[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.
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