,i #aafth ,,congress #ast ,session ,h4 ,r4 #cggd ,,in ,,the ,,house ,,of ,,representatives ,july #af1 #bjai,mr4 ,baird 7for himself1 ,ms4 ,stevens1 ,mr4 ,burchett1 and ,mr4 ,crow7 introduced the following bill2 which was referred to the ,committee on ,small ,business1 and in addition to the ,committee on ,science1 ,space1 and ,technology1 for a period to be subsequently determined by the ,speaker1 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 program1 and for other purposes4 #a4 ,short title2 table of contents 7a7 ,short title ,this ,act may be cited as the ,the ,small ,business ,innovation ,research and ,small ,business ,technology ,transfer ,improvements ,act of #bjai4 7b7 ,table of contents ,the table of contents for this ,act is as follows3 ,sec4 #a4 ,short title2 table of contents4 ,sec4 #b4 ,requiring insertion incentives4 ,sec4 #c4 ,additional ,,sbir and ,,sttr technology insertion reporting requirement4 ,sec4 #d4 ,encouraging innovation in ,united ,states manufacturing4 ,sec4 #e4 ,encouraging innovation in cybersecurity4 ,sec4 #f4 ,compliance of ,phase ,,iii awards with competitive procedures4 ,sec4 #g4 ,procurement center representatives and other acquisition personnel in the ,,sbir and ,,sttr programs4 ,sec4 #h4 ,increased outreach requirements4 ,sec4 #i4 ,annual meeting4 ,sec4 #aj4 ,establishing the ,civilian ,agency ,commercialization ,readiness ,program4 ,sec4 #aa4 ,commercialization assistance pilot programs4 ,sec4 #ab4 ,phase #j ,proof of ,concept ,partnership ,pilot ,program4 ,sec4 #ac4 ,reporting requirements4 ,sec4 #ad4 ,,sbir ,phase flexibility4 #b4 ,requiring insertion incentives ,section #i7y77#e7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fch7y77#e77 is amended by striking is authorized to and inserting shall4 #c4 ,additional ,,sbir and ,,sttr technology insertion reporting requirement ,section #i7y77#f7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fch7y77#f77 is amended-- 7#a7 in subparagraph 7,b71 by striking and at the end2 7#b7 in subparagraph 7,c77iii71 by striking the period at the end and inserting 2 and2 and 7#c7 by adding at the end the following new subparagraph3 7,d7 not later than #abj days after the date of the enactment of this subparagraph1 and not later than ,december #ca of each year thereafter1 submit to the ,committee on ,science1 ,space1 and ,technology and the ,committee on ,small ,business of the ,house of ,representatives1 and to the ,committee on ,small ,business and ,entrepreneurship of the ,senate1 a report describing the goals set under subparagraph 7,a7 and the incentives used or created under subparagraph 7,b74 4 #d4 ,encouraging innovation in ,united ,states manufacturing ,section #i of the ,small ,business ,act 7#ae ,u4,s4,c4 #fch7 is amended by adding at the end the following new subsection3 7uu7 ,encouraging innovation in ,united ,states manufacturing ,in carrying out this section1 the ,administrator shall-- 7#a7 ensure that1 in selecting small business concerns to participate in ,,sbir or ,,sttr programs under this section1 ,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 ,states2 and 7#b7 include in the annual report to ,congress under subsection 7b77#g7 a determination of whether the priority described in paragraph 7#a7 is being carried out4 4 #e4 ,encouraging innovation in cybersecurity ,section #i of the ,small ,business ,act 7#ae ,u4,s4,c4 #fch71 as amended by section #d1 is further amended by adding at the end the following new subsection3 7vv7 ,encouraging innovation in cybersecurity ,in carrying out this section1 the ,administrator shall-- 7#a7 ensure that1 in selecting small business concerns to participate in ,,sbir or ,,sttr programs under this section1 ,federal agencies engaged in cybersecurity research give high priority to small business concerns that are engaged in cybersecurity research and development1 for the purpose of developing and implementing technology services and products to strengthen the security of ,united ,states ,government and private computer systems1 including software1 hardware1 and portable devices2 and 7#b7 include in the annual report to ,congress under subsection 7b77#g7 a determination of whether the priority described in paragraph 7#a7 is being carried out4 4 #f4 ,compliance of ,phase ,,iii awards with competitive procedures ,section #i7r77#d7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fch7r77#d77 is amended by inserting as direct follow-on awards issued without further competition after developed the technology4 #g4 ,procurement center representatives and other acquisition personnel in the ,,sbir and ,,sttr programs 7a7 ,definition of senior procurement executive ,section #i7;e7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fch7;e77 is amended-- 7#a7 in paragraph 7#ab77;,b71 by striking and at the end2 7#b7 in paragraph 7#ac77;,b71 by striking the period at the end and inserting 2 and2 and 7#c7 by adding at the end the following new paragraph3 7#ad7 the term senior procurement executive means an official designated under section #agjb7;c7 of title #da1 ,united ,states ,code1 as the senior procurement executive of a ,federal agency participating in a ,,sbir or ,,sttr program4 4 7b7 ,inclusion of senior procurement executives in ,,sbir and ,,sttr 7#a7 ,in general ,section #i7;b7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fch7;b77 is amended-- 7,a7 in paragraph 7#h71 by striking and at the end2 7,b7 in paragraph 7#i71 by striking the period at the end and inserting 2 and2 and 7,c7 by adding at the end the following new paragraph3 7#aj7 to coordinate1 where appropriate1 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 agency4 4 7#b7 ,technical amendment ,section #i7;b77#c7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fch7;b77#c77 is amended by striking and at the end4 7c7 ,modifications relating to procurement center representatives and other acquisition personnel 7#a7 ,,sbir amendment ,section #i7;j7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fch7;j77 is amended by adding at the end the following new paragraph3 7#d7 ,modifications relating to procurement center representatives ,upon the enactment of this paragraph1 the ,administrator shall modify the policy directives issued pursuant to this subsection to require procurement center representatives 7as described in section #ae7l77 to coordinate with the appropriate contracting officer or ,,sbir program officer1 and the appropriate ,director of ,small and ,disadvantaged ,business ,utilization established pursuant to section #ae7k7 for the agency letting the contract1 to assist small business concerns participating in the ,,sbir program1 particularly in ,phase ,,iii4 ,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 #ae7k7 for the agency letting the contract4 4 7#b7 ,,sttr amendment ,section #i7p77#b7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fch7p77#b77 is amended-- 7,a7 in subparagraph 7,e77ii71 by striking and at the end2 7,b7 in subparagraph 7,f71 by striking the period at the end and inserting a semicolon2 and 7,c7 by adding at the end the following new subparagraph3 7,g7 procedures to ensure that procurement center representatives 7as described in section #ae7l77-- 7i7 coordinate with the appropriate contracting officer or ,,sttr program officer1 and the appropriate ,director of ,small and ,disadvantaged ,business ,utilization established pursuant to section #ae7k7 for the agency letting the contract1 to assist small business concerns participating in the ,,sttr program1 particularly in ,phase ,,iii2 and 7ii7 coordinate with the appropriate contracting officer and the appropriate ,director of the ,office of ,small and ,disadvantaged ,business ,utilization established pursuant to section #ae7k7 for the ,federal agency letting the contract in providing the assistance described in clause 7i72 and 4 7d7 ,amendment to duties of procurement center representatives ,section #ae7l77#b7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fdd7l77#b77 is amended-- 7#a7 in subparagraph 7,i71 by striking and at the end2 7#b7 by redesignating subparagraph 7,j7 as subparagraph 7,l72 and 7#c7 by inserting after subparagraph 7,i7 the following new subparagraphs3 7,j7 coordinate with the appropriate contracting officer or ,,sbir or ,,sttr program officer1 and the appropriate ,director of ,small and ,disadvantaged ,business ,utilization established pursuant to section #ae7k7 for the agency letting the contract1 to assist small business concerns participating in a ,,sbir or ,,sttr program under section #i with ,phase ,,iii2 7,k7 coordinate with the appropriate contracting officer and the appropriate ,director of the ,office of ,small and ,disadvantaged ,business ,utilization established pursuant to subsection 7k7 for the agency letting the contract2 and 4 7e7 ,amendment to the duties of the ,director of ,small and ,disadvantaged ,business ,utilization for ,federal agencies ,section #ae7k7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fdd7k77 is amended-- 7#a7 in paragraph 7#ai71 by striking and at the end2 7#b7 in paragraph 7#bj71 by striking the period at the end and inserting a semicolon2 and 7#c7 by adding at the end the following new paragraphs3 7#ba7 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 #i with researching applicable solicitations for the award of a ,federal contract 7particularly with the ,federal agency that has a funding agreement 7as defined under section #i7 with the concern7 to market the research developed by such concern under such ,,sbir or ,,sttr program2 and 7#bb7 shall provide technical assistance to small business concerns participating in a ,,sbir or ,,sttr program under section #i to submit a bid for an award of a ,federal contract1 including coordination with procurement center representatives and the appropriate senior procurement executive for the agency letting the contract4 4 #h4 ,increased outreach requirements 7a7 ,in general 7#a7 ,,sbir amendment ,section #i7;j7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fch7;j771 as amended by section #h1 is further amended by adding at the end the following new paragraph3 7#e7 ,increased outreach requirements ,upon the enactment of this paragraph1 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 7as defined in section #cfe7c7 of the ,higher ,education ,act of #aife7 and ,hispanic-serving institutions 7as defined in section #ejb7;a77#e7 of such ,act74 4 7#b7 ,,sttr amendment ,section #i7p77#b7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fch7p77#b771 as amended by section #h1 is further amended by adding at the end the following new subparagraph3 7,h7 procedures for outreach efforts to increase the participation in technological innovation under the ,,sbir programs among individuals conducting research at minority institutions 7as defined in section #cfe7c7 of the ,higher ,education ,act of #aife7 and ,hispanic-serving institutions 7as defined in section #ejb7;a77#e7 of such ,act74 4 7b7 ,funding for outreach ,section #i7mm77#a7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fch7mm77#a77 is amended-- 7#a7 in subparagraph 7,i71 by striking the and at the end2 7#b7 in subparagraph 7,j71 by striking the period at the end and inserting a semicolon2 and 7#c7 by adding at the end the following new subparagraph3 7,k7 the outreach efforts described under subsections 7j77#d7 and 7p77#b77;,g72 and 4 #i4 ,annual meeting 7a7 ,in general ,section #i of the ,small ,business ,act 7#ae ,u4,s4,c4 #fch71 as amended by section #e1 is further amended by adding at the end the following new subsection3 7ww7 ,annual meeting 7#a7 ,in general ,the head of each ,federal agency required to have a program under this section 7or a designee7 and the ,administrator 7or a designee7 shall meet annually to discuss methods-- 7,a7 to improve the collection of data under this section2 7,b7 to improve the reporting of data to the ,administrator under this section2 7,c7 to make the application processes for programs under this section more efficient2 and 7,d7 to increase participation in the programs established under this section4 7#b7 ,report ,not later than #fj days after the date on which an annual meeting required under paragraph 7#a7 is held1 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 ,science1 ,space1 and ,technology of the ,house of ,representatives1 a report on the findings of such meeting and recommendations on how to implement changes to programs under this section4 4 7b7 ,funding for annual meeting ,section #i7mm77#a7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fch7mm77#a77 as amended by section #i1 is further amended by adding at the end the following new subparagraph3 7,l7 the annual meeting required under subsection 7vv74 4 #aj4 ,establishing the ,civilian ,agency ,commercialization ,readiness ,program ,section #i7;gg7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fch7;gg77 is amended-- 7#a7 by amending the subsection heading to read as follows3 ,civilian ,agency ,commercialization ,readiness ,program2 7#b7 in paragraph 7#a71 by inserting to establish a ,civilian ,agency ,commercialization ,readiness ,program for civilian agencies after the covered ,federal agency2 7#c7 in paragraph 7#b77;,a7-- 7,a7 by striking establish a pilot program and inserting establish a ,civilian ,agency ,commercialization ,readiness ,program under this subsection2 and 7,b7 by striking the pilot program and inserting such ,civilian ,agency ,commercialization ,readiness ,program2 7#d7 in paragraphs 7#c7 and 7#d71 by striking a pilot program each place such term appears and inserting a ,civilian ,commercialization ,readiness ,program2 7#e7 in paragraph 7#f71 by striking the pilot program and inserting a ,civilian ,agency ,commercialization ,readiness ,program2 7#f7 by striking paragraph 7#g7 and redesignating paragraph 7#h7 as paragraph 7#g72 and 7#g7 in paragraph 7#g7 7as so redesignated71 by amending subparagraph 7,b7 to read as follows3 7,b7 the term ,civilian ,agency ,commercialization ,readiness ,program means each program established under paragraph 7#a74 4 #aa4 ,commercialization assistance pilot programs ,section #i of the ,small ,business ,act 7#ae ,u4,s4,c4 #fch71 as amended by section #aj1 is further amended by adding at the end the following new subsection3 7xx7 ,commercialization assistance pilot programs 7#a7 ,pilot programs implemented 7,a7 ,in general ,except as provided in subparagraph 7,b71 not later than one year after the date of the enactment of this subsection1 a covered agency shall implement a commercialization assistance pilot program1 under which an eligible entity may receive a subsequent ,phase ,,ii ,,sbir award4 7,b7 ,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 subsection1 such covered agency shall not be required to implement a commercialization assistance pilot program under this subsection4 7#b7 ,percent of agency funds ,the head of each covered agency may allocate not more than #e 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 program4 7#c7 ,termination ,a commercialization assistance pilot program established under this subsection shall terminate on ,september #cj1 #bjbd4 7#d7 ,application ,to be selected to receive a subsequent ,phase ,,ii ,,sbir award under a commercialization assistance pilot program1 an eligible entity shall submit to the covered agency implementing such pilot program an application at such time1 in such manner1 and containing such information as the covered agency may require1 including-- 7,a7 an updated ,phase ,,ii commercialization plan2 and 7,b7 the source and amount of the matching funding required under paragraph 7#e74 7#e7 ,matching funding 7,a7 ,in general ,the ,administrator shall require1 as a condition of any subsequent ,phase ,,ii ,,sbir award made to an eligible entity under this subsection1 that a matching amount 7excluding any fees collected by the eligible entity receiving such award7 equal to the amount of such award be provided from an eligible third-party investor4 7,b7 ,ineligible sources ,an eligible entity may not use funding from ineligible sources to meet the matching requirement of subparagraph 7,a74 7#f7 ,award ,a subsequent ,phase ,,ii ,,sbir award made to an eligible entity under this subsection-- 7,a7 may not exceed the limitation described under subsection 7aa77#a72 and 7,b7 shall be disbursed during ,phase ,,ii4 7#g7 ,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 commercialization4 7#h7 ,selection ,in selecting eligible entities to participate in a commercialization assistance pilot program under this subsection1 the head of a covered agency shall consider-- 7,a7 the extent to which such award could aid the eligible entity in commercializing the research funded under the eligible entity's ,phase ,,ii program2 7,b7 whether the updated ,phase ,,ii commercialization plan submitted under paragraph 7#d7 provides a sound approach for establishing technical feasibility that could lead to commercialization of such research2 7,c7 whether the proposed activities to be conducted under such updated ,phase ,,ii commercialization plan further improve the likelihood that such research will provide societal benefits2 7,d7 whether the small business concern has progressed satisfactorily in ,phase ,,ii to justify receipt of a subsequent ,phase ,,ii ,,sbir award2 7,e7 the expectations of the eligible third-party investor that provides matching funding under paragraph 7#e72 and 7,f7 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 benefit4 7#i7 ,evaluation ,report ,not later than #c years after the date of the enactment of this subsection1 the ,comptroller ,general of the ,united ,states shall submit to the ,committee on ,science1 ,space1 and ,technology and the ,committee on ,small ,business of the ,house of ,representatives1 and the ,committee on ,small ,business and ,entrepreneurship of the ,senate1 a report including-- 7,a7 a summary of the activities of commercialization assistance pilot programs carried out under this subsection2 7,b7 a detailed compilation of results achieved by such commercialization assistance pilot programs1 including the number of eligible entities that received awards under such programs2 7,c7 the rate at which each eligible entity that received a subsequent ,phase ,,ii ,,sbir award under this subsection commercialized research of the recipient2 7,d7 the growth in employment and revenue of eligible entities that is attributable to participation in a commercialization assistance pilot program2 7,e7 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 7ff72 7,f7 demographic information1 such as ethnicity and geographic location1 of eligible entities participating in a commercialization assistance pilot program2 7,g7 an accounting of the funds used at each covered agency that implements a commercialization assistance pilot program under this subsection2 7,h7 the amount of matching funding provided by eligible third-party investors1 set forth separately by source of funding2 7,i7 an analysis of the effectiveness of the commercialization assistance pilot program implemented by each covered agency2 and 7,j7 recommendations for improvements to the commercialization assistance pilot program4 7#aj7 ,definitions ,for purposes of this subsection3 7,a7 ,covered agency ,the term covered agency means a ,federal agency required to have an ,,sbir program4 7,b7 ,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 7ff7 from the covered agency to which such small business concern is applying for a subsequent ,phase ,,ii ,,sbir award4 7,c7 ,eligible third-party investor ,the term eligible third-party investor means a small business concern other than an eligible entity1 a venture capital firm1 an individual investor1 a non-,,sbir ,federal1 ,state or local government1 or any combination thereof4 7,d7 ,ineligible sources ,the term ineligible sources means the following3 7i7 ,the eligible entity's internal research and development funds4 7ii7 ,funding in forms other than cash1 such as in-kind or other intangible assets4 7iii7 ,funding from the owners of the eligible entity1 or the family members or affiliates of such owners4 7iv7 ,funding attained through loans or other forms of debt obligations4 7,e7 ,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 program4 4 #ab4 ,phase #j ,proof of ,concept ,partnership ,pilot ,program ,section #i7;jj7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fch7;jj7 is amended-- 7#a7 in paragraph 7#a7-- 7,a7 by striking ,the ,director of the ,national ,institutes of ,health and inserting ,each covered agency head2 and 7,b7 by striking the ,director and inserting each covered agency head2 7#b7 by amending subparagraph 7,a7 of paragraph 7#b7 to read as follows3 7,a7 the term covered agency head means the ,director of the ,national ,institutes of ,health1 the ,director of the ,national ,science ,foundation1 the ,administrator of the ,national ,aeronautics and ,space ,administration and the ,secretary of ,energy2 2 7#c7 in paragraph 7#d7-- 7,a7 in subparagraph 7,a71 by striking ,the ,director and inserting ,each covered agency head2 and 7,b7 in subparagraph 7,b71 by striking the ,director shall consider1 in addition to any other criteria the ,director and inserting each covered agency head shall consider1 in addition to any other criteria the appropriate covered agency head2 and 7#d7 in paragraph 7#f71 by striking ,the ,director and inserting ,each covered agency head4 #ac4 ,reporting requirements 7a7 ,annual report to ,congress ,section #i7;b77#g7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fch7;b77#g77 is amended by striking to report not less than annually and inserting to submit a report not later than ,december #ca of each year4 7b7 ,annual report to ,,sba and the ,office of ,science and ,technology ,policy ,section #i7;g77#i7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fch7;g77#i77 is amended-- 7#a7 by striking make an annual report and inserting not later than ,march #cj of each year1 submit a report2 and 7#b7 by striking and the ,office of ,science and ,technology ,policy and inserting 1 the ,office of ,science and ,technology ,policy1 the ,committee on ,science1 ,space1 and ,technology and the ,committee on ,small ,business of the ,house of ,representatives1 and the ,committee on ,small ,business and ,entrepreneurship of the ,senate4 #ad4 ,,sbir ,phase flexibility ,section #i7;cc7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fch7;cc77 is amended by striking ,during fiscal years and all that follows through may each provide and inserting ,during fiscal years #bjbj through #bjbd1 all agencies participating in the ,,sbir program may provide4