,,ii  #aai? ,,congress  #a/ ,session    
,s4 #hec  ,,9 ,,! ,,s5ate ,,( ,,!       
,,unit$ ,,/ates  ,m>* #e1 #bjbe,ms4     
,ern/ introduc$ ! foll[+ bill2 :i* 0    
read twice & ref]r$ to ! ,committee on  
,small ,bus9ess & ,entrepr5eur%ip  ,a   
,,bill  ,to improve ! ,,sbir & ,,/tr    
programs "u ! ,small ,bus9ess ,act1 & = 
o!r purposes4  #a4 ,%ort title2 table ( 
cont5ts  7a7 ,%ort title ,?is ,act may  
be cit$ z the,investing 9 ,national     
,next-,g5]ation ,opportunities = ,v5ture
 ,accel]ation & ,te*nological ,excell5ce
 or ! ,,innovate ,act4  7b7 ,table (    
cont5ts ,! table ( cont5ts = ?is ,act is
 z foll[s3 ,sec4 #a4 ,%ort title2 table 
( cont5ts4,sec4 #b4 ,def9itions4,,title 
,i--,promot+ ,transition =              
,battle-,ready ,technologies,sec4 #aja4 
,enhanc+ small bus9ess success 9 ! ,,/tr
 program4,sec4 #ajb4 ,phase ,,ii        
/rategic break?r\gh fund+4,sec4 #ajc4   
,implem5tation brief+s4,sec4 #ajd4      
,fix$-price contracts4,,title           
,,ii--,enc\rag+ ,small ,bus9ess         

,innovation 9 ,all ( ,america,sec4 #bja4
 ,enc\rag+ new ,,sbir & ,,/tr           
entrants4,sec4 #bjb4 ,combat+           
discrim9atory practices 9 ! ,,sbir &    
,,/tr programs4,,title ,,iii--,/reaml9+ 
,p>ticipation 9 ! ,,sbir & ,,/tr        
,programs,sec4 #cja4 ,def9ition ( op5   
topics4,sec4 #cjb4 ,r$uc+ adm9i/rative  
burd54,,title ,,iv--,protect+ ,am]ican  
,innovation f ,adv]s>ial ,influence,sec4
 #dja4 ,def9ition ( =eign risk4,sec4    
#djb4 ,bol/]+ rese>* security ( ,,sbir &
 ,,/tr aw>ds4,sec4 #djc4 ,/r5g!n+ ! due 
dilig5ce program to assess security     
risks4,sec4 #djd4 ,/r5g!n+ ag5cy recov]y
 au?ority4,sec4 #dje4 ,be/ practices on 
inve/or in=mational rights4,sec4 #djf4  
,,gao report4,,title ,v--,simplify+     
,,sbir-,,/tr ,comm]cialization          
,standards,sec4 #eja4 ,/reaml9+         
transition & comm]cialization rate      
b5*m>ks4,sec4 #ejb4 ,improv+ direct to  
,phase ,,ii au?orities4,sec4 #ejc4      
,improv+ ,,sbir-,,/tr data              
collection4,sec4 #ejd4 ,/reaml9+ program

 adm9i/ration4,sec4 #eje4 ,ext5d+ ,,sbir
 & ,,/tr au?orization4  #b4 ,def9itions 
,9 ?is ,act1 ! t]ms ,phase ,i1 ,phase   
,,ii1 ,phase ,,iii1 ,,sbir1 & ,,/tr h ! 
mean+s giv5 ^? t]ms 9 section #i7;e7 ( !
 ,small ,bus9ess ,act 7#ae ,u4,s4,c4    
#fch7;e774  ,i ,promot+ ,transition =   
,battle-,ready ,te*nologies  #aja4      
,enhanc+ small bus9ess success 9 ! ,,/tr
 program ,section #i ( ! ,small ,bus9ess
 ,act 7#ae ,u4,s4,c4 #fch et seq47 is   
am5d$-- 7#a7 9 subsection 7e7-- 7,a7 9  
p>agraph 7#f7-- 7i7 9 subp>agraph 7,a71 
by add+ & at ! end2 &  7ii7 by /rik+    
subp>agraphs 7,b7 & 7,c7 & ins]t+ !     
foll[+3  7,b7 opportunities = foll[-on  
fund+ 9 ,phases ,,ii & ,,iii ( ! ,,sbir 
program2  2 &  7,b7 9 p>agraph 7#g7--   
7i7 by /rik+ #dj & ins]t+ #ej2 &  7ii7  
by /rik+ #cj & ins]t+ #bj2  7#b7 9      
subsection 7f77#a7-- 7,a7 9 subp>agraph 
7,h71 by /rik+ & at ! end2  7,b7 9      
subp>agraph 7,i71 by /rik+ & ea* fiscal 
ye> !reaft]1 & ins]t+ 2 &2 &  7,c7 by   
add+ at ! end ! foll[+3  7,j7 n less ?an

 #c4de p]c5t ( su* budget 9 fiscal ye>  
#bjbf & e ye> !reaft]1  2 &  7#c7 9     
subsection 7n7-- 7,a7 9 p>agraph        
7#a77;,b7-- 7i7 9 clause 7iv71 by /rik+ 
& at ! end2  7ii7 9 clause 7v71 by /rik+
 & ea* fiscal ye> !reaft]4 & ins]t+ 2 &2
 &  7iii7 by add+ at ! end ! foll[+3    
7vi7 n less ?an #j4bj p]c5t = fiscal ye>
 #bjbf & ea* fiscal ye> !reaft]4  2     
7,b7 by r$esignat+ p>agraphs 7#b7 & 7#c7
 z p>agraphs 7#c7 & 7#d71 respectively2 
&  7,c7 by ins]t+ aft] p>agraph 7#a7 !  
foll[+3  7#b7 ,purpose ( ,,/tr program  
7,a7 ,9 g5]al ,ea* ,f$]al ag5cy %all use
 its ,,/tr budget to fund small bus9ess 
conc]ns conduct+ fundam5tal1 basic1 or  
o!r sci5tific rese>* t /&s to b5efit mo/
 f p>tn]%ips ) eligible rese>*          
in/itutions4  7,b7 ,do,d & ,,nasa ,!    
,dep>tm5t ( ,def5se & ! ,national       
,a]onautics & ,space ,adm9i/ration %all 
use _! ,,/tr budget to solely fund      
rese>* at te*nology read9ess levels #a1 
#b1 & #c4  4  #ajb4 ,phase ,,ii /rategic
 break?r\gh fund+  7a7 ,9 g5]al ,section

 #i ( ! ,small ,bus9ess ,act 7#ae       
,u4,s4,c4 #fch71 z am5d$ by ?is ,act1 is
 am5d$-- 7#a7 by r$esignat+ subsection  
7y7 z p>agraph 7#c71 adju/+ ! m>g9s     
accord+ly1 & mov+ x s z to appe> 9      
subsection 7ff7 aft] p>agraph 7#b72     
7#b7 9 subsection 7aa71 by add+ at ! end
 ! foll[+3  7#f7 ,/rategic break?r\gh   
allocation ,! ,dep>tm5t ( ,def5se or its
 compon5ts %all n be requir$ to receive 
a waiv] f ! ,adm9i/rator to aw>d a small
 bus9ess conc]n n m ?an #cj1jjj1jjj :5  
us+ funds made available "u a /rategic  
break?r\gh allocation4  2  7#c7 9       
subsection 7ff7-- 7,a7 9 ! subsection   
head+1 by /rik+ & ,,/tr & ins]t+ ,phase 
,,ii2  7,b7 9 p>agraph 7#a71 by /rik+ or
 ,phase ,,ii ,,/tr aw>d2 &  7,c7 9      
p>agraph 7#c71 z s r$esignat$-- 7i7 9 ! 
p>agraph head+1 by /rik+                
,comm]cialization ,read9ess ,program &  
ins]t+ ,/rategic ,break?r\gh ,aw>ds2    
7ii7 9 subp>agraph 7,a71 z s            
r$esignat$-- 7,i7 9 ! fir/ s5t5ce1 by   
/rik+ create & adm9i/] a                

,comm]cialization ,read9ess ,program &  
ins]t+ provide fund+2 &  7,,ii7 9 !     
second s5t5ce1 by /rik+ create & adm9i/]
 a ,comm]cialization ,program "u ?is    
subsection & ins]t+ provide fund+ "u ?is
 p>agraph2  7iii7 9 subp>agraph 7,b71 z 
s r$esignat$-- 7,i7 9 ! fir/ s5t5ce1 by 
/rik+ ,9 c>ry+ out ! ,comm]cialization  
,read9ess ,program & ins]t+ ! foll[+3   
7i7 ,9 g5]al ,9 c>ry+ out ?is p>agraph  
2  7,,ii7 9 clause 7i71 z s designat$-- 
7aa7 by /rik+ %all id5tify & ins]t+     
%all-- 7,i7 id5tify  2  7bb7 9 subclause
 7,i71 z s designat$1 by /rik+ ! p]iod  
at ! end & ins]t+ a semicolon2 &  7cc7  
by add+ at ! end ! foll[+3  7,,ii7      
ensure1 9 collaboration ) ,,sbir program
 manag]s ( ea* compon5t ( ! ,dep>tm5t ( 
,def5se1 t rese>* programs id5tifi$ "u  
subclause 7,i7 are analyz$ )9 !         
programm+ & budget+ process z budget    
reque/s are develop$2 &  7,,iii7 provide
 to ! ,committee on ,small ,bus9ess &   
,entrepr5eur%ip ( ! ,s5ate & !          
,committees on ,small ,bus9ess &        

,sci5ce1 ,space1 & ,te*nology ( ! ,h\se 
( ,repres5tatives in=mation on !        
integration ( ,,sbir & ,,/tr aw>dees 9  
budget roll\ts = rese>*1 developm5t1    
te/+1 & evaluation activities4  2 &     
7,,iii7 by add+ at ! end ! foll[+3  7ii7
 ,aw>d ,"u ?is p>agraph1 a fund+        
agreem5t may be aw>d$ to a small bus9ess
 conc]n by ! ,dep>tm5t ( ,def5se us+    
funds made available "u a /rategic      
break?r\gh allocation1 z def9$ 9        
subp>agraph 7,c77i74  2  7iv7 by /rik+  
subp>agraphs 7,c71 7,d71 & 7,e71 z s    
r$esignat$1 & ins]t+ ! foll[+3  7,c7    
,fund+ p>amet]s  7i7 ,def9ition ,9 ?is  
subp>agraph1 ! t]m /rategic break?r\gh  
allocation means a requir$ exp5diture   
am\nt = ! ,dep>tm5t ( ,def5se )9 !      
,,sbir allocation "u subsection 7f77#a7 
= fiscal ye> #bjbf & e fiscal ye>       
!reaft] ( n less ?an #j4be p]c5t ( !    
extramural budget = rese>* or rese>* &  
developm5t designat$ = ! ,dep>tm5t (    
,def5se4  7ii7 ,requirem5ts ,9 ! case ( 
a ,phase ,,ii agreem5t t is aw>d$ to a  

small bus9ess conc]n by ! ,dep>tm5t (   
,def5se us+ funds made available "u a   
/rategic break?r\gh allocation1 ! foll[+
 requirem5ts %all apply3 7,i7 ,aw>d size
 & p]iod ( p]=mance ,! ,dep>tm5t (      
,def5se may aw>d n m ?an #a aw>d ( n m  
?an #cj1jjj1jjj p] small bus9ess conc]n1
 includ+ its affiliates1 sp9\ts1 or     
subsidi>ies1 f ! /rategic break?r\gh    
allocation ) a p]iod ( p]=mance ( n m   
?an #dh mon?s4  7,,ii7 ,small bus9ess   
conc]n requirem5ts ,! small bus9ess     
conc]n %all-- 7aa7 h be5 aw>d$ n less   
?an #a prior ,phase ,,ii aw>d "u !      
,,sbir program2  7bb7 demon/rate n less 
?an #ajj p]c5t mat*+ funds ?r\gh new    
outside capital or am\nts aw>d$ by !    
,dep>tm5t ( ,def5se "u a program o!r ?an
 ,phase ,i & ,,ii ( ! ,,sbir or ,,/tr   
program z a result ( an aw>d us+ funds  
made available "u a /rategic break?r\gh 
allocation2  7cc7 h be5 aw>d$ n m ?an   
#ej1jjj1jjj 9 cumulative ,dep>tm5t (    
,def5se contracts or aw>ds2 &  7dd7 only
 be eligible = an aw>d f ! /rategic     

break?r\gh allocation if ! product1     
process1 or te*nology ( ! small bus9ess 
conc]n-- 7,,aa7 meets a necess>y level (
 read9ess & has a commitm5t = inclusion 
9 a program objective memor&um f an     
(ficial ) ! rank ( program executive    
(fic] or high] 9 an acquisition         
organization ( ! ,dep>tm5t ( ,def5se2   
7,,bb7 is an effective solution1 z      
det]m9$ by m>ket rese>*2 & 7,,cc7 w meet
 high priority milit>y requirem5ts or   
op]ational ne$s ( a milit>y dep>tm5t    
?r\gh a successful transition & into !  
acquisition process4  7,,iii7 ,deadl9e  
,! ,dep>tm5t ( ,def5se %all complete any
 contract aw>ds us+ /rategic break?r\gh 
allocation funds n lat] ?an #ij days    
aft] receiv+ a proposal f a small       
bus9ess conc]n = ! aw>d4  7,,iv7        
,eligible activities ,eligible          
activities by a small bus9ess conc]n us+
 /rategic break?r\gh allocation funds   
are-- 7aa7 design = manufactur+2  7bb7  
e/abli%+ manufactur+ facilities1 tool+1 
& supply *a9 capacity2  7cc7 buy+ raw   

mat]ials or inv5tory2  7dd7 !           
integration ( products ) op5            
int]op]ability /&>ds2  7ee7 te/+1       
evaluation1 & c]tification ( l[-rate    
production units2 &  7ff7 ! pur*ase (   
production units & ma9t5ance4  7,v7     
,selection crit]ia ,9 mak+ aw>ds1 !     
,dep>tm5t ( ,def5se %all consid]-- 7aa7 
! pot5tial ( ! small bus9ess conc]n to--
 7,,aa7 advance ! national security     
capabilities ( ! ,unit$ ,/ates2 7,,bb7  
provide new te*nologies or processes1 or
 new applications ( exi/+ te*nologies1 t
 w enable new alt]natives to exi/+      
programs2 7,,cc7 provide future co/     
sav+s2 & 7,,dd7 enhance ! le?ality &    
effici5cy ( ! ,unit$ ,/ates milit>y2    
7bb7 :e!r a major sy/em or cu/om] 9 !   
,dep>tm5t ( ,def5se has express$ int5t  
to pur*ase & integrate te*nology f !    
small bus9ess conc]n into its op]ations2
 &  7cc7 su* o!r crit]ia t ! ,dep>tm5t (
 ,def5se det]m9es to be appropriate4    
7,d7 ,acquisition me*anism ,! ,dep>tm5t 
( ,def5se %all e/abli% a me*anism1 su* z

 a major sy/em1 to provide small bus9ess
 conc]ns ) direct access to program &   
requirem5ts (fices ?r\gh\t ! ,dep>tm5t (
 ,def5se t may pur*ase te*nology f small
 bus9ess conc]ns "u ,phase ,,iii ( !    
,,sbir program ( ! ,dep>tm5t ( ,def5se4 
7,e7 ,op]ational ne$s ,! ,dep>tm5t (    
,def5se %all all[ s]vices to provide    
op]ational ne$s /atem5ts directly to    
*iefs ( requirem5ts (fices4  2 &  7v7 9 
subp>agraph 7,f71 z s r$esignat$-- 7,i7 
by am5d+ clause 7i7 to read z foll[s3   
7i7 set a goal to sub/antively increase 
! numb] ( ,phase ,,ii ,,sbir contracts  
aw>d$ by ! ,secret>y t lead to te*nology
 transition into programs ( record or   
field$ sy/ems 9 fiscal ye> #bjbh comp>$ 
to fiscal ye> #bjbe2 &  2  7,,ii7 by    
/rik+ clause 7ii72  7,,iii7 by          
r$esignat+ clause 7iii7 z clause 7ii72 &
  7,,iv7 9 clause 7ii71 z s r$esignat$--
 7aa7 9 subclause 7,i71 by add+ & at !  
end2  7bb7 9 subclause 7,,ii7-- 7,,aa7  
by /rik+ ?r\gh ! ,comm]cialization      
,read9ess ,program & ins]t+ "u a        

/rategic break?r\gh allocation2 & 7,,bb7
 by /rik+ 2 & & ins]t+ a p]iod2 &  7cc7 
by /rik+ subclause 7,,iii72 &  7#d7 by  
r$esignat+ subsection 7xx71 entitl$     
,additional ,provisions ,relat+ to      
,solicitation ,topics1 z subsection 7y71
 & mov+ x s z to appe> aft] subsection  
7x74  7b7 ,te*nical & con=m+ am5dm5ts   
,section #i ( ! ,small ,bus9ess ,act    
7#ae ,u4,s4,c4 #fch71 z am5d$ by ?is    
,act1 is am5d$-- 7#a7 9 subsection      
7i77#a71 by /rik+ subsection 7y7 &      
ins]t+ subsection 7ff77#c72  7#b7 9     
subsection 7mm77#a77;,d71 by /rik+      
subsection 7y7 & ins]t+ subsection      
7ff77#c72 &  7#c7 9 subsection 7tt71 by 
/rik+ 7y77#f77;,c7 & ins]t+             
7ff77#c77;,f77ii74  #ajc4 ,implem5tation
 brief+s ,n lat] ?an #fj days aft] !    
date ( enactm5t ( ?is ,act1 & on a      
recurr5t basis until implem5tation is   
complete1 ! ,secret>y ( ,def5se %all    
brief ! ,committee on ,small ,bus9ess & 
,entrepr5eur%ip ( ! ,s5ate & !          
,committee on ,small ,bus9ess & !       

,committee on ,sci5ce1 ,space1 &        
,te*nology ( ! ,h\se ( ,repres5tatives  
on ! implem5tation ( p>agraph 7#c7 (    
section #i7;ff7 ( ! ,small ,bus9ess ,act
 7#ae ,u4,s4,c4 #fch7;ff771 z add$ by   
section #ajb4  #ajd4 ,fix$-price        
contracts ,section #i ( ! ,small        
,bus9ess ,act 7#ae ,u4,s4,c4 #fch7 is   
am5d$-- 7#a7 9 subsection 7f71 by add+  
at ! end ! foll[+3  7#e7 ,fix$-price    
contract ,any fund+ agreem5t t is a     
contract made ) exp5ditures allocat$ to 
! ,,sbir program "u p>agraph 7#a7 %all  
be a firm-fix$-price contract 7z def9$ 9
 section #af4bjb ( ! ,f$]al ,acquisition
 ,regulation71 unless1 on a case-by-case
 basis1 ! head ( ! aw>d+ ,f$]al ag5cy   
makes a writt5 det]m9ation to utilize a 
diff]5t contract /ructure4  2 &  7#b7 9 
subsection 7n71 z am5d$ by section #aja1
 by add+ at ! end ! foll[+3  7#e7       
,fix$-price contract ,any fund+ agreem5t
 t is a contract made ) exp5ditures     
allocat$ to ! ,,/tr program "u p>agraph 
7#a7 %all be a firm-fix$-price contract 

7z def9$ 9 section #af4bjb ( ! ,f$]al   
,acquisition ,regulation71 unless ! head
 ( ! aw>d+ ,f$]al ag5cy makes a writt5  
det]m9ation to utilize a diff]5t        
contract /ructure4  4  ,,ii ,enc\rag+   
,small ,bus9ess ,innovation 9 ,all (    
,am]ica  #bja4 ,enc\rag+ new ,,sbir &   
,,/tr entrants  7a7 ,9 g5]al  7#a7      
,enc\rag+ new ,,sbir & ,,/tr entrants   
,section #i7;jj7 ( ! ,small ,bus9ess    
,act 7#ae ,u4,s4,c4 #fch7;jj77 is am5d$ 
to read z foll[s3  7jj7 ,enc\rag+ new   
,,sbir & ,,/tr entrants  7#a7 ,optimiz+ 
,,sbir & ,,/tr fund+ ,a small bus9ess   
conc]n1 includ+ its affiliates1 sp9\ts1 
or subsidi>ies1 may n apply to a ,phase 
,i or ,phase ,,ii solicitation "u an    
,,sbir or ,,/tr program if ! small      
bus9ess conc]n1 includ+ its affiliates1 
sp9\ts1 or subsidi>ies1 has previ\sly   
receiv$ ov] #ge1jjj1jjj 9 fund+ f ,,sbir
 or ,,/tr ,phase ,i & ,phase ,,ii aw>ds4
  7#b7 ,prim>y inve/igators ,an         
individual may n concurr5tly s]ve z !   
prim>y inve/igator on m ?an #a proposal 

to a s+le ,phase ,i solicitation or a   
s+le ,phase ,,ii solicitation4  7#c7    
,phase ,i size /&>d ,a small bus9ess    
conc]n apply+ = a ,phase ,i aw>d may n h
 annual receipts 7z def9$ 9 section     
#aba4ajd ( title #ac1 ,code ( ,f$]al    
,regulations1 or any successor          
regulation7 ( m ?an #dj1jjj1jjj = ! mo/ 
rec5t fiscal ye>4  4  7#b7 ,con=m+      
am5dm5t ,section #i7tt77#a77;,a7 ( !    
,small ,bus9ess ,act 7#ae ,u4,s4,c4     
#fch7tt77#a77;,a77 by /rik+ 1 7jj77#f74 
7b7 ,phase #a;,a program ,section #i ( !
 ,small ,bus9ess ,act 7#ae ,u4,s4,c4    
#fch71 z am5d$ by ?is ,act1 is am5d$--  
7#a7 9 subsection 7e77#d7-- 7,a7 9      
subp>agraph 7,a71 by /rik+ subp>agraph  
7,b7 & ins]t+ subp>agraph 7,c72  7,b7 by
 r$esignat+ subp>agraphs 7,b7 & 7,c7 z  
subp>agraphs 7,c7 & 7,d72 &  7,c7 by    
ins]t+ aft] subp>agraph 7,a71 ! foll[+3 
7,b7 a #a;,a phase = ! same purposes z !
 fir/ phase describ$ "u subp>agraph 7,a7
 & int5d$ to increase accessibility to !
 program = new entrants1 ) proposals    

submitt$ pursuant to only ,,sbir op5    
topic ann\ncem5ts2  2 &  7#b7 by am5d+  
subsection 7pp7 to read z foll[s3  7pp7 
,phase #a;,a aw>ds  7#a7 ,s5se (        
,congress ,x is ! s5se ( ,congress t--  
7,a7 ,phase #a;,a funds w br+ ?\s&s (   
new small bus9ess conc]ns committ$ to   
comm]cialization ( critical te*nologies 
into ! ,,sbir program2 &  7,b7 9 ord] = 
p>ticipat+ ag5cies to b5efit f ! full   
scope ( ,am]ican innovation & id5tify ! 
mo/ promis+ solutions to scale1 ,phase  
#a;,a aw>ds %\ld fund ! /ronge/         
te*nologies 9 a topic area reg>dless (--
 7i7 ! location ( ! small bus9ess conc]n
 )9 ! ,unit$ ,/ates2 or  7ii7 !         
educational backgr\nd ( ! pr9cipal      
inve/igator4  7#b7 ,au?orization ,! head
 ( ea* ag5cy ) an ,,sbir program %all   
allocate n less ?an #b4e p]c5t ( fund+ =
 ! ,,sbir program ( ! ag5cy to ,phase   
#a;,a aw>ds4  7#c7 ,solicitation ,a     
solicitation issu$ "u ?is subsection    
%all be conduct$ z an op5 topic         
ann\ncem5t1 z def9$ 9 subsection 7e74   

7#d7 ,eligibility ,9 ord] to be eligible
 = an aw>d "u ?is subsection1 a small   
bus9ess conc]n1 includ+ its affiliates1 
sp9\ts1 or subsidi>ies1 %all n h        
previ\sly receiv$ an ,,sbir or ,,/tr    
aw>d4  7#e7 ,proposal  7,a7 ,9 g5]al ,a 
proposal submitt$ 9 response to a       
solicitation "u ?is subsection %all     
consi/ ( a report ( no m ?an #b pages 9 
l5g? & %all conta9 ! crit]ia describ$ 9 
subp>agraph 7,b74  7,b7 ,crit]ia  7i7   
,id5tification ( problem ,! small       
bus9ess conc]n %all describe ! problem t
 ! proposal is int5d$ to address = !    
aw>d+ ag5cy & any comm]cial cu/om]4     
7ii7 ,description ( solution ,! small   
bus9ess conc]n %all describe ! propos$  
solution1 includ+ ! te*nical basis = !  
solution to demon/rate h[ ! solution    
w\ld address ! problem describ$ 9 !     
proposal1 includ+ ! level ( maturity ( !
 solution at ! "t ( ! proposal4  7iii7  
,impact ( ! solution ,! small bus9ess   
conc]n %all describe h[ adoption ( !    
propos$ solution w\ld produce pot5tial  

"t sav+s1 co/ sav+s1 risk r$uction1     
improvem5t ( mission outcomes1 or any   
o!r b5eficial impact = ! aw>d+ ag5cy &  
any comm]cial cu/om]4  7iv7             
,diff]5tiation ,! small bus9ess conc]n  
%all-- 7,i7 id5tify ! /ate ( solutions 9
 use at ! "t ( ! proposal to address !  
problem describ$ 9 ! proposal2 &  7,,ii7
 expla9 h[ ! propos$ solution is a      
unique & novel solution4  7v7           
,comm]cialization /rategy ,! small      
bus9ess conc]n %all-- 7,i7 describe h[ !
 small bus9ess conc]n int5ds to fund !  
propos$ solution2 &  7,,ii7 expla9 !    
m>ket = ! propos$ solution1 includ+ !   
int5d$ ,gov]nm5t & comm]cial end us]s4  
7#f7 ,aw>d limits  7,a7 ,numb] ( aw>ds  
,a small bus9ess conc]n or pr9cipal     
inve/igator is eligible = n m ?an #a    
,phase #a;,a aw>d4  7,b7 ,am\nt ,an aw>d
 made "u ?is subsection %all be = n m   
?an #dj1jjj4  7#g7 ,notification (      
selection or non-selection ,ea* ag5cy   
%all notify ea* small bus9ess conc]n ( !
 aw>d decision ( ! ag5cy on any proposal

 submitt$ by ! small bus9ess conc]n n   
lat] ?an #ij days aft] ! date on :i* !  
solicitation closes4  7#h7 ,application 
= ,phase ,,ii aw>d  7,a7 ,eligibility ,a
 small bus9ess conc]n t receives a      
,phase #a;,a aw>d %all be eligible to   
apply = a ,phase ,,ii aw>d4  7,b7 ,use (
 funds ,a small bus9ess conc]n may use  
funds f a ,phase #a;,a aw>d to develop a
 propos$ solution 9 pursuit ( a         
subsequ5t proposal = a ,phase ,i aw>d or
 a ,phase ,,ii aw>d4  4  #bjb4 ,combat+ 
discrim9atory practices 9 ! ,,sbir &    
,,/tr programs ,section #i ( ! ,small   
,bus9ess ,act 7#ae ,u4,s4,c4 #fch71 z   
am5d$ by ?is ,act1 is am5d$-- 7#a7 9    
subsection 7b77#g77;,c71 by /rik+ own$ &
 controll$ by wom5 or by socially &     
economically disadvantag$ individuals & 
ins]t+ own$ by individuals :o reside 9  
em]g+ ,/ates or rural areas2  7#b7 9    
subsection 7e7-- 7,a7 9 p>agraph 7#ah71 
by /rik+ & at ! end2  7,b7 9 p>agraph   
7#ai71 by /rik+ ! p]iod at ! end &      
ins]t+ a semicolon2 &  7,c7 by add+ at !

 end ! foll[+3  7#bj7 ! t]m em]g+ ,/ate 
means ! #be ,/ates ) ! fewe/ comb9$     
numb] ( aw>d recipi5ts 9 ! ,,sbir       
program & ! ,,/tr program t h receiv$ _!
 fir/ ,phase ,i aw>d 9 ! previ\s #aj    
fiscal ye>s2  7#ba7 ! t]m rural area    
means a c\nty or o!r political          
subdivision ( a ,/ate t ! ,bureau ( !   
,c5sus has def9$ z mo/ly rural or       
completely rural 9 ! mo/ rec5t dec5nial 
c5sus2  2  7#c7 9 subsection            
7g77#h77;,a7-- 7,a7 by /rik+ clause     
7iii72  7,b7 by r$esignat+ clauses 7iv71
 7v71 & 7vi7 z clauses 7iii71 7iv71 &   
7v71 respectively2 &  7,c7 9 clause     
7iii71 z s r$esignat$1 by /rik+ a       
socially or economically disadvantag$   
individual or has a socially or         
economically disadvantag$ individual &  
ins]t+ an individual :o resides 9 an    
em]g+ ,/ate or rural area or has an     
individual :o resides 9 an em]g+ ,/ate  
or rural area2  7#d7 9 subsection 7j7-- 
7,a7 by adju/+ ! m>g9s = p>agraphs 7#b7 
& 7#c7 #b ems to ! left2 &  7,b7 9      

p>agraph 7#b7-- 7i7 by /rik+ subp>agraph
 7,f72  7ii7 by r$esignat+ subp>agraphs 
7,g71 7,h71 & 7,i7 z subp>agraphs 7,f71 
7,g71 & 7,h72 &  7iii7 9 subp>agraph    
7,h71 z s r$esignat$1 by /rik+          
subp>agraph 7,h7 & ins]t+ subp>agraph   
7,g72  7#e7 9 subsection 7k77#a77;,f7-- 
7,a7 by /rik+ clause 7ii72  7,b7 by     
r$esignat+ clauses 7iii71 7iv71 & 7v7 z 
clauses 7ii71 7iii71 & 7iv71            
respectively2 &  7,c7 9 clause 7ii71 z s
 r$esignat$1 by /rik+ a socially or     
economically disadvantag$ individual or 
has a socially or economically          
disadvantag$ individual & ins]t+ an     
individual :o resides 9 an em]g+ ,/ate  
or rural area or has an individual :o   
resides 9 an em]g+ ,/ate or rural area2 
7#f7 9 subsection 7o77#i77;,a7-- 7,a7 by
 /rik+ clause 7iii72  7,b7 by r$esignat+
 clauses 7iv71 7v71 & 7vi7 z clauses    
7iii71 7iv71 & 7v71 respectively2 &     
7,c7 9 clause 7iii71 z s r$esignat$1 by 
/rik+ a socially or economically        
disadvantag$ individual or has a        

socially or economically disadvantag$   
individual & ins]t+ an individual :o    
resides 9 an em]g+ ,/ate or rural area  
or has an individual :o resides 9 an    
em]g+ ,/ate or rural area2 &  7#g7 9    
subsection 7mm7-- 7,a7 9 p>agraph 7#a7--
 7i7 9 ! matt] prec$+ subp>agraph 7,a71 
by /rik+ & until ,septemb] #cj1 #bjbe2 &
  7ii7 9 subp>agraph 7,f71 by /rik+ or  
abuse to ensure compliance & ins]t+     
abuse1 or adv]s>ial influ5ce to ensure  
compliance2  7,b7 9 p>agraph 7#b77;,a71 
by /rik+ to c>ry out ! policy directive 
requir$ "u subsection 7j77#b77;,f7 & &  
ins]t+ to increase ! p>ticipation (     
,/ates ) respect to :i* a l[ level (    
,,sbir aw>ds h hi/orically be5 aw>d$2 & 
7,c7 by add+ at ! end ! foll[+3  7#g7   
,eligibility ,= an ag5cy to be eligible 
to utilize funds allocat$ to ! ,,sbir   
program ( t ,f$]al ag5cy "u ?is         
subsection1 ! ag5cy %all n-- 7,a7       
consid] ! race1 g5d]1 or e?nicity ( !   
pr9cipal inve/igator1 f\nd]1 or key     
p]sonnel ( ! small bus9ess conc]n apply+

 = an ,,sbir or ,,/tr aw>d 9 an aw>d    
decision "u ! ,,sbir or ,,/tr program ( 
! ag5cy2  7,b7 require or consid] a     
/atem5t or plan to promote div]sity or  
equity z "p ( an application = an ,,sbir
 or ,,/tr aw>d "u ! ,,sbir or ,,/tr     
program ( ! ag5cy2 or  7,c7 (f]         
supplem5tal funds to a recipi5t ( an    
,,sbir or ,,/tr aw>d bas$ on ! race1    
g5d]1 or e?nicity ( ! pr9cipal          
inve/igator1 f\nd]1 or key p]sonnel ( a 
small bus9ess conc]n4  4  ,,iii         
,/reaml9+ ,p>ticipation 9 ! ,,sbir &    
,,/tr ,programs  #cja4 ,def9ition ( op5 
topics ,section #i7;e7 ( ! ,small       
,bus9ess ,act 7#ae ,u4,s4,c4 #fch7;e771 
z am5d$ by section #bjb7b71 is am5d$ by 
add+ at ! end ! foll[+3  7#bb7 ! t]m op5
 topic ann\ncem5t means a solicitation =
 ,,sbir or ,,/tr proposals t-- 7,a7 is a
 g5]aliz$ problem /atem5t or broad      
te*nology area & does n conta9 any      
language requir+ t ! solutions t a small
 bus9ess conc]n proposes adh]e to       
specific te*nological specifications2 & 

7,b7 evaluates ! ability ( ! solution   
propos$ by ! small bus9ess conc]n to    
meet ! /at$ innovation ne$ ( ! ag5cy or 
,gov]nm5t end us]2 &  4  #cjb4 ,r$uc+   
adm9i/rative burd5 ,section #i7;jj7 ( ! 
,small ,bus9ess ,act 7#ae ,u4,s4,c4     
#fch7;jj771 z am5d$ by section          
#bja7;a77#a71 is am5d$ by add+ at ! end 
! foll[+3  7#d7 ,r$uc+ adm9i/rative     
burd5  7,a7 ,limit on submissions to a  
solicitation ,a small bus9ess conc]n1   
includ+ its affiliates1 sp9\ts1 or      
subsidi>ies1 may n submit m ?an #c      
proposals to a s+le ,phase ,i           
solicitation or a s+le ,phase ,,ii      
solicitation "u subsection 7cc74  7,b7  
,limit on submissions 9 a s+le ye> ,a   
small bus9ess conc]n1 includ+ its       
affiliates1 sp9\ts1 or subsidi>ies1 may 
n submit m ?an a comb9$ total ( #be     
proposals to ,phase ,i solicitations or 
,phase ,,ii solicitations "u subsection 
7cc7 publi%$ by a s+le ag5cy1 includ+ ! 
compon5ts ( ! ag5cy1 9 a s+le fiscal    
ye>4  4  ,,iv ,protect+ ,am]ican        

,innovation f ,adv]s>ial ,influ5ce      
#dja4 ,def9ition ( =eign risk ,section  
#i7;e7 ( ! ,small ,bus9ess ,act 7#ae    
,u4,s4,c4 #fch7;e771 z am5d$ by section 
#cja1 is am5d$ by add+ at ! end !       
foll[+3  7#bc7 ! t]m =eign risk means1 9
 ! pa/ #aj ye>s1 any =eign affiliation1 
te*nology lic5s+ agreem5t1 jo9t v5ture1 
contractual or f9ancial obligation 7p5d+
 or o!rwise71 inve/m5t agreem5t1 rese>* 
relation%ip 7includ+ co-au?or%ip71 or   
bus9ess relation%ip betwe5-- 7,a7 a     
small bus9ess conc]n 7includ+ all       
subsidi>ies1 sp9\ts1 & affiliates7      
submitt+ a proposal = an ,,sbir or ,,/tr
 program1 & cov]$ individuals1 own]s1 or
 o!r key p]sonnel ( ! small bus9ess     
conc]n2 &  7,b7 an individual1 rese>*   
in/itution1 bus9ess entity1 gov]nm5t1 or
 gov]nm5t-own$ entity 9 a =eign c\ntry (
 conc]n t is disclos$1 z requir$ "u     
subsection 7g7 or subsection 7o71 or    
o!rwise id5tifi$ 9 ! due dilig5ce       
process1 z requir$ "u subsection 7vv74  
4  #djb4 ,bol/]+ rese>* security (      

,,sbir & ,,/tr aw>ds ,section #i ( !    
,small ,bus9ess ,act 7#ae ,u4,s4,c4     
#fch71 z am5d$ by ?is ,act1 is am5d$--  
7#a7 9 subsection 7g7-- 7,a7 by         
r$esignat+ p>agraphs 7#ae71 7#af71 &    
7#ag7 z p>agraphs 7#af71 7#ah7 & 7#ai71 
respectively2  7,b7 by ins]t+ aft]      
p>agraph 7#ad7 ! foll[+3  7#ae7 evaluate
 :e!r a small bus9ess conc]n pres5ts a  
risk to national security = any reason1 
?r\gh measures includ+-- 7,a7 ! due     
dilig5ce process requir$ "u subsection  
7vv72  7,b7 disclosures submitt$ "u ?is 
subsection2 or  7,c7 coord9ation ) !    
,inspector ,g5]al ( ! ag5cy or !        
intellig5ce community 7z def9$ "u       
section #c ( ! ,national ,security ,act 
( #aidg 7#ej ,u4,s4,c4 #cjjc772  2  7,c7
 9 p>agraph 7#af71 z s r$esignat$-- 7i7 
by /rik+ subp>agraph 7,b72  7ii7 by     
/rik+ t-- & all t foll[s ?r\gh ! small  
bus9ess conc]n submitt+ & ins]t+ t !    
small bus9ess conc]n submitt+2  7iii7 by
 r$esignat+ clauses 7i71 7ii71 & 7iii7 z
 subp>agraphs 7,a71 7,b71 & 7,c71       

respectively1 & adju/+ ! m>g9s          
accord+ly2  7iv7 9 subp>agraph 7,b71 z s
 r$esignat$1 by /rik+ or at ! end2  7v7 
9 subp>agraph 7,c71 z s r$esignat$1 by  
/rik+ & at ! end2 &  7vi7 by add+ at !  
end ! foll[+3  7,d7 has a =eign risk    
connect+ ! small bus9ess conc]n to an   
entity1 includ+ any affiliates1 sp9\ts1 
or subsidi>ies ( ! entity1 or individual
 on "o or m ( ! foll[+ li/s3 7i7 !      
,,uflpa ,entity ,li/ ma9ta9$ by !       
,dep>tm5t ( ,homel& ,security2  7ii7 !  
,non-,,sdn ,*9ese ,milit>y-,indu/rial   
,complex ,companies ,li/ ( ! ,(fice (   
,=eign ,assets ,control ma9ta9$ by !    
,dep>tm5t ( ! ,treasury2  7iii7 !       
,section #hhi ,prohibition ,li/ e/abli%$
 "u section #hhi ( ! ,john ,s4 ,mc,cain 
,national ,def5se ,au?orization ,act =  
,fiscal ,ye> #bjai 7,public ,law        
#aae-bcb7 & ma9ta9$ by ! ,dep>tm5t (    
,def5se2  7iv7 ! li/ ( ,*9ese ,milit>y  
companies requir$ "u section #abfj;,h ( 
! ,william ,m4 7,mac7 ,?ornb]ry         
,national ,def5se ,au?orization ,act =  

,fiscal ,ye> #bjba 7,public ,law        
#aaf-bhc7 & ma9ta9$ by ! ,dep>tm5t (    
,def5se2  7v7 ! ,milit>y ,end ,us] ,li/ 
ma9ta9$ by ! ,bureau ( ,indu/ry &       
,security ( ! ,dep>tm5t ( ,comm]ce2     
7vi7 ! ,entity ,li/ ma9ta9$ by ! ,bureau
 ( ,indu/ry & ,security ( ! ,dep>tm5t ( 
,comm]ce2  7vii7 ! ,li/ ( ,equipm5t &   
,s]vices ma9ta9$ by ! ,f$]al            
,communications ,commission2 &  7viii7 !
 ,)hold ,release ,ord]s & ,f9d+s ,li/   
ma9ta9$ by ,u4,s4 ,cu/oms & ,bord]      
,protection2  7,e7 has a =eign risk ) a 
prim>y s\rce t is classifi$2 or  7,f7   
has a =eign risk or ano!r national      
security risk n li/$ 9 /atute or        
regulatory guidance t an ag5cy det]m9es 
w>rants a d5ial2  2  7,d7 by ins]t+ aft]
 p>agraph 7#af71 z s r$esignat$1 !      
foll[+3  7#ag7 n1 & any p]sonnel ( !    
,f$]al ag5cy includ+ te*nical po9ts (   
contact %all n1 communicate to an       
applicant prior to =mal notification (  
an aw>d decision t an application 0 d5i$
 due to a =eign risk2  2 &  7,e7 9      

p>agraph 7#ai71 z s r$esignat$-- 7i7 9  
subp>agraph 7,b71 by /rik+ 7#af77;,a7 & 
ins]t+ 7#ah77;,a72 &  7ii7 9 subp>agraph
 7,c71 by /rik+ 7#af77;,b7 & ins]t+     
7#ah77;,b72 &  7#b7 9 subsection 7o7--  
7,a7 by r$esignat+ p>agraphs 7#ai71     
7#bj71 & 7#ba7 z p>agraphs 7#bj71 7#bb7 
& 7#bc71 respectively2  7,b7 by ins]t+  
aft] p>agraph 7#ah7 ! foll[+3  7#ai7    
evaluate :e!r a small bus9ess conc]n    
pres5ts a risk to national security =   
any reason1 ?r\gh measures includ+--    
7,a7 ! due dilig5ce process requir$ "u  
subsection 7vv72  7,b7 disclosures      
submitt$ "u ?is subsection2 or  7,c7    
coord9ation ) ! ,inspector ,g5]al ( !   
ag5cy or ! intellig5ce community 7z     
def9$ "u section #c ( ! ,national       
,security ,act ( #aidg 7#ej ,u4,s4,c4   
#cjjc772  2  7,c7 9 p>agraph 7#bj71 z s 
r$esignat$-- 7i7 by /rik+ subp>agraph   
7,b72  7ii7 by /rik+ t-- & all t foll[s 
?r\gh ! small bus9ess conc]n submitt+ & 
ins]t+ t ! small bus9ess conc]n         
submitt+2  7iii7 by r$esignat+ clauses  

7i71 7ii71 & 7iii7 z subp>agraphs 7,a71 
7,b71 & 7,c71 respectively1 & adju/+ !  
m>g9s accord+ly2  7iv7 9 subp>agraph    
7,b71 z s r$esignat$1 by /rik+ or at !  
end2  7v7 9 subp>agraph 7,c71 z s       
r$esignat$1 by /rik+ & at ! end2 &  7vi7
 by add+ at ! end ! foll[+3  7,d7 has a 
=eign risk connect+ ! small bus9ess     
conc]n to an entity1 includ+ any        
affiliates1 sp9\ts1 or subsidi>ies ( !  
entity1 or individual on "o or m ( !    
foll[+ li/s3 7i7 ! ,,uflpa ,entity ,li/ 
ma9ta9$ by ! ,dep>tm5t ( ,homel&        
,security2  7ii7 ! ,non-,,sdn ,*9ese    
,milit>y-,indu/rial ,complex ,companies 
,li/ ( ! ,(fice ( ,=eign ,assets        
,control ma9ta9$ by ! ,dep>tm5t ( !     
,treasury2  7iii7 ! ,section #hhi       
,prohibition ,li/ e/abli%$ "u section   
#hhi ( ! ,john ,s4 ,mc,cain ,national   
,def5se ,au?orization ,act = ,fiscal    
,ye> #bjai 7,public ,law #aae-bcb7 &    
ma9ta9$ by ! ,dep>tm5t ( ,def5se2  7iv7 
! li/ ( ,*9ese ,milit>y companies       
requir$ "u section #abfj;,h ( ! ,william

 ,m4 7,mac7 ,?ornb]ry ,national ,def5se 
,au?orization ,act = ,fiscal ,ye> #bjba 
7,public ,law #aaf-bhc7 & ma9ta9$ by !  
,dep>tm5t ( ,def5se2  7v7 ! ,milit>y    
,end ,us] ,li/ ma9ta9$ by ! ,bureau (   
,indu/ry & ,security ( ! ,dep>tm5t (    
,comm]ce2  7vi7 ! ,entity ,li/ ma9ta9$  
by ! ,bureau ( ,indu/ry & ,security ( ! 
,dep>tm5t ( ,comm]ce2  7vii7 ! ,li/ (   
,equipm5t & ,s]vices ma9ta9$ by ! ,f$]al
 ,communications ,commission2 &  7viii7 
! ,)hold ,release ,ord]s & ,f9d+s ,li/  
ma9ta9$ by ,u4,s4 ,cu/oms & ,bord]      
,protection2  7,e7 has a =eign risk ) a 
prim>y s\rce t is classifi$2 or  7,f7   
has a =eign risk or ano!r national      
security risk n li/$ 9 /atute or        
regulatory guidance t an ag5cy det]m9es 
w>rants a d5ial2  2  7,d7 by ins]t+ aft]
 p>agraph 7#bj7 ! foll[+3  7#ba7 n1 &   
any p]sonnel ( ! ,f$]al ag5cy includ+   
te*nical po9ts ( contact %all n1        
communicate to an applicant prior to    
=mal notification ( an aw>d decision t  
an application 0 d5i$ due to a =eign    

risk2  2 &  7,e7 9 p>agraph 7#bc71 z s  
r$esignat$-- 7i7 9 subp>agraph 7,b71 by 
/rik+ 7#bj77;,a7 & ins]t+ 7#bb77;,a72 & 
7ii7 9 subp>agraph 7,c71 by /rik+       
7#bj77;,b7 & ins]t+ 7#bb77;,b74  #djc4  
,/r5g!n+ ! due dilig5ce program to      
assess security risks ,section          
#i7vv77#b7 ( ! ,small ,bus9ess ,act 7#ae
 ,u4,s4,c4 #fch7vv77#b77 is am5d$-- 7#a7
 9 subp>agraph 7,b71 by /rik+ ! p]iod at
 ! end & ins]t+ 2 &2 &  7#b7 by add+ at 
! end ! foll[+3  7,c7 exam9e any        
relation%ip ( a small bus9ess conc]n    
seek+ an aw>d to any entity or          
individual includ$ on ! li/s1 z publi%$ 
on ! date ( ! clos+ ( ! solicitation1   
describ$ "u subsections 7g77#af77;,d7 & 
7o77#bj77;,d74  4  #djd4 ,/r5g!n+ ag5cy 
recov]y au?ority ,section #i ( ! ,small 
,bus9ess ,act 7#ae ,u4,s4,c4 #fch71 z   
am5d$ by ?is ,act1 is am5d$-- 7#a7 9    
subsection 7g77#ah71 z r$esignat$ by    
section #djb-- 7,a7 9 ! matt] prec$+    
subp>agraph 7,a71 by ins]t+ 1 z adju/$ =
 inflation accord+ to ! ,consum] ,price 

,index publi%$ by ! ,bureau ( ,labor    
,/ati/ics1 aft] am\nts2  7,b7 9         
subp>agraph 7,a7-- 7i7 by ins]t+ dur+ ! 
#aj-ye> p]iod beg9n+ on ! date ( ! aw>d1
 or dur+ a long] or indef9ite p]iod z   
det]m9$ by ! head ( ! aw>d+ ag5cy z     
necess>y = national security1 be=e !    
small bus9ess conc]n2 &  7ii7 by /rik+  
or at ! end2  7,c7 9 subp>agraph 7,b7-- 
7i7 by ins]t+ dur+ ! #aj-ye> p]iod      
beg9n+ on ! date ( ! aw>d1 or dur+ a    
long] or indef9ite p]iod z det]m9$ by ! 
head ( ! aw>d+ ag5cy z necess>y =       
national security1 be=e !re is a *ange2 
&  7ii7 by /rik+ & at ! end2 &  7,d7 by 
add+ at ! end ! foll[+3  7,c7 dur+ !    
#e-ye> p]iod beg9n+ on ! date ( ! aw>d1 
or dur+ a long] or indef9ite p]iod z    
det]m9$ by ! head ( ! aw>d+ ag5cy z     
necess>y = national security1 ! small   
bus9ess conc]n sells1 leases1 or        
provides 7?r\gh jo9t rese>*1            
te*nological lic5s+1 or o!rwise7        
intellectual prop]ty t 0 develop$1 :olly
 or 9 "p1 us+ an ,,sbir aw>d to a =eign 

entity or individual unless ! =eign     
entity or individual is incorporat$ 9 or
 a citiz5 ( a c\ntry t is a memb] ( !   
,nor? ,atlantic ,treaty ,organization or
 a major non-,,nato ally1 z describ$ "u 
section #bcbak ( title #bb1 ,unit$      
,/ates ,code2 or  7,d7 dur+ ! #aj-ye>   
p]iod beg9n+ on ! date ( ! aw>d1 or dur+
 a long] or indef9ite p]iod z det]m9$ by
 ! head ( ! aw>d+ ag5cy z necess>y =    
national security1 ! small bus9ess      
conc]n sells1 leases1 or provides 7?r\gh
 jo9t rese>*1 te*nological lic5s+1 or   
o!rwise7 intellectual prop]ty t 0       
develop$1 :olly or 9 "p1 us+ an ,,sbir  
aw>d to an entity1 gov]nm5t1 or         
individual 9 a =eign c\ntry ( conc]n2 & 
2 &  7#b7 9 subsection 7o77#bb71 z      
r$esignat$ by section #djb-- 7,a7 9 !   
matt] prec$+ subp>agraph 7,a71 by ins]t+
 1 z adju/$ = inflation accord+ to !    
,consum] ,price ,index publi%$ by !     
,bureau ( ,labor ,/ati/ics1 aft] am\nts2
  7,b7 9 subp>agraph 7,a7-- 7i7 by      
ins]t+ dur+ ! #aj-ye> p]iod beg9n+ on ! 

date ( ! aw>d1 or dur+ a long] or       
indef9ite p]iod z det]m9$ by ! head ( ! 
aw>d+ ag5cy z necess>y = national       
security1 be=e ! small bus9ess conc]n2 &
  7ii7 by /rik+ or at ! end2  7,c7 9    
subp>agraph 7,b7-- 7i7 by ins]t+ dur+ ! 
#aj-ye> p]iod beg9n+ on ! date ( ! aw>d1
 or dur+ a long] or indef9ite p]iod z   
det]m9$ by ! head ( ! aw>d+ ag5cy z     
necess>y = national security1 be=e !re  
is a *ange2 &  7ii7 by /rik+ & at ! end2
 &  7,d7 by add+ at ! end ! foll[+3     
7,c7 dur+ ! #e ye> p]iod beg9n+ on !    
date ( ! aw>d1 or dur+ a long] or       
indef9ite p]iod z det]m9$ by ! head ( ! 
aw>d+ ag5cy z necess>y = national       
security1 ! small bus9ess conc]n sells1 
leases1 or provides 7?r\gh jo9t rese>*1 
te*nological lic5s+1 or o!rwise7        
intellectual prop]ty t 0 develop$1 :olly
 or 9 "p1 us+ an ,,/tr aw>d to a =eign  
entity or individual unless ! =eign     
entity or individual is incorporat$ 9 or
 a citiz5 ( a c\ntry t is a memb] ( !   
,nor? ,atlantic ,treaty ,organization or

 a major non-,,nato ally1 z describ$ "u 
section #bcbak ( title #bb1 ,unit$      
,/ates ,code2 or  7,d7 dur+ ! #aj-ye>   
p]iod beg9n+ on ! date ( ! aw>d1 or dur+
 a long] or indef9ite p]iod z det]m9$ by
 ! head ( ! aw>d+ ag5cy z necess>y =    
national security1 ! small bus9ess      
conc]n sells1 leases1 or provides 7?r\gh
 jo9t rese>*1 te*nological lic5s+1 or   
o!rwise7 intellectual prop]ty t 0       
develop$1 :olly or 9 "p1 us+ an ,,/tr   
aw>d to an entity1 gov]nm5t1 or         
individual 9 a =eign c\ntry ( conc]n2 & 
4  #dje4 ,be/ practices on inve/or      
in=mational rights ,section #i7uu7 ( !  
,small ,bus9ess ,act 7#ae ,u4,s4,c4     
#fch7uu77 is am5d$ to read z foll[s3    
7uu7 ,be/ practices on inve/or          
in=mational rights  7#a7 ,9 g5]al ,!    
,adm9i/rator1 9 coord9ation ) ! heads ( 
all ag5cies ) an ,,sbir program1 !      
,director ( ! ,:ite ,h\se ,(fice (      
,sci5ce & ,te*nology ,policy1 & !       
,committee on ,=eign ,inve/m5t 9 !      
,unit$ ,/ates1 %all develop be/         

practices to be %>$ ) ea* recipi5t ( an 
,,sbir or ,,/tr aw>d by ! ag5cy grant+ !
 aw>d4  7#b7 ,cont5ts ,! be/ practices  
develop$ "u p>agraph 7#a7 %all include  
recomm5dations = protect+ ! propriet>y  
te*nology & intellectual prop]ty ( !    
small bus9ess conc]n f be+ %>$          
un9t5tionally to =eign individuals &    
entities ?r\gh in=mational rights (     
limit$ p>tn]s 9 v5ture capital1 h$ge    
fund1 or private equity firms t h       
inve/m5ts 9 ,,sbir or ,,/tr recipi5ts4  
4  #djf4 ,,gao report ,p>agraph 7#d7 (  
section #d7;b7 ( ! ,,sbir & ,,/tr       
,ext5sion ,act ( #bjbb 7,public ,law    
#aag-ahc2 #acf ,/at4 #baid7 is am5d$ to 
read z foll[s3  7#d7 ,,gao ,report  7,a7
 ,9 g5]al ,n lat] ?an #a ye> aft] ! date
 ( enactm5t ( ! ,,innovate ,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 section   
#i7vv7 ( ! ,small ,bus9ess ,act 7#ae    
,u4,s4,c4 #fch7vv77 across ,f$]al       
ag5cies requir$ to e/abli% an ,,sbir or 
,,/tr program4  7,b7 ,/udy ,! /udy %all 
evaluate-- 7i7 ! effectiv5ess ( ea*     
,f$]al ag5cy t p>ticipates 9 ! ,,sbir   
program or ,,/tr program 9 id5tify+--   
7,i7 enhanc$ risk 9 cyb]security        
practices 9 ,,sbir & ,,/tr projects2    
7,,ii7 enhanc$ risk 9 pat5ts1 includ+   
co-au?or%ip ) academics 9 =eign c\ntries
 ( conc]n 9 ,,sbir & ,,/tr projects2    
7,,iii7 enhanc$ =eign influ5ce risk     
among employees ( small bus9ess conc]ns 
involv$ 9 ,,sbir & ,,/tr projects2      
7,,iv7 =eign own]%ip ( a small bus9ess  
conc]n seek+ an aw>d1 includ+ ! f9ancial
 ties & obligations 7:i* %all include   
surety1 equity1 & debt obligations7 9   

,,sbir & ,,/tr projects2 &  7,v7        
security risks among applicants to !    
,,sbir program or ! ,,/tr program1      
includ+ connections to an entity1       
includ+ any affiliates1 sp9\ts1 or      
subsidi>ies ( ! entity1 or individual on
 "o or m ( ! li/s ref]5c$ 9 subsection  
7g77#af77;,d72  7ii7 by ye>1 ! numb] (  
proposals & numb] ( small bus9ess       
conc]ns ) =eign risks by ea* ,f$]al     
ag5cy t p>ticipates 9 ! ,,sbir program  
or ,,/tr program1 includ+ a del9eation (
 h[ _m ( ^? small bus9ess conc]ns h     
previ\sly receiv$ an aw>d "u ! ,,sbir   
program or ,,/tr program & ! nature ( ^?
 =eign risks made by ea* ,f$]al ag5cy2 &
  7iii7 ! ext5t to :i* ! ,inspector     
,g5]al & c\nt]9tellig5ce au?orities (   
ea* ,f$]al ag5cy t p>ticipates 9 !      
,,sbir or ,,/tr program effectively     
conducts inve/igations1 audits1         
inspections1 & outrea* relat+ to ! due  
dilig5ce program to assess security     
risks 9 ! ,,sbir or ,,/tr program4  4   
,v ,simplify+ ,,sbir-,,/tr              

,comm]cialization ,/&>ds  #eja4         
,/reaml9+ transition & comm]cialization 
rate b5*m>ks ,section #i7qq7 ( ! ,small 
,bus9ess ,act 7#ae ,u4,s4,c4 #fch7qq77  
is am5d$-- 7#a7 by am5d+ p>agraph       
7#a77;,a77ii7 to read z foll[s3  7ii7 = 
small bus9ess conc]ns t receiv$ or      
receive m ?an #aj ,phase ,i aw>ds1      
e/abli% a m9imum p]=mance /&>d ) respect
 to ! receipt ( ,phase ,,ii aw>ds t %all
 be a ratio ( at lea/ #j4be = ! numb] ( 
,phase ,,ii aw>ds receiv$ z comp>$ to ! 
numb] ( ,phase ,i aw>ds receiv$2 &  2 & 
7#b7 9 p>agraph 7#c7-- 7,a7 9           
subp>agraph 7,a71 by /rik+ clauses 7i7 &
 7ii7 & ins]t+ ! foll[+3  7i7 ,9 g5]al  
,) respect to a small bus9ess conc]n t  
receiv$ or receives m ?an #be ,phase ,i 
aw>ds1 ! m9imum p]=mance /&>d %all be a 
ratio ( at lea/ #j4e = ! numb] ( ,phase 
,,ii aw>ds receiv$ z comp>$ to ! numb] (
 ,phase ,i aw>ds receiv$4  7ii7         
,consequ5ce ( failure to meet /&>d ,if !
 head ( a ,f$]al ag5cy det]m9es t a     
small bus9ess conc]n is n meet+ !       

applicable increas$ m9imum p]=mance /&>d
 e/abli%$ "u clause 7i71 su* small      
bus9ess conc]n may n p>ticipate 9 ,phase
 ,i ( ! ,,sbir or ,,/tr program ( t     
ag5cy dur+ ! #a-ye> p]iod beg9n+ on !   
date on :i* su* det]m9ation is made & ! 
small bus9ess conc]n may n receive m ?an
 #e total ,phase ,i aw>ds f t ag5cy dur+
 ea* #a-ye> p]iod !reaft] until ! small 
bus9ess conc]n surpasses ! m9imum       
p]=mance /&>d e/abli%$ "u clause 7i74  2
 &  7,b7 9 subp>agraph 7,b7-- 7i7 9     
clause 7i71 by /rik+ subclauses 7,i7 &  
7,,ii7 & ins]t+ ! foll[+3  7,i7 )       
respect to a small bus9ess conc]n1      
includ+ its affiliates1 sp9\ts1 &       
subsidi>ies1 t has receiv$ m ?an #be    
,phase ,,ii aw>ds ov] its lifetime1     
require ! sum ( ! annual receipts 7z    
def9$ 9 section #aba4ajd ( title #ac1   
,code ( ,f$]al ,regulations1 or any     
successor regulation7 ( ! small bus9ess 
conc]n f s\rces o!r ?an ,phase ,i or    
,phase ,,ii ,,sbir or ,,/tr aw>ds &     
inve/m5ts receiv$ by ! small bus9ess    

conc]n to at m9imum exce$ ! sum ( !     
doll>s aw>d$ ?r\gh ,phase ,i & ,phase   
,,ii aw>ds s9ce ! date ( ! fir/ su*     
aw>d2 &  7,,ii7 ) respect to a small    
bus9ess conc]n1 includ+ its affiliates1 
sp9\ts1 & subsidi>ies1 t receives m ?an 
#be ,phase ,,ii aw>ds ov] its lifetime1 
require a m9imum ( #fe p]c5t ( ! sum ( !
 annual receipts 7z def9$ 9 section     
#aba4ajd ( title #ac1 ,code ( ,f$]al    
,regulations1 or any successor          
regulation7 ( ! small bus9ess conc]n &  
inve/m5ts receiv$ by ! small bus9ess    
conc]n dur+ ! #c ye>s prec$+ ! mo/ rec5t
 fiscal ye> come f s\rces o!r ?an ,phase
 ,i or ,phase ,,ii ,,sbir or ,,/tr      
aw>ds4  2 &  7ii7 by am5d+ clause 7ii7  
to read z foll[s3  7ii7 ,consequ5ce (   
failure to meet /&>d ,if ! head ( a     
,f$]al ag5cy det]m9es t a small bus9ess 
conc]n is n meet+ an applicable increas$
 m9imum p]=mance /&>d modifi$ "u clause 
7i71 ! small bus9ess conc]n may n apply 
= additional ,phase ,i aw>ds or ,phase  
,,ii aw>ds until ! small bus9ess conc]n 

has receiv$ en\gh annual receipts f     
s\rces o!r ?an an ,,sbir or ,,/tr       
program to surpass ! m9imum p]=mance    
/&>d e/abli%$ "u clause 7i74  4  #ejb4  
,improv+ direct to ,phase ,,ii          
au?orities ,section #i7;cc7 ( ! ,small  
,bus9ess ,act 7#ae ,u4,s4,c4 #fch7;cc77 
is am5d$ to read z foll[s3  7cc7 ,phase 
flexibility  7#a7 ,aw>d+ a ,phase ,,ii  
aw>d abs5t a ,phase ,i aw>d ,ea* ag5cy )
 an ,,sbir program may provide to a     
small bus9ess conc]n an aw>d "u ,phase  
,,ii ( ! ,,sbir program ) respect to a  
project1 )\t reg>d to :e!r ! small      
bus9ess conc]n 0 provid$ an aw>d "u     
,phase ,i ( an ,,sbir program ) respect 
to su* project1 if ! head ( ! ag5cy     
det]m9es t ! small bus9ess conc]n has   
complet$ ! det]m9ations describ$ 9      
subsection 7e77#d77;,a7 ) respect to su*
 project despite n hav+ be5 provid$ a   
,phase ,i aw>d4  7#b7 ,limitations on   
aw>ds  7,a7 ,9 g5]al ,except z provid$ 9
 subp>agraph 7,b71 ! head ( ea* ag5cy ) 
an ,,sbir program may aw>d n m ?an #aj  

p]c5t ( ! funds allocat$ = ! ,,sbir     
program ( ! ag5cy 9 a giv5 fiscal ye> "u
 ! au?ority ( ?is subsection4  7,b7     
,national ,in/itutes ( ,heal? &         
,dep>tm5t ( ,def5se ,! ,director ( !    
,national ,in/itutes ( ,heal? may aw>d n
 m ?an #cj p]c5t ( ! funds allocat$ = ! 
,,sbir program ( ! ,national ,in/itutes 
( ,heal? 9 a giv5 fiscal ye> & !        
,secret>y ( ,def5se may aw>d n m ?an #cj
 p]c5t ( ! funds allocat$ = ! ,,sbir    
program ( ea* compon5t 9 ! ,dep>tm5t (  
,def5se 9 a giv5 fiscal ye> "u !        
au?ority ( ?is subsection4  7,c7 ,limit 
on eligibility = aw>ds ,an ag5cy may n  
make an aw>d "u ?is subsection to a     
small bus9ess conc]n1 includ+ its       
affiliates1 sp9\ts1 & subsidi>ies1 t has
 receiv$ m ?an #be ,phase ,,ii aw>ds4   
7,d7 ,limit on numb] ( aw>ds ,an ag5cy  
may make n m ?an #be aw>ds "u ?is       
subsection to a small bus9ess conc]n1   
includ+ its affiliates1 sp9\ts1 &       
subsidi>ies4  4  #ejc4 ,improv+         
,,sbir-,,/tr data collection  7a7       

,additional data fields 9 ,,sbir        
database ,section #i7k77#a7 ( ! ,small  
,bus9ess ,act 7#ae ,u4,s4,c4            
#fch7k77#a77 is am5d$-- 7#a7 9          
subp>agraph 7,e77iv71 by /rik+ & at !   
end2  7#b7 9 subp>agraph 7,f77v71 by    
/rik+ ! p]iod at ! end & ins]t+ 2 &2 &  
7#c7 by add+ at ! end ! foll[+3  7,g7 = 
ea* aw>d grant$1 :e!r ! aw>d is         
classifi$ or designat$ z-- 7i7 ,phase   
#a;,a1 "u subsection 7pp72  7ii7 direct 
to ,phase ,,ii1 "u subsection 7cc72     
7iii7 subsequ5t ,phase ,,ii1 "u         
subsection 7bb77#a72  7iv7 /rategic     
break?r\gh aw>d "u subsection 7ff77#c72 
7v7 ,phase ,,iii prime contract aw>d2 or
  7vi7 ,phase ,,iii subcontract aw>d4  4
  7b7 ,improv+ ,,fpds data track+  7#a7 
,9 g5]al ,! ,adm9i/rator ( ,g5]al       
,s]vices %all update ! ,f$]al           
,procurem5t ,data ,sy/em describ$ 9     
section #aabb7;a77#d7 ( title #da1      
,unit$ ,/ates ,code1 or any successor   
sy/em1 to-- 7,a7 require report+ on :e!r
 an aw>d "u ! ,,sbir or ,,/tr program is

 classifi$ or designat$ z-- 7i7 ,phase  
#a;,a1 "u subsection 7pp7 ( section #i (
 ! ,small ,bus9ess ,act 7#ae ,u4,s4,c4  
#fch71 z am5d$ by ?is ,act2  7ii7 direct
 to ,phase ,,ii1 "u subsection 7cc7 (   
su* section2  7iii7 subsequ5t ,phase    
,,ii1 "u subsection 7bb77#a7 ( su*      
section2  7iv7 a /rategic break?r\gh    
aw>d "u subsection 7ff77#c7 ( su*       
section2  7v7 a ,phase ,,iii prime      
contract aw>d2 or  7vi7 a ,phase ,,iii  
subcontract aw>d2  7,b7 require report+ 
on :e!r a contract is designat$ z a     
,phase ,,iii contract2 &  7,c7 all[ a   
,gov]nm5t contract+ (fic]1 :5 record+ a 
,phase ,,ii or ,phase ,,iii contract    
foll[+ on f "w done by a small bus9ess  
conc]n dur+ a ,phase ,i or ,phase ,,ii  
aw>d to ref]5ce an ,,sbir or ,,/tr      
contract id5tification numb] = relevant 
prior ,,sbir or ,,/tr "w done4  7#b7 ,no
 new funds ,no additional funds are     
au?oriz$ to be appropriat$ = ! purpose (
 c>ry+ out ?is subsection4  #ejd4       
,/reaml9+ program adm9i/ration ,section 

#i ( ! ,small ,bus9ess ,act 7#ae        
,u4,s4,c4 #fch71 z am5d$ by ?is ,act1 is
 am5d$-- 7#a7 9 subsection 7bb77#c71 by 
ins]t+ or ano!r compon5t ( ! same ,f$]al
 ag5cy aft] ano!r ,f$]al ag5cy2  7#b7 9 
subsection 7gg7-- 7,a7 9 ! head+1 by    
/rik+ ,pilot ,program & ins]t+          
,comm]cialization ,read9ess ,program2   
7,b7 by /rik+ pilot ea* place ! t]m     
appe>s2  7,c7 by /rik+ p>agraph 7#g72   
7,d7 by r$esignat+ p>agraph 7#h7 z      
p>agraph 7#g72 &  7,e7 by am5d+ p>agraph
 7#g71 z s r$esignat$1 to read z foll[s3
  7#g7 ,def9ition ,9 ?is subsection1 !  
t]m cov]$ ,f$]al ag5cy-- 7,a7 means a   
,f$]al ag5cy p>ticipat+ 9 ! ,,sbir      
program or ! ,,/tr program2 &  7,b7 does
 n include ! ,dep>tm5t ( ,def5se4  2    
7#c7 9 subsection 7hh7-- 7,a7 by /rik+  
fund+4-- & all t foll[s ?r\gh ,f$]al    
ag5cies p>ticipat+ & ins]t+             
fund+4--,f$]al ag5cies p>ticipat+2 &    
7,b7 by /rik+ p>agraph 7#b72  7#d7 9    
subsection 7ii77#b77;,b7-- 7,a7 9 clause
 7ii71 by add+ & at ! end2  7,b7 9      

clause 7iii71 by /rik+ 2 & & ins]t+ a   
p]iod2 &  7,c7 by /rik+ clause 7iv72    
7#e7 9 subsection 7qq77#c71 by /rik+    
subp>agraph 7,i72  7#f7 9 subsection    
7vv77#c71 by /rik+ subp>agraph 7,c72    
7#g7 by r$esignat+ subsection 7yy7 z    
subsection 7xx72  7#h7 9 subsection     
7xx71 z s r$esignat$-- 7,a7 9 !         
subsection head+1 by /rik+ ,pilot2  7,b7
 by /rik+ ,,/tr ,program4-- & all t     
foll[s ?r\gh ,n lat] ?an & ins]t+ ,,/tr 
,program4--,n lat] ?an2  7,c7 by /rik+  
p>agraph 7#b72 &  7,d7 by /rik+ pilot2  
7#i7 by r$esignat+ subsection 7zz7 z    
subsection 7yy72 &  7#aj7 9 subsection  
7yy71 z s r$esignat$-- 7,a7 9 !         
subsection head+1 by /rik+ ,pilot2  7,b7
 9 p>agraph 7#a7-- 7i7 9 ! p>agraph     
head+1 by /rik+ ,pilot & ins]t+         
,program2  7ii7 9 subp>agraph 7,b71 by  
/rik+ #c4be & ins]t+ #c4ej2 &  7iii7 9  
subp>agraph 7,c71 by /rik+ #j4df &      
ins]t+ #j4ba2  7,c7 by /rik+ p>agraph   
7#c72 &  7,d7 by /rik+ pilot ea* place !
 t]m appe>s4  #eje4 ,ext5d+ ,,sbir &    

,,/tr au?orization ,section #i ( !      
,small ,bus9ess ,act 7#ae ,u4,s4,c4     
#fch71 z am5d$ by ?is ,act1 is am5d$--  
7#a7 9 subsection 7m71 by /rik+ #bjbe & 
ins]t+ #bjbh2 &  7#b7 9 subsection      
7n77#a77;,a71 by /rik+ #bjbe & ins]t+   
#bjbh4