,,ii #aagth ,,congress #b;d ,session ,s4 #dijj ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,september #bj1 #bjbb,mr4 ,cardin 7for himself and ,ms4 ,ernst7 introduced the following bill2 which was read twice1 considered1 read the third time1 and passed ,a ,,bill ,to reauthorize the ,,sbir and ,,sttr programs and pilot programs1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,,sbir and ,,sttr ,extension ,act of #bjbb4 #b4 ,definitions ,in this ,act3 7#a7 ,administration2 ,administrator ,the terms ,administration and ,administrator mean the ,small ,business ,administration and the ,administrator thereof1 respectively4 7#b7 ,federal agency2 ,phase ,i2 ,phase ,,ii2 ,phase ,,iii2 ,,sbir2 ,,sttr ,the terms ,federal agency1 ,phase ,i1 ,phase ,,ii1 ,phase ,,iii1 ,,sbir1 and ,,sttr have the meanings given those terms1 respectively1 in section #i7;e7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fch7;e774 #c4 ,reauthorization of ,,sbir and ,,sttr programs and pilot programs ,section #i of the ,small ,business ,act 7#ae ,u4,s4,c4 #fch7 is amended by striking #bjbb each place that term appears and inserting #bjbe4 #d4 ,foreign risk management 7a7 ,definitions ,section #i7;e7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fch7;e77 is amended-- 7#a7 in paragraph 7#ac77;,b71 by striking and at the end2 7#b7 in paragraph 7#ad71 by striking the period at the end and inserting a semicolon2 and 7#c7 by adding at the end the following3 7#ae7 the term covered individual means an individual who-- 7,a7 contributes in a substantive1 meaningful way to the scientific development or execution of a research and development project proposed to be carried out with a research and development award from a ,federal research agency2 and 7,b7 is designated as a covered individual by the ,federal research agency concerned2 7#af7 the term foreign affiliation means a funded or unfunded academic1 professional1 or institutional appointment or position with a foreign government or government-owned entity1 whether full-time1 part-time1 or voluntary 7including adjunct1 visiting1 or honorary72 7#ag7 the term foreign country of concern means the ,people's ,republic of ,china1 the ,democratic ,people's ,republic of ,korea1 the ,russian ,federation1 the ,islamic ,republic of ,iran1 or any other country determined to be a country of concern by the ,secretary of ,state2 7#ah7 the term malign foreign talent recruitment program has the meaning given such term in section #ajfch of the ,research and ,development1 ,competition1 and ,innovation ,act 7division ,b of ,public ,law #aag-afg72 and 7#ai7 the term federally funded award means a ,phase ,i1 ,phase ,,ii 7including a ,phase ,,ii award under subsection 7cc771 or ,phase ,,iii ,,sbir or ,,sttr award made using a funding agreement4 4 7b7 ,due diligence program to assess security risks 7#a7 ,in general ,section #i of the ,small ,business ,act 7#ae ,u4,s4,c4 #fch7 is amended by adding at the end the following3 7vv7 ,due diligence program to assess security risks 7#a7 ,establishment ,the head of each ,federal agency required to establish an ,,sbir or ,,sttr program1 in coordination with the ,administrator1 shall establish and implement a due diligence program to assess security risks presented by small business concerns seeking a federally funded award4 7#b7 ,risks ,each program established under paragraph 7#a7 shall-- 7,a7 assess1 using a risk-based approach as appropriate1 the cybersecurity practices1 patent analysis1 employee analysis1 and foreign ownership of a small business concern seeking an award1 including the financial ties and obligations 7which shall include surety1 equity1 and debt obligations7 of the small business concern and employees of the small business concern to a foreign country1 foreign person1 or foreign entity2 and 7,b7 assess awards and proposals or applications1 as applicable1 using a risk-based approach as appropriate1 including through the use of open-source analysis and analytical tools1 for the nondisclosures of information required under 7g77#ac74 7#c7 ,administrative costs 7,a7 ,in general ,in addition to the amount allocated under subsection 7mm77#a71 each ,federal agency required to establish an ,,sbir program may allocate not more than #b percent of the funds allocated to the ,,sbir program of the ,federal agency for the cost of establishing the due diligence program required under this subsection4 7,b7 ,reporting 7i7 ,in general ,not later than ,december #ca of the year in which this subparagraph is enacted1 and not later than ,december #ca of each year thereafter1 the head of a ,federal agency that exercises the authority under subparagraph 7,a7 shall submit to the ,committee on ,small ,business and the ,committee on ,science1 ,space1 and ,technology of the ,house of ,representatives1 the ,committee on ,small ,business and ,entrepreneurship of the ,senate1 and the ,administrator1 for the covered year-- 7,i7 the total funds allowed to be allocated for the cost of establishing the due diligence program required under this subsection2 7,,ii7 the total amount of funds obligated or expended under subparagraph 7,a72 and 7,,iii7 the due diligence activities carried out or to be carried out using amounts allocated under subparagraph 7,a74 7ii7 ,annual report inclusion ,the ,administrator shall include the information submitted by head of a ,federal agency under clause 7i7 in the next annual report submitted under subsection 7b77#g7 after the ,administrator receives such information4 7iii7 ,covered year ,in this subparagraph1 the term covered year means1 with respect to the information required under clause 7i71 the year covered by the annual report submitted under subsection 7b77#g7 in which the ,administrator is required to include such information by clause 7ii74 7,c7 ,termination date ,this paragraph shall terminate on ,september #cj1 #bjbe4 4 7#b7 ,implementation 7,a7 ,in general ,not later than #bgj days after the date of enactment of this ,act1 the head of a ,federal agency required to establish an ,,sbir or ,,sttr program shall implement a due diligence program under subsection 7vv7 of section #i of the ,small ,business ,act 7#ae ,u4,s4,c4 #fch71 as added by paragraph 7#a71 at the ,federal agency that1 to the extent practicable1 incorporates the applicable best practices disseminated under paragraph 7#c74 7,b7 ,paperwork ,reduction ,act ,chapter #ce of title #dd1 ,united ,states ,code 7commonly known as the ,paperwork ,reduction ,act71 shall not apply to the implementation of a due diligence program under subsection 7vv7 of section #i of the ,small ,business ,act 7#ae ,u4,s4,c4 #fch71 as added by paragraph 7#a74 7,c7 ,briefing ,not later than #cj days after the date of enactment of this ,act1 and on a recurring basis until implementation is complete1 each ,federal agency required to establish a due diligence program under subsection 7vv7 of section #i of the ,small ,business ,act 7#ae ,u4,s4,c4 #fch71 as added by paragraph 7#a71 shall brief 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 ,representatives on the implementation of the due diligence program4 7#c7 ,best practices ,not later than #ahj days after the date of enactment of this ,act1 the ,administrator shall-- 7,a7 in coordination with the ,director of the ,office of ,science and ,technology ,policy and in consultation with the ,committee on ,foreign ,investment in the ,united ,states1 disseminate among ,federal agencies required to establish an ,,sbir or ,,sttr program best practices of those ,federal agencies for due diligence programs required under subsection 7vv7 of section #i of the ,small ,business ,act 7#ae ,u4,s4,c4 #fch71 as added by paragraph 7#a72 and 7,b7 in consultation with the ,committee on ,foreign ,investment in the ,united ,states1 provide to ,federal agencies described in subparagraph 7,a7 guidance on the business relationships required to be disclosed under paragraph 7#ac77;,g7 of subsection 7g7 and paragraph 7#ag77;,g7 of subsection 7o7 of section #i of the ,small ,business ,act 7#ae ,u4,s4,c4 #fch71 as added by this ,act4 7#d7 ,,gao study ,not later than #a year after the date of enactment of this ,act1 and annually thereafter for #c years1 the ,comptroller ,general of the ,united ,states shall conduct a study and submit to the ,committee on ,small ,business and ,entrepreneurship and the ,committee on ,armed ,services of the ,senate and the ,committee on ,small ,business1 the ,committee on ,armed ,services1 and the ,committee on ,science1 ,space1 and ,technology of the ,house of ,representatives a report on the implementation and best practices of due diligence programs established under subsection 7vv7 of section #i of the ,small ,business ,act 7#ae ,u4,s4,c4 #fch71 as added by paragraph 7#a71 across ,federal agencies required to establish an ,,sbir or ,,sttr program4 7#e7 ,rule of construction ,nothing in subsection 7vv7 of section #i of the ,small ,business ,act 7#ae ,u4,s4,c4 #fch71 as added by paragraph 7#a71 shall be construed to-- 7,a7 apply to any ,federal agency with a due diligence program that applies to the ,,sbir or ,,sttr programs required under subsection 7vv7 of section #i of the ,small ,business ,act 7#ae ,u4,s4,c4 #fch71 as added by paragraph 7#a71 in existence as of the date of enactment of this ,act2 or 7,b7 restrict any ,federal agency from taking due diligence measures in addition to those required under such subsection 7vv7 at the ,federal agency4 7c7 ,disclosures regarding ties to ,people's ,republic of ,china and other foreign countries 7#a7 ,,sbir ,section #i7;g7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fch7;g77 is amended-- 7,a7 in paragraph 7#aa71 by striking and at the end2 7,b7 in paragraph 7#ab71 by striking the period at the end and inserting a semicolon2 and 7,c7 by adding at the end the following3 7#ac7 require each small business concern submitting a proposal or application for a federally funded award to disclose in the proposal or application-- 7,a7 the identity of all owners and covered individuals of the small business concern who are a party to any foreign talent recruitment program of any foreign country of concern1 including the ,people's ,republic of ,china2 7,b7 the existence of any joint venture or subsidiary of the small business concern that is based in1 funded by1 or has a foreign affiliation with any foreign country of concern1 including the ,people's ,republic of ,china2 7,c7 any current or pending contractual or financial obligation or other agreement specific to a business arrangement1 or joint venture-like arrangement with an enterprise owned by a foreign state or any foreign entity2 7,d7 whether the small business concern is wholly owned in the ,people's ,republic of ,china or another foreign country of concern2 7,e7 the percentage1 if any1 of venture capital or institutional investment by an entity that has a general partner or individual holding a leadership role in such entity who has a foreign affiliation with any foreign country of concern1 including the ,people's ,republic of ,china2 7,f7 any technology licensing or intellectual property sales to a foreign country of concern1 including the ,people's ,republic of ,china1 during the #e-year period preceding submission of the proposal2 and 7,g7 any foreign business entity1 offshore entity1 or entity outside the ,united ,states related to the small business concern2 7#ad7 after reviewing the disclosures of a small business concern under paragraph 7#ac71 and if determined appropriate by the head of such ,federal agency1 request such small business concern to provide true copies of any contractual or financial obligation or other agreement specific to a business arrangement1 or joint-venture like arrangement with an enterprise owned by a foreign state or any foreign entity in effect during the #e-year period preceding submission of the proposal with respect to which such small business concern made such disclosures2 4 7#b7 ,,sttr ,section #i7o7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fch7o77 is amended-- 7,a7 in paragraph 7#ae71 by striking and at the end2 7,b7 in paragraph 7#af71 by striking the period at the end and inserting a semicolon2 and 7,c7 by adding at the end the following3 7#ag7 require each small business concern submitting a proposal or application for a federally funded award to disclose in the proposal or application-- 7,a7 the identity of all owners and covered individuals of the small business concern who are a party to any foreign talent recruitment program of any foreign country of concern1 including the ,people's ,republic of ,china2 7,b7 the existence of any joint venture or subsidiary of the small business concern that is based in1 funded by1 or has a foreign affiliation with any foreign country of concern1 including the ,people's ,republic of ,china2 7,c7 any current or pending contractual or financial obligation or other agreement specific to a business arrangement1 or joint venture-like arrangement with an enterprise owned by a foreign state or any foreign entity2 7,d7 whether the small business concern is wholly owned in the ,people's ,republic of ,china or another foreign country2 7,e7 the percentage1 if any1 of venture capital or institutional investment by an entity that has a general partner or individual holding a leadership role in such entity who has a foreign affiliation with any foreign country of concern1 including the ,people's ,republic of ,china2 7,f7 any technology licensing or intellectual property sales to a foreign country of concern1 including the ,people's ,republic of ,china1 during the #e-year period preceding submission of the proposal2 and 7,g7 any foreign business entity1 offshore entity1 or entity outside the ,united ,states related to the small business concern2 7#ah7 after reviewing the disclosures of a small business concern under paragraph 7#ag71 and if determined appropriate by the head of such ,federal agency1 request such small business concern to provide true copies of any contractual or financial obligation or other agreement specific to a business arrangement1 or joint-venture like arrangement with an enterprise owned by a foreign state or any foreign entity in effect during the #e-year period preceding submission of the proposal with respect to which such small business concern made such disclosures2 4 7d7 ,denial of awards 7#a7 ,,sbir ,section #i7;g7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fch7;g771 as amended by subsection 7c77#a71 is further amended by adding at the end the following3 7#ae7 not make an award under the ,,sbir program of the ,federal agency to a small business concern if the head of the ,federal agency determines that-- 7,a7 the small business concern submitting the proposal or application-- 7i7 has an owner or covered individual that is party to a malign foreign talent recruitment program2 7ii7 has a business entity1 parent company1 or subsidiary located in the ,people's ,republic of ,china or another foreign country of concern2 or 7iii7 has an owner or covered individual that has a foreign affiliation with a research institution located in the ,people's ,republic of ,china or another foreign country of concern2 and 7,b7 the relationships and commitments described in clauses 7i7 through 7iii7 of subparagraph 7,a7-- 7i7 interfere with the capacity for activities supported by the ,federal agency to be carried out2 7ii7 create duplication with activities supported by the ,federal agency2 7iii7 present concerns about conflicts of interest2 7iv7 were not appropriately disclosed to the ,federal agency2 7v7 violate ,federal law or terms and conditions of the ,federal agency2 or 7vi7 pose a risk to national security2 4 7#b7 ,,sttr ,section #i7o7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fch7o771 as amended by subsection 7c77#b71 is further amended by adding at the end the following3 7#ai7 not make an award under the ,,sttr program of the ,federal agency to a small business concern if the head of the ,federal agency determines that-- 7,a7 the small business concern submitting the proposal or application-- 7i7 has an owner or covered individual that is party to a malign foreign talent recruitment program2 7ii7 has a business entity1 parent company1 or subsidiary located in the ,people's ,republic of ,china or another foreign country of concern2 or 7iii7 has an owner or covered individual that has a foreign affiliation with a research institution located in the ,people's ,republic of ,china or another foreign country of concern2 and 7,b7 the relationships and commitments described in clauses 7i7 through 7iii7 of subparagraph 7,a7-- 7i7 interfere with the capacity for activities supported by the ,federal agency to be carried out2 7ii7 create duplication with activities supported by the ,federal agency2 7iii7 present concerns about conflicts of interest2 7iv7 were not appropriately disclosed to the ,federal agency2 7v7 violate ,federal law or terms and conditions of the ,federal agency2 or 7vi7 pose a risk to national security2 4 #e4 ,agency recovery authority and ongoing reporting 7a7 ,,sbir ,section #i7;g7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fch7;g771 as amended by section #d7;d77#a71 is further amended by adding at the end the following3 7#af7 require a small business concern receiving an award under its ,,sbir program to repay all amounts received from the ,federal agency under the award if-- 7,a7 the small business concern makes a material misstatement that the ,federal agency determines poses a risk to national security2 or 7,b7 there is a change in ownership1 change to entity structure1 or other substantial change in circumstances of the small business concern that the ,federal agency determines poses a risk to national security2 and 7#ag7 require a small business concern receiving an award under its ,,sbir program to regularly report to the ,federal agency and the ,administration throughout the duration of the award on-- 7,a7 any change to a disclosure required under subparagraphs 7,a7 through 7,g7 of paragraph 7#ac72 7,b7 any material misstatement made under paragraph 7#af77;,a72 and 7,c7 any change described in paragraph 7#af77;,b74 4 7b7 ,,sttr ,section #i7o7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fch7o771 as amended by section #d7;d77#a71 is further amended by adding at the end the following3 7#bj7 require a small business concern receiving an award under its ,,sttr program to repay all amounts received from the ,federal agency under the award if-- 7,a7 the small business concern makes a material misstatement that the ,federal agency determines poses a risk to national security2 or 7,b7 there is a change in ownership1 change to entity structure1 or other substantial change in circumstances of the small business concern that the ,federal agency determines poses a risk to national security2 and 7#ba7 require a small business concern receiving an award under its ,,sttr program to regularly report to the ,federal agency and the ,administration throughout the duration of the award on-- 7,a7 any change to a disclosure required under subparagraphs 7,a7 through 7,g7 of paragraph 7#ag72 7,b7 any material misstatement made under paragraph 7#bj77;,a72 and 7,c7 any change described in paragraph 7#bj77;,b74 4 7c7 ,paperwork ,reduction ,act ,chapter #ce of title #dd1 ,united ,states ,code 7commonly known as the ,paperwork ,reduction ,act71 shall not apply to the implementation of paragraphs 7#af7 and 7#ag7 of subsection 7g7 or paragraphs 7#bj7 and 7#ba7 of subsection 7o7 of section #i of the ,small ,business ,act 7#ae ,u4,s4,c4 #fch71 as added by subsections 7a7 and 7b74 #f4 ,report on adversarial military and foreign influence in the ,,sbir and ,,sttr programs 7a7 ,covered agency defined ,in this section1 the term covered agency means-- 7#a7 the ,department of ,defense2 7#b7 the ,department of ,energy2 7#c7 the ,department of ,health and ,human ,services2 or 7#d7 the ,national ,science ,foundation4 7b7 ,requirement 7#a7 ,in general ,except as provided in paragraph 7#b71 not later than #ahj days after the date of enactment of this ,act1 the head of each covered agency shall submit a report assessing the adversarial military and foreign influences in the ,,sbir and ,,sttr programs at the covered agency to-- 7,a7 the ,committee on ,armed ,services1 the ,committee on ,small ,business and ,entrepreneurship1 and the ,committee on ,commerce1 ,science1 and ,transportation of the ,senate2 and 7,b7 the ,committee on ,armed ,services1 the ,committee on ,small ,business1 and the ,committee on ,science1 ,space1 and ,technology of the ,house of ,representatives4 7#b7 ,department of ,health and ,human ,services ,the ,secretary of ,health and ,human ,services shall submit #b reports under paragraph 7#a7-- 7,a7 #a assessing the adversarial military and foreign influences in the ,,sbir and ,,sttr programs of the ,national ,institutes of ,health2 and 7,b7 #a assessing the adversarial military and foreign influences in the ,,sbir and ,,sttr programs of the ,department of ,health and ,human ,services other than those of the ,national ,institutes of ,health4 7c7 ,contents ,each report submitted by a covered agency under subsection 7b7 shall include an analysis of-- 7#a7 the national security and research and integrity risks of the ,,sbir and ,,sttr programs of the covered agency2 and 7#b7 the capability of such covered agency to identify and mitigate such risks4 7d7 ,form ,each report submitted under subsection 7b7 shall be in unclassified form1 but may include a classified annex4 7e7 ,independent entity contracting ,the head of each covered agency1 in coordination with the heads of other ,federal agencies1 as appropriate1 may enter into a contract with an independent entity to prepare a report required under subsection 7b74 #g4 ,program on innovation open topics 7a7 ,in general ,section #i of the ,small ,business ,act 7#ae ,u4,s4,c4 #fch71 as amended by this ,act1 is further amended-- 7#a7 in subsection 7b77#g7-- 7,a7 in subparagraph 7,g71 by striking and at the end2 and 7,b7 by adding at the end the following3 7,i7 the number of applications submitted to each ,federal agency participating in the ,,sbir or ,,sttr program in innovation open topics as compared to conventional topics1 and how many small business concerns receive funding from open topics compared to conventional topics2 7,j7 the total number and dollar amount1 and average size1 of awards made by each ,federal agency participating in the ,,sbir or ,,sttr program1 by phase1 from-- 7i7 open topics2 and 7ii7 conventional topics2 2 and 7#b7 by adding at the end the following3 7ww7 ,program on innovation open topics 7#a7 ,establishment ,not later than #ahj days after the date of enactment of this subsection1 the ,secretary of ,defense shall establish innovation open topic activities using the ,,sbir and ,,sttr programs of the ,department of ,defense in order to-- 7,a7 increase the transition of commercial technology to the ,department of ,defense2 7,b7 expand the small business nontraditional industrial base2 7,c7 increase commercialization derived from investments of the ,department of ,defense2 and 7,d7 expand the ability for qualifying small business concerns to propose technology solutions to meet the needs of the ,department of ,defense4 7#b7 ,frequency ,the ,secretary of ,defense shall conduct not less than #a open topic announcement at each component of the ,department of ,defense per fiscal year4 7#c7 ,briefing ,not later than #ahj days after the date of enactment of this subsection1 the ,secretary of ,defense shall provide a briefing on the establishment of the program required under paragraph 7#a7 to-- 7,a7 the ,committee on ,armed ,services and the ,committee on ,small ,business and ,entrepreneurship of the ,senate2 and 7,b7 the ,committee on ,small ,business1 the ,committee on ,armed ,services1 and the ,committee on ,science1 ,space1 and ,technology of the ,house of ,representatives4 4 7b7 ,,gao report ,not later than #a year after the date of enactment of this ,act1 and annually thereafter for #c years1 the ,comptroller ,general of the ,united ,states shall submit to ,congress and issue a publicly available report comparing open topics and conventional topics under the ,,sbir and ,,sttr programs that includes1 to the extent practicable-- 7#a7 an assessment of the percentage of small business concerns that progress from ,phase ,i to ,phase ,,ii awards1 then to ,phase ,,iii awards2 7#b7 the number of awards under the ,,sbir and ,,sttr programs made to first-time applicants and first-time awardees2 7#c7 the number of awards under the ,,sbir and ,,sttr programs made to non-traditional small business concerns1 including those owned by women1 minorities1 and veterans2 7#d7 a description of outreach and assistance efforts by the ,department of ,defense to encourage and prepare new and diverse small business concerns to participate in the program established under subsection 7ww7 of section #i of the ,small ,business ,act 7#ae ,u4,s4,c4 #fch71 as added by subsection 7a72 7#e7 the length of time to review and disburse awards under such subsection 7ww71 evaluated in a manner enabling normalized comparisons of such times taken by each ,federal agency that is required to establish an ,,sbir or ,,sttr program and offers open topics2 7#f7 the ratio1 and an assessment1 of the amount of funding allocated towards open topics as compared to conventional topics at each ,federal agency that is required to establish an ,,sbir or ,,sttr program and offers open topics2 and 7#g7 a comparison of the types of technology and end users funded under open topics compared to the types of technology and end users funded under conventional topics4 #h4 ,increased minimum performance standards for experienced firms ,section #i of the ,small ,business ,act 7#ae ,u4,s4,c4 #fch71 as amended by this ,act1 is further amended-- 7#a7 in subsection 7b77#g71 by adding at the end the following3 7,k7 the minimum performance standards established under subsection 7qq71 including any applicable modifications under paragraph 7#c7 of such subsection1 and the number of small business concerns that did not meet those minimum performance standards1 provided that the ,administrator does not publish any personally identifiable information1 the identity of each such small business concern1 or any otherwise sensitive information2 and 7,l7 the aggregate number and dollar amount of ,,sbir and ,,sttr awards made pursuant to waivers under subsection 7qq77#c77;,e71 provided that the ,administrator does not publish any personally identifiable information1 the identity of each such small business concern1 or any otherwise sensitive information2 2 and 7#b7 in subsection 7qq7-- 7,a7 by redesignating paragraphs 7#c7 and 7#d7 as paragraphs 7#d7 and 7#e71 respectively2 7,b7 by inserting after paragraph 7#b7 the following3 7#c7 ,increased minimum performance standards for experienced firms 7,a7 ,progress to ,phase ,,ii success 7i7 ,in general ,with respect to a small business concern that received or receives more than #ej ,phase ,i awards during a covered period1 each minimum performance standard established under paragraph 7#a77;,a77ii7 shall be doubled for such covered period4 7ii7 ,consequence of failure to meet standard ,if the head of a ,federal agency determines that a small business concern that received a ,phase ,i award from the ,federal agency is not meeting an applicable increased minimum performance standard modified under clause 7i71 the small business concern may not receive more than #bj total ,phase ,i awards and ,phase ,,ii awards under subsection 7cc7 from each ,federal agency during the #a-year period beginning on the date on which such determination is made4 7iii7 ,covered period defined ,in this subparagraph1 the term covered period means a consecutive period of #e fiscal years preceding the most recent fiscal year4 7,b7 ,progress to ,phase ,,iii success 7i7 ,in general ,each minimum performance standard established under paragraph 7#b77;,a77ii7 shall-- 7,i7 with respect to a small business concern that received or receives more than #ej ,phase ,,ii awards during a covered period1 require an average of #bej1jjj of aggregate sales and investments per ,phase ,,ii award received during such covered period2 and 7,,ii7 with respect to a small business concern that received or receives more than #ajj ,phase ,,ii awards during a covered period1 require an average of #dej1jjj of aggregate sales and investments per ,phase ,,ii award received during such covered period4 7ii7 ,consequence of failure to meet standard ,if the head of a ,federal agency determines that a small business concern that received a ,phase ,i award from the agency is not meeting an applicable increased minimum performance standard modified under clause 7i71 the small business concern may not receive more than #bj total ,phase ,i awards and ,phase ,,ii awards under subsection 7cc7 from each agency during the #a-year period beginning on the date on which such determination is made4 7iii7 ,documentation 7,i7 ,in general ,a small business concern that is subject to an increased minimum performance standard described in clause 7i7 shall submit to the ,administrator supporting documentation evidencing that all covered sales of the small business concern were properly used to meet the increased minimum performance standard4 7,,ii7 ,covered sale defined ,in this clause1 the term covered sale means a sale by a small business concern-- 7aa7 that the small business concern claims to be attributable to an ,,sbir or ,,sttr award2 7bb7 for which no amount of the payment was or is made using ,federal funds2 7cc7 which the small business concern uses to meet an applicable increased minimum performance standard under clause 7i72 and 7dd7 that was or is received during the #e fiscal years immediately preceding the fiscal year in which the small business concern uses the sale to meet the increased minimum performance standard4 7iv7 ,covered period defined ,in this subparagraph1 the term covered period means a consecutive period of #aj fiscal years preceding the most recent #b fiscal years4 7,c7 ,patents for increased minimum performance standards ,a small business concern with respect to which an increased minimum performance standard under subparagraph 7,b7 applies may not meet the increased minimum performance standard by obtaining patents4 7,d7 ,effective date ,subparagraphs 7,a7 through 7,c7 shall take effect on ,april #a1 #bjbc4 7,e7 ,waiver 7i7 ,in general ,the ,administrator may1 upon the request of a senior official of a ,federal agency1 grant a waiver with respect to a topic for the ,,sbir or ,,sttr program of the ,federal agency if-- 7,i7 the topic is critical to the mission of the ,federal agency or relates to national security2 and 7,,ii7 the official submits to the ,administrator a request for the waiver in accordance with clause 7iii74 7ii7 ,waiver effects ,if the ,administration grants a waiver with respect to a topic for the ,,sbir or ,,sttr program of a ,federal agency1 subparagraphs 7,a77ii7 and 7,b77ii7 shall not prohibit any covered small business concern from receiving an ,,sbir or ,,sttr award under such topic4 7iii7 ,agency request and congressional notification ,not later than #ae days before the release of a solicitation including a topic for which a senior official of a ,federal agency is requesting a waiver under clause 7i71 the senior official shall submit to the ,administrator1 the ,committee on ,small ,business and the ,committee on ,science1 ,space1 and ,technology of the ,house of ,representatives1 and the ,committee on ,small ,business and ,entrepreneurship of the ,senate a request for the waiver4 7iv7 ,administrator determination and congressional notification ,not later than #ae days after receiving a request for a waiver under clause 7i71 the ,administrator shall make a determination with respect to the request and notify the senior official at the ,federal agency that made the request1 the ,committee on ,small ,business and the ,committee on ,science1 ,space1 and ,technology of the ,house of ,representatives1 and the ,committee on ,small ,business and ,entrepreneurship of the ,senate of the determination4 7v7 ,definitions ,in this subparagraph3 7,i7 ,covered small business concern ,the term covered small business concern means a small business concern that is subject to the consequences under subparagraph 7,a77ii7 or 7,b77ii7 pursuant to a determination by the head of a ,federal agency that such small business concern did not meet an increased minimum performance standard that was applicable to such small business concern4 7,,ii7 ,senior official ,the term senior official means an individual appointed to a position in a ,federal agency that is classified above ,,gs-#ae pursuant section #eajh of title #e1 ,united ,states ,code1 or any equivalent position1 as determined by the ,administrator4 7,f7 ,reporting 7i7 ,in general ,not later than ,july #a1 #bjbc1 and annually thereafter1 the ,administrator shall submit to ,congress a list of the small business concerns that did not meet-- 7,i7 an applicable minimum performance standard established under paragraph 7#a77;,a77ii7 or 7#b77;,a77ii72 or 7,,ii7 an applicable increased minimum performance standard4 7ii7 ,waivers ,each list submitted under clause 7i7 shall identify each small business concern that received an ,,sbir or ,,sttr award pursuant to a waiver granted under subparagraph 7,e7 by the ,administrator during the period covered by the list4 7iii7 ,confidentiality ,each list submitted under clause 7i7 shall be confidential and exempt from disclosure under section #eeb7;b77#c7 of title #e1 ,united ,states ,code 7commonly known as the ,freedom of ,information ,act74 7,g7 ,implementation ,not later than ,april #a1 #bjbc1 the ,administration shall implement the increased minimum performance standards under this paragraph4 7,h7 ,rules of construction ,nothing in this paragraph shall be construed-- 7i7 to prohibit a small business concern from participating in a ,phase ,i 7or ,phase ,,ii if under the authority of subsection 7cc77 of an ,,sbir or ,,sttr program under paragraph 7#a77;,b7 or 7#b77;,b7 solely on the basis of a determination by the head of a ,federal agency that the small business concern is not meeting an increased minimum performance standard2 or 7ii7 to prevent the head of a ,federal agency from implementing more restrictive limitations on the number of federally funded ,phase ,i awards and direct to ,phase ,,ii awards under subsection 7cc7 that may be awarded to a small business concern than the limitations described in subparagraphs 7,a77ii7 and 7,b77ii74 7,i7 ,termination ,this paragraph shall terminate on ,september #cj1 #bjbe4 2 7,c7 in paragraph 7#e71 as so redesignated1 by striking paragraph 7#c77;,a7 and inserting paragraph 7#d77;,a72 and 7,d7 by adding at the end the following3 7#f7 ,inspector general audit ,not later than #a year after the date on which the ,administrator implements the increased minimum performance standards under paragraph 7#c71 and periodically thereafter1 the ,inspector ,general of the ,administration shall-- 7,a7 conduct an audit on whether the small business concerns subject to increased minimum performance standards under paragraph 7#c77;,b7 verified-- 7i7 the sales by and investments in the small business concerns-- 7,i7 during the #e fiscal years immediately preceding the fiscal year in which the small business concern used such sales and investments to meet an applicable increased performance standard2 and 7,,ii7 as a direct result of a ,phase ,i award or ,phase ,,ii award made under subsection 7cc7 during the covered period 7as defined in paragraph 7#c77;,b77iv771 consistent with the definition of ,phase ,,iii1 as applicable2 7ii7 any third-party revenue the small business concerns list as investments or incomes to meet the increased minimum performance standard-- 7,i7 is a direct result of a ,phase ,i award or ,phase ,,ii award made under subsection 7cc7 during the covered period 7as defined in paragraph 7#c77;,b77iv772 and 7,,ii7 consistent with the requirements of the ,administrator as in effect on ,september #cj1 #bjbb1 or any successor requirements2 and 7iii7 any dollar amounts such small business concerns list as investments or income to meet such increased minimum performance standard the providence of which is unclear and that is not directly attributable to a ,phase ,i award or ,phase ,,ii award made under subsection 7cc7 during the covered period 7as defined in paragraph 7#c77;,b77iv771 consistent with the definition of ,phase ,,iii1 as applicable2 7,b7 assess the self-certification requirements for the minimum performance standards established under paragraph 7#b77;,a77ii7 and the increased minimum performance standards under paragraph 7#c77;,b72 and 7,c7 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 ,representatives a report on the audit conducted under subparagraph 7,a7 and the assessment conducted under subparagraph 7,b74 7#g7 ,increased minimum performance standard defined ,in this subsection1 the term increased minimum performance standard means a minimum performance standard established under paragraph 7#a77;,a77ii7 or 7#b77;,a77ii7 as modified under subparagraph 7,a7 or 7,b71 respectively1 of paragraph 7#c7 with respect to a small business concern4 4 #i4 ,prohibition against writing solicitation topics 7a7 ,in general ,section #i of the ,small ,business ,act 7#ae ,u4,s4,c4 #fch71 as amended by this ,act1 is further amended by adding at the end the following subsection3 7xx7 ,additional provisions relating to solicitation topics 7#a7 ,in general ,a ,federal agency required to establish an ,,sbir or ,,sttr program shall implement a multi-level review and approval process within the ,federal agency for solicitation topics to ensure adequate competition and that no private individual or entity is shaping the requirements for eligibility for the solicitation topic after the selection of the solicitation topic1 except that the ,federal agency may amend the requirements to clarify the solicitation topic4 7#b7 ,referral ,a ,federal agency that does not comply with paragraph 7#a7 shall be referred to the ,inspector ,general of the ,administration for further investigation4 4 #aj4 ,,gao study on multiple award winners ,not later than #ah months after the date of enactment of this ,act1 the ,comptroller ,general of the ,united ,states shall conduct a study and 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 ,representatives a report1 which shall be made publicly available1 on small business concerns that are awarded not less than #ej ,phase ,,ii awards under the ,,sbir or ,,sttr programs during the consecutive period of #aj fiscal years preceding the most recent #b fiscal years1 including1 to the extent practicable1 an analysis of-- 7#a7 the impact of the small business concerns on the ,,sbir and ,,sttr programs2 7#b7 the ratio of the number of ,phase ,,ii awards received by the small business concerns to the total number of ,phase ,,ii awards2 7#c7 the ability of the small business concerns to commercialize and meet the tenets of the ,,sbir and ,,sttr programs2 7#d7 the impact on new entrants and seeding technology necessary to the ,federal agency mission or commercial markets and1 with respect to the ,department of ,defense1 whether the types of technology the small business concerns are pursuing are primarily hardware1 software1 or system components for the warfighter2 7#e7 an evaluation and study of varying levels of award caps and lifetime program earning caps2 7#f7 an assessment of the increased minimum performance standards under paragraph 7#c7 of section #i7qq7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fch7qq771 as added by section #h1 on the behavior of those concerns and on the ,,sbir and ,,sttr programs1 and whether to continue such increased minimum performance standards2 and 7#g7 recommendations on whether alternative minimum performance standards under section #i7qq7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fch7qq77 should be considered1 and the extent to which such alternative minimum performance standards preserve the competitive1 merit-based foundation of the ,,sbir and ,,sttr programs4 #aa4 ,,gao report on subcontracting in ,,sbir and ,,sttr programs ,not later than #a year after the date of the enactment of this ,act1 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 and the ,committee on ,science1 ,space1 and ,technology of the ,house of ,representatives a report evaluating1 to the extent practicable1 the following3 7#a7 ,the extent to which ,,sbir awardees and ,,sttr awardees are in compliance with the ,federal ,funding ,accountability and ,transparency ,act 7#ca ,u4,s4,c4 #faja note74 7#b7 ,the extent to which ,,sbir awardees and ,,sttr awardees enter into subcontracting agreements with respect to an ,,sbir or ,,sttr award4 7#c7 ,the total number and dollar amount of subcontracts entered into between an ,,sbir awardee or an ,,sttr awardee and a concern that is not a small business concern 7including such concerns that are defense contractors7 with respect to an ,,sbir or ,,sttr award4 7#d7 ,a description of the type and purpose of subcontracting agreements described in paragraph 7#b74 7#e7 ,an analysis of whether the use of subcontracts by an ,,sbir awardee or an ,,sttr awardee is consistent with the purposes of section #i of the ,small ,business ,act 7#ae ,u4,s4,c4 #fch74