,,ii  #aag? ,,congress  #b;d ,session   
,s4 #dijj  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,septemb] #bj1         
#bjbb,mr4 ,c>d9 7= himself & ,ms4 ,ern/7
 introduc$ ! foll[+ bill2 :i* 0 read    
twice1 consid]$1 read ! ?ird "t1 & pass$
  ,a ,,bill  ,to reau?orize ! ,,sbir &  
,,/tr programs & pilot programs1 & = o!r
 purposes4  #a4 ,%ort title ,?is ,act   
may be cit$ z ! ,,sbir & ,,/tr ,ext5sion
 ,act ( #bjbb4  #b4 ,def9itions ,9 ?is  
,act3 7#a7 ,adm9i/ration2 ,adm9i/rator  
,! t]ms ,adm9i/ration & ,adm9i/rator    
mean ! ,small ,bus9ess ,adm9i/ration & !
 ,adm9i/rator !re(1 respectively4  7#b7 
,f$]al ag5cy2 ,phase ,i2 ,phase ,,ii2   
,phase ,,iii2 ,,sbir2 ,,/tr ,! t]ms     
,f$]al ag5cy1 ,phase ,i1 ,phase ,,ii1   
,phase ,,iii1 ,,sbir1 & ,,/tr h ! mean+s
 giv5 ^? t]ms1 respectively1 9 section  
#i7;e7 ( ! ,small ,bus9ess ,act 7#ae    
,u4,s4,c4 #fch7;e774  #c4               
,reau?orization ( ,,sbir & ,,/tr        
programs & pilot programs ,section #i ( 
! ,small ,bus9ess ,act 7#ae ,u4,s4,c4   

#fch7 is am5d$ by /rik+ #bjbb ea* place 
t t]m appe>s & ins]t+ #bjbe4  #d4 ,=eign
 risk managem5t  7a7 ,def9itions        
,section #i7;e7 ( ! ,small ,bus9ess ,act
 7#ae ,u4,s4,c4 #fch7;e77 is am5d$--    
7#a7 9 p>agraph 7#ac77;,b71 by /rik+ &  
at ! end2  7#b7 9 p>agraph 7#ad71 by    
/rik+ ! p]iod at ! end & ins]t+ a       
semicolon2 &  7#c7 by add+ at ! end !   
foll[+3  7#ae7 ! t]m cov]$ individual   
means an individual :o-- 7,a7           
contributes 9 a sub/antive1 mean+ful way
 to ! sci5tific developm5t or execution 
( a rese>* & developm5t project propos$ 
to be c>ri$ out ) a rese>* & developm5t 
aw>d f a ,f$]al rese>* ag5cy2 &  7,b7 is
 designat$ z a cov]$ individual by !    
,f$]al rese>* ag5cy conc]n$2  7#af7 !   
t]m =eign affiliation means a fund$ or  
unfund$ academic1 pr(essional1 or       
in/itutional appo9tm5t or position ) a  
=eign gov]nm5t or gov]nm5t-own$ entity1 
:e!r full-"t1 "p-"t1 or volunt>y        
7includ+ adjunct1 visit+1 or honor>y72  
7#ag7 ! t]m =eign c\ntry ( conc]n means 

! ,p's ,republic ( ,*9a1 ! ,democratic  
,p's ,republic ( ,korea1 ! ,russian     
,f$]ation1 ! ,islamic ,republic ( ,iran1
 or any o!r c\ntry det]m9$ to be a      
c\ntry ( conc]n by ! ,secret>y ( ,/ate2 
7#ah7 ! t]m malign =eign tal5t          
recruitm5t program has ! mean+ giv5 su* 
t]m 9 section #ajfch ( ! ,rese>* &      
,developm5t1 ,competition1 & ,innovation
 ,act 7division ,b ( ,public ,law       
#aag-afg72 &  7#ai7 ! t]m f$]ally fund$ 
aw>d means a ,phase ,i1 ,phase ,,ii     
7includ+ a ,phase ,,ii aw>d "u          
subsection 7cc771 or ,phase ,,iii ,,sbir
 or ,,/tr aw>d made us+ a fund+         
agreem5t4  4  7b7 ,due dilig5ce program 
to assess security risks  7#a7 ,9 g5]al 
,section #i ( ! ,small ,bus9ess ,act    
7#ae ,u4,s4,c4 #fch7 is am5d$ by add+ at
 ! end ! foll[+3  7vv7 ,due dilig5ce    
program to assess security risks  7#a7  
,e/abli%m5t ,! head ( ea* ,f$]al ag5cy  
requir$ to e/abli% an ,,sbir or ,,/tr   
program1 9 coord9ation ) ! ,adm9i/rator1
 %all e/abli% & implem5t a due dilig5ce 

program to assess security risks pres5t$
 by small bus9ess conc]ns seek+ a       
f$]ally fund$ aw>d4  7#b7 ,risks ,ea*   
program e/abli%$ "u p>agraph 7#a7 %all--
 7,a7 assess1 us+ a risk-bas$ approa* z 
appropriate1 ! cyb]security practices1  
pat5t analysis1 employee analysis1 &    
=eign own]%ip ( a small bus9ess conc]n  
seek+ an aw>d1 includ+ ! f9ancial ties &
 obligations 7:i* %all include surety1  
equity1 & debt obligations7 ( ! small   
bus9ess conc]n & employees ( ! small    
bus9ess conc]n to a =eign c\ntry1 =eign 
p]son1 or =eign entity2 &  7,b7 assess  
aw>ds & proposals or applications1 z    
applicable1 us+ a risk-bas$ approa* z   
appropriate1 includ+ ?r\gh ! use (      
op5-s\rce analysis & analytical tools1 =
 ! nondisclosures ( in=mation requir$ "u
 7g77#ac74  7#c7 ,adm9i/rative co/s     
7,a7 ,9 g5]al ,9 addition to ! am\nt    
allocat$ "u subsection 7mm77#a71 ea*    
,f$]al ag5cy requir$ to e/abli% an      
,,sbir program may allocate n m ?an #b  
p]c5t ( ! funds allocat$ to ! ,,sbir    

program ( ! ,f$]al ag5cy = ! co/ (      
e/abli%+ ! due dilig5ce program requir$ 
"u ?is subsection4  7,b7 ,report+  7i7  
,9 g5]al ,n lat] ?an ,decemb] #ca ( !   
ye> 9 :i* ?is subp>agraph is enact$1 & n
 lat] ?an ,decemb] #ca ( ea* ye>        
!reaft]1 ! head ( a ,f$]al ag5cy t      
ex]cises ! au?ority "u subp>agraph 7,a7 
%all submit to ! ,committee on ,small   
,bus9ess & ! ,committee on ,sci5ce1     
,space1 & ,te*nology ( ! ,h\se (        
,repres5tatives1 ! ,committee on ,small 
,bus9ess & ,entrepr5eur%ip ( ! ,s5ate1 &
 ! ,adm9i/rator1 = ! cov]$ ye>-- 7,i7 ! 
total funds all[$ to be allocat$ = ! co/
 ( e/abli%+ ! due dilig5ce program      
requir$ "u ?is subsection2  7,,ii7 !    
total am\nt ( funds obligat$ or exp5d$  
"u subp>agraph 7,a72 &  7,,iii7 ! due   
dilig5ce activities c>ri$ out or to be  
c>ri$ out us+ am\nts allocat$ "u        
subp>agraph 7,a74  7ii7 ,annual report  
inclusion ,! ,adm9i/rator %all include !
 in=mation submitt$ by head ( a ,f$]al  
ag5cy "u clause 7i7 9 ! next annual     

report submitt$ "u subsection 7b77#g7   
aft] ! ,adm9i/rator receives su*        
in=mation4  7iii7 ,cov]$ ye> ,9 ?is     
subp>agraph1 ! t]m cov]$ ye> means1 )   
respect to ! in=mation requir$ "u clause
 7i71 ! ye> cov]$ by ! annual report    
submitt$ "u subsection 7b77#g7 9 :i* !  
,adm9i/rator is requir$ to include su*  
in=mation by clause 7ii74  7,c7         
,t]m9ation date ,?is p>agraph %all      
t]m9ate on ,septemb] #cj1 #bjbe4  4     
7#b7 ,implem5tation  7,a7 ,9 g5]al ,n   
lat] ?an #bgj days aft] ! date (        
enactm5t ( ?is ,act1 ! head ( a ,f$]al  
ag5cy requir$ to e/abli% an ,,sbir or   
,,/tr program %all implem5t a due       
dilig5ce program "u subsection 7vv7 (   
section #i ( ! ,small ,bus9ess ,act 7#ae
 ,u4,s4,c4 #fch71 z add$ by p>agraph    
7#a71 at ! ,f$]al ag5cy t1 to ! ext5t   
practicable1 incorporates ! applicable  
be/ practices dissem9at$ "u p>agraph    
7#c74  7,b7 ,pap]work ,r$uction ,act    
,*apt] #ce ( title #dd1 ,unit$ ,/ates   
,code 7commonly kn[n z ! ,pap]work      

,r$uction ,act71 %all n apply to !      
implem5tation ( a due dilig5ce program  
"u subsection 7vv7 ( section #i ( !     
,small ,bus9ess ,act 7#ae ,u4,s4,c4     
#fch71 z add$ by p>agraph 7#a74  7,c7   
,brief+ ,n lat] ?an #cj days aft] ! date
 ( enactm5t ( ?is ,act1 & on a recurr+  
basis until implem5tation is complete1  
ea* ,f$]al ag5cy requir$ to e/abli% a   
due dilig5ce program "u subsection 7vv7 
( section #i ( ! ,small ,bus9ess ,act   
7#ae ,u4,s4,c4 #fch71 z add$ by p>agraph
 7#a71 %all brief ! ,committee on ,small
 ,bus9ess & ,entrepr5eur%ip ( ! ,s5ate &
 ! ,committee on ,small ,bus9ess & !    
,committee on ,sci5ce1 ,space1 &        
,te*nology ( ! ,h\se ( ,repres5tatives  
on ! implem5tation ( ! due dilig5ce     
program4  7#c7 ,be/ practices ,n lat]   
?an #ahj days aft] ! date ( enactm5t (  
?is ,act1 ! ,adm9i/rator %all-- 7,a7 9  
coord9ation ) ! ,director ( ! ,(fice (  
,sci5ce & ,te*nology ,policy & 9        
consultation ) ! ,committee on ,=eign   
,inve/m5t 9 ! ,unit$ ,/ates1 dissem9ate 

among ,f$]al ag5cies requir$ to e/abli% 
an ,,sbir or ,,/tr program be/ practices
 ( ^? ,f$]al ag5cies = due dilig5ce     
programs requir$ "u subsection 7vv7 (   
section #i ( ! ,small ,bus9ess ,act 7#ae
 ,u4,s4,c4 #fch71 z add$ by p>agraph    
7#a72 &  7,b7 9 consultation ) !        
,committee on ,=eign ,inve/m5t 9 !      
,unit$ ,/ates1 provide to ,f$]al ag5cies
 describ$ 9 subp>agraph 7,a7 guidance on
 ! bus9ess relation%ips requir$ to be   
disclos$ "u p>agraph 7#ac77;,g7 (       
subsection 7g7 & p>agraph 7#ag77;,g7 (  
subsection 7o7 ( section #i ( ! ,small  
,bus9ess ,act 7#ae ,u4,s4,c4 #fch71 z   
add$ by ?is ,act4  7#d7 ,,gao /udy ,n   
lat] ?an #a ye> aft] ! date ( enactm5t (
 ?is ,act1 & annually !reaft] = #c ye>s1
 ! ,comptroll] ,g5]al ( ! ,unit$ ,/ates 
%all conduct a /udy & submit to !       
,committee on ,small ,bus9ess &         
,entrepr5eur%ip & ! ,committee on ,arm$ 
,s]vices ( ! ,s5ate & ! ,committee on   
,small ,bus9ess1 ! ,committee on ,arm$  
,s]vices1 & ! ,committee on ,sci5ce1    

,space1 & ,te*nology ( ! ,h\se (        
,repres5tatives a report on !           
implem5tation & be/ practices ( due     
dilig5ce programs e/abli%$ "u subsection
 7vv7 ( section #i ( ! ,small ,bus9ess  
,act 7#ae ,u4,s4,c4 #fch71 z add$ by    
p>agraph 7#a71 across ,f$]al ag5cies    
requir$ to e/abli% an ,,sbir or ,,/tr   
program4  7#e7 ,rule ( con/ruction ,no?+
 9 subsection 7vv7 ( section #i ( !     
,small ,bus9ess ,act 7#ae ,u4,s4,c4     
#fch71 z add$ by p>agraph 7#a71 %all be 
con/ru$ to-- 7,a7 apply to any ,f$]al   
ag5cy ) a due dilig5ce program t applies
 to ! ,,sbir or ,,/tr programs requir$  
"u subsection 7vv7 ( section #i ( !     
,small ,bus9ess ,act 7#ae ,u4,s4,c4     
#fch71 z add$ by p>agraph 7#a71 9       
exi/5ce z ( ! date ( enactm5t ( ?is     
,act2 or  7,b7 re/rict any ,f$]al ag5cy 
f tak+ due dilig5ce measures 9 addition 
to ^? requir$ "u su* subsection 7vv7 at 
! ,f$]al ag5cy4  7c7 ,disclosures reg>d+
 ties to ,p's ,republic ( ,*9a & o!r    
=eign c\ntries  7#a7 ,,sbir ,section    

#i7;g7 ( ! ,small ,bus9ess ,act 7#ae    
,u4,s4,c4 #fch7;g77 is am5d$-- 7,a7 9   
p>agraph 7#aa71 by /rik+ & at ! end2    
7,b7 9 p>agraph 7#ab71 by /rik+ ! p]iod 
at ! end & ins]t+ a semicolon2 &  7,c7  
by add+ at ! end ! foll[+3  7#ac7       
require ea* small bus9ess conc]n        
submitt+ a proposal or application = a  
f$]ally fund$ aw>d to disclose 9 !      
proposal or application-- 7,a7 ! id5tity
 ( all own]s & cov]$ individuals ( !    
small bus9ess conc]n :o are a p>ty to   
any =eign tal5t recruitm5t program ( any
 =eign c\ntry ( conc]n1 includ+ ! ,p's  
,republic ( ,*9a2  7,b7 ! exi/5ce ( any 
jo9t v5ture or subsidi>y ( ! small      
bus9ess conc]n t is bas$ 91 fund$ by1 or
 has a =eign affiliation ) any =eign    
c\ntry ( conc]n1 includ+ ! ,p's         
,republic ( ,*9a2  7,c7 any curr5t or   
p5d+ contractual or f9ancial obligation 
or o!r agreem5t specific to a bus9ess   
arrangem5t1 or jo9t v5ture-l arrangem5t 
) an ent]prise own$ by a =eign /ate or  
any =eign entity2  7,d7 :e!r ! small    

bus9ess conc]n is :olly own$ 9 ! ,p's   
,republic ( ,*9a or ano!r =eign c\ntry (
 conc]n2  7,e7 ! p]c5tage1 if any1 (    
v5ture capital or in/itutional inve/m5t 
by an entity t has a g5]al p>tn] or     
individual hold+ a lead]%ip role 9 su*  
entity :o has a =eign affiliation ) any 
=eign c\ntry ( conc]n1 includ+ ! ,p's   
,republic ( ,*9a2  7,f7 any te*nology   
lic5s+ or intellectual prop]ty sales to 
a =eign c\ntry ( conc]n1 includ+ ! ,p's 
,republic ( ,*9a1 dur+ ! #e-ye> p]iod   
prec$+ submission ( ! proposal2 &  7,g7 
any =eign bus9ess entity1 (f%ore entity1
 or entity outside ! ,unit$ ,/ates      
relat$ to ! small bus9ess conc]n2  7#ad7
 aft] review+ ! disclosures ( a small   
bus9ess conc]n "u p>agraph 7#ac71 & if  
det]m9$ appropriate by ! head ( su*     
,f$]al ag5cy1 reque/ su* small bus9ess  
conc]n to provide true copies ( any     
contractual or f9ancial obligation or   
o!r agreem5t specific to a bus9ess      
arrangem5t1 or jo9t-v5ture l arrangem5t 
) an ent]prise own$ by a =eign /ate or  

any =eign entity 9 effect dur+ ! #e-ye> 
p]iod prec$+ submission ( ! proposal )  
respect to :i* su* small bus9ess conc]n 
made su* disclosures2  4  7#b7 ,,/tr    
,section #i7o7 ( ! ,small ,bus9ess ,act 
7#ae ,u4,s4,c4 #fch7o77 is am5d$-- 7,a7 
9 p>agraph 7#ae71 by /rik+ & at ! end2  
7,b7 9 p>agraph 7#af71 by /rik+ ! p]iod 
at ! end & ins]t+ a semicolon2 &  7,c7  
by add+ at ! end ! foll[+3  7#ag7       
require ea* small bus9ess conc]n        
submitt+ a proposal or application = a  
f$]ally fund$ aw>d to disclose 9 !      
proposal or application-- 7,a7 ! id5tity
 ( all own]s & cov]$ individuals ( !    
small bus9ess conc]n :o are a p>ty to   
any =eign tal5t recruitm5t program ( any
 =eign c\ntry ( conc]n1 includ+ ! ,p's  
,republic ( ,*9a2  7,b7 ! exi/5ce ( any 
jo9t v5ture or subsidi>y ( ! small      
bus9ess conc]n t is bas$ 91 fund$ by1 or
 has a =eign affiliation ) any =eign    
c\ntry ( conc]n1 includ+ ! ,p's         
,republic ( ,*9a2  7,c7 any curr5t or   
p5d+ contractual or f9ancial obligation 

or o!r agreem5t specific to a bus9ess   
arrangem5t1 or jo9t v5ture-l arrangem5t 
) an ent]prise own$ by a =eign /ate or  
any =eign entity2  7,d7 :e!r ! small    
bus9ess conc]n is :olly own$ 9 ! ,p's   
,republic ( ,*9a or ano!r =eign c\ntry2 
7,e7 ! p]c5tage1 if any1 ( v5ture       
capital or in/itutional inve/m5t by an  
entity t has a g5]al p>tn] or individual
 hold+ a lead]%ip role 9 su* entity :o  
has a =eign affiliation ) any =eign     
c\ntry ( conc]n1 includ+ ! ,p's         
,republic ( ,*9a2  7,f7 any te*nology   
lic5s+ or intellectual prop]ty sales to 
a =eign c\ntry ( conc]n1 includ+ ! ,p's 
,republic ( ,*9a1 dur+ ! #e-ye> p]iod   
prec$+ submission ( ! proposal2 &  7,g7 
any =eign bus9ess entity1 (f%ore entity1
 or entity outside ! ,unit$ ,/ates      
relat$ to ! small bus9ess conc]n2  7#ah7
 aft] review+ ! disclosures ( a small   
bus9ess conc]n "u p>agraph 7#ag71 & if  
det]m9$ appropriate by ! head ( su*     
,f$]al ag5cy1 reque/ su* small bus9ess  
conc]n to provide true copies ( any     

contractual or f9ancial obligation or   
o!r agreem5t specific to a bus9ess      
arrangem5t1 or jo9t-v5ture l arrangem5t 
) an ent]prise own$ by a =eign /ate or  
any =eign entity 9 effect dur+ ! #e-ye> 
p]iod prec$+ submission ( ! proposal )  
respect to :i* su* small bus9ess conc]n 
made su* disclosures2  4  7d7 ,d5ial (  
aw>ds  7#a7 ,,sbir ,section #i7;g7 ( !  
,small ,bus9ess ,act 7#ae ,u4,s4,c4     
#fch7;g771 z am5d$ by subsection        
7c77#a71 is fur!r am5d$ by add+ at ! end
 ! foll[+3  7#ae7 n make an aw>d "u !   
,,sbir program ( ! ,f$]al ag5cy to a    
small bus9ess conc]n if ! head ( !      
,f$]al ag5cy det]m9es t-- 7,a7 ! small  
bus9ess conc]n submitt+ ! proposal or   
application-- 7i7 has an own] or cov]$  
individual t is p>ty to a malign =eign  
tal5t recruitm5t program2  7ii7 has a   
bus9ess entity1 p>5t company1 or        
subsidi>y locat$ 9 ! ,p's ,republic (   
,*9a or ano!r =eign c\ntry ( conc]n2 or 
7iii7 has an own] or cov]$ individual t 
has a =eign affiliation ) a rese>*      

in/itution locat$ 9 ! ,p's ,republic (  
,*9a or ano!r =eign c\ntry ( conc]n2 &  
7,b7 ! relation%ips & commitm5ts        
describ$ 9 clauses 7i7 ?r\gh 7iii7 (    
subp>agraph 7,a7-- 7i7 int]f]e ) !      
capacity = activities support$ by !     
,f$]al ag5cy to be c>ri$ out2  7ii7     
create duplication ) activities support$
 by ! ,f$]al ag5cy2  7iii7 pres5t       
conc]ns ab\t conflicts ( int]e/2  7iv7 7
 n appropriately disclos$ to ! ,f$]al   
ag5cy2  7v7 violate ,f$]al law or t]ms &
 conditions ( ! ,f$]al ag5cy2 or  7vi7  
pose a risk to national security2  4    
7#b7 ,,/tr ,section #i7o7 ( ! ,small    
,bus9ess ,act 7#ae ,u4,s4,c4 #fch7o771 z
 am5d$ by subsection 7c77#b71 is fur!r  
am5d$ by add+ at ! end ! foll[+3  7#ai7 
n make an aw>d "u ! ,,/tr program ( !   
,f$]al ag5cy to a small bus9ess conc]n  
if ! head ( ! ,f$]al ag5cy det]m9es t-- 
7,a7 ! small bus9ess conc]n submitt+ !  
proposal or application-- 7i7 has an    
own] or cov]$ individual t is p>ty to a 
malign =eign tal5t recruitm5t program2  

7ii7 has a bus9ess entity1 p>5t company1
 or subsidi>y locat$ 9 ! ,p's ,republic 
( ,*9a or ano!r =eign c\ntry ( conc]n2  
or  7iii7 has an own] or cov]$          
individual t has a =eign affiliation ) a
 rese>* in/itution locat$ 9 ! ,p's      
,republic ( ,*9a or ano!r =eign c\ntry (
 conc]n2 &  7,b7 ! relation%ips &       
commitm5ts describ$ 9 clauses 7i7 ?r\gh 
7iii7 ( subp>agraph 7,a7-- 7i7 int]f]e )
 ! capacity = activities support$ by !  
,f$]al ag5cy to be c>ri$ out2  7ii7     
create duplication ) activities support$
 by ! ,f$]al ag5cy2  7iii7 pres5t       
conc]ns ab\t conflicts ( int]e/2  7iv7 7
 n appropriately disclos$ to ! ,f$]al   
ag5cy2  7v7 violate ,f$]al law or t]ms &
 conditions ( ! ,f$]al ag5cy2 or  7vi7  
pose a risk to national security2  4    
#e4 ,ag5cy recov]y au?ority & ongo+     
report+  7a7 ,,sbir ,section #i7;g7 ( ! 
,small ,bus9ess ,act 7#ae ,u4,s4,c4     
#fch7;g771 z am5d$ by section           
#d7;d77#a71 is fur!r am5d$ by add+ at ! 
end ! foll[+3  7#af7 require a small    

bus9ess conc]n receiv+ an aw>d "u its   
,,sbir program to repay all am\nts      
receiv$ f ! ,f$]al ag5cy "u ! aw>d if-- 
7,a7 ! small bus9ess conc]n makes a     
mat]ial mis/atem5t t ! ,f$]al ag5cy     
det]m9es poses a risk to national       
security2 or  7,b7 !re is a *ange 9     
own]%ip1 *ange to entity /ructure1 or   
o!r sub/antial *ange 9 circum/ances ( ! 
small bus9ess conc]n t ! ,f$]al ag5cy   
det]m9es poses a risk to national       
security2 &  7#ag7 require a small      
bus9ess conc]n receiv+ an aw>d "u its   
,,sbir program to regul>ly report to !  
,f$]al ag5cy & ! ,adm9i/ration ?r\gh\t !
 duration ( ! aw>d on-- 7,a7 any *ange  
to a disclosure requir$ "u subp>agraphs 
7,a7 ?r\gh 7,g7 ( p>agraph 7#ac72  7,b7 
any mat]ial mis/atem5t made "u p>agraph 
7#af77;,a72 &  7,c7 any *ange describ$ 9
 p>agraph 7#af77;,b74  4  7b7 ,,/tr     
,section #i7o7 ( ! ,small ,bus9ess ,act 
7#ae ,u4,s4,c4 #fch7o771 z am5d$ by     
section #d7;d77#a71 is fur!r am5d$ by   
add+ at ! end ! foll[+3  7#bj7 require a

 small bus9ess conc]n receiv+ an aw>d "u
 its ,,/tr program to repay all am\nts  
receiv$ f ! ,f$]al ag5cy "u ! aw>d if-- 
7,a7 ! small bus9ess conc]n makes a     
mat]ial mis/atem5t t ! ,f$]al ag5cy     
det]m9es poses a risk to national       
security2 or  7,b7 !re is a *ange 9     
own]%ip1 *ange to entity /ructure1 or   
o!r sub/antial *ange 9 circum/ances ( ! 
small bus9ess conc]n t ! ,f$]al ag5cy   
det]m9es poses a risk to national       
security2 &  7#ba7 require a small      
bus9ess conc]n receiv+ an aw>d "u its   
,,/tr program to regul>ly report to !   
,f$]al ag5cy & ! ,adm9i/ration ?r\gh\t !
 duration ( ! aw>d on-- 7,a7 any *ange  
to a disclosure requir$ "u subp>agraphs 
7,a7 ?r\gh 7,g7 ( p>agraph 7#ag72  7,b7 
any mat]ial mis/atem5t made "u p>agraph 
7#bj77;,a72 &  7,c7 any *ange describ$ 9
 p>agraph 7#bj77;,b74  4  7c7 ,pap]work 
,r$uction ,act ,*apt] #ce ( title #dd1  
,unit$ ,/ates ,code 7commonly kn[n z !  
,pap]work ,r$uction ,act71 %all n apply 
to ! implem5tation ( p>agraphs 7#af7 &  

7#ag7 ( subsection 7g7 or p>agraphs     
7#bj7 & 7#ba7 ( subsection 7o7 ( section
 #i ( ! ,small ,bus9ess ,act 7#ae       
,u4,s4,c4 #fch71 z add$ by subsections  
7a7 & 7b74  #f4 ,report on adv]s>ial    
milit>y & =eign influ5ce 9 ! ,,sbir &   
,,/tr programs  7a7 ,cov]$ ag5cy def9$  
,9 ?is section1 ! t]m cov]$ ag5cy       
means-- 7#a7 ! ,dep>tm5t ( ,def5se2     
7#b7 ! ,dep>tm5t ( ,en]gy2  7#c7 !      
,dep>tm5t ( ,heal? & ,human ,s]vices2 or
  7#d7 ! ,national ,sci5ce ,f\ndation4  
7b7 ,requirem5t  7#a7 ,9 g5]al ,except z
 provid$ 9 p>agraph 7#b71 n lat] ?an    
#ahj days aft] ! date ( enactm5t ( ?is  
,act1 ! head ( ea* cov]$ ag5cy %all     
submit a report assess+ ! adv]s>ial     
milit>y & =eign influ5ces 9 ! ,,sbir &  
,,/tr programs at ! cov]$ ag5cy to--    
7,a7 ! ,committee on ,arm$ ,s]vices1 !  
,committee on ,small ,bus9ess &         
,entrepr5eur%ip1 & ! ,committee on      
,comm]ce1 ,sci5ce1 & ,transportation ( !
 ,s5ate2 &  7,b7 ! ,committee on ,arm$  
,s]vices1 ! ,committee on ,small        

,bus9ess1 & ! ,committee on ,sci5ce1    
,space1 & ,te*nology ( ! ,h\se (        
,repres5tatives4  7#b7 ,dep>tm5t (      
,heal? & ,human ,s]vices ,! ,secret>y ( 
,heal? & ,human ,s]vices %all submit #b 
reports "u p>agraph 7#a7-- 7,a7 #a      
assess+ ! adv]s>ial milit>y & =eign     
influ5ces 9 ! ,,sbir & ,,/tr programs ( 
! ,national ,in/itutes ( ,heal?2 &  7,b7
 #a assess+ ! adv]s>ial milit>y & =eign 
influ5ces 9 ! ,,sbir & ,,/tr programs ( 
! ,dep>tm5t ( ,heal? & ,human ,s]vices  
o!r ?an ^? ( ! ,national ,in/itutes (   
,heal?4  7c7 ,cont5ts ,ea* report       
submitt$ by a cov]$ ag5cy "u subsection 
7b7 %all include an analysis (-- 7#a7 ! 
national security & rese>* & integrity  
risks ( ! ,,sbir & ,,/tr programs ( !   
cov]$ ag5cy2 &  7#b7 ! capability ( su* 
cov]$ ag5cy to id5tify & mitigate su*   
risks4  7d7 ,=m ,ea* report submitt$ "u 
subsection 7b7 %all be 9 unclassifi$ =m1
 b may include a classifi$ annex4  7e7  
,indep5d5t entity contract+ ,! head (   
ea* cov]$ ag5cy1 9 coord9ation ) ! heads

 ( o!r ,f$]al ag5cies1 z appropriate1   
may ent] into a contract ) an indep5d5t 
entity to prep>e a report requir$ "u    
subsection 7b74  #g4 ,program on        
innovation op5 topics  7a7 ,9 g5]al     
,section #i ( ! ,small ,bus9ess ,act    
7#ae ,u4,s4,c4 #fch71 z am5d$ by ?is    
,act1 is fur!r am5d$-- 7#a7 9 subsection
 7b77#g7-- 7,a7 9 subp>agraph 7,g71 by  
/rik+ & at ! end2 &  7,b7 by add+ at !  
end ! foll[+3  7,i7 ! numb] (           
applications submitt$ to ea* ,f$]al     
ag5cy p>ticipat+ 9 ! ,,sbir or ,,/tr    
program 9 innovation op5 topics z comp>$
 to conv5tional topics1 & h[ _m small   
bus9ess conc]ns receive fund+ f op5     
topics comp>$ to conv5tional topics2    
7,j7 ! total numb] & doll> am\nt1 &     
av]age size1 ( aw>ds made by ea* ,f$]al 
ag5cy p>ticipat+ 9 ! ,,sbir or ,,/tr    
program1 by phase1 f-- 7i7 op5 topics2 &
  7ii7 conv5tional topics2  2 &  7#b7 by
 add+ at ! end ! foll[+3  7ww7 ,program 
on innovation op5 topics  7#a7          
,e/abli%m5t ,n lat] ?an #ahj days aft] !

 date ( enactm5t ( ?is subsection1 !    
,secret>y ( ,def5se %all e/abli%        
innovation op5 topic activities us+ !   
,,sbir & ,,/tr programs ( ! ,dep>tm5t ( 
,def5se 9 ord] to-- 7,a7 increase !     
transition ( comm]cial te*nology to !   
,dep>tm5t ( ,def5se2  7,b7 exp& ! small 
bus9ess nontraditional indu/rial base2  
7,c7 increase comm]cialization d]iv$ f  
inve/m5ts ( ! ,dep>tm5t ( ,def5se2 &    
7,d7 exp& ! ability = qualify+ small    
bus9ess conc]ns to propose te*nology    
solutions to meet ! ne$s ( ! ,dep>tm5t (
 ,def5se4  7#b7 ,frequ5cy ,! ,secret>y (
 ,def5se %all conduct n less ?an #a op5 
topic ann\ncem5t at ea* compon5t ( !    
,dep>tm5t ( ,def5se p] fiscal ye>4  7#c7
 ,brief+ ,n lat] ?an #ahj days aft] !   
date ( enactm5t ( ?is subsection1 !     
,secret>y ( ,def5se %all provide a      
brief+ on ! e/abli%m5t ( ! program      
requir$ "u p>agraph 7#a7 to-- 7,a7 !    
,committee on ,arm$ ,s]vices & !        
,committee on ,small ,bus9ess &         
,entrepr5eur%ip ( ! ,s5ate2 &  7,b7 !   

,committee on ,small ,bus9ess1 !        
,committee on ,arm$ ,s]vices1 & !       
,committee on ,sci5ce1 ,space1 &        
,te*nology ( ! ,h\se ( ,repres5tatives4 
4  7b7 ,,gao report ,n lat] ?an #a ye>  
aft] ! date ( enactm5t ( ?is ,act1 &    
annually !reaft] = #c ye>s1 !           
,comptroll] ,g5]al ( ! ,unit$ ,/ates    
%all submit to ,congress & issue a      
publicly available report comp>+ op5    
topics & conv5tional topics "u ! ,,sbir 
& ,,/tr programs t includes1 to ! ext5t 
practicable-- 7#a7 an assessm5t ( !     
p]c5tage ( small bus9ess conc]ns t      
progress f ,phase ,i to ,phase ,,ii     
aw>ds1 !n to ,phase ,,iii aw>ds2  7#b7 !
 numb] ( aw>ds "u ! ,,sbir & ,,/tr      
programs made to fir/-"t applicants &   
fir/-"t aw>dees2  7#c7 ! numb] ( aw>ds  
"u ! ,,sbir & ,,/tr programs made to    
non-traditional small bus9ess conc]ns1  
includ+ ^? own$ by wom51 m9orities1 &   
vet]ans2  7#d7 a description ( outrea* &
 assi/ance ef=ts by ! ,dep>tm5t (       
,def5se to enc\rage & prep>e new &      

div]se small bus9ess conc]ns to         
p>ticipate 9 ! program e/abli%$ "u      
subsection 7ww7 ( section #i ( ! ,small 
,bus9ess ,act 7#ae ,u4,s4,c4 #fch71 z   
add$ by subsection 7a72  7#e7 ! l5g? (  
"t to review & disburse aw>ds "u su*    
subsection 7ww71 evaluat$ 9 a mann]     
enabl+ normaliz$ comp>isons ( su* times 
tak5 by ea* ,f$]al ag5cy t is requir$ to
 e/abli% an ,,sbir or ,,/tr program &   
(f]s op5 topics2  7#f7 ! ratio1 & an    
assessm5t1 ( ! am\nt ( fund+ allocat$   
t[>ds op5 topics z comp>$ to conv5tional
 topics at ea* ,f$]al ag5cy t is requir$
 to e/abli% an ,,sbir or ,,/tr program &
 (f]s op5 topics2 &  7#g7 a comp>ison ( 
! types ( te*nology & end us]s fund$ "u 
op5 topics comp>$ to ! types ( te*nology
 & end us]s fund$ "u conv5tional topics4
  #h4 ,increas$ m9imum p]=mance /&>ds = 
exp]i5c$ firms ,section #i ( ! ,small   
,bus9ess ,act 7#ae ,u4,s4,c4 #fch71 z   
am5d$ by ?is ,act1 is fur!r am5d$-- 7#a7
 9 subsection 7b77#g71 by add+ at ! end 
! foll[+3  7,k7 ! m9imum p]=mance /&>ds 

e/abli%$ "u subsection 7qq71 includ+ any
 applicable modifications "u p>agraph   
7#c7 ( su* subsection1 & ! numb] ( small
 bus9ess conc]ns t did n meet ^? m9imum 
p]=mance /&>ds1 provid$ t ! ,adm9i/rator
 does n publi% any p]sonally id5tifiable
 in=mation1 ! id5tity ( ea* su* small   
bus9ess conc]n1 or any o!rwise s5sitive 
in=mation2 &  7,l7 ! aggregate numb] &  
doll> am\nt ( ,,sbir & ,,/tr aw>ds made 
pursuant to waiv]s "u subsection        
7qq77#c77;,e71 provid$ t ! ,adm9i/rator 
does n publi% any p]sonally id5tifiable 
in=mation1 ! id5tity ( ea* su* small    
bus9ess conc]n1 or any o!rwise s5sitive 
in=mation2  2 &  7#b7 9 subsection      
7qq7-- 7,a7 by r$esignat+ p>agraphs 7#c7
 & 7#d7 z p>agraphs 7#d7 & 7#e71        
respectively2  7,b7 by ins]t+ aft]      
p>agraph 7#b7 ! foll[+3  7#c7 ,increas$ 
m9imum p]=mance /&>ds = exp]i5c$ firms  
7,a7 ,progress to ,phase ,,ii success   
7i7 ,9 g5]al ,) respect to a small      
bus9ess conc]n t receiv$ or receives m  
?an #ej ,phase ,i aw>ds dur+ a cov]$    

p]iod1 ea* m9imum p]=mance /&>d e/abli%$
 "u p>agraph 7#a77;,a77ii7 %all be d\bl$
 = su* cov]$ p]iod4  7ii7 ,consequ5ce ( 
failure to meet /&>d ,if ! head ( a     
,f$]al ag5cy det]m9es t a small bus9ess 
conc]n t receiv$ a ,phase ,i aw>d f !   
,f$]al ag5cy is n meet+ an applicable   
increas$ m9imum p]=mance /&>d modifi$ "u
 clause 7i71 ! small bus9ess conc]n may 
n receive m ?an #bj total ,phase ,i     
aw>ds & ,phase ,,ii aw>ds "u subsection 
7cc7 f ea* ,f$]al ag5cy dur+ ! #a-ye>   
p]iod beg9n+ on ! date on :i* su*       
det]m9ation is made4  7iii7 ,cov]$ p]iod
 def9$ ,9 ?is subp>agraph1 ! t]m cov]$  
p]iod means a consecutive p]iod ( #e    
fiscal ye>s prec$+ ! mo/ rec5t fiscal   
ye>4  7,b7 ,progress to ,phase ,,iii    
success  7i7 ,9 g5]al ,ea* m9imum       
p]=mance /&>d e/abli%$ "u p>agraph      
7#b77;,a77ii7 %all-- 7,i7 ) respect to a
 small bus9ess conc]n t receiv$ or      
receives m ?an #ej ,phase ,,ii aw>ds    
dur+ a cov]$ p]iod1 require an av]age ( 
#bej1jjj ( aggregate sales & inve/m5ts  

p] ,phase ,,ii aw>d receiv$ dur+ su*    
cov]$ p]iod2 &  7,,ii7 ) respect to a   
small bus9ess conc]n t receiv$ or       
receives m ?an #ajj ,phase ,,ii aw>ds   
dur+ a cov]$ p]iod1 require an av]age ( 
#dej1jjj ( aggregate sales & inve/m5ts  
p] ,phase ,,ii aw>d receiv$ dur+ su*    
cov]$ p]iod4  7ii7 ,consequ5ce ( failure
 to meet /&>d ,if ! head ( a ,f$]al     
ag5cy det]m9es t a small bus9ess conc]n 
t receiv$ a ,phase ,i aw>d f ! ag5cy is 
n meet+ an applicable increas$ m9imum   
p]=mance /&>d modifi$ "u clause 7i71 !  
small bus9ess conc]n may n receive m ?an
 #bj total ,phase ,i aw>ds & ,phase ,,ii
 aw>ds "u subsection 7cc7 f ea* ag5cy   
dur+ ! #a-ye> p]iod beg9n+ on ! date on 
:i* su* det]m9ation is made4  7iii7     
,docum5tation  7,i7 ,9 g5]al ,a small   
bus9ess conc]n t is subject to an       
increas$ m9imum p]=mance /&>d describ$ 9
 clause 7i7 %all submit to !            
,adm9i/rator support+ docum5tation      
evid5c+ t all cov]$ sales ( ! small     
bus9ess conc]n 7 prop]ly us$ to meet !  

increas$ m9imum p]=mance /&>d4  7,,ii7  
,cov]$ sale def9$ ,9 ?is clause1 ! t]m  
cov]$ sale means a sale by a small      
bus9ess conc]n-- 7aa7 t ! small bus9ess 
conc]n claims to be attributable to an  
,,sbir or ,,/tr aw>d2  7bb7 = :i* no    
am\nt ( ! paym5t 0 or is made us+ ,f$]al
 funds2  7cc7 :i* ! small bus9ess conc]n
 uses to meet an applicable increas$    
m9imum p]=mance /&>d "u clause 7i72 &   
7dd7 t 0 or is receiv$ dur+ ! #e fiscal 
ye>s imm$iately prec$+ ! fiscal ye> 9   
:i* ! small bus9ess conc]n uses ! sale  
to meet ! increas$ m9imum p]=mance /&>d4
  7iv7 ,cov]$ p]iod def9$ ,9 ?is        
subp>agraph1 ! t]m cov]$ p]iod means a  
consecutive p]iod ( #aj fiscal ye>s     
prec$+ ! mo/ rec5t #b fiscal ye>s4  7,c7
 ,pat5ts = increas$ m9imum p]=mance     
/&>ds ,a small bus9ess conc]n ) respect 
to :i* an increas$ m9imum p]=mance /&>d 
"u subp>agraph 7,b7 applies may n meet !
 increas$ m9imum p]=mance /&>d by obta9+
 pat5ts4  7,d7 ,effective date          
,subp>agraphs 7,a7 ?r\gh 7,c7 %all take 

effect on ,april #a1 #bjbc4  7,e7 ,waiv]
  7i7 ,9 g5]al ,! ,adm9i/rator may1 ^u !
 reque/ ( a s5ior (ficial ( a ,f$]al    
ag5cy1 grant a waiv] ) respect to a     
topic = ! ,,sbir or ,,/tr program ( !   
,f$]al ag5cy if-- 7,i7 ! topic is       
critical to ! mission ( ! ,f$]al ag5cy  
or relates to national security2 &      
7,,ii7 ! (ficial submits to !           
,adm9i/rator a reque/ = ! waiv] 9       
accordance ) clause 7iii74  7ii7 ,waiv] 
effects ,if ! ,adm9i/ration grants a    
waiv] ) respect to a topic = ! ,,sbir or
 ,,/tr program ( a ,f$]al ag5cy1        
subp>agraphs 7,a77ii7 & 7,b77ii7 %all n 
prohibit any cov]$ small bus9ess conc]n 
f receiv+ an ,,sbir or ,,/tr aw>d "u su*
 topic4  7iii7 ,ag5cy reque/ &          
congressional notification ,n lat] ?an  
#ae days be=e ! release ( a solicitation
 includ+ a topic = :i* a s5ior (ficial (
 a ,f$]al ag5cy is reque/+ a waiv] "u   
clause 7i71 ! s5ior (ficial %all submit 
to ! ,adm9i/rator1 ! ,committee on      
,small ,bus9ess & ! ,committee on       

,sci5ce1 ,space1 & ,te*nology ( ! ,h\se 
( ,repres5tatives1 & ! ,committee on    
,small ,bus9ess & ,entrepr5eur%ip ( !   
,s5ate a reque/ = ! waiv]4  7iv7        
,adm9i/rator det]m9ation & congressional
 notification ,n lat] ?an #ae days aft] 
receiv+ a reque/ = a waiv] "u clause    
7i71 ! ,adm9i/rator %all make a         
det]m9ation ) respect to ! reque/ &     
notify ! s5ior (ficial at ! ,f$]al ag5cy
 t made ! reque/1 ! ,committee on ,small
 ,bus9ess & ! ,committee on ,sci5ce1    
,space1 & ,te*nology ( ! ,h\se (        
,repres5tatives1 & ! ,committee on      
,small ,bus9ess & ,entrepr5eur%ip ( !   
,s5ate ( ! det]m9ation4  7v7 ,def9itions
 ,9 ?is subp>agraph3 7,i7 ,cov]$ small  
bus9ess conc]n ,! t]m cov]$ small       
bus9ess conc]n means a small bus9ess    
conc]n t is subject to ! consequ5ces "u 
subp>agraph 7,a77ii7 or 7,b77ii7        
pursuant to a det]m9ation by ! head ( a 
,f$]al ag5cy t su* small bus9ess conc]n 
did n meet an increas$ m9imum p]=mance  
/&>d t 0 applicable to su* small bus9ess

 conc]n4  7,,ii7 ,s5ior (ficial ,! t]m  
s5ior (ficial means an individual       
appo9t$ to a position 9 a ,f$]al ag5cy t
 is classifi$ above ,,gs-#ae pursuant   
section #eajh ( title #e1 ,unit$ ,/ates 
,code1 or any equival5t position1 z     
det]m9$ by ! ,adm9i/rator4  7,f7        
,report+  7i7 ,9 g5]al ,n lat] ?an ,july
 #a1 #bjbc1 & annually !reaft]1 !       
,adm9i/rator %all submit to ,congress a 
li/ ( ! small bus9ess conc]ns t did n   
meet-- 7,i7 an applicable m9imum        
p]=mance /&>d e/abli%$ "u p>agraph      
7#a77;,a77ii7 or 7#b77;,a77ii72 or      
7,,ii7 an applicable increas$ m9imum    
p]=mance /&>d4  7ii7 ,waiv]s ,ea* li/   
submitt$ "u clause 7i7 %all id5tify ea* 
small bus9ess conc]n t receiv$ an ,,sbir
 or ,,/tr aw>d pursuant to a waiv]      
grant$ "u subp>agraph 7,e7 by !         
,adm9i/rator dur+ ! p]iod cov]$ by !    
li/4  7iii7 ,confid5tiality ,ea* li/    
submitt$ "u clause 7i7 %all be          
confid5tial & exempt f disclosure "u    
section #eeb7;b77#c7 ( title #e1 ,unit$ 

,/ates ,code 7commonly kn[n z ! ,fre$om 
( ,in=mation ,act74  7,g7 ,implem5tation
 ,n lat] ?an ,april #a1 #bjbc1 !        
,adm9i/ration %all implem5t ! increas$  
m9imum p]=mance /&>ds "u ?is p>agraph4  
7,h7 ,rules ( con/ruction ,no?+ 9 ?is   
p>agraph %all be con/ru$-- 7i7 to       
prohibit a small bus9ess conc]n f       
p>ticipat+ 9 a ,phase ,i 7or ,phase ,,ii
 if "u ! au?ority ( subsection 7cc77 (  
an ,,sbir or ,,/tr program "u p>agraph  
7#a77;,b7 or 7#b77;,b7 solely on ! basis
 ( a det]m9ation by ! head ( a ,f$]al   
ag5cy t ! small bus9ess conc]n is n     
meet+ an increas$ m9imum p]=mance /&>d2 
or  7ii7 to prev5t ! head ( a ,f$]al    
ag5cy f implem5t+ m re/rictive          
limitations on ! numb] ( f$]ally fund$  
,phase ,i aw>ds & direct to ,phase ,,ii 
aw>ds "u subsection 7cc7 t may be aw>d$ 
to a small bus9ess conc]n ?an !         
limitations describ$ 9 subp>agraphs     
7,a77ii7 & 7,b77ii74  7,i7 ,t]m9ation   
,?is p>agraph %all t]m9ate on ,septemb] 
#cj1 #bjbe4  2  7,c7 9 p>agraph 7#e71 z 

s r$esignat$1 by /rik+ p>agraph         
7#c77;,a7 & ins]t+ p>agraph 7#d77;,a72 &
  7,d7 by add+ at ! end ! foll[+3  7#f7 
,inspector g5]al audit ,n lat] ?an #a   
ye> aft] ! date on :i* ! ,adm9i/rator   
implem5ts ! increas$ m9imum p]=mance    
/&>ds "u p>agraph 7#c71 & p]iodically   
!reaft]1 ! ,inspector ,g5]al ( !        
,adm9i/ration %all-- 7,a7 conduct an    
audit on :e!r ! small bus9ess conc]ns   
subject to increas$ m9imum p]=mance     
/&>ds "u p>agraph 7#c77;,b7 v]ifi$-- 7i7
 ! sales by & inve/m5ts 9 ! small       
bus9ess conc]ns-- 7,i7 dur+ ! #e fiscal 
ye>s imm$iately prec$+ ! fiscal ye> 9   
:i* ! small bus9ess conc]n us$ su* sales
 & inve/m5ts to meet an applicable      
increas$ p]=mance /&>d2 &  7,,ii7 z a   
direct result ( a ,phase ,i aw>d or     
,phase ,,ii aw>d made "u subsection 7cc7
 dur+ ! cov]$ p]iod 7z def9$ 9 p>agraph 
7#c77;,b77iv771 consi/5t ) ! def9ition (
 ,phase ,,iii1 z applicable2  7ii7 any  
?ird-p>ty rev5ue ! small bus9ess conc]ns
 li/ z inve/m5ts or incomes to meet !   

increas$ m9imum p]=mance /&>d-- 7,i7 is 
a direct result ( a ,phase ,i aw>d or   
,phase ,,ii aw>d made "u subsection 7cc7
 dur+ ! cov]$ p]iod 7z def9$ 9 p>agraph 
7#c77;,b77iv772 &  7,,ii7 consi/5t ) !  
requirem5ts ( ! ,adm9i/rator z 9 effect 
on ,septemb] #cj1 #bjbb1 or any         
successor requirem5ts2 &  7iii7 any     
doll> am\nts su* small bus9ess conc]ns  
li/ z inve/m5ts or income to meet su*   
increas$ m9imum p]=mance /&>d !         
provid5ce ( :i* is uncle> & t is n      
directly attributable to a ,phase ,i    
aw>d or ,phase ,,ii aw>d made "u        
subsection 7cc7 dur+ ! cov]$ p]iod 7z   
def9$ 9 p>agraph 7#c77;,b77iv771        
consi/5t ) ! def9ition ( ,phase ,,iii1 z
 applicable2  7,b7 assess !             
self-c]tification requirem5ts = ! m9imum
 p]=mance /&>ds e/abli%$ "u p>agraph    
7#b77;,a77ii7 & ! increas$ m9imum       
p]=mance /&>ds "u p>agraph 7#c77;,b72 & 
7,c7 submit to ! ,committee on ,small   
,bus9ess & ,entrepr5eur%ip ( ! ,s5ate & 
! ,committee on ,small ,bus9ess & !     

,committee on ,sci5ce1 ,space1 &        
,te*nology ( ! ,h\se ( ,repres5tatives a
 report on ! audit conduct$ "u          
subp>agraph 7,a7 & ! assessm5t conduct$ 
"u subp>agraph 7,b74  7#g7 ,increas$    
m9imum p]=mance /&>d def9$ ,9 ?is       
subsection1 ! t]m increas$ m9imum       
p]=mance /&>d means a m9imum p]=mance   
/&>d e/abli%$ "u p>agraph 7#a77;,a77ii7 
or 7#b77;,a77ii7 z modifi$ "u           
subp>agraph 7,a7 or 7,b71 respectively1 
( p>agraph 7#c7 ) respect to a small    
bus9ess conc]n4  4  #i4 ,prohibition    
aga9/ writ+ solicitation topics  7a7 ,9 
g5]al ,section #i ( ! ,small ,bus9ess   
,act 7#ae ,u4,s4,c4 #fch71 z am5d$ by   
?is ,act1 is fur!r am5d$ by add+ at !   
end ! foll[+ subsection3  7xx7          
,additional provisions relat+ to        
solicitation topics  7#a7 ,9 g5]al ,a   
,f$]al ag5cy requir$ to e/abli% an      
,,sbir or ,,/tr program %all implem5t a 
multi-level review & approval process )9
 ! ,f$]al ag5cy = solicitation topics to
 ensure adequate competition & t no     

private individual or entity is %ap+ !  
requirem5ts = eligibility = !           
solicitation topic aft] ! selection ( ! 
solicitation topic1 except t ! ,f$]al   
ag5cy may am5d ! requirem5ts to cl>ify !
 solicitation topic4  7#b7 ,ref]ral ,a  
,f$]al ag5cy t does n comply ) p>agraph 
7#a7 %all be ref]r$ to ! ,inspector     
,g5]al ( ! ,adm9i/ration = fur!r        
inve/igation4  4  #aj4 ,,gao /udy on    
multiple aw>d w9n]s ,n lat] ?an #ah     
mon?s aft] ! date ( enactm5t ( ?is ,act1
 ! ,comptroll] ,g5]al ( ! ,unit$ ,/ates 
%all conduct a /udy & submit to !       
,committee on ,small ,bus9ess &         
,entrepr5eur%ip ( ! ,s5ate & !          
,committee on ,small ,bus9ess & !       
,committee on ,sci5ce1 ,space1 &        
,te*nology ( ! ,h\se ( ,repres5tatives a
 report1 :i* %all be made publicly      
available1 on small bus9ess conc]ns t   
are aw>d$ n less ?an #ej ,phase ,,ii    
aw>ds "u ! ,,sbir or ,,/tr programs dur+
 ! consecutive p]iod ( #aj fiscal ye>s  
prec$+ ! mo/ rec5t #b fiscal ye>s1      

includ+1 to ! ext5t practicable1 an     
analysis (-- 7#a7 ! impact ( ! small    
bus9ess conc]ns on ! ,,sbir & ,,/tr     
programs2  7#b7 ! ratio ( ! numb] (     
,phase ,,ii aw>ds receiv$ by ! small    
bus9ess conc]ns to ! total numb] (      
,phase ,,ii aw>ds2  7#c7 ! ability ( !  
small bus9ess conc]ns to comm]cialize & 
meet ! t5ets ( ! ,,sbir & ,,/tr         
programs2  7#d7 ! impact on new entrants
 & se$+ te*nology necess>y to ! ,f$]al  
ag5cy mission or comm]cial m>kets &1 )  
respect to ! ,dep>tm5t ( ,def5se1 :e!r !
 types ( te*nology ! small bus9ess      
conc]ns are pursu+ are prim>ily h>dw>e1 
s(tw>e1 or sy/em compon5ts = ! w>fight]2
  7#e7 an evaluation & /udy ( v>y+      
levels ( aw>d caps & lifetime program   
e>n+ caps2  7#f7 an assessm5t ( !       
increas$ m9imum p]=mance /&>ds "u       
p>agraph 7#c7 ( section #i7qq7 ( !      
,small ,bus9ess ,act 7#ae ,u4,s4,c4     
#fch7qq771 z add$ by section #h1 on !   
behavior ( ^? conc]ns & on ! ,,sbir &   
,,/tr programs1 & :e!r to cont9ue su*   

increas$ m9imum p]=mance /&>ds2 &  7#g7 
recomm5dations on :e!r alt]native m9imum
 p]=mance /&>ds "u section #i7qq7 ( !   
,small ,bus9ess ,act 7#ae ,u4,s4,c4     
#fch7qq77 %\ld be consid]$1 & ! ext5t to
 :i* su* alt]native m9imum p]=mance     
/&>ds pres]ve ! competitive1 m]it-bas$  
f\ndation ( ! ,,sbir & ,,/tr programs4  
#aa4 ,,gao report on subcontract+ 9     
,,sbir & ,,/tr programs ,n lat] ?an #a  
ye> aft] ! date ( ! enactm5t ( ?is ,act1
 ! ,comptroll] ,g5]al ( ! ,unit$ ,/ates 
%all submit to ! ,committee on ,small   
,bus9ess & ,entrepr5eur%ip ( ! ,s5ate & 
! ,committee on ,small ,bus9ess & !     
,committee on ,sci5ce1 ,space1 &        
,te*nology ( ! ,h\se ( ,repres5tatives a
 report evaluat+1 to ! ext5t            
practicable1 ! foll[+3 7#a7 ,! ext5t to 
:i* ,,sbir aw>dees & ,,/tr aw>dees are 9
 compliance ) ! ,f$]al ,fund+           
,acc\ntability & ,transp>5cy ,act 7#ca  
,u4,s4,c4 #faja note74  7#b7 ,! ext5t to
 :i* ,,sbir aw>dees & ,,/tr aw>dees ent]
 into subcontract+ agreem5ts ) respect  

to an ,,sbir or ,,/tr aw>d4  7#c7 ,!    
total numb] & doll> am\nt ( subcontracts
 ent]$ into betwe5 an ,,sbir aw>dee or  
an ,,/tr aw>dee & a conc]n t is n a     
small bus9ess conc]n 7includ+ su*       
conc]ns t are def5se contractors7 )     
respect to an ,,sbir or ,,/tr aw>d4     
7#d7 ,a description ( ! type & purpose (
 subcontract+ agreem5ts describ$ 9      
p>agraph 7#b74  7#e7 ,an analysis ( :e!r
 ! use ( subcontracts by an ,,sbir      
aw>dee or an ,,/tr aw>dee is consi/5t ) 
! purposes ( section #i ( ! ,small      
,bus9ess ,act 7#ae ,u4,s4,c4 #fch74