[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 1573 Introduced in Senate (IS)]
<DOC>
119th CONGRESS
1st Session
S. 1573
To amend the Small Business Act to reauthorize and modify the Small
Business Innovation Research and Small Business Technology Transfer
Research programs, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
May 1, 2025
Mr. Markey introduced the following bill; which was read twice and
referred to the Committee on Small Business and Entrepreneurship
_______________________________________________________________________
A BILL
To amend the Small Business Act to reauthorize and modify the Small
Business Innovation Research and Small Business Technology Transfer
Research programs, 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.
This Act may be cited as the ``SBIR/STTR Reauthorization Act of
2025''.
SEC. 2. TABLE OF CONTENTS.
The table of contents for this Act is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.
TITLE I--REAUTHORIZATION OF PROGRAMS
Sec. 101. Extension of SBIR and STTR authority.
Sec. 102. Extension of FAST Program.
TITLE II--ENHANCING COMPETITION
Sec. 201. Increasing agency expenditures for SBIR and STTR programs.
Sec. 202. SBIR and STTR fellowships.
Sec. 203. Application assistance to broaden participation.
Sec. 204. Technical and business assistance improvements.
Sec. 205. Improvements to website relating to the SBIR program and STTR
program.
TITLE III--COMMERCIALIZATION IMPROVEMENTS
Sec. 301. Phase III award education.
Sec. 302. Report on certain denials of Phase III.
Sec. 303. Technology Commercialization Official.
Sec. 304. Phase III improvements.
TITLE IV--PILOT PROGRAMS
Sec. 401. Extend and modify assistance for administrative, oversight,
and contract processing costs.
Sec. 402. Extend and expand the direct to Phase II authority.
Sec. 403. Extend commercialization readiness program for civilian
agencies.
Sec. 404. Extension of certain SBIR and STTR pilot programs.
Sec. 405. Extension of due diligence program to assess security risks.
TITLE V--OVERSIGHT AND SIMPLIFICATION INITIATIVES
Sec. 501. Annual reports to Congress.
Sec. 502. Comptroller general report on diversification and
commercialization.
Sec. 503. Extend the report on award timeliness.
Sec. 504. Pilot program to accelerate National Institutes of Health
valuation process.
Sec. 505. Codifying safeguards for small business concerns majority-
owned by venture capital operating
companies, hedge funds, or private equity
firms.
Sec. 506. Commercialization impact assessment.
TITLE VI--TECHNICAL CHANGES
Sec. 601. Inclusion of SBICs in the SBIR and STTR programs.
Sec. 602. Phase III and sole-source awards.
TITLE I--REAUTHORIZATION OF PROGRAMS
SEC. 101. EXTENSION OF SBIR AND STTR AUTHORITY.
(a) SBIR.--Section 9 of the Small Business Act (15 U.S.C. 638) is
amended by striking subsection (m).
(b) STTR.--Section 9(n)(1)(A) of the Small Business Act (15 U.S.C.
638(n)(1)(A)) is amended by striking ``through fiscal year 2025''.
SEC. 102. EXTENSION OF FAST PROGRAM.
Section 34(i) of the Small Business Act (15 U.S.C. 657d(i)) is
amended by striking ``September 30, 2005'' and inserting ``September
30, 2030''.
TITLE II--ENHANCING COMPETITION
SEC. 201. INCREASING AGENCY EXPENDITURES FOR SBIR AND STTR PROGRAMS.
Section 9 of the Small Business Act (15 U.S.C. 638) is amended--
(1) in subsection (f)(1)--
(A) in subparagraph (H), by striking ``and'';
(B) in subparagraph (I), by striking ``fiscal year
2017 and each fiscal year thereafter,'' and inserting
``each of fiscal years 2017 through 2025;''; and
(C) by inserting after subparagraph (I) the
following:
``(J) not less than 4 percent of such budget in
fiscal years 2026 and 2027;
``(K) not less than 5 percent of such budget in
fiscal years 2028 and 2029;
``(L) not less than 6 percent of such budget in
fiscal years 2030 and 2031; and
``(M) not less than 7 percent of such budget in
fiscal year 2032 and each fiscal year thereafter,'';
and
(2) in subsection (n)(1)--
(A) in subparagraph (A), by striking ``through
fiscal year 2025''; and
(B) in subparagraph (B)--
(i) in clause (iv), by striking ``; and''
and inserting a semicolon;
(ii) in clause (v), by striking ``fiscal
year 2016 and each fiscal year thereafter.''
and inserting ``each of fiscal years 2016
through 2025;''; and
(iii) by adding at the end the following:
``(vi) 0.5 percent for fiscal year 2026 and
2027;
``(vii) 0.65 percent for fiscal year 2028
and 2029;
``(viii) 0.8 percent for fiscal year 2030
and 2031; and
``(ix) 1 percent for fiscal year 2032 and
each fiscal year thereafter.''.
SEC. 202. SBIR AND STTR FELLOWSHIPS.
Section 9 of the Small Business Act (15 U.S.C. 638) is amended--
(1) in subsection (f), by adding at the end the following:
``(5) Fellowships.--
``(A) In general.--A Federal agency may provide
grants or awards, either directly or in partnership
with a third party, to small business concerns that
have received SBIR or STTR Phase II awards to provide
fellowship and internship opportunities at the
undergraduate, baccalaureate, graduate, and
postdoctoral levels in fields that are important to the
Federal agency.
``(B) Enhanced outreach.--Each Federal agency that
makes an award or enters into a partnership under
subparagraph (A) shall provide for enhanced outreach to
increase the participation of women, socially
disadvantaged individuals (as described in section
8(a)(5)), and economically disadvantaged individuals
(as described in section 8(a)(6)(A)) in the fellowship
and internship opportunities described in subparagraph
(A).
``(C) Support organization.--Each Federal agency
that makes an award or enters into a partnership under
subparagraph (A) may partner with or provide grants or
awards to a third-party organization to support and
facilitate the enhanced outreach under subparagraph
(B), provided that the third-party organization is a
nonprofit organization with relevant experience and
demonstrated expertise in delivery of services
described in subparagraph (B).
``(D) Funding.--In carrying out this paragraph, a
Federal agency may use only the following amounts:
``(i) With respect to a Federal agency that
uses the authority under subsection (mm), the
funds authorized under such subsection.
``(ii) With respect a Federal agency other
than a Federal agency described in clause (i),
not more than 3 percent of the funds required
to be expended under paragraph (1).''; and
(2) in subsection (n), by adding at the end the following:
``(4) Fellowships.--
``(A) In general.--A Federal agency may provide
grants or awards, either directly or in partnership
with a third party, to small business concerns that
have received SBIR or STTR Phase II awards to provide
fellowship and internship opportunities at the
undergraduate, baccalaureate, graduate, and
postdoctoral levels in fields that are important to the
Federal agency.
``(B) Enhanced outreach.--Each Federal agency that
makes an award or enters into a partnership under
subparagraph (A) shall provide for enhanced outreach to
increase the participation of women, socially
disadvantaged individuals (as described in section
8(a)(5)), and economically disadvantaged individuals
(as described in section 8(a)(6)(A)) in the fellowship
and internship opportunities described in subparagraph
(A).
``(C) Support organization.--Each Federal agency
that makes an award or enters into a partnership under
subparagraph (A) may partner with or provide grants or
awards to a third-party organization to support and
facilitate the enhanced outreach under subparagraph
(B), provided that the third-party organization is a
nonprofit organization with relevant experience and
demonstrated expertise in delivery of services
described in subparagraph (B).
``(D) Funding.--In carrying out this paragraph, a
Federal agency may use only the following amounts:
``(i) With respect to a Federal agency that
uses the authority under subsection (mm), the
funds authorized under such subsection.
``(ii) With respect a Federal agency other
than a Federal agency described in clause (i),
not more than 3 percent of the funds required
to be expended under paragraph (1).''.
SEC. 203. APPLICATION ASSISTANCE TO BROADEN PARTICIPATION.
(a) In General.--Section 9(mm)(1) of the Small Business Act (15
U.S.C. 638(mm)(1)) is amended--
(1) in subparagraph (J), by striking ``and'' at the end;
(2) in subparagraph (K), by striking the period at the end
and inserting ``; and''; and
(3) by adding at the end the following:
``(L) providing small business concerns with
assistance applying to the SBIR program or STTR program
of the Federal agency, including providing such
assistance to carry out the policy directives required
under paragraphs (2)(F) and (5) of subsection (j) and
subsection (p)(2)(H) to increase the participation of
States with respect to which a low level of SBIR or
STTR awards have historically been awarded.''.
(b) Enhanced Minority Institution Participation.--
(1) SBIR.--Section 9(j) of the Small Business Act (15
U.S.C. 638(j)), is amended by adding at the end the following:
``(5) Increased outreach requirements.--Not later than 90
days after the date of enactment of this paragraph, the
Administration shall modify the policy directives issued
pursuant to this subsection to require enhanced outreach
efforts to increase the participation of individuals conducting
research at minority institutions (as defined in section 365 of
the Higher Education Act of 1965 (20 U.S.C. 1067k)) and
Hispanic-serving institutions (as defined in section 502(a) of
such Act (20 U.S.C. 1101a(a))) in SBIR programs.''.
(2) STTR.--Section 9(p)(2) of the Small Business Act (15
U.S.C. 638(p)(2)) is amended--
(A) in subparagraph (F), by striking ``and'' at the
end;
(B) in subparagraph (G)(iii), by striking the
period at the end and inserting ``; and''; and
(C) by adding at the end the following:
``(H) procedures for outreach efforts to increase
the participation of individuals conducting research at
minority institutions (as defined in section 365 of the
Higher Education Act of 1965 (20 U.S.C. 1067k)) and
Hispanic-serving institutions (as defined in section 16
502(a) of such Act (20 U.S.C. 1101a(a))) in STTR
programs.''.
SEC. 204. TECHNICAL AND BUSINESS ASSISTANCE IMPROVEMENTS.
Section 9 of the Small Business Act (15 U.S.C. 638(q)) is amended--
(1) in subsection (q)--
(A) in paragraph (1), in the matter preceding
subparagraph (A)--
(i) by striking ``may enter into an
agreement with 1 or more vendors selected under
paragraph (2)(A) to provide small business
concerns engaged in SBIR or STTR projects with
technical and business assistance services''
and inserting ``shall authorize recipients of
awards under the SBIR program or the STTR
program to select, if desired, technical and
business assistance provided under subparagraph
(A), (B), or (C) of paragraph (2) with respect
to SBIR or STTR projects'';
(ii) by inserting ``cybersecurity
assistance,'' after ``intellectual property
protections,''; and
(iii) by striking ``such concerns'' and
inserting ``such recipients''; and
(B) in paragraph (2), by adding at the end the
following:
``(C) Staff.--A small business concern may, by
contract or otherwise, use funding provided under this
section to hire new staff, augment staff, or direct
staff to conduct or participate in training activities
consistent with the goals listed in paragraph (1).'';
(C) in paragraph (3)--
(i) by striking subparagraphs (A) and (B)
and inserting the following:
``(A) Phase i.--A Federal agency described in
paragraph (1) shall authorize a recipient of a Phase I
SBIR or STTR award to use not more than $6,500 per
project, included as part of the award of the recipient
or in addition to the amount of the award of the
recipient as determined appropriate by the head of the
Federal agency, for the services described in paragraph
(1)--
``(i) provided through a vendor selected
under paragraph (2)(A);
``(ii) provided through a vendor other than
a vendor selected under paragraph (2)(A);
``(iii) achieved through the activities
described in paragraph (2)(C); or
``(iv) provided through any combination of
clauses (i) and (ii).
``(B) Phase ii.--A Federal agency described in
paragraph (1) shall authorize a recipient of a Phase II
SBIR or STTR award to utilize not more than $50,000 per
project, included as part of the award of the recipient
or in addition to the amount of the award of the
recipient as determined appropriate by the head of the
Federal agency, for the services described in paragraph
(1)--
``(i) provided through a vendor selected
under paragraph (2)(A);
``(ii) provided through a vendor other than
a vendor selected under paragraph (2)(A);
``(iii) achieved through the activities
described in paragraph (2)(C); or
``(iv) provided through any combination of
clauses (i), (ii), and (iii).''; and
(D) by adding at the end the following:
``(5) Targeted review.--A Federal agency may perform
targeted reviews of technical and business assistance funding
as described in subsection (mm)(1)(F).''; and
(2) by adding at the end the following:
``(aaa) I-Corps Participation.--
``(1) In general.--Each Federal agency that is, as of
January 1, 2025, required to conduct an SBIR or STTR program
with an Innovation Corps program (established under section 601
of the American Innovation and Competitiveness Act (42 U.S.C.
1862s-8) and commonly known as `I-Corps') shall--
``(A) provide an option for participation in an I-
Corps teams course, I-Corps bootcamp, or another
equivalent training program to recipients of an award
under the SBIR or STTR program; and
``(B) authorize the recipients described in
subparagraph (A) to use amounts authorized under this
subsection to participate in the I-Corps teams course,
I-Corps bootcamp, or another equivalent training
program.
``(2) Cost of participation.--The cost of participation by
a recipient described in paragraph (1)(A) in an I-Corps course,
I-Corps bootcamp, or another equivalent training program may be
provided by--
``(A) an I-Corps team grant;
``(B) funds awarded to the recipient under this
subsection;
``(C) the participating teams or other sources as
appropriate; or
``(D) any combination of sources described in
subparagraphs (A), (B), and (C).''.
SEC. 205. IMPROVEMENTS TO WEBSITE RELATING TO THE SBIR PROGRAM AND STTR
PROGRAM.
(a) SBIR Program.--Section 9(g)(8) of the Small Business Act (15
U.S.C. 638(g)(8)) is amended--
(1) in subparagraph (B), by striking ``and'' at the end;
(2) in subparagraph (C), by adding ``and'' at the end; and
(3) by adding at the end the following:
``(D) for each research institution subcontracted
by a recipient of a Phase I, Phase II, or Phase III
SBIR award to perform research or research and
development with respect to the award--
``(i) the name and location of the research
institution;
``(ii) whether the research institution
is--
``(I) an institution of higher
education (as defined in section 101 of
the Higher Education Act of 1965 (20
U.S.C. 1001));
``(II) a nonprofit institution (as
defined in section 4 of the Stevenson-
Wydler Technology Innovation Act of
1980 (15 U.S.C. 3703)) other than an
institution of higher education (as
defined in section 101 of the Higher
Education Act of 1965 (20 U.S.C.
1001)); or
``(III) a federally funded research
and development center (as identified
by the National Scientific Foundation
in accordance with the Federal
Acquisition Regulation); and
``(iii) for each research institution that
is an institution of higher education (as
defined in section 101 of the Higher Education
Act of 1965 (20 U.S.C. 1001)), whether the
research institution is--
``(I) a part B institution (as
defined in section 322 the Higher
Education Act of 1965 (20 U.S.C.
1061));
``(II) a Hispanic-serving
institution (as defined in section 502
of such Act (20 U.S.C. 1101a));
``(III) a Tribal College or
University (as defined in section 316
of such Act (20 U.S.C. 1059c));
``(IV) an Alaska Native-serving
institution or a Native Hawaiian-
serving institution (as defined in
section 317(b) of such Act (20 U.S.C.
1059d(b)));
``(V) a Predominantly Black
Institution (as defined in section
371(c) of such Act (20 U.S.C.
1067q(c)));
``(VI) an Asian American and Native
American Pacific Islander-serving
institution (as defined in section
371(c) of such Act (20 U.S.C. 10
1067q(c))); or
``(VII) a Native American-serving
nontribal institution (as defined in
section 371(c) of such Act (20 U.S.C.
1067q(c)));''.
(b) STTR Program.--Section 9(o)(9) of the Small Business Act (15
U.S.C. 638(o)(9)) is amended--
(1) in subparagraph (B), by striking ``and'' at the end;
(2) in subparagraph (C), by adding ``and'' at the end; and
(3) by adding at the end the following:
``(D) for each research institution subcontracted
by a recipient of a Phase I or Phase II STTR award to
perform research or research and development with
respect to the award--
``(i) the name and location of the research
institution;
``(ii) whether the research institution
is--
``(I) an institution of higher
education (as defined in section 101 of
the Higher Education Act of 1965 (20
U.S.C. 1001));
``(II) a nonprofit institution (as
defined in section 4 of the Stevenson-
Wydler Technology Innovation Act of
1980 (15 U.S.C. 3703)) other than an
institution of higher education (as
defined in section 101 of the Higher
Education Act of 1965 (20 U.S.C.
1001)); or
``(III) a federally funded research
and development center (as identified
by the National Scientific Foundation
in accordance with the Federal
Acquisition Regulation); and
``(iii) for each research institution that
is an institution of higher education (as
defined in section 101 of the Higher Education
Act of 1965 (20 U.S.C. 1001)), whether the
research institution is--
``(I) a part B institution (as
defined in section 322 the Higher
Education Act of 1965 (20 U.S.C.
1061));
``(II) a Hispanic-serving
institution (as defined in section 502
of such Act (20 U.S.C. 1101a));
``(III) a Tribal College or
University (as defined in section 316
of such Act (20 U.S.C. 1059c));
``(IV) an Alaska Native-serving
institution or a Native Hawaiian-
serving institution (as defined in
section 317(b) of such Act (20 U.S.C.
1059d(b)));
``(V) a Predominantly Black
Institution (as defined in section
371(c) of such Act (20 U.S.C.
1067q(c)));
``(VI) an Asian American and Native
American Pacific Islander-serving
institution (as defined in section
371(c) of such Act (20 U.S.C. 25
1067q(c))); or
``(VII) a Native American-serving
nontribal institution (as defined in
section 371(c) of such Act (20 U.S.C.
1067q(c)));''.
(c) Database Reporting.--
(1) In general.--Section 9(k) of the Small Business Act (15
U.S.C. 638(k)) is amended--
(A) by striking ``Phase I or Phase II SBIR or
STTR'' each place it appears and inserting ``Phase I,
Phase II, or Phase III SBIR or STTR'';
(B) in paragraph (1)(B)--
(i) in clause (ii), by striking ``and'' at
the end;
(ii) in clause (iii), by adding ``and'' at
the end; and
(iii) by adding at the end the following:
``(iv) information regarding any research
institution subcontracted by that small
business concern to perform research or
research and development with respect to the
award, including--
``(I) the name and location of the
research institution;
``(II) whether the research
institution is--
``(aa) an institution of
higher education (as defined in
section 101 of the Higher
Education Act of 1965 (20
U.S.C. 1001));
``(bb) a nonprofit
institution (as defined in
section 4 of the Stevenson-
Wydler Technology Innovation
Act of 1980 (15 U.S.C. 3703))
other than an institution of
higher education (as defined in
section 101 of the Higher
Education Act of 1965 (20
U.S.C. 1001)); or
``(cc) a federally funded
research and development center
(as identified by the National
Scientific Foundation in
accordance with the Federal
Acquisition Regulation); and
``(III) for each research
institution that is an institution of
higher education (as defined in section
101 of the Higher Education Act of 1965
(20 U.S.C. 1001)), whether the research
institution is an institution described
in paragraphs (1) through (7) of
section 371(a) of such Act (20 U.S.C.
1067q(a));'';
(C) in paragraph (2)--
(i) in subparagraph (A), by striking
``Phase I or Phase II of the SBIR program or
the STTR'' and inserting ``Phase I, Phase II,
or Phase III of the SBIR program or the STTR'';
(ii) in subparagraph (F), by striking
``and'' at the end;
(iii) in subparagraph (G)(ii), by striking
the period at the end and inserting ``; and'';
and
(iv) by adding at the end the following:
``(H) contains information for each research
institution subcontracted by a recipient of a Phase I,
Phase II, or Phase III STTR or SBIR award to perform
research or research and development with respect to
the award, including--
``(i) the name and location of the research
institution;
``(ii) whether the research institution
is--
``(I) an institution of higher
education (as defined in section 101 of
the Higher Education Act of 1965 (20
U.S.C. 1001));
``(II) a nonprofit institution (as
defined in section 4 of the Stevenson-
Wydler Technology Innovation Act of
1980 (15 U.S.C. 3703)) other than an
institution of higher education (as
defined in section 101 of the Higher
Education Act of 1965 (20 U.S.C.
1001)); or
``(III) a federally funded research
and development center (as identified
by the National Scientific Foundation
in accordance with the Federal
Acquisition Regulation); and
``(iii) for each research institution that
is an institution of higher education (as
defined in section 101 of the Higher Education
Act of 1965 (20 U.S.C. 1001)), whether the
research institution is an institution
described in paragraphs (1) through (7) of
section 371(a) of such Act (20 U.S.C.
1067q(a)).''; and
(D) in paragraph (3)(C), by striking ``Phase I or
Phase II award'' each place it appears and inserting
``Phase I, Phase II, or Phase III award''.
(2) Database update deadline.--Notwithstanding paragraphs
(1) or (2) of section 9(k) of the Small Business Act (15 U.S.C.
638(k)), the Administrator shall, not later than 1 year after
the date of enactment of this Act, include--
(A) in the database described such paragraph (1)
the information required under such paragraph, as
amended by subparagraphs (A) and (B) of paragraph (1)
of this subsection; and
(B) in the database described such paragraph (2)
the information required under such paragraph, as
amended by subparagraphs (A) and (C) of paragraph (1)
of this subsection.
TITLE III--COMMERCIALIZATION IMPROVEMENTS
SEC. 301. PHASE III AWARD EDUCATION.
Section 9(r) of the Small Business Act (15 U.S.C. 638(r)) is
amended by adding at the end the following:
``(5) Workforce training.--
``(A) In general.--The Administrator, in
coordination with the Secretary of Defense, the
Administrator of General Services, and the head of any
other Federal agency that the Administrator determines
appropriate, shall establish training activities for
contracting officers and the agency acquisition
workforce of Federal agencies to ensure that all such
individuals are fully aware of all aspects of Phase III
acquisitions under the SBIR and STTR programs, as
applicable.
``(B) Training topics.--The training activities
required under subparagraph (A) shall include training
on--
``(i) the missions, goals, and authorities
of the SBIR and STTR programs;
``(ii) the use of Phase III agreement;
``(iii) Phase III data rights; and
``(iv) the execution of Phase III sole
source award contracts.
``(C) Definitions.--In this paragraph:
``(i) Agency acquisition workforce.--The
term `agency acquisition workforce' means the
employees of a Federal agency that have
procurement or acquisition responsibilities,
including--
``(I) employees described in
section 1703 of title 41, United States
Code; and
``(II) individuals that are part of
the acquisition workforce (as that term
is defined in section 101(a) of title
10, United States Code).
``(ii) Phase iii acquisition.--The term
`Phase III acquisition' means an acquisition of
a good or service from a participant in Phase
III that such participant has commercialized or
is seeking to commercialize as such a
participant.''.
SEC. 302. REPORT ON CERTAIN DENIALS OF PHASE III.
Section 9(r) of the Small Business Act (15 U.S.C. 638(r)), as
amended by section 301, is further amended by adding at the end the
following:
``(6) Reporting.--Not later than 30 days after the date on
which the Department of Defense denies a small business concern
Phase III agreement, the Secretary of Defense shall report that
denial to the Administrator.''.
SEC. 303. TECHNOLOGY COMMERCIALIZATION OFFICIAL.
Section 9 of the Small Business Act (15 U.S.C. 638), as amended by
section 204, is amended by adding at the end the following:
``(bbb) Technology Commercialization Official.--The head of each
Federal agency required to establish an SBIR or STTR program shall--
``(1) designate an existing official within the Federal
agency as the Technology Commercialization Official of that
Federal agency, who shall--
``(A) have sufficient experience with
commercialization;
``(B) provide guidance to SBIR and STTR program
awardees in commercializing and transitioning
technologies;
``(C) coordinate with the Administrator and the
Technology Commercialization Officials of other Federal
agencies to identify additional markets and
commercialization pathways for promising SBIR and STTR
program technologies;
``(D) submit to the Administrator an annual report
on the number of technologies from that SBIR or STTR
program that have advanced commercialization
activities, including information required in the
commercialization impact assessment report under
subsection (ccc);
``(E) identify and advocate for SBIR and STTR
technologies with sufficient technology and
commercialization readiness to advance to Phase III
awards or other non-SBIR or STTR program contracts;
``(F) submit to the Administrator an annual report
on--
``(i) the actions taken by that Federal
agency to simply, standardize, and expedite the
application process and requirements,
procedures, and contracts as required under
subsection (hh); and
``(ii) the results of the actions taken
under clause (i); and
``(G) carry out such other duties as the head of
that Federal agency determines necessary; or
``(2) identify an official in that Federal agency carrying
out responsibilities that are substantially similar to those
described in subparagraphs (A) through (F) of paragraph (1).''.
SEC. 304. PHASE III IMPROVEMENTS.
(a) Procurement Center Representative Directives.--
(1) In general.--Section 9(j)(4) of the Small Business Act
(15 U.S.C. 638(j)(4)) is amended by inserting before the period
at the end the following: ``, and advocate for the maximum
practicable use and transition of products, services, and
technologies developed under SBIR or STTR programs to Phase III
by means of Phase III awards to small business concerns''.
(2) Modification deadline.--Not later than 1 year after the
date of enactment of this Act, the Administrator of the Small
Business Administration shall modify the policy directives
issues pursuant to subsection (j) of section 9 of the Small
Business Act (15 U.S.C. 638(j)) in accordance with paragraph
(4) of that subsection, as amended by paragraph (1).
(b) Phase III Award Simplification.--Section 9(r)(4) of the Small
Business Act (15 U.S.C. 638(r)(4)) is amended--
(1) in subparagraph (A), by striking ``and'' at the end;
(2) in subparagraph (B), by striking the period at the end
and inserting ``; and''; and
(3) by adding at the end the following:
``(C) report to the Administrator on the actions
taken by the Federal agency or Federal prime contractor
to develop simplified and standardized procedures and
model contracts for Phase I, Phase II, and Phase III
SBIR awards; and
``(D) issue standardized solicitation provisions
and contract clauses that provide clear guidance on the
information that small business concerns participating
in SBIR or STTR programs can be expected to provide as
part of market research or as part of a proposal by
those small business concerns to establish eligibility
for Phase III awards.''.
TITLE IV--PILOT PROGRAMS
SEC. 401. EXTEND AND MODIFY ASSISTANCE FOR ADMINISTRATIVE, OVERSIGHT,
AND CONTRACT PROCESSING COSTS.
(a) In General.--Section 9(mm)(1) of the Small Business Act (15
U.S.C. 638(mm)(1)), as amended by section 203, is further amended--
(1) by redesignating subparagraphs (A) through (L) as
clauses (i) through (xii), respectively, and adjusting the
margins accordingly;
(2) by striking ``Subject to paragraph (3)'' and inserting
the following;
``(A) Use of funds.--Subject to subparagraph (B)
and paragraph (3)'';
(3) in subparagraph (A), as so redesignated--
(A) by striking ``September 30, 2025'' and
inserting ``September 30, 2030''; and
(B) by striking ``3 percent'' and inserting ``3.3
percent''; and
(4) by adding at the end the following:
``(B) Transfer of funds.--
``(i) In general.--Not later than 60 days
after the date of enactment of an Act providing
appropriations for the Department of Defense,
the Department of Energy, the Department of
Health and Human Services, the National
Aeronautics and Space Administration, or the
National Science Foundation, the head of each
such entity for which that Act provided
appropriations shall transfer not less than 10
percent of the amount of the funds used for the
purposes described in clauses (i) through (xii)
of subparagraph (A) to the Administrator to
increase the resources of the Administration
for administering the SBIR and STTR programs.
``(ii) Fund use limits.--None of the funds
transferred under clause (i) may be used for or
with respect to any program established under
the Small Business Investment Act of 1958 (15
U.S.C. 661 et seq.).''.
(b) Increasing Participation of Underserved Populations in the SBIR
and STTR Programs.--
(1) In general.--Section 9(mm)(2) of the Small Business Act
(15 U.S.C. 638(mm)(2)) is amended to read as follows:
``(2) Outreach and technical assistance.--A Federal agency
participating in the program under this subsection may 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.''.
(2) Conforming amendment.--Section 9(mm)(6) of the Small
Business Act (15 U.S.C. 638(mm)(6)) is amended by striking
``including'' and all that follows and inserting the following:
``including--
``(A) the use of funds transferred under
subparagraph (B) of paragraph (1) for the uses
authorized under that subparagraph and to achieve the
objectives of paragraph (2); and
``(B) the use of other funds under this subsection
to achieve those objectives.''.
SEC. 402. EXTEND AND EXPAND THE DIRECT TO PHASE II AUTHORITY.
Section 9(cc) of the Small Business Act (15 U.S.C. 638(cc)) is
amended--
(1) by striking ``During'' and inserting the following:
``(1) In general.--During'';
(2) in paragraph (1), as so designated--
(A) by striking ``2012 through 2025'' and inserting
``2012 through 2030''; and
(B) by striking ``the National Institutes of
Health, the Department of Defense, and the Department
of Education may each'' and inserting ``each Federal
agency required to carry out an SBIR program may''; and
(3) by adding at the end the following:
``(2) Limitation.--The total value of awards provided by a
Federal agency under this subsection in a fiscal year shall
be--
``(A) except as provided in subparagraph (B), not
more than 10 percent of the total funds allocated to
the SBIR program of the Federal agency during that
fiscal year; and
``(B) with respect to the National Institutes of
Health, not more than 15 percent of the total funds
allocated to the SBIR program of the National
Institutes of Health during that fiscal year.
``(3) Report.--Each head of a Federal agency that exercises
the authority under this subsection shall include in the next
report submitted by that Federal agency under subsection (g)(9)
following that exercise of authority the number and amount of
awards provided under this subsection by that Federal agency
during the period covered by that report.''.
SEC. 403. EXTEND COMMERCIALIZATION READINESS PROGRAM FOR CIVILIAN
AGENCIES.
Section 9(gg) of the Small Business Act (15 U.S.C. 638(gg)) is
amended--
(1) in the subsection heading, by striking ``Pilot'' and
inserting ``Civilian Agencies Commercialization Readiness'';
(2) by striking ``pilot program'' each place that term
appears and inserting ``covered program''; and
(3) in paragraph (7), by striking ``fiscal year 2025'' and
inserting ``fiscal year 2030''.
SEC. 404. EXTENSION OF CERTAIN SBIR AND STTR PILOT PROGRAMS.
(a) Phase 0 Proof of Concept Partnership Program.--Section 9(jj)(7)
of the Small Business Act (15 U.S.C. 638(jj)(7)) is amended by striking
``at the end of fiscal year 2025'' and inserting ``on September 30,
2030''.
(b) Commercialization Assistance Pilot Programs.--Section 9(uu)(3)
of the Small Business Act (15 U.S.C. 638(uu)(3)) is amended by striking
``September 30, 2025'' and inserting ``September 30, 2030''.
SEC. 405. EXTENSION OF DUE DILIGENCE PROGRAM TO ASSESS SECURITY RISKS.
Section 9(vv)(3)(C) of the Small Business Act (15 U.S.C.
638(vv)(3)(C)) is amended by striking ``September 30, 2025'' and
inserting ``September 30, 2030''.
TITLE V--OVERSIGHT AND SIMPLIFICATION INITIATIVES
SEC. 501. ANNUAL REPORTS TO CONGRESS.
Section 9 of the Small Business Act (15 U.S.C. 638) is amended--
(1) in subsection (g)--
(A) in paragraph (9)--
(i) by inserting ``the Committee on Small
Business and Entrepreneurship of the Senate,
the Committee on Small Business of the House of
Representatives,'' after ``SBIR program to'';
(ii) by inserting a comma after
``Administration''; and
(iii) by inserting after ``Technology
Policy'' the following: ``and publish that
report on the website of that Federal agency as
soon as practicable''; and
(B) in paragraph (10), by striking
``applicable),,'' and inserting ``applicable),'';
(2) in subsection (o)--
(A) in paragraph (8), by striking ``applicable),,''
and inserting ``applicable),''; and
(B) in paragraph (10)--
(i) by inserting ``the Committee on Small
Business and Entrepreneurship of the Senate,
the Committee on Small Business of the House of
Representatives,'' after ``STTR program to'';
(ii) by inserting a comma after
``Administration''; and
(iii) by inserting after ``Technology
Policy'' the following: ``and publish that
report on the website of that Federal agency as
soon as practicable''; and
(3) in subsection (gg)(6), by inserting ``Congress and''
after ``agency to''.
SEC. 502. COMPTROLLER GENERAL REPORT ON DIVERSIFICATION AND
COMMERCIALIZATION.
(a) Definitions.--In this section:
(1) Federal agency; sbir; sttr.--The terms ``Federal
agency'', ``SBIR'', and ``STTR'' have the meanings given those
terms in section 9(e) of the Small Business Act (15 U.S.C.
638(e)).
(2) New entrant.--The term ``new entrant'' means a small
business concern that has not previously received an SBIR or
STTR award.
(3) Underrepresented groups.--The term ``underrepresented
groups'' means small business concerns located in States with
respect to which a low level of SBIR and STTR awards have
historically been awarded, small business concerns owned and
controlled by women, and small business concerns owned and
controlled by socially and economically disadvantaged
individuals.
(4) Participating agency.--The term ``participating
agency'' means a Federal agency carrying out an SBIR or STTR
program under section 9 of the Small Business Act (15 U.S.C.
638).
(5) Small business concern.--The term ``small business
concern'' has the meaning given the term in section 3 of the
Small Business Act (15 U.S.C. 632).
(6) Small business concern owned and controlled by socially
and economically disadvantaged individuals; small business
concern owned and controlled by women.--The terms ``small
business concern owned and controlled by socially and
economically disadvantaged individuals'' and ``small business
concern owned and controlled by women'' have the meanings given
those terms in section 8(d) of the Small Business Act (15
U.S.C. 637(d)).
(b) Report.--Not later than 3 years after the date of enactment of
this Act, the Comptroller General of the United States 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 on the effectiveness of the SBIR and STTR programs with respect
to diversification of participants and commercialization.
(c) Contents.--The report shall include, to the extent practicable,
an assessment of--
(1) the demographics of small business concerns receiving
SBIR or STTR awards, including new entrants and
underrepresented groups;
(2) the efforts of participating agencies to broaden
representation and participation of new entrants and
underrepresented groups in the SBIR and STTR programs;
(3) how participating agencies develop solicitation topics
and attract applicants;
(4) the efforts of participating agencies to support
technology commercialization;
(5) the extent to which the SBIR and STTR awards made by
each participating agency align with the research priorities
and technology needs of that participating agency; and
(6) such other matters as the Comptroller General, in
consultation with the Committee on Small Business and
Entrepreneurship of the Senate and the Committee on Small
Business of the House of Representatives, determines
appropriate.
SEC. 503. EXTEND THE REPORT ON AWARD TIMELINESS.
Section 9(ii)(2)(A) of the Small Business Act (15 U.S.C.
638(ii)(2)(A)) is amended--
(1) in the matter preceding clause (i), by striking ``3
years'' and inserting ``11 years'';
(2) in clause (i), by striking ``and'' at the end;
(3) by redesignating clause (ii) as clause (iii); and
(4) by inserting after clause (i) the following:
``(ii) provides the average and median
amount of time that each Federal agency with an
SBIR or STTR program takes to review and make a
final decision on proposals submitted under the
program; and''.
SEC. 504. PILOT PROGRAM TO ACCELERATE NATIONAL INSTITUTES OF HEALTH
EVALUATION PROCESS.
(a) In General.--Section 9(hh) of the Small Business Act (15 U.S.C.
638(hh)) is amended by adding at the end the following:
``(3) Pilot program to accelerate the national institutes
of health sbir and sttr awards.--
``(A) In general.--Not later than 1 year after the
date of enactment of this paragraph, the Director of
the National Institutes of Health shall establish a
pilot program to reduce the time for awards under the
SBIR and STTR programs of the National Institutes of
Health.
``(B) Award procedures.--In carrying out the pilot
program under subparagraph (A), the Director of the
National Institutes of Health shall develop simplified
and standardized procedures across all relevant
awarding offices at the National Institutes of Health
and reduce the amount of time between the provision of
notice of those awards and the subsequent release of
funding with respect to the awards to be as close to 90
days as possible.
``(C) Merit review.--
``(i) In general.--Under the pilot program
under subparagraph (A), the Director of the
National Institutes of Health may, with respect
to awards under the SBIR and STTR programs of
the National Institutes of Health, use such
peer review procedures (including consultation
with appropriate scientific experts) as the
Director determines to be appropriate to obtain
assessments of scientific and technical merit
and potential for commercialization.
``(ii) Deemed.--The use of peer review
procedures under clause (i) shall be deemed to
fulfill any requirements applicable to the
award under the SBIR or STTR program of the
National Institutes of Health under sections
406(a)(3)(A) and 492 of the Public Health
Service Act (42 U.S.C. 284a(a)(3)(A), 289a).
``(D) Termination.--The pilot program under
subparagraph (A) shall terminate on September 30,
2030.''.
(b) Evaluation Report.--Not later than 3 years after the date of
enactment of this Act, the Director of the National Institutes of
Health 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 an evaluation of the pilot program established under
paragraph (3) of section 9(hh) of the Small Business Act (15 U.S.C.
638(hh)), as added by subsection (a), including an analysis of the peer
review procedures used under subparagraph (C) of that paragraph and the
effects on award times.
SEC. 505. CODIFYING SAFEGUARDS FOR SMALL BUSINESS CONCERNS MAJORITY-
OWNED BY VENTURE CAPITAL OPERATING COMPANIES, HEDGE
FUNDS, OR PRIVATE EQUITY FIRMS.
(a) In General.--Section 9(dd) of the Small Business Act (15 U.S.C.
638(dd)) is amended--
(1) in paragraph (6)(B), by striking ``If a Federal'' and
inserting ``Except as provided in paragraph (8), if a
Federal''; and
(2) by adding at the end the following:
``(8) Participation limits.--
``(A) Definitions.--In this paragraph:
``(i) Covered foreign entity.--the term
`covered foreign entity'--
``(I) means--
``(aa) a foreign entity of
concern;
``(bb) a government or
political party of a foreign
country of concern;
``(cc) a natural person who
is not a lawful permanent
resident of the United States,
citizen of the United States,
or any other protected
individual (as that term is
defined in section 274B(a)(3)
of the Immigration and
Nationality Act (8 U.S.C.
1324b(a)(3))); or
``(dd) a partnership,
association, corporation,
organization, or other
combination of persons
organized under the laws of or
having its principal place of
business in a foreign country
of concern; and
``(II) includes--
``(aa) any entity owned by,
controlled by, or subject to
the jurisdiction or direction
of an entity listed in
subclause (I);
``(bb) any person, wherever
located, who acts as an agent,
representative, or employee of
an entity listed in subclause
(I);
``(cc) any person who acts
in any other capacity at the
order, request, or under the
direction or control, of an
entity listed in subclause (I),
or of a person whose activities
are directly or indirectly
supervised, directed,
controlled, financed, or
subsidized in whole or in
majority part by an entity
listed in subclause (I);
``(dd) any person who
directly or indirectly through
any contract, arrangement,
understanding, relationship, or
otherwise, owns 25 percent or
more of the equity interests of
an entity listed in subclause
(I);
``(ee) any person with
significant responsibility to
control, manage, or direct an
entity listed in subclause (I);
``(ff) any person, wherever
located, who is a citizen or
resident of a country
controlled by an entity listed
in subclause (I); or
``(gg) any corporation,
partnership, association, or
other organization organized
under the laws of a country
controlled by an entity listed
in subclause (I).
``(ii) Foreign entity of concern.--The term
`foreign entity of concern' means a foreign
entity that is--
``(I) designated as a foreign
terrorist organization by the Secretary
of State under section 219(a) of the
Immigration and Nationality Act (8
U.S.C. 1189(a));
``(II) included on the list of
specially designated nationals and
blocked persons maintained by the
Office of Foreign Assets Control of the
Department of the Treasury (commonly
known as the SDN list);
``(III) owned by, controlled by, or
subject to the jurisdiction or
direction of a government of a foreign
country that is a covered nation (as
that term is defined in section 4872 of
title 10, United States Code);
``(IV) alleged by the Attorney
General to have been involved in
activities for which a conviction was
obtained under--
``(aa) chapter 37 of title
18, United States Code
(commonly known as the
`Espionage Act');
``(bb) section 951 or 1030
of title 18, United States
Code;
``(cc) chapter 90 of title
18, United States Code
(commonly known as the
`Economic Espionage Act of
1996');
``(dd) the Arms Export
Control Act (22 U.S.C. 2751 et
seq.);
``(ee) section 224, 225,
226, 227, or 236 of the Atomic
Energy Act of 1954 (42 U.S.C.
2274, 2275, 2276, 2277, and
2284);
``(ff) the Export Control
Reform Act of 2018 (50 U.S.C.
4801 et seq.); or
``(gg) the International
Emergency Economic Powers Act
(50 U.S.C. 1701 et seq.); or
``(V) determined by the Secretary
of Commerce, in consultation with the
Secretary of Defense and the Director
of National Intelligence, to be engaged
in unauthorized conduct that is
detrimental to the national security or
foreign policy of the United States.
``(B) Ownership by a covered foreign entity.--A
small business concern that is majority-owned by
multiple venture capital operating companies, hedge
funds, or private equity firms is ineligible to receive
an award under any SBIR program if the Administrator
determines that such small business concern is, or is
owned and controlled in majority part by, a covered
foreign entity.
``(C) Ownership determination.--In determining
whether a small business concern is ineligible to
receive an award under any SBIR program under
subparagraph (A), the Administrator shall consider
whether the small business concern is a direct or
indirect subsidiary of a foreign-owned firm.
``(D) Size standards.--The Administrator shall
establish size standards for small business concerns
seeking to participate in an SBIR program solely under
the authority under this section.''.
(b) Applicability.--The amendments made by subsection (a) shall
apply only with respect to awards made under a Small Business
Innovation Research Program (as defined in section 9(e) of the Small
Business Act (15 U.S.C. 638(e))) after the date of enactment of this
Act.
SEC. 506. COMMERCIALIZATION IMPACT ASSESSMENT.
Section 9 of the Small Business Act (15 U.S.C. 638), as amended by
section 303, is amended by adding at the end the following:
``(ccc) Commercialization Impact Assessment.--
``(1) In general.--The Administrator shall coordinate with
the head of each Federal agency with an SBIR or STTR program to
develop an annual commercialization impact assessment, which
shall measure, for each small business concern that has
received not less than 50 Phase II awards on or after October 1
of the ninth full fiscal year beginning before the fiscal year
in which the assessment is carried out--
``(A) the total dollar value of Federal awards,
subgrants, contracts, and subcontracts, other than SBIR
or STTR awards, received by the small business concern
in the preceding 9 fiscal years;
``(B) the total dollar value of all SBIR and STTR
Phase I and Phase II awards received by the small
business concern in the preceding 9 fiscal years;
``(C) the average annual gross revenue of the small
business concern over the preceding 9 fiscal years;
``(D) the total revenue of the small business
concern received or realized in the preceding 9 fiscal
years from the sale or licensing of any product or
service resulting from research conducted under an SBIR
or STTR award, which shall be disaggregated by the
revenue from those sales and the revenue from that
licensing;
``(E) additional investments in the small business
concern from any source, other than Phase I or Phase II
SBIR or STTR awards, to further the research and
development conducted under an SBIR or STTR award
received by the small business concern in the preceding
9 fiscal years;
``(F) any mergers and acquisitions of SBIR or STTR
award recipients during or after the completion of a
Phase II award;
``(G) new, unique spin-out companies and third
party revenues from any businesses in the preceding 9
fiscal years resulting from research conducted by the
small business concern under an SBIR or STTR award;
``(H) the year in which the first Phase II award
was received by the small business concern and the
total number of employees of the small business concern
at the time of the first Phase II award;
``(I) the number of employees, as of the end of the
most recently completed fiscal year; and
``(J) the total number and value of Phase III
awards received by the small business concern.
``(2) Publication.--The Administrator shall create a report
on the findings of each commercialization impact assessment and
shall--
``(A) include that report in the annual report
required under subsection (b)(7); and
``(B) submit that report to--
``(i) the Committee on Small Business and
Entrepreneurship of the Senate; and
``(ii) the Committee on Science, Space, and
Technology and the Committee on Small Business
of the House of Representatives.''.
TITLE VI--TECHNICAL CHANGES
SEC. 601. INCLUSION OF SBICS IN THE SBIR AND STTR PROGRAMS.
Section 9 of the Small Business Act (15 U.S.C. 638), as amended by
section 505, is amended--
(1) by striking ``or private equity firm investment'' each
place that term appears and inserting ``private equity firm, or
SBIC investment'';
(2) by striking ``or private equity firms'' each place that
term appears and inserting ``private equity firms, or SBICs'';
(3) in subsection (e)--
(A) in paragraph (18), by striking ``and'' at the
end;
(B) in paragraph (19), by striking the period at
the end and inserting ``; and''; and
(C) by adding at the end the following:
``(20) the term `SBIC' means a small business investment
company as defined in section 103 of the Small Business
Investment Act of 1958 (15 U.S.C. 662).''; and
(4) in the heading for subsection (dd), by striking ``or
Private Equity Firms'' and inserting ``Private Equity Firms, or
SBICs''.
SEC. 602. PHASE III AND SOLE-SOURCE AWARDS.
Section 9(r) of the Small Business Act (15 U.S.C. 638) is amended--
(1) in the heading, by inserting ``Sole Source and Other''
after ``Justification for''; and
(2) in the heading for paragraph (4), by inserting ``sole
source and other'' after ``justification for''.
<all>