bundled or consolidated task order; 
                and
                  (B) shall, unless the contracting agency 
                requests a review, limit the scope of review by 
                the procurement center representative for any 
                solicitation of a contract or task order if 
                such solicitation is awarded by or for the 
                Department of Defense and--
                          (i) is conducted pursuant to section 
                        22 of the Arms Export Control Act (22 
                        U.S.C. 2762);
                          (ii) is a humanitarian operation as 
                        defined in section 401(e) of title 10, 
                        United States Code;
                          (iii) is for a contingency operation, 
                        as defined in section 101(a)(13) of 
                        title 10, United States Code;
                          (iv) is to be awarded pursuant to an 
                        agreement with the government of a 
                        foreign country in which Armed Forces 
                        of the United States are deployed; or
                          (v) both the place of award and the 
                        place of performance are outside of the 
                        United States and its territories.
  (m)(1) Each agency subject to the requirements of section 
2323 of title 10, United States Code, shall, when implementing 
such requirements--
          (A) establish policies and procedures that insure 
        that there will be no reduction in the number of dollar 
        value of contracts awarded pursuant to this section and 
        section 8
    (a) in order to achieve any goal or other program 
objective; and
          (B) assure that such requirements will not alter or 
        change the procurement process used to implement this 
        section or section 8(a).
  (2) All procurement center representatives (including those 
referred to in subsection (k)(6)), in addition to such other 
duties as may be assigned by the Administrator, shall--
          (A) monitor the performance of the procurement 
        activities to which they are assigned to ascertain the 
        degree of compliance with the requirements of paragraph 
        (1);
          (B) report to their immediate supervisors all 
        instances of noncompliance with such requirements; and
          (C) increase, insofar as possible, the number and 
        dollar value of procurements that may be used for the 
        programs established under this section, section 8(a), 
        and section 2323 of title 10, United States Code.
  (n) For purposes of this section, the determination of labor 
surplus areas shall be made on the basis of the criteria in 
effect at the time of the determination, except that any 
minimum population criteria shall not exceed twenty-five 
thousand. Such determination, as modified by the preceding 
sentence, shall be made by the Secretary of Labor.
  (o) Limitations on Subcontracting.--A concern may not be 
awarded a contract under subsection
    (a) as a small business concern unless the concern agrees 
to satisfy the requirements of section 46.
  (p) Access to Data.--
          (1) Bundled contract defined.--In this subsection, 
        the term ``bundled contract'' has the meaning given 
        such term in section 3(o)(1).
          (2) Database.--
                  (A) In general.--Not later than 180 days 
                after the date of the enactment of this 
                subsection, the Administrator of the Small 
                Business Administration shall develop and shall 
                thereafter maintain a database containing data 
                and information regarding--
                          (i) each bundled contract awarded by 
                        a Federal agency; and
                          (ii) each small business concern that 
                        has been displaced as a prime 
                        contractor as a result of the award of 
                        such a contract.
          (3) Analysis.--For each bundled contract that is to 
        be recompeted as a bundled contract, the Administrator 
        shall determine--
                  (A) the amount of savings and benefits (in 
                accordance with subsection (e)) achieved under 
                the bundling of contract requirements; and
                  (B) whether such savings and benefits will 
                continue to be realized if the contract remains 
                bundled, and whether such savings and benefits 
                would be greater if the procurement 
                requirements were divided into separate 
                solicitations suitable for award to small 
                business concerns.
          (4) Annual report on contract bundling.--
                  (A) In general.--Not later than 1 year after 
                the date of the enactment of this paragraph, 
                and annually in March thereafter, the 
                Administration shall transmit a report on 
                contract bundling to the Committees on Small 
                Business of the House of Representatives and 
                the Senate.
                  (B) Contents.--Each report transmitted under 
                subparagraph (A) shall include--
                          (i) data on the number, arranged by 
                        industrial classification, of small 
                        business concerns displaced as prime 
                        contractors as a result of the award of 
                        bundled contracts by Federal agencies; 
                        and
                          (ii) a description of the activities 
                        with respect to previously bundled 
                        contracts of each Federal agency during 
                        the preceding year, including--
                                  (I) data on the number and 
                                total dollar amount of all 
                                contract requirements that were 
                                bundled; and
                                  (II) with respect to each 
                                bundled contract, data or 
                                information on--
                                          (aa) the 
                                        justification for the 
                                        bundling of contract 
                                        requirements;
                                          (bb) the cost savings 
                                        realized by bundling 
                                        the contract 
                                        requirements over the 
                                        life of the contract;
                                          (cc) the extent to 
                                        which maintaining the 
                                        bundled status of 
                                        contract requirements 
                                        is projected to result 
                                        in continued cost 
                                        savings;
                                          (dd) the extent to 
                                        which the bundling of 
                                        contract requirements 
                                        complied with the 
                                        contracting agency's 
                                        small business 
                                        subcontracting plan, 
                                        including the total 
                                        dollar value awarded to 
                                        small business concerns 
                                        as subcontractors and 
                                        the total dollar value 
                                        previously awarded to 
                                        small business concerns 
                                        as prime contractors; 
                                        and
                                          (ee) the impact of 
                                        the bundling of 
                                        contract requirements 
                                        on small business 
                                        concerns unable to 
                                        compete as prime 
                                        contractors for the 
                                        consolidated 
                                        requirements and on the 
                                        industries of such 
                                        small business 
                                        concerns, including a 
                                        description of any 
                                        changes to the 
                                        proportion of any such 
                                        industry that is 
                                        composed of small 
                                        business concerns.
          (5) Access to data.--
                  (A) Federal procurement data system.--To 
                assist in the implementation of this section, 
                the Administration shall have access to 
                information collected through the Federal 
                Procurement Data System.
                  (B) Agency procurement data sources.--To 
                assist in the implementation of this section, 
                the head of each contracting agency shall 
                provide, upon request of the Administration, 
                procurement information collected through 
                existing agency data collection sources.
  (q) Reports Related to Procurement Center Representatives.--
          (1) Teaming and joint venture requirements.--
                  (A) In general.--Each Federal agency shall 
                include in each solicitation for any multiple 
                award contract above the substantial bundling 
                threshold of the Federal agency a provision 
                soliciting bids from any responsible source, 
                including responsible small business concerns 
                and teams or joint ventures of small business 
                concerns.
                  (B) Teams.--When evaluating an offer of a 
                small business prime contractor that includes a 
                proposed team of small business subcontractors 
                for any multiple award contract above the 
                substantial bundling threshold of the Federal 
                agency, the head of the agency shall consider 
                the capabilities and past performance of each 
                first tier subcontractor that is part of the 
                team as the capabilities and past performance 
                of the small business prime contractor.
                  (C) Joint ventures.--When evaluating an offer 
                of a joint venture of small business concerns 
                for any multiple award contract above the 
                substantial bundling threshold of the Federal 
                agency, if the joint venture does not 
                demonstrate sufficient capabilities or past 
                performance to be considered for award of a 
                contract opportunity, the head of the agency 
                shall consider the capabilities and past 
                performance of each member of the joint venture 
                as the capabilities and past performance of the 
                joint venture.
          (2) Policies on reduction of contract bundling.--
                  (A) In general.--Not later than 1 year after 
                the date of enactment of this subsection, the 
                Federal Acquisition Regulatory Council 
                established under section 25(a) of the Office 
                of Federal Procurement Policy Act (41 U.S.C. 
                4219(a)) shall amend the Federal Acquisition 
                Regulation issued under section 25 of such Act 
                to--
                          (i) establish a Government-wide 
                        policy regarding contract bundling, 
                        including regarding the solicitation of 
                        teaming and joint ventures under 
                        paragraph (1); and
                          (ii) require that the policy 
                        established under clause (i) be 
                        published on the website of each 
                        Federal agency.
                  (B) Rationale for contract bundling.--Not 
                later than 30 days after the date on which the 
                head of a Federal agency submits data 
                certifications to the Administrator for Federal 
                Procurement Policy, the head of the Federal 
                agency shall publish on the website of the 
                Federal agency a list and rationale for any 
                bundled contract for which the Federal agency 
                solicited bids or that was awarded by the 
                Federal agency.
          (3) Reporting.--Not later than 90 days after the date 
        of enactment of this subsection, and every 3 years 
        thereafter, the Administrator 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 procurement 
        center representatives and commercial market 
        representatives, which shall--
                  (A) identify each area for which the 
                Administration has assigned a procurement 
                center representative or a commercial market 
                representative;
                  (B) explain why the Administration selected 
                the areas identified under subparagraph (A); 
                and
                  (C) describe the activities performed by 
                procurement center representatives and 
                commercial market representatives.
  (r) Multiple Award Contracts.--Not later than 1 year after 
the date of enactment of this subsection, the Administrator for 
Federal Procurement Policy and the Administrator, in 
consultation with the Administrator of General Services, shall, 
by regulation, establish guidance under which Federal agencies 
may, at their discretion--
          (1) set aside part or parts of a multiple award 
        contract for small business concerns, including the 
        subcategories of small business concerns identified in 
        subsection (g)(2);
          (2) notwithstanding the fair opportunity requirements 
        under section 2304c(b) of title 10, United States Code, 
        and section 303J(b) of the Federal Property and 
        Administrative Services Act of 1949 (41 U.S.C. 
        253j(b)), set aside orders placed against multiple 
        award contracts for small business concerns, including 
        the subcategories of small business concerns identified 
        in subsection (g)(2); and
          (3) reserve 1 or more contract awards for small 
        business concerns under full and open multiple award 
        procurements, including the subcategories of small 
        business concerns identified in subsection (g)(2).
  (s) Data Quality Improvement Plan.--
          (1) In general.--Not later than October 1, 2015, the 
        Administrator of the Small Business Administration, in 
        consultation with the Small Business Procurement 
        Advisory Council, the Administrator for Federal 
        Procurement Policy, and the Administrator of General 
        Services, shall develop a plan to improve the quality 
        of data reported on bundled or consolidated contracts 
        in the Federal procurement data system (described in 
        section 1122(a)(4)
    (A) of title 41, United States Code).
          (2) Plan requirements.--The plan shall--
                  (A) describe the roles and responsibilities 
                of the Administrator of the Small Business 
                Administration, each Director of Small and 
                Disadvantaged Business Utilization, the 
                Administrator for Federal Procurement Policy, 
                the Administrator of General Services, senior 
                procurement executives, and Chief Acquisition 
                Officers in--
                          (i) improving the quality of data 
                        reported on bundled or consolidated 
                        contracts in the Federal procurement 
                        data system; and
                          (ii) contributing to the annual 
                        report required by subsection (p)(4);
                  (B) recommend changes to policies and 
                procedures, including training procedures of 
                relevant personnel, to properly identify and 
                mitigate the effects of bundled or consolidated 
                contracts;
                  (C) recommend requirements for periodic and 
                statistically valid data verification and 
                validation; and
                  (D) recommend clear data verification 
                responsibilities.
          (3) Plan submission.--The Administrator of the Small 
        Business Administration shall submit the plan to the 
        Committee on Small Business of the House of 
        Representatives and the Committee on Small Business and 
        Entrepreneurship of the Senate not later than December 
        1, 2016.
          (4) Implementation.--Not later than October 1, 2016, 
        the Administrator of the Small Business Administration 
        shall implement the plan described in this subsection.
          (5) Certification.--The Administrator shall annually 
        provide to the Committee on Small Business of the House 
        of Representatives and the Committee on Small Business 
        and Entrepreneurship of the Senate a certification of 
        the accuracy and completeness of data reported on 
        bundled and consolidated contracts.
          (6) Definitions.--In this subsection, the following 
        definitions apply:
                  (A) Chief acquisition officer; senior 
                procurement executive.--The terms ``Chief 
                Acquisition Officer'' and ``senior procurement 
                executive'' have the meanings given such terms 
                in section 44(a) of this Act.
                  (B) Bundled or consolidated contract.--The 
                term ``bundled or consolidated contract'' means 
                a bundled contract (as defined in section 3(o)) 
                or a contract resulting from the consolidation 
                of contracting requirements (as defined in 
                section 44(a)(2)).
  (t) GAO Report on Small Business Administration Programs in 
Puerto Rico.--Not later than one year after the date of 
enactment of this subsection, the Comptroller General of the 
United States shall submit to the Committee on Small Business 
of the House of Representatives and the Committee on Small 
Business and Entrepreneurship of the Senate a report on the 
application and utilization of contracting activities of the 
Administration (including contracting activities relating to 
HUBZone small business concerns) in Puerto Rico. The report 
shall also identify any provisions of Federal law that may 
create an obstacle to the efficient implementation of such 
contracting activities.
  (u) Post-Award Compliance Resources.--The Administrator shall 
provide to small business development centers and entities 
participating in the Procurement Technical Assistance 
Cooperative Agreement Program under chapter 142 of title 10, 
United States Code, and shall make available on the website of 
the Administration, a list of resources for small business 
concerns seeking education and assistance on compliance with 
contracting regulations (including the Federal Acquisition 
Regulation) after award of a contract or subcontract.
  (v) Regulatory Changes and Training Materials.--Not less than 
annually, the Administrator shall provide to the Defense 
Acquisition University (established under section 1746 of title 
10, United States Code), the Federal Acquisition Institute 
(established under section 1201 of title 41, United States 
Code), the individual responsible for mandatory training and 
education of the acquisition workforce of each agency 
(described under section 1703(f)(1)(C) of title 41, United 
States Code), small business development centers, and entities 
participating in the Procurement Technical Assistance 
Cooperative Agreement Program under chapter 142 of title 10, 
United States Code--
          (1) a list of all changes made in the prior year to 
        regulations promulgated--
                  (A) by the Administrator that affect Federal 
                acquisition; and
                  (B) by the Federal Acquisition Council that 
                implement amendments to this Act; and
          (2) any materials the Administrator has developed 
        that explain, train, or assist Federal agencies or 
        departments or small business concerns with compliance 
        with the regulations described in paragraph (1).

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