NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2012
[112th Congress Public Law 81]
[From the U.S. Government Printing Office]

Taken from the actual GPO text with unofficial annotation by the SBIR Insider for Title LI-- SBIR and STTR Reauthorization
[[Page 1297]]

         NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2012

[[Page 125 STAT. 1298]]

Public Law 112-81
112th Congress

                                 An Act


 
To authorize appropriations for fiscal year 2012 for military activities 
of the Department of Defense, for military construction, and for defense 
                           activities of the 
Department of Energy, to prescribe military personnel strengths for such 
  fiscal year, and for other purposes. <<NOTE: Dec. 31, 2011 -  [H.R. 
                                1540]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, <<NOTE: National Defense 
Authorization Act for Fiscal Year 2012.>> 
SECTION 1. SHORT TITLE.

    This Act may be cited as the ``National Defense Authorization Act 
for Fiscal Year 2012''.


                 TITLE LI--SBIR AND STTR REAUTHORIZATION

        Subtitle A--Reauthorization of the SBIR and STTR Programs

Sec. 5101. Extension of termination dates.
Sec. 5102. SBIR and STTR allocation increase.
Sec. 5103. SBIR and STTR award levels.
Sec. 5104. Agency and program flexibility.
Sec. 5105. Elimination of Phase II invitations.
Sec. 5106. Pilot to allow phase flexibility.
Sec. 5107. Participation by firms with substantial investment from 
           multiple venture capital operating companies, hedge funds, or 
           private equity firms in a portion of the SBIR program.
Sec. 5108. SBIR and STTR special acquisition preference.
Sec. 5109. Collaborating with Federal laboratories and research and 
           development centers.
Sec. 5110. Notice requirement.
Sec. 5111. Additional SBIR and STTR awards.

         Subtitle B--Outreach and Commercialization Initiatives

Sec. 5121. Technical assistance for awardees.
Sec. 5122. Commercialization Readiness Program at Department of Defense.
Sec. 5123. Commercialization Readiness Pilot Program for civilian 
           agencies.
Sec. 5124. Interagency Policy Committee.
Sec. 5125. Clarifying the definition of ``Phase III''.
Sec. 5126. Shortened period for final decisions on proposals and 
           applications.
Sec. 5127. Phase 0 Proof of Concept Partnership pilot program.

                  Subtitle C--Oversight and Evaluation

Sec. 5131. Streamlining annual evaluation requirements.
Sec. 5132. Data collection from agencies for SBIR.
Sec. 5133. Data collection from agencies for STTR.
Sec. 5134. Public database.
Sec. 5135. Government database.
Sec. 5136. Accuracy in funding base calculations.
Sec. 5137. Continued evaluation by the National Academy of Sciences.
Sec. 5138. Technology insertion reporting requirements.
Sec. 5139. Intellectual property protections.
Sec. 5140. Obtaining consent from SBIR and STTR applicants to release 
           contact information to economic development organizations.
Sec. 5141. Pilot to allow funding for administrative, oversight, and 
           contract processing costs.
Sec. 5142. GAO study with respect to venture capital operating company, 
           hedge fund, and private equity firm involvement.
Sec. 5143. Reducing vulnerability of SBIR and STTR programs to fraud, 
           waste, and abuse.
Sec. 5144. Simplified paperwork requirements.

                      Subtitle D--Policy Directives

Sec. 5151. Conforming amendments to the SBIR and the STTR Policy 
           Directives.

[[Page 125 STAT. 1824]]

                      Subtitle E--Other Provisions

Sec. 5161. Report on SBIR and STTR program goals.
Sec. 5162. Competitive selection procedures for SBIR and STTR programs.
Sec. 5163. Loan restrictions.
Sec. 5164. Limitation on pilot programs.
Sec. 5165. Commercialization success.
Sec. 5166. Publication of certain information.
Sec. 5167. Report on enhancement of manufacturing activities.
Sec. 5168. Coordination of the SBIR program and the Experimental Program 
           to Stimulate Competitive Research.

        Subtitle A--Reauthorization of the SBIR and STTR Programs

SEC. 5101. EXTENSION OF TERMINATION DATES.

    (a) SBIR.--Section 9(m) of the Small Business Act (15 U.S.C. 638(m)) 
is amended by striking ``2011'' and inserting ``2017''.
    (b) STTR.--Section 9(n)(1)(A) of the Small Business Act (15 U.S.C. 
638(n)(1)(A)) is amended by striking ``2011'' and inserting ``2017''.


SEC. 5102. SBIR AND STTR ALLOCATION INCREASE.

    (a) SBIR.--Section 9(f) of the Small Business Act (15 U.S.C. 638(f)) 
is amended--
            (1) in paragraph (1)--
                    (A) in the matter preceding subparagraph (A), by 
                striking ``Each'' and inserting ``Except as provided in 
                paragraph (2)(B), each'';
                    (B) in subparagraph (B), by striking ``and'' at the 
                end; and
                    (C) by striking subparagraph (C) and inserting the 
                following:
                    ``(C) not less than 2.5 percent of such budget in 
                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,''; and
            (2) by adding at the end the following:
            ``(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).''.

    (b) STTR.--Section 9(n)(1)(B) of the Small Business Act (15 U.S.C. 
638(n)(1)(B)) is amended--
            (1) in clause (i) by striking ``and'' at the end; and
            (2) by striking clause (ii) and inserting the following:
                          ``(ii) 0.3 percent for each of fiscal years 
                      2004 through 2011;

[[Page 125 STAT. 1825]]

                          ``(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.''.


SEC. 5103. SBIR AND STTR AWARD LEVELS.

    (a) SBIR Adjustments.--Section 9(j)(2)(D) of the Small Business Act 
(15 U.S.C. 638(j)(2)(D)) is amended--
            (1) by striking ``$100,000'' and inserting ``$150,000''; and
            (2) by striking ``$750,000'' and inserting ``$1,000,000''.

    (b) STTR Adjustments.--Section 9(p)(2)(B)(ix) of the Small Business 
Act (15 U.S.C. 638(p)(2)(B)(ix)) is amended--
            (1) by striking ``$100,000'' and inserting ``$150,000''; and
            (2) by striking ``$750,000'' and inserting ``$1,000,000''.

    (c) Annual Adjustments.--Section 9 of the Small Business Act (15 
U.S.C. 638) is amended--
            (1) in subsection (j)(2)(D), by striking ``once every 5 
        years to reflect economic adjustments and programmatic 
        considerations'' and inserting ``every year for inflation''; and
            (2) in subsection (p)(2)(B)(ix), as amended by subsection 
        (b) of this section, by inserting ``(each of which the 
        Administrator shall adjust for inflation annually)'' after 
        ``$1,000,000,''.

    (d) Limitation on Size of Awards.--Section 9 of the Small Business 
Act (15 U.S.C. 638), as amended by this title, is further amended by 
adding at the end the following:
    ``(aa) Limitation on Size of Awards.--
            ``(1) Limitation.--No Federal agency may issue an award 
        under the SBIR program or the STTR program if the size of the 
        award exceeds the award guidelines established under this 
        section by more than 50 percent.
            ``(2) Maintenance of information.--Participating agencies 
        shall maintain information on awards exceeding the guidelines 
        established under this section, including--
                    ``(A) the amount of each award;
                    ``(B) a justification for exceeding the 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) <<NOTE: Determination.>>  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

[[Page 125 STAT. 1826]]

                    ``(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.''.


SEC. 5104. AGENCY AND PROGRAM FLEXIBILITY.

    Section 9 of the Small Business Act (15 U.S.C. 638), as amended by 
this title, is further amended by adding at the end the following:
    ``(bb) Subsequent Phase II Awards.--
            ``(1) Agency flexibility.--
        A <<NOTE: Eligibility. Determination.>> 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) <<NOTE: Verification.>>  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.''.


SEC. 5105. ELIMINATION OF PHASE II INVITATIONS.

    Section 9(e) of the Small Business Act (15 U.S.C. 638(e)) is 
amended--
            (1) in paragraph (4)(B), by striking ``to further'' and 
        inserting ``which shall not include any invitation, pre-
        screening, or pre-selection process for eligibility for Phase 
        II, that will further''; and
            (2) in paragraph (6)(B), by striking ``to further develop 
        proposed ideas to'' and inserting ``which shall not include any 
        invitation, pre-screening, or pre-selection process for 
        eligibility for Phase II, that will further develop proposals 
        that''.
		
SEC. 5106. PILOT TO ALLOW PHASE FLEXIBILITY.

    Section 9 of the Small Business Act (15 U.S.C. 638), as amended by 
this title, is further amended by adding at the end the following:
    ``(cc) Phase Flexibility.--During <<NOTE: Determination.>>  fiscal 
years 2012 through 2017, the National Institutes of Health, the 
Department of Defense, and the Department of Education may each 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

[[Page 125 STAT. 1827]]

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.''.


SEC. 5107. PARTICIPATION BY FIRMS WITH SUBSTANTIAL INVESTMENT FROM 
                          MULTIPLE VENTURE CAPITAL OPERATING 
                          COMPANIES, HEDGE FUNDS, OR PRIVATE 
                          EQUITY FIRMS IN A PORTION OF THE SBIR 
                          PROGRAM.

    (a) In General.--Section 9 of the Small Business Act (15 U.S.C. 
638), as amended by this title, is further amended by adding at the end 
the following:
    ``(dd) Participation of Small Business Concerns Majority-Owned by 
Venture Capital Operating Companies, Hedge Funds, or Private Equity 
Firms in the SBIR Program.--
            ``(1) <<NOTE: Determination. Deadline.>>  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--

[[Page 125 STAT. 1828]]

                    ``(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) <<NOTE: Data.>>  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) <<NOTE: Deadline.>>  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) <<NOTE: Time period.>>  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

[[Page 125 STAT. 1829]]

                      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) <<NOTE: Deadline.>>  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.''.

    (b) Definitions.--Section 3 of the Small Business Act (15 U.S.C. 
632) is amended by adding at the end the following:
    ``(aa) Venture Capital Operating Company.--In this Act, the term 
`venture capital operating company' means an entity described in clause 
(i), (v), or (vi) of section 121.103(b)(5) of title 13, Code of Federal 
Regulations (or any successor thereto).
    ``(bb) Hedge Fund.--In this Act, the term `hedge fund' has the 
meaning given that term in section 13(h)(2) of the Bank Holding Company 
Act of 1956 (12 U.S.C. 1851(h)(2)).
    ``(cc) Private Equity Firm.--In this Act, the term `private equity 
firm' has the meaning given the term `private equity fund' in section 
13(h)(2) of the Bank Holding Company Act of 1956 (12 U.S.C. 
1851(h)(2)).''.
    (c) <<NOTE: 15 USC 638 note.>>  Rulemaking To Ensure That Firms That 
Are Majority-Owned by Multiple Venture Capital Operating Companies, 
Hedge Funds, Or Private Equity Firms Are Able To Participate in a 
Portion of the SBIR Program.--
            (1) Statement of congressional intent.--It is the stated 
        intent of Congress that the Administrator should promulgate 
        regulations to carry out the authority under section 9(dd) of 
        the Small Business Act, as added by this section, that--
                    (A) permit small business concerns that are 
                majority-owned by multiple venture capital operating 
                companies, hedge funds, or private equity firms to 
                participate in the SBIR program in accordance with 
                section 9(dd) of the Small Business Act;
                    (B) provide specific guidance for small business 
                concerns that are majority-owned by multiple venture 
                capital operating companies, hedge funds, or private 
                equity firms with regard to eligibility, participation, 
                and affiliation rules; and
                    (C) preserve and maintain the integrity of the SBIR 
                program as a program for small business concerns in the 
                United States by prohibiting large businesses or large 
                entities or foreign-owned businesses or foreign-owned 
                entities from participation in the program established 
                under section 9 of the Small Business Act.
            (2) Rulemaking required.--
                    (A) <<NOTE: Deadline.>>  Proposed regulations.--Not 
                later than 120 days after the date of enactment of this 
                Act, the Administrator shall issue proposed regulations 
                to amend section 121.103 (relating to determinations of 
                affiliation applicable to the

[[Page 125 STAT. 1830]]

                SBIR program) and section 121.702 (relating to ownership 
                and control standards and size standards applicable to 
                the SBIR program) of title 13, Code of Federal 
                Regulations, for firms that are majority-owned by 
                multiple venture capital operating companies, hedge 
                funds, or private equity firms and participating in the 
                SBIR program solely under the authority under section 
                9(dd) of the Small Business Act, as added by this 
                section.
                    (B) Final regulations.--Not <<NOTE: Deadline.>>  
                later than 1 year after the date of enactment of this 
                Act, and after providing notice of and opportunity for 
                comment on the proposed regulations issued under 
                subparagraph (A), the Administrator shall issue final or 
                interim final regulations under this subsection.
            (3) Contents.--
                    (A) In general.--The <<NOTE: Determination.>>  
                regulations issued under this subsection shall permit 
                the participation of applicants majority-owned by 
                multiple venture capital operating companies, hedge 
                funds, or private equity firms in the SBIR program in 
                accordance with section 9(dd) of the Small Business Act, 
                as added by this section, unless the Administrator 
                determines--
                          (i) in accordance with the size standards 
                      established under subparagraph (B), that the 
                      applicant is--
                                    (I) a large business or large 
                                entity; or
                                    (II) majority-owned or controlled by 
                                a large business or large entity; or
                          (ii) in accordance with the criteria 
                      established under subparagraph (C), that the 
                      applicant--
                                    (I) is a foreign-owned business or a 
                                foreign entity or is not a citizen of 
                                the United States or alien lawfully 
                                admitted for permanent residence; or
                                    (II) is majority-owned or controlled 
                                by a foreign-owned business, foreign 
                                entity, or person who is not a citizen 
                                of the United States or alien lawfully 
                                admitted for permanent residence.
                    (B) Size standards.--Under the authority to 
                establish size standards under paragraphs (2) and (3) of 
                section 3(a) of the Small Business Act (15 U.S.C. 
                632(a)), the Administrator shall, in accordance with 
                paragraph (1) of this subsection, establish size 
                standards for applicants seeking to participate in the 
                SBIR program solely under the authority under section 
                9(dd) of the Small Business Act, as added by this 
                section.
                    (C) Criteria for determining foreign ownership.--The 
                Administrator shall establish criteria for determining 
                whether an applicant meets the requirements under 
                subparagraph (A)(ii), and, in establishing the criteria, 
                shall consider whether the criteria should include--
                          (i) whether the applicant is at least 51 
                      percent owned or controlled by citizens of the 
                      United States or domestic venture capital 
                      operating companies, hedge funds, or private 
                      equity firms;
                          (ii) whether the applicant is domiciled in the 
                      United States; and

[[Page 125 STAT. 1831]]

                          (iii) whether the applicant is a direct or 
                      indirect subsidiary of a foreign-owned firm, 
                      including whether the criteria should include that 
                      an applicant is a direct or indirect subsidiary of 
                      a foreign-owned entity if--
                                    (I) any venture capital operating 
                                company, hedge fund, or private equity 
                                firm that owns more than 20 percent of 
                                the applicant is a direct or indirect 
                                subsidiary of a foreign-owned entity; or
                                    (II) in the aggregate, entities that 
                                are direct or indirect subsidiaries of 
                                foreign-owned entities own more than 49 
                                percent of the applicant.
                    (D) Criteria for determining affiliation.--The 
                Administrator shall establish criteria, in accordance 
                with paragraph (1), for determining whether an applicant 
                is affiliated with a venture capital operating company, 
                hedge fund, private equity firm, or any other business 
                that the venture capital operating company, hedge fund, 
                or private equity firm has financed and, in establishing 
                the criteria, shall specify that--
                          (i) if a venture capital operating company, 
                      hedge fund, or private equity firm that is 
                      determined to be affiliated with an applicant is a 
                      minority investor in the applicant, the portfolio 
                      companies of the venture capital operating 
                      company, hedge fund, or private equity firm shall 
                      not be determined to be affiliated with the 
                      applicant, unless--
                                    (I) the venture capital operating 
                                company, hedge fund, or private equity 
                                firm owns a majority of the portfolio 
                                company; or
                                    (II) the venture capital operating 
                                company, hedge fund, or private equity 
                                firm holds a majority of the seats on 
                                the board of directors of the portfolio 
                                company;
                          (ii) subject to clause (i), the Administrator 
                      retains the authority to determine whether a 
                      venture capital operating company, hedge fund, or 
                      private equity firm is affiliated with an 
                      applicant, including establishing other criteria;
                          (iii) the Administrator may not determine that 
                      a portfolio company of a venture capital operating 
                      company, hedge fund, or private equity firm is 
                      affiliated with an applicant based solely on 1 or 
                      more shared investors; and
                          (iv) subject to clauses (i), (ii), and (iii), 
                      the Administrator retains the authority to 
                      determine whether a portfolio company of a venture 
                      capital operating company, hedge fund, or private 
                      equity firm is affiliated with an applicant based 
                      on factors independent of whether there is a 
                      shared investor, such as whether there are 
                      contractual obligations between the portfolio 
                      company and the applicant.
            (4) <<NOTE: Time period.>>  Enforcement.--If the 
        Administrator does not issue final or interim final regulations 
        under this subsection on or before the date that is 1 year after 
        the date of enactment of this Act, the Administrator may not 
        carry out or establish any pilot program until the date on which 
        the Administrator

[[Page 125 STAT. 1832]]

        issues the final or interim final regulations under this 
        subsection.
            (5) Definition.--In this subsection, the terms ``venture 
        capital operating company'', ``hedge fund'', and ``private 
        equity firm'' have the same meaning as in section 3 of the Small 
        Business Act (15 U.S.C. 632), as amended by this section.

    (d) <<NOTE: Web postings. 15 USC 638 note.>>  Assistance for 
Determining Affiliates.--
            (1) <<NOTE: Deadlines.>>  Clear explanation required.--Not 
        later than 30 days after the date of enactment of this Act, the 
        Administrator shall post on the Web site of the Administration 
        (with a direct link displayed on the homepage of the Web site of 
        the Administration or the SBIR and STTR Web sites of the 
        Administration)--
                    (A) a clear explanation of the SBIR and STTR 
                affiliation rules under part 121 of title 13, Code of 
                Federal Regulations; and
                    (B) contact information for officers or employees of 
                the Administration who--
                          (i) <<NOTE: Review.>>  upon request, shall 
                      review an issue relating to the rules described in 
                      subparagraph (A); and
                          (ii) shall respond to a request under clause 
                      (i) not later than 20 business days after the date 
                      on which the request is received.
            (2) Inclusion of affiliation rules for certain small 
        business concerns.--On and after the date on which the final 
        regulations under subsection (c) are issued, the Administrator 
        shall post on the Web site of the Administration information 
        relating to the regulations, in accordance with paragraph (1).
		
SEC. 5108. SBIR AND STTR SPECIAL ACQUISITION PREFERENCE.

    Section 9(r) of the Small Business Act (15 U.S.C. 638(r)) is amended 
by adding at the end the following:
            ``(4) Phase iii awards.--To the greatest extent practicable, 
        Federal agencies and Federal prime contractors shall issue Phase 
        III awards relating to technology, including sole source awards, 
        to the SBIR and STTR award recipients that developed the 
        technology.''.
		
SEC. 5109. COLLABORATING WITH FEDERAL LABORATORIES AND RESEARCH 
                          AND DEVELOPMENT CENTERS.

    Section 9 of the Small Business Act (15 U.S.C. 638), as amended by 
this title, is further amended by adding at the end the following:
    ``(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--

[[Page 125 STAT. 1833]]

                    ``(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 <<NOTE: Deadline.>>  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.''.
		
SEC. 5110. NOTICE REQUIREMENT.

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

    (b) STTR Program.--Section 9(o) of the Small Business Act (15 U.S.C. 
638(o)) is amended--
            (1) by striking paragraph (15);
            (2) in paragraph (16), by striking the period at the end and 
        inserting ``; and'';
            (3) by redesignating paragraph (16) as paragraph (15); and
            (4) by adding at the end the following:

[[Page 125 STAT. 1834]]

            ``(16) provide timely notice to the Administrator of any 
        case or controversy before any Federal judicial or 
        administrative tribunal concerning the STTR program of the 
        Federal agency.''.

SEC. 5111. ADDITIONAL SBIR AND STTR AWARDS.

    Section 9 of the Small Business Act (15 U.S.C. 638), as amended by 
this title, is further amended by adding at the end the following:
    ``(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) <<NOTE: Verification.>>  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.''.

         Subtitle B--Outreach and Commercialization Initiatives

SEC. 5121. TECHNICAL ASSISTANCE FOR AWARDEES.

    Section 9(q) of the Small Business Act (15 U.S.C. 638(q)) is 
amended--
            (1) in paragraph (1)--
                    (A) by inserting ``or STTR program'' after ``SBIR 
                program''; and
                    (B) by striking ``SBIR projects'' and inserting 
                ``SBIR or STTR projects'';
            (2) in paragraph (2), by striking ``3 years'' and inserting 
        ``5 years''; and
            (3) in paragraph (3)--
                    (A) by striking subparagraph (A) and inserting the 
                following:
                    ``(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), the services described in 
                      paragraph (1), in an amount equal to not more than 
                      $5,000 per year; or
                          ``(ii) authorize the recipient of a Phase 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, which shall be in 
                      addition to the amount of the recipient's 
                      award.'';
                    (B) by striking subparagraph (B) and inserting the 
                following:
                    ``(B) Phase ii.--A Federal agency described in 
                paragraph (1) may--
                          ``(i) provide to the recipient of a Phase II 
                      SBIR or STTR award, through a vendor selected 
                      under paragraph (2), the services described in 
                      paragraph (1), in an amount equal to not more than 
                      $5,000 per year; or

[[Page 125 STAT. 1835]]

                          ``(ii) authorize the recipient of a Phase II 
                      SBIR or STTR award to purchase the services 
                      described in paragraph (1), in an amount equal to 
                      not more than $5,000 per year, which shall be in 
                      addition to the amount of the recipient's 
                      award.''; and
                    (C) by adding at the end the following:
                    ``(C) Flexibility.--In carrying out subparagraphs 
                (A) and (B), each Federal agency shall provide the 
                allowable amounts to a recipient that meets the 
                eligibility requirements under the applicable 
                subparagraph, if the recipient requests to seek 
                technical assistance from an individual or entity other 
                than the vendor selected under paragraph (2) by the 
                Federal agency.
                    ``(D) Limitation.--A Federal agency may not--
                          ``(i) use the amounts authorized under 
                      subparagraph (A) or (B) unless the vendor selected 
                      under paragraph (2) provides the technical 
                      assistance to the recipient; or
                          ``(ii) enter a contract with a vendor under 
                      paragraph (2) under which the amount provided for 
                      technical assistance is based on total number of 
                      Phase I or Phase II awards.''.

SEC. 5122. COMMERCIALIZATION READINESS PROGRAM AT DEPARTMENT OF 
                          DEFENSE.

    (a) In General.--Section 9(y) of the Small Business Act (15 U.S.C. 
638(y)) is amended--
            (1) in the subsection heading, by striking ``Pilot'' and 
        inserting ``Readiness'';
            (2) by striking ``Pilot'' each place that term appears and 
        inserting ``Readiness'';
            (3) in paragraph (1)--
                    (A) by inserting ``or Small Business Technology 
                Transfer Program'' after ``Small Business Innovation 
                Research Program''; and
                    (B) by adding at the end the following: ``The 
                authority to create and administer a Commercialization 
                Readiness Program under this subsection may not be 
                construed to eliminate or replace any other SBIR program 
                or STTR program that enhances the insertion or 
                transition of SBIR or STTR technologies, including any 
                such program in effect on the date of enactment of the 
                National Defense Authorization Act for Fiscal Year 2006 
                (Public Law 109-163; 119 Stat. 3136).'';
            (4) in paragraph (2), by inserting ``or Small Business 
        Technology Transfer Program'' after ``Small Business Innovation 
        Research Program'';
            (5) by striking paragraph (5);
            (6) by striking paragraph (6); and
            (7) by inserting after paragraph (4) the following:
            ``(5) <<NOTE: Contracts.>>  Insertion incentives.--For any 
        contract with a value of not less than $100,000,000, the 
        Secretary of Defense is authorized to--
                    ``(A) establish goals for the transition of Phase 
                III technologies in subcontracting plans; and
                    ``(B) require a prime contractor on such a contract 
                to report the number and dollar amount of contracts

[[Page 125 STAT. 1836]]

                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) <<NOTE: Submission.>>  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).''.

    (b) Technical and Conforming Amendment.--Section 9(i)(1) of the 
Small Business Act (15 U.S.C. 638(i)(1)) is amended by inserting 
``(including awards under subsection (y))'' after ``the number of 
awards''.

SEC. 5123. COMMERCIALIZATION READINESS PILOT PROGRAM FOR CIVILIAN 
                          AGENCIES.

    Section 9 of the Small Business Act (15 U.S.C. 638), as amended by 
this title, is further amended by adding at the end the following:
    ``(gg) Pilot Program.--
            ``(1) Authorization.--The head of each covered Federal 
        agency may allocate not more than 10 percent of the funds 
        allocated to the SBIR program and the STTR program of the 
        covered Federal agency--
                    ``(A) for awards for technology development, 
                testing, 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) <<NOTE: Deadline.>>  In general.--A covered 
                Federal agency may not establish a pilot program unless 
                the covered Federal agency makes a written application 
                to the Administrator, not later than 90 days before the 
                first day of the fiscal year in which the pilot program 
                is to be established, that describes a compelling reason 
                that additional investment in SBIR or STTR technologies 
                is necessary, including unusually high regulatory, 
                systems integration, or other costs relating to 
                development or manufacturing of identifiable, highly

[[Page 125 STAT. 1837]]

                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) <<NOTE: Deadline.>>  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) <<NOTE: Federal Register, 
                      publication.>>  publish the determination in the 
                      Federal Register; and
                          ``(iii) <<NOTE: Records.>>  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 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) <<NOTE: Public information.>>  Registration.--Any 
        applicant that receives an award under a pilot program shall 
        register with the Administrator in a registry that is available 
        to the public.
            ``(5) 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 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) 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).''.

SEC. 5124. INTERAGENCY POLICY COMMITTEE.

    (a) Establishment.--The Director of the Office of Science and 
Technology Policy shall establish an Interagency SBIR/STTR Policy 
Committee.
    (b) Membership.--The Interagency SBIR/STTR Policy Committee shall 
include representatives from Federal agencies with an SBIR or an STTR 
program and the Small Business Administration.
    (c) <<NOTE: Recommenda- tions.>>  Duties.--The Interagency SBIR/STTR 
Policy Committee shall review the following issues and make policy 
recommendations on ways to improve program effectiveness and efficiency:

[[Page 125 STAT. 1838]]

            (1) The public and Government databases described in section 
        9(k) of the Small Business Act (15 U.S.C. 638(k)).
            (2) Federal agency flexibility in establishing Phase I and 
        II award sizes, including appropriate criteria for exercising 
        such flexibility.
            (3) Commercialization assistance best practices of Federal 
        agencies with significant potential to be employed by other 
        agencies and the appropriate steps to achieve that leverage, as 
        well as proposals for new initiatives to address funding gaps 
        that business concerns face after Phase II but before 
        commercialization.
            (4) Developing and incorporating a standard evaluation 
        framework to enable systematic assessment of SBIR and STTR, 
        including through improved tracking of awards and outcomes and 
        development of performance measures for the SBIR program and 
        STTR program of each Federal agency.
            (5) Outreach and technical assistance activities that 
        increase the participation of small businesses underrepresented 
        in the SBIR and STTR programs, including the identification and 
        sharing of best practices and the leveraging of resources in 
        support of such activities across agencies.

    (d) Reports.--The Interagency SBIR/STTR Policy Committee shall 
transmit 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--
            (1) a report on its review and recommendations under 
        subsection (c)(1) not later than 1 year after the date of 
        enactment of this Act;
            (2) a report on its review and recommendations under 
        subsection (c)(2) not later than 18 months after the date of 
        enactment of this Act;
            (3) a report on its review and recommendations under 
        subsection (c)(3) not later than 2 years after the date of 
        enactment of this Act;
            (4) a report on its review and recommendations under 
        subsection (c)(4) not later than 2 years after the date of 
        enactment of this Act; and
            (5) a report on its review and recommendations under 
        subsection (c)(5) not later than 2 years after the date of 
        enactment of this Act.

SEC. 5125. CLARIFYING THE DEFINITION OF ``PHASE III''.

    (a) Phase III Awards.--Section 9(e) of the Small Business Act (15 
U.S.C. 638(e)), as amended by this title, is further amended--
            (1) in paragraph (4)(C), in the matter preceding clause (i), 
        by inserting ``for work that derives from, extends, or completes 
        efforts made under prior funding agreements under the SBIR 
        program'' after ``phase'';
            (2) in paragraph (6)(C), in the matter preceding clause (i), 
        by inserting ``for work that derives from, extends, or completes 
        efforts made under prior funding agreements under the STTR 
        program'' after ``phase'';
            (3) in paragraph (8), by striking ``and'' at the end;
            (4) in paragraph (9), by striking the period at the end and 
        inserting a semicolon; and

[[Page 125 STAT. 1839]]

            (5) by adding at the end the following:
            ``(10) the term `commercialization' means--
                    ``(A) the process of developing products, processes, 
                technologies, or services; and
                    ``(B) the production and delivery (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;''.

    (b) Technical and Conforming Amendments.--Section 9 of the Small 
Business Act (15 U.S.C. 638), as amended by this title, is further 
amended--
            (1) in subsection (e)--
                    (A) in paragraph (4)(C)(ii), by striking 
                ``scientific review criteria'' and inserting ``merit-
                based selection procedures'';
                    (B) in paragraph (9), by striking ``the second or 
                the third phase'' and inserting ``Phase II or Phase 
                III''; and
                    (C) by adding at the end the following:
            ``(11) the term `Phase I' means--
                    ``(A) with respect to the SBIR program, the first 
                phase described in paragraph (4)(A); and
                    ``(B) with respect to the STTR program, the first 
                phase described in paragraph (6)(A);
            ``(12) the term `Phase II' means--
                    ``(A) with respect to the SBIR program, the second 
                phase described in paragraph (4)(B); and
                    ``(B) with respect to the STTR program, the second 
                phase described in paragraph (6)(B); and
            ``(13) the term `Phase III' means--
                    ``(A) with respect to the SBIR program, the third 
                phase described in paragraph (4)(C); and
                    ``(B) with respect to the STTR program, the third 
                phase described in paragraph (6)(C).'';
            (2) in subsection (j)--
                    (A) in paragraph (1)(B), by striking ``phase two'' 
                and inserting ``Phase II'';
                    (B) in paragraph (2)--
                          (i) in subparagraph (B)--
                                    (I) by striking ``the third phase'' 
                                each place it appears and inserting 
                                ``Phase III''; and
                                    (II) by striking ``the second 
                                phase'' and inserting ``Phase II'';
                          (ii) in subparagraph (D)--
                                    (I) by striking ``the first phase'' 
                                and inserting ``Phase I''; and
                                    (II) by striking ``the second 
                                phase'' and inserting ``Phase II'';
                          (iii) in subparagraph (F), by striking ``the 
                      third phase'' and inserting ``Phase III'';
                          (iv) in subparagraph (G)--
                                    (I) by striking ``the first phase'' 
                                and inserting ``Phase I''; and
                                    (II) by striking ``the second 
                                phase'' and inserting ``Phase II''; and
                          (v) in subparagraph (H)--
                                    (I) by striking ``the first phase'' 
                                and inserting ``Phase I'';

[[Page 125 STAT. 1840]]

                                    (II) by striking ``second phase'' 
                                each place it appears and inserting 
                                ``Phase II''; and
                                    (III) by striking ``third phase'' 
                                and inserting ``Phase III''; and
                    (C) in paragraph (3)--
                          (i) in subparagraph (A)--
                                    (I) by striking ``the first phase 
                                (as described in subsection (e)(4)(A))'' 
                                and inserting ``Phase I'';
                                    (II) by striking ``the second phase 
                                (as described in subsection (e)(4)(B))'' 
                                and inserting ``Phase II''; and
                                    (III) by striking ``the third phase 
                                (as described in subsection (e)(4)(C))'' 
                                and inserting ``Phase III''; and
                          (ii) in subparagraph (B), by striking ``second 
                      phase'' and inserting ``Phase II'';
            (3) in subsection (k)--
                    (A) by striking ``first phase'' each place it 
                appears and inserting ``Phase I''; and
                    (B) by striking ``second phase'' each place it 
                appears and inserting ``Phase II'';
            (4) in subsection (l)(2)--
                    (A) by striking ``the first phase'' and inserting 
                ``Phase I''; and
                    (B) by striking ``the second phase'' and inserting 
                ``Phase II'';
            (5) in subsection (o)(13)--
                    (A) in subparagraph (B), by striking ``second 
                phase'' and inserting ``Phase II''; and
                    (B) in subparagraph (C), by striking ``third phase'' 
                and inserting ``Phase III'';
            (6) in subsection (p)--
                    (A) in paragraph (2)(B)--
                          (i) in clause (vi)--
                                    (I) by striking ``the second phase'' 
                                and inserting ``Phase II''; and
                                    (II) by striking ``the third phase'' 
                                and inserting ``Phase III''; and
                          (ii) in clause (ix)--
                                    (I) by striking ``the first phase'' 
                                and inserting ``Phase I''; and
                                    (II) by striking ``the second 
                                phase'' and inserting ``Phase II''; and
                    (B) in paragraph (3)--
                          (i) by striking ``the first phase (as 
                      described in subsection (e)(6)(A))'' and inserting 
                      ``Phase I'';
                          (ii) by striking ``the second phase (as 
                      described in subsection (e)(6)(B))'' and inserting 
                      ``Phase II''; and
                          (iii) by striking ``the third phase (as 
                      described in subsection (e)(6)(C))'' and inserting 
                      ``Phase III'';
            (7) in subsection (r)--
                    (A) in the subsection heading, by striking ``Third 
                Phase'' and inserting ``Phase III'';
                    (B) in paragraph (1)--
                          (i) in the first sentence--
                                    (I) by striking ``for the second 
                                phase'' and inserting ``for Phase II'';

[[Page 125 STAT. 1841]]

                                    (II) by striking ``third phase'' and 
                                inserting ``Phase III''; and
                                    (III) by striking ``second phase 
                                period'' and inserting ``Phase II 
                                period''; and
                          (ii) in the second sentence--
                                    (I) by striking ``second phase'' and 
                                inserting ``Phase II''; and
                                    (II) by striking ``third phase'' and 
                                inserting ``Phase III''; and
                    (C) in paragraph (2), by striking ``third phase'' 
                and inserting ``Phase III''; and
            (8) in subsection (u)(2)(B), by striking ``the first phase'' 
        and inserting ``Phase I''.

SEC. 5126. SHORTENED PERIOD FOR FINAL DECISIONS ON PROPOSALS AND 
                          APPLICATIONS.

    (a) In General.--Section 9 of the Small Business Act (15 U.S.C. 
638), as amended by this title, is further amended--
            (1) in subsection (g)(4)--
                    (A) by inserting ``(A)'' after ``(4)'';
                    (B) by adding ``and'' after the semicolon at the 
                end; and
                    (C) by adding at the end the following:
            ``(B) <<NOTE: Deadlines.>>  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);''; and
            (2) in subsection (o)(4)--
                    (A) by inserting ``(A)'' after ``(4)'';
                    (B) by adding ``and'' after the semicolon at the 
                end; and
                    (C) by adding at the end the following:
            ``(B) make a final decision on each proposal submitted under 
        the STTR program--
                    ``(i) not later than 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);''.

    (b) Other Timing Provisions.--Section 9 of the Small Business Act 
(15 U.S.C. 638), as amended by this title, is further amended by adding 
at the end the following:
    ``(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

[[Page 125 STAT. 1842]]

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.''.


SEC. 5127. <<NOTE: Grants.>> PHASE 0 PROOF OF CONCEPT PARTNERSHIP 
                          PILOT PROGRAM.

    Section 9 of the Small Business Act (15 U.S.C. 638), as amended by 
this title, is further amended by adding at the end the following:
    ``(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

[[Page 125 STAT. 1843]]

                                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

[[Page 125 STAT. 1844]]

        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.''.

                  Subtitle C--Oversight and Evaluation

SEC. 5131. STREAMLINING ANNUAL EVALUATION REQUIREMENTS.

    Section 9(b) of the Small Business Act (15 U.S.C. 638(b)) is 
amended--
            (1) in paragraph (7)--
                    (A) by striking ``STTR programs, including the 
                data'' and inserting the following: ``STTR programs, 
                including--
                    ``(A) the data'';
                    (B) by striking ``(g)(10), (o)(9), and (o)(15), the 
                number'' and all that follows through ``under each of 
                the SBIR and STTR programs, and a description'' and 
                inserting the following: ``(g)(8) and (o)(9);
                    ``(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 description''; and

[[Page 125 STAT. 1845]]

                    (C) by striking ``and'' at the end;
            (2) in paragraph (8), by striking the period at the end and 
        inserting ``; and''; and
            (3) by inserting after paragraph (8) the following:
            ``(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.''.
		
SEC. 5132. DATA COLLECTION FROM AGENCIES FOR SBIR.

    Section 9(g) of the Small Business Act (15 U.S.C. 638(g)), as 
amended by this title, is further amended--
            (1) by striking paragraph (10);
            (2) by redesignating paragraphs (8) and (9) as paragraphs 
        (9) and (10), respectively; and
            (3) by inserting after paragraph (7) the following:
            ``(8) <<NOTE: Deadline.>>  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);''.

[[Page 125 STAT. 1846]]

SEC. 5133. DATA COLLECTION FROM AGENCIES FOR STTR.

    Section 9(o) of the Small Business Act (15 U.S.C. 638(o)), as 
amended by this title, is further amended by striking paragraph (9) and 
inserting the following:
            ``(9) <<NOTE: Deadline.>>  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);''.

[[Page 125 STAT. 1847]]

SEC. 5134. PUBLIC DATABASE.

    Section 9(k)(1) of the Small Business Act (15 U.S.C. 638(k)(1)) is 
amended--
            (1) in subparagraph (D), by striking ``and'' at the end;
            (2) in subparagraph (E), by striking the period at the end 
        and inserting ``; and''; and
            (3) by adding at the end the following:
                    ``(F) for each small business concern that has 
                received a Phase I or Phase II SBIR or STTR award from a 
                Federal agency, whether the small business concern--
                          ``(i) has venture capital, 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).''.

SEC. 5135. GOVERNMENT DATABASE.

    Section 9(k) of the Small Business Act (15 U.S.C. 638(k)) is 
amended--
            (1) in paragraph (2)--
                    (A) <<NOTE: Deadline.>>  in the matter preceding 
                subparagraph (A), by striking ``Not later'' and all that 
                follows through ``Act of 2000'' and inserting ``Not 
                later than 90 days after the date of enactment of the 
                SBIR/STTR Reauthorization Act of 2011'';
                    (B) by striking subparagraph (C);
                    (C) by redesignating subparagraphs (A) and (B) as 
                subparagraphs (B) and (C), respectively;
                    (D) by inserting before subparagraph (B), as so 
                redesignated, the following:
                    ``(A) contains for each small business concern that 
                applies for, submits a proposal for, or receives an 
                award under Phase I or Phase II of the SBIR program or 
                the STTR program--
                          ``(i) the name, size, and location 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

[[Page 125 STAT. 1848]]

                      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;'';
                    (E) by redesignating subparagraphs (D) and (E) as 
                subparagraphs (E) and (F), respectively;
                    (F) by inserting after subparagraph (C), as so 
                redesignated, the following:
                    ``(D) includes, for each awardee--
                          ``(i) the name, size, 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;'';
                    (G) in subparagraph (E), as so redesignated, by 
                striking ``and'' at the end;
                    (H) in subparagraph (F), as so redesignated, by 
                striking the period at the end and inserting ``; and''; 
                and
                    (I) by adding at the end the following:
                    ``(G) includes a timely and accurate list of any 
                individual or small business concern that has 
                participated in the SBIR program or STTR program that 
                has been--

[[Page 125 STAT. 1849]]

                          ``(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.''; and
            (2) in paragraph (3), by adding at the end the following:
                    ``(C) <<NOTE: Deadline.>>  Government database.--Not 
                later than 60 days after the date established by a 
                Federal agency for submitting applications or proposals 
                for a Phase I or Phase II award under the SBIR program 
                or STTR program, the head of the Federal agency shall 
                submit to the Administrator the data required under 
                paragraph (2) with respect to each small business 
                concern that applies or submits a proposal for the Phase 
                I or Phase II award.''.

SEC. 5136. <<NOTE: 15 USC 638 note.>> ACCURACY IN FUNDING BASE 
                          CALCULATIONS.

    (a) <<NOTE: Deadline.>>  In General.--Not later than 1 year after 
the date of enactment of this Act, and every year thereafter until the 
date that is 5 years after the date of enactment of this Act, the 
Comptroller General of the United States shall--
            (1) <<NOTE: Audit. Determinations. Assessments.>>  conduct a 
        fiscal and management audit of the SBIR program and the STTR 
        program for the applicable period to--
                    (A) determine whether Federal agencies comply with 
                the expenditure amount requirements under subsections 
                (f)(1) and (n)(1) of section 9 of the Small Business Act 
                (15 U.S.C. 638), as amended by this title;
                    (B) assess the extent of compliance with the 
                requirements of section 9(i)(2) of the Small Business 
                Act (15 U.S.C. 638(i)(2)) by Federal agencies 
                participating in the SBIR program or the STTR program 
                and the Administration;
                    (C) assess whether it would be more consistent and 
                effective to base the amount of the allocations under 
                the SBIR program and the STTR program on a percentage of 
                the research and development budget of a Federal agency, 
                rather than the extramural budget of the Federal agency; 
                and
                    (D) determine the portion of the extramural research 
                or research and development budget of a Federal agency 
                that each Federal agency spends for administrative 
                purposes relating to the SBIR program or STTR program, 
                and for what specific purposes it is used, including the 
                portion, if any, of such budget the Federal agency 
                spends for salaries and expenses, travel to visit 
                applicants, outreach events, marketing, and technical 
                assistance; and
            (2) <<NOTE: Reports.>>  submit a report 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 regarding the 
        audit conducted under paragraph (1), including the assessments 
        required under subparagraph (B) and the determinations made 
        under subparagraph (D) of paragraph (1).

    (b) Definition of Applicable Period.--In this section, the term 
``applicable period'' means--
            (1) for the first report submitted under this section, the 
        period beginning on October 1, 2005, and ending on September

[[Page 125 STAT. 1850]]

        30 of the last full fiscal year before the date of enactment of 
        this Act for which information is available; and
            (2) for the second and each subsequent report submitted 
        under this section, the period--
                    (A) beginning on October 1 of the first fiscal year 
                after the end of the most recent full fiscal year 
                relating to which a report under this section was 
                submitted; and
                    (B) ending on September 30 of the last full fiscal 
                year before the date of the report.

SEC. 5137. CONTINUED EVALUATION BY THE NATIONAL ACADEMY OF 
                          SCIENCES.

    Section 108 of the Small Business Reauthorization Act of 2000 (15 
U.S.C. 638 note) is amended by adding at the end the following:
    ``(e) Extensions and Enhancements of Authority.--
            ``(1) <<NOTE: Deadline. Contracts. Study.>>  In general.--
        Not later than 6 months after the date of enactment of the SBIR/
        STTR Reauthorization Act of 2011, the head of each agency 
        described in subsection (a), in consultation with the Small 
        Business Administration, shall cooperatively enter into an 
        agreement with the National Academy of Sciences for the National 
        Research Council to, not later than 4 years after the date of 
        enactment of the SBIR/STTR Reauthorization Act of 2011, and 
        every 4 years thereafter--
                    ``(A) continue the most recent study under this 
                section relating to the issues described in 
                subparagraphs (A), (B), (C), and (E) of subsection 
                (a)(1);
                    ``(B) conduct a comprehensive study of how the STTR 
                program has stimulated technological innovation and 
                technology transfer, including--
                          ``(i) <<NOTE: Review.>>  a review of the 
                      collaborations created between small businesses 
                      and research institutions, including an evaluation 
                      of the effectiveness of the program in stimulating 
                      new collaborations and any obstacles that may 
                      prevent or inhibit the creation of such 
                      collaborations;
                          ``(ii) an evaluation of the effectiveness of 
                      the program at transferring technology and 
                      capabilities developed through Federal funding;
                          ``(iii) to the extent practicable, an 
                      evaluation of the economic benefits achieved by 
                      the STTR program, including the economic rate of 
                      return;
                          ``(iv) <<NOTE: Analysis.>>  an analysis of how 
                      Federal agencies are using small businesses that 
                      have completed Phase II under the STTR program to 
                      fulfill their procurement needs;
                          ``(v) an analysis of whether additional funds 
                      could be employed effectively by the STTR program; 
                      and
                          ``(vi) <<NOTE: Assessment.>>  an assessment of 
                      the systems and minimum performance standards 
                      relating to commercialization success established 
                      under section 9(qq) of the Small Business Act;
                    ``(C) <<NOTE: Recommenda- tions.>>  make 
                recommendations with respect to the issues described in 
                subparagraphs (A), (D), and (E) of subsection (a)(2) and 
                subparagraph (B) of this paragraph; and
                    ``(D) estimate, to the extent practicable, the 
                number of jobs created by the SBIR program or STTR 
                program of the agency.

[[Page 125 STAT. 1851]]

            ``(2) Consultation.--An agreement under paragraph (1) shall 
        require the National Research Council to ensure that there is 
        participation by and consultation with the small business 
        community, the Administration, and other interested parties as 
        described in subsection (b).
            ``(3) Reporting.--An agreement under paragraph (1) shall 
        require that not later than 4 years after the date of enactment 
        of the SBIR/STTR Reauthorization Act of 2011, and every 4 years 
        thereafter, the National Research Council shall submit to the 
        head of the agency entering into the agreement, the Committee on 
        Small Business and Entrepreneurship of the Senate, and the 
        Committee on Small Business and the Committee on Science, Space, 
        and Technology of the House of Representatives, a report 
        regarding the study conducted under paragraph (1) and containing 
        the recommendations described in paragraph (1).''.

SEC. 5138. TECHNOLOGY INSERTION REPORTING REQUIREMENTS.

    Section 9 of the Small Business Act (15 U.S.C. 638), as amended by 
this title, is further amended by adding at the end the following:
    ``(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.''.

SEC. 5139. INTELLECTUAL PROPERTY PROTECTIONS.

    (a) Study.--The Comptroller General of the United States shall 
conduct a study of the SBIR program to assess whether--
            (1) Federal agencies comply with the data rights protections 
        for SBIR awardees and the technologies of SBIR awardees under 
        section 9 of the Small Business Act (15 U.S.C. 638);
            (2) the laws and policy directives intended to clarify the 
        scope of data rights, including in prototypes, mentor-protege 
        relationships, and agreements with Federal laboratories, are 
        sufficient to protect SBIR awardees; and
            (3) there is an effective grievance tracking process for 
        SBIR awardees who have grievances against a Federal agency 
        regarding data rights and a process for resolving those 
        grievances.

    (b) Report.--Not later than 18 months after the date of enactment of 
this Act, the Comptroller General shall submit to the Committee on Small 
Business and Entrepreneurship of the Senate and the Committee on Small 
Business and the Committee on Science, Space, and Technology of the 
House of Representatives a report regarding the study conducted under 
subsection (a).

SEC. 5140. OBTAINING CONSENT FROM SBIR AND STTR APPLICANTS TO 
                          RELEASE CONTACT INFORMATION TO ECONOMIC 
                          DEVELOPMENT ORGANIZATIONS.

    Section 9 of the Small Business Act (15 U.S.C. 638), as amended by 
this title, is further amended by adding at the end the following:
    ``(ll) Consent To Release Contact Information to Organizations.--

[[Page 125 STAT. 1852]]

            ``(1) Enabling concern to give consent.--Each Federal agency 
        required by this section to conduct an SBIR program or an STTR 
        program shall enable a small business concern that is an SBIR 
        applicant or an STTR applicant to indicate to the Federal agency 
        whether the Federal agency has the consent of the concern to--
                    ``(A) identify the concern to appropriate local and 
                State-level economic development organizations as an 
                SBIR applicant or an STTR applicant; and
                    ``(B) release the contact information of the concern 
                to such organizations.
            ``(2) Rules.--The Administrator shall establish rules to 
        implement this subsection. The rules shall include a requirement 
        that a Federal agency include in the SBIR and STTR application a 
        provision through which the applicant can indicate consent for 
        purposes of paragraph (1).''.

SEC. 5141. PILOT TO ALLOW FUNDING FOR ADMINISTRATIVE, OVERSIGHT, 
                          AND CONTRACT PROCESSING COSTS.

    (a) In General.--Section 9 of the Small Business Act (15 U.S.C. 
638), as amended by this title, is further amended by adding at the end 
the following:
    ``(mm) Assistance for Administrative, Oversight, and Contract 
Processing Costs.--
            ``(1) <<NOTE: Effective date.>>  In general.--Subject to 
        paragraph (3), for the 3 fiscal years beginning after the date 
        of enactment of this subsection, 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.

[[Page 125 STAT. 1853]]

            ``(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 <<NOTE: Determination.>>  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.
            ``(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) <<NOTE: Deadline.>>  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).''.

    (b) Technical and Conforming Amendments.--
            (1) In general.--Section 9 of the Small Business Act (15 
        U.S.C. 638), as amended by this title, is further amended--
                    (A) in subsection (f)(2), by striking ``shall not'' 
                and all that follows through ``make available for the 
                purpose'' and inserting ``shall not make available for 
                the purpose''; and
                    (B) in subsection (y)--
                          (i) by striking paragraph (4); and
                          (ii) by redesignating paragraphs (5) and (6) 
                      as paragraphs (4) and (5), respectively.
            (2) <<NOTE: Applicability.>>  Transitional rule.--
        Notwithstanding the amendments made by paragraph (1), 
        subsections (f)(2) and (y)(4) of section 9 of the Small Business 
        Act (15 U.S.C. 638), as in effect on the day before the date of 
        enactment of this Act,

[[Page 125 STAT. 1854]]

        shall continue to apply to each Federal agency until the 
        effective date of the performance criteria established by the 
        Administrator under subsection (mm)(3) of section 9 of the Small 
        Business Act, as added by subsection (a).
            (3) Prospective repeal.--Effective <<NOTE: Effective 
        date.>>  on the first day of the fourth full fiscal year 
        following the date of enactment of this Act, section 9 of the 
        Small Business Act (15 U.S.C. 638), as amended by paragraph (1) 
        of this section, is amended--
                    (A) in subsection (f)(2), by striking ``shall not 
                make available for the purpose'' and inserting the 
                following: ``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''; and
                    (B) in subsection (y)--
                          (i) by redesignating paragraphs (4) and (5) as 
                      paragraphs (5) and (6), respectively; and
                          (ii) by inserting after paragraph (3) the 
                      following:
            ``(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.''.

SEC. 5142. <<NOTE: 15 USC 638a.>> GAO STUDY WITH RESPECT TO 
                          VENTURE CAPITAL OPERATING COMPANY, HEDGE 
                          FUND, AND PRIVATE EQUITY FIRM 
                          INVOLVEMENT.

    Not <<NOTE: Deadlines.>>  later than 3 years after the date of 
enactment of this Act, and every 3 years thereafter, the Comptroller 
General of the United States shall--
            (1) conduct a study of the impact of requirements relating 
        to venture capital operating company, hedge fund, and private 
        equity firm involvement under section 9 of the Small Business 
        Act; and
            (2) <<NOTE: Reports.>>  submit to Congress a report 
        regarding the study conducted under paragraph (1).

SEC. 5143. <<NOTE: 15 USC 638b.>> REDUCING VULNERABILITY OF SBIR 
                          AND STTR PROGRAMS TO FRAUD, WASTE, AND 
                          ABUSE.

    (a) Fraud, Waste, and Abuse Prevention.--
            (1)Amendments required for fraud, waste, and abuse 
        prevention.--Not <<NOTE: Deadline.>>  later than 90 days after 
        the date of enactment of this Act, the Administrator shall amend 
        the SBIR Policy Directive and the STTR Policy Directive to 
        include measures to prevent fraud, waste, and abuse in the SBIR 
        program and the STTR program.

[[Page 125 STAT. 1855]]

            (2) Content of amendments.--The amendments required under 
        paragraph (1) shall include--
                    (A) definitions or descriptions of fraud, waste, and 
                abuse;
                    (B) <<NOTE: Guidelines.>>  guidelines for the 
                monitoring and oversight of applicants to and recipients 
                of awards under the SBIR program or the STTR program;
                    (C) a requirement that each Federal agency that 
                participates in the SBIR program or STTR program include 
                information concerning the method established by the 
                Inspector General of the Federal agency to report fraud, 
                waste, and abuse (including any telephone hotline or 
                Web-based platform)--
                          (i) on the Web site of the Federal agency; and
                          (ii) in any solicitation or notice of funding 
                      opportunity issued by the Federal agency for the 
                      SBIR program or the STTR program; and
                    (D) <<NOTE: Certification.>>  a requirement that 
                each applicant for and small business concern that 
                receives funding under the SBIR program or the STTR 
                program shall certify whether the applicant or small 
                business concern is in compliance with the laws relating 
                to the SBIR program and the STTR program and the conduct 
                guidelines established under the SBIR Policy Directive 
                and the STTR Policy Directive.
            (3) <<NOTE: Procedures. Requirements. Notice. Public 
        comment.>>  Consultation.--The Administrator shall develop, in 
        consultation with the Council of Inspectors General on Integrity 
        and Efficiency, the procedures and requirements for the 
        certification set forth under paragraph (2)(D) after providing 
        notice of and an opportunity for public comment on such 
        procedures and requirements.
            (4) Certification.--The certification developed under 
        paragraph (3) may--
                    (A) cover the lifecycle of an award to require 
                certifications at the application, funding, reporting, 
                and closeout phases of every SBIR and STTR award;
                    (B) require the small business concern to certify 
                compliance with the ``principal investigator primary 
                employment'' requirement, the ``small business concern'' 
                definition requirement, and the ``performance of work'' 
                requirements as set forth in the Directive applicable to 
                the award;
                    (C) require the small business concern to disclose 
                whether it has applied for, plans to apply for, or 
                received an SBIR or STTR award for identical or 
                essentially equivalent work (as defined under the SBIR 
                Policy Directive and the STTR Policy Directive), and 
                require the concern to certify that the award that it is 
                applying for or obtaining funding for is not identical 
                or essentially equivalent to work it has performed, or 
                will perform, in connection with any other SBIR or STTR 
                award that the concern has applied for or received from 
                any other agency except as fully disclosed to all 
                funding agencies; and
                    (D) require that the small business concern certify 
                that it will or did perform the work on the award at its 
                facilities with its employees, unless otherwise 
                indicated.
            (5) Inspectors general.--The Inspector General of each 
        Federal agency that participates in the SBIR program or STTR

[[Page 125 STAT. 1856]]

        program shall cooperate to prevent fraud, waste, and abuse in 
        the SBIR program and the STTR program by--
                    (A) establishing fraud detection indicators;
                    (B) reviewing regulations and operating procedures 
                of the Federal agency;
                    (C) coordinating information sharing between Federal 
                agencies, to the extent otherwise permitted under 
                Federal law; and
                    (D) improving the education and training of and 
                outreach to--
                          (i) administrators of the SBIR program and the 
                      STTR program of the Federal agency;
                          (ii) applicants to the SBIR program or the 
                      STTR program; and
                          (iii) recipients of awards under the SBIR 
                      program or the STTR program.

    (b) Study and Report.--Not later than 1 year after the date of 
enactment of this Act to establish a baseline of changes made to the 
program to fight fraud, waste, and abuse, and every 4 years thereafter 
to evaluate the effectiveness of the agency strategies, the Comptroller 
General of the United States shall--
            (1) conduct a study that evaluates--
                    (A) the implementation by each Federal agency that 
                participates in the SBIR program or the STTR program of 
                the amendments to the SBIR Policy Directive and the STTR 
                Policy Directive made pursuant to subsection (a);
                    (B) the effectiveness of the management information 
                system of each Federal agency that participates in the 
                SBIR program or STTR program in identifying duplicative 
                SBIR and STTR projects;
                    (C) the effectiveness of the risk management 
                strategies of each Federal agency that participates in 
                the SBIR program or STTR program in identifying areas of 
                the SBIR program or the STTR program that are at high 
                risk for fraud;
                    (D) technological tools that may be used to detect 
                patterns of behavior that may indicate fraud by 
                applicants to the SBIR program or the STTR program;
                    (E) the success of each Federal agency that 
                participates in the SBIR program or STTR program in 
                reducing fraud, waste, and abuse in the SBIR program or 
                the STTR program of the Federal agency;
                    (F) the extent to which the Inspector General of 
                each Federal agency that participates in the SBIR and 
                STTR program effectively conducts investigations, 
                audits, inspections, and outreach relating to the SBIR 
                and STTR programs of the Federal agency; and
                    (G) the effectiveness of the Government and public 
                databases described in section 9(k) of the Small 
                Business Act (15 U.S.C. 638(k)) in reducing 
                vulnerabilities of the SBIR program and the STTR program 
                to fraud, waste, and abuse, particularly with respect to 
                Federal agencies funding duplicative proposals and 
                business concerns falsifying information in proposals; 
                and
            (2) submit to the Committee on Small Business and 
        Entrepreneurship of the Senate, the Committee on Small Business 
        and the Committee on Science, Space, and Technology

[[Page 125 STAT. 1857]]

        of the House of Representatives, and the head of each Federal 
        agency that participates in the SBIR program or STTR program a 
        report on the results of the study conducted under paragraph 
        (1).

    (c) Inspector General Reports.--Not later than October 1 of each 
year, the Inspector General of each Federal agency that participates in 
the SBIR program or STTR program 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 describing--
            (1) the number of cases referred to the Inspector General in 
        the preceding year that related to fraud, waste, or abuse with 
        respect to the SBIR program or STTR program;
            (2) the actions taken in each case described in paragraph 
        (1) if fraud, waste, or abuse was determined to have occurred;
            (3) if no action was taken in a case described in paragraph 
        (1) and fraud, waste, or abuse was determined to have occurred, 
        the justification for action not being taken; and
            (4) an accounting of the funds used to address fraud, waste, 
        and abuse, including a description of personnel and resources 
        funded and funds that were recovered or saved.

SEC. 5144. SIMPLIFIED PAPERWORK REQUIREMENTS.

    Section 9(v) of the Small Business Act (15 U.S.C. 638(v)) is 
amended--
            (1) in the subsection heading, by striking ``Simplified 
        Reporting Requirements'' and inserting ``Reducing Paperwork and 
        Compliance Burden'';
            (2) by striking ``The Administrator'' and inserting the 
        following:
            ``(1) Standardization of reporting requirements.--The 
        Administrator''; and
            (3) by adding at the end the following:
            ``(2) Simplification of application and award process.--
        Not <<NOTE: Deadline. Public 
        comment. Regulations. Guidelines.>>  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.''.

                      Subtitle D--Policy Directives

SEC. 5151. <<NOTE: 15 USC 638 note.>> CONFORMING AMENDMENTS TO THE 
                          SBIR AND THE STTR POLICY DIRECTIVES.

    (a) In General.--Not <<NOTE: Deadline.>> later than 180 days after 
the date of enactment of this Act, the Administrator shall promulgate 
amendments to the SBIR Policy Directive and the STTR Policy Directive

[[Page 125 STAT. 1858]]

to conform such directives to this title and the amendments made by this 
title.

    (b) Publishing SBIR Policy Directive and the STTR Policy Directive 
in the Federal Register.--Not <<NOTE: Deadline.>>  later than 180 days 
after the date of enactment of this Act, the Administrator shall publish 
the amended SBIR Policy Directive and the amended STTR Policy Directive 
in the Federal Register.

                      Subtitle E--Other Provisions

SEC. 5161. REPORT ON SBIR AND STTR PROGRAM GOALS.

    Section 9 of the Small Business Act (15 U.S.C. 638), as amended by 
this title, is further amended by adding at the end the following:
    ``(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) <<NOTE: Web posting.>>  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.''.

SEC. 5162. COMPETITIVE SELECTION PROCEDURES FOR SBIR AND STTR 
                          PROGRAMS.

    Section 9 of the Small Business Act (15 U.S.C. 638), as amended by 
this title, is further amended by adding at the end the following:
    ``(oo) Competitive Selection Procedures for SBIR and STTR 
Programs.--All funds awarded, appropriated, or otherwise

[[Page 125 STAT. 1859]]

made available in accordance with subsection (f) or (n) must be awarded 
pursuant to competitive and merit-based selection procedures.''.
SEC. 5163. LOAN RESTRICTIONS.

    Not later <<NOTE: Deadline. Reports.>>  than 180 days after the date 
of enactment of this Act, the Administrator shall submit to the 
Committee on Small Business and the Committee on Science, Space, and 
Technology of the House of Representatives and the Committee on Small 
Business and Entrepreneurship of the Senate a report analyzing what 
restrictions, conditions, or covenants contained in a note, bond, 
debenture, other evidence of indebtedness, or preferred stock should 
constitute affiliation under section 121.103(a) of title 13, Code of 
Federal Regulations, for purposes of section 9 of the Small Business Act 
(15 U.S.C. 638).

SEC. 5164. LIMITATION ON PILOT PROGRAMS.

    Section 9 of the Small Business Act (15 U.S.C. 638), as amended by 
this title, is further amended by adding at the end the following:
    ``(pp) <<NOTE: Time periods.>>  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.''.

SEC. 5165. COMMERCIALIZATION SUCCESS.

    Section 9 of the Small Business Act (15 U.S.C. 638), as amended by 
this title, is further amended by adding at the end the following:
    ``(qq) Minimum Standards for Participation.--
            ``(1) Progress to phase ii success.--
                    ``(A) Establishment of system and minimum 
                commercialization rate.--Not <<NOTE: Deadline.>>  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

[[Page 125 STAT. 1860]]

                          ``(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 <<NOTE: Determination. Time 
                period.>>  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 <<NOTE: Deadline.>>  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 <<NOTE: Determination. Time 
                period.>>  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 <<NOTE: Determination.>> Administrator. In making a 
                determination with respect to approval, the 
                Administrator shall ensure that the minimum performance 
                standard exceeds a de minimis <<NOTE: Web 
                posting.>> level. The Administrator shall publish on the 
                Internet Web site of the Administration the systems and 
                minimum performance standards approved.

[[Page 125 STAT. 1861]]

                    ``(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) <<NOTE: Time period.>>  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.''.

SEC. 5166. PUBLICATION OF CERTAIN INFORMATION.

    Section 9 of the Small Business Act (15 U.S.C. 638), as amended by 
this title, is further amended by adding at the end the following:
    ``(rr) Publication of Certain Information.--In <<NOTE: Web site.>>  
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.''.
SEC. 5167. REPORT ON ENHANCEMENT OF MANUFACTURING ACTIVITIES.

    Section 9 of the Small Business Act (15 U.S.C. 638), as amended by 
this title, is further amended by adding at the end the following:
    ``(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.''.

[[Page 125 STAT. 1862]]

SEC. 5168. <<NOTE: 15 USC 638 note.>> COORDINATION OF THE SBIR 
                          PROGRAM AND THE EXPERIMENTAL PROGRAM TO 
                          STIMULATE COMPETITIVE RESEARCH.

    (a) Coordination Required.--The head of a Federal agency that 
participates in the SBIR program and the Experimental Program to 
Stimulate Competitive Research or the Institutional Development Award 
Program shall coordinate, to the extent possible, the initiatives of the 
agency with respect to such programs.
    (b) Coordination Report.--Not later than 1 year after the date of 
enactment of this Act, the head of each Federal agency that participates 
in the SBIR program and the Experimental Program to Stimulate 
Competitive Research or the Institutional Development Award Program 
shall submit to the Administrator, the Committee on Small Business and 
the Committee on Science, Space, and Technology of the House of 
Representatives, and the Committee on Small Business and 
Entrepreneurship of the Senate a report describing the actions taken 
during the preceding 1-year period to increase coordination between such 
programs to maximize existing resources.
    (c) Participation Report.--Not later than 3 years after the date of 
enactment of this Act, the head of each Federal agency that participates 
in the SBIR program and the Experimental Program to Stimulate 
Competitive Research or the Institutional Development Award Program 
shall submit to the Administrator, the Committee on Small Business and 
the Committee on Science, Space, and Technology of the House of 
Representatives, and the Committee on Small Business and 
Entrepreneurship of the Senate a report analyzing whether actions taken 
to increase the coordination of such programs have been successful in 
attracting entrepreneurs into the SBIR program and increasing the 
participation of States with respect to which a low level of SBIR awards 
have historically been awarded.

    Approved December 31, 2011.

LEGISLATIVE HISTORY--H.R. 1540 (S. 1867):
---------------------------------------------------------------------------

HOUSE REPORTS: No. 112-78 and Pt. 2 (Comm. on Armed Services) and 112-
329 (Comm. of Conference).
CONGRESSIONAL RECORD, Vol. 157 (2011):
            May 24-26, considered and passed House.
            Dec. 1, considered and passed Senate, amended, in lieu of S. 
                1867.
            Dec. 14, House agreed to conference report.
            Dec. 15, Senate agreed to conference report.
DAILY COMPILATION OF PRESIDENTIAL DOCUMENTS (2011):
            Dec. 31, Presidential statement.

                                  <all>