[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3774 Introduced in House (IH)]
<DOC>
116th CONGRESS
1st Session
H. R. 3774
To amend the Small Business Act to improve the Small Business
Innovation Research program and Small Business Technology Transfer
program, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 16, 2019
Mr. Baird (for himself, Ms. Stevens, Mr. Burchett, and Mr. Crow)
introduced the following bill; which was referred to the Committee on
Small Business, and in addition to the Committee on Science, Space, and
Technology, for a period to be subsequently determined by the Speaker,
in each case for consideration of such provisions as fall within the
jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To amend the Small Business Act to improve the Small Business
Innovation Research program and Small Business Technology Transfer
program, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``The Small Business
Innovation Research and Small Business Technology Transfer Improvements
Act of 2019''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Requiring insertion incentives.
Sec. 3. Additional SBIR and STTR technology insertion reporting
requirement.
Sec. 4. Encouraging innovation in United States manufacturing.
Sec. 5. Encouraging innovation in cybersecurity.
Sec. 6. Compliance of Phase III awards with competitive procedures.
Sec. 7. Procurement center representatives and other acquisition
personnel in the SBIR and STTR programs.
Sec. 8. Increased outreach requirements.
Sec. 9. Annual meeting.
Sec. 10. Establishing the Civilian Agency Commercialization Readiness
Program.
Sec. 11. Commercialization assistance pilot programs.
Sec. 12. Phase 0 Proof of Concept Partnership Pilot Program.
Sec. 13. Reporting requirements.
Sec. 14. SBIR Phase flexibility.
SEC. 2. REQUIRING INSERTION INCENTIVES.
Section 9(y)(5) of the Small Business Act (15 U.S.C. 638(y)(5)) is
amended by striking ``is authorized to'' and inserting ``shall''.
SEC. 3. ADDITIONAL SBIR AND STTR TECHNOLOGY INSERTION REPORTING
REQUIREMENT.
Section 9(y)(6) of the Small Business Act (15 U.S.C. 638(y)(6)) is
amended--
(1) in subparagraph (B), by striking ``and'' at the end;
(2) in subparagraph (C)(iii), by striking the period at the
end and inserting ``; and''; and
(3) by adding at the end the following new subparagraph:
``(D) not later than 120 days after the date of the
enactment of this subparagraph, and not later than
December 31 of each year thereafter, submit to the
Committee on Science, Space, and Technology and the
Committee on Small Business of the House of
Representatives, and to the Committee on Small Business
and Entrepreneurship of the Senate, a report describing
the goals set under subparagraph (A) and the incentives
used or created under subparagraph (B).''.
SEC. 4. ENCOURAGING INNOVATION IN UNITED STATES MANUFACTURING.
Section 9 of the Small Business Act (15 U.S.C. 638) is amended by
adding at the end the following new subsection:
``(uu) Encouraging Innovation in United States Manufacturing.--In
carrying out this section, the Administrator shall--
``(1) ensure that, in selecting small business concerns to
participate in SBIR or STTR programs under this section,
Federal agencies give high priority to small manufacturing
companies and other small business concerns engaged in or
planning to engage in manufacturing research and development
for the purpose of developing and producing new products and
technologies in the United States; and
``(2) include in the annual report to Congress under
subsection (b)(7) a determination of whether the priority
described in paragraph (1) is being carried out.''.
SEC. 5. ENCOURAGING INNOVATION IN CYBERSECURITY.
Section 9 of the Small Business Act (15 U.S.C. 638), as amended by
section 4, is further amended by adding at the end the following new
subsection:
``(vv) Encouraging Innovation in Cybersecurity.--In carrying out
this section, the Administrator shall--
``(1) ensure that, in selecting small business concerns to
participate in SBIR or STTR programs under this section,
Federal agencies engaged in cybersecurity research give high
priority to small business concerns that are engaged in
cybersecurity research and development, for the purpose of
developing and implementing technology services and products to
strengthen the security of United States Government and private
computer systems, including software, hardware, and portable
devices; and
``(2) include in the annual report to Congress under
subsection (b)(7) a determination of whether the priority
described in paragraph (1) is being carried out.''.
SEC. 6. COMPLIANCE OF PHASE III AWARDS WITH COMPETITIVE PROCEDURES.
Section 9(r)(4) of the Small Business Act (15 U.S.C. 638(r)(4)) is
amended by inserting ``as direct follow-on awards issued without
further competition'' after ``developed the technology''.
SEC. 7. PROCUREMENT CENTER REPRESENTATIVES AND OTHER ACQUISITION
PERSONNEL IN THE SBIR AND STTR PROGRAMS.
(a) Definition of Senior Procurement Executive.--Section 9(e) of
the Small Business Act (15 U.S.C. 638(e)) is amended--
(1) in paragraph (12)(B), by striking ``and'' at the end;
(2) in paragraph (13)(B), by striking the period at the end
and inserting ``; and''; and
(3) by adding at the end the following new paragraph:
``(14) the term `senior procurement executive' means an
official designated under section 1702(c) of title 41, United
States Code, as the senior procurement executive of a Federal
agency participating in a SBIR or STTR program.''.
(b) Inclusion of Senior Procurement Executives in SBIR and STTR.--
(1) In general.--Section 9(b) of the Small Business Act (15
U.S.C. 638(b)) is amended--
(A) in paragraph (8), by striking ``and'' at the
end;
(B) in paragraph (9), by striking the period at the
end and inserting ``; and''; and
(C) by adding at the end the following new
paragraph:
``(10) to coordinate, where appropriate, with the senior
procurement executive of the relevant Federal agency to assist
small business concerns participating in a SBIR or STTR program
with commercializing research developed under such a program
before such small business concern is awarded a contract from
such Federal agency.''.
(2) Technical amendment.--Section 9(b)(3) of the Small
Business Act (15 U.S.C. 638(b)(3)) is amended by striking
``and'' at the end.
(c) Modifications Relating to Procurement Center Representatives
and Other Acquisition Personnel.--
(1) SBIR amendment.--Section 9(j) of the Small Business Act
(15 U.S.C. 638(j)) is amended by adding at the end the
following new paragraph:
``(4) Modifications relating to procurement center
representatives.--Upon the enactment of this paragraph, the
Administrator shall modify the policy directives issued
pursuant to this subsection to require procurement center
representatives (as described in section 15(l)) to coordinate
with the appropriate contracting officer or SBIR program
officer, and the appropriate Director of Small and
Disadvantaged Business Utilization established pursuant to
section 15(k) for the agency letting the contract, to assist
small business concerns participating in the SBIR program,
particularly in Phase III. The procurement center
representatives shall coordinate with the appropriate
contracting officer and the appropriate Director of the Office
of Small and Disadvantaged Business Utilization established
pursuant to section 15(k) for the agency letting the
contract.''.
(2) STTR amendment.--Section 9(p)(2) of the Small Business
Act (15 U.S.C. 638(p)(2)) is amended--
(A) in subparagraph (E)(ii), by striking ``and'' at
the end;
(B) in subparagraph (F), by striking the period at
the end and inserting a semicolon; and
(C) by adding at the end the following new
subparagraph:
``(G) procedures to ensure that procurement center
representatives (as described in section 15(l))--
``(i) coordinate with the appropriate
contracting officer or STTR program officer,
and the appropriate Director of Small and
Disadvantaged Business Utilization established
pursuant to section 15(k) for the agency
letting the contract, to assist small business
concerns participating in the STTR program,
particularly in Phase III; and
``(ii) coordinate with the appropriate
contracting officer and the appropriate
Director of the Office of Small and
Disadvantaged Business Utilization established
pursuant to section 15(k) for the Federal
agency letting the contract in providing the
assistance described in clause (i); and''.
(d) Amendment to Duties of Procurement Center Representatives.--
Section 15(l)(2) of the Small Business Act (15 U.S.C. 644(l)(2)) is
amended--
(1) in subparagraph (I), by striking ``and'' at the end;
(2) by redesignating subparagraph (J) as subparagraph (L);
and
(3) by inserting after subparagraph (I) the following new
subparagraphs:
``(J) coordinate with the appropriate contracting
officer or SBIR or STTR program officer, and the
appropriate Director of Small and Disadvantaged
Business Utilization established pursuant to section
15(k) for the agency letting the contract, to assist
small business concerns participating in a SBIR or STTR
program under section 9 with Phase III;
``(K) coordinate with the appropriate contracting
officer and the appropriate Director of the Office of
Small and Disadvantaged Business Utilization
established pursuant to subsection (k) for the agency
letting the contract; and''.
(e) Amendment to the Duties of the Director of Small and
Disadvantaged Business Utilization for Federal Agencies.--Section 15(k)
of the Small Business Act (15 U.S.C. 644(k)) is amended--
(1) in paragraph (19), by striking ``and'' at the end;
(2) in paragraph (20), by striking the period at the end
and inserting a semicolon; and
(3) by adding at the end the following new paragraphs:
``(21) shall coordinate with the appropriate contracting
officer of SBIR or STTR program officer to assist small
business concerns participating in a SBIR or STTR program under
section 9 with researching applicable solicitations for the
award of a Federal contract (particularly with the Federal
agency that has a funding agreement (as defined under section
9) with the concern) to market the research developed by such
concern under such SBIR or STTR program; and
``(22) shall provide technical assistance to small business
concerns participating in a SBIR or STTR program under section
9 to submit a bid for an award of a Federal contract, including
coordination with procurement center representatives and the
appropriate senior procurement executive for the agency letting
the contract.''.
SEC. 8. INCREASED OUTREACH REQUIREMENTS.
(a) In General.--
(1) SBIR amendment.--Section 9(j) of the Small Business Act
(15 U.S.C. 638(j)), as amended by section 8, is further amended
by adding at the end the following new paragraph:
``(5) Increased outreach requirements.--Upon the enactment
of this paragraph, the Administrator shall modify the policy
directives issued pursuant to this subsection to require
outreach efforts to increase the participation in technological
innovation under the SBIR programs among individuals conducting
research at minority institutions (as defined in section 365(3)
of the Higher Education Act of 1965) and Hispanic-serving
institutions (as defined in section 502(a)(5) of such Act).''.
(2) STTR amendment.--Section 9(p)(2) of the Small Business
Act (15 U.S.C. 638(p)(2)), as amended by section 8, is further
amended by adding at the end the following new subparagraph:
``(H) procedures for outreach efforts to increase
the participation in technological innovation under the
SBIR programs among individuals conducting research at
minority institutions (as defined in section 365(3) of
the Higher Education Act of 1965) and Hispanic-serving
institutions (as defined in section 502(a)(5) of such
Act).''.
(b) Funding for Outreach.--Section 9(mm)(1) of the Small Business
Act (15 U.S.C. 638(mm)(1)) is amended--
(1) in subparagraph (I), by striking the ``and'' at the
end;
(2) in subparagraph (J), by striking the period at the end
and inserting a semicolon; and
(3) by adding at the end the following new subparagraph:
``(K) the outreach efforts described under
subsections (j)(4) and (p)(2)(G); and''.
SEC. 9. ANNUAL MEETING.
(a) In General.--Section 9 of the Small Business Act (15 U.S.C.
638), as amended by section 5, is further amended by adding at the end
the following new subsection:
``(ww) Annual Meeting.--
``(1) In general.--The head of each Federal agency required
to have a program under this section (or a designee) and the
Administrator (or a designee) shall meet annually to discuss
methods--
``(A) to improve the collection of data under this
section;
``(B) to improve the reporting of data to the
Administrator under this section;
``(C) to make the application processes for
programs under this section more efficient; and
``(D) to increase participation in the programs
established under this section.
``(2) Report.--Not later than 60 days after the date on
which an annual meeting required under paragraph (1) is held,
the Administrator shall submit to the Committee on Small
Business and Entrepreneurship of the Senate and the Committee
on Small Business and the Committee on Science, Space, and
Technology of the House of Representatives, a report on the
findings of such meeting and recommendations on how to
implement changes to programs under this section.''.
(b) Funding for Annual Meeting.--Section 9(mm)(1) of the Small
Business Act (15 U.S.C. 638(mm)(1)) as amended by section 9, is further
amended by adding at the end the following new subparagraph:
``(L) the annual meeting required under subsection
(vv).''.
SEC. 10. ESTABLISHING THE CIVILIAN AGENCY COMMERCIALIZATION READINESS
PROGRAM.
Section 9(gg) of the Small Business Act (15 U.S.C. 638(gg)) is
amended--
(1) by amending the subsection heading to read as follows:
``Civilian Agency Commercialization Readiness Program'';
(2) in paragraph (1), by inserting ``to establish a
Civilian Agency Commercialization Readiness Program for
civilian agencies'' after ``the covered Federal agency'';
(3) in paragraph (2)(A)--
(A) by striking ``establish a pilot program'' and
inserting ``establish a Civilian Agency
Commercialization Readiness Program under this
subsection''; and
(B) by striking ``the pilot program'' and inserting
``such Civilian Agency Commercialization Readiness
Program'';
(4) in paragraphs (3) and (4), by striking ``a pilot
program'' each place such term appears and inserting ``a
Civilian Commercialization Readiness Program'';
(5) in paragraph (6), by striking ``the pilot program'' and
inserting ``a Civilian Agency Commercialization Readiness
Program'';
(6) by striking paragraph (7) and redesignating paragraph
(8) as paragraph (7); and
(7) in paragraph (7) (as so redesignated), by amending
subparagraph (B) to read as follows:
``(B) the term `Civilian Agency Commercialization
Readiness Program' means each program established under
paragraph (1).''.
SEC. 11. COMMERCIALIZATION ASSISTANCE PILOT PROGRAMS.
Section 9 of the Small Business Act (15 U.S.C. 638), as amended by
section 10, is further amended by adding at the end the following new
subsection:
``(xx) Commercialization Assistance Pilot Programs.--
``(1) Pilot programs implemented.--
``(A) In general.--Except as provided in
subparagraph (B), not later than one year after the
date of the enactment of this subsection, a covered
agency shall implement a commercialization assistance
pilot program, under which an eligible entity may
receive a subsequent Phase II SBIR award.
``(B) Exception.--If the Administrator determines
that a covered agency has a program that is
sufficiently similar to the commercialization
assistance pilot program established under this
subsection, such covered agency shall not be required
to implement a commercialization assistance pilot
program under this subsection.
``(2) Percent of agency funds.--The head of each covered
agency may allocate not more than 5 percent of the funds
allocated to the SBIR program of the covered agency for the
purpose of making a subsequent Phase II SBIR award under the
commercialization assistance pilot program.
``(3) Termination.--A commercialization assistance pilot
program established under this subsection shall terminate on
September 30, 2024.
``(4) Application.--To be selected to receive a subsequent
Phase II SBIR award under a commercialization assistance pilot
program, an eligible entity shall submit to the covered agency
implementing such pilot program an application at such time, in
such manner, and containing such information as the covered
agency may require, including--
``(A) an updated Phase II commercialization plan;
and
``(B) the source and amount of the matching funding
required under paragraph (5).
``(5) Matching funding.--
``(A) In general.--The Administrator shall require,
as a condition of any subsequent Phase II SBIR award
made to an eligible entity under this subsection, that
a matching amount (excluding any fees collected by the
eligible entity receiving such award) equal to the
amount of such award be provided from an eligible
third-party investor.
``(B) Ineligible sources.--An eligible entity may
not use funding from ineligible sources to meet the
matching requirement of subparagraph (A).
``(6) Award.--A subsequent Phase II SBIR award made to an
eligible entity under this subsection--
``(A) may not exceed the limitation described under
subsection (aa)(1); and
``(B) shall be disbursed during Phase II.
``(7) Use of funds.--The funds awarded to an eligible
entity under this subsection may only be used for research and
development activities that build on eligible entity's Phase II
program and ensure the research funded under such Phase II is
rapidly progressing towards commercialization.
``(8) Selection.--In selecting eligible entities to
participate in a commercialization assistance pilot program
under this subsection, the head of a covered agency shall
consider--
``(A) the extent to which such award could aid the
eligible entity in commercializing the research funded
under the eligible entity's Phase II program;
``(B) whether the updated Phase II
commercialization plan submitted under paragraph (4)
provides a sound approach for establishing technical
feasibility that could lead to commercialization of
such research;
``(C) whether the proposed activities to be
conducted under such updated Phase II commercialization
plan further improve the likelihood that such research
will provide societal benefits;
``(D) whether the small business concern has
progressed satisfactorily in Phase II to justify
receipt of a subsequent Phase II SBIR award;
``(E) the expectations of the eligible third-party
investor that provides matching funding under paragraph
(5); and
``(F) the likelihood that the proposed activities
to be conducted under such updated Phase II
commercialization plan using matching funding provided
by such eligible third-party investor will lead to
commercial and societal benefit.
``(9) Evaluation report.--Not later than 3 years after the
date of the enactment of this subsection, the Comptroller
General of the United States shall submit to the Committee on
Science, Space, and Technology and the Committee on Small
Business of the House of Representatives, and the Committee on
Small Business and Entrepreneurship of the Senate, a report
including--
``(A) a summary of the activities of
commercialization assistance pilot programs carried out
under this subsection;
``(B) a detailed compilation of results achieved by
such commercialization assistance pilot programs,
including the number of eligible entities that received
awards under such programs;
``(C) the rate at which each eligible entity that
received a subsequent Phase II SBIR award under this
subsection commercialized research of the recipient;
``(D) the growth in employment and revenue of
eligible entities that is attributable to participation
in a commercialization assistance pilot program;
``(E) a comparison of commercialization success of
eligible entities participating in a commercialization
assistance pilot program with recipients of an
additional Phase II SBIR award under subsection (ff);
``(F) demographic information, such as ethnicity
and geographic location, of eligible entities
participating in a commercialization assistance pilot
program;
``(G) an accounting of the funds used at each
covered agency that implements a commercialization
assistance pilot program under this subsection;
``(H) the amount of matching funding provided by
eligible third-party investors, set forth separately by
source of funding;
``(I) an analysis of the effectiveness of the
commercialization assistance pilot program implemented
by each covered agency; and
``(J) recommendations for improvements to the
commercialization assistance pilot program.
``(10) Definitions.--For purposes of this subsection:
``(A) Covered agency.--The term `covered agency'
means a Federal agency required to have an SBIR
program.
``(B) Eligible entity.--The term `eligible entity'
means a small business concern that has received a
Phase II award under an SBIR program and an additional
Phase II SBIR award under subsection (ff) from the
covered agency to which such small business concern is
applying for a subsequent Phase II SBIR award.
``(C) Eligible third-party investor.--The term
`eligible third-party investor' means a small business
concern other than an eligible entity, a venture
capital firm, an individual investor, a non-SBIR
Federal, State or local government, or any combination
thereof.
``(D) Ineligible sources.--The term `ineligible
sources' means the following:
``(i) The eligible entity's internal
research and development funds.
``(ii) Funding in forms other than cash,
such as in-kind or other intangible assets.
``(iii) Funding from the owners of the
eligible entity, or the family members or
affiliates of such owners.
``(iv) Funding attained through loans or
other forms of debt obligations.
``(E) Subsequent phase ii sbir award.--The term
`subsequent Phase II SBIR award' means an award granted
to an eligible entity under this subsection to carry
out further commercialization activities for research
conducted pursuant to an SBIR program.''.
SEC. 12. PHASE 0 PROOF OF CONCEPT PARTNERSHIP PILOT PROGRAM.
Section 9(jj) of the Small Business Act (15 U.S.C. 638(jj) is
amended--
(1) in paragraph (1)--
(A) by striking ``The Director of the National
Institutes of Health'' and inserting ``Each covered
agency head''; and
(B) by striking ``the Director'' and inserting
``each covered agency head'';
(2) by amending subparagraph (A) of paragraph (2) to read
as follows:
``(A) the term `covered agency head' means the
Director of the National Institutes of Health, the
Director of the National Science Foundation, the
Administrator of the National Aeronautics and Space
Administration and the Secretary of Energy;'';
(3) in paragraph (4)--
(A) in subparagraph (A), by striking ``The
Director'' and inserting ``Each covered agency head'';
and
(B) in subparagraph (B), by striking ``the Director
shall consider, in addition to any other criteria the
Director'' and inserting ``each covered agency head
shall consider, in addition to any other criteria the
appropriate covered agency head''; and
(4) in paragraph (6), by striking ``The Director'' and
inserting ``Each covered agency head''.
SEC. 13. REPORTING REQUIREMENTS.
(a) Annual Report to Congress.--Section 9(b)(7) of the Small
Business Act (15 U.S.C. 638(b)(7)) is amended by striking ``to report
not less than annually'' and inserting ``to submit a report not later
than December 31 of each year''.
(b) Annual Report to SBA and the Office of Science and Technology
Policy.--Section 9(g)(9) of the Small Business Act (15 U.S.C.
638(g)(9)) is amended--
(1) by striking ``make an annual report'' and inserting
``not later than March 30 of each year, submit a report''; and
(2) by striking ``and the Office of Science and Technology
Policy'' and inserting ``, the Office of Science and Technology
Policy, the Committee on Science, Space, and Technology and the
Committee on Small Business of the House of Representatives,
and the Committee on Small Business and Entrepreneurship of the
Senate''.
SEC. 14. SBIR PHASE FLEXIBILITY.
Section 9(cc) of the Small Business Act (15 U.S.C. 638(cc)) is
amended by striking ``During fiscal years'' and all that follows
through ``may each provide'' and inserting ``During fiscal years 2020
through 2024, all agencies participating in the SBIR program may
provide''.
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