II
111th CONGRESS
1st Session
S. 1233
IN THE SENATE OF THE UNITED STATES
June 10, 2009
Ms. Landrieu (for herself and Ms. Snowe) introduced the following bill; which was read twice and referred to the Committee on Small Business and Entrepreneurship
A BILL
To reauthorize and improve the SBIR and STTR programs, and for other purposes.
Short title
This Act may be cited as
the SBIR/STTR Reauthorization Act of
2009
.
Table of contents
The table of contents for this Act is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. Definitions.
TITLE I—Reauthorization of the SBIR and STTR programs
Sec. 101. Extension of termination dates.
Sec. 102. Status of the Office of Technology.
Sec. 103. SBIR allocation increase.
Sec. 104. STTR allocation increase.
Sec. 105. SBIR and STTR award levels.
Sec. 106. Agency and program collaboration.
Sec. 107. Elimination of Phase II invitations.
Sec. 108. Majority-venture investments in SBIR firms.
Sec. 109. SBIR and STTR special acquisition preference.
Sec. 110. Collaborating with Federal laboratories and research and development centers.
Sec. 111. Notice requirement.
TITLE II—Outreach and commercialization initiatives
Sec. 201. Rural and State outreach.
Sec. 202. SBIR–STEM Workforce Development Grant Pilot Program.
Sec. 203. Technical assistance for awardees.
Sec. 204. Commercialization pilot program at Department of Defense.
Sec. 205. Commercialization Pilot Program for civilian agencies.
Sec. 206. Nanotechnology initiative.
Sec. 207. Accelerating cures.
TITLE III—Oversight and evaluation
Sec. 301. Streamlining annual evaluation requirements.
Sec. 302. Data collection from agencies for SBIR.
Sec. 303. Data collection from agencies for STTR.
Sec. 304. Public database.
Sec. 305. Government database.
Sec. 306. Accuracy in funding base calculations.
Sec. 307. Continued evaluation by the National Academy of Sciences.
Sec. 308. Technology insertion reporting requirements.
Sec. 309. Intellectual property protections.
TITLE IV—Policy directives
Sec. 401. Conforming amendments to the SBIR and the STTR Policy Directives.
Definitions
In this Act—
the terms Administration and Administrator mean the Small Business Administration and the Administrator thereof, respectively;
the terms extramural budget, Federal agency, Small Business Innovation Research Program, SBIR, Small Business Technology Transfer Program, and STTR have the meanings given such terms in section 9 of the Small Business Act (15 U.S.C. 638); and
the term small business concern has the same meaning as under section 3 of the Small Business Act (15 U.S.C. 632).
Reauthorization of the SBIR and STTR programs
Extension of termination dates
SBIR
Section
9(m) of the Small Business Act (15 U.S.C. 638(m)) is amended by striking
2008
and inserting 2023
.
STTR
Section
9(n)(1)(A) of the Small Business Act (15 U.S.C. 638(n)(1)(A)) is amended by
striking 2009
and inserting 2023
.
Status of the Office of Technology
Section 9(b) of the Small Business Act (15 U.S.C. 638(b)) is amended—
in paragraph (7),
by striking and
at the end;
in paragraph (8),
by striking the period at the end and inserting ; and
;
by redesignating paragraph (8) as paragraph (9); and
by adding at the end the following:
to maintain an Office of Technology to carry out the responsibilities of the Administration under this section, which shall be—
headed by the Assistant Administrator for Technology, who shall report directly to the Administrator; and
independent from the Office of Government Contracting of the Administration and sufficiently staffed and funded to comply with the oversight, reporting, and public database responsibilities assigned to the Office of Technology by the Administrator.
.
SBIR allocation increase
Section 9(f) of the Small Business Act (15 U.S.C. 638(f)) is amended—
in paragraph (1)—
in the matter
preceding subparagraph (A), by striking Each
and inserting
Except as provided in paragraph (2)(C), each
;
in subparagraph
(B), by striking and
at the end; and
by striking subparagraph (C) and inserting the following:
not less than 2.5 percent of such budget in each of fiscal years 2009 and 2010;
not less than 2.6 percent of such budget in fiscal year 2011;
not less than 2.7 percent of such budget in fiscal year 2012;
not less than 2.8 percent of such budget in fiscal year 2013;
not less than 2.9 percent of such budget in fiscal year 2014;
not less than 3.0 percent of such budget in fiscal year 2015;
not less than 3.1 percent of such budget in fiscal year 2016;
not less than 3.2 percent of such budget in fiscal year 2017;
not less than 3.3 percent of such budget in fiscal year 2018;
not less than 3.4 percent of such budget in fiscal year 2019; and
not less than 3.5 percent of such budget in fiscal year 2020 and each fiscal year thereafter,
; and
in paragraph (2)—
by redesignating subparagraphs (A) and (B) as clauses (i) and (ii), respectively, and adjusting the margins accordingly;
by striking
A Federal agency
and inserting the following:
In general
A Federal agency
; and
by adding at the end the following:
Department of Defense and Department of Energy
For the Department of Defense and the Department of Energy, to the greatest extent practicable, the percentage of the extramural budget in excess of 2.5 percent required to be expended with small business concerns under subparagraphs (D) through (M) of paragraph (1)—
may not be used for new Phase I or Phase II awards; and
shall be used for activities that further the readiness levels of technologies developed under Phase II awards, including conducting testing and evaluation to promote the transition of such technologies into commercial or defense products, or systems furthering the mission needs of the Department of Defense or the Department of Energy, as the case may be.
Department of Health and Human Services
Subparagraphs (D) through (M) of paragraph (1) shall not apply to the Department of Health and Human Services. For fiscal year 2009, and each fiscal year thereafter, the Department of Health and Human Services shall expend with small business concerns not less than 2.5 percent of the extramural budget for research or research and development of the Department of Health and Human Services.
.
STTR allocation increase
Section 9(n)(1)(B) of the Small Business Act (15 U.S.C. 638(n)(1)(B)) is amended—
in clause (i), by
striking and
at the end;
in clause (ii),
by striking thereafter.
and inserting through fiscal year
2010;
; and
by adding at the end the following:
0.4 percent for fiscal years 2011 and 2012;
0.5 percent for fiscal years 2013 and 2014; and
0.6 percent for fiscal year 2015 and each fiscal year thereafter.
.
SBIR and STTR award levels
SBIR adjustments
Section 9(j)(2)(D) of the Small Business Act (15 U.S.C. 638(j)(2)(D)) is amended—
by striking
$100,000
and inserting $150,000
; and
by striking
$750,000
and inserting $1,000,000
.
STTR adjustments
Section 9(p)(2)(B)(ix) of the Small Business Act (15 U.S.C. 638(p)(2)(B)(ix)) is amended—
by striking
$100,000
and inserting $150,000
; and
by striking
$750,000
and inserting $1,000,000
.
Triennial adjustments
Section 9 of the Small Business Act (15 U.S.C. 638) is amended—
in subsection (j)(2)(D)—
by striking
5 years
and inserting 3 years
; and
by striking
and programmatic considerations
; and
in subsection
(p)(2)(B)(ix) by striking greater or lesser amounts to be awarded at the
discretion of the awarding agency,
and inserting an adjustment
for inflation of such amounts once every 3 years,
.
Limitation on certain awards
Section 9 of the Small Business Act (15 U.S.C. 638) is amended by adding at the end the following:
Limitation on certain awards
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.
Maintainance of information
Participating agencies shall maintain information on awards exceeding the guidelines established under this section, including—
the amount of each award;
a justification for exceeding the award amount;
the identity and location of each award recipient; and
whether a recipient has received any venture capital investment and, if so, whether the recipient is majority-owned and controlled by multiple venture capital companies.
Reports
The Administrator shall include the information described in paragraph (2) in the annual report of the Administrator to Congress.
.
Agency and program collaboration
Section 9 of the Small Business Act (15 U.S.C. 638), as amended by this Act, is amended by adding at the end the following:
Subsequent phases
Agency collaboration
A small business concern that received an award from a Federal agency under this section shall be eligible to receive an award for a subsequent phase 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).
SBIR and STTR collaboration
A small business concern which received an award under this section under the SBIR program or the STTR program may receive an award under this section for a subsequent phase 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).
.
Elimination of Phase II invitations
In general
Section 9(e) of the Small Business Act (15 U.S.C. 638(e)) is amended—
in paragraph
(4)(B), by striking to further
and inserting: which shall
not include any invitation, pre-screening, pre-selection, or down-selection
process for eligibility for the second phase, that will further
;
and
in paragraph
(6)(B), by striking to further develop proposed ideas to
and
inserting which shall not include any invitation, pre-screening,
pre-selection, or down-selection process for eligibility for the second phase,
that will further develop proposals that
.
Technical and conforming amendments
Section 9 of the Small Business Act (15 U.S.C. 638) is amended—
in section 9—
in subsection (e)—
in
paragraph (8), by striking and
at the end;
in paragraph (9)—
by striking
the second or the third phase
and inserting Phase II or
Phase III
; and
by striking the period at the end and inserting a semicolon; and
by adding at the end the following:
the term Phase I means—
with respect to the SBIR program, the first phase described in paragraph (4)(A); and
with respect to the STTR program, the first phase described in paragraph (6)(A);
the term Phase II means—
with respect to the SBIR program, the second phase described in paragraph (4)(B); and
with respect to the STTR program, the second phase described in paragraph (6)(B); and
the term Phase III means—
with respect to the SBIR program, the third phase described in paragraph (4)(C); and
with respect to the STTR program, the third phase described in paragraph (6)(C).
;
in subsection (j)—
in
paragraph (1)(B), by striking phase two
and inserting
Phase II
;
in paragraph (2)—
in subparagraph (B)—
by
striking the third phase
each place it appears and inserting
Phase III
; and
by
striking the second phase
and inserting Phase
II
;
in subparagraph (D)—
by
striking the first phase
and inserting Phase I
;
and
by
striking the second phase
and inserting Phase
II
;
in subparagraph
(F), by striking the third phase
and inserting Phase
III
;
in subparagraph (G)—
by
striking the first phase
and inserting Phase I
;
and
by striking
the second phase
and inserting Phase II
;
and
in subparagraph (H)—
by
striking the first phase
and inserting Phase
I
;
by striking
second phase
each place it appears and inserting Phase
II
; and
by striking
third phase
and inserting Phase III
; and
in paragraph (3)—
in subparagraph (A)—
by
striking the first phase (as described in subsection (e)(4)(A))
and inserting Phase I
;
by striking
the second phase (as described in subsection (e)(4)(B))
and
inserting Phase II
; and
by striking
the third phase (as described in subsection (e)(4)(C))
and
inserting Phase III
; and
in subparagraph
(B), by striking second phase
and inserting Phase
II
;
in subsection (k)—
by
striking first phase
each place it appears and inserting
Phase I
; and
by striking
second phase
each place it appears and inserting Phase
II
;
in subsection (l)(2)—
by striking
the first phase
and inserting Phase I
; and
by striking
the second phase
and inserting Phase II
;
in subsection (o)(13)—
in subparagraph
(B), by striking second phase
and inserting Phase
II
; and
in subparagraph
(C), by striking third phase
and inserting Phase
III
;
in subsection (p)—
in paragraph (2)(B)—
in clause (vi)—
by striking
the second phase
and inserting Phase II
;
and
by striking
the third phase
and inserting Phase III
;
and
in clause (ix)—
by striking
the first phase
and inserting Phase I
; and
by striking
the second phase
and inserting Phase II
;
and
in paragraph (3)—
by striking
the first phase (as described in subsection (e)(6)(A))
and
inserting Phase I
;
by striking
the second phase (as described in subsection (e)(6)(B))
and
inserting Phase II
; and
by striking
the third phase (as described in subsection (e)(6)(A))
and
inserting Phase III
;
in subsection (q)(3)—
in subparagraph (A)—
in the
subparagraph heading, by striking First phase
and inserting
Phase
I
; and
by striking
first phase
and inserting Phase I
; and
in subparagraph (B)—
in the
subparagraph heading, by striking Second phase
and inserting
Phase
II
; and
by striking
second phase
and inserting Phase II
;
in subsection (r)—
in the subsection
heading, by striking Third Phase
and inserting
Phase
III
;
in paragraph (1)—
in the first sentence—
by striking
for the second phase
and inserting for Phase
II
;
by striking
third phase
and inserting Phase III
; and
by striking
second phase period
and inserting Phase II
period
; and
in the second sentence—
by striking
second phase
and inserting Phase II
; and
by striking
third phase
and inserting Phase III
; and
in paragraph
(2), by striking third phase
and inserting Phase
III
; and
in subsection
(u)(2)(B), by striking the first phase
and inserting
Phase I
;
in section 34—
in subsection
(c)(2)(B)(ii), by striking first phase and second phase SBIR
awards
and inserting Phase I and Phase II SBIR awards (as
defined in section 9(e))
; and
in subsection (e)(2)(A)—
in clause (i), by
striking first phase awards
and all that follows and inserting
Phase I awards (as defined in section 9(e));
; and
by striking
first phase
each place it appears and inserting Phase
I
; and
in section
35(c)(2)(B)(vii), by striking third phase
and inserting
Phase III
.
Majority-venture investments in SBIR firms
In general
Section 9 of the Small Business Act (15 U.S.C. 638), as amended by this Act, is amended by adding at the end the following:
Majority-venture investments in SBIR firms
Authority and determination
In general
Upon a written determination provided not later than 30 days in advance to the Administrator and to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives—
the head of the SBIR program of the National Institutes of Health may award not more than 18 percent of the SBIR funds of the National Institutes of Health allocated in accordance with this Act, in the first full fiscal year beginning after the date of enactment of this subsection, and each fiscal year thereafter, to small business concerns that are owned in majority part by venture capital companies and that satisfy the qualification requirements under paragraph (2) through competitive, merit-based procedures that are open to all eligible small business concerns; and
the head of any other Federal agency participating in the SBIR program may award not more than 8 percent of the SBIR funds of the Federal agency allocated in accordance with this Act, in the first full fiscal year beginning after the date of enactment of this subsection, and each fiscal year thereafter, to small business concerns that are majority owned by venture capital companies and that satisfy the qualification requirements under paragraph (2) through competitive, merit-based procedures that are open to all eligible small business concerns.
Determination
A written determination made under subparagraph (A) shall explain how the use of the authority under that subparagraph will induce additional venture capital funding of small business innovations, substantially contribute to the mission of the funding Federal agency, demonstrate a need for public research, and otherwise fulfill the capital needs of small business concerns for additional financing for the SBIR project.
Qualification requirements
The Administrator shall establish requirements relating to the affiliation by small business concerns with venture capital companies, which may not exclude a United States small business concern from participation in the program under paragraph (1) on the basis that the small business concern is owned in majority part by, or controlled by, more than 1 United States venture capital company, so long as no single venture capital company owns more than 49 percent of the small business concern.
Registration
A small business concern that is majority owned and controlled by multiple venture capital companies and qualified for participation in the program authorized under paragraph (1) shall—
register with the Administrator on the date that the small business concern submits an application for an award under the SBIR program; and
indicate whether the small business concern is registered under subparagraph (A) in any SBIR proposal.
Compliance
A Federal agency described in paragraph (1) shall collect data regarding the number and dollar amounts of phase I, phase II, and all other categories of awards under the SBIR program, and the Administrator shall report on the data and the compliance of each such Federal agency with the maximum amounts under paragraph (1) as part of the annual report by the Administration under subsection (b)(7).
Enforcement
If a Federal agency awards more than the amount authorized under paragraph (1) for a purpose described in paragraph (1), the amount awarded in excess of the amount authorized under paragraph (1) shall be transferred to the funds for general SBIR programs from the non-SBIR research and development funds of the Federal agency within 60 days of the date on which the Federal agency awarded more than the amount authorized under paragraph (1) for a purpose described in paragraph (1).
.
Technical and conforming amendment
Section 3 of the Small Business Act (15 U.S.C. 632) is amended by adding at the end the following:
Venture capital company
In this Act, the term venture capital 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).
.
Assistance for determining affiliates
Not later than 30 days after the date of enactment of this Act, the Administrator shall post on the website of the Administration (with a direct link displayed on the homepage of the website of the Administration or the SBIR website of the Administration)—
a clear explanation of the SBIR affiliation rules under part 121 of title 13, Code of Federal Regulations; and
contact information for officers or employees of the Administration who—
upon request, shall review an issue relating to the rules described in paragraph (1); and
shall respond to a request under subparagraph (A) not later than 20 business days after the date on which the request is received.
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:
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.
.
Collaborating with Federal laboratories and research and development centers
Section 9 of the Small Business Act (15 U.S.C. 638), as amended by this Act, is amended by adding at the end the following:
Collaborating with Federal laboratories and research and development centers
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—
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
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.
Prohibition
No Federal agency shall—
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;
approve an agreement between a small business concern receiving a SBIR or STTR award and a Federal laboratory or federally funded laboratory or research and development center, if the small business concern performs a lesser portion of the activities to be performed under that award than required by this section and by the SBIR Policy Directive and the STTR Policy Directive of the Administrator; or
approve an agreement that violates any provision, including any data rights protections provision, of this section or the SBIR and the STTR Policy Directives.
Implementation
Not later than 180 days after the date of enactment of this subsection, the Administrator shall modify the SBIR Policy Directive and the STTR Policy Directive issued under this section to ensure that small business concerns—
have the flexibility to use the resources of the Federal laboratories and federally funded research and development centers; and
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.
.
Notice requirement
The head of any Federal agency involved in a case or controversy before any Federal judicial or administrative tribunal concerning the SBIR program or the STTR program shall provide timely notice, as determined by the Administrator, of the case or controversy to the Administrator.
Outreach and commercialization initiatives
Rural and State outreach
Outreach
Section 9 of the Small Business Act (15 U.S.C. 638) is amended by inserting after subsection (r) the following:
Outreach
Definition of eligible State
In this subsection, the term eligible State means a State—
for which the total value of contracts awarded to the State under this section during the most recent fiscal year for which data is available was less than $5,000,000; and
that certifies to the Administrator that the State will, upon receipt of assistance under this subsection, provide matching funds from non-Federal sources in an amount that is not less than 50 percent of the amount provided under this subsection.
Program authority
Of amounts made available to carry out this section for each of fiscal years 2010 through 2014, the Administrator may expend with eligible States not more than $5,000,000 in each such fiscal year in order to increase the participation of small business concerns located in those States in the programs under this section.
Amount of assistance
The amount of assistance provided to an eligible State under this subsection in any fiscal year—
shall be equal to not more than 50 percent of the total amount of matching funds from non-Federal sources provided by the State; and
shall not exceed $100,000.
Use of assistance
Assistance provided to an eligible State under this subsection shall be used by the State, in consultation with State and local departments and agencies, for programs and activities to increase the participation of small business concerns located in the State in the programs under this section, including—
the establishment of quantifiable performance goals, including goals relating to—
the number of program awards under this section made to small business concerns in the State; and
the total amount of Federal research and development contracts awarded to small business concerns in the State;
the provision of competition outreach support to small business concerns in the State that are involved in research and development; and
the development and dissemination of educational and promotional information relating to the programs under this section to small business concerns in the State.
.
Federal and State Program Extension
Section 34 of the Small Business Act (15 U.S.C. 657d) is amended—
in subsection
(h), by striking 2001 through 2005
each place it appears and
inserting 2010 through 2014
; and
in subsection
(i), by striking 2005
and inserting 2014
.
Rural areas
Section 34(e)(2) of the Small Business Act (15 U.S.C. 657d(e)(2)) is amended—
by redesignating subparagraphs (C) and (D) as subparagraphs (D) and (E), respectively; and
by inserting after subparagraph (B) the following:
Rural areas
In general
Except as provided in clause (ii), the non-Federal share of the cost of the activity carried out using an award or under a cooperative agreement under this section shall be 50 cents for each Federal dollar that will be directly allocated by a recipient described in paragraph (A) to serve small business concerns located in a rural area.
Enhanced rural awards
For a recipient located in a rural area that is located in a State described in subparagraph (A)(i), the non-Federal share of the cost of the activity carried out using an award or under a cooperative agreement under this section shall be 35 cents for each Federal dollar that will be directly allocated by a recipient described in paragraph (A) to serve small business concerns located in the rural area.
Definition of rural area
In this subparagraph, the term rural area has the meaning given that term in section 1393(a)(2)) of the Internal Revenue Code of 1986.
.
SBIR–STEM Workforce Development Grant Pilot Program
Pilot program established
From amounts made available to carry out this
section, the Administrator shall establish a SBIR–STEM Workforce Development
Grant Pilot Program to encourage the business community to provide workforce
development opportunities for college students, in the fields of science,
technology, engineering, and math (in this section referred to as STEM
college students
), by providing a SBIR bonus grant.
Eligible entities defined
In this section the term eligible
entity
means a grantee receiving a grant under the SBIR Program on the
date of the bonus grant under subsection (a) that provides an internship
program for STEM college students.
Awards
An eligible entity shall receive a bonus grant equal to 10 percent of either a Phase I or Phase II grant, as applicable, with a total award maximum of not more than $10,000 per year.
Evaluation
Following the fourth year of funding under this section, the Administrator shall submit a report to Congress on the results of the SBIR–STEM Workforce Development Grant Pilot Program.
Authorization of appropriations
There are authorized to be appropriated to carry out this section—
$1,000,000 for fiscal year 2011;
$1,000,000 for fiscal year 2012;
$1,000,000 for fiscal year 2013;
$1,000,000 for fiscal year 2014; and
$1,000,000 for fiscal year 2015.
Technical assistance for awardees
Section 9(q)(3) of the Small Business Act (15 U.S.C. 638(q)(3)) is amended—
in subparagraph
(A), by striking $4,000
and inserting
$5,000
;
in subparagraph (B)—
by striking
, with funds available from their SBIR awards,
; and
by striking
$4,000 per year
and inserting $5,000 per year, which
shall be in addition to the amount of the recipient’s award
.
by adding at the end the following:
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.
Limitation
A Federal agency may not—
use the amounts authorized under subparagraph (A) or (B) unless the vendor selected under paragraph (2) provides the technical assistance to the recipient; or
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.
.
Commercialization pilot program at Department of Defense
Section 9(y) of the Small Business Act (15 U.S.C. 638(y)) is amended—
in paragraph (1)—
by inserting
or Small Business Technology Transfer Program
after Small
Business Innovation Research Program
; and
by adding at the
end the following: The authority to create and administer a
Commercialization Pilot 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).
;
in paragraph (2),
by inserting or Small Business Technology Transfer Program
after
Small Business Innovation Research Program
;
by redesignating paragraphs (5) and (6) as paragraphs (7) and (8), respectively;
by inserting after paragraph (4) the following:
Insertion incentives
For any contract with a value of not less than $100,000,000, the Secretary of Defense is authorized to—
establish goals for the transition of Phase III technologies in subcontracting plans; and
require a prime contractor on such a contract to report the number and dollar amount of contracts entered into by that prime contractor for Phase III SBIR or STTR projects.
Goal for SBIR and STTR technology insertion
The Secretary of Defense shall—
set a goal to increase the number of Phase II SBIR contracts and the number of Phase II STTR contracts awarded by that Secretary that lead to technology transition into programs of record or fielded systems;
use incentives in effect on the date of enactment of the SBIR/STTR Reauthorization Act of 2009, or create new incentives, to encourage agency program managers and prime contractors to meet the goal under subparagraph (A); and
include in the annual report to Congress the percentage of contracts described in subparagraph (A) awarded by that Secretary, and information on the ongoing status of projects funded through the Commercialization Pilot Program and efforts to transition these technologies into programs of record or fielded systems.
; and
in paragraph (8),
as so redesignated, by striking fiscal year 2009
and inserting
fiscal year 2014
.
Commercialization Pilot Program for civilian agencies
Section 9 of the Small Business Act (15 U.S.C. 638), as amended by this Act, is amended by adding at the end the following:
Pilot program
Authorization
The head of each covered Federal agency may set aside not more than 10 percent of the SBIR and STTR funds of such agency for further technology development, testing, and evaluation of SBIR and STTR Phase II technologies.
Application by Federal agency
In general
A covered Federal agency may not establish a pilot program unless such agency makes a written application to the Administrator, not later than 90 days before to the first day of the fiscal year in which the pilot program is to be established, that describes a compelling reason that additional investment in SBIR or STTR technologies is necessary, including unusually high regulatory, systems integration, or other costs relating to development or manufacturing of identifiable, highly promising small business technologies or a class of such technologies expected to substantially advance the mission of the agency.
Determination
The Administrator shall—
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;
publish the determination in the Federal Register; and
make a copy of the determination and any related materials available to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives.
Maximum amount of award
The head of a Federal agency may not make an award under a pilot program in excess of 2 times the dollar amounts generally established for Phase II awards under subsection (j)(2)(D) or (p)(2)(B)(ix).
Matching
The head of a Federal agency may not make an award under a pilot program unless new private, Federal non-SBIR, or Federal non-STTR funding which at least matches the award from the Federal agency is provided for SBIR or STTR Phase II technology.
Eligibility for award
The head of a Federal agency may make an award under a pilot program to any applicant that is eligible to receive a Phase III award related to technology developed in Phase II of an SBIR or STTR project.
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.
Termination
The authority to establish a pilot program under this section expires at the end of fiscal year 2014.
Definitions
In this section—
the term covered Federal agency—
means a Federal agency participating in the SBIR program or the STTR program; and
does not include the Department of Defense; and
the term pilot program means the program established under paragraph (1).
.
Nanotechnology initiative
In general
Section 9 of the Small Business Act (15 U.S.C. 638), as amended by this Act, is amended by adding at the end the following:
Nanotechnology initiative
Each Federal agency participating in the SBIR or STTR program shall encourage the submission of applications for support of nanotechnology related projects to such program.
.
Sunset
Effective October 1, 2014, subsection (ff) of the Small Business Act, as added by subsection (a) of this section, is repealed.
Accelerating cures
The Small Business Act (15 U.S.C. 631 et seq.) is amended—
by redesignating section 44 as section 45; and
by inserting after section 43 the following:
Small Business Innovation Research Program
NIH cures pilot
Establishment
An
independent advisory board shall be established at the National Academy of
Sciences (in this section referred to as the advisory board
) to
conduct periodic evaluations of the SBIR program (as that term is defined in
section 9) of each of the National Institutes of Health (referred to in this
section as the NIH
) institutes and centers for the purpose of
improving the management of the SBIR program through data-driven
assessment.
Membership
In general
The advisory board shall consist of—
the Director of the NIH;
the Director of the SBIR program of the NIH;
senior NIH agency managers, selected by the Director of NIH;
industry experts, selected by the Council of the National Academy of Sciences in consultation with the Associate Administrator for Technology of the Administration and the Director of the Office of Science and Technology Policy; and
owners or operators of small business concerns that have received an award under the SBIR program of the NIH, selected by the Associate Administrator for Technology of the Administration.
Number of members
The total number of members selected under clauses (iii), (iv), and (v) of subparagraph (A) shall not exceed 10.
Equal representation
The total number of members of the advisory board selected under clauses (i), (ii), (iii), and (iv) of subparagraph (A) shall be equal to the number of members of the advisory board selected under subparagraph (A)(v).
Addressing data gaps
In order to enhance the evidence-base guiding SBIR program
decisions and changes, the Director of the SBIR program of the NIH shall
address the gaps and deficiencies in the data collection concerns identified in
the 2007 report of the National Academies of Science entitled An
Assessment of the Small Business Innovation Research Program at the
NIH
.
Pilot program
In general
The Director of the SBIR program of the NIH may initiate a pilot program, under a formal mechanism for designing, implementing, and evaluating pilot programs, to spur innovation and to test new strategies that may enhance the development of cures and therapies.
Considerations
The Director of the SBIR program of the NIH may consider conducting a pilot program to include individuals with successful SBIR program experience in study sections, hiring individuals with small business development experience for staff positions, separating the commercial and scientific review processes, and examining the impact of the trend toward larger awards on the overall program.
Report to Congress
The Director of the NIH shall submit an annual report to Congress and the advisory board on the activities of the SBIR program of the NIH under this section.
SBIR grants and contracts
In general
In awarding grants and contracts under the SBIR program of the NIH each SBIR program manager shall place an emphasis on applications that identify products and services that may enhance the development of cures and therapies.
Examination of commercialization and other metrics
The advisory board shall evaluate the implementation of the requirement under paragraph (1) by examining increased commercialization and other metrics, to be determined and collected by the SBIR program of the NIH.
Phase I and II
To the greatest extent practicable, the Director of the SBIR program of the NIH shall reduce the time period between Phase I and Phase II funding of grants and contracts under the SBIR program of the NIH to 6 months.
Limit
Not more than a total of 1 percent of the extramural budget (as defined in section 9 of the Small Business Act (15 U.S.C. 638)) of the NIH for research or research and development may be used for the pilot program under subsection (c) and to carry out subsection (e).
Sunset
This section shall cease to be effective on the date that is 5 years after the date of enactment of the SBIR/STTR Reauthorization Act of 2009.
.
Oversight and evaluation
Streamlining annual evaluation requirements
Section 9(b) of the Small Business Act (15 U.S.C. 638(b)), as amended by section 102 of this Act, is amended—
in paragraph (7)—
by striking
STTR programs, including the data
and inserting the following:
“STTR programs, including—
the data
;
by striking
(g)(10), (o)(9), and (o)(15), the number
and all that follows
through under each of the SBIR and STTR programs, and a
description
and inserting the following: “(g)(8) and (o)(9); and
the number of proposals received from, and the number and total amount of awards to, HUBZone small business concerns and firms with venture capital investment (including those majority owned and controlled by multiple venture capital firms) under each of the SBIR and STTR programs;
a description of the extent to which each Federal agency is increasing outreach and awards to firms owned and controlled by women and minorities under each of the SBIR and STTR programs;
general information about the implementation and compliance with the allocation of funds required under subsection (cc) for firms majority owned and controlled by multiple venture capital firms under each of the SBIR and STTR programs;
a detailed description of appeals of Phase III awards and notices of noncompliance with the SBIR and the STTR Policy Directives filed by the Administrator with Federal agencies; and
a description
; and
by inserting after paragraph (7) the following:
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;
.
Data collection from agencies for SBIR
Section 9(g) of the Small Business Act (15 U.S.C. 638(g)) is amended—
by striking paragraph (10);
by redesignating paragraphs (8) and (9) as paragraphs (9) and (10), respectively;
by inserting after paragraph (7) the following:
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—
whether an awardee—
has venture capital or is majority owned and controlled by multiple venture capital firms, and, if so—
the amount of venture capital that the awardee has received as of the date of the award; and
the amount of additional capital that the awardee has invested in the SBIR technology;
has an investor that—
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
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;
is owned by a woman or has a woman as a principal investigator;
is owned by a socially or economically disadvantaged individual or has a socially or economically disadvantaged individual as a principal investigator;
received assistance under the FAST program under section 34 or the outreach program under subsection (s); or
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); and
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
in paragraph
(10), as so redesignated, by adding and
at the end.
Data collection from agencies for STTR
Section 9(o) of the Small Business Act (15 U.S.C. 638(o)) is amended—
by striking paragraph (9) and inserting the following:
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—
whether an applicant or awardee—
has venture capital or is majority owned and controlled by multiple venture capital firms, and, if so—
the amount of venture capital that the applicant or awardee has received as of the date of the application or award, as applicable; and
the amount of additional capital that the applicant or awardee has invested in the SBIR technology;
has an investor that—
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
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;
is owned by a woman or has a woman as a principal investigator;
is owned by a socially or economically disadvantaged individual or has a socially or economically disadvantaged individual as a principal investigator;
received assistance under the FAST program under section 34 or the outreach program under subsection (s); or
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); and
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;
;
in paragraph
(14), by adding and
at the end;
by striking paragraph (15); and
by redesignating paragraph (16) as paragraph (15).
Public database
Section 9(k)(1) of the Small Business Act (15 U.S.C. 638(k)(1)) is amended—
in subparagraph
(D), by striking and
at the end;
in subparagraph
(E), by striking the period at the end and inserting ; and
;
and
by adding at the end the following:
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—
has venture capital and, if so, whether the small business concern is registered as majority owned and controlled by multiple venture capital companies as required under subsection (cc)(3);
is owned by a woman or has a woman as a principal investigator;
is owned by a socially or economically disadvantaged individual or has a socially or economically disadvantaged individual as a principal investigator;
received assistance under the FAST program under section 34 or the outreach program under subsection (s); or
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).
.
Government database
Section 9(k)(2) of the Small Business Act (15 U.S.C. 638(k)(2)) is amended—
by redesignating subparagraphs (C), (D), and (E) as subparagraphs (D), (E), and (F), respectively;
by inserting after subparagraph (B) the following:
includes, for each awardee—
the name, size, location, and any identifying number assigned to the awardee by the Administrator;
whether the awardee has venture capital, and, if so—
the amount of venture capital as of the date of the award;
the percentage of ownership of the awardee held by a venture capital firm, including whether the awardee is majority owned and controlled by multiple venture capital firms; and
the amount of additional capital that the awardee has invested in the SBIR technology, which information shall be collected on an annual basis;
the names and locations of any affiliates of the awardee;
the number of employees of the awardee;
the number of employees of the affiliates of the awardee; and
the names of, and the percentage of ownership of the awardee held by—
any individual who is not a citizen of the United States or a lawful permanent resident of the United States; or
any person that is not an individual and is not organized under the laws of a State or the United States;
; and
in subparagraph (D), as so redesignated—
in clause (ii),
by striking and
at the end; and
by adding at the end, the following:
whether the applicant was majority owned and controlled by multiple venture capital firms; and
the number of employees of the applicant;
.
Accuracy in funding base calculations
In general
Not later than 1 year after the date of enactment of this Act, and every 3 years thereafter, the Comptroller General of the United States shall—
conduct a fiscal and management audit of the SBIR program and the STTR program for the applicable period to—
determine whether Federal agencies comply with the expenditure amount requirements under subsections (f)(1) and (n)(1) of section 9 of the Small Business Act (15 U.S.C. 638), as amended by this Act;
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;
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
determine the portion of the extramural research or research and development budget of a Federal agency that each Federal agency spends for administrative purposes relating to the SBIR program or STTR program, and for what specific purposes, including the portion, if any, of such budget the Federal agency spends for salaries and expenses, travel to visit applicants, outreach events, marketing, and technical assistance; and
submit a report to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives regarding the audit conducted under paragraph (1), including the assessments required under subparagraphs (B) and (C), and the determination made under subparagraph (D) of paragraph (1).
Definition of applicable period
In this section, the term applicable period means—
for the first report submitted under this section, the period beginning on October 1, 2000, and ending on September 30 of the last full fiscal year before the date of enactment of this Act for which information is available; and
for the second and each subsequent report submitted under this section, the period—
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
ending on September 30 of the last full fiscal year before the date of the report.
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:
Extensions and enhancements of authority
In general
Not later than 6 months after the date of enactment of the SBIR/STTR Reauthorization Act of 2009, 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 conduct a study described in subsection (a)(1) and make recommendations described in subsection (a)(2) not later than 4 years after the date of enactment of the SBIR/STTR Reauthorization Act of 2009, and every 4 years thereafter.
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 2009, and every 4 years thereafter, the National Research Council shall submit to the head of the agency entering into the agreement, the Committee on Small Business and Entrepreneurship of the Senate, and the Committee on Small Business of the House of Representatives a report regarding the study conducted under paragraph (1) and containing the recommendations described in paragraph (1).
.
Technology insertion reporting requirements
Section 9 of the Small Business Act (15 U.S.C. 638), as amended by this Act, is amended by adding at the end the following:
Phase III reporting
The annual SBIR or STTR report to Congress by the Administration under subsection (b)(7) shall include, for each Phase III award made by the Federal agency—
the name of the agency or component of the agency or the non-Federal source of capital making the Phase III award;
the name of the small business concern or individual receiving the Phase III award; and
the dollar amount of the Phase III award.
.
Intellectual property protections
In general
The Comptroller General of the United States shall conduct a study of the SBIR program to assess whether—
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);
the laws and policy directives intended to clarify the scope of data rights, including in prototypes and mentor-protégé relationships and agreements with Federal laboratories, are sufficient to protect SBIR awardees; and
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.
Report
Not later than 18 months after the date of enactment of this Act, the Comptroller General shall submit to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives a report regarding the study conducted under subsection (a).
Policy directives
Conforming amendments to the SBIR and the STTR Policy Directives
In general
Not later than 180 days after the date of enactment of this Act, the Administrator shall promulgate amendments to the SBIR Policy Directive and the STTR Policy Directive to conform such directives to this Act and the amendments made by this Act.
Publishing SBIR Policy Directive and the STTR Policy Directive in the Federal Register
Not later than 180 days after the date of enactment of this Act, the Administrator shall publish the amended SBIR Policy Directive and the amended STTR Policy Directive in the Federal Register.
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