---
kind: "section"
citation: "15 U.S.C. § 638"
title: "15"
title_heading: "Commerce and Trade"
number: "638"
heading: "Research and development"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/15/638"
units:
  - "Chapter 14A — Aid to Small Business"
---

# §638. Research and development

- (a) **Declaration of policy—** Research and development are major factors in the growth and progress of industry and the national economy. The expense of carrying on research and development programs is beyond the means of many small-business concerns, and such concerns are handicapped in obtaining the benefits of research and development programs conducted at Government expense. These small-business concerns are thereby placed at a competitive disadvantage. This weakens the competitive free enterprise system and prevents the orderly development of the national economy. It is the policy of the Congress that assistance be given to small-business concerns to enable them to undertake and to obtain the benefits of research and development in order to maintain and strengthen the competitive free enterprise system and the national economy.
- (b) **Assistance to small-business concerns—** It shall be the duty of the [Administration](/usc/15/636e.md?p=1), and it is empowered—
  - (1) to assist small-business concerns to obtain Government contracts for research and development;
  - (2) to assist small-business concerns to obtain the benefits of research and development performed under Government contracts or at Government expense;
  - (3) to provide technical assistance to small-business concerns to accomplish the purposes of this section;
  - (4) to develop and maintain a source file and an information program to assure each qualified and interested [small business concern](/usc/15/636e.md?p=6) the opportunity to participate in [Federal agency](/usc/15/632.md?p=b) small business innovation research programs and small business technology transfer programs;
  - (5) to coordinate with participating [agencies](/usc/15/632.md?p=b) a schedule for release of SBIR and STTR solicitations, and to prepare a master release schedule so as to maximize small businesses’ opportunities to respond to solicitations;
  - (6) to independently survey and monitor the operation of SBIR and STTR programs within participating [Federal agencies](/usc/15/632.md?p=b);
  - (7) to report not less than annually to the Committee on Small Business of the Senate, and to the Committee on Science and the Committee on Small Business of the House of Representatives, on the SBIR and STTR programs of the [Federal agencies](/usc/15/632.md?p=b) and the [Administration](/usc/15/636e.md?p=1)’s information and monitoring efforts related to the SBIR and STTR programs, including—
    - (A) the data on output and outcomes collected pursuant to subsections [(g)(8)](#g-8) and [(o)(9)](#o-9);
    - (B) the number of proposals received from, and the number and total amount of awards to, HUBZone [small business concerns](/usc/15/636e.md?p=6) and firms with venture capital, [hedge fund](/usc/15/632.md?p=bb), or [private equity firm](/usc/15/632.md?p=cc) investment (including those majority-owned by multiple [venture capital operating companies](/usc/15/632.md?p=aa), [hedge funds](/usc/15/632.md?p=bb), or [private equity firms](/usc/15/632.md?p=cc)) under each of the SBIR and STTR programs;
    - (C) a description of the extent to which each [Federal agency](/usc/15/632.md?p=b) is increasing outreach and awards to firms owned and controlled by women or by socially or economically disadvantaged individuals under each of the SBIR and STTR programs;
    - (D) general information about the implementation of, and compliance with the allocation of funds required under, [subsection (dd)](#dd) for firms owned in majority part by [venture capital operating companies](/usc/15/632.md?p=aa), [hedge funds](/usc/15/632.md?p=bb), or [private equity firms](/usc/15/632.md?p=cc) and participating in the SBIR program;
    - (E) a detailed description of appeals of Phase III awards and notices of noncompliance with the SBIR Policy Directive and the STTR Policy Directive filed by the [Administrator](/usc/15/637c.md?p=1) with [Federal agencies](/usc/15/632.md?p=b);
    - (F) an accounting of funds, initiatives, and outcomes under the Commercialization Readiness Program;
    - (G) a description of the extent to which [Federal agencies](/usc/15/632.md?p=b) are providing in a timely manner information needed to maintain the database described in [subsection (k)](#k);
    - (H) with respect to a [Federal agency](/usc/15/632.md?p=b) to which subsection [(f)(1)](#f-1) or [(n)(1)](#n-1) applies, whether the [Federal agency](/usc/15/632.md?p=b) has complied with the applicable subsection for the year covered by the report;
    - (I) the number of applications submitted to each [Federal agency](/usc/15/632.md?p=b) participating in the SBIR or STTR program in innovation open topics as compared to conventional topics, and how many [small business concerns](/usc/15/636e.md?p=6) receive funding from open topics compared to conventional topics;
    - (J) the total number and dollar amount, and average size, of awards made by each [Federal agency](/usc/15/632.md?p=b) participating in the SBIR or STTR program, by phase, from—
      - (i) open topics; and
      - (ii) conventional topics;
    - (K) the minimum performance standards established under [subsection (qq)](#qq), including any applicable modifications under [paragraph (3)](#b-3) of such subsection, and the number of [small business concerns](/usc/15/636e.md?p=6) that did not meet those minimum performance standards, provided that the [Administrator](/usc/15/637c.md?p=1) does not publish any personally identifiable information, the identity of each such [small business concern](/usc/15/636e.md?p=6), or any otherwise sensitive information; and
    - (L) the aggregate number and dollar amount of SBIR and STTR awards made pursuant to waivers under [subsection (qq)(3)(E)](#qq-3-E), provided that the [Administrator](/usc/15/637c.md?p=1) does not publish any personally identifiable information, the identity of each such [small business concern](/usc/15/636e.md?p=6), or any otherwise sensitive information;
  - (8) to provide for and fully implement the tenets of Executive Order No. 13329 (Encouraging Innovation in Manufacturing);
  - (9) to coordinate the implementation of electronic databases at each of the [Federal agencies](/usc/15/632.md?p=b) participating in the SBIR program or the STTR program, including the technical ability of the participating [agencies](/usc/15/632.md?p=b) to electronically share data; and
  - (10) to consult, where appropriate, with personnel from the relevant [Federal agency](/usc/15/632.md?p=b) to assist [small business concerns](/usc/15/636e.md?p=6) participating in a SBIR or STTR program with commercializing research developed under such a program before such [small business concern](/usc/15/636e.md?p=6) is awarded a contract from such [Federal agency](/usc/15/632.md?p=b).
- (c) **Consultation and cooperation with Government agencies; studies and recommendations—** The [Administration](/usc/15/636e.md?p=1) is authorized to consult and cooperate with all Government [agencies](/usc/15/632.md?p=b) and to make studies and recommendations to such [agencies](/usc/15/632.md?p=b), and such [agencies](/usc/15/632.md?p=b) are authorized and directed to cooperate with the [Administration](/usc/15/636e.md?p=1) in order to carry out and to accomplish the purposes of this section.
- (d) **Joint programs; approval of agreements; withdrawal of approval; publication in Federal Register—**
  - (1) The [Administrator](/usc/15/637c.md?p=1) is authorized to consult with representatives of small-business concerns with a view to assisting and encouraging such firms to undertake joint programs for research and development carried out through such corporate or other mechanism as may be most appropriate for the purpose. Such joint programs may, among other things, include the following purposes:
    - (A) to construct, acquire, or establish laboratories and other facilities for the conduct of research;
    - (B) to undertake and utilize applied research;
    - (C) to collect research information related to a particular industry and disseminate it to participating members;
    - (D) to conduct applied research on a protected, proprietary, and contractual basis with member or nonmember firms, Government [agencies](/usc/15/632.md?p=b), and others;
    - (E) to prosecute applications for patents and render patent services for participating members; and
    - (F) to negotiate and grant licenses under patents held under the joint program, and to establish corporations designed to exploit particular patents obtained by it.
  - (2) The [Administrator](/usc/15/637c.md?p=1) may, after consultation with the Attorney General and the Chairman of the Federal Trade Commission, and with the prior written approval of the Attorney General, approve any [agreement](/usc/15/7a.md?p=2) between small-business firms providing for a joint program of research and development, if the [Administrator](/usc/15/637c.md?p=1) finds that the joint program proposed will maintain and strengthen the free enterprise system and the economy of the Nation. The [Administrator](/usc/15/637c.md?p=1) or the Attorney General may at any time withdraw his approval of the [agreement](/usc/15/7a.md?p=2) and the joint program of research and development covered thereby, if he finds that the [agreement](/usc/15/7a.md?p=2) or the joint program carried on under it is no longer in the best interests of the competitive free enterprise system and the economy of the Nation. A copy of the statement of any such finding and approval intended to be within the coverage of this subsection, and a copy of any modification or withdrawal of approval, shall be published in the Federal Register. The authority conferred by this subsection on the [Administrator](/usc/15/637c.md?p=1) shall not be delegated by him.
  - (3) No act or omission to act pursuant to and within the scope of any joint program for research and development, under an [agreement](/usc/15/7a.md?p=2) approved by the [Administrator](/usc/15/637c.md?p=1) under this subsection, shall be construed to be within the prohibitions of the [antitrust laws](/usc/15/37a.md?p=1) or the Federal Trade Commission Act [[15 U.S.C. 41](/usc/15/41.md) et seq.]. Upon publication in the Federal Register of the notice of withdrawal of his approval of the [agreement](/usc/15/7a.md?p=2) granted under this subsection, either by the [Administrator](/usc/15/637c.md?p=1) or by the Attorney General, the provisions of this subsection shall not apply to any subsequent act or omission to act by reason of such [agreement](/usc/15/7a.md?p=2) or approval.
- (e) **Definitions—** For the purpose of this section—
  - (1) the term “extramural budget” means the sum of the total obligations minus amounts obligated for such activities by employees of the [agency](/usc/15/632.md?p=b) in or through Government-owned, Government-operated facilities, except that for the Department of Energy it shall not include amounts obligated for atomic energy defense programs solely for weapons activities or for naval reactor programs, and except that for the [Agency](/usc/15/632.md?p=b) for International Development it shall not include amounts obligated solely for general institutional support of international research centers or for grants to foreign countries;
  - (2) the term “[Federal agency](/usc/15/632.md?p=b)” means an executive [agency](/usc/15/632.md?p=b) as defined in [section 105 of title 5](/usc/5/105.md) or a military department as defined in [section 102](/usc/5/102.md) of such title, except that it does not include any [agency](/usc/15/632.md?p=b) within the Intelligence Community (as the term is defined in section 3.4(f) of Executive Order 12333 or its successor orders);
  - (3) the term “funding [agreement](/usc/15/7a.md?p=2)” means any contract, grant, or cooperative [agreement](/usc/15/7a.md?p=2) entered into between any [Federal agency](/usc/15/632.md?p=b) and any small business for the performance of experimental, developmental, or research work funded in whole or in part by the Federal Government;
  - (4) the term “Small Business Innovation Research Program” or “SBIR” means a program under which a portion of a [Federal agency](/usc/15/632.md?p=b)’s research or research and development effort is reserved for award to [small business concerns](/usc/15/636e.md?p=6) through a uniform process having—
    - (A) a first phase for determining, insofar as possible, the scientific and technical merit and feasibility of ideas that appear to have commercial potential, as described in [subparagraph (B)](#e-4-B), submitted pursuant to SBIR program solicitations;
    - (B) a second phase, which shall not include any invitation, pre-screening, or pre-selection process for eligibility for Phase II, that will further develop proposals which meet particular program needs, in which awards shall be made based on the scientific and technical merit and feasibility of the proposals, as evidenced by the first phase, considering, among other things, the proposal’s commercial potential, as evidenced by—
      - (i) the [small business concern](/usc/15/636e.md?p=6)’s record of successfully commercializing SBIR or other research;
      - (ii) the existence of second phase funding commitments from private sector or non-SBIR funding sources;
      - (iii) the existence of third phase, follow-on commitments for the subject of the research; and
      - (iv) the presence of other indicators of the commercial potential of the idea; and
    - (C) where appropriate, a third phase for work that derives from, extends, or completes efforts made under prior funding [agreements](/usc/15/7a.md?p=2) under the SBIR program—
      - (i) in which commercial applications of SBIR-funded research or research and development are funded by non-Federal sources of capital or, for products or services intended for use by the Federal Government, by follow-on non-SBIR Federal funding awards; or
      - (ii) for which awards from non-SBIR Federal funding sources are used for the continuation of research or research and development that has been competitively selected using peer review or merit-based selection procedures;
  - (5) the term “research” or “research and development” means any activity which is (A) a systematic, intensive study directed toward greater knowledge or understanding of the subject studied; (B) a systematic study directed specifically toward applying new knowledge to meet a recognized need; or (C) a systematic application of knowledge toward the production of useful materials, [devices](/usc/15/55.md?p=d), and systems or methods, including design, development, and improvement of prototypes and new processes to meet specific requirements;
  - (6) the term “Small Business Technology Transfer Program” or “STTR” means a program under which a portion of a [Federal agency](/usc/15/632.md?p=b)’s extramural research or research and development effort is reserved for award to [small business concerns](/usc/15/636e.md?p=6) for cooperative research and development through a uniform process having—
    - (A) a first phase, to determine, to the extent possible, the scientific, technical, and commercial merit and feasibility of ideas submitted pursuant to STTR program solicitations;
    - (B) a second phase, which shall not include any invitation, pre-screening, or pre-selection process for eligibility for Phase II, that will further develop proposals that meet particular program needs, in which awards shall be made based on the scientific, technical, and commercial merit and feasibility of the idea, as evidenced by the first phase and by other relevant information; and
    - (C) where appropriate, a third phase for work that derives from, extends, or completes efforts made under prior funding [agreements](/usc/15/7a.md?p=2) under the STTR program—
      - (i) in which commercial applications of STTR-funded research or research and development are funded by non-Federal sources of capital or, for products or services intended for use by the Federal Government, by follow-on non-STTR Federal funding awards; and
      - (ii) for which awards from non-STTR Federal funding sources are used for the continuation of research or research and development that has been competitively selected using peer review or scientific review criteria;
  - (7) the term “cooperative research and development” means research or research and development conducted jointly by a [small business concern](/usc/15/636e.md?p=6) and a research institution in which not less than 40 percent of the work is performed by the [small business concern](/usc/15/636e.md?p=6), and not less than 30 percent of the work is performed by the research institution;
  - (8) the term “research institution” means a nonprofit institution, as defined in [section 3703(5)](/usc/15/3703.md?p=5)[^1] of this title, and includes federally funded research and development centers, as identified by the National Scientific Foundation in accordance with the governmentwide Federal Acquisition Regulation issued in accordance with [section 1303(a)(1) of title 41](/usc/41/1303.md?p=a-1) (or any successor regulation thereto);
  - (9) the term “commercial applications” shall not be construed to exclude testing and evaluation of products, services, or technologies for use in technical or weapons systems, and further, awards for testing and evaluation of products, services, or technologies for use in technical or weapons systems may be made in either Phase II or Phase III of the Small Business Innovation Research Program and of the Small Business Technology Transfer Program, as defined in this subsection;
  - (10) the term “commercialization” means—
    - (A) the process of developing products, processes, technologies, or services; and
    - (B) the production and delivery (whether by the originating party or by others) of products, processes, technologies, or services for sale to or use by the Federal Government or commercial markets;
  - (11) the term “Phase I” means—
    - (A) with respect to the SBIR program, the first phase described in [paragraph (4)(A)](#e-4-A); and
    - (B) with respect to the STTR program, the first phase described in [paragraph (6)(A)](#e-6-A);
  - (12) the term “Phase II” means—
    - (A) with respect to the SBIR program, the second phase described in [paragraph (4)(B)](#e-4-B); and
    - (B) with respect to the STTR program, the second phase described in [paragraph (6)(B)](#e-6-B);
  - (13) the term “Phase III” means—
    - (A) with respect to the SBIR program, the third phase described in [paragraph (4)(C)](#e-4-C); and
    - (B) with respect to the STTR program, the third phase described in [paragraph (6)(C)](#e-6-C);
  - (14) the term “senior procurement executive” means an official designated under [section 1702(c) of title 41](/usc/41/1702.md?p=c) as the senior procurement executive of a [Federal agency](/usc/15/632.md?p=b) participating in a SBIR or STTR program;
  - (15) the term “covered individual” means an individual who—
    - (A) contributes in a substantive, 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 [agency](/usc/15/632.md?p=b); and
    - (B) is designated as a covered individual by the Federal research [agency](/usc/15/632.md?p=b) concerned;
  - (16) the term “foreign affiliation” means a funded or unfunded academic, professional, or institutional appointment or position with a foreign government or government-owned entity, whether full-time, part-time, or voluntary (including adjunct, visiting, or honorary);
  - (17) the term “foreign country of concern” means the People’s Republic of China, the Democratic People’s Republic of Korea, the Russian Federation, the Islamic Republic of Iran, or any other country determined to be a country of concern by the Secretary of State;
  - (18) the term “malign foreign talent recruitment program” has the meaning given such term in [section 19237 of title 42](/usc/42/19237.md);
  - (19) the term “federally funded award” means a Phase I, Phase II (including a Phase II award under [subsection (cc)](#cc)), or Phase III SBIR or STTR award made using a funding [agreement](/usc/15/7a.md?p=2); and
  - (20) the term “[agency](/usc/15/632.md?p=b) acquisition workforce” means the employees of a [Federal agency](/usc/15/632.md?p=b) that have procurement or acquisition responsibilities, including—
    - (A) employees described in [section 1703 of title 41](/usc/41/1703.md); and
    - (B) individuals that are part of the acquisition workforce, as defined in [section 101(a) of title 10](/usc/10/101.md?p=a).
- (f) **Federal agency expenditures for SBIR program—**
  - (1) **Required expenditure amounts—** Except as provided in [paragraph (2)(B)](#f-2-B), each [Federal agency](/usc/15/632.md?p=b) which has an extramural budget for research or research and development in excess of $100,000,000 for fiscal year 1992, or any fiscal year thereafter, shall expend with [small business concerns](/usc/15/636e.md?p=6)—
    - (A) not less than 1.5 percent of such budget in each of fiscal years 1993 and 1994;
    - (B) not less than 2.0 percent of such budget in each of fiscal years 1995 and 1996;
    - (C) not less than 2.5 percent of such budget in each of fiscal years 1997 through 2011;
    - (D) not less than 2.6 percent of such budget in fiscal year 2012;
    - (E) not less than 2.7 percent of such budget in fiscal year 2013;
    - (F) not less than 2.8 percent of such budget in fiscal year 2014;
    - (G) not less than 2.9 percent of such budget in fiscal year 2015;
    - (H) not less than 3.0 percent of such budget in fiscal year 2016; and
    - (I) not less than 3.2 percent of such budget in fiscal year 2017 and each fiscal year thereafter,

    specifically in connection with SBIR programs which meet the requirements of this section, policy directives, and regulations issued under this section.

  - (2) **Limitations—** A [Federal agency](/usc/15/632.md?p=b) shall not—
    - (A) use any of its SBIR budget established pursuant to [paragraph (1)](#f-1) for the purpose of funding administrative costs of the program, including costs associated with salaries and expenses; or
    - (B) make available for the purpose of meeting the requirements of [paragraph (1)](#f-1) an amount of its extramural budget for basic research which exceeds the percentages specified in [paragraph (1)](#f-1).
  - (3) **Exclusion of certain funding agreements—** Funding [agreements](/usc/15/7a.md?p=2) with [small business concerns](/usc/15/636e.md?p=6) for research or research and development which result from competitive or single source selections other than an SBIR program shall not be considered to meet any portion of the percentage requirements of [paragraph (1)](#f-1).
  - (4) **Rule of construction—** Nothing in this subsection may be construed to prohibit a [Federal agency](/usc/15/632.md?p=b) from expending with [small business concerns](/usc/15/636e.md?p=6) an amount of the extramural budget for research or research and development of the [agency](/usc/15/632.md?p=b) that exceeds the amount required under [paragraph (1)](#f-1).
- (g) **Administration of small business innovation research programs by Federal agencies required to establish such programs—** Each [Federal agency](/usc/15/632.md?p=b) required by [subsection (f)](#f) to establish a small business innovation research program shall, in accordance with this chapter and regulations issued hereunder—
  - (1) unilaterally determine categories of projects to be in its SBIR program;
  - (2) issue small business innovation research solicitations in accordance with a schedule determined cooperatively with the Small Business [Administration](/usc/15/636e.md?p=1);
  - (3) unilaterally determine research topics within the [agency](/usc/15/632.md?p=b)’s SBIR solicitations, giving special consideration to broad research topics and to topics that further 1 or more critical technologies, as identified by—
    - (A) the National Critical Technologies Panel (or its successor) in the 1991 report required under section 6683[^1] of title 42, and in subsequent reports issued under that authority; or
    - (B) the Secretary of Defense, in the 1992 report issued in accordance with section 2522[^1] of title 10, and in subsequent reports issued under that authority;
  - (4)
    - (A) unilaterally receive and evaluate proposals resulting from SBIR proposals; and
    - (B) make a final decision on each proposal submitted under the SBIR program—
      - (i) not later than 1 year after the date on which the applicable solicitation closes, if with respect to the National Institutes of Health or the National Science Foundation, or 90 days after the date on which the applicable solicitation closes, if with respect to any other participating [agency](/usc/15/632.md?p=b); or
      - (ii) if the [Administrator](/usc/15/637c.md?p=1) authorizes an extension with respect to a solicitation, not later than 90 days after the date that would otherwise be applicable to the [agency](/usc/15/632.md?p=b) under [clause (i)](#g-4-B-i);
  - (5) subject to [subsection (l)](#l), unilaterally select awardees for its SBIR funding [agreements](/usc/15/7a.md?p=2) and inform each awardee under such an [agreement](/usc/15/7a.md?p=2), to the extent possible, of the expenses of the awardee that will be allowable under the funding [agreement](/usc/15/7a.md?p=2);
  - (6) administer its own SBIR funding [agreements](/usc/15/7a.md?p=2) (or delegate such [administration](/usc/15/636e.md?p=1) to another [agency](/usc/15/632.md?p=b));
  - (7) make payments to recipients of SBIR funding [agreements](/usc/15/7a.md?p=2) on the basis of progress toward or completion of the funding [agreement](/usc/15/7a.md?p=2) requirements and, in all cases, make payment to recipients under such [agreements](/usc/15/7a.md?p=2) in full, subject to audit, on or before the last day of the 12-month period beginning on the date of completion of such requirements;
  - (8) collect annually, and maintain in a common format in accordance with the simplified reporting requirements under [subsection (v)](#v), such information from awardees as is necessary to assess the SBIR program, including information necessary to maintain the database described in [subsection (k)](#k), including—
    - (A) whether an awardee—
      - (i) has venture capital, [hedge fund](/usc/15/632.md?p=bb), or [private equity firm](/usc/15/632.md?p=cc) investment or is majority-owned by multiple [venture capital operating companies](/usc/15/632.md?p=aa), [hedge funds](/usc/15/632.md?p=bb), or [private equity firms](/usc/15/632.md?p=cc) and, if so—
        - (I) the amount of venture capital, [hedge fund](/usc/15/632.md?p=bb), or [private equity firm](/usc/15/632.md?p=cc) investment that the awardee has received as of the date of the award; and
        - (II) the amount of additional capital that the awardee has invested in the SBIR technology;
      - (ii) has an investor that—
        - (I) is an individual who is not a citizen of the United States or a lawful permanent resident of the United States and, if so, the name of any such individual; or
        - (II) is a [person](/usc/15/7a.md?p=6) that is not an individual and is not organized under the laws of a [State](/usc/15/15g.md?p=2) or the United States and, if so, the name of any such [person](/usc/15/7a.md?p=6);
      - (iii) is owned by a woman or has a woman as a principal investigator;[^2]
      - (iv) is owned by a socially or economically disadvantaged individual or has a socially or economically disadvantaged individual as a principal investigator;[^2]
      - (v) is a faculty member or a student of an institution of higher education, as that term is defined in [section 1001 of title 20](/usc/20/1001.md); or
      - (vi) is located in a [State](/usc/15/15g.md?p=2) described in [subsection (u)(3)](#u-3);
    - (B) a justification statement from the [agency](/usc/15/632.md?p=b), if an awardee receives an award in an amount that is more than the award guidelines under this section; and
    - (C) data with respect to the Federal and [State](/usc/15/15g.md?p=2) Technology Partnership Program (FAST Program);
  - (9) make an annual report on the SBIR program to the Small Business [Administration](/usc/15/636e.md?p=1) and the Office of Science and Technology Policy;
  - (10) include, as part of its annual performance plan as required by subsections (a) and (b) of [section 1115 of title 31](/usc/31/1115.md), a section on its SBIR program, which section shall describe whether or not the [Federal agency](/usc/15/632.md?p=b) complied with the requirements of [subsection (f)](#f) for the year covered by that plan and include a justification for failure to comply (if applicable),,[^3] and shall submit such section to the Committee on Small Business of the Senate, and the Committee on Science and the Committee on Small Business of the House of Representatives;
  - (11) provide for and fully implement the tenets of Executive Order No. 13329 (Encouraging Innovation in Manufacturing);
  - (12) provide timely notice to the [Administrator](/usc/15/637c.md?p=1) of any case or controversy before any Federal judicial or administrative tribunal concerning the SBIR program of the [Federal agency](/usc/15/632.md?p=b);
  - (13) require each [small business concern](/usc/15/636e.md?p=6) submitting a proposal or application for a federally funded award to disclose in the proposal or application—
    - (A) the identity of all owners and covered individuals of the [small business concern](/usc/15/636e.md?p=6) who are a party to any foreign talent recruitment program of any foreign country of concern, including the People’s Republic of China;
    - (B) the existence of any joint venture or subsidiary of the [small business concern](/usc/15/636e.md?p=6) that is based in, funded by, or has a foreign affiliation with any foreign country of concern, including the People’s Republic of China;
    - (C) any current or pending contractual or financial obligation or other [agreement](/usc/15/7a.md?p=2) specific to a business arrangement, or joint venture-like arrangement with an enterprise owned by a foreign [state](/usc/15/15g.md?p=2) or any foreign entity;
    - (D) whether the [small business concern](/usc/15/636e.md?p=6) is wholly owned in the People’s Republic of China or another foreign country;
    - (E) the percentage, if any, 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 concern, including the People’s Republic of China;
    - (F) any technology licensing or intellectual property sales to a foreign country of concern, including the People’s Republic of China, during the 5-year period preceding submission of the proposal; and
    - (G) any foreign business entity, offshore entity, or entity outside the United States related to the [small business concern](/usc/15/636e.md?p=6);
  - (14) after reviewing the disclosures of a [small business concern](/usc/15/636e.md?p=6) under [paragraph (13)](#g-13), and if determined appropriate by the head of such [Federal agency](/usc/15/632.md?p=b), request such [small business concern](/usc/15/636e.md?p=6) to provide true copies of any contractual or financial obligation or other [agreement](/usc/15/7a.md?p=2) specific to a business arrangement, or joint-venture like arrangement with an enterprise owned by a foreign [state](/usc/15/15g.md?p=2) or any foreign entity in effect during the 5-year period preceding submission of the proposal with respect to which such [small business concern](/usc/15/636e.md?p=6) made such disclosures;
  - (15) evaluate whether a [small business concern](/usc/15/636e.md?p=6) presents a security risk for any reason, through measures including—
    - (A) the due diligence process required under [subsection (vv)](#vv);
    - (B) disclosures submitted under this subsection; or
    - (C) coordination with the intelligence community, as defined in [section 3003 of title 50](/usc/50/3003.md), Federal law enforcement, and other counterintelligence capabilities of the Federal Government;
  - (16) not make an award under the SBIR program of the [Federal agency](/usc/15/632.md?p=b) to a [small business concern](/usc/15/636e.md?p=6) if the head of the [Federal agency](/usc/15/632.md?p=b) determines that the [small business concern](/usc/15/636e.md?p=6) submitting the proposal or application—
    - (A) has an owner or covered individual that is party to a malign foreign talent recruitment program;
    - (B) has a business entity, parent company, or subsidiary located in the People’s Republic of China or another foreign country of concern;
    - (C) 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 concern;
    - (D) has a security risk connecting the [small business concern](/usc/15/636e.md?p=6) to an entity, including any affiliates of the entity, or individual on—
      - (i) the UFLPA Entity List maintained by the Department of Homeland Security;
      - (ii) the Non-SDN Chinese Military-Industrial Complex Companies List of the Office of Foreign Assets Control maintained by the Department of the Treasury;
      - (iii) the Section 889 Prohibition List established under section 889 of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 (Public Law 115–232; 132 Stat. 1917) and maintained by the Department of Defense;
      - (iv) the list of Chinese Military companies required under section 1260H of the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021 ([10 U.S.C. 113](/usc/10/113.md) note) and maintained by the Department of Defense;
      - (v) the Military End User List maintained by the Bureau of Industry and Security of the Department of Commerce;
      - (vi) the Entity List maintained by the Bureau of Industry and Security of the Department of Commerce;
      - (vii) the List of Equipment and Services maintained by the Federal Communications Commission; or
      - (viii) the Withhold Release Orders and Findings List maintained by U.S. Customs and Border Protection;
    - (E) has a security risk with a primary source that is classified; or
    - (F) has a security risk that the [Federal agency](/usc/15/632.md?p=b) determines warrants a denial;
  - (17) provide for—
    - (A) a process under which, upon making an award decision to deny an application on the basis of a determination under [paragraph (16)](#g-16), or upon making a determination under [paragraph (16)](#g-16) that a [small business concern](/usc/15/636e.md?p=6) has a security risk described in that paragraph, the [Federal agency](/usc/15/632.md?p=b) provides to the [small business concern](/usc/15/636e.md?p=6), as appropriate pursuant to the discretion of the [Federal agency](/usc/15/632.md?p=b) and in a manner that does not compromise national security, a notification—
      - (i) advising the [small business concern](/usc/15/636e.md?p=6) of such determination; and
      - (ii) identifying the basis for such determination; and
    - (B) a policy that clarifies that receipt of an award decision denying an application does not prohibit the [small business concern](/usc/15/636e.md?p=6) from being eligible for an award in a subsequent award cycle;
  - (18) require a [small business concern](/usc/15/636e.md?p=6) receiving an award under its SBIR program to repay all amounts received from the [Federal agency](/usc/15/632.md?p=b) under the award if—
    - (A) the [small business concern](/usc/15/636e.md?p=6) makes a material misstatement that the [Federal agency](/usc/15/632.md?p=b) determines poses a risk to national security; or
    - (B) there is a change in ownership, change to entity structure, or other substantial change in circumstances of the [small business concern](/usc/15/636e.md?p=6) that the [Federal agency](/usc/15/632.md?p=b) determines poses a risk to national security; and
  - (19) require a [small business concern](/usc/15/636e.md?p=6) receiving an award under its SBIR program to regularly report to the [Federal agency](/usc/15/632.md?p=b) and the [Administration](/usc/15/636e.md?p=1) throughout the duration of the award on—
    - (A) any change to a disclosure required under subparagraphs [(A)](#g-13-A) through [(G)](#g-13-G) of paragraph (13);
    - (B) any material misstatement made under [paragraph (18)(A)](#g-18-A); and
    - (C) any change described in [paragraph (18)(B)](#g-18-B).
- (h) **Establishment of goals for funding agreements for research or research and development to small business concerns by agencies having budg­ets for research and development—** In addition to the requirements of [subsection (f)](#f), each [Federal agency](/usc/15/632.md?p=b) which has a budget for research or research and development in excess of $20,000,000 for any fiscal year beginning with fiscal year 1983 or subsequent fiscal year shall establish goals specifically for funding [agreements](/usc/15/7a.md?p=2) for research or research and development to [small business concerns](/usc/15/636e.md?p=6), and no goal established under this subsection shall be less than the percentage of the [agency](/usc/15/632.md?p=b)’s research or research and development budget expended under funding [agreements](/usc/15/7a.md?p=2) with [small business concerns](/usc/15/636e.md?p=6) in the immediately preceding fiscal year.
- (i) **Annual reporting—**
  - (1) **In general—** Each [Federal agency](/usc/15/632.md?p=b) required by this section to have an SBIR program or to establish goals shall report annually to the Small Business [Administration](/usc/15/636e.md?p=1) the number of awards (including awards under [subsection (y)](#y)) pursuant to grants, contracts, or cooperative [agreements](/usc/15/7a.md?p=2) over $10,000 in amount and the dollar value of all such awards, identifying SBIR awards and comparing the number and amount of such awards with awards to other than [small business concerns](/usc/15/636e.md?p=6).
  - (2) **Calculation of extramural budget—**
    - (A) **Methodology—** Not later than 4 months after the date of the enactment of each appropriations Act for a [Federal agency](/usc/15/632.md?p=b) required by this section to have an SBIR program, the [Federal agency](/usc/15/632.md?p=b) shall submit to the [Administrator](/usc/15/637c.md?p=1) a report, which shall include a description of the methodology used for calculating the amount of the extramural budget of that [Federal agency](/usc/15/632.md?p=b).
    - (B) **Administrator’s analysis—** The [Administrator](/usc/15/637c.md?p=1) shall include an analysis of the methodology received from each [Federal agency](/usc/15/632.md?p=b) referred to in [subparagraph (A)](#i-2-A) in the report required by [subsection (b)(7)](#b-7).
- (j) **Small Business Administration policy directives for the general conduct of small business innovation research programs—**
  - (1) **Policy directives—** The Small Business [Administration](/usc/15/636e.md?p=1), after consultation with the [Administrator](/usc/15/637c.md?p=1) of the Office of Federal Procurement Policy, the Director of the Office of Science and Technology Policy, and the Intergovernmental Affairs Division of the Office of Management and Budget, shall, within one hundred and twenty days of July 22, 1982, issue policy directives for the general conduct of the SBIR programs within the Federal Government, including providing for—
    - (A) simplified, standardized, and timely SBIR solicitations;
    - (B) a simplified, standardized funding process which provides for (i) the timely receipt and review of proposals; (ii) outside peer review for at least Phase II proposals, if appropriate; (iii) protection of proprietary information provided in proposals; (iv) selection of awardees; (v) retention of rights in data generated in the performance of the contract by the [small business concern](/usc/15/636e.md?p=6); (vi) transfer of title to property provided by the [agency](/usc/15/632.md?p=b) to the [small business concern](/usc/15/636e.md?p=6) if such a transfer would be more cost effective than recovery of the property by the [agency](/usc/15/632.md?p=b); (vii) cost sharing; and (viii) cost principles and payment schedules;
    - (C) exemptions from the regulations under [paragraph (2)](#j-2)[^4] if national security or intelligence functions clearly would be jeopardized;
    - (D) minimizing regulatory burden associated with participation in the SBIR program for the [small business concern](/usc/15/636e.md?p=6) which will stimulate the cost-effective conduct of Federal research and development and the likelihood of commercialization of the results of research and development conducted under the SBIR program;
    - (E) simplified, standardized, and timely annual report on the SBIR program to the Small Business [Administration](/usc/15/636e.md?p=1) and the Office of Science and Technology Policy;
    - (F) standardized and orderly withdrawal from program participation by an [agency](/usc/15/632.md?p=b) having a SBIR program; at the discretion of the [Administration](/usc/15/636e.md?p=1), such directives may require a phased withdrawal over a period of time sufficient in duration to minimize any adverse impact on [small business concerns](/usc/15/636e.md?p=6); and
    - (G) the voluntary participation in a SBIR program by a [Federal agency](/usc/15/632.md?p=b) not required to establish such a program pursuant to [subsection (f)](#f).
  - (2) **Modifications—** Not later than 90 days after October 28, 1992, the [Administrator](/usc/15/637c.md?p=1) shall modify the policy directives issued pursuant to this subsection to provide for—
    - (A) retention by a [small business concern](/usc/15/636e.md?p=6) of the rights to data generated by the concern in the performance of an SBIR award for a period of not less than 4 years;
    - (B) continued use by a [small business concern](/usc/15/636e.md?p=6) participating in Phase III of the SBIR program, as a directed bailment, of any property transferred by a [Federal agency](/usc/15/632.md?p=b) to the [small business concern](/usc/15/636e.md?p=6) in Phase II of an SBIR program for a period of not less than 2 years, beginning on the initial date of the concern’s participation in Phase III of such program;
    - (C) procedures to ensure, to the extent practicable, that an [agency](/usc/15/632.md?p=b) which intends to pursue research, development, or production of a technology developed by a [small business concern](/usc/15/636e.md?p=6) under an SBIR program enters into follow-on, non-SBIR funding [agreements](/usc/15/7a.md?p=2) with the [small business concern](/usc/15/636e.md?p=6) for such research, development, or production;
    - (D) an increase to $150,000 in the amount of funds which an [agency](/usc/15/632.md?p=b) may award in Phase I of an SBIR program, and to $1,000,000 in Phase II of an SBIR program, and an adjustment of such amounts every year for inflation;
    - (E) a process for notifying the participating SBIR [agencies](/usc/15/632.md?p=b) and potential SBIR participants of the 1991, 1992, and the current critical technologies, as identified—
      - (i) by the National Critical Technologies Panel (or its successor), in accordance with section 6683[^1] of title 42; or
      - (ii) by the Secretary of Defense, in accordance with section 2522[^1] of title 10;
    - (F) enhanced outreach efforts to increase the participation of socially and economically disadvantaged [small business concerns](/usc/15/636e.md?p=6), as defined in [section 637(a)(4) of this title](/usc/15/637.md?p=a-4), and the participation of small businesses that are 51 percent owned and controlled by women in technological innovation and in SBIR programs, including Phase III of such programs, and the collection of data to document such participation;
    - (G) technical and programmatic guidance to encourage [agencies](/usc/15/632.md?p=b) to develop gap-funding programs to address the delay between an award for Phase I of an SBIR program and the application for and extension of an award for Phase II of such program;
    - (H) procedures to ensure that a [small business concern](/usc/15/636e.md?p=6) that submits a proposal for a funding [agreement](/usc/15/7a.md?p=2) for Phase I of an SBIR program and that has received more than 15 Phase II SBIR awards during the preceding 5 fiscal years is able to demonstrate the extent to which it was able to secure Phase III funding to develop concepts resulting from previous Phase II SBIR awards; and
    - (I) procedures to ensure that [agencies](/usc/15/632.md?p=b) participating in the SBIR program retain the information submitted under [subparagraph (H)](#j-2-H) at least until the Government Accountability Office submits the report required under section 105 of the Small Business Research and Development Enhancement Act of 1992.
  - (3) **Additional modifications—** Not later than 120 days after December 21, 2000, the [Administrator](/usc/15/637c.md?p=1) shall modify the policy directives issued pursuant to this subsection—
    - (A) to clarify that the rights provided for under [paragraph (2)(A)](#j-2-A) apply to all Federal funding awards under this section, including Phase I, Phase II, and Phase III;
    - (B) to provide for the requirement of a succinct commercialization plan with each application for a Phase II award that is moving toward commercialization;
    - (C) to require [agencies](/usc/15/632.md?p=b) to report to the [Administration](/usc/15/636e.md?p=1), not less frequently than annually, all instances in which an [agency](/usc/15/632.md?p=b) pursued research, development, or production of a technology developed by a [small business concern](/usc/15/636e.md?p=6) using an award made under the SBIR program of that [agency](/usc/15/632.md?p=b), and determined that it was not practicable to enter into a follow-on non-SBIR program funding [agreement](/usc/15/7a.md?p=2) with the [small business concern](/usc/15/636e.md?p=6), which report shall include, at a minimum—
      - (i) the reasons why the follow-on funding [agreement](/usc/15/7a.md?p=2) with the [small business concern](/usc/15/636e.md?p=6) was not practicable;
      - (ii) the identity of the entity with which the [agency](/usc/15/632.md?p=b) contracted to perform the research, development, or production; and
      - (iii) a description of the type of funding [agreement](/usc/15/7a.md?p=2) under which the research, development, or production was obtained; and
    - (D) to implement [subsection (v)](#v), including establishing standardized procedures for the provision of information pursuant to [subsection (k)(3)](#k-3).
  - (4) **Modifications relating to procurement center representatives—** Upon the enactment of this paragraph, the [Administrator](/usc/15/637c.md?p=1) shall modify the policy directives issued pursuant to this subsection to require procurement center representatives (as described in [section 644(l)](/usc/15/644.md?p=l) of this title) to consult with the appropriate personnel from the relevant [Federal agency](/usc/15/632.md?p=b), to assist [small business concerns](/usc/15/636e.md?p=6) participating in the SBIR program, particularly in Phase III, and advocate for the maximum practicable use and transition of products, services, and technologies developed under SBIR or STTR programs to Phase III by means of Phase III awards to [small business concerns](/usc/15/636e.md?p=6).
- (k) **Database—**
  - (1) **Public database—** Not later than 180 days after December 21, 2000, the [Administrator](/usc/15/637c.md?p=1) shall develop, maintain, and make available to the public a searchable, up-to-date, electronic database that includes—
    - (A) the name, size, location, and an identifying number assigned by the [Administrator](/usc/15/637c.md?p=1), of each [small business concern](/usc/15/636e.md?p=6) that has received a Phase I or Phase II SBIR or STTR award from a [Federal agency](/usc/15/632.md?p=b);
    - (B) a description of each Phase I or Phase II SBIR or STTR award received by that [small business concern](/usc/15/636e.md?p=6), including—
      - (i) an abstract of the project funded by the award, excluding any proprietary information so identified by the [small business concern](/usc/15/636e.md?p=6);
      - (ii) the [Federal agency](/usc/15/632.md?p=b) making the award; and
      - (iii) the date and amount of the award;
    - (C) an identification of any business concern or subsidiary established for the commercial application of a product or service for which an SBIR or STTR award is made;
    - (D) information regarding mentors and Mentoring Networks, as required by [section 657e(d) of this title](/usc/15/657e.md?p=d);
    - (E) with respect to assistance under the STTR program only—
      - (i) whether the [small business concern](/usc/15/636e.md?p=6) or the research institution initiated their collaboration on each assisted STTR project;
      - (ii) whether the [small business concern](/usc/15/636e.md?p=6) or the research institution originated any technology relating to the assisted STTR project;
      - (iii) the length of time it took to negotiate any licensing [agreement](/usc/15/7a.md?p=2) between the [small business concern](/usc/15/636e.md?p=6) and the research institution under each assisted STTR project; and
      - (iv) how the proceeds from commercialization, marketing, or sale of technology resulting from each assisted STTR project were allocated (by percentage) between the [small business concern](/usc/15/636e.md?p=6) and the research institution;
    - (F) for each [small business concern](/usc/15/636e.md?p=6) that has received a Phase I or Phase II SBIR or STTR award from a [Federal agency](/usc/15/632.md?p=b), whether the [small business concern](/usc/15/636e.md?p=6)—
      - (i) has venture capital, [hedge fund](/usc/15/632.md?p=bb), or [private equity firm](/usc/15/632.md?p=cc) investment and, if so, whether the [small business concern](/usc/15/636e.md?p=6) is registered as majority-owned by multiple [venture capital operating companies](/usc/15/632.md?p=aa), [hedge funds](/usc/15/632.md?p=bb), or [private equity firms](/usc/15/632.md?p=cc) as required under [subsection (dd)(3)](#dd-3);
      - (ii) is owned by a woman or has a woman as a principal investigator;[^2]
      - (iii) is owned by a socially or economically disadvantaged individual or has a socially or economically disadvantaged individual as a principal investigator;[^2]
      - (iv) is owned by a faculty member or a student of an institution of higher education, as that term is defined in [section 1001 of title 20](/usc/20/1001.md); or
      - (v) received assistance under the Federal and [State](/usc/15/15g.md?p=2) Technology Partnership Program (FAST Program); and
    - (G) for each award granted, whether the award is classified or designated as—
      - (i) direct to Phase II, under [subsection (cc)](#cc);
      - (ii) subsequent Phase II, under [subsection (bb)(1)](#bb-1);
      - (iii) a strategic breakthrough award under [subsection (ff)(3)](#ff-3);
      - (iv) a Phase III [prime contract](/usc/15/632.md?p=m-1) award; or
      - (v) a Phase III [subcontract](/usc/15/632.md?p=dd-1) award.
  - (2) **Government database—** Not later than 90 days after December 31, 2011, the [Administrator](/usc/15/637c.md?p=1), in consultation with [Federal agencies](/usc/15/632.md?p=b) required to have an SBIR program pursuant to [subsection (f)(1)](#f-1) or an STTR program pursuant to [subsection (n)(1)](#n-1), shall develop and maintain a database to be used exclusively for SBIR and STTR program evaluation that—
    - (A) contains for each [small business concern](/usc/15/636e.md?p=6) that applies for, submits a proposal for, or receives an award under Phase I or Phase II of the SBIR program or the STTR program—
      - (i) the name, size, and location of, and the identifying number assigned by the [Administration](/usc/15/636e.md?p=1) to, the [small business concern](/usc/15/636e.md?p=6);
      - (ii) an abstract of the applicable project;
      - (iii) the specific aims of the project;
      - (iv) the number of employees of the [small business concern](/usc/15/636e.md?p=6);
      - (v) the names and titles of the key individuals that will carry out the project, the position each key individual holds in the [small business concern](/usc/15/636e.md?p=6), and contact information for each key individual;
      - (vi) the percentage of effort each individual described in [clause (v)](#k-2-A-v) will contribute to the project;
      - (vii) whether the [small business concern](/usc/15/636e.md?p=6) is majority-owned by multiple [venture capital operating companies](/usc/15/632.md?p=aa), [hedge funds](/usc/15/632.md?p=bb), or [private equity firms](/usc/15/632.md?p=cc); and
      - (viii) the [Federal agency](/usc/15/632.md?p=b) to which the application is made and contact information for the [person](/usc/15/7a.md?p=6) or office within the [Federal agency](/usc/15/632.md?p=b) that is responsible for reviewing applications and making awards under the SBIR program or the STTR program;
    - (B) contains for each Phase II award made by a [Federal agency](/usc/15/632.md?p=b)—
      - (i) information collected in accordance with [paragraph (3)](#k-3) on revenue from the sale of new products or services resulting from the research conducted under the award;
      - (ii) information collected in accordance with [paragraph (3)](#k-3) on additional investment from any source, other than Phase I or Phase II SBIR or STTR awards, to further the research and development conducted under the award; and
      - (iii) any other information received in connection with the award that the [Administrator](/usc/15/637c.md?p=1), in conjunction with the SBIR and STTR program managers of [Federal agencies](/usc/15/632.md?p=b), considers relevant and appropriate;
    - (C) includes any narrative information that a [small business concern](/usc/15/636e.md?p=6) receiving a Phase II award voluntarily submits to further describe the outputs and outcomes of its awards;
    - (D) includes, for each awardee—
      - (i) the name, size, and location of, and any identifying number assigned by the [Administrator](/usc/15/637c.md?p=1) to, the awardee;
      - (ii) whether the awardee has venture capital, [hedge fund](/usc/15/632.md?p=bb), or [private equity firm](/usc/15/632.md?p=cc) investment and, if so—
        - (I) the amount of venture capital, [hedge fund](/usc/15/632.md?p=bb), or [private equity firm](/usc/15/632.md?p=cc) investment as of the date of the award;
        - (II) the percentage of ownership of the awardee held by a [venture capital operating company](/usc/15/632.md?p=aa), [hedge fund](/usc/15/632.md?p=bb), or [private equity firm](/usc/15/632.md?p=cc), including whether the awardee is majority-owned by multiple [venture capital operating companies](/usc/15/632.md?p=aa), [hedge funds](/usc/15/632.md?p=bb), or [private equity firms](/usc/15/632.md?p=cc); and
        - (III) the amount of additional capital that the awardee has invested in the SBIR or STTR technology, which information shall be collected on an annual basis;
      - (iii) the names and locations of any affiliates of the awardee;
      - (iv) the number of employees of the awardee;
      - (v) the number of employees of the affiliates of the awardee; and
      - (vi) the names of, and the percentage of ownership of the awardee held by—
        - (I) any individual who is not a citizen of the United States or a lawful permanent resident of the United States; or
        - (II) any [person](/usc/15/7a.md?p=6) that is not an individual and is not organized under the laws of a [State](/usc/15/15g.md?p=2) or the United States;
    - (E) includes any other data collected by or available to any [Federal agency](/usc/15/632.md?p=b) that such [agency](/usc/15/632.md?p=b) considers may be useful for SBIR or STTR program evaluation;
    - (F) is available for use solely for program evaluation purposes by the Federal Government or, in accordance with policy directives issued by the [Administration](/usc/15/636e.md?p=1), by other authorized [persons](/usc/15/7a.md?p=6) who are subject to a use and nondisclosure [agreement](/usc/15/7a.md?p=2) with the Federal Government covering the use of the database; and
    - (G) includes a timely and accurate list of any individual or [small business concern](/usc/15/636e.md?p=6) that has participated in the SBIR program or STTR program that has been—
      - (i) convicted of a fraud-related crime involving funding received under the SBIR program or STTR program; or
      - (ii) found civilly liable for a fraud-related violation involving funding received under the SBIR program or STTR program.
  - (3) **Updating information for database—**
    - (A) **In general—** A [small business concern](/usc/15/636e.md?p=6) applying for a Phase II award under this section shall be required to update information in the database established under this subsection for any prior Phase II award received by that [small business concern](/usc/15/636e.md?p=6). In complying with this paragraph, a [small business concern](/usc/15/636e.md?p=6) may apportion sales or additional investment information relating to more than one Phase II award among those awards, if it notes the apportionment for each award.
    - (B) **Annual updates upon termination—** A [small business concern](/usc/15/636e.md?p=6) receiving a Phase II award under this section shall—
      - (i) update information in the database concerning that award at the termination of the award period; and
      - (ii) be requested to voluntarily update such information annually thereafter for a period of 5 years.
    - (C) **Government database—** Not later than 60 days after the date established by a [Federal agency](/usc/15/632.md?p=b) for submitting applications or proposals for a Phase I or Phase II award under the SBIR program or STTR program, the head of the [Federal agency](/usc/15/632.md?p=b) shall submit to the [Administrator](/usc/15/637c.md?p=1) the data required under [paragraph (2)](#k-2) with respect to each [small business concern](/usc/15/636e.md?p=6) that applies or submits a proposal for the Phase I or Phase II award.
  - (4) **Protection of information—** Information provided under [paragraph (2)](#k-2) shall be considered privileged and confidential and not subject to disclosure pursuant to [section 552 of title 5](/usc/5/552.md).
  - (5) **Rule of construction—** Inclusion of information in the database under this subsection shall not be considered to be publication for purposes of subsection (a) or (b) of [section 102 of title 35](/usc/35/102.md).
- (l) **Reporting of awards made from single proposal, to multiple award winners, or to critical technology topics—**
  - (1) **Single proposal—** If a [Federal agency](/usc/15/632.md?p=b) required to establish an SBIR program under [subsection (f)](#f) makes an award with respect to an SBIR solicitation topic or subtopic for which the [agency](/usc/15/632.md?p=b) received only 1 proposal, the [agency](/usc/15/632.md?p=b) shall provide written justification for making the award in its next quarterly report to the [Administration](/usc/15/636e.md?p=1) and in the [agency](/usc/15/632.md?p=b)’s next annual report required under [subsection (g)(8)](#g-8).
  - (2) **Multiple awards—** An [agency](/usc/15/632.md?p=b) referred to in [paragraph (1)](#l-1) shall include in its next annual report required under [subsection (g)(8)](#g-8) an accounting of the awards the [agency](/usc/15/632.md?p=b) has made for Phase I of an SBIR program during the reporting period to entities that have received more than 15 awards for Phase II of an SBIR program during the preceding 5 fiscal years.
  - (3) **Critical technology awards—** An [agency](/usc/15/632.md?p=b) referred to in [paragraph (1)](#l-1) shall include in its next annual report required under [subsection (g)(8)](#g-8), an accounting of the number of awards it has made to critical technology topics, as defined in [subsection (g)(3)](#g-3), including an identification of the specific critical technologies topics, and the percentage by number and dollar amount of the [agency](/usc/15/632.md?p=b)’s total SBIR awards to such critical technology topics.
- (m) **Termination—** The authorization to carry out the Small Business Innovation Research Program established under this section shall terminate on September 30, 2031.
- (n) **Required expenditures for STTR by Federal agencies—**
  - (1) **Required expenditure amounts—**
    - (A) **In general—** With respect to each fiscal year through fiscal year 2031, each [Federal agency](/usc/15/632.md?p=b) that has an extramural budget for research, or research and development, in excess of $1,000,000,000 for that fiscal year, shall expend with [small business concerns](/usc/15/636e.md?p=6) not less than the percentage of that extramural budget specified in [subparagraph (B)](#n-1-B), specifically in connection with STTR programs that meet the requirements of this section and any policy directives and regulations issued under this section.
    - (B) **Expenditure amounts—** The percentage of the extramural budget required to be expended by an [agency](/usc/15/632.md?p=b) in accordance with [subparagraph (A)](#n-1-A) shall be—
      - (i) 0.15 percent for each fiscal year through fiscal year 2003;
      - (ii) 0.3 percent for each of fiscal years 2004 through 2011;
      - (iii) 0.35 percent for each of fiscal years 2012 and 2013;
      - (iv) 0.40 percent for each of fiscal years 2014 and 2015; and
      - (v) 0.45 percent for fiscal year 2016 and each fiscal year thereafter.
  - (2) **Limitations—** A [Federal agency](/usc/15/632.md?p=b) shall not—
    - (A) use any of its STTR budget established pursuant to [paragraph (1)](#n-1) for the purpose of funding administrative costs of the program, including costs associated with salaries and expenses, or, in the case of a [small business concern](/usc/15/636e.md?p=6) or a research institution, costs associated with salaries, expenses, and administrative overhead (other than those direct or indirect costs allowable under guidelines of the Office of Management and Budget and the governmentwide Federal Acquisition Regulation issued in accordance with [section 1303(a)(1) of title 41](/usc/41/1303.md?p=a-1)); or
    - (B) make available for the purpose of meeting the requirements of [paragraph (1)](#n-1) an amount of its extramural budget for basic research which exceeds the percentage specified in [paragraph (1)](#n-1).
  - (3) **Exclusion of certain funding agreements—** Funding [agreements](/usc/15/7a.md?p=2) with [small business concerns](/usc/15/636e.md?p=6) for research or research and development which result from competitive or single source selections other than an STTR program shall not be considered to meet any portion of the percentage requirements of [paragraph (1)](#n-1).
- (o) **Federal agency STTR authority—** Each [Federal agency](/usc/15/632.md?p=b) required to establish an STTR program in accordance with [subsection (n)](#n) and regulations issued under this chapter, shall—
  - (1) unilaterally determine categories of projects to be included in its STTR program;
  - (2) issue STTR solicitations in accordance with a schedule determined cooperatively with the [Administration](/usc/15/636e.md?p=1);
  - (3) unilaterally determine research topics within the [agency](/usc/15/632.md?p=b)’s STTR solicitations, giving special consideration to broad research topics and to topics that further 1 or more critical technologies, as identified—
    - (A) by the National Critical Technologies Panel (or its successor) in reports required under section 6683[^1] of title 42; or
    - (B) by the Secretary of Defense, in accordance with section 2522[^1] of title 10;
  - (4)
    - (A) unilaterally receive and evaluate proposals resulting from STTR solicitations; and
    - (B) make a final decision on each proposal submitted under the STTR program—
      - (i) not later than 1 year after the date on which the applicable solicitation closes, if with respect to the National Institutes of Health or the National Science Foundation, or 90 days after the date on which the applicable solicitation closes, if with respect to any other participating [agency](/usc/15/632.md?p=b); or
      - (ii) if the [Administrator](/usc/15/637c.md?p=1) authorizes an extension for a solicitation, not later than 90 days after the date that would be applicable to the [agency](/usc/15/632.md?p=b) under [clause (i)](#o-4-B-i);
  - (5) unilaterally select awardees for its STTR funding [agreements](/usc/15/7a.md?p=2) and inform each awardee under such an [agreement](/usc/15/7a.md?p=2), to the extent possible, of the expenses of the awardee that will be allowable under the funding [agreement](/usc/15/7a.md?p=2);
  - (6) administer its own STTR funding [agreements](/usc/15/7a.md?p=2) (or delegate such [administration](/usc/15/636e.md?p=1) to another [agency](/usc/15/632.md?p=b));
  - (7) make payments to recipients of STTR funding [agreements](/usc/15/7a.md?p=2) on the basis of progress toward or completion of the funding [agreement](/usc/15/7a.md?p=2) requirements and, in all cases, make payment to recipients under such [agreements](/usc/15/7a.md?p=2) in full, subject to audit, on or before the last day of the 12-month period beginning on the date of the completion of such requirements;
  - (8) include, as part of its annual performance plan as required by subsections (a) and (b) of [section 1115 of title 31](/usc/31/1115.md), a section on its STTR program, which section shall describe whether or not the [Federal agency](/usc/15/632.md?p=b) complied with the requirements of [subsection (n)](#n) for the year covered by that plan and include a justification for failure to comply (if applicable),,[^3] and shall submit such section to the Committee on Small Business of the Senate, and the Committee on Science and the Committee on Small Business of the House of Representatives;
  - (9) collect annually, and maintain in a common format in accordance with the simplified reporting requirements under [subsection (v)](#v), such information from [applicants](/usc/15/7a.md?p=3) and awardees as is necessary to assess the STTR program outputs and outcomes, including information necessary to maintain the database described in [subsection (k)](#k), including—
    - (A) whether an [applicant](/usc/15/7a.md?p=3) or awardee—
      - (i) has venture capital, [hedge fund](/usc/15/632.md?p=bb), or [private equity firm](/usc/15/632.md?p=cc) investment or is majority-owned by multiple [venture capital operating companies](/usc/15/632.md?p=aa), [hedge funds](/usc/15/632.md?p=bb), or [private equity firms](/usc/15/632.md?p=cc) and, if so—
        - (I) the amount of venture capital, [hedge fund](/usc/15/632.md?p=bb), or [private equity firm](/usc/15/632.md?p=cc) investment that the [applicant](/usc/15/7a.md?p=3) or awardee has received as of the date of the application or award, as applicable; and
        - (II) the amount of additional capital that the [applicant](/usc/15/7a.md?p=3) or awardee has invested in the STTR technology;
      - (ii) has an investor that—
        - (I) is an individual who is not a citizen of the United States or a lawful permanent resident of the United States and, if so, the name of any such individual; or
        - (II) is a [person](/usc/15/7a.md?p=6) that is not an individual and is not organized under the laws of a [State](/usc/15/15g.md?p=2) or the United States and, if so, the name of any such [person](/usc/15/7a.md?p=6);
      - (iii) is owned by a woman or has a woman as a principal investigator;[^2]
      - (iv) is owned by a socially or economically disadvantaged individual or has a socially or economically disadvantaged individual as a principal investigator;[^2]
      - (v) is a faculty member or a student of an institution of higher education, as that term is defined in [section 1001 of title 20](/usc/20/1001.md); or
      - (vi) is located in a [State](/usc/15/15g.md?p=2) in which the total value of contracts awarded to [small business concerns](/usc/15/636e.md?p=6) under all STTR programs is less than the total value of contracts awarded to [small business concerns](/usc/15/636e.md?p=6) in a majority of other [States](/usc/15/15g.md?p=2), as determined by the [Administrator](/usc/15/637c.md?p=1) in biennial fiscal years, beginning with fiscal year 2008, based on the most recent statistics compiled by the [Administrator](/usc/15/637c.md?p=1);
    - (B) if an awardee receives an award in an amount that is more than the award guidelines under this section, a statement from the [agency](/usc/15/632.md?p=b) that justifies the award amount; and
    - (C) data with respect to the Federal and [State](/usc/15/15g.md?p=2) Technology Partnership Program (FAST Program);
  - (10) submit an annual report on the STTR program to the [Administration](/usc/15/636e.md?p=1) and the Office of Science and Technology Policy;
  - (11) adopt the [agreement](/usc/15/7a.md?p=2) developed by the [Administrator](/usc/15/637c.md?p=1) under [subsection (w)](#w) as the [agency](/usc/15/632.md?p=b)’s model [agreement](/usc/15/7a.md?p=2) for allocating between [small business concerns](/usc/15/636e.md?p=6) and research institutions intellectual property rights and rights, if any, to carry out follow-on research, development, or commercialization;
  - (12) develop, in consultation with the Office of Federal Procurement Policy and the Office of Government Ethics, procedures to ensure that federally funded research and development centers (as defined in [subsection (e)(8)](#e-8)) that participate in STTR [agreements](/usc/15/7a.md?p=2)—
    - (A) are free from organizational conflicts of interests relative to the STTR program;
    - (B) do not use privileged information gained through work performed for an STTR [agency](/usc/15/632.md?p=b) or private access to STTR [agency](/usc/15/632.md?p=b) personnel in the development of an STTR proposal; and
    - (C) use outside peer review, as appropriate;
  - (13) not later than July 31, 1993, develop procedures for assessing the commercial merit and feasibility of STTR proposals, as evidenced by—
    - (A) the [small business concern](/usc/15/636e.md?p=6)’s record of successfully commercializing STTR or other research;
    - (B) the existence of Phase II funding commitments from private sector or non-STTR funding sources;
    - (C) the existence of Phase III follow-on commitments for the subject of the research; and
    - (D) the presence of other indicators of the commercial potential of the idea;
  - (14) implement an outreach program to research institutions and [small business concerns](/usc/15/636e.md?p=6) for the purpose of enhancing its STTR program, in conjunction with any such outreach done for purposes of the SBIR program;
  - (15) provide for and fully implement the tenets of Executive Order No. 13329 (Encouraging Innovation in Manufacturing);
  - (16) provide timely notice to the [Administrator](/usc/15/637c.md?p=1) of any case or controversy before any Federal judicial or administrative tribunal concerning the STTR program of the [Federal agency](/usc/15/632.md?p=b);
  - (17) require each [small business concern](/usc/15/636e.md?p=6) submitting a proposal or application for a federally funded award to disclose in the proposal or application—
    - (A) the identity of all owners and covered individuals of the [small business concern](/usc/15/636e.md?p=6) who are a party to any foreign talent recruitment program of any foreign country of concern, including the People’s Republic of China;
    - (B) the existence of any joint venture or subsidiary of the [small business concern](/usc/15/636e.md?p=6) that is based in, funded by, or has a foreign affiliation with any foreign country of concern, including the People’s Republic of China;
    - (C) any current or pending contractual or financial obligation or other [agreement](/usc/15/7a.md?p=2) specific to a business arrangement, or joint venture-like arrangement with an enterprise owned by a foreign [state](/usc/15/15g.md?p=2) or any foreign entity;
    - (D) whether the [small business concern](/usc/15/636e.md?p=6) is wholly owned in the People’s Republic of China or another foreign country;
    - (E) the percentage, if any, 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 concern, including the People’s Republic of China;
    - (F) any technology licensing or intellectual property sales to a foreign country of concern, including the People’s Republic of China, during the 5-year period preceding submission of the proposal; and
    - (G) any foreign business entity, offshore entity, or entity outside the United States related to the [small business concern](/usc/15/636e.md?p=6);
  - (18) after reviewing the disclosures of a [small business concern](/usc/15/636e.md?p=6) under [paragraph (17)](#o-17), and if determined appropriate by the head of such [Federal agency](/usc/15/632.md?p=b), request such [small business concern](/usc/15/636e.md?p=6) to provide true copies of any contractual or financial obligation or other [agreement](/usc/15/7a.md?p=2) specific to a business arrangement, or joint-venture like arrangement with an enterprise owned by a foreign [state](/usc/15/15g.md?p=2) or any foreign entity in effect during the 5-year period preceding submission of the proposal with respect to which such [small business concern](/usc/15/636e.md?p=6) made such disclosures;
  - (19) evaluate whether a [small business concern](/usc/15/636e.md?p=6) presents a security risk for any reason, through measures including—
    - (A) the due diligence process required under [subsection (vv)](#vv);
    - (B) disclosures submitted under this subsection; or
    - (C) coordination with the intelligence community, as defined in [section 3003 of title 50](/usc/50/3003.md), Federal law enforcement, and other counterintelligence capabilities of the Federal Government;
  - (20) not make an award under the STTR program of the [Federal agency](/usc/15/632.md?p=b) to a [small business concern](/usc/15/636e.md?p=6) if the head of the [Federal agency](/usc/15/632.md?p=b) determines that the [small business concern](/usc/15/636e.md?p=6) submitting the proposal or application—
    - (A) has an owner or covered individual that is party to a malign foreign talent recruitment program;
    - (B) has a business entity, parent company, or subsidiary located in the People’s Republic of China or another foreign country of concern;
    - (C) 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 concern;
    - (D) has a foreign risk connecting the [small business concern](/usc/15/636e.md?p=6) to an entity, including any affiliates of the entity, or individual on—
      - (i) the UFLPA Entity List maintained by the Department of Homeland Security;
      - (ii) the Non-SDN Chinese Military-Industrial Complex Companies List of the Office of Foreign Assets Control maintained by the Department of the Treasury;
      - (iii) the Section 889 Prohibition List established under section 889 of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 (Public Law 115–232; 132 Stat. 1917) and maintained by the Department of Defense;
      - (iv) the list of Chinese Military companies required under section 1260H of the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021 ([10 U.S.C. 113](/usc/10/113.md) note) and maintained by the Department of Defense;
      - (v) the Military End User List maintained by the Bureau of Industry and Security of the Department of Commerce;
      - (vi) the Entity List maintained by the Bureau of Industry and Security of the Department of Commerce;
      - (vii) the List of Equipment and Services maintained by the Federal Communications Commission; or
      - (viii) the Withhold Release Orders and Findings List maintained by U.S. Customs and Border Protection;
    - (E) has a security risk with a primary source that is classified; or
    - (F) has a security risk that the [Federal agency](/usc/15/632.md?p=b) determines warrants a denial;
  - (21) provide for—
    - (A) a process under which, upon making an award decision to deny an application on the basis of a determination under [paragraph (20)](#o-20), or upon making a determination under [paragraph (20)](#o-20) that a [small business concern](/usc/15/636e.md?p=6) has a security risk described in that paragraph, the [Federal agency](/usc/15/632.md?p=b) provides to the [small business concern](/usc/15/636e.md?p=6), as appropriate pursuant to the discretion of the [Federal agency](/usc/15/632.md?p=b) and in a manner that does not compromise security, a notification—
      - (i) advising the [small business concern](/usc/15/636e.md?p=6) of such determination; and
      - (ii) identifying the basis for such determination; and
    - (B) a policy that clarifies that receipt of an award decision denying an application does not prohibit the [small business concern](/usc/15/636e.md?p=6) from being eligible for an award in a subsequent award cycle;
  - (22) require a [small business concern](/usc/15/636e.md?p=6) receiving an award under its STTR program to repay all amounts received from the [Federal agency](/usc/15/632.md?p=b) under the award if—
    - (A) the [small business concern](/usc/15/636e.md?p=6) makes a material misstatement that the [Federal agency](/usc/15/632.md?p=b) determines poses a risk to national security; or
    - (B) there is a change in ownership, change to entity structure, or other substantial change in circumstances of the [small business concern](/usc/15/636e.md?p=6) that the [Federal agency](/usc/15/632.md?p=b) determines poses a risk to national security; and
  - (23) require a [small business concern](/usc/15/636e.md?p=6) receiving an award under its STTR program to regularly report to the [Federal agency](/usc/15/632.md?p=b) and the [Administration](/usc/15/636e.md?p=1) throughout the duration of the award on—
    - (A) any change to a disclosure required under subparagraphs [(A)](#o-17-A) through [(G)](#o-17-G) of paragraph (17);
    - (B) any material misstatement made under [paragraph (22)(A)](#o-22-A); and
    - (C) any change described in [paragraph (22)(B)](#o-22-B).
- (p) **STTR policy directive—**
  - (1) **Issuance—** The [Administrator](/usc/15/637c.md?p=1) shall issue a policy directive for the general conduct of the STTR programs within the Federal Government. Such policy directive shall be issued after consultation with—
    - (A) the heads of each of the [Federal agencies](/usc/15/632.md?p=b) required by [subsection (n)](#n) to establish an STTR program;
    - (B) the Under Secretary of Commerce for Intellectual Property and Director of the United States Patent and Trademark Office; and
    - (C) the Director of the Office of Federal Procurement Policy.
  - (2) **Contents—** The policy directive required by [paragraph (1)](#p-1) shall provide for—
    - (A) simplified, standardized, and timely STTR solicitations;
    - (B) a simplified, standardized funding process that provides for—
      - (i) the timely receipt and review of proposals;
      - (ii) outside peer review, if appropriate;
      - (iii) protection of proprietary information provided in proposals;
      - (iv) selection of awardees;
      - (v) retention by a [small business concern](/usc/15/636e.md?p=6) of the rights to data generated by the concern in the performance of an STTR award for a period of not less than 4 years;
      - (vi) continued use by a [small business concern](/usc/15/636e.md?p=6), as a directed bailment, of any property transferred by a [Federal agency](/usc/15/632.md?p=b) to the [small business concern](/usc/15/636e.md?p=6) in Phase II of the STTR program for a period of not less than 2 years, beginning on the initial date of the concern’s participation in Phase III of such program;
      - (vii) cost sharing;
      - (viii) cost principles and payment schedules; and
      - (ix) 1-year awards for Phase I of an STTR program, generally not to exceed $150,000, and 2-year awards for Phase II of an STTR program, generally not to exceed $1,000,000, (each of which the [Administrator](/usc/15/637c.md?p=1) shall adjust for inflation annually) greater or lesser amounts to be awarded at the discretion of the awarding [agency](/usc/15/632.md?p=b), and shorter or longer periods of time to be approved at the discretion of the awarding [agency](/usc/15/632.md?p=b) where appropriate for a particular project;
    - (C) minimizing regulatory burdens associated with participation in STTR programs;
    - (D) guidelines for a model [agreement](/usc/15/7a.md?p=2), to be used by all [agencies](/usc/15/632.md?p=b), for allocating between [small business concerns](/usc/15/636e.md?p=6) and research institutions intellectual property rights and rights, if any, to carry out follow-on research, development, or commercialization;
    - (E) procedures to ensure that—
      - (i) a recipient of an STTR award is a [small business concern](/usc/15/636e.md?p=6), as defined in [section 632 of this title](/usc/15/632.md) and the regulations promulgated thereunder; and
      - (ii) such [small business concern](/usc/15/636e.md?p=6) exercises management and control of the performance of the STTR funding [agreement](/usc/15/7a.md?p=2) pursuant to a business plan providing for the commercialization of the technology that is the subject matter of the award;
    - (F) procedures to ensure, to the extent practicable, that an [agency](/usc/15/632.md?p=b) which intends to pursue research, development, or production of a technology developed by a [small business concern](/usc/15/636e.md?p=6) under an STTR program enters into follow-on, non-STTR funding [agreements](/usc/15/7a.md?p=2) with the [small business concern](/usc/15/636e.md?p=6) for such research, development, or production; and
    - (G) procedures to ensure that procurement center representatives (as described in [section 644(l)](/usc/15/644.md?p=l) of this title)—
      - (i) consult with the appropriate personnel from the relevant [Federal agency](/usc/15/632.md?p=b), to assist [small business concerns](/usc/15/636e.md?p=6) participating in the STTR program, particularly in Phase III;
      - (ii) provide technical assistance to such concerns to submit a bid for an award of a Federal contract; and
      - (iii) consult with the appropriate personnel from the relevant [Federal agency](/usc/15/632.md?p=b) in providing the assistance described in [clause (i)](#p-2-G-i).
  - (3) **Modifications—** Not later than 120 days after October 15, 2001, the [Administrator](/usc/15/637c.md?p=1) shall modify the policy directive issued pursuant to this subsection to clarify that the rights provided for under [paragraph (2)(B)(v)](#p-2-B-v) apply to all Federal funding awards under this section, including Phase I, Phase II, and Phase III.
- (q) **Discretionary technical and business assistance—**
  - (1) **In general—** Each [Federal agency](/usc/15/632.md?p=b) required by this section to conduct an SBIR program or STTR program shall authorize recipients of awards under the SBIR program or the STTR program to select, if desired, technical and business assistance provided under subparagraph [(A)](#q-2-A) or [(B)](#q-2-B) of paragraph (2) with respect to SBIR or STTR projects, such as access to a network of scientists and engineers engaged in a wide range of technologies, assistance with product sales, intellectual property protections, cybersecurity assistance, market research, market validation, and development of regulatory plans and manufacturing plans, or access to technical and business literature available through on-line data bases, for the purpose of assisting such recipients in—
    - (A) making better technical decisions concerning such projects;
    - (B) solving technical problems which arise during the conduct of such projects;
    - (C) minimizing technical risks associated with such projects;
    - (D) developing and commercializing new commercial products and processes resulting from such projects, including intellectual property protections; and
    - (E) screening for potential foreign involvement in technology development or commercialization activities.
  - (2) **Eligible uses of funds—**
    - (A) **Selection by small business concern—** A [small business concern](/usc/15/636e.md?p=6) may, by contract or otherwise, select 1 or more vendors to assist the [small business concern](/usc/15/636e.md?p=6) in meeting the goals listed in [paragraph (1)](#q-1).
    - (B) **Staff—** A [small business concern](/usc/15/636e.md?p=6) may, by contract or otherwise, use funding provided under this section to hire new staff, augment staff, or direct staff to conduct or participate in training activities consistent with the goals listed in [paragraph (1)](#q-1).
  - (3) **Additional technical assistance—**
    - (A) **Phase I—** A [Federal agency](/usc/15/632.md?p=b) described in [paragraph (1)](#q-1) shall authorize a recipient of a Phase I SBIR or STTR award to use not more than $6,500 per project, included as part of the award of the recipient or in addition to the amount of the award of the recipient as determined appropriate by the head of the [Federal agency](/usc/15/632.md?p=b), for the services described in [paragraph (1)](#q-1)—
      - (i) provided through a vendor selected by the [small business concern](/usc/15/636e.md?p=6) under [paragraph (2)(A)](#q-2-A); or
      - (ii) achieved through the activities described in [paragraph (2)(B)](#q-2-B).
    - (B) **Phase II—** A [Federal agency](/usc/15/632.md?p=b) described in [paragraph (1)](#q-1) shall authorize a recipient of a Phase II SBIR or STTR award to utilize not more than $50,000 per project, included as part of the award of the recipient or in addition to the amount of the award of the recipient as determined appropriate by the head of the [Federal agency](/usc/15/632.md?p=b), for the services described in [paragraph (1)](#q-1)—
      - (i) provided through a vendor selected by the [small business concern](/usc/15/636e.md?p=6) under [paragraph (2)(A)](#q-2-A); or
      - (ii) achieved through the activities described in [paragraph (2)(B)](#q-2-B).
    - (C) **Flexibility—** In carrying out subparagraphs [(A)](#q-3-A) and [(B)](#q-3-B), each [Federal agency](/usc/15/632.md?p=b) shall provide the allowable amounts to a recipient that meets the eligibility requirements under the applicable subparagraph, if the recipient requests to seek technical or business assistance from an individual or entity other than a vendor selected under [paragraph (2)(A)](#q-2-A) by the [Federal agency](/usc/15/632.md?p=b). Business-related services aimed at improving the commercialization success of a [small business concern](/usc/15/636e.md?p=6) may be obtained from an entity, such as a public or private organization or an [agency](/usc/15/632.md?p=b) of or other entity established or funded by a [State](/usc/15/15g.md?p=2) that facilitates or accelerates the commercialization of technologies or assists in the creation and growth of private enterprises that are commercializing technology.
    - (D) **Limitation—** A [Federal agency](/usc/15/632.md?p=b) may not—
      - (i) use the amounts authorized under subparagraph [(A)](#q-3-A) or [(B)](#q-3-B) unless 1 or more vendors selected under [paragraph (2)(A)](#q-2-A) provides the technical or business assistance to the recipient; or
      - (ii) enter a contract with a vendor under [paragraph (2)(A)](#q-2-A) under which the amount provided for technical or business assistance is based on total number of Phase I or Phase II awards.
    - (E) **Multiple award recipients—** The [Administrator](/usc/15/637c.md?p=1) shall establish a limit on the amount of technical and business assistance services that may be received or purchased under [subparagraph (B)](#q-3-B) by a [small business concern](/usc/15/636e.md?p=6) that has received multiple Phase II SBIR or STTR awards for a fiscal year.
  - (4) **Annual reporting—**
    - (A) **In general—** A [small business concern](/usc/15/636e.md?p=6) that receives technical or business assistance from a vendor under this subsection during a fiscal year shall submit to the [Federal agency](/usc/15/632.md?p=b) contracting with the vendor a description of the technical or business assistance provided and the benefits and results of the technical or business assistance provided.
    - (B) **Use of existing reporting mechanism—** The information required under [subparagraph (A)](#q-4-A) shall be collected by a [Federal agency](/usc/15/632.md?p=b) as part of a report required to be submitted by [small business concerns](/usc/15/636e.md?p=6) engaged in SBIR or STTR projects of the [Federal agency](/usc/15/632.md?p=b) for which the requirement was in effect on August 13, 2018.
  - (5) **Targeted review—** A [Federal agency](/usc/15/632.md?p=b) may perform targeted reviews of technical and business assistance funding as described in [subsection (mm)(1)(F)](#mm-1-F).
- (r) **Phase III agreements, competitive procedures, and justification for awards—**
  - (1) **In general—** In the case of a [small business concern](/usc/15/636e.md?p=6) that is awarded a funding [agreement](/usc/15/7a.md?p=2) for Phase II of an SBIR or STTR program, a [Federal agency](/usc/15/632.md?p=b) may enter into a Phase III [agreement](/usc/15/7a.md?p=2) with that business concern for additional work to be performed during or after the Phase II period. The Phase II funding [agreement](/usc/15/7a.md?p=2) with the [small business concern](/usc/15/636e.md?p=6) may, at the discretion of the [agency](/usc/15/632.md?p=b) awarding the [agreement](/usc/15/7a.md?p=2), set out the procedures applicable to Phase III [agreements](/usc/15/7a.md?p=2) with that [agency](/usc/15/632.md?p=b) or any other [agency](/usc/15/632.md?p=b).
  - (2) **Definition—** In this subsection, the term “Phase III [agreement](/usc/15/7a.md?p=2)” means a follow-on, non-SBIR or non-STTR funded contract as described in [paragraph (4)(C)](#r-4-C) or [paragraph (6)(C)](#e-6-C) of subsection (e).
  - (3) **Intellectual property rights—** Each funding [agreement](/usc/15/7a.md?p=2) under an SBIR or STTR program shall include provisions setting forth the respective rights of the United States and the [small business concern](/usc/15/636e.md?p=6) with respect to intellectual property rights and with respect to any right to carry out follow-on research.
  - (4) **Competitive procedures and justification for awards—** To the greatest extent practicable, [Federal agencies](/usc/15/632.md?p=b) and Federal [prime contractors](/usc/15/632.md?p=m-2) shall—
    - (A) consider an award under the SBIR program or the STTR program to satisfy the requirements under sections [3201](/usc/10/3201.md) through [3205](/usc/10/3205.md) of title 10 and any other applicable competition requirements;
    - (B) issue, without further justification, Phase III awards relating to technology, including sole source awards, to the SBIR and STTR award recipients that developed the technology;
    - (C) develop simplified and standardized procedures and model contracts for Phase I, Phase II, and Phase III SBIR awards and report to the [Administrator](/usc/15/637c.md?p=1) on actions taken by the [Federal agency](/usc/15/632.md?p=b) in support of these objectives; and
    - (D) as applicable, issue standardized solicitation provisions and contract clauses that provide clear guidance on the information that [small business concerns](/usc/15/636e.md?p=6) participating in SBIR or STTR programs can be expected to provide as part of market research or as part of a proposal by those [small business concerns](/usc/15/636e.md?p=6) to establish eligibility for Phase III awards.
  - (5) **Workforce training—**
    - (A) **In general—** The [Administrator](/usc/15/637c.md?p=1), in coordination with the Secretary of Defense, the [Administrator](/usc/15/637c.md?p=1) of General Services, and the head of any other [Federal agency](/usc/15/632.md?p=b) that the [Administrator](/usc/15/637c.md?p=1) determines appropriate, shall establish training activities for contracting officers and the [agency](/usc/15/632.md?p=b) acquisition workforce of [Federal agencies](/usc/15/632.md?p=b) to ensure that all such individuals are fully aware of all aspects of Phase III awards under the SBIR and STTR programs, as applicable.
    - (B) **Training topics—** The training activities required under [subparagraph (A)](#r-5-A) shall include training on—
      - (i) the missions, goals, and authorities of the SBIR and STTR programs;
      - (ii) the use of Phase III [agreements](/usc/15/7a.md?p=2);
      - (iii) Phase III data rights; and
      - (iv) the execution of Phase III sole source award contracts.
    - (C) **Funding—** The training activities required under [subparagraph (A)](#r-5-A) may be carried out using funds made available to carry out subsections [(y)](#y) and [(mm)](#mm).
- (s) **Competitive selection procedures for SBIR and STTR programs—** All funds awarded, appropriated, or otherwise made available in accordance with subsection [(f)](#f) or [(n)](#n) must be awarded pursuant to competitive and merit-based selection procedures.
- (t) **Inclusion in strategic plans—** Program information relating to the SBIR and STTR programs shall be included by each [Federal agency](/usc/15/632.md?p=b) in any update or revision required of the [Federal agency](/usc/15/632.md?p=b) under [section 306(b) of title 5](/usc/5/306.md?p=b).
- (u) **Coordination of technology development programs—**
  - (1) **Definition of technology development program—** In this subsection, the term “technology development program” means—
    - (A) the Experimental Program to Stimulate Competitive Research of the National Science Foundation, as established under [section 1862g of title 42](/usc/42/1862g.md);
    - (B) the Defense Experimental Program to Stimulate Competitive Research of the Department of Defense;
    - (C) the Experimental Program to Stimulate Competitive Research of the Department of Energy;
    - (D) the Experimental Program to Stimulate Competitive Research of the Environmental Protection [Agency](/usc/15/632.md?p=b);
    - (E) the Experimental Program to Stimulate Competitive Research of the National Aeronautics and Space [Administration](/usc/15/636e.md?p=1);
    - (F) the Institutional Development Award Program of the National Institutes of Health; and
    - (G) the National Research Initiative Competitive Grants Program of the Department of Agriculture.
  - (2) **Coordination requirements—** Each [Federal agency](/usc/15/632.md?p=b) that is subject to [subsection (f)](#f) and that has established a technology development program may, in each fiscal year, review for funding under that technology development program—
    - (A) any proposal to provide outreach and assistance to one or more [small business concerns](/usc/15/636e.md?p=6) interested in participating in the SBIR program, including any proposal to make a grant or loan to a company to pay a portion or all of the cost of developing an SBIR proposal, from an entity, organization, or individual located in—
      - (i) a [State](/usc/15/15g.md?p=2) that is eligible to participate in that program; or
      - (ii) a [State](/usc/15/15g.md?p=2) described in [paragraph (3)](#u-3); or
    - (B) any proposal for Phase I of the SBIR program, if the proposal, though meritorious, is not funded through the SBIR program for that fiscal year due to funding restraints, from a [small business concern](/usc/15/636e.md?p=6) located in—
      - (i) a [State](/usc/15/15g.md?p=2) that is eligible to participate in a technology development program; or
      - (ii) a [State](/usc/15/15g.md?p=2) described in [paragraph (3)](#u-3).
  - (3) **Additionally eligible State—** A [State](/usc/15/15g.md?p=2) referred to in subparagraph [(A)(ii)](#u-2-A-ii) or [(B)(ii)](#u-2-B-ii) of paragraph (2) is a [State](/usc/15/15g.md?p=2) in which the total value of contracts awarded to [small business concerns](/usc/15/636e.md?p=6) under all SBIR programs is less than the total value of contracts awarded to [small business concerns](/usc/15/636e.md?p=6) in a majority of other [States](/usc/15/15g.md?p=2), as determined by the [Administrator](/usc/15/637c.md?p=1) in biennial fiscal years, beginning with fiscal year 2000, based on the most recent statistics compiled by the [Administrator](/usc/15/637c.md?p=1).
- (v) **Reducing paperwork and compliance burden—**
  - (1) **Standardization of reporting requirements—** The [Administrator](/usc/15/637c.md?p=1) shall work with the [Federal agencies](/usc/15/632.md?p=b) required by this section to have an SBIR or STTR program to standardize reporting requirements for the collection of data from SBIR or STTR [applicants](/usc/15/7a.md?p=3) and awardees, including data for inclusion in the database under [subsection (k)](#k), taking into consideration the unique needs of each [agency](/usc/15/632.md?p=b), and to the extent possible, permitting the updating of previously reported information by electronic means. Such requirements shall be designed to minimize the burden on small businesses.
  - (2) **Simplification of application and award process—** Not later than 1 year after December 31, 2011, and after a period of public comment, the [Administrator](/usc/15/637c.md?p=1) shall issue regulations or guidelines, taking into consideration the unique needs of each [Federal agency](/usc/15/632.md?p=b), to ensure that each [Federal agency](/usc/15/632.md?p=b) required to carry out an SBIR program or STTR program simplifies and standardizes the program proposal, selection, contracting, compliance, and audit procedures for the SBIR program or STTR program of the [Federal agency](/usc/15/632.md?p=b) (including procedures relating to overhead rates for [applicants](/usc/15/7a.md?p=3) and documentation requirements) to reduce the paperwork and regulatory compliance burden on [small business concerns](/usc/15/636e.md?p=6) applying to and participating in the SBIR program or STTR program.
- (w) **STTR model agreement for intellectual property rights—**
  - (1) **In general—** The [Administrator](/usc/15/637c.md?p=1) shall promulgate regulations establishing a single model [agreement](/usc/15/7a.md?p=2) for use in the STTR program that allocates between [small business concerns](/usc/15/636e.md?p=6) and research institutions intellectual property rights and rights, if any, to carry out follow-on research, development, or commercialization.
  - (2) **Opportunity for comment—** In promulgating regulations under [paragraph (1)](#w-1), the [Administrator](/usc/15/637c.md?p=1) shall provide to affected [agencies](/usc/15/632.md?p=b), [small business concerns](/usc/15/636e.md?p=6), research institutions, and other interested parties the opportunity to submit written comments.
- (x) **Research and development focus—**
  - (1) **Revision and update of criteria and procedures of identification—** In carrying out [subsection (g)](#g), the Secretary of Defense shall, not less often than once every 4 years, revise and update the criteria and procedures utilized to identify areas of the research and development efforts of the Department of Defense which are suitable for the provision of funds under the Small Business Innovation Research Program and the Small Business Technology Transfer Program.
  - (2) **Utilization of plans—** The criteria and procedures described in [paragraph (1)](#x-1) shall be developed through the use of the most current versions of the following plans:
    - (A) The Joint Warfighting Science and Technology Plan required under section 270 of the National Defense Authorization Act for Fiscal Year 1997 (Public Law 104–201; [10 U.S.C. 2501](/usc/10/2501.md) note).[^1]
    - (B) The Defense Technology Area Plan of the Department of Defense.
    - (C) The Basic Research Plan of the Department of Defense.
  - (3) **Input in identification of areas of effort—** The criteria and procedures described in [paragraph (1)](#x-1) shall include input in the identification of areas of research and development efforts described in that paragraph from Department of Defense program managers (PMs) and program executive officers (PEOs).[^1]
- (y) **Commercialization Readiness Program—**
  - (1) **In general—** The Secretary of Defense and the Secretary of each military department is authorized to create and administer a “Commercialization Readiness Program” to accelerate the transition of technologies, products, and services developed under the Small Business Innovation Research Program or Small Business Technology Transfer Program to Phase III, including the acquisition process. The authority to create and administer a Commercialization Readiness Program under this subsection may not be construed to eliminate or replace any other SBIR program or STTR program that enhances the insertion or transition of SBIR or STTR technologies, including any such program in effect on January 6, 2006.
  - (2) **Identification of research programs for accelerated transition to acquisition process—** In carrying out the Commercialization Readiness Program, the Secretary of Defense and the Secretary of each military department shall—
    - (A) identify research programs of the Small Business Innovation Research Program or Small Business Technology Transfer Program, including [small business concerns](/usc/15/636e.md?p=6) with an award from the strategic breakthrough allocation (as defined in [subsection (ff)(3)(A)](#ff-3-A),[^5] that have the potential for rapid transitioning to Phase III and into the acquisition process;
    - (B) ensure, in collaboration with SBIR program managers of each component, that research programs identified under [subparagraph (A)](#y-2-A) are analyzed within the programming and budgeting process as budget requests are developed; and
    - (C) provide to the Committee on Small Business and Entrepreneurship of the Senate and the Committees on Small Business and Science, Space, and Technology of the House of Representatives information on the integration of SBIR and STTR awardees in budget rollouts for research, development, testing, and evaluation activities.
  - (3) **Funding—**
    - (A) **In general—** The Secretary of Defense and each Secretary of a military department may use not more than an amount equal to 1 percent of the funds available to the Department of Defense or the military department pursuant to the Small Business Innovation Research Program for payment of expenses incurred to administer the Commercialization Readiness Program under this subsection.
    - (B) **Limitations—** The funds described in [subparagraph (A)](#y-3-A)—
      - (i) shall not be subject to the limitations on the use of funds in [subsection (f)(2)](#f-2); and
      - (ii) shall not be used to make Phase III awards.
  - (4) **Insertion incentives—** For any contract with a value of not less than $100,000,000, the Secretary of Defense is authorized to—
    - (A) establish goals for the transition of Phase III technologies in subcontracting plans; and
    - (B) require a [prime contractor](/usc/15/632.md?p=m-2) on such a contract to report the number and dollar amount of contracts entered into by that [prime contractor](/usc/15/632.md?p=m-2) for Phase III SBIR or STTR projects.
  - (5) **Goal for SBIR and STTR technology insertion—** The Secretary of Defense shall—
    - (A) set a goal to increase the number of Phase II SBIR contracts and the number of Phase II STTR contracts awarded by the Secretary that lead to technology transition into programs of record or fielded systems;
    - (B) use incentives in effect on December 31, 2011, or create new incentives, to encourage [agency](/usc/15/632.md?p=b) program managers and [prime contractors](/usc/15/632.md?p=m-2) to meet the goal under [subparagraph (A)](#y-5-A);
    - (C) establish a mechanism to provide [small business concerns](/usc/15/636e.md?p=6) with direct access to program and requirements offices that may purchase technology from the [small business concern](/usc/15/636e.md?p=6) under Phase III of the SBIR program; and
    - (D) submit to the [Administrator](/usc/15/637c.md?p=1) for inclusion in the annual report under [subsection (b)(7)](#b-7)—
      - (i) the number and percentage of Phase II SBIR and STTR contracts awarded by the Secretary that led to technology transition into programs of record or fielded systems;
      - (ii) information on the status of each project that received funding through the Commercialization Readiness Program and efforts to transition those projects into programs of record or fielded systems; and
      - (iii) a description of each incentive that has been used by the Secretary under [subparagraph (B)](#y-5-B) and the effectiveness of that incentive with respect to meeting the goal under [subparagraph (A)](#y-5-A).
- (z) **Encouraging innovation in energy efficiency—**
  - (1) **Federal agency energy-related priority—** In carrying out its duties under this section relating to SBIR and STTR solicitations by Federal departments and [agencies](/usc/15/632.md?p=b), the [Administrator](/usc/15/637c.md?p=1) shall—
    - (A) ensure that such departments and [agencies](/usc/15/632.md?p=b) give high priority to [small business concerns](/usc/15/636e.md?p=6) that participate in or conduct energy efficiency or renewable energy system research and development projects; and
    - (B) include in the annual report to Congress under [subsection (b)(7)](#b-7) a determination of whether the priority described in [subparagraph (A)](#z-1-A) is being carried out.
  - (2) **Consultation required—** The [Administrator](/usc/15/637c.md?p=1) shall consult with the heads of other Federal departments and [agencies](/usc/15/632.md?p=b) in determining whether priority has been given to [small business concerns](/usc/15/636e.md?p=6) that participate in or conduct energy efficiency or renewable energy system research and development projects, as required by this subsection.
  - (3) **Guidelines—** The [Administrator](/usc/15/637c.md?p=1) shall, as soon as is practicable after December 19, 2007, issue guidelines and directives to assist [Federal agencies](/usc/15/632.md?p=b) in meeting the requirements of this subsection.
  - (4) **Definitions—** In this subsection—
    - (A) the term “biomass”—
      - (i) means any organic material that is available on a renewable or recurring basis, including—
        - (I) agricultural crops;
        - (II) trees grown for energy production;
        - (III) wood waste and wood residues;
        - (IV) plants (including aquatic plants and grasses);
        - (V) residues;
        - (VI) fibers;
        - (VII) animal wastes and other waste materials; and
        - (VIII) fats, oils, and greases (including recycled fats, oils, and greases); and
      - (ii) does not include—
        - (I) paper that is commonly recycled; or
        - (II) unsegregated solid waste;
    - (B) the term “energy efficiency project” means the installation or upgrading of equipment that results in a significant reduction in energy usage; and
    - (C) the term “renewable energy system” means a system of energy derived from—
      - (i) a wind, solar, biomass (including biodiesel), or geothermal source; or
      - (ii) hydrogen derived from biomass or water using an energy source described in [clause (i)](#z-4-C-i).
- (aa) **Limitation on size of awards—**
  - (1) **Limitation—** No [Federal agency](/usc/15/632.md?p=b) may issue an award under the SBIR program or the STTR program if the size of the award exceeds the award guidelines established under this section by more than 50 percent.
  - (2) **Maintenance of information—** Participating [agencies](/usc/15/632.md?p=b) shall maintain information on awards exceeding the guidelines established under this section, including—
    - (A) the amount of each award;
    - (B) a justification for exceeding the guidelines for each award;
    - (C) the identity and location of each award recipient; and
    - (D) whether an award recipient has received any venture capital, [hedge fund](/usc/15/632.md?p=bb), or [private equity firm](/usc/15/632.md?p=cc) investment and, if so, whether the recipient is majority-owned by multiple [venture capital operating companies](/usc/15/632.md?p=aa), [hedge funds](/usc/15/632.md?p=bb), or [private equity firms](/usc/15/632.md?p=cc).
  - (3) **Reports—** The [Administrator](/usc/15/637c.md?p=1) shall include the information described in [paragraph (2)](#aa-2) in the annual report of the [Administrator](/usc/15/637c.md?p=1) to Congress.
  - (4) **Waiver for specific topic—** Upon the receipt of an application from a [Federal agency](/usc/15/632.md?p=b), the [Administrator](/usc/15/637c.md?p=1) may grant a waiver from the requirement under [paragraph (1)](#aa-1) with respect to a specific topic (but not for the [agency](/usc/15/632.md?p=b) as a whole) for a fiscal year if the [Administrator](/usc/15/637c.md?p=1) determines, based on the information contained in the application from the [agency](/usc/15/632.md?p=b), that—
    - (A) the requirement under [paragraph (1)](#aa-1) will interfere with the ability of the [agency](/usc/15/632.md?p=b) to fulfill its research mission through the SBIR program or the STTR program; and
    - (B) the [agency](/usc/15/632.md?p=b) will minimize, to the maximum extent possible, the number of awards that do not satisfy the requirement under [paragraph (1)](#aa-1) to preserve the nature and intent of the SBIR program and the STTR program.
  - (5) **Rule of construction—** Nothing in this subsection shall be construed to prevent a [Federal agency](/usc/15/632.md?p=b) from supplementing an award under the SBIR program or the STTR program using funds of the [Federal agency](/usc/15/632.md?p=b) that are not part of the SBIR program or the STTR program of the [Federal agency](/usc/15/632.md?p=b).
  - (6) **Strategic breakthrough allocation—** The requirement under [paragraph (1)](#aa-1) and the requirement to receive a waiver from the [Administrator](/usc/15/637c.md?p=1) under [paragraph (4)](#aa-4) do not apply to a [Federal agency](/usc/15/632.md?p=b) for awards of not more than $30,000,000 to a [small business concern](/usc/15/636e.md?p=6) with funds made available under a strategic breakthrough allocation (as defined in [subsection (ff)(3)(A)](#ff-3-A)).
- (bb) **Subsequent Phase II awards—**
  - (1) **Agency flexibility—** A [small business concern](/usc/15/636e.md?p=6) that received a Phase I award from a [Federal agency](/usc/15/632.md?p=b) under this section shall be eligible to receive a subsequent Phase II award from another [Federal agency](/usc/15/632.md?p=b), if the head of each relevant [Federal agency](/usc/15/632.md?p=b) or the relevant component of the [Federal agency](/usc/15/632.md?p=b) makes a written determination that the topics of the relevant awards are the same and both [agencies](/usc/15/632.md?p=b) report the awards to the [Administrator](/usc/15/637c.md?p=1) for inclusion in the public database under [subsection (k)](#k).
  - (2) **SBIR and STTR program flexibility—** A [small business concern](/usc/15/636e.md?p=6) that received a Phase I award under this section under the SBIR program or the STTR program may receive a subsequent Phase II award in either the SBIR program or the STTR program and the participating [agency](/usc/15/632.md?p=b) or [agencies](/usc/15/632.md?p=b) shall report the awards to the [Administrator](/usc/15/637c.md?p=1) for inclusion in the public database under [subsection (k)](#k).
  - (3) **Preventing duplicative awards—** The head of a [Federal agency](/usc/15/632.md?p=b) shall verify that any activity to be performed with respect to a project with a Phase I or Phase II SBIR or STTR award has not been funded under the SBIR program or STTR program of another [Federal agency](/usc/15/632.md?p=b).
- (cc) **Phase flexibility—** Until September 30, 2031, the National Institutes of Health, the Department of Defense[^6] the Department of Energy, the National Aeronautics and Space [Administration](/usc/15/636e.md?p=1), and the Department of Education may each provide to a [small business concern](/usc/15/636e.md?p=6) an award under Phase II of the SBIR program or STTR program with respect to a project, without regard to whether the [small business concern](/usc/15/636e.md?p=6) was provided an award under Phase I of an SBIR program or STTR program with respect to such project, if the head of the applicable [agency](/usc/15/632.md?p=b) determines that the [small business concern](/usc/15/636e.md?p=6) has completed the determinations described in [subsection (e)(4)(A)](#e-4-A) with respect to such project despite not having been provided a Phase I award.
- (dd) **Participation of small business concerns majority-owned by venture capital operating companies, hedge funds, or private equity firms in the SBIR program—**
  - (1) **Authority—** Upon providing a written determination described in [paragraph (2)](#dd-2) to the [Administrator](/usc/15/637c.md?p=1), the Committee on Small Business and Entrepreneurship of the Senate, and the Committee on Small Business and the Committee on Science, Space, and Technology of the House of Representatives, not later than 30 days before the date on which any such award is made—
    - (A) the Director of the National Institutes of Health, the Secretary of Energy, and the Director of the National Science Foundation may award not more than 25 percent of the funds allocated for the SBIR program of the applicable [Federal agency](/usc/15/632.md?p=b) to [small business concerns](/usc/15/636e.md?p=6) that are owned in majority part by multiple [venture capital operating companies](/usc/15/632.md?p=aa), [hedge funds](/usc/15/632.md?p=bb), or [private equity firms](/usc/15/632.md?p=cc) through competitive, merit-based procedures that are open to all eligible [small business concerns](/usc/15/636e.md?p=6); and
    - (B) the head of a [Federal agency](/usc/15/632.md?p=b) other than a [Federal agency](/usc/15/632.md?p=b) described in [subparagraph (A)](#dd-1-A) that participates in the SBIR program may award not more than 15 percent of the funds allocated for the SBIR program of the [Federal agency](/usc/15/632.md?p=b) to [small business concerns](/usc/15/636e.md?p=6) that are owned in majority part by multiple [venture capital operating companies](/usc/15/632.md?p=aa), [hedge funds](/usc/15/632.md?p=bb), or [private equity firms](/usc/15/632.md?p=cc) through competitive, merit-based procedures that are open to all eligible [small business concerns](/usc/15/636e.md?p=6).
  - (2) **Determination—** A written determination described in this paragraph is a written determination by the head of a [Federal agency](/usc/15/632.md?p=b) that explains how the use of the authority under [paragraph (1)](#dd-1) will—
    - (A) induce additional venture capital, [hedge fund](/usc/15/632.md?p=bb), or [private equity firm](/usc/15/632.md?p=cc) funding of small business innovations;
    - (B) substantially contribute to the mission of the [Federal agency](/usc/15/632.md?p=b);
    - (C) demonstrate a need for public research; and
    - (D) otherwise fulfill the capital needs of [small business concerns](/usc/15/636e.md?p=6) for additional financing for SBIR projects.
  - (3) **Registration—** A [small business concern](/usc/15/636e.md?p=6) that is majority-owned by multiple [venture capital operating companies](/usc/15/632.md?p=aa), [hedge funds](/usc/15/632.md?p=bb), or [private equity firms](/usc/15/632.md?p=cc) and qualified for participation in the program authorized under [paragraph (1)](#dd-1) shall—
    - (A) register with the [Administrator](/usc/15/637c.md?p=1) on the date that the [small business concern](/usc/15/636e.md?p=6) submits an application for an award under the SBIR program; and
    - (B) indicate in any SBIR proposal that the [small business concern](/usc/15/636e.md?p=6) is registered under [subparagraph (A)](#dd-3-A) as majority-owned by multiple [venture capital operating companies](/usc/15/632.md?p=aa), [hedge funds](/usc/15/632.md?p=bb), or [private equity firms](/usc/15/632.md?p=cc).
  - (4) **Compliance—**
    - (A) **In general—** The head of a [Federal agency](/usc/15/632.md?p=b) that makes an award under this subsection during a fiscal year shall collect and submit to the [Administrator](/usc/15/637c.md?p=1) data relating to the number and dollar amount of Phase I awards, Phase II awards, and any other category of awards by the [Federal agency](/usc/15/632.md?p=b) under the SBIR program during that fiscal year.
    - (B) **Annual reporting—** The [Administrator](/usc/15/637c.md?p=1) shall include as part of each annual report by the [Administration](/usc/15/636e.md?p=1) under [subsection (b)(7)](#b-7) any data submitted under [subparagraph (A)](#dd-4-A) and a discussion of the compliance of each [Federal agency](/usc/15/632.md?p=b) that makes an award under this subsection during the fiscal year with the maximum percentages under [paragraph (1)](#dd-1).
  - (5) **Enforcement—** If a [Federal agency](/usc/15/632.md?p=b) awards more than the percent of the funds allocated for the SBIR program of the [Federal agency](/usc/15/632.md?p=b) authorized under [paragraph (1)](#dd-1) for a purpose described in [paragraph (1)](#dd-1), the head of the [Federal agency](/usc/15/632.md?p=b) shall transfer an amount equal to the amount awarded in excess of the amount authorized under [paragraph (1)](#dd-1) to the funds for general SBIR programs from the non-SBIR and non-STTR research and development funds of the [Federal agency](/usc/15/632.md?p=b) not later than 180 days after the date on which the [Federal agency](/usc/15/632.md?p=b) made the award that caused the total awarded under [paragraph (1)](#dd-1) to be more than the amount authorized under [paragraph (1)](#dd-1) for a purpose described in [paragraph (1)](#dd-1).
  - (6) **Final decisions on applications under the SBIR program—**
    - (A) **Definition—** In this paragraph, the term “covered [small business concern](/usc/15/636e.md?p=6)” means a [small business concern](/usc/15/636e.md?p=6) that—
      - (i) was not majority-owned by multiple [venture capital operating companies](/usc/15/632.md?p=aa), [hedge funds](/usc/15/632.md?p=bb), or [private equity firms](/usc/15/632.md?p=cc) on the date on which the [small business concern](/usc/15/636e.md?p=6) submitted an application in response to a solicitation under the SBIR programs; and
      - (ii) on the date of the award under the SBIR program is majority-owned by multiple [venture capital operating companies](/usc/15/632.md?p=aa), [hedge funds](/usc/15/632.md?p=bb), or [private equity firms](/usc/15/632.md?p=cc).
    - (B) **In general—** If a [Federal agency](/usc/15/632.md?p=b) does not make an award under a solicitation under the SBIR program before the date that is 9 months after the date on which the period for submitting applications under the solicitation ends—
      - (i) a covered [small business concern](/usc/15/636e.md?p=6) is eligible to receive the award, without regard to whether the covered [small business concern](/usc/15/636e.md?p=6) meets the requirements for receiving an award under the SBIR program for a [small business concern](/usc/15/636e.md?p=6) that is majority-owned by multiple [venture capital operating companies](/usc/15/632.md?p=aa), [hedge funds](/usc/15/632.md?p=bb), or [private equity firms](/usc/15/632.md?p=cc), if the covered [small business concern](/usc/15/636e.md?p=6) meets all other requirements for such an award; and
      - (ii) the head of the [Federal agency](/usc/15/632.md?p=b) shall transfer an amount equal to any amount awarded to a covered [small business concern](/usc/15/636e.md?p=6) under the solicitation to the funds for general SBIR programs from the non-SBIR and non-STTR research and development funds of the [Federal agency](/usc/15/632.md?p=b), not later than 90 days after the date on which the [Federal agency](/usc/15/632.md?p=b) makes the award.
  - (7) **Evaluation criteria—** A [Federal agency](/usc/15/632.md?p=b) may not use investment of venture capital or investment from [hedge funds](/usc/15/632.md?p=bb) or [private equity firms](/usc/15/632.md?p=cc) as a criterion for the award of contracts under the SBIR program or STTR program.
- (ee) **Collaborating with Federal laboratories and research and development centers—**
  - (1) **Authorization—** Subject to the limitations under this section, the head of each participating [Federal agency](/usc/15/632.md?p=b) may make SBIR and STTR awards to any eligible [small business concern](/usc/15/636e.md?p=6) that—
    - (A) intends to enter into an [agreement](/usc/15/7a.md?p=2) with a Federal laboratory or federally funded research and development center for portions of the activities to be performed under that award; or
    - (B) has entered into a cooperative research and development [agreement](/usc/15/7a.md?p=2) (as defined in [section 3710a(d) of this title](/usc/15/3710a.md?p=d)) with a Federal laboratory.
  - (2) **Prohibition—** No [Federal agency](/usc/15/632.md?p=b) shall—
    - (A) condition an SBIR or STTR award upon entering into [agreement](/usc/15/7a.md?p=2) with any Federal laboratory or any federally funded laboratory or research and development center for any portion of the activities to be performed under that award;
    - (B) approve an [agreement](/usc/15/7a.md?p=2) between a [small business concern](/usc/15/636e.md?p=6) receiving an SBIR or STTR award and a Federal laboratory or federally funded laboratory or research and development center, if the [small business concern](/usc/15/636e.md?p=6) performs a lesser portion of the activities to be performed under that award than required by this section and by the SBIR Policy Directive and the STTR Policy Directive of the [Administrator](/usc/15/637c.md?p=1); or
    - (C) approve an [agreement](/usc/15/7a.md?p=2) that violates any provision, including any data rights protections provision, of this section or the SBIR and the STTR Policy Directives.
  - (3) **Implementation—** Not later than 180 days after December 31, 2011, the [Administrator](/usc/15/637c.md?p=1) shall modify the SBIR Policy Directive and the STTR Policy Directive issued under this section to ensure that [small business concerns](/usc/15/636e.md?p=6)—
    - (A) have the flexibility to use the resources of the Federal laboratories or federally funded research and development centers; and
    - (B) are not mandated to enter into [agreement](/usc/15/7a.md?p=2) with any Federal laboratory or any federally funded laboratory or research and development center as a condition of an award.
  - (4) **Advance payment—** If a [small business concern](/usc/15/636e.md?p=6) receiving an award under this section enters into an [agreement](/usc/15/7a.md?p=2) with a Federal laboratory or federally funded research and development center for portions of the activities to be performed under that award, the Federal laboratory or federally funded research and development center may not require advance payment from the [small business concern](/usc/15/636e.md?p=6) in an amount greater than the amount necessary to pay for 30 days of such activities.
- (ff) **Additional SBIR and STTR awards—**
  - (1) **Express authority for awarding a sequential Phase II award—** A [small business concern](/usc/15/636e.md?p=6) that receives a Phase II SBIR award or a Phase II STTR award for a project remains eligible to receive 1 additional Phase II SBIR award or Phase II STTR award for continued work on that project.
  - (2) **Preventing duplicative awards—** The head of a [Federal agency](/usc/15/632.md?p=b) shall verify that any activity to be performed with respect to a project with a Phase I or Phase II SBIR or STTR award has not been funded under the SBIR program or STTR program of another [Federal agency](/usc/15/632.md?p=b).
  - (3) **Strategic breakthrough awards—**
    - (A) **Strategic breakthrough allocation defined—** In this paragraph, the term “strategic breakthrough allocation” means, with respect to a [Federal agency](/usc/15/632.md?p=b) with a required expenditure under [subsection (f)(1)](#f-1) in excess of $100,000,000, an expenditure amount from the SBIR allocation under [subsection (f)(1)](#f-1) of such [agency](/usc/15/632.md?p=b) of not more than 0.50 percent of the extramural budget for research or research and development designated for such [agency](/usc/15/632.md?p=b) for fiscal year 2026 and every fiscal year thereafter.
    - (B) **Award—** Under this paragraph, a funding [agreement](/usc/15/7a.md?p=2) may be awarded to a [small business concern](/usc/15/636e.md?p=6) by a [Federal agency](/usc/15/632.md?p=b) using funds made available under a strategic breakthrough allocation.
    - (C) **Fund parameters—** In the case of a Phase II [agreement](/usc/15/7a.md?p=2) that is awarded to a [small business concern](/usc/15/636e.md?p=6) by a [Federal agency](/usc/15/632.md?p=b) using funds made available under a strategic breakthrough allocation, the following requirements shall apply:
      - (i) **Award size and period of performance—** A [Federal agency](/usc/15/632.md?p=b) may award from a strategic breakthrough allocation not more than $30,000,000 to a [small business concern](/usc/15/636e.md?p=6), including its affiliates, in a single award or series of awards based on reaching production or development milestones, if the total period of performance of the project with respect to which such funds are awarded is not more than 48 months.
      - (ii) **Small business concern requirements—** The [small business concern](/usc/15/636e.md?p=6) shall—
        - (I) have been awarded not less than 1 prior Phase II award under the SBIR or STTR program;
        - (II) demonstrate not less than 100 percent matching funds from—
          - (aa) new private capital as a result of an award using funds made available under a strategic breakthrough allocation;
          - (bb) new funding awarded by a government [agency](/usc/15/632.md?p=b) under a program other than Phase I or II of the SBIR or STTR program as a result of an award using funds made available under a strategic breakthrough allocation; or
          - (cc) a combination of funds described in items [(aa)](#ff-3-C-ii-II-aa) and [(bb)](#ff-3-C-ii-II-bb);
        - (III) demonstrate a technology that is an effective solution, as determined by market research; and
        - (IV) only be eligible for an award from the strategic breakthrough allocation at the Department of Defense if the [small business concern](/usc/15/636e.md?p=6)—
          - (aa) provides a product, process, or technology that meets a necessary level of readiness and has a commitment for inclusion in a program objective memorandum from an official with the rank of program acquisition executive or higher in an acquisition organization of the Department of Defense;
          - (bb) provides a product, process, or technology that will meet high priority requirements or operational needs of a military department through a successful transition and into the acquisition process; and
          - (cc) demonstrates not less than 20 percent of the required matching funds under [subclause (II)](#ff-3-C-ii-II) come from new funding awarded by the Department of Defense under a program other than Phase I or II of the SBIR or STTR program as a result of an award using funds made available under a strategic breakthrough allocation.
      - (iii) **Deadline—** The [Federal agency](/usc/15/632.md?p=b) shall complete any contract awards using strategic breakthrough allocation funds not later than 90 days after receiving a proposal from a [small business concern](/usc/15/636e.md?p=6) for the award.
      - (iv) **Eligible activities—** Eligible activities by a [small business concern](/usc/15/636e.md?p=6) using strategic breakthrough allocation funds are any critical technology areas or requirements deemed necessary by the [Federal agency](/usc/15/632.md?p=b).
      - (v) **Selection criteria—** In making awards using funds made available under a strategic breakthrough allocation, the [Federal agency](/usc/15/632.md?p=b) shall consider—
        - (I) the potential of the [small business concern](/usc/15/636e.md?p=6) to advance the national security capabilities of the United States;
        - (II) the potential of the [small business concern](/usc/15/636e.md?p=6) to provide new technologies or processes, or new applications of existing technologies, that will enable new alternatives to existing programs;
        - (III) whether a customer in a [Federal agency](/usc/15/632.md?p=b) has expressed an intent to purchase and integrate technology from the [small business concern](/usc/15/636e.md?p=6) into its operations; or
        - (IV) whether a particular technology area is undercapitalized by private investment.
    - (D) **Use of streamlined contracting mechanisms—** Each [Federal agency](/usc/15/632.md?p=b) shall implement streamlined processes and requirements for submitting proposals and applying for awards using funds made available under a strategic breakthrough allocation.
- (gg) **Pilot program—**
  - (1) **Authorization—** The head of each covered [Federal agency](/usc/15/632.md?p=b) may allocate not more than 10 percent of the funds allocated to the SBIR program and the STTR program of the covered [Federal agency](/usc/15/632.md?p=b)—
    - (A) for awards for technology development, testing, evaluation, and commercialization assistance for SBIR and STTR Phase II technologies; or
    - (B) to support the progress of research, research and development, and commercialization conducted under the SBIR or STTR programs to Phase III.
  - (2) **Application by Federal agency—**
    - (A) **In general—** A covered [Federal agency](/usc/15/632.md?p=b) may not establish a pilot program unless the covered [Federal agency](/usc/15/632.md?p=b) makes a written application to the [Administrator](/usc/15/637c.md?p=1), not later than 90 days before the first day of the fiscal year in which the pilot program is to be established, that describes a compelling reason that additional investment in SBIR or STTR technologies is necessary, including unusually high regulatory, systems integration, or other costs relating to development or manufacturing of identifiable, highly promising small business technologies or a class of such technologies expected to substantially advance the mission of the [agency](/usc/15/632.md?p=b).
    - (B) **Determination—** The [Administrator](/usc/15/637c.md?p=1) shall—
      - (i) make a determination regarding an application submitted under [subparagraph (A)](#gg-2-A) not later than 30 days before the first day of the fiscal year for which the application is submitted;
      - (ii) publish the determination in the Federal Register; and
      - (iii) make a copy of the determination and any related materials available to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business and the Committee on Science, Space, and Technology of the House of Representatives.
  - (3) **Maximum amount of award—** The head of a covered [Federal agency](/usc/15/632.md?p=b) may not make an award under a pilot program in excess of 3 times the dollar amounts generally established for Phase II awards under subsection [(j)(2)(D)](#j-2-D) or [(p)(2)(B)(ix)](#p-2-B-ix).
  - (4) **Registration—** Any [applicant](/usc/15/7a.md?p=3) that receives an award under a pilot program shall register with the [Administrator](/usc/15/637c.md?p=1) in a registry that is available to the public.
  - (5) **Award criteria or consideration—** When making an award under this section, the head of a covered [Federal agency](/usc/15/632.md?p=b) shall give consideration to whether the technology to be supported by the award is likely to be manufactured in the United States.
  - (6) **Report—** The head of each covered [Federal agency](/usc/15/632.md?p=b) shall include in the annual report of the covered [Federal agency](/usc/15/632.md?p=b) to the [Administrator](/usc/15/637c.md?p=1) an analysis of the various activities considered for inclusion in the pilot program of the covered [Federal agency](/usc/15/632.md?p=b) and a statement of the reasons why each activity considered was included or not included, as the case may be.
  - (7) **Termination—** The authority to establish a pilot program under this section expires at the end of fiscal year 2031.
  - (8) **Definitions—** In this subsection—
    - (A) the term “covered [Federal agency](/usc/15/632.md?p=b)”—
      - (i) means a [Federal agency](/usc/15/632.md?p=b) participating in the SBIR program or the STTR program; and
      - (ii) does not include the Department of Defense; and
    - (B) the term “pilot program” means each program established under [paragraph (1)](#gg-1).
- (hh) **Timing of release of funding—**
  - (1) **In general—** [Federal agencies](/usc/15/632.md?p=b) participating in the SBIR program or STTR program shall, to the extent possible, shorten the amount of time between the provision of notice of an award under the SBIR program or STTR program and the subsequent release of funding with respect to the award.
  - (2) **Pilot program to accelerate Department of Defense SBIR and STTR awards—**
    - (A) **In general—** Not later than 1 year after August 13, 2018, the Under Secretary of Defense for Research and Engineering, acting through the Director of Defense Procurement and Acquisition Policy of the Department of Defense, shall establish a pilot program to reduce the time for awards under the SBIR and STTR programs of the Department of Defense, under which the Department of Defense shall—
      - (i) develop simplified and standardized procedures and model contracts throughout the Department of Defense for Phase I, Phase II, and Phase III SBIR awards;
      - (ii) for Phase I SBIR and STTR awards, reduce the amount of time between solicitation closure and award;
      - (iii) for Phase II SBIR and STTR awards, reduce the amount of time between the end of a Phase I award and the start of the Phase II award;
      - (iv) for Phase II SBIR and STTR awards that skip Phase I, reduce the amount of time between solicitation closure and award;
      - (v) for sequential Phase II SBIR and STTR awards, reduce the amount of time between Phase II awards; and
      - (vi) reduce the award times described in clauses [(ii)](#hh-2-A-ii), [(iii)](#hh-2-A-iii), [(iv)](#hh-2-A-iv), and [(v)](#hh-2-A-v) to be as close to 90 days as possible.
    - (B) **Consultation—** In carrying out the pilot program under [subparagraph (A)](#hh-2-A), the Director of Defense Procurement and Acquisition Policy of the Department of Defense shall consult with the Director of the Office of Small Business Programs of the Department of Defense.
    - (C) **Termination—** The pilot program under [subparagraph (A)](#hh-2-A) shall terminate on September 30, 2031.
- (ii) **Reporting on timing—**
  - (1) **In general—** [Federal agencies](/usc/15/632.md?p=b) participating in the SBIR program or STTR program shall provide to the [Administrator](/usc/15/637c.md?p=1), for the annual report on the SBIR and STTR program under [subsection (b)(7)](#b-7), the average amount of time the [agency](/usc/15/632.md?p=b) takes to make a final decision on proposals submitted under such programs, the average amount of time the [agency](/usc/15/632.md?p=b) takes to release funding with respect to an award under such programs, and the goals established to reduce such amounts.
  - (2) **Comptroller General reports—** The Comptroller General of the United States shall submit to the Committee on Small Business and Entrepreneurship of the Senate, the Committee on Armed Services of the Senate, the Committee on Small Business of the House of Representatives, and the Committee on Armed Services of the House of Representatives—
    - (A) not later than 1 year after August 13, 2018, and every year thereafter for 3 years, a report that—
      - (i) provides the average and median amount of time that each component of the Department of Defense with an SBIR or STTR program takes to review and make a final decision on proposals submitted under the program; and
      - (ii) compares that average and median amount of time with that of other [Federal agencies](/usc/15/632.md?p=b) participating in the SBIR or STTR program; and
    - (B) not later than December 5, 2021, a report that—
      - (i) includes the information described in [subparagraph (A)](#ii-2-A);
      - (ii) assesses where each [Federal agency](/usc/15/632.md?p=b) participating in the SBIR or STTR program needs improvement with respect to the proposal review and award times under the program;
      - (iii) identifies best practices for shortening the proposal review and award times under the SBIR and STTR programs, including the pros and cons of using contracts compared to grants; and
      - (iv) analyzes the efficacy of the pilot program established under [subsection (hh)(2)](#hh-2).
- (jj) **Phase 0 Proof of Concept Partnership pilot program—**
  - (1) **In general—** The Director of the National Institutes of Health may use $5,000,000 of the funds allocated under [subsection (n)(1)](#n-1) for a Proof of Concept Partnership pilot program to accelerate the creation of small businesses and the commercialization of research innovations from qualifying institutions. To implement this program, the Director shall award, through a competitive, merit-based process, grants to qualifying institutions. These grants shall only be used to administer Proof of Concept Partnership awards in conformity with this subsection.
  - (2) **Definitions—** In this subsection—
    - (A) the term “Director” means the Director of the National Institutes of Health;
    - (B) the term “pilot program” refers to the Proof of Concept Partnership pilot program; and
    - (C) the terms “qualifying institution” and “institution” mean a university or other research institution that participates in the National Institutes of Health’s STTR program.
  - (3) **Proof of Concept Partnerships—**
    - (A) **In general—** A Proof of Concept Partnership shall be set up by a qualifying institution to award grants to individual researchers. These grants should provide researchers with the initial investment and the resources to support the proof of concept work and commercialization mentoring needed to translate promising research projects and technologies into a viable company. This work may include technical validations, market research, clarifying intellectual property rights position and strategy, and investigating commercial or business opportunities.
    - (B) **Award guidelines—** The [administrator](/usc/15/637c.md?p=1) of a Proof of Concept Partnership program shall award grants in accordance with the following guidelines:
      - (i) The Proof of Concept Partnership shall use a market-focused project management oversight process, including—
        - (I) a rigorous, diverse review board comprised of local experts in translational and proof of concept research, including industry, start-up, venture capital, technical, financial, and business experts and university technology transfer officials;
        - (II) technology validation milestones focused on market feasibility;
        - (III) simple reporting effective at redirecting projects; and
        - (IV) the willingness to reallocate funding from failing projects to those with more potential.
      - (ii) Not more than $100,000 shall be awarded towards an individual proposal.
    - (C) **Educational resources and guidance—** The [administrator](/usc/15/637c.md?p=1) of a Proof of Concept Partnership program shall make educational resources and guidance available to researchers attempting to commercialize their innovations.
  - (4) **Awards—**
    - (A) **Size of award—** The Director may make awards to a qualifying institution for up to $1,000,000 per year for up to 4 years.
    - (B) **Award criteria—** In determining which qualifying institutions receive pilot program grants, the Director shall consider, in addition to any other criteria the Director determines necessary, the extent to which qualifying institutions—
      - (i) have an established and proven technology transfer or commercialization office and have a plan for engaging that office in the program’s implementation;
      - (ii) have demonstrated a commitment to local and regional economic development;
      - (iii) are located in diverse geographies and are of diverse sizes;
      - (iv) can assemble project management boards comprised of industry, start-up, venture capital, technical, financial, and business experts;
      - (v) have an intellectual property rights strategy or office; and
      - (vi) demonstrate a plan for sustainability beyond the duration of the funding award.
  - (5) **Limitations—** The funds for the pilot program shall not be used—
    - (A) for basic research, but to evaluate the commercial potential of existing discoveries, including—
      - (i) proof of concept research or prototype development; and
      - (ii) activities that contribute to determining a project’s commercialization path, to include technical validations, market research, clarifying intellectual property rights, and investigating commercial and business opportunities; or
    - (B) to fund the acquisition of research equipment or supplies unrelated to commercialization activities.
  - (6) **Evaluative report—** The Director shall submit to the Committee on Science, Space, and Technology and the Committee on Small Business of the House of Representatives and the Committee on Small Business and Entrepreneurship of the Senate an evaluative report regarding the activities of the pilot program. The report shall include—
    - (A) a detailed description of the institutional and proposal selection process;
    - (B) an accounting of the funds used in the pilot program;
    - (C) a detailed description of the pilot program, including incentives and activities undertaken by review board experts;
    - (D) a detailed compilation of results achieved by the pilot program, including the number of [small business concerns](/usc/15/636e.md?p=6) included and the number of business packages developed, and the number of projects that progressed into subsequent STTR phases; and
    - (E) an analysis of the program’s effectiveness with supporting data.
  - (7) **Sunset—** The pilot program under this subsection shall terminate at the end of fiscal year 2031.
- (kk) **Phase III reporting—** The annual SBIR or STTR report to Congress by the [Administration](/usc/15/636e.md?p=1) under [subsection (b)(7)](#b-7) shall include, for each Phase III award—
  - (1) the name of the [agency](/usc/15/632.md?p=b) or component of the [agency](/usc/15/632.md?p=b) or the non-Federal source of capital making the Phase III award;
  - (2) the name of the [small business concern](/usc/15/636e.md?p=6) or individual receiving the Phase III award; and
  - (3) the dollar amount of the Phase III award.
- (ll) **Consent to release contact information to organizations—**
  - (1) **Enabling concern to give consent—** Each [Federal agency](/usc/15/632.md?p=b) required by this section to conduct an SBIR program or an STTR program shall enable a [small business concern](/usc/15/636e.md?p=6) that is an SBIR [applicant](/usc/15/7a.md?p=3) or an STTR [applicant](/usc/15/7a.md?p=3) to indicate to the [Federal agency](/usc/15/632.md?p=b) whether the [Federal agency](/usc/15/632.md?p=b) has the consent of the concern to—
    - (A) identify the concern to appropriate local and [State](/usc/15/15g.md?p=2)-level economic development organizations as an SBIR [applicant](/usc/15/7a.md?p=3) or an STTR [applicant](/usc/15/7a.md?p=3); and
    - (B) release the contact information of the concern to such organizations.
  - (2) **Rules—** The [Administrator](/usc/15/637c.md?p=1) shall establish rules to implement this subsection. The rules shall include a requirement that a [Federal agency](/usc/15/632.md?p=b) include in the SBIR and STTR application a provision through which the [applicant](/usc/15/7a.md?p=3) can indicate consent for purposes of [paragraph (1)](#ll-1).
- (mm) **Assistance for administrative, oversight, and contract processing costs—**
  - (1) **In general—** Subject to [paragraph (3)](#mm-3) and until September 30, 2031, the [Administrator](/usc/15/637c.md?p=1) shall allow each [Federal agency](/usc/15/632.md?p=b) required to conduct an SBIR program to use not more than 3 percent of the funds allocated to the SBIR program of the [Federal agency](/usc/15/632.md?p=b) for—
    - (A) the [administration](/usc/15/636e.md?p=1) of the SBIR program or the STTR program of the [Federal agency](/usc/15/632.md?p=b);
    - (B) the provision of outreach and technical assistance relating to the SBIR program or STTR program of the [Federal agency](/usc/15/632.md?p=b), including technical assistance site visits, personnel interviews, and national conferences;
    - (C) the implementation of commercialization and outreach initiatives that were not in effect on December 31, 2011;
    - (D) carrying out the program under [subsection (y)](#y);
    - (E) activities relating to oversight and congressional reporting, including waste, fraud, and abuse prevention activities;
    - (F) targeted reviews of recipients of awards under the SBIR program or STTR program of the [Federal agency](/usc/15/632.md?p=b) that the head of the [Federal agency](/usc/15/632.md?p=b) determines are at high risk for fraud, waste, or abuse to ensure compliance with requirements of the SBIR program or STTR program, respectively;
    - (G) the implementation of oversight and quality control measures, including verification of reports and invoices and cost reviews;
    - (H) carrying out [subsection (dd)](#dd);
    - (I) contract processing costs relating to the SBIR program or STTR program of the [Federal agency](/usc/15/632.md?p=b);
    - (J) funding for additional personnel and assistance with application reviews;
    - (K) funding for improvements that increase commonality across data systems, reduce redundancy, and improve data oversight and accuracy; and
    - (L) contracting officer and acquisition workforce training activities pursuant to [subsection (r)(5)](#r-5).
  - (2) **Outreach and technical assistance—**
    - (A) **In general—** Except as provided in [subparagraph (B)](#mm-2-B), a [Federal agency](/usc/15/632.md?p=b) participating in the program under this subsection shall use a portion of the funds authorized for uses under [paragraph (1)](#mm-1) to carry out the policy directive required under [subsection (j)(2)(F)](#j-2-F) and to increase the participation of [States](/usc/15/15g.md?p=2) with respect to which a low level of SBIR awards have historically been awarded.
    - (B) **Waiver—** A [Federal agency](/usc/15/632.md?p=b) may request the [Administrator](/usc/15/637c.md?p=1) to waive the requirement contained in [subparagraph (A)](#mm-2-A). Such request shall include an explanation of why the waiver is necessary. The [Administrator](/usc/15/637c.md?p=1) may grant the waiver based on a determination that the [agency](/usc/15/632.md?p=b) has demonstrated a sufficient need for the waiver, that the outreach objectives of the [agency](/usc/15/632.md?p=b) are being met, and that there is increased participation by [States](/usc/15/15g.md?p=2) with respect to which a low level of SBIR awards have historically been awarded.
  - (3) **Performance criteria—** A [Federal agency](/usc/15/632.md?p=b) may not use funds as authorized under [paragraph (1)](#mm-1) until after the effective date of performance criteria, which the [Administrator](/usc/15/637c.md?p=1) shall establish, to measure any benefits of using funds as authorized under [paragraph (1)](#mm-1) and to assess continuation of the authority under [paragraph (1)](#mm-1).
  - (4) **Rules—** Not later than 180 days after December 31, 2011, the [Administrator](/usc/15/637c.md?p=1) shall issue rules to carry out this subsection.
  - (5) **Coordination with IG—** Each [Federal agency](/usc/15/632.md?p=b) shall coordinate the activities funded under subparagraph [(E)](#mm-1-E), [(F)](#mm-1-F), or [(G)](#mm-1-G) of paragraph (1) with their respective Inspectors General, when appropriate, and each [Federal agency](/usc/15/632.md?p=b) that allocates more than $50,000,000 to the SBIR program of the [Federal agency](/usc/15/632.md?p=b) for a fiscal year may share such funding with its Inspector General when the Inspector General performs such activities.
  - (6) **Reporting—** The [Administrator](/usc/15/637c.md?p=1) shall collect data and provide to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business, the Committee on Science, Space, and Technology, and the Committee on Appropriations of the House of Representatives a report on the use of funds under this subsection, including funds used to achieve the objectives of [paragraph (2)(A)](#mm-2-A) and any use of the waiver authority under [paragraph (2)(B)](#mm-2-B).
- (nn) **Annual report on SBIR and STTR program goals—**
  - (1) **Development of metrics—** The head of each [Federal agency](/usc/15/632.md?p=b) required to participate in the SBIR program or the STTR program shall develop metrics to evaluate the effectiveness and the benefit to the people of the United States of the SBIR program and the STTR program of the [Federal agency](/usc/15/632.md?p=b) that—
    - (A) are science-based and statistically driven;
    - (B) reflect the mission of the [Federal agency](/usc/15/632.md?p=b); and
    - (C) include factors relating to the economic impact of the programs.
  - (2) **Evaluation—** The head of each [Federal agency](/usc/15/632.md?p=b) described in [paragraph (1)](#nn-1) shall conduct an annual evaluation using the metrics developed under [paragraph (1)](#nn-1) of—
    - (A) the SBIR program and the STTR program of the [Federal agency](/usc/15/632.md?p=b); and
    - (B) the benefits to the people of the United States of the SBIR program and the STTR program of the [Federal agency](/usc/15/632.md?p=b).
  - (3) **Report—**
    - (A) **In general—** The head of each [Federal agency](/usc/15/632.md?p=b) described in [paragraph (1)](#nn-1) shall submit to the appropriate committees of Congress and the [Administrator](/usc/15/637c.md?p=1) an annual report describing in detail the results of an evaluation conducted under [paragraph (2)](#nn-2).
    - (B) **Public availability of report—** The head of each [Federal agency](/usc/15/632.md?p=b) described in [paragraph (1)](#nn-1) shall make each report submitted under [subparagraph (A)](#nn-3-A) available to the public online.
    - (C) **Definition—** In this paragraph, the term “appropriate committees of Congress” means—
      - (i) the Committee on Small Business and Entrepreneurship of the Senate; and
      - (ii) the Committee on Small Business and the Committee on Science, Space, and Technology of the House of Representatives.
- (oo) **Competitive selection procedures for SBIR and STTR programs—** All funds awarded, appropriated, or otherwise made available in accordance with subsection [(f)](#f) or [(n)](#n) must be awarded pursuant to competitive and merit-based selection procedures.
- (pp) **Limitation on pilot programs—**
  - (1) **Existing pilot programs—** The [Administrator](/usc/15/637c.md?p=1) may only carry out a covered pilot program that is in operation on December 31, 2011, during the 3-year period beginning on such date.
  - (2) **New pilot programs—** The [Administrator](/usc/15/637c.md?p=1) may only carry out a covered pilot program established after December 31, 2011—
    - (A) during the 3-year period beginning on the date on which such program is established; and
    - (B) if such program does not continue and is not based on, in any manner, a previously established covered pilot program.
  - (3) **Covered pilot program defined—** In this subsection, the term “covered pilot program” means any initiative, project, innovation, or other activity—
    - (A) established by the [Administrator](/usc/15/637c.md?p=1);
    - (B) relating to an SBIR or STTR program; and
    - (C) not specifically authorized by law.
- (qq) **Minimum standards for participation—**
  - (1) **Progress to Phase II success—**
    - (A) **Establishment of system and minimum commercialization rate—** Not later than 1 year after December 31, 2011, the head of each [Federal agency](/usc/15/632.md?p=b) participating in the SBIR or STTR program shall—
      - (i) establish a system to measure, where appropriate, the success of [small business concerns](/usc/15/636e.md?p=6) with respect to the receipt of Phase II SBIR or STTR awards for projects that have received Phase I SBIR or STTR awards;
      - (ii) establish a minimum performance standard for [small business concerns](/usc/15/636e.md?p=6) with respect to the receipt of Phase II SBIR or STTR awards for projects that have received Phase I SBIR or STTR awards; and
      - (iii) begin evaluating, each fiscal year, whether each [small business concern](/usc/15/636e.md?p=6) that received a Phase I SBIR or STTR award from the [agency](/usc/15/632.md?p=b) meets the minimum performance standard established under [clause (ii)](#qq-1-A-ii).
    - (B) **Consequence of failure to meet minimum commercialization rate—** If the head of a [Federal agency](/usc/15/632.md?p=b) determines that a [small business concern](/usc/15/636e.md?p=6) that received a Phase I SBIR or STTR award from the [agency](/usc/15/632.md?p=b) is not meeting the minimum performance standard established under [subparagraph (A)(ii)](#qq-1-A-ii), such concern may not participate in Phase I (or Phase II if under the authority of [subsection (cc)](#cc)) of the SBIR or STTR program of that [agency](/usc/15/632.md?p=b) during the 1-year period beginning on the date on which such determination is made.
  - (2) **Progress to Phase III success—**
    - (A) **Establishment of system and minimum commercialization rate—** Not later than 2 years after December 31, 2011, the head of each [Federal agency](/usc/15/632.md?p=b) participating in the SBIR or STTR program shall—
      - (i) establish a system to measure, where appropriate, the success of [small business concerns](/usc/15/636e.md?p=6) with respect to the receipt of Phase III SBIR or STTR awards for projects that have received Phase I SBIR or STTR awards;
      - (ii) establish a minimum performance standard for [small business concerns](/usc/15/636e.md?p=6) with respect to the receipt of Phase III SBIR or STTR awards for projects that have received Phase I SBIR or STTR awards; and
      - (iii) begin evaluating, each fiscal year, whether each [small business concern](/usc/15/636e.md?p=6) that received a Phase I SBIR or STTR award from the [agency](/usc/15/632.md?p=b) meets the minimum performance standard established under [clause (ii)](#qq-2-A-ii).
    - (B) **Consequence of failure to meet minimum commercialization rate—** If the head of a [Federal agency](/usc/15/632.md?p=b) determines that a [small business concern](/usc/15/636e.md?p=6) that received a Phase I SBIR or STTR award from the [agency](/usc/15/632.md?p=b) is not meeting the minimum performance standard established under [subparagraph (A)(ii)](#qq-2-A-ii), such concern may not participate in Phase I (or Phase II if under the authority of [subsection (cc)](#cc)) of the SBIR or STTR program of that [agency](/usc/15/632.md?p=b) during the 1-year period beginning on the date on which such determination is made.
  - (3) **Increased minimum performance standards for experienced firms—**
    - (A) **Progress to Phase II success—**
      - (i) **In general—** With respect to a [small business concern](/usc/15/636e.md?p=6) that received or receives more than 50 Phase I awards during a covered period, each minimum performance standard established under [paragraph (1)(A)(ii)](#qq-1-A-ii) shall be doubled for such covered period.
      - (ii) **Consequence of failure to meet standard—** If the head of a [Federal agency](/usc/15/632.md?p=b) determines that a [small business concern](/usc/15/636e.md?p=6) that received a Phase I award from the [Federal agency](/usc/15/632.md?p=b) is not meeting an applicable increased minimum performance standard modified under [clause (i)](#qq-3-A-i), the [small business concern](/usc/15/636e.md?p=6) may not receive more than 20 total Phase I awards and Phase II awards under [subsection (cc)](#cc) from each [Federal agency](/usc/15/632.md?p=b) during the 1-year period beginning on the date on which such determination is made.
      - (iii) **Covered period defined—** In this subparagraph, the term “covered period” means a consecutive period of 5 fiscal years preceding the most recent fiscal year.
    - (B) **Progress to Phase III success—**
      - (i) **In general—** Each minimum performance standard established under [paragraph (2)(A)(ii)](#qq-2-A-ii) shall—
        - (I) with respect to a [small business concern](/usc/15/636e.md?p=6) that received or receives more than 50 Phase II awards during a covered period, require an average of $250,000 of aggregate sales and investments per Phase II award received during such covered period; and
        - (II) with respect to a [small business concern](/usc/15/636e.md?p=6) that received or receives more than 100 Phase II awards during a covered period, require an average of $450,000 of aggregate sales and investments per Phase II award received during such covered period.
      - (ii) **Consequence of failure to meet standard—** If the head of a [Federal agency](/usc/15/632.md?p=b) determines that a [small business concern](/usc/15/636e.md?p=6) that received a Phase I award from the [agency](/usc/15/632.md?p=b) is not meeting an applicable increased minimum performance standard modified under [clause (i)](#qq-3-B-i), the [small business concern](/usc/15/636e.md?p=6) may not receive more than 20 total Phase I awards and Phase II awards under [subsection (cc)](#cc) from each [agency](/usc/15/632.md?p=b) during the 1-year period beginning on the date on which such determination is made.
      - (iii) **Documentation—**
        - (I) **In general—** A [small business concern](/usc/15/636e.md?p=6) that is subject to an increased minimum performance standard described in [clause (i)](#qq-3-B-i) shall submit to the [Administrator](/usc/15/637c.md?p=1) supporting documentation evidencing that all covered sales of the [small business concern](/usc/15/636e.md?p=6) were properly used to meet the increased minimum performance standard.
        - (II) **Covered sale defined—** In this clause, the term “covered sale” means a sale by a [small business concern](/usc/15/636e.md?p=6)—
          - (aa) that the [small business concern](/usc/15/636e.md?p=6) claims to be attributable to an SBIR or STTR award;
          - (bb) for which no amount of the payment was or is made using Federal funds;
          - (cc) which the [small business concern](/usc/15/636e.md?p=6) uses to meet an applicable increased minimum performance standard under [clause (i)](#qq-3-B-i); and
          - (dd) that was or is received during the 5 fiscal years immediately preceding the fiscal year in which the [small business concern](/usc/15/636e.md?p=6) uses the sale to meet the increased minimum performance standard.
      - (iv) **Covered period defined—** In this subparagraph, the term “covered period” means a consecutive period of 10 fiscal years preceding the most recent 2 fiscal years.
    - (C) **Patents for increased minimum performance standards—** A [small business concern](/usc/15/636e.md?p=6) with respect to which an increased minimum performance standard under [subparagraph (B)](#qq-3-B) applies may not meet the increased minimum performance standard by obtaining patents.
    - (D) **Effective date—** Subparagraphs [(A)](#qq-3-A) through [(C)](#qq-3-C) shall take effect on April 1, 2023.
    - (E) **Waiver—**
      - (i) **In general—** The [Administrator](/usc/15/637c.md?p=1) may, upon the request of a senior official of a [Federal agency](/usc/15/632.md?p=b), grant a waiver with respect to a topic for the SBIR or STTR program of the [Federal agency](/usc/15/632.md?p=b) if—
        - (I) the topic is critical to the mission of the [Federal agency](/usc/15/632.md?p=b) or relates to national security; and
        - (II) the official submits to the [Administrator](/usc/15/637c.md?p=1) a request for the waiver in accordance with [clause (iii)](#qq-3-E-iii).
      - (ii) **Waiver effects—** If the [Administration](/usc/15/636e.md?p=1) grants a waiver with respect to a topic for the SBIR or STTR program of a [Federal agency](/usc/15/632.md?p=b), subparagraphs [(A)(ii)](#qq-3-A-ii) and [(B)(ii)](#qq-3-B-ii) shall not prohibit any covered [small business concern](/usc/15/636e.md?p=6) from receiving an SBIR or STTR award under such topic.
      - (iii) **Agency request and congressional notification—** Not later than 15 days before the release of a solicitation including a topic for which a senior official of a [Federal agency](/usc/15/632.md?p=b) is requesting a waiver under [clause (i)](#qq-3-E-i), the senior official shall submit to the [Administrator](/usc/15/637c.md?p=1), the Committee on Small Business and the Committee on Science, Space, and Technology of the House of Representatives, and the Committee on Small Business and Entrepreneurship of the Senate a request for the waiver.
      - (iv) **Administrator determination and congressional notification—** Not later than 15 days after receiving a request for a waiver under [clause (i)](#qq-3-E-i), the [Administrator](/usc/15/637c.md?p=1) shall make a determination with respect to the request and notify the senior official at the [Federal agency](/usc/15/632.md?p=b) that made the request, the Committee on Small Business and the Committee on Science, Space, and Technology of the House of Representatives, and the Committee on Small Business and Entrepreneurship of the Senate of the determination.
      - (v) **Definitions—** In this subparagraph:
        - (I) **Covered small business concern—** The term “covered [small business concern](/usc/15/636e.md?p=6)” means a [small business concern](/usc/15/636e.md?p=6) that is subject to the consequences under subparagraph [(A)(ii)](#qq-3-A-ii) or [(B)(ii)](#qq-3-B-ii) pursuant to a determination by the head of a [Federal agency](/usc/15/632.md?p=b) that such [small business concern](/usc/15/636e.md?p=6) did not meet an increased minimum performance standard that was applicable to such [small business concern](/usc/15/636e.md?p=6).
        - (II) **Senior official—** The term “senior official” means an individual appointed to a position in a [Federal agency](/usc/15/632.md?p=b) that is classified above GS–15 pursuant [section 5108 of title 5](/usc/5/5108.md), or any equivalent position, as determined by the [Administrator](/usc/15/637c.md?p=1).
    - (F) **Reporting—**
      - (i) **In general—** Not later than July 1, 2023, and annually thereafter, the [Administrator](/usc/15/637c.md?p=1) shall submit to Congress a list of the [small business concerns](/usc/15/636e.md?p=6) that did not meet—
        - (I) an applicable minimum performance standard established under paragraph [(1)(A)(ii)](#qq-1-A-ii) or [(2)(A)(ii)](#qq-2-A-ii); or
        - (II) an applicable increased minimum performance standard.
      - (ii) **Waivers—** Each list submitted under [clause (i)](#qq-3-F-i) shall identify each [small business concern](/usc/15/636e.md?p=6) that received an SBIR or STTR award pursuant to a waiver granted under [subparagraph (E)](#qq-3-E) by the [Administrator](/usc/15/637c.md?p=1) during the period covered by the list.
      - (iii) **Confidentiality—** Each list submitted under [clause (i)](#qq-3-F-i) shall be confidential and exempt from disclosure under [section 552(b)(3) of title 5](/usc/5/552.md?p=b-3) (commonly known as the “Freedom of Information Act”).
    - (G) **Implementation—** Not later than April 1, 2023, the [Administration](/usc/15/636e.md?p=1) shall implement the increased minimum performance standards under this paragraph.
    - (H) **Rules of construction—** Nothing in this paragraph shall be construed—
      - (i) to prohibit a [small business concern](/usc/15/636e.md?p=6) from participating in a Phase I (or Phase II if under the authority of [subsection (cc)](#cc)) of an SBIR or STTR program under paragraph [(1)(B)](#qq-1-B) or [(2)(B)](#qq-2-B) solely on the basis of a determination by the head of a [Federal agency](/usc/15/632.md?p=b) that the [small business concern](/usc/15/636e.md?p=6) is not meeting an increased minimum performance standard; or
      - (ii) to prevent the head of a [Federal agency](/usc/15/632.md?p=b) from implementing more restrictive limitations on the number of federally funded Phase I awards and direct to Phase II awards under [subsection (cc)](#cc) that may be awarded to a [small business concern](/usc/15/636e.md?p=6) than the limitations described in subparagraphs [(A)(ii)](#qq-3-A-ii) and [(B)(ii)](#qq-3-B-ii).
    - (I) **Termination—** This paragraph shall terminate on September 30, 2031.
  - (4) **Administration oversight—**
    - (A) **Approval and publication of systems and minimum performance standards—** Each system and minimum performance standard established under [paragraph (1)](#qq-1) or [paragraph (2)](#qq-2) shall be submitted by the head of the applicable [Federal agency](/usc/15/632.md?p=b) to the [Administrator](/usc/15/637c.md?p=1) and shall be subject to the approval of the [Administrator](/usc/15/637c.md?p=1). In making a determination with respect to approval, the [Administrator](/usc/15/637c.md?p=1) shall ensure that the minimum performance standard exceeds a de minimis level. The [Administrator](/usc/15/637c.md?p=1) shall publish on the Internet Web site of the [Administration](/usc/15/636e.md?p=1) the systems and minimum performance standards approved.
    - (B) **Submission of evaluation results by agency—** The head of each covered [Federal agency](/usc/15/632.md?p=b) shall submit to the [Administrator](/usc/15/637c.md?p=1) the results of each evaluation conducted under [paragraph (1)](#qq-1) or [paragraph (2)](#qq-2).
  - (5) **Requirement of notice and comment—** Each system and minimum performance standard established under [paragraph (1)](#qq-1) or [paragraph (2)](#qq-2) and each approval provided by the [Administrator](/usc/15/637c.md?p=1) under [paragraph (4)(A)](#qq-4-A), at least 60 days before becoming effective, shall be preceded by the provision of notice of and an opportunity for public comment on such system, standard, or approval.
  - (6) **Inspector general audit—** Not later than 1 year after the date on which the [Administrator](/usc/15/637c.md?p=1) implements the increased minimum performance standards under [paragraph (3)](#qq-3), and periodically thereafter, the Inspector General of the [Administration](/usc/15/636e.md?p=1) shall—
    - (A) conduct an audit on whether the [small business concerns](/usc/15/636e.md?p=6) subject to increased minimum performance standards under [paragraph (3)(B)](#qq-3-B) verified—
      - (i) the sales by and investments in the [small business concerns](/usc/15/636e.md?p=6)—
        - (I) during the 5 fiscal years immediately preceding the fiscal year in which the [small business concern](/usc/15/636e.md?p=6) used such sales and investments to meet an applicable increased performance standard; and
        - (II) as a direct result of a Phase I award or Phase II award made under [subsection (cc)](#cc) during the covered period (as defined in [paragraph (3)(B)(iv)](#qq-3-B-iv)), consistent with the definition of Phase III, as applicable;
      - (ii) any third-party revenue the [small business concerns](/usc/15/636e.md?p=6) list as investments or incomes to meet the increased minimum performance standard—
        - (I) is a direct result of a Phase I award or Phase II award made under [subsection (cc)](#cc) during the covered period (as defined in [paragraph (3)(B)(iv)](#qq-3-B-iv)); and
        - (II) consistent with the requirements of the [Administrator](/usc/15/637c.md?p=1) as in effect on September 30, 2022, or any successor requirements; and
      - (iii) any dollar amounts such [small business concerns](/usc/15/636e.md?p=6) 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 (cc)](#cc) during the covered period (as defined in [paragraph (3)(B)(iv)](#qq-3-B-iv)), consistent with the definition of Phase III, as applicable;
    - (B) assess the self-certification requirements for the minimum performance standards established under [paragraph (2)(A)(ii)](#qq-2-A-ii) and the increased minimum performance standards under [paragraph (3)(B)](#qq-3-B); and
    - (C) submit to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business and the Committee on Science, Space, and Technology of the House of Representatives a report on the audit conducted under [subparagraph (A)](#qq-6-A) and the assessment conducted under [subparagraph (B)](#qq-6-B).
  - (7) **Increased minimum performance standard defined—** In this subsection, the term “increased minimum performance standard” means a minimum performance standard established under paragraph [(1)(A)(ii)](#qq-1-A-ii) or [(2)(A)(ii)](#qq-2-A-ii) as modified under subparagraph [(A)](#qq-2-A) or [(B)](#qq-2-B), respectively, of [paragraph (3)](#qq-3) with respect to a [small business concern](/usc/15/636e.md?p=6).
- (rr) **Publication of certain information—** In order to increase the number of small businesses receiving awards under the SBIR or STTR programs of participating [agencies](/usc/15/632.md?p=b), and to simplify the application process for such awards, the [Administrator](/usc/15/637c.md?p=1) shall establish and maintain a public Internet Web site on which the [Administrator](/usc/15/637c.md?p=1) shall publish such information relating to notice of and application for awards under the SBIR program and STTR program of each participating [Federal agency](/usc/15/632.md?p=b) as the [Administrator](/usc/15/637c.md?p=1) determines appropriate.
- (ss) **Report on enhancement of manufacturing activities—** Not later than October 1, 2013, and annually thereafter, the head of each [Federal agency](/usc/15/632.md?p=b) that makes more than $50,000,000 in awards under the SBIR and STTR programs of the [agency](/usc/15/632.md?p=b) combined shall submit to the [Administrator](/usc/15/637c.md?p=1), for inclusion in the annual report required under [subsection (b)(7)](#b-7), information that includes—
  - (1) a description of efforts undertaken by the head of the [Federal agency](/usc/15/632.md?p=b) to enhance United States manufacturing activities;
  - (2) a comprehensive description of the actions undertaken each year by the head of the [Federal agency](/usc/15/632.md?p=b) in carrying out the SBIR or STTR program of the [agency](/usc/15/632.md?p=b) in support of Executive Order 13329 (69 Fed. Reg. 9181; relating to encouraging innovation in manufacturing);
  - (3) an assessment of the effectiveness of the actions described in [paragraph (2)](#ss-2) at enhancing the research and development of United States manufacturing technologies and processes;
  - (4) a description of efforts by vendors selected to provide discretionary technical assistance under [subsection (q)(1)](#q-1) to help SBIR and STTR concerns manufacture in the United States; and
  - (5) recommendations that the program managers of the SBIR or STTR program of the [agency](/usc/15/632.md?p=b) consider appropriate for additional actions to increase the effectiveness of enhancing manufacturing activities.
- (tt) **Outstanding reports and evaluations—**
  - (1) **In general—** Not later than March 30, 2019, the [Administrator](/usc/15/637c.md?p=1) shall submit to the Committee on Small Business and Entrepreneurship of the Senate, the Committee on Small Business of the House of Representatives, and the Committee on Science, Space, and Technology of the House of Representatives—
    - (A) each report, evaluation, or analysis, as applicable, described in subsection [(b)(7)](#b-7), [(g)(9)](#g-9), [(o)(10)](#o-10), (y)(6)(C), [(gg)(6)](#gg-6), [(jj)(6)](#jj-6), and [(mm)(6)](#mm-6); and
    - (B) metrics regarding, and an evaluation of, the authority provided to the National Institutes of Health, the Department of Defense, and the Department of Education under [subsection (cc)](#cc).
  - (2) **Information required—** Not later than December 31, 2018, the head of each [agency](/usc/15/632.md?p=b) that is responsible for carrying out a provision described in subparagraph [(A)](#tt-1-A) or [(B)](#tt-1-B) of paragraph (1) shall submit to the [Administrator](/usc/15/637c.md?p=1) any information that is necessary for the [Administrator](/usc/15/637c.md?p=1) to carry out the responsibilities of the [Administrator](/usc/15/637c.md?p=1) under that paragraph.
- (uu) **Commercialization assistance pilot programs—**
  - (1) **Pilot programs implemented—**
    - (A) **In general—** Except as provided in [subparagraph (B)](#uu-1-B), not later than one year after August 13, 2018, a covered [agency](/usc/15/632.md?p=b) shall implement a commercialization assistance pilot program, under which an eligible entity may receive a subsequent Phase II SBIR award.
    - (B) **Exception—** If the [Administrator](/usc/15/637c.md?p=1) determines that a covered [agency](/usc/15/632.md?p=b) has a program that is sufficiently similar to the commercialization assistance pilot program established under this subsection, such covered [agency](/usc/15/632.md?p=b) shall not be required to implement a commercialization assistance pilot program under this subsection.
  - (2) **Percent of agency funds—** The head of each covered [agency](/usc/15/632.md?p=b) may allocate not more than 5 percent of the funds allocated to the SBIR program of the covered [agency](/usc/15/632.md?p=b) for the purpose of making a subsequent Phase II SBIR award under the commercialization assistance pilot program.
  - (3) **Termination—** A commercialization assistance pilot program established under this subsection shall terminate on September 30, 2031.
  - (4) **Application—** To be selected to receive a subsequent Phase II SBIR award under a commercialization assistance pilot program, an eligible entity shall submit to the covered [agency](/usc/15/632.md?p=b) implementing such pilot program an application at such time, in such manner, and containing such information as the covered [agency](/usc/15/632.md?p=b) may require, including—
    - (A) an updated Phase II commercialization plan; and
    - (B) the source and amount of the matching funding required under [paragraph (5)](#uu-5).
  - (5) **Matching funding—**
    - (A) **In general—** The [Administrator](/usc/15/637c.md?p=1) shall require, as a condition of any subsequent Phase II SBIR award made to an eligible entity under this subsection, that a matching amount (excluding any fees collected by the eligible entity receiving such award) equal to the amount of such award be provided from an eligible third-party investor.
    - (B) **Ineligible sources—** An eligible entity may not use funding from ineligible sources to meet the matching requirement of [subparagraph (A)](#uu-5-A).
  - (6) **Award—** A subsequent Phase II SBIR award made to an eligible entity under this subsection—
    - (A) may not exceed the limitation described under [subsection (aa)(1)](#aa-1); and
    - (B) shall be disbursed during Phase II.
  - (7) **Use of funds—** The funds awarded to an eligible entity under this subsection may only be used for research and development activities that build on eligible entity’s Phase II program and ensure the research funded under such Phase II is rapidly progressing towards commercialization.
  - (8) **Selection—** In selecting eligible entities to participate in a commercialization assistance pilot program under this subsection, the head of a covered [agency](/usc/15/632.md?p=b) shall consider—
    - (A) the extent to which such award could aid the eligible entity in commercializing the research funded under the eligible entity’s Phase II program;
    - (B) whether the updated Phase II commercialization plan submitted under [paragraph (4)](#uu-4) provides a sound approach for establishing technical feasibility that could lead to commercialization of such research;
    - (C) whether the proposed activities to be conducted under such updated Phase II commercialization plan further improve the likelihood that such research will provide societal benefits;
    - (D) whether the [small business concern](/usc/15/636e.md?p=6) has progressed satisfactorily in Phase II to justify receipt of a subsequent Phase II SBIR award;
    - (E) the expectations of the eligible third-party investor that provides matching funding under [paragraph (5)](#uu-5); and
    - (F) the likelihood that the proposed activities to be conducted under such updated Phase II commercialization plan using matching funding provided by such eligible third-party investor will lead to commercial and societal benefit.
  - (9) **Evaluation report—** Not later than 6 years after August 13, 2018, the Comptroller General of the United States shall submit to the Committee on Science, Space, and Technology and the Committee on Small Business of the House of Representatives, and the Committee on Small Business and Entrepreneurship of the Senate, a report including—
    - (A) a summary of the activities of commercialization assistance pilot programs carried out under this subsection;
    - (B) a detailed compilation of results achieved by such commercialization assistance pilot programs, including the number of eligible entities that received awards under such programs;
    - (C) the rate at which each eligible entity that received a subsequent Phase II SBIR award under this subsection commercialized research of the recipient;
    - (D) the growth in employment and revenue of eligible entities that is attributable to participation in a commercialization assistance pilot program;
    - (E) a comparison of commercialization success of eligible entities participating in a commercialization assistance pilot program with recipients of an additional Phase II SBIR award under [subsection (ff)](#ff);
    - (F) demographic information, such as ethnicity and geographic location, of eligible entities participating in a commercialization assistance pilot program;
    - (G) an accounting of the funds used at each covered [agency](/usc/15/632.md?p=b) that implements a commercialization assistance pilot program under this subsection;
    - (H) the amount of matching funding provided by eligible third-party investors, set forth separately by source of funding;
    - (I) an analysis of the effectiveness of the commercialization assistance pilot program implemented by each covered [agency](/usc/15/632.md?p=b); and
    - (J) recommendations for improvements to the commercialization assistance pilot program.
  - (10) **Definitions—** For purposes of this subsection:
    - (A) **Covered agency—** The term “covered [agency](/usc/15/632.md?p=b)” means a [Federal agency](/usc/15/632.md?p=b) required to have an SBIR program.
    - (B) **Eligible entity—** The term “eligible entity” means a [small business concern](/usc/15/636e.md?p=6) that has received a Phase II award under an SBIR program and an additional Phase II SBIR award under [subsection (ff)](#ff) from the covered [agency](/usc/15/632.md?p=b) to which such [small business concern](/usc/15/636e.md?p=6) is applying for a subsequent Phase II SBIR award.
    - (C) **Eligible third-party investor—** The term “eligible third-party investor” means a [small business concern](/usc/15/636e.md?p=6) other than an eligible entity, a venture capital firm, an individual investor, a non-SBIR Federal, [State](/usc/15/15g.md?p=2) or [local government](/usc/15/34.md?p=1), or any combination thereof.
    - (D) **Ineligible sources—** The term “ineligible sources” means the following:
      - (i) The eligible entity’s internal research and development funds.
      - (ii) Funding in forms other than cash, such as in-kind or other intangible assets.
      - (iii) Funding from the owners of the eligible entity, or the family members or affiliates of such owners.
      - (iv) Funding attained through loans or other forms of debt obligations.
    - (E) **Subsequent Phase II SBIR award—** The term “subsequent Phase II SBIR award” means an award granted to an eligible entity under this subsection to carry out further commercialization activities for research conducted pursuant to an SBIR program.
- (vv) **Due diligence program to assess security risks—**
  - (1) **Establishment—** The head of each [Federal agency](/usc/15/632.md?p=b) required to establish an SBIR or STTR program, in coordination with the [Administrator](/usc/15/637c.md?p=1), shall establish and implement a due diligence program to assess security risks presented by [small business concerns](/usc/15/636e.md?p=6) seeking a federally funded award.
  - (2) **Risks—** Each program established under [paragraph (1)](#vv-1) shall—
    - (A) assess, using a risk-based approach as appropriate—
      - (i) the cybersecurity practices of a [small business concern](/usc/15/636e.md?p=6);
      - (ii) patent analysis;
      - (iii) employee analysis;
      - (iv) foreign ownership of a [small business concern](/usc/15/636e.md?p=6) seeking an award, including the financial ties and obligations (which shall include surety, equity, and debt obligations) of the [small business concern](/usc/15/636e.md?p=6) and employees of the [small business concern](/usc/15/636e.md?p=6) to a foreign country, foreign [person](/usc/15/7a.md?p=6), or foreign entity;
      - (v) foreign affiliations of a covered individual, owner, or other key personnel of a [small business concern](/usc/15/636e.md?p=6) with an entity in a foreign country of concern;
      - (vi) investment relationships of a [small business concern](/usc/15/636e.md?p=6) with an individual or entity in a foreign country of concern;
      - (vii) technology licensing [agreements](/usc/15/7a.md?p=2) or joint ventures (including joint venture-like [agreements](/usc/15/7a.md?p=2)) with an individual or entity in a foreign country of concern; and
      - (viii) business relationships between a covered individual, owner, or other key personnel of a [small business concern](/usc/15/636e.md?p=6) and an individual or entity in a foreign country of concern;
    - (B) assess awards and proposals or applications, as applicable, using a risk-based approach as appropriate, including through the use of open-source analysis and analytical tools, for the nondisclosures of information required under (g)(13);[^7] and
    - (C) examine any relationship of a [small business concern](/usc/15/636e.md?p=6) seeking an award to any entity or individual included on the lists described in subsections [(g)(16)(D)](#g-16-D) and [(o)(20)(D)](#o-20-D).
  - (3) **Administrative costs—**
    - (A) **In general—** In addition to the amount allocated under [subsection (mm)(1)](#mm-1), each [Federal agency](/usc/15/632.md?p=b) required to establish an SBIR program may allocate not more than 2 percent of the funds allocated to the SBIR program of the [Federal agency](/usc/15/632.md?p=b) for the cost of establishing the due diligence program required under this subsection.
    - (B) **Reporting—**
      - (i) **In general—** Not later than December 31 of the year in which this subparagraph is enacted, and not later than December 31 of each year thereafter, the head of a [Federal agency](/usc/15/632.md?p=b) that exercises the authority under [subparagraph (A)](#vv-3-A) shall submit to the Committee on Small Business and the Committee on Science, Space, and Technology of the House of Representatives, the Committee on Small Business and Entrepreneurship of the Senate, and the [Administrator](/usc/15/637c.md?p=1), for the covered year—
        - (I) the total funds allowed to be allocated for the cost of establishing the due diligence program required under this subsection;
        - (II) the total amount of funds obligated or expended under [subparagraph (A)](#vv-3-A); and
        - (III) the due diligence activities carried out or to be carried out using amounts allocated under [subparagraph (A)](#vv-3-A).
      - (ii) **Annual report inclusion—** The [Administrator](/usc/15/637c.md?p=1) shall include the information submitted by head of a [Federal agency](/usc/15/632.md?p=b) under [clause (i)](#vv-3-B-i) in the next annual report submitted under [subsection (b)(7)](#b-7) after the [Administrator](/usc/15/637c.md?p=1) receives such information.
      - (iii) **Covered year—** In this subparagraph, the term “covered year” means, with respect to the information required under [clause (i)](#vv-3-B-i), the year covered by the annual report submitted under [subsection (b)(7)](#b-7) in which the [Administrator](/usc/15/637c.md?p=1) is required to include such information by [clause (ii)](#vv-3-B-ii).
    - (C) **Termination date—** This paragraph shall terminate on September 30, 2031.
- (ww) **Program on innovation open topics—**
  - (1) **Establishment—** Not later than 180 days after September 30, 2022, the Secretary of Defense shall establish innovation open topic activities using the SBIR and STTR programs of the Department of Defense in order to—
    - (A) increase the transition of commercial technology to the Department of Defense;
    - (B) expand the small business nontraditional industrial base;
    - (C) increase commercialization derived from investments of the Department of Defense; and
    - (D) expand the ability for qualifying [small business concerns](/usc/15/636e.md?p=6) to propose technology solutions to meet the needs of the Department of Defense.
  - (2) **Frequency—** The Secretary of Defense shall conduct not less than 1 open topic announcement at each component of the Department of Defense per fiscal year.
  - (3) **Briefing—** Not later than 180 days after September 30, 2022, the Secretary of Defense shall provide a briefing on the establishment of the program required under [paragraph (1)](#ww-1) to—
    - (A) the Committee on Armed Services and the Committee on Small Business and Entrepreneurship of the Senate; and
    - (B) the Committee on Small Business, the Committee on Armed Services, and the Committee on Science, Space, and Technology of the House of Representatives.
- (xx) **Additional provisions relating to solicitation topics—**
  - (1) **In general—** A [Federal agency](/usc/15/632.md?p=b) required to establish an SBIR or STTR program shall implement a multi-level review and approval process within the [Federal agency](/usc/15/632.md?p=b) 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 topic, except that the [Federal agency](/usc/15/632.md?p=b) may amend the requirements to clarify the solicitation topic.
  - (2) **Referral—** A [Federal agency](/usc/15/632.md?p=b) that does not comply with [paragraph (1)](#xx-1) shall be referred to the Inspector General of the [Administration](/usc/15/636e.md?p=1) for further investigation.
- (yy) **Pilot program for the participation of military research and educational institutions in the STTR program—**
  - (1) **In general—** Not later than 180 days after December 23, 2024, the Secretary of Defense shall establish a pilot program to enable any undergraduate, graduate, or postgraduate degree-granting military research or educational institution established under [title 10](/usc/10.md) to participate in the STTR program of the Department of Defense.
  - (2) **Sunset—** The authority to carry out the pilot program under this subsection shall end on September 30, 2031.
- (zz) **Budget calculation pilot program—**
  - (1) **Pilot—**
    - (A) **In general—** In order to more rapidly estimate allocations for the SBIR and STTR programs of the Department of Defense, the Secretary of Defense shall conduct a budget calculation pilot program that requires the calculation of total expenditures for the SBIR and STTR programs in the Department of Defense and determination of related allocations in accordance with subparagraphs [(B)](#zz-1-B) and [(C)](#zz-1-C), and [paragraph (2)](#zz-2), respectively.
    - (B) **SBIR program—** Beginning in fiscal year 2025, the Department of Defense shall calculate required budget expenditures for its SBIR program as not less than 3.25 percent of the average of the total research, development, test, and evaluation extramural budget of the Department for the 2 most recent fully obligated fiscal year budgets.
    - (C) **STTR program—** Beginning in fiscal year 2025, the Department of Defense shall calculate required budget expenditures for its STTR program as not less than 0.46 percent of the average of the total research, development, test, and evaluation extramural budget of the Department for the 2 most recent fully obligated fiscal year budgets.
  - (2) **Allocations—** Not later than 30 days after the date of enactment of an appropriations bill for the Department of Defense for a fiscal year, the Department shall determine and make adjustments for actual allocations related to the SBIR and STTR programs of the Department.
  - (3) **Sunset—** The pilot program under this subsection shall terminate on September 30, 2031.
- (aaa) **Reducing administrative burden—**
  - (1) **In general—** With respect to fiscal year 2027 and each fiscal year thereafter, the Director of the SBIR or STTR program office of each [Federal agency](/usc/15/632.md?p=b) shall, pursuant to authority that may not be delegated, set equally for all [small business concerns](/usc/15/636e.md?p=6) a limit on the maximum number of proposals that a [small business concern](/usc/15/636e.md?p=6) may submit in response to Phase I solicitations and Phase II solicitations under [subsection (cc)](#cc), published by that [Federal agency](/usc/15/632.md?p=b), including all components of that [Federal agency](/usc/15/632.md?p=b), in a single fiscal year. In establishing such a limitation, the Director of the SBIR or STTR program office of each [Federal agency](/usc/15/632.md?p=b) shall use 1 of the following methods:
    - (A) A limit for any [small business concern](/usc/15/636e.md?p=6) on a fiscal year basis.
    - (B) A limit for any [small business concern](/usc/15/636e.md?p=6) on a solicitation basis.
    - (C) A limit for any [small business concern](/usc/15/636e.md?p=6) on a topic basis.
  - (2) **Waiver—**
    - (A) **In general—** On a topic by topic basis, the Director of the SBIR or STTR program office of each [Federal agency](/usc/15/632.md?p=b) may grant a waiver of the proposal limit under [paragraph (1)](#aaa-1) at the time of a solicitation announcement for a specific topic for the SBIR or STTR program of the [Federal agency](/usc/15/632.md?p=b) if the topic is time-sensitive and urgent to the mission of the [Federal agency](/usc/15/632.md?p=b).
    - (B) **Written justification—** For each topic for which a waiver is sought under [subparagraph (A)](#aaa-2-A), the Director of the SBIR or STTR program office of the [Federal agency](/usc/15/632.md?p=b) shall provide a written justification to the [Administrator](/usc/15/637c.md?p=1), and to the Undersecretary described in [subparagraph (C)](#aaa-2-C), for why the use of the waiver authority is imperative for the [agency](/usc/15/632.md?p=b)’s mission and the nature of the immediate and critical need that the Director reasonably believes cannot be met by [small business concerns](/usc/15/636e.md?p=6) that have not reached the proposal limit under [paragraph (1)](#aaa-1).
    - (C) **Timing—** The Undersecretary overseeing the SBIR or STTR program at a [Federal agency](/usc/15/632.md?p=b) and the [Administrator](/usc/15/637c.md?p=1) are required to approve or disapprove a waiver and written justification not later than 15 days after the date on which the Undersecretary receives from the Director the waiver request described in [subparagraph (A)](#aaa-2-A) and the written justification described in [subparagraph (B)](#aaa-2-B).
    - (D) **Nondelegation—** The authority to grant or approve a waiver under subparagraph [(A)](#aaa-2-A) or [(C)](#aaa-2-C), respectively, may not be delegated.
    - (E) **Waiver effects—** If the [Federal agency](/usc/15/632.md?p=b) grants a waiver under [subparagraph (A)](#aaa-2-A) with respect to a topic for the SBIR or STTR program of a [Federal agency](/usc/15/632.md?p=b), [paragraph (1)](#aaa-1) shall not prohibit any [small business concern](/usc/15/636e.md?p=6) from submitting an SBIR or STTR proposal to that [Federal agency](/usc/15/632.md?p=b) under such topic.
    - (F) **Record requirement—** Participating [agencies](/usc/15/632.md?p=b) shall maintain information on topics to which waivers of the proposal limit under this paragraph are granted, including the written justifications for those waivers.
    - (G) **Limitation—** A [Federal agency](/usc/15/632.md?p=b) may not grant a waiver under this paragraph with respect to more than 5 percent of the topics of the SBIR and STTR programs of the [Federal agency](/usc/15/632.md?p=b) in any fiscal year.
  - (3) **Reporting—**
    - (A) **In general—** Not later than 30 days after the date on which the Director of the SBIR or STTR program office of a [Federal agency](/usc/15/632.md?p=b) sets or changes a limit under [paragraph (1)](#aaa-1), the head of that [Federal agency](/usc/15/632.md?p=b) shall provide to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business and the Committee on Science, Space, and Technology of the House of Representatives the methodology for setting or changing that limit, the considerations made in setting or changing that limit, and how many [small business concerns](/usc/15/636e.md?p=6) are impacted by that limit based on historical data.
    - (B) **Written notification—** Not later than 30 days after the date on which the Director of the SBIR or STTR program office of a [Federal agency](/usc/15/632.md?p=b) grants a waiver under [paragraph (2)](#aaa-2), the Director shall provide to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business and the Committee on Science, Space, and Technology of the House of Representatives a written notification regarding the granting of that waiver, which shall include the information described in [paragraph (2)(F)](#aaa-2-F) with respect to that waiver.
  - (4) **Timing—** The Director shall establish the proposal limit under [paragraph (1)](#aaa-1) not later than 90 days before the start of fiscal year 2027 and each fiscal year thereafter.
- (bbb) **I–Corps participation—**
  - (1) **In general—** Each [Federal agency](/usc/15/632.md?p=b) with an Innovation Corps program (commonly known as “I–Corps”) that is required to conduct an SBIR or STTR program shall—
    - (A) provide an option for requesting participation in an I–Corps teams course, I–Corps bootcamp, or another equivalent training program to recipients of an award under the SBIR or STTR program; and
    - (B) authorize the recipients described in [subparagraph (A)](#bbb-1-A) to use amounts authorized under [subsection (q)](#q) to participate in the I–Corps teams course, I–Corps bootcamp, or another equivalent training program.
  - (2) **Cost of participation—** The cost of participation by a recipient described in [paragraph (1)(A)](#bbb-1-A) in an I–Corps course, I–Corps bootcamp, or another equivalent training program may be provided by—
    - (A) an I–Corps team SBIR or STTR grant;
    - (B) funds awarded to the recipient under [subsection (q)](#q);
    - (C) funds made available to carry out [subsection (mm)](#mm);
    - (D) the participating teams or other sources as appropriate; or
    - (E) any combination of sources described in subparagraphs [(A)](#bbb-2-A), [(B)](#bbb-2-B), [(C)](#bbb-2-C), and [(D)](#bbb-2-D).

## Footnotes

[^1]: See References in Text note below.
[^2]: So in original. Probably should be “investor;”.
[^3]: So in original.
[^4]: So in original. Probably should be “subparagraph (B)”.
[^5]: So in original. Another closing parenthesis probably should precede the comma.
[^6]: So in original. Probably should be followed by a comma.
[^7]: So in original. Probably should be preceded by “subsection”.

## Source credit

(Pub. L. 85–536, § 2[9], July 18, 1958, 72 Stat. 391; Pub. L. 97–219, §§ 3–5, July 22, 1982, 96 Stat. 217, 218, 221; Pub. L. 99–443, §§ 1, 2, Oct. 6, 1986, 100 Stat. 1120; Pub. L. 100–590, title I, § 108, Nov. 3, 1988, 102 Stat. 2994; Pub. L. 102–484, div. D, title XLII, § 4237(d), Oct. 23, 1992, 106 Stat. 2692; Pub. L. 102–564, title I, §§ 103, 104, title II, § 202(a)–(c), title III, §§ 301(a), 305, Oct. 28, 1992, 106 Stat. 4250, 4254, 4256, 4257, 4261, 4262; Pub. L. 103–403, title VI, § 607, Oct. 22, 1994, 108 Stat. 4204; Pub. L. 104–208, div. D, title I, § 110, Sept. 30, 1996, 110 Stat. 3009–733; Pub. L. 105–135, title V, § 501, Dec. 2, 1997, 111 Stat. 2620; Pub. L. 106–113, div. B, § 1000(a)(9) [title IV, § 4732(b)(5)], Nov. 29, 1999, 113 Stat. 1536, 1501A–583; Pub. L. 106–554, § 1(a)(9) [title I, §§ 103–107, 109, 110, 111(c), 113, 114(b)], Dec. 21, 2000, 114 Stat. 2763, 2763A–669, 2763A–673, 2763A–679, 2763A–681; Pub. L. 107–50, §§ 2, 3(a), 4–7, Oct. 15, 2001, 115 Stat. 263–265; Pub. L. 108–271, § 8(b), July 7, 2004, 118 Stat. 814; Pub. L. 109–163, div. A, title II, § 252, Jan. 6, 2006, 119 Stat. 3177; Pub. L. 110–140, title XII, § 1203(e), Dec. 19, 2007, 121 Stat. 1771; Pub. L. 111–84, div. A, title VIII, §§ 847(a), (b), 848, Oct. 28, 2009, 123 Stat. 2420, 2421; Pub. L. 111–383, div. A, title X, § 1075(l), Jan. 7, 2011, 124 Stat. 4378; Pub. L. 112–17, §§ 3, 4, June 1, 2011, 125 Stat. 221, 222; Pub. L. 112–81, div. A, title X, § 1067(a), div. E, title LI, §§ 5101–5107(a), 5108–5111, 5121–5123, 5125–5127, 5131–5135, 5138, 5140, 5141(a), (b)(1), (3), 5144, 5161, 5162, 5164–5167, Dec. 31, 2011, 125 Stat. 1589, 1824–1827, 1832–1836, 1838–1842, 1844–1847, 1851–1854, 1857–1861; Pub. L. 112–239, div. A, title X, § 1076(a)(20)(A), title XVI, § 1615(a), (b), Jan. 2, 2013, 126 Stat. 1949, 2066; Pub. L. 114–92, div. A, title VIII, § 873(h), formerly § 873(e), Nov. 25, 2015, 129 Stat. 940, renumbered § 873(h), Pub. L. 114–328, div. A, title VIII, § 896(3), Dec. 23, 2016, 130 Stat. 2326; Pub. L. 114–328, div. A, title XVIII, § 1834, Dec. 23, 2016, 130 Stat. 2661; Pub. L. 115–91, div. A, title XVII, § 1709(a), (b)(1), Dec. 12, 2017, 131 Stat. 1809; Pub. L. 115–232, div. A, title VIII, §§ 854(a)–(c)(1), 860, Aug. 13, 2018, 132 Stat. 1886–1888, 1893; Pub. L. 116–92, div. A, title VIII, § 880(a)–(c), Dec. 20, 2019, 133 Stat. 1531, 1532; Pub. L. 116–283, div. A, title VIII, § 865, Jan. 1, 2021, 134 Stat. 3785; Pub. L. 117–81, div. A, title XVII, § 1702(e)(3), Dec. 27, 2021, 135 Stat. 2157; Pub. L. 117–183, §§ 3, 4(a), (b)(1), (c), (d), 5(a), (b), 7(a), 8, 9(a), Sept. 30, 2022, 136 Stat. 2180, 2181, 2183–2186, 2188, 2189, 2193; Pub. L. 117–263, div. A, title VIII, § 872(a), Dec. 23, 2022, 136 Stat. 2739; Pub. L. 118–159, div. A, title VIII, §§ 871, 872, Dec. 23, 2024, 138 Stat. 2007; Pub. L. 119–83, §§ 2(a), 3(a), (b), (d)(2), 4–6(a)(1), (b)–8(a), 9(a), 10(a)–(j), Apr. 13, 2026, 140 Stat. 755, 759, 761–768.)

## Notes

### Amendment of Section

For termination of amendment by section 3(d) of Pub. L. 119–83, see Termination Date of 2026 Amendment note below.

### Editorial Notes

### References in Text

Executive Order 13329, referred to in subsecs. (b)(8), (g)(11), (o)(15), and (ss)(2), is set out as a note under this section.

The Federal Trade Commission Act, referred to in subsec. (d)(3), is act Sept. 26, 1914, ch. 311, 38 Stat. 717, which is classified generally to subchapter I (§ 41 et seq.) of chapter 2 of this title. For complete classification of this Act to the Code, see section 58 of this title and Tables.

Executive Order 12333, referred to in subsec. (e)(2), is set out as a note under section 3001 of Title 50, War and National Defense.

Section 3703(5) of this title, referred to in subsec. (e)(8), was redesignated section 3703(3) by Pub. L. 110–69, title III, § 3002(c)(3), Aug. 9, 2007, 121 Stat. 586.

Section 6683 of title 42, referred to in subsecs. (g)(3)(A), (j)(2)(E)(i), and (o)(3)(A), was omitted from the Code.

Section 2522 of title 10, referred to in subsecs. (g)(3)(B), (j)(2)(E)(ii), and (o)(3)(B), which related to annual defense critical technology plan, was repealed, and section 2518 (relating to Defense Advanced Manufacturing Technology Partnerships) was redesignated as section 2522, by Pub. L. 102–484, div. D, title XLII, §§ 4202(a), 4232(a), Oct. 23, 1992, 106 Stat. 2659, 2687, and subsequently repealed.

Section 889 of the John S. McCain National Defense Authorization Act for Fiscal Year 2019, referred to in subsecs. (g)(16)(D)(iii) and (o)(20)(D)(iii), is section 889 of Pub. L. 115–232, which is set out as a note preceding section 3901 of Title 41, Public Contracts.

Section 1260H of the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021, referred to in subsecs. (g)(16)(D)(iv) and (o)(20)(D)(iv), is section 1260H of Pub. L. 116–283, which is set out as a note under section 113 of Title 10, Armed Forces.

Section 105 of the Small Business Research and Development Enhancement Act of 1992, referred to in subsec. (j)(2)(I), is section 105 of Pub. L. 102–564, title I, Oct. 28, 1992, 106 Stat. 4254, which was formerly set out as a note below.

The enactment of this paragraph, referred to in subsec. (j)(4), means the enactment of subsec. (j)(4) by Pub. L. 116–92, which was approved Dec. 20, 2019.

Section 270 of the National Defense Authorization Act for Fiscal Year 1997 (Public Law 104–201; 10 U.S.C. 2501 note), referred to in subsec. (x)(2)(A), was formerly set out as a note under section 2501 of Title 10, Armed Forces, prior to repeal by Pub. L. 111–84, div. A, title II, § 241, Oct 28, 2009, 123 Stat. 2237.

Program executive officers, referred to in subsec. (x)(3), were effectively renamed “portfolio acquisition executives” by Pub. L. 119–60, div. A, title XVIII, § 1802(b), Dec. 18, 2025, 139 Stat. 1227, which amended covered defense laws, as defined in section 102 of Title 10, Armed Forces, by substituting references to portfolio acquisition executives for references to program executive officers. This section is neither a covered defense law, nor was it otherwise so amended.

The year in which this subparagraph is enacted, referred to in subsec. (vv)(3)(B)(i), is the year of enactment of Pub. L. 117–183, which was approved in 2022.

### Codification

In subsec. (e)(8), “section 1303(a)(1) of title 41” substituted for “section 35(c)(1) of the Office of Federal Procurement Policy Act” on authority of Pub. L. 111–350, § 6(c), Jan. 4, 2011, 124 Stat. 3854, which Act enacted Title 41, Public Contracts. Such reference, however, probably should have been a reference to “section 25(c)(1) of the Office of Federal Procurement Policy Act” because that Act did not contain a section 35 at the time that reference was added, and section 25(c) of that Act related to issuance of the Federal Acquisition Regulation.

In subsec. (n)(2)(A), “section 1303(a)(1) of title 41” substituted for “section 25(c)(1) of the Office of Federal Procurement Policy Act” on authority of Pub. L. 111–350, § 6(c), Jan. 4, 2011, 124 Stat. 3854, which Act enacted Title 41, Public Contracts.

Section 209 of act July 30, 1953, ch. 282, title II, 67 Stat. 237, was previously classified to this section. See section 645 of this title and Codification note set out under section 631 of this title.

### Amendments

2026—Subsec. (e)(20). Pub. L. 119–83, § 5(1), added par. (20).

Subsec. (g)(15). Pub. L. 119–83, § 2(a)(1)(B), added par. (15). Former par. (15) redesignated (16).

Subsec. (g)(16). Pub. L. 119–83, § 2(a)(1)(C), substituted “that the small business concern submitting” for “that—” and “(A) the small business concern submitting”; redesignated cls. (i) to (iii) of former subpar. (A) as subpars. (A) to (C), respectively, and realigned margins; added subpars. (D) to (F); and struck out former subpar. (B) which read as follows: “the relationships and commitments described in clauses (i) through (iii) of subparagraph (A)—

“(i) interfere with the capacity for activities supported by the Federal agency to be carried out;

“(ii) create duplication with activities supported by the Federal agency;

“(iii) present concerns about conflicts of interest;

“(iv) were not appropriately disclosed to the Federal agency;

“(v) violate Federal law or terms and conditions of the Federal agency; or

“(vi) pose a risk to national security;”.

Pub. L. 119–83, § 2(a)(1)(A), redesignated par. (15) as (16). Former par. (16) redesignated (18).

Subsec. (g)(17). Pub. L. 119–83, § 2(a)(1)(D), added par. (17). Former par. (17) redesignated (19).

Subsec. (g)(18). Pub. L. 119–83, § 2(a)(1)(A), redesignated par. (16) as (18).

Subsec. (g)(19). Pub. L. 119–83, § 2(a)(1)(A), redesignated par. (17) as (19).

Subsec. (g)(19)(B). Pub. L. 119–83, § 2(a)(1)(E)(i), substituted “paragraph (18)(A)” for “paragraph (16)(A)”.

Subsec. (g)(19)(C). Pub. L. 119–83, § 2(a)(1)(E)(ii), substituted “paragraph (18)(B)” for “paragraph (16)(B)”.

Subsec. (j)(4). Pub. L. 119–83, § 6(a)(1), inserted “, and advocate for the maximum practicable use and transition of products, services, and technologies developed under SBIR or STTR programs to Phase III by means of Phase III awards to small business concerns” before period at end.

Subsec. (k)(1)(G). Pub. L. 119–83, § 8(a), added subpar. (G).

Subsec. (m). Pub. L. 119–83, § 9(a)(1), substituted “September 30, 2031” for “September 30, 2025”.

Subsec. (n)(1)(A). Pub. L. 119–83, § 9(a)(2), substituted “2031” for “2025”.

Subsec. (o)(19). Pub. L. 119–83, § 2(a)(2)(B), added par. (19). Former par. (19) redesignated (20).

Subsec. (o)(20). Pub. L. 119–83, § 2(a)(2)(C), substituted “that the small business concern submitting” for “that—” and “(A) the small business concern submitting”; redesignated cls. (i) to (iii) of former subpar. (A) as subpars. (A) to (C), respectively, and realigned margins; added subpars. (D) to (F); and struck out former subpar. (B) which read as follows: “the relationships and commitments described in clauses (i) through (iii) of subparagraph (A)—

“(i) interfere with the capacity for activities supported by the Federal agency to be carried out;

“(ii) create duplication with activities supported by the Federal agency;

“(iii) present concerns about conflicts of interest;

“(iv) were not appropriately disclosed to the Federal agency;

“(v) violate Federal law or terms and conditions of the Federal agency; or

“(vi) pose a risk to national security;”.

Pub. L. 119–83, § 2(a)(2)(A), redesignated par. (19) as (20). Former par. (20) redesignated (22).

Subsec. (o)(21). Pub. L. 119–83, § 2(a)(2)(D), added par. (21). Former par. (21) redesignated (23).

Subsec. (o)(22). Pub. L. 119–83, § 2(a)(2)(A), redesignated par. (20) as (22).

Subsec. (o)(23). Pub. L. 119–83, § 2(a)(2)(A), redesignated par. (21) as (23).

Subsec. (o)(23)(B). Pub. L. 119–83, § 2(a)(2)(E)(i), substituted “paragraph (22)(A)” for “paragraph (20)(A)”.

Subsec. (o)(23)(C). Pub. L. 119–83, § 2(a)(2)(E)(ii), substituted “paragraph (22)(B)” for “paragraph (20)(B)”.

Subsec. (q)(1). Pub. L. 119–83, § 7(1)(A)(i), substituted “shall authorize recipients of awards under the SBIR program or the STTR program to select, if desired, technical and business assistance provided under subparagraph (A) or (B) of paragraph (2) with respect to SBIR or STTR projects” for “may enter into an agreement with 1 or more vendors selected under paragraph (2)(A) to provide small business concerns engaged in SBIR or STTR projects with technical and business assistance services” and “such recipients” for “such concerns” and inserted “cybersecurity assistance,” after “intellectual property protections,” in introductory provisions.

Subsec. (q)(1)(E). Pub. L. 119–83, § 7(1)(A)(ii)–(iv), added subpar. (E).

Subsec. (q)(2). Pub. L. 119–83, § 7(1)(B), substituted “Eligible uses of funds” for “Vendor selection” in heading, added subpar. (B), redesignated former subpar. (B) as (A), and struck out former subpar. (A). Prior to amendment, text of subpar. (A) read as follows: “Each agency may select 1 or more vendors from which small business concerns may obtain assistance in meeting the goals listed in paragraph (1) for a term not to exceed 5 years. Such selection shall be competitive and shall utilize merit-based criteria.”

Subsec. (q)(3)(A), (B). Pub. L. 119–83, § 7(1)(C), added subpars. (A) and (B) and struck out former subpars. (A) and (B) which read as follows:

“(A) In general.—Each agency may select 1 or more vendors from which small business concerns may obtain assistance in meeting the goals listed in paragraph (1) for a term not to exceed 5 years. Such selection shall be competitive and shall utilize merit-based criteria.

“(B) Selection by small business concern.—A small business concern may, by contract or otherwise, select 1 or more vendors to assist the small business concern in meeting the goals listed in paragraph (1).”

Subsec. (q)(5). Pub. L. 119–83, § 7(1)(D), added par. (5).

Subsec. (r)(4)(C), (D). Pub. L. 119–83, § 6(b), added subpars. (C) and (D).

Subsec. (r)(5). Pub. L. 119–83, § 5(2), added par. (5).

Subsec. (y)(2). Pub. L. 119–83, § 3(b)(1), temporarily inserted dash after “shall”, subpar. (A) designation before “identify”, and “, including small business concerns with an award from the strategic breakthrough allocation (as defined in subsection (ff)(3)(A),” before “that have the potential” in subpar. (A) and added subpars. (B) and (C). See Termination Date of 2026 Amendment note below.

Subsec. (y)(3), (4). Pub. L. 119–83, § 3(b)(2), (3), temporarily redesignated pars. (4) and (5) as (3) and (4), respectively, and struck out former par. (3). Prior to amendment, text of par. (3) read as follows: “No research program may be identified under paragraph (2) unless the Secretary of the military department concerned certifies in writing that the successful transition of the program to Phase III and into the acquisition process is expected to meet high priority military requirements of such military department.” See Termination Date of 2026 Amendment note below.

Subsec. (y)(5). Pub. L. 119–83, § 3(b)(3), temporarily redesignated par. (6) as (5). See Termination Date of 2026 Amendment note below.

Subsec. (y)(5)(C), (D). Pub. L. 119–83, § 3(b)(4), temporarily added subpar. (C) and redesignated former subpar. (C) as (D). See Termination Date of 2026 Amendment note below.

Subsec. (y)(6). Pub. L. 119–83, § 3(b)(3), temporarily redesignated par. (6) as (5). See Termination Date of 2026 Amendment note below.

Subsec. (aa)(6). Pub. L. 119–83, § 3(a)(1), temporarily added par. (6). See Termination Date of 2026 Amendment note below.

Subsec. (cc). Pub. L. 119–83, § 10(a), substituted “Until September 30, 2031” for “During fiscal years 2012 through 2025” and “the Department of Energy, the National Aeronautics and Space Administration, and the Department of Education” for “, and the Department of Education” and inserted “or STTR program” after “SBIR program” in two places.

Subsec. (ff)(3). Pub. L. 119–83, § 3(a)(2), temporarily added par. (3). See Termination Date of 2026 Amendment note below.

Subsec. (gg)(7). Pub. L. 119–83, § 10(b), substituted “2031” for “2025”.

Subsec. (hh)(2)(C). Pub. L. 119–83, § 10(c), substituted “September 30, 2031” for “September 30, 2025”.

Subsec. (jj)(7). Pub. L. 119–83, § 10(d), substituted “2031” for “2025”.

Subsec. (mm)(1). Pub. L. 119–83, § 10(e), substituted “September 30, 2031” for “September 30, 2025” in introductory provisions.

Subsec. (mm)(1)(L). Pub. L. 119–83, § 5(3), added subpar. (L).

Subsec. (qq)(3)(I). Pub. L. 119–83, § 10(f), substituted “September 30, 2031” for “September 30, 2025”.

Subsec. (uu)(3). Pub. L. 119–83, § 10(g), substituted “September 30, 2031” for “September 30, 2025”.

Subsec. (vv)(2)(A). Pub. L. 119–83, § 2(a)(3)(A), amended subpar. (A) generally. Prior to amendment, subpar. (A) read as follows: “assess, using a risk-based approach as appropriate, the cybersecurity practices, patent analysis, employee analysis, and foreign ownership of a small business concern seeking an award, including the financial ties and obligations (which shall include surety, equity, and debt obligations) of the small business concern and employees of the small business concern to a foreign country, foreign person, or foreign entity; and”.

Subsec. (vv)(2)(C). Pub. L. 119–83, § 2(a)(3)(B), (C), added subpar. (C).

Subsec. (vv)(3)(C). Pub. L. 119–83, § 10(h), substituted “September 30, 2031” for “September 30, 2025”.

Subsec. (yy)(2). Pub. L. 119–83, § 10(i), substituted “September 30, 2031” for “September 30, 2025”.

Subsec. (zz)(3). Pub. L. 119–83, § 10(j), substituted “September 30, 2031” for “September 30, 2025”.

Subsec. (aaa). Pub. L. 119–83, § 4, added subsec. (aaa).

Subsec. (bbb). Pub. L. 119–83, § 7(2), added subsec. (bbb).

2024—Subsec. (yy). Pub. L. 118–159, § 871, added subsec. (yy).

Subsec. (zz). Pub. L. 118–159, § 872, added subsec. (zz).

2022—Pub. L. 117–183, § 3, substituted “2025” for “2022” wherever appearing.

Subsec. (b)(7)(I), (J). Pub. L. 117–183, § 7(a)(1), added subpars. (I) and (J).

Subsec. (b)(7)(K), (L). Pub. L. 117–183, § 8(1), added subpars. (K) and (L).

Subsec. (e)(15) to (19). Pub. L. 117–183, § 4(a), added pars. (15) to (19).

Subsec. (g)(13). Pub. L. 117–183, § 4(c)(1), added par. (13).

Subsec. (g)(13)(D). Pub. L. 117–263 struck out “of concern” after “another foreign country”.

Subsec. (g)(14). Pub. L. 117–183, § 4(c)(1)(C), added par. (14).

Subsec. (g)(15). Pub. L. 117–183, § 4(d)(1), added par. (15).

Subsec. (g)(16), (17). Pub. L. 117–183, § 5(a), added pars. (16) and (17).

Subsec. (o)(17), (18). Pub. L. 117–183, § 4(c)(2), added pars. (17) and (18).

Subsec. (o)(19). Pub. L. 117–183, § 4(d)(2), added par. (19).

Subsec. (o)(20), (21). Pub. L. 117–183, § 5(b), added pars. (20) and (21).

Subsec. (qq)(3), (4). Pub. L. 117–183, § 8(2)(A), (B), added par. (3) and redesignated former par. (3) as (4). Former par. (4) redesignated (5).

Subsec. (qq)(5). Pub. L. 117–183, § 8(2)(A), (C), redesignated par. (4) as (5) and substituted “paragraph (4)(A)” for “paragraph (3)(A)”.

Subsec. (qq)(6), (7). Pub. L. 117–183, § 8(2)(D), added pars. (6) and (7).

Subsec. (vv). Pub. L. 117–183, § 4(b)(1), added subsec. (vv).

Subsec. (ww). Pub. L. 117–183, § 7(a)(2), added subsec. (ww).

Subsec. (xx). Pub. L. 117–183, § 9(a), added subsec. (xx).

2021—Subsec. (b)(7)(H). Pub. L. 116–283, § 865(1), added subpar. (H).

Subsec. (g)(10). Pub. L. 116–283, § 865(2), inserted “, which section shall describe whether or not the Federal agency complied with the requirements of subsection (f) for the year covered by that plan and include a justification for failure to comply (if applicable),” after “a section on its SBIR program”.

Subsec. (o)(8). Pub. L. 116–283, § 865(3), inserted “, which section shall describe whether or not the Federal agency complied with the requirements of subsection (n) for the year covered by that plan and include a justification for failure to comply (if applicable),” after “a section on its STTR program”.

Subsec. (r)(4)(A). Pub. L. 117–81 substituted “sections 3201 through 3205” for “section 2304”.

2019—Subsec. (b)(3). Pub. L. 116–92, § 880(b)(2), struck out “and” at end.

Subsec. (b)(10). Pub. L. 116–92, § 880(b)(1), added par. (10).

Subsec. (e)(14). Pub. L. 116–92, § 880(a), added par. (14).

Subsec. (j)(4). Pub. L. 116–92, § 880(c)(1), added par. (4).

Subsec. (p)(2)(G). Pub. L. 116–92, § 880(c)(2), added subpar. (G).

2018—Subsec. (q). Pub. L. 115–232, § 854(c)(1)(A), inserted “and business” after “technical” in heading.

Subsec. (q)(1). Pub. L. 115–232, § 854(c)(1)(B)(i), in introductory provisions, substituted “1 or more vendors selected under paragraph (2)(A)” for “a vendor selected under paragraph (2)” and inserted “and business” before “assistance services” and “assistance with product sales, intellectual property protections, market research, market validation, and development of regulatory plans and manufacturing plans,” after “technologies,”.

Subsec. (q)(1)(D). Pub. L. 115–232, § 854(c)(1)(B)(ii), inserted “, including intellectual property protections” before period at end.

Subsec. (q)(2). Pub. L. 115–232, § 854(c)(1)(C), designated existing provisions as subpar. (A), inserted heading, substituted “Each agency may select 1 or more vendors from which small business concerns may obtain assistance in meeting” for “Each agency may select a vendor to assist small business concerns to meet”, and added subpar. (B).

Subsec. (q)(3). Pub. L. 115–232, § 854(c)(1)(D)(i), inserted “(A)” after “paragraph (2)” wherever appearing.

Subsec. (q)(3)(A). Pub. L. 115–232, § 854(c)(1)(D)(ii), substituted “$6,500 per year” for “$5,000 per year” in two places.

Subsec. (q)(3)(B)(i). Pub. L. 115–232, § 854(c)(1)(D)(iii)(I), substituted “$50,000 per project” for “$5,000 per year”.

Subsec. (q)(3)(B)(ii). Pub. L. 115–232, § 854(c)(1)(D)(iii), substituted “$50,000 per project, which may, as determined appropriate by the head of the Federal agency, be included as part of the recipient’s award or be in addition to the amount of the recipient’s award” for “$5,000 per year, which shall be in addition to the amount of the recipient’s award”.

Subsec. (q)(3)(C). Pub. L. 115–232, § 854(c)(1)(D)(iv), inserted “or business” after “technical”, substituted “a vendor” for “the vendor”, and inserted at end “Business-related services aimed at improving the commercialization success of a small business concern may be obtained from an entity, such as a public or private organization or an agency of or other entity established or funded by a State that facilitates or accelerates the commercialization of technologies or assists in the creation and growth of private enterprises that are commercializing technology.”

Subsec. (q)(3)(D). Pub. L. 115–232, § 854(c)(1)(D)(v)(I), inserted “or business” after “technical” in two places.

Subsec. (q)(3)(D)(i). Pub. L. 115–232, § 854(c)(1)(D)(v)(II), substituted “1 or more vendors” for “the vendor”.

Subsec. (q)(3)(E). Pub. L. 115–232, § 854(c)(1)(D)(vi), added subpar. (E).

Subsec. (q)(4). Pub. L. 115–232, § 854(c)(1)(E), added par. (4).

Subsec. (cc). Pub. L. 115–232, § 854(a)(1), substituted “2022” for “2017”.

Subsec. (gg)(7). Pub. L. 115–232, § 854(a)(2), substituted “2022” for “2017”.

Subsec. (hh). Pub. L. 115–232, § 854(b)(1), designated existing provisions as par. (1), inserted heading, struck out “attempt to” before “shorten”, and added par. (2).

Subsec. (ii). Pub. L. 115–232, § 854(b)(2), designated existing provisions as par. (1), inserted heading, and added par. (2).

Subsec. (jj)(4)(A). Pub. L. 115–232, § 854(a)(3)(A), substituted “4” for “3”.

Subsec. (jj)(7). Pub. L. 115–232, § 854(a)(3)(B), substituted “2022” for “2017”.

Subsec. (mm)(1). Pub. L. 115–232, § 854(a)(4)(A)(i), substituted “2022” for “2017” in introductory provisions.

Subsec. (mm)(1)(K). Pub. L. 115–232, § 854(a)(4)(A)(ii)–(iv), added subpar. (K).

Subsec. (tt). Pub. L. 115–232, § 854(a)(5), added subsec. (tt).

Subsec. (uu). Pub. L. 115–232, § 860, added subsec. (uu).

2017—Subsec. (r). Pub. L. 115–91, § 1709(b)(1)(A), inserted “, competitive procedures, and justification for awards” after “agreements” in heading.

Subsec. (r)(4). Pub. L. 115–91, § 1709(a), (b)(1)(B), substituted “Competitive procedures and justification for awards” for “Phase III awards” in heading and “shall—

“(A) consider an award under the SBIR program or the STTR program to satisfy the requirements under section 2304 of title 10 and any other applicable competition requirements; and

“(B) issue, without further justification, Phase III awards”

for “shall issue Phase III awards” in text.

2016—Subsec. (m). Pub. L. 114–328, § 1834(a), substituted “September 30, 2022” for “September 30, 2017”.

Subsec. (n)(1)(A). Pub. L. 114–328, § 1834(b), substituted “fiscal year 2022” for “fiscal year 2017”.

2015—Subsec. (mm)(1). Pub. L. 114–92 substituted “and until September 30, 2017,” for “, for the 3 fiscal years beginning after December 31, 2011,” in introductory provisions.

2013—Subsec. (b)(7). Pub. L. 112–239, § 1076(a)(20)(A), repealed Pub. L. 112–81, § 1067(a)(1). See 2011 Amendment note below.

Subsec. (y)(4). Pub. L. 112–239, § 1615(b), made technical amendment to directory language of Pub. L. 112–81, § 5141(b)(3)(B). See 2011 Amendment note below.

Pub. L. 112–239, § 1615(a)(2), added par. (4). Former par. (4) redesignated (5).

Subsec. (y)(5). Pub. L. 112–239, § 1615(a)(1), redesignated par. (4) as (5). Former par. (5) redesignated (6).

Pub. L. 112–239, § 1076(a)(20)(A), repealed Pub. L. 112–81, § 1067(a)(2). See 2011 Amendment note below.

Subsec. (y)(6). Pub. L. 112–239, § 1615(a)(1), redesignated par. (5) as (6).

2011—Subsec. (b)(7). Pub. L. 112–81, § 5131(1)(B), substituted “(g)(8) and (o)(9);” for “(g)(10), (o)(9), and (o)(15) of this section, the number of proposals received from, and the number and total amount of awards to, HUBZone small business concerns under each of the SBIR and STTR programs, and a description” in subpar. (A), added subpars. (B) to (F), and inserted “(G) a description” before “of the extent to which Federal agencies”.

Pub. L. 112–81, § 5131(1)(A), substituted “STTR programs, including—” for “STTR programs, including”, and inserted subpar. (A) designation before “the data on output”.

Pub. L. 112–81, § 1067(a)(1), which inserted “and including an accounting of funds, initiatives, and outcomes under the Commercialization Pilot Program” after “and (o)(15) of this section,”, was repealed by Pub. L. 112–239, § 1076(a)(20)(A).

Subsec. (b)(9). Pub. L. 112–81, § 5131(1)(C), (2), (3), added par. (9).

Subsec. (e)(4)(B). Pub. L. 112–81, § 5105(1), substituted “which shall not include any invitation, pre-screening, or pre-selection process for eligibility for Phase II, that will further” for “to further”.

Subsec. (e)(4)(C). Pub. L. 112–81, § 5125(a)(1), inserted “for work that derives from, extends, or completes efforts made under prior funding agreements under the SBIR program” after “phase” in introductory provisions.

Subsec. (e)(4)(C)(ii). Pub. L. 112–81, § 5125(b)(1)(A), substituted “merit-based selection procedures” for “scientific review criteria”.

Subsec. (e)(6)(B). Pub. L. 112–81, § 5105(2), substituted “which shall not include any invitation, pre-screening, or pre-selection process for eligibility for Phase II, that will further develop proposals that” for “to further develop proposed ideas to”.

Subsec. (e)(6)(C). Pub. L. 112–81, § 5125(a)(2), inserted “for work that derives from, extends, or completes efforts made under prior funding agreements under the STTR program” after “phase” in introductory provisions.

Subsec. (e)(9). Pub. L. 112–81, § 5125(b)(1)(B), substituted “Phase II or Phase III” for “the second or the third phase”.

Subsec. (e)(10). Pub. L. 112–81, § 5125(a)(3)–(5), added par. (10).

Subsec. (e)(11) to (13). Pub. L. 112–81, § 5125(b)(1)(C), added pars. (11) to (13).

Subsec. (f)(1). Pub. L. 112–81, § 5102(a)(1), substituted “Except as provided in paragraph (2)(B), each” for “Each” in introductory provisions, added subpars. (C) to (I), and struck out former subpar. (C) which read as follows: “not less than 2.5 percent of such budget in each fiscal year thereafter,”.

Subsec. (f)(2). Pub. L. 112–81, § 5141(b)(3)(A), substituted “shall not—

“(A) use any of its SBIR budget established pursuant to paragraph (1) for the purpose of funding administrative costs of the program, including costs associated with salaries and expenses; or

“(B) make available for the purpose”

for “shall not make available for the purpose”.

Pub. L. 112–81, § 5141(b)(1)(A), substituted “shall not make available for the purpose” for “shall not—

“(A) use any of its SBIR budget established pursuant to paragraph (1) for the purpose of funding administrative costs of the program, including costs associated with salaries and expenses; or

“(B) make available for the purpose”.

Subsec. (f)(4). Pub. L. 112–81, § 5102(a)(2), added par. (4).

Subsec. (g)(4). Pub. L. 112–81, § 5126(a)(1), designated existing provisions as subpar. (A) and added subpar. (B).

Subsec. (g)(8) to (10). Pub. L. 112–81, § 5132, added par. (8), redesignated former pars. (8) and (9) as (9) and (10), respectively, and struck out former par. (10) which read as follows: “collect, and maintain in a common format in accordance with subsection (v) of this section, such information from awardees as is necessary to assess the SBIR program, including information necessary to maintain the database described in subsection (k) of this section;”.

Subsec. (g)(12). Pub. L. 112–81, § 5110(a), added par. (12).

Subsec. (i)(1). Pub. L. 112–81, § 5122(b), inserted “(including awards under subsection (y))” after “the number of awards”.

Subsec. (j)(1)(B). Pub. L. 112–81, § 5125(b)(2)(A), substituted “Phase II” for “phase two”.

Subsec. (j)(2)(B). Pub. L. 112–81, § 5125(b)(2)(B)(i), substituted “Phase III” for “the third phase” in two places and “Phase II” for “the second phase”.

Subsec. (j)(2)(D). Pub. L. 112–81, § 5125(b)(2)(B)(ii), substituted “Phase I” for “the first phase” and “‘Phase II” for “the second phase”.

Pub. L. 112–81, § 5103(c)(1), substituted “every year for inflation” for “once every 5 years to reflect economic adjustments and programmatic considerations”.

Pub. L. 112–81, § 5103(a), substituted “$150,000” for “$100,000” and “$1,000,000” for “$750,000”.

Subsec. (j)(2)(F). Pub. L. 112–81, § 5125(b)(2)(B)(iii), substituted “Phase III” for “the third phase”.

Subsec. (j)(2)(G). Pub. L. 112–81, § 5125(b)(2)(B)(iv), substituted “Phase I” for “the first phase” and “Phase II” for “the second phase”.

Subsec. (j)(2)(H). Pub. L. 112–81, § 5125(b)(2)(B)(v), substituted “Phase I” for “the first phase”, “Phase II” for “second phase” in two places, and “Phase III” for “third phase”.

Subsec. (j)(3)(A). Pub. L. 112–81, § 5125(b)(2)(C)(i), substituted “Phase I” for “the first phase (as described in subsection (e)(4)(A) of this section)”, “Phase II” for “(as described in subsection (e)(4)(B) of this section)”, and “Phase III” for “the third phase (as described in subsection (e)(4)(C) of this section)”.

Subsec. (j)(3)(B). Pub. L. 112–81, § 5125(b)(2)(C)(ii), substituted “Phase II” for “second phase”.

Subsec. (k). Pub. L. 112–81, § 5125(b)(3), substituted “Phase I” for “first phase” and “Phase II” for “second phase” wherever appearing.

Subsec. (k)(1)(F). Pub. L. 112–81, § 5134, added subpar. (F).

Subsec. (k)(2). Pub. L. 112–81, § 5135(1), in introductory provisions, substituted “Not later than 90 days after December 31, 2011” for “Not later than 180 days after December 21, 2000”, added subpars. (A), (D), and (G), redesignated former subpars. (A), (B), (D), and (E) as (B), (C), (E), and (F), respectively, and struck out former subpar. (C) which read as follows: “includes for each applicant for a Phase I or Phase II award that does not receive such an award—

“(i) the name, size, and location, and an identifying number assigned by the Administration;

“(ii) an abstract of the project; and

“(iii) the Federal agency to which the application was made;”.

Subsec. (k)(3)(C). Pub. L. 112–81, § 5135(2), added subpar. (C).

Subsec. (l)(2). Pub. L. 112–81, § 5125(b)(4), substituted “Phase I” for “the first phase” and “Phase II” for “the second phase”.

Subsec. (m). Pub. L. 112–81, § 5101(a), substituted “2017” for “2011”.

Pub. L. 112–17, § 3(a), struck out par. (1) designation and heading, substituted “The authorization” for “Except as provided in paragraph (2), the authorization” and “2011” for “2008”, and struck out par. (2). Text of par. (2) read as follows: “The Secretary of Defense and the Secretary of each military department are authorized to carry out the Small Business Innovation Research Program of the Department of Defense until September 30, 2010”.

Subsec. (m)(2). Pub. L. 111–383 substituted “are authorized” for “is authorized”.

Subsec. (n)(1)(A). Pub. L. 112–81, § 5101(b), substituted “2017” for “2011”.

Pub. L. 112–17, § 3(b), struck out cl. (i) designation and heading, substituted “With respect” for “Except as provided in clause (ii), with respect” and “2011” for “2009”, and struck out cl. (ii). Text of cl. (ii) read as follows: “The Secretary of Defense and the Secretary of each military department shall carry out clause (i) with respect to each fiscal year through fiscal year 2010.”

Subsec. (n)(1)(B)(ii) to (v). Pub. L. 112–81, § 5102(b), added cls. (ii) to (v) and struck out former cl. (ii) which read as follows: “0.3 percent for fiscal year 2004 and each fiscal year thereafter.”

Subsec. (o)(4). Pub. L. 112–81, § 5126(a)(2), designated existing provisions as subpar. (A) and added subpar. (B).

Subsec. (o)(9). Pub. L. 112–81, § 5133, added par. (9) and struck out former par. (9) which read as follows: “collect such data from awardees as is necessary to assess STTR program outputs and outcomes;”.

Subsec. (o)(13)(B). Pub. L. 112–81, § 5125(b)(5)(A), substituted “Phase II” for “second phase”.

Subsec. (o)(13)(C). Pub. L. 112–81, § 5125(b)(5)(B), substituted “Phase III” for “third phase”.

Subsec. (o)(15), (16). Pub. L. 112–81, § 5110(b), added par. (16), redesignated former par. (16) as (15) and struck out former par. (15) which read as follows: “collect, and maintain in a common format in accordance with subsection (v) of this section, such information from awardees as is necessary to assess the STTR program, including information necessary to maintain the database described in subsection (k) of this section; and”.

Subsec. (p)(2)(B)(vi). Pub. L. 112–81, § 5125(b)(6)(A)(i), substituted “Phase II” for “the second phase” and “Phase III” for “the third phase”.

Subsec. (p)(2)(B)(ix). Pub. L. 112–81, § 5125(b)(6)(A)(ii), substituted “Phase I” for “the first phase” and “Phase II” for “the second phase”.

Pub. L. 112–81, § 5103(c)(2), inserted “(each of which the Administrator shall adjust for inflation annually)” after “$1,000,000,”.

Pub. L. 112–81, § 5103(b), substituted “$150,000” for “$100,000” and “$1,000,000” for “$750,000”.

Subsec. (p)(3). Pub. L. 112–81, § 5125(b)(6)(B), substituted “Phase I” for “the first phase (as described in subsection (e)(6)(A) of this section)”, “Phase II” for “the second phase (as described in subsection (e)(6)(B) of this section)”, and “Phase III” for “the third phase (as described in subsection (e)(6)(C) of this section)”.

Subsec. (q)(1). Pub. L. 112–81, § 5121(1), inserted “or STTR program” after “SBIR program” and substituted “SBIR or STTR projects” for “SBIR projects” in introductory provisions.

Subsec. (q)(2). Pub. L. 112–81, § 5121(2), substituted “5 years” for “3 years”.

Subsec. (q)(3). Pub. L. 112–81, § 5121(3), added subpars. (A) to (D) and struck out former subpars. (A) and (B) which read as follows:

“(A) First phase

“Each agency referred to in paragraph (1) may provide services described in paragraph (1) to first phase SBIR award recipients in an amount equal to not more than $4,000, which shall be in addition to the amount of the recipient’s award.

“(B) Second phase

“Each agency referred to in paragraph (1) may authorize any second phase SBIR award recipient to purchase, with funds available from their SBIR awards, services described in paragraph (1), in an amount equal to not more than $4,000 per year.”

Subsec. (r). Pub. L. 112–81, § 5125(b)(7)(A), substituted “Phase III” for “Third phase” in heading.

Subsec. (r)(1). Pub. L. 112–81, § 5125(b)(7)(B), substituted, in first sentence, “for Phase II” for “for the second phase”, “Phase III” for “third phase”, and “Phase II period” for “second phase period”, and, in second sentence, “Phase II” for “second phase” and “Phase III” for “third phase”.

Subsec. (r)(2). Pub. L. 112–81, § 5125(b)(7)(C), substituted “Phase III” for “third phase”.

Subsec. (r)(4). Pub. L. 112–81, § 5108, added par. (4).

Subsec. (s). Pub. L. 112–17, § 4, added subsec. (s).

Subsec. (u)(2)(B). Pub. L. 112–81, § 5125(b)(8), substituted “Phase I” for “the first phase” in introductory provisions.

Subsec. (v). Pub. L. 112–81, § 5144, substituted “Reducing paperwork and compliance burden” for “Simplified reporting requirements” in heading, designated existing provisions as par. (1), inserted heading, and added par. (2).

Subsec. (y). Pub. L. 112–81, § 5122(a)(1), (2), substituted “Readiness” for “Pilot” wherever appearing in heading and text.

Subsec. (y)(1). Pub. L. 112–81, § 5122(a)(3), inserted “or Small Business Technology Transfer Program” after “Small Business Innovation Research Program” and inserted at end “The authority to create and administer a Commercialization Readiness Program under this subsection may not be construed to eliminate or replace any other SBIR program or STTR program that enhances the insertion or transition of SBIR or STTR technologies, including any such program in effect on January 6, 2006.”

Subsec. (y)(2). Pub. L. 112–81, § 5122(a)(4), inserted “or Small Business Technology Transfer Program” after “Small Business Innovation Research Program”.

Subsec. (y)(4). Pub. L. 112–81, § 5141(b)(3)(B), as amended by Pub. L. 112–239, § 1615(b), amended par. (4) generally. Prior to amendment, text read as follows: “For payment of expenses incurred to administer the Commercialization Readiness Program under this subsection, the Secretary of Defense and each Secretary of a military department is authorized to use not more than an amount equal to 1 percent of the funds available to the Department of Defense or the military department pursuant to the Small Business Innovation Research Program. Such funds shall not be used to make Phase III awards.”

Pub. L. 112–81, § 5141(b)(1)(B), redesignated par. (5) as (4) and struck out former par. (4), which related to funding of expenses incurred to administer the Commercialization Readiness Program.

Subsec. (y)(5). Pub. L. 112–81, § 5141(b)(1)(B)(ii), redesignated par. (6) as (5). Former par. (5) redesignated (4).

Pub. L. 112–81, § 5122(a)(7), added par. (5).

Pub. L. 112–81, § 5122(a)(5), struck out par. (5) which required the Secretary of Defense to submit an annual evaluative report regarding activities under the Commercialization Pilot Program.

Pub. L. 112–81, § 1067(a)(2), which struck out par. (5), requiring the Secretary of Defense to submit an annual evaluative report regarding activities under the Commercialization Pilot Program, was repealed by Pub. L. 112–239, § 1076(a)(20)(A).

Subsec. (y)(6). Pub. L. 112–81, § 5141(b)(1)(B)(ii), redesignated par. (6) as (5).

Pub. L. 112–81, § 5122(a)(6), (7), added par. (6) and struck out former par. (6), which provided that pilot program would terminate at the end of fiscal year 2011.

Pub. L. 112–17, § 3(c), substituted “2011” for “2010”.

Subsec. (aa). Pub. L. 112–81, § 5103(d), added subsec. (aa).

Subsec. (bb). Pub. L. 112–81, § 5104, added subsec. (bb).

Subsec. (cc). Pub. L. 112–81, § 5106, added subsec. (cc).

Subsec. (dd). Pub. L. 112–81, § 5107(a), added subsec. (dd).

Subsec. (ee). Pub. L. 112–81, § 5109, added subsec. (ee).

Subsec. (ff). Pub. L. 112–81, § 5111, added subsec. (ff).

Subsec. (gg). Pub. L. 112–81, § 5123, added subsec. (gg).

Subsecs. (hh), (ii). Pub. L. 112–81, § 5126(b), added subsecs. (hh) and (ii).

Subsec. (jj). Pub. L. 112–81, § 5127, added subsec. (jj).

Subsec. (kk). Pub. L. 112–81, § 5138, added subsec. (kk).

Subsec. (ll). Pub. L. 112–81, § 5140, added subsec. (ll).

Subsec. (mm). Pub. L. 112–81, § 5141(a), added subsec. (mm).

Subsec. (nn). Pub. L. 112–81, § 5161, added subsec. (nn).

Subsec. (oo). Pub. L. 112–81, § 5162, added subsec. (oo).

Subsec. (pp). Pub. L. 112–81, § 5164, added subsec. (pp).

Subsec. (qq). Pub. L. 112–81, § 5165, added subsec. (qq).

Subsec. (rr). Pub. L. 112–81, § 5166, added subsec. (rr).

Subsec. (ss). Pub. L. 112–81, § 5167, added subsec. (ss).

2009—Subsec. (m). Pub. L. 111–84, § 847(a), designated existing provisions as par. (1), inserted par. (1) heading, substituted “Except as provided in paragraph (2), the authorization” for “The authorization”, and added par. (2).

Subsec. (n)(1)(A). Pub. L. 111–84, § 847(b), designated existing provisions as cl. (i), inserted cl. (i) heading, substituted “Except as provided in clause (ii), with respect” for “With respect”, and added cl. (ii).

Subsec. (y)(6). Pub. L. 111–84, § 848, substituted “2010” for “2009”.

2007—Subsec. (z). Pub. L. 110–140 added subsec. (z).

2006—Subsec. (b)(8). Pub. L. 109–163, § 252(b)(1), added par. (8).

Subsec. (e)(9). Pub. L. 109–163, § 252(c), added par. (9).

Subsec. (g)(11). Pub. L. 109–163, § 252(b)(2), added par. (11).

Subsec. (o)(16). Pub. L. 109–163, § 252(b)(3), added par. (16).

Subsecs. (x), (y). Pub. L. 109–163, § 252(a), added subsecs. (x) and (y).

2004—Subsec. (j)(2)(I). Pub. L. 108–271 substituted “Government Accountability Office” for “General Accounting Office”.

2001—Subsec. (b)(4). Pub. L. 107–50, § 2(b), struck out “pilot” before “programs;”.

Subsec. (b)(7). Pub. L. 107–50, § 6(d), substituted “, (o)(9), and (o)(15) of this section, the number of proposals received from, and the number and total amount of awards to, HUBZone small business concerns under each of the SBIR and STTR programs,” for “and (o)(9) of this section,”.

Subsec. (e)(6). Pub. L. 107–50, § 2(b), struck out “pilot” before “program” in introductory provisions.

Subsec. (k)(1). Pub. L. 107–50, § 6(b)(1), inserted “or STTR” after “SBIR” in subpars. (A) to (C) and added subpar. (E).

Subsec. (k)(2). Pub. L. 107–50, § 6(b)(2)(A), (B), in introductory provisions, inserted “or an STTR program pursuant to subsection (n)(1)” after “(f)(1)” and substituted “exclusively for SBIR and STTR” for “solely for SBIR”.

Subsec. (k)(2)(A)(iii). Pub. L. 107–50, § 6(b)(2)(C), inserted “and STTR” after “SBIR”.

Subsec. (k)(2)(D). Pub. L. 107–50, § 6(b)(2)(D), inserted “or STTR” after “SBIR”.

Subsec. (n)(1). Pub. L. 107–50, § 2(a), amended heading and text of par. (1) generally. Prior to amendment, text read as follows: “With respect to fiscal years 1998, 1999, 2000, and 2001, each Federal agency that has an extramural budget for research, or research and development, in excess of $1,000,000,000 for that fiscal year, is authorized to expend with small business concerns not less than 0.15 percent of that extramural budget specifically in connection with STTR programs that meet the requirements of this section and any policy directives and regulations issued under this section.”

Subsec. (o)(11). Pub. L. 107–50, § 7(b), substituted “adopt the agreement developed by the Administrator under subsection (w) as the agency’s model agreement” for “develop a model agreement not later than July 31, 1993, to be approved by the Administration,”.

Subsec. (o)(14). Pub. L. 107–50, § 4, added par. (14).

Subsec. (o)(15). Pub. L. 107–50, § 6(a), added par. (15).

Subsec. (p)(2)(B)(ix). Pub. L. 107–50, § 3, substituted “$750,000” for “$500,000” and inserted “, and shorter or longer periods of time to be approved at the discretion of the awarding agency where appropriate for a particular project” before the semicolon at the end.

Subsec. (p)(3). Pub. L. 107–50, § 5, added par. (3).

Subsec. (v). Pub. L. 107–50, § 6(c), inserted “or STTR” after “SBIR” in two places.

Subsec. (w). Pub. L. 107–50, § 7(a), added subsec. (w).

2000—Subsec. (b)(7). Pub. L. 106–554, § 1(a)(9) [title I, § 107(b)], inserted before period at end “, including the data on output and outcomes collected pursuant to subsections (g)(10) and (o)(9) of this section, and a description of the extent to which Federal agencies are providing in a timely manner information needed to maintain the database described in subsection (k)”.

Pub. L. 106–554, § 1(a)(9) [title I, § 104], substituted “, and to the Committee on Science and the Committee on Small Business of the House of Representatives,” for “and the Committee on Small Business of the House of Representatives”.

Subsec. (e)(4)(C)(i). Pub. L. 106–554, § 1(a)(9) [title I, § 105], substituted “; or” for “; and” at end.

Subsec. (g)(9). Pub. L. 106–554, § 1(a)(9) [title I, § 106], added par. (9).

Subsec. (g)(10). Pub. L. 106–554, § 1(a)(9) [title I, § 107(a)], added par. (10).

Subsec. (i). Pub. L. 106–554, § 1(a)(9) [title I, § 109], inserted subsec. heading, designated existing provisions as par. (1), inserted par. heading, and added par. (2).

Subsec. (j)(3). Pub. L. 106–554, § 1(a)(9) [title I, § 110], added par. (3).

Subsec. (k). Pub. L. 106–554, § 1(a)(9) [title I, § 107(c)], amended subsec. (k) generally, substituting present provisions for provisions which read “(k) [Reserved]”.

Subsec. (m). Pub. L. 106–554, § 1(a)(9) [title I, § 103], amended heading and text generally. Prior to amendment, text read as follows: “The authorization to carry out the Small Business Innovation Research Program under this section shall terminate on October 1, 2000.”

Subsec. (s)(2). Pub. L. 106–554, § 1(a)(9) [title I, § 114(b)], substituted “for each of the fiscal years 2000 through 2005,” for “for fiscal year 1998, 1999, 2000, or 2001”.

Subsec. (u). Pub. L. 106–554, § 1(a)(9) [title I, § 111(c)], added subsec. (u).

Subsec. (v). Pub. L. 106–554, § 1(a)(9) [title I, § 113], added subsec. (v).

1999—Subsec. (p)(1)(B). Pub. L. 106–113 amended subpar. (B) generally. Prior to amendment, subpar. (B) read as follows: “the Commissioner of Patents and Trademarks; and”.

1997—Subsec. (e)(4)(A). Pub. L. 105–135, § 501(b)(1)(B), substituted “subparagraph (B)” for “subparagraph (B)(ii)”.

Subsec. (n)(1). Pub. L. 105–135, § 501(a), added par. (1) and struck out heading and text of former par. (1). Text read as follows: “Each Federal agency which has an extramural budget for research or research and development in excess of $1,000,000,000 in fiscal year 1994, 1995, or 1996, is authorized to expend with small business concerns—

“(A) not less than 0.05 percent of such budget in fiscal year 1994;

“(B) not less than 0.1 percent of such budget in fiscal year 1995; and

“(C) not less than 0.15 percent of such budget in fiscal years 1996 and 1997,

specifically in connection with STTR programs which meet the requirements of this section, policy directives, and regulations issued under this section.”

Subsec. (o)(8) to (13). Pub. L. 105–135, § 501(b)(1)(A), added pars. (8) and (9) and redesignated former pars. (8) to (11) as (10) to (13), respectively.

Subsec. (s). Pub. L. 105–135, § 501(b)(2), struck out subsec. (s), which related to outreach, including provisions defining eligible State and relating to program authority, amount of assistance, and use of assistance.

Pub. L. 105–135, § 501(b)(1)(C), added subsec. (s).

Subsec. (t). Pub. L. 105–135, § 501(b)(1)(C), added subsec. (t).

1996—Subsec. (n)(1)(C). Pub. L. 104–208 substituted “fiscal years 1996 and 1997” for “fiscal year 1996”.

1994—Subsec. (q)(2). Pub. L. 103–403 amended heading and text of par. (2) generally. Prior to amendment, text read as follows: “Annually, each agency may select a vendor for purposes of this subsection using competitive, merit-based criteria, to assist small business concerns to meet the goals listed in paragraph (1).”

1992—Subsec. (b)(4). Pub. L. 102–564, § 202(a)(1), inserted before semicolon at end “and small business technology transfer pilot programs”.

Subsec. (b)(5) to (7). Pub. L. 102–564, § 202(a)(2), inserted “and STTR” after “SBIR” wherever appearing.

Subsec. (e)(1). Pub. L. 102–564, § 103(c), substituted “for the Department of Energy it shall not include amounts obligated for atomic energy defense programs solely for weapons activities or for naval reactor programs” for “for the Department of Defense it shall not include amounts obligated solely for operational systems development”.

Pub. L. 102–484, § 4237(d)(1), (2)(A), (h)(2), temporarily amended par. (1) by striking out “except that for the Department of Defense it shall not include amounts obligated solely for operational systems development, and” after “Government-operated facilities,” and substituting “, and except that for the Department of Energy it shall not include amounts obligated for atomic energy defense programs for weapons and weapons-related activities or for naval reactor programs;” for semicolon at end. See section 4237(h)(2) of Pub. L. 102–484 set out in a Small Business Innovation Research Program in Department of Defense note below.

Subsec. (e)(4)(A). Pub. L. 102–564, § 103(a)(1), inserted “that appear to have commercial potential, as described in subparagraph (B)(ii),” after “ideas”.

Subsec. (e)(4)(B). Pub. L. 102–564, § 103(a)(2), added subpar. (B) and struck out former subpar. (B) which read as follows: “a second phase to further develop the proposed ideas to meet the particular program needs, the awarding of which shall take into consideration the scientific and technical merit and feasibility evidenced by the first phase and, where two or more proposals are evaluated as being of approximately equal scientific and technical merit and feasibility, special consideration shall be given to those proposals that have demonstrated third phase, non-Federal capital commitments; and”.

Subsec. (e)(4)(C). Pub. L. 102–564, § 103(a)(2), added subpar. (C) and struck out former subpar. (C) which read as follows: “where appropriate, a third phase in which non-Federal capital pursues commercial applications of the research or research and development and which may also involve follow-on non-SBIR funded production contracts with a Federal agency for products or processes intended for use by the United States Government; and”.

Subsec. (e)(6) to (8). Pub. L. 102–564, § 202(b), added pars. (6) to (8).

Subsec. (f). Pub. L. 102–564, § 103(b), amended subsec. (f) generally. Prior to amendment, subsec. (f) consisted of pars. (1) and (2) relating to Federal agency extramural budget expenditures for fiscal years 1982 and thereafter for small business concerns in connection with small business innovation research programs meeting the requirements of the Small Business Innovation Development Act of 1982.

Subsec. (f)(2). Pub. L. 102–484, § 4237(d)(2)(B), (h)(2), temporarily struck out par. (2) which read “Amounts appropriated for atomic energy defense programs of the Department of Energy shall for the purposes of paragraph (1) be excluded from the amount of the research or research and development budget of that Department.” See section 4237(h)(2) of Pub. L. 102–484 set out in a Small Business Innovation Research Program in Department of Defense note below.

Subsec. (g)(3), (4). Pub. L. 102–564, § 103(d), added par. (3) and redesignated former par. (3) as (4). Former par. (4) redesignated (5).

Subsec. (g)(5). Pub. L. 102–564, § 103(d)(1), (h)(2), (i), redesignated par. (4) as (5) and inserted “subject to subsection (l),” before “unilaterally” and “and inform each awardee under such an agreement, to the extent possible, of the expenses of the awardee that will be allowable under the funding agreement” before semicolon at end. Former par. (5) redesignated (6).

Subsec. (g)(6). Pub. L. 102–564, § 103(d)(1), redesignated par. (5) as (6). Former par. (6) redesignated (7).

Subsec. (g)(7). Pub. L. 102–564, § 103(d)(1), (e), redesignated par. (6) as (7) and inserted before semicolon at end “and, in all cases, make payment to recipients under such agreements in full, subject to audit, on or before the last day of the 12-month period beginning on the date of completion of such requirements”. Former par. (7) redesignated (8).

Subsec. (g)(8). Pub. L. 102–564, § 103(d)(1), redesignated par. (7) as (8).

Subsec. (j). Pub. L. 102–564, § 103(f), designated existing provisions as par. (1) and inserted heading, redesignated former pars. (1) and (2) as subpars. (A) and (B), respectively, of par. (1), former subpars. (A) to (H) of former par. (2) as cls. (i) to (viii), respectively, of subpar. (B) of par. (1), and former pars. (3) to (7) as subpars. (C) to (G), respectively, of par. (1), and added par. (2).

Subsec. (k). Pub. L. 102–564, § 103(g), amended subsec. (k) generally, substituting “(k) [Reserved]” for prior provisions of subsec. (k) which read as follows: “The Director of the Office of Science and Technology Policy, in consultation with the Federal Coordinating Council for Science, Engineering and Research, shall, in addition to such other responsibilities imposed upon him by the Small Business Innovation Development Act of 1982—

“(1) independently survey and monitor all phases of the implementation and operation of SBIR programs within agencies required to establish an SBIR program, including compliance with the expenditures of funds according to the requirements of subsection (f) of this section; and

“(2) report not less than annually, and at such other times as the Director may deem appropriate, to the Committees on Small Business of the Senate and the House of Representatives on all phases of the implementation and operation of SBIR programs within agencies required to establish an SBIR program, together with such recommendations as the Director may deem appropriate.”

Subsec. (l). Pub. L. 102–564, § 103(h)(1), added subsec. (l).

Subsec. (m). Pub. L. 102–564, § 104(b), added subsec. (m).

Subsecs. (n) to (p). Pub. L. 102–564, § 202(c), added subsecs. (n) to (p).

Subsec. (q). Pub. L. 102–564, § 301(a), added subsec. (q).

Subsec. (r). Pub. L. 102–564, § 305, added subsec. (r).

1988—Subsec. (j)(6), (7). Pub. L. 100–590 added pars. (6) and (7).

1986—Subsec. (e)(1). Pub. L. 99–443, § 1, inserted provision that for the Department of Defense, the extramural budget shall not include amounts obligated solely for operational systems development.

1982—Subsec. (b)(4) to (7). Pub. L. 97–219, § 3, added pars. (4) to (7).

Subsecs. (e) to (k). Pub. L. 97–219, § 4, added subsecs. (e) to (k).

### Statutory Notes and Related Subsidiaries

### Change of Name

Committee on Small Business of Senate changed to Committee on Small Business and Entrepreneurship of Senate. See Senate Resolution No. 123, One Hundred Seventh Congress, June 29, 2001.

Committee on Science of House of Representatives changed to Committee on Science and Technology of House of Representatives by House Resolution No. 6, One Hundred Tenth Congress, Jan. 5, 2007. Committee on Science and Technology of House of Representatives changed to Committee on Science, Space, and Technology of House of Representatives by House Resolution No. 5, One Hundred Twelfth Congress, Jan. 5, 2011.

### Termination Date of 2026 Amendment

Pub. L. 119–83, § 3(d), Apr. 13, 2026, 140 Stat. 762, provided that: “Effective on September 30, 2031— this section [amending this section] and the amendments made by this section shall cease to have effect; and the provisions of law amended by this section shall be restored as if such amendments had not been enacted.”

### Effective Date of 2013 Amendment

Pub. L. 112–239, div. A, title X, § 1076(a), Jan. 2, 2013, 126 Stat. 1947, provided that the amendment made by section 1076(a)(20)(A) is effective Dec. 31, 2011, and as if included in Pub. L. 112–81 as enacted.

Pub. L. 112–239, div. A, title XVI, § 1615(c), Jan. 2, 2013, 126 Stat. 2067, provided that: “The amendments made by this section [amending this section] shall take effect as of January 1, 2012.”

### Effective Date of 2011 Amendment

Pub. L. 112–81, div. E, title LI, § 5141(b)(3), Dec. 31, 2011, 125 Stat. 1854, provided in part that the amendments made by section 5141(b)(3) of Pub. L. 112–81 (amending this section) were effective on the first day of the fourth full fiscal year following Dec. 31, 2011.

### Effective Date of 2009 Amendment

Pub. L. 111–84, div. A, title VIII, § 847(c), Oct. 28, 2009, 123 Stat. 2421, provided that: “The amendments made by this section [amending this section] shall take effect as of July 30, 2009.”

### Effective Date of 2007 Amendment

Amendment by Pub. L. 110–140 effective on the date that is 1 day after Dec. 19, 2007, see section 1601 of Pub. L. 110–140, set out as an Effective Date note under section 1824 of Title 2, The Congress.

### Effective Date of 2001 Amendment

Pub. L. 107–50, § 3(b), Oct. 15, 2001, 115 Stat. 263, provided that: “The amendments made by subsection (a) [amending this section] shall be effective beginning in fiscal year 2004.”

### Effective Date of 1999 Amendment

Amendment by Pub. L. 106–113 effective 4 months after Nov. 29, 1999, see section 1000(a)(9) [title IV, § 4731] of Pub. L. 106–113, set out as a note under section 1 of Title 35, Patents.

### Effective and Termination Dates of 1997 Amendment

Amendment by Pub. L. 105–135 effective Oct. 1, 1997, see section 3 of Pub. L. 105–135, set out as a note under section 631 of this title.

Pub. L. 105–135, title V, § 501(b)(2), Dec. 2, 1997, 111 Stat. 2622, as amended by Pub. L. 106–554, § 1(a)(9) [title I, § 114(a)], Dec. 21, 2000, 114 Stat. 2763, 2763A–681, provided that: “Effective October 1, 2005, section 9(s) of the Small Business Act [15 U.S.C. 638(s)] (as added by paragraph (1) of this subsection) is repealed.”

### Effective Date of 1996 Amendment

Amendment by Pub. L. 104–208 effective Oct. 1, 1996, see section 3 of Pub. L. 104–208, set out as a note under section 633 of this title.

### Effective and Termination Dates of 1992 Amendment

For effective and termination dates of amendment by Pub. L. 102–484, see section 4237(g) and (h) of Pub. L. 102–484, set out in a Small Business Innovation Research Program in Department of Defense note below.

### Termination Date of 1982 Amendment

Pub. L. 97–219, § 5, July 22, 1982, 96 Stat. 221, as amended by Pub. L. 99–443, § 2, Oct. 6, 1986, 100 Stat. 1120; Pub. L. 102–484, div. D, title XLII, § 4237(a), Oct. 23, 1992, 106 Stat. 2691, which provided that effective Oct. 1, 1993, subsecs. (b)(4) through (7) and (e) through (k) of this section were to be repealed, was repealed by Pub. L. 102–564, title I, § 104(a), Oct. 28, 1992, 106 Stat. 4254.

### Rule of Construction

Pub. L. 117–183, § 4(b)(5), Sept. 30, 2022, 136 Stat. 2183, provided that: “Nothing in subsection (vv) of section 9 of the Small Business Act (15 U.S.C. 638), as added by paragraph (1), shall be construed to— apply to any Federal agency with a due diligence program that applies to the SBIR or STTR programs required under subsection (vv) of section 9 of the Small Business Act (15 U.S.C. 638), as added by paragraph (1), in existence as of the date of enactment of this Act [Sept. 30, 2022]; or restrict any Federal agency from taking due diligence measures in addition to those required under such subsection (vv) at the Federal agency.”

[For definitions of “Federal agency”, “SBIR”, and “STTR” as used in section 4(b)(5) of Pub. L. 117–183, set out above, see section 2 of Pub. L. 117–183, set out as a note below.]

### Modification Deadline

Pub. L. 119–83, § 6(a)(2), Apr. 13, 2026, 140 Stat. 764, provided that: “Not later than 1 year after the date of enactment of this Act [Apr. 13, 2026], the Administrator of the Small Business Administration shall modify the policy directives issued pursuant to subsection (j) of section 9 of the Small Business Act (15 U.S.C. 638(j)) in accordance with paragraph (4) of that subsection, as amended by paragraph (1).”

### Due Diligence Program

Pub. L. 117–263, div. A, title VIII, § 872(b), Dec. 23, 2022, 136 Stat. 2739, provided that: In general.—Until the date on which the Under Secretary of Defense for Research and Engineering makes the certification described in paragraph (2), in carrying out the due diligence program required under subsection (vv) of section 9 of the Small Business Act (15 U.S.C. 638), the Secretary of Defense and each Secretary of a military department shall perform the assessments required under such due diligence program— only with respect to small business concerns selected by the applicable Secretary as the presumptive recipient of an award described in such subsection (vv); and prior to notifying the small business concern that the small business concern has been selected to receive such an award. Full implementation.—On the date on which the Under Secretary of Defense for Research and Engineering certifies to the Committees on Armed Services of the Senate and the House of Representatives that an automated capability for performing the assessments required under the due diligence program required under subsection (vv) of section 9 of the Small Business Act (15 U.S.C. 638) with respect to all small business concerns seeking an award described in such subsection is operational, paragraph (1) of this subsection shall sunset.”

### Implementation of 2022 Amendment

Pub. L. 117–183, § 4(b)(2), Sept. 30, 2022, 136 Stat. 2182, provided that: In general.—Not later than 270 days after the date of enactment of this Act [Sept. 30, 2022], the head of a Federal agency required to establish an SBIR or STTR program shall implement a due diligence program under subsection (vv) of section 9 of the Small Business Act (15 U.S.C. 638), as added by paragraph (1), at the Federal agency that, to the extent practicable, incorporates the applicable best practices disseminated under paragraph (3) [set out as a note below]. Paperwork reduction act.—Chapter 35 of title 44, United States Code (commonly known as the ‘Paperwork Reduction Act’), shall not apply to the implementation of a due diligence program under subsection (vv) of section 9 of the Small Business Act (15 U.S.C. 638), as added by paragraph (1). Briefing.—Not later than 30 days after the date of enactment of this Act, and on a recurring basis until implementation is complete, each Federal agency required to establish a due diligence program under subsection (vv) of section 9 of the Small Business Act (15 U.S.C. 638), as added by paragraph (1), shall brief the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business and the Committee on Science, Space, and Technology of the House of Representatives on the implementation of the due diligence program.”

[For definitions of “Federal agency”, “SBIR”, and “STTR” as used in section 4(b)(2) of Pub. L. 117–183, set out above, see section 2 of Pub. L. 117–183, set out as a note below.]

Pub. L. 117–183, § 5(c), Sept. 30, 2022, 136 Stat. 2187, provided that: “Chapter 35 of title 44, United States Code (commonly known as the ‘Paperwork Reduction Act’), shall not apply to the implementation of paragraphs (16) and (17) [now (18), (19)] of subsection (g) or paragraphs (20) and (21) [now (22), (23)] of subsection (o) of section 9 of the Small Business Act (15 U.S.C. 638), as added by subsections (a) and (b).”

### Best Practices

Pub. L. 117–183, § 4(b)(3), Sept. 30, 2022, 136 Stat. 2182, provided that: “Not later than 180 days after the date of enactment of this Act [Sept. 30, 2022], the Administrator shall— 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 States, 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 (vv) of section 9 of the Small Business Act (15 U.S.C. 638), as added by paragraph (1); and in consultation with the Committee on Foreign Investment in the United States, provide to Federal agencies described in subparagraph (A) guidance on the business relationships required to be disclosed under paragraph (13)(G) of subsection (g) and paragraph (17)(G) of subsection (o) of section 9 of the Small Business Act (15 U.S.C. 638), as added by this Act.”

[For definitions of terms used in section 4(b)(3) of Pub. L. 117–183, set out above, see section 2 of Pub. L. 117–183, set out as a note below.]

### Cybersecurity Technical Assistance for SBIR and STTR Programs

Pub. L. 116–92, div. A, title VIII, § 881, Dec. 20, 2019, 133 Stat. 1533, provided that: In General.—The Secretary of Defense may enter into an agreement with 1 or more vendors selected under section 9(q)(2) of the Small Business Act (15 U.S.C. 638(q)(2)) to provide small business concerns engaged in SBIR or STTR projects with cybersecurity technical assistance, such as access to a network of cybersecurity experts and engineers engaged in designing and implementing cybersecurity practices. Amounts.—In carrying out subsection (a), the Secretary of Defense may provide the amounts described under section 9(q)(3) of such Act (15 U.S.C. 638(q)(3)) to a recipient that meets the eligibility requirements under the such [sic] paragraph, if the recipient requests to seek cybersecurity technical assistance from an individual or entity other than a vendor selected as described in subsection (a).”

### Pilot Program for Domestic Investment Under the SBIR Program

Pub. L. 116–92, div. A, title VIII, § 884, Dec. 20, 2019, 133 Stat. 1534, as amended by Pub. L. 117–81, div. A, title XVII, § 1702(e)(4), Dec. 27, 2021, 135 Stat. 2157, provided that: In General.—Not later than 1 year after the date of the enactment of this Act [Dec. 20, 2019] and subject to subsection (b), the Secretary of Defense shall establish and administer a program to be known as the ‘Domestic Investment Pilot Program’ under which the Secretary and the service acquisition executive for each military department may make a SBIR award under section 9(dd) of the Small Business Act (15 U.S.C. 638[(dd)]) to a small business concern without providing the written determination described under paragraph (2) of such section 9(dd) if such concern is— exclusively owned by multiple United States-owned venture capital operating companies, hedge funds, or private equity firms, or majority-owned by multiple United States-owned venture capital operating companies, hedge funds, or private equity firms, if the minority foreign ownership of such concern is limited to members of the national technology and industrial base as defined under section 4801 of title 10, United States Code. Limitation.—During any fiscal year, the aggregate amount of awards made under the Domestic Investment Pilot Program shall not exceed an amount equal to 10 percent of the total amount that the Secretary of Defense may award under section 9 of the Small Business Act (15 U.S.C. 638) during such fiscal year. Evaluation Criteria.—In carrying out the Domestic Investment Pilot Program, the Secretary of Defense may not use investment of venture capital or investment from hedge funds or private equity firms as a criterion for the award of contracts under the SBIR program or STTR program. Annual Reporting.—The Secretary of Defense shall include as part of each annual report required under section 9(b)(7) of the Small Business Act (15 U.S.C. 638(b)(7)) information on the implementation of the Domestic Investment Pilot Program with respect to the year covered by the report, including— the number of applications for participation received from small business concerns; the number of awards made to small business concerns, including an identification of such concerns; the extent to which a small business concern participant is foreign-owned, including an identification of the foreign owners; and an assessment of the effect of the Domestic Investment Pilot Program on— inducing additional venture capital, hedge fund, or private equity funding of research as defined in section 9(e)(5) of the Small Business Act (15 U.S.C. 638(e)(5)); substantially contributing to the mission of the Department of Defense; and otherwise fulfilling the capital needs of small business concerns for additional financing for SBIR projects. Notification.—The Secretary of Defense shall notify the Small Business Administration of an award made under the Domestic Investment Pilot Program not later than 30 days after such award is made. Termination.—The Domestic Investment Pilot Program established under this section shall terminate on September 30, 2022. Definitions.—In this section: Military department; service acquisition executive.—The terms ‘military department’ and ‘service acquisition executive’ have the meanings given those terms, respectively, in section 101 of title 10, United States Code. SBIR; sttr.—The terms ‘SBIR’ and ‘STTR’ have the meanings given those terms, respectively, in section 9(e) of the Small Business Act (15 U.S.C. 638(e)). Small business act definitions.—The terms ‘small business concern’, ‘venture capital operating company’, ‘hedge fund’, and ‘private equity firm’ have the meanings given those terms, respectively, in section 3 of the Small Business Act (15 U.S.C. 632).”

### Firms That Are Majority-Owned by Multiple Venture Capital Operating Companies, Hedge Funds, Or Private Equity Firms Entitled to Partial Participation in SBIR Program; Rules for Determining Affiliation

Pub. L. 112–81, div. E, title LI, § 5107(c), (d), Dec. 31, 2011, 125 Stat. 1829, 1832, provided that:Rulemaking To Ensure That Firms That Are Majority-Owned by Multiple Venture Capital Operating Companies, Hedge Funds, Or Private Equity Firms Are Able To Participate in a Portion of the SBIR Program.— Statement of congressional intent.—It is the stated intent of Congress that the Administrator should promulgate regulations to carry out the authority under section 9(dd) of the Small Business Act [15 U.S.C. 638(dd)], as added by this section, that— permit small business concerns that are majority-owned by multiple venture capital operating companies, hedge funds, or private equity firms to participate in the SBIR program in accordance with section 9(dd) of the Small Business Act; provide specific guidance for small business concerns that are majority-owned by multiple venture capital operating companies, hedge funds, or private equity firms with regard to eligibility, participation, and affiliation rules; and preserve and maintain the integrity of the SBIR program as a program for small business concerns in the United States by prohibiting large businesses or large entities or foreign-owned businesses or foreign-owned entities from participation in the program established under section 9 of the Small Business Act [15 U.S.C. 638].Rulemaking required.— Proposed regulations.—Not later than 120 days after the date of enactment of this Act [Dec. 31, 2011], the Administrator shall issue proposed regulations to amend section 121.103 (relating to determinations of affiliation applicable to the SBIR program) and section 121.702 (relating to ownership and control standards and size standards applicable to the SBIR program) of title 13, Code of Federal Regulations, for firms that are majority-owned by multiple venture capital operating companies, hedge funds, or private equity firms and participating in the SBIR program solely under the authority under section 9(dd) of the Small Business Act [15 U.S.C. 638(dd)], as added by this section. Final regulations.—Not later than 1 year after the date of enactment of this Act, and after providing notice of and opportunity for comment on the proposed regulations issued under subparagraph (A), the Administrator shall issue final or interim final regulations under this subsection.Contents.— In general.—The regulations issued under this subsection shall permit the participation of applicants majority-owned by multiple venture capital operating companies, hedge funds, or private equity firms in the SBIR program in accordance with section 9(dd) of the Small Business Act [15 U.S.C. 638(dd)], as added by this section, unless the Administrator determines— in accordance with the size standards established under subparagraph (B), that the applicant is— a large business or large entity; or majority-owned or controlled by a large business or large entity; or in accordance with the criteria established under subparagraph (C), that the applicant— is a foreign-owned business or a foreign entity or is not a citizen of the United States or alien lawfully admitted for permanent residence; or is majority-owned or controlled by a foreign-owned business, foreign entity, or person who is not a citizen of the United States or alien lawfully admitted for permanent residence. Size standards.—Under the authority to establish size standards under paragraphs (2) and (3) of section 3(a) of the Small Business Act (15 U.S.C. 632(a)), the Administrator shall, in accordance with paragraph (1) of this subsection, establish size standards for applicants seeking to participate in the SBIR program solely under the authority under section 9(dd) of the Small Business Act [15 U.S.C. 638(dd)], as added by this section. Criteria for determining foreign ownership.—The Administrator shall establish criteria for determining whether an applicant meets the requirements under subparagraph (A)(ii), and, in establishing the criteria, shall consider whether the criteria should include— whether the applicant is at least 51 percent owned or controlled by citizens of the United States or domestic venture capital operating companies, hedge funds, or private equity firms; whether the applicant is domiciled in the United States; and whether the applicant is a direct or indirect subsidiary of a foreign-owned firm, including whether the criteria should include that an applicant is a direct or indirect subsidiary of a foreign-owned entity if— any venture capital operating company, hedge fund, or private equity firm that owns more than 20 percent of the applicant is a direct or indirect subsidiary of a foreign-owned entity; or in the aggregate, entities that are direct or indirect subsidiaries of foreign-owned entities own more than 49 percent of the applicant. Criteria for determining affiliation.—The Administrator shall establish criteria, in accordance with paragraph (1), for determining whether an applicant is affiliated with a venture capital operating company, hedge fund, private equity firm, or any other business that the venture capital operating company, hedge fund, or private equity firm has financed and, in establishing the criteria, shall specify that— if a venture capital operating company, hedge fund, or private equity firm that is determined to be affiliated with an applicant is a minority investor in the applicant, the portfolio companies of the venture capital operating company, hedge fund, or private equity firm shall not be determined to be affiliated with the applicant, unless— the venture capital operating company, hedge fund, or private equity firm owns a majority of the portfolio company; or the venture capital operating company, hedge fund, or private equity firm holds a majority of the seats on the board of directors of the portfolio company; subject to clause (i), the Administrator retains the authority to determine whether a venture capital operating company, hedge fund, or private equity firm is affiliated with an applicant, including establishing other criteria; the Administrator may not determine that a portfolio company of a venture capital operating company, hedge fund, or private equity firm is affiliated with an applicant based solely on 1 or more shared investors; and subject to clauses (i), (ii), and (iii), the Administrator retains the authority to determine whether a portfolio company of a venture capital operating company, hedge fund, or private equity firm is affiliated with an applicant based on factors independent of whether there is a shared investor, such as whether there are contractual obligations between the portfolio company and the applicant. Enforcement.—If the Administrator does not issue final or interim final regulations under this subsection on or before the date that is 1 year after the date of enactment of this Act [Dec. 31, 2011], the Administrator may not carry out or establish any pilot program until the date on which the Administrator issues the final or interim final regulations under this subsection. Definition.—In this subsection, the terms ‘venture capital operating company’, ‘hedge fund’, and ‘private equity firm’ have the same meaning as in section 3 of the Small Business Act (15 U.S.C. 632), as amended by this section.Assistance for Determining Affiliates.— Clear explanation required.—Not later than 30 days after the date of enactment of this Act [Dec. 31, 2011], the Administrator shall post on the Web site of the Administration (with a direct link displayed on the homepage of the Web site of the Administration or the SBIR and STTR Web sites of the Administration)— a clear explanation of the SBIR and STTR affiliation rules under part 121 of title 13, Code of Federal Regulations; and contact information for officers or employees of the Administration who— upon request, shall review an issue relating to the rules described in subparagraph (A); and shall respond to a request under clause (i) not later than 20 business days after the date on which the request is received. Inclusion of affiliation rules for certain small business concerns.—On and after the date on which the final regulations under subsection (c) are issued, the Administrator shall post on the Web site of the Administration information relating to the regulations, in accordance with paragraph (1).”

[For definitions used in section 5107(c), (d) of Pub. L. 112–81, set out above, see section 5002 of Pub. L. 112–81, set out as a note under section 638b of this title.]

### Accuracy in Funding Base Calculations

Pub. L. 112–81, div. E, title LI, § 5136, Dec. 31, 2011, 125 Stat. 1849, provided that: In General.—Not later than 1 year after the date of enactment of this Act [Dec. 31, 2011], and every year thereafter until the date that is 5 years after the date of enactment of this Act, the Comptroller General of the United States shall— conduct a fiscal and management audit of the SBIR program and the STTR program for the applicable period to— determine whether Federal agencies comply with the expenditure amount requirements under subsections (f)(1) and (n)(1) of section 9 of the Small Business Act (15 U.S.C. 638), as amended by this title; assess the extent of compliance with the requirements of section 9(i)(2) of the Small Business Act (15 U.S.C. 638(i)(2)) by Federal agencies participating in the SBIR program or the STTR program and the Administration; assess whether it would be more consistent and effective to base the amount of the allocations under the SBIR program and the STTR program on a percentage of the research and development budget of a Federal agency, rather than the extramural budget of the Federal agency; and determine the portion of the extramural research or research and development budget of a Federal agency that each Federal agency spends for administrative purposes relating to the SBIR program or STTR program, and for what specific purposes it is used, including the portion, if any, of such budget the Federal agency spends for salaries and expenses, travel to visit applicants, outreach events, marketing, and technical assistance; and submit a report to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business and the Committee on Science, Space, and Technology of the House of Representatives regarding the audit conducted under paragraph (1), including the assessments required under subparagraph (B) and the determinations made under subparagraph (D) of paragraph (1). Definition of Applicable Period.—In this section, the term ‘applicable period’ means— for the first report submitted under this section, the period beginning on October 1, 2005, and ending on September 30 of the last full fiscal year before the date of enactment of this Act [Dec. 31, 2011] for which information is available; and for the second and each subsequent report submitted under this section, the period— beginning on October 1 of the first fiscal year after the end of the most recent full fiscal year relating to which a report under this section was submitted; and ending on September 30 of the last full fiscal year before the date of the report.”

[For definitions used in section 5136 of Pub. L. 112–81, set out above, see section 5002 of Pub. L. 112–81, set out as a note under section 638b of this title.]

### Transitional Rule

Pub. L. 112–81, div. E, title LI, § 5141(b)(2), Dec. 31, 2011, 125 Stat. 1853, provided that: “Notwithstanding the amendments made by paragraph (1) [amending this section], subsections (f)(2) and (y)(4) of section 9 of the Small Business Act (15 U.S.C. 638), as in effect on the day before the date of enactment of this Act [Dec. 31, 2011], shall continue to apply to each Federal agency until the effective date of the performance criteria established by the [Small Business] Administrator under subsection (mm)(3) of section 9 of the Small Business Act [15 U.S.C. 638(mm)(3)], as added by subsection (a).”

### Conforming Amendments to the SBIR and the STTR Policy Directives

Pub. L. 112–81, div. E, title LI, § 5151, Dec. 31, 2011, 125 Stat. 1857, provided that: In General.—Not later than 180 days after the date of enactment of this Act [Dec. 31, 2011], the Administrator shall promulgate amendments to the SBIR Policy Directive and the STTR Policy Directive to conform such directives to this title [enacting sections 638a and 638b of this title, amending this section and section 632 of this title, and enacting and amending provisions set out as notes under this section] and the amendments made by this title. Publishing SBIR Policy Directive and the STTR Policy Directive in the Federal Register.—Not later than 180 days after the date of enactment of this Act, the Administrator shall publish the amended SBIR Policy Directive and the amended STTR Policy Directive in the Federal Register.”

[For definitions used in section 5151 of Pub. L. 112–81, set out above, see section 5002 of Pub. L. 112–81, set out as a note under section 638b of this title.]

### Coordination of the SBIR Program and the Experimental Program To Stimulate Competitive Research

Pub. L. 112–81, div. E, title LI, § 5168, Dec. 31, 2011, 125 Stat. 1862, provided that: Coordination Required.—The head of a Federal agency that participates in the SBIR program and the Experimental Program to Stimulate Competitive Research or the Institutional Development Award Program shall coordinate, to the extent possible, the initiatives of the agency with respect to such programs. Coordination Report.—Not later than 1 year after the date of enactment of this Act [Dec. 31, 2011], the head of each Federal agency that participates in the SBIR program and the Experimental Program to Stimulate Competitive Research or the Institutional Development Award Program shall submit to the Administrator, the Committee on Small Business and the Committee on Science, Space, and Technology of the House of Representatives, and the Committee on Small Business and Entrepreneurship of the Senate a report describing the actions taken during the preceding 1-year period to increase coordination between such programs to maximize existing resources. Participation Report.—Not later than 3 years after the date of enactment of this Act [Dec. 31, 2011], the head of each Federal agency that participates in the SBIR program and the Experimental Program to Stimulate Competitive Research or the Institutional Development Award Program shall submit to the Administrator, the Committee on Small Business and the Committee on Science, Space, and Technology of the House of Representatives, and the Committee on Small Business and Entrepreneurship of the Senate a report analyzing whether actions taken to increase the coordination of such programs have been successful in attracting entrepreneurs into the SBIR program and increasing the participation of States with respect to which a low level of SBIR awards have historically been awarded.”

[For definitions used in section 5168 of Pub. L. 112–81, set out above, see section 5002 of Pub. L. 112–81, set out as a note under section 638b of this title.]

### Continuation of SBIR Program Beyond Termination Date

Pub. L. 106–554, § 1(a)(4) [div. B, title I, § 149], Dec. 21, 2000, 114 Stat. 2763, 2763A–251, provided that: “The Small Business Innovation Research program, otherwise expiring at the end of fiscal year 2000, is authorized to continue in effect during fiscal year 2001.”

### Congressional Findings: Small Business Innovation Research Program Reauthorization Act of 2000

Pub. L. 106–554, § 1(a)(9) [title I, § 102], Dec. 21, 2000, 114 Stat. 2763, 2763A–668, provided that: “Congress finds that— the small business innovation research program established under the Small Business Innovation Development Act of 1982 [see Short Title of 1982 Amendment note set out under section 631 of this title], and reauthorized by the Small Business Research and Development Enhancement Act of 1992 [see Short Title of 1992 Amendments note set out under section 631 of this title] (in this title [see Short Title of 2000 Amendment note set out under section 631 of this title] referred to as the ‘SBIR program’) is highly successful in involving small businesses in federally funded research and development; the SBIR program made the cost-effective and unique research and development capabilities possessed by the small businesses of the Nation available to Federal agencies and departments; the innovative goods and services developed by small businesses that participated in the SBIR program have produced innovations of critical importance in a wide variety of high-technology fields, including biology, medicine, education, and defense; the SBIR program is a catalyst in the promotion of research and development, the commercialization of innovative technology, the development of new products and services, and the continued excellence of this Nation’s high-technology industries; and the continuation of the SBIR program will provide expanded opportunities for one of the Nation’s vital resources, its small businesses, will foster invention, research, and technology, will create jobs, and will increase this Nation’s competitiveness in international markets.”

### National Research Council Reports

Pub. L. 106–554, § 1(a)(9) [title I, § 108], Dec. 21, 2000, 114 Stat. 2763, 2763A–671, as amended by Pub. L. 112–81, div. E, title LI, § 5137, Dec. 31, 2011, 125 Stat. 1850, provided that: Study and Recommendations.—The head of each agency with a budget of more than $50,000,000 for its SBIR program for fiscal year 1999, in consultation with the Small Business Administration, shall, not later than 6 months after the date of the enactment of this Act [Dec. 21, 2000], cooperatively enter into an agreement with the National Academy of Sciences for the National Research Council to— conduct a comprehensive study of how the SBIR program has stimulated technological innovation and used small businesses to meet Federal research and development needs, including— a review of the value to the Federal research agencies of the research projects being conducted under the SBIR program, and of the quality of research being conducted by small businesses participating under the program, including a comparison of the value of projects conducted under the SBIR program to those funded by other Federal research and development expenditures; to the extent practicable, an evaluation of the economic benefits achieved by the SBIR program, including the economic rate of return, and a comparison of the economic benefits, including the economic rate of return, achieved by the SBIR program with the economic benefits, including the economic rate of return, of other Federal research and development expenditures; an evaluation of the noneconomic benefits achieved by the SBIR program over the life of the program; a comparison of the allocation for fiscal year 2000 of Federal research and development funds to small businesses with such allocation for fiscal year 1983, and an analysis of the factors that have contributed to such allocation; and an analysis of whether Federal agencies, in fulfilling their procurement needs, are making sufficient effort to use small businesses that have completed a second phase award under the SBIR program; and make recommendations with respect to— measures of outcomes for strategic plans submitted under section 306 of title 5, United States Code, and performance plans submitted under section 1115 of title 31, United States Code, of each Federal agency participating in the SBIR program; whether companies who can demonstrate project feasibility, but who have not received a first phase award, should be eligible for second phase awards, and the potential impact of such awards on the competitive selection process of the program; whether the Federal Government should be permitted to recoup some or all of its expenses if a controlling interest in a company receiving an SBIR award is sold to a foreign company or to a company that is not a small business concern; how to increase the use by the Federal Government in its programs and procurements of technology-oriented small businesses; and improvements to the SBIR program, if any are considered appropriate.Participation by Small Business.— In general.—In a manner consistent with law and with National Research Council study guidelines and procedures, knowledgeable individuals from the small business community with experience in the SBIR program shall be included— in any panel established by the National Research Council for the purpose of performing the study conducted under this section; and among those who are asked by the National Research Council to peer review the study. Consultation.—To ensure that the concerns of small business are appropriately considered under this subsection, the National Research Council shall consult with and consider the views of the Office of Technology and the Office of Advocacy of the Small Business Administration and other interested parties, including entities, organizations, and individuals actively engaged in enhancing or developing the technological capabilities of small business concerns. Progress Reports.—The National Research Council shall provide semiannual progress reports on the study conducted under this section to the Committee on Science [now Committee on Science, Space, and Technology] and the Committee on Small Business of the House of Representatives, and to the Committee on Small Business [now Committee on Small Business and Entrepreneurship] of the Senate. Report.—The National Research Council shall transmit to the heads of agencies entering into an agreement under this section and to the Committee on Science [now Committee on Science, Space, and Technology] and the Committee on Small Business of the House of Representatives, and to the Committee on Small Business [now Committee on Small Business and Entrepreneurship] of the Senate— not later than 3 years after the date of the enactment of this Act [Dec. 21, 2000], a report including the results of the study conducted under subsection (a)(1) and recommendations made under subsection (a)(2); and not later than 6 years after that date of the enactment, an update of such report.Extensions and Enhancements of Authority.— In general.—Not later than 6 months after the date of enactment of the SBIR/STTR Reauthorization Act of 2011 [div. E of Pub. L. 112–81, approved Dec. 31, 2011], the head of each agency described in subsection (a), in consultation with the Small Business Administration, shall cooperatively enter into an agreement with the National Academy of Sciences for the National Research Council to, not later than 4 years after the date of enactment of the SBIR/STTR Reauthorization Act of 2011, and every 4 years thereafter— continue the most recent study under this section relating to the issues described in subparagraphs (A), (B), (C), and (E) of subsection (a)(1); conduct a comprehensive study of how the STTR program has stimulated technological innovation and technology transfer, including— a review of the collaborations created between small businesses and research institutions, including an evaluation of the effectiveness of the program in stimulating new collaborations and any obstacles that may prevent or inhibit the creation of such collaborations; an evaluation of the effectiveness of the program at transferring technology and capabilities developed through Federal funding; to the extent practicable, an evaluation of the economic benefits achieved by the STTR program, including the economic rate of return; an analysis of how Federal agencies are using small businesses that have completed Phase II under the STTR program to fulfill their procurement needs; an analysis of whether additional funds could be employed effectively by the STTR program; and an assessment of the systems and minimum performance standards relating to commercialization success established under section 9(qq) of the Small Business Act [15 U.S.C. 638(qq)]; make recommendations with respect to the issues described in subparagraphs (A), (D), and (E) of subsection (a)(2) and subparagraph (B) of this paragraph; and estimate, to the extent practicable, the number of jobs created by the SBIR program or STTR program of the agency. Consultation.—An agreement under paragraph (1) shall require the National Research Council to ensure that there is participation by and consultation with the small business community, the Administration, and other interested parties as described in subsection (b). Reporting.—An agreement under paragraph (1) shall require that not later than 4 years after the date of enactment of the SBIR/STTR Reauthorization Act of 2011 [div. E of Pub. L. 112–81, approved Dec. 31, 2011], and every 4 years thereafter, the National Research Council shall submit to the head of the agency entering into the agreement, the Committee on Small Business and Entrepreneurship of the Senate, and the Committee on Small Business and the Committee on Science, Space, and Technology of the House of Representatives, a report regarding the study conducted under paragraph (1) and containing the recommendations described in paragraph (1).”

### Congressional Findings and Purposes: Small Business Research and Development Enhancement Act of 1992

Pub. L. 102–564, title I, § 102, Oct. 28, 1992, 106 Stat. 4249, provided that: Findings.—The Congress finds that— the small business innovation research program established under the Small Business Innovation Development Act of 1982 [see Short Title of 1982 Amendment note set out under section 631 of this title] (hereafter in this Act [see Short Title of 1992 Amendments note set out under section 631 of this title] referred to as the ‘SBIR’ program) has been a successful method of involving small business concerns in Federal research and development; the small business innovation research program has been an effective catalyst for the development of technological innovations by small business concerns; small business innovation research program participants have provided high quality research and development in a cost-effective manner; the innovative products and services developed by small business concerns participating in the small business innovation research program have been important to the national defense, as well as to the missions of the other participating Federal agencies; the small business innovation research program has effectively stimulated the commercialization of technology developed through Federal research and development, benefiting both the public and private sectors of the Nation; by encouraging the development and commercialization of technological innovations, the small business innovation research program has created jobs, expanded business opportunities for small firms, stimulated the development of new products and services, and improved the competitiveness of the Nation’s high technology industries; the small business innovation research program has also helped to increase exports from small business concerns; despite the general success of the small business innovation research program, the proportion of Federal research and development funds received by small business concerns has not increased over the life of the program, but has remained at 3 percent; and although the participating Federal agencies have successfully implemented most aspects of the small business innovation research program, additional outreach efforts are necessary to stimulate increased participation of socially and economically disadvantaged small business concerns. Purposes.—The purposes of this title [see Short Title of 1992 Amendments note set out under section 631 of this title] are— to expand and improve the small business innovation research program; to emphasize the program’s goal of increasing private sector commercialization of technology developed through Federal research and development; to increase small business participation in Federal research and development; and to improve the Federal Government’s dissemination of information concerning the small business innovation research program, particularly with regard to program participation by women-owned small business concerns and by socially and economically disadvantaged small business concerns.”

### Recommendations of Secretary of Defense

Pub. L. 102–564, title I, § 106, Oct. 28, 1992, 106 Stat. 4256, required the Secretary of Defense, by Mar. 31, 1996, to submit a recommendation to Congress addressing whether there was a demonstrable reduction in the quality of research performed under the Small Business Innovation Research Program since the beginning of fiscal year 1993, such that increasing the percentage in fiscal years after 1996 under former 15 U.S.C. 638(f)(1)(C) would adversely affect the performance of the research programs of the Department of Defense.

### Timing of Issuance of Policy Directive

Pub. L. 102–564, title II, § 202(d), Oct. 28, 1992, 106 Stat. 4260, provided that: “The policy directive required by section 9(p) of the Small Business Act [15 U.S.C. 638(p)] (as added by subsection (c) of this section) shall be published— in proposed form (with an opportunity for public comment of not less than 30 days), not later than April 30, 1993; and in final form, not later than July 31, 1993.”

### Sense of Congress Concerning American-Made Equipment and Products

Pub. L. 102–564, title III, § 306, Oct. 28, 1992, 106 Stat. 4263, provided that: Purchase of American-Made Equipment and Products.—It is the sense of the Congress that an entity that is awarded a funding agreement under the SBIR program of a Federal agency under section 9 of the Small Business Act [15 U.S.C. 638] should, when purchasing any equipment or a product with funds provided through the funding agreement, purchase only American-made equipment and products, to the extent possible in keeping with the overall purposes of that program. Notice to SBIR Awardees.—Each Federal agency that awards funding agreements under the SBIR program shall provide to each recipient of such an award a notice describing the sense of the Congress, as set forth in subsection (a).”

### Small Business Innovation Research Program in Department of Defense

Pub. L. 102–484, div. D, title XLII, § 4237, Oct. 23, 1992, 106 Stat. 2691, provided that: Extension of Program.— Limitation on Program Awards.—Amounts paid to a small business concern by the Department of Defense under the Small Business Innovation Research Program for a project— in phase I under the program may not exceed $100,000; and in phase II under the program may not exceed $750,000. Commercial Applications Strategy.—Not later than 270 days after the date of the enactment of this Act [Oct. 23, 1992], the Secretary of Defense, in consultation with the Administrator of the Small Business Administration, shall develop and issue a strategy for effectuating the transition of successful projects under the Small Business Innovation Research Program from phase II under the program into phase III under the program. Repeal of Exclusion of Certain Activities.— Percentage of Required Expenditures for SBIR Contracts.— The Small Business Innovation Research Program shall apply to the Department of Defense (including the military departments) as if the percentage specified in section 9(f)(1) of the Small Business Act (15 U.S.C. 638(f)(1)) with respect to fiscal years after fiscal year 1982 were determined in accordance with the table set forth in paragraph (2) (rather than 1.25 percent). The percentage under section 9(f)(1) of the Small Business Act (15 U.S.C. 638(f)(1)) for any fiscal year for the Department of Defense and each military department shall be determined in accordance with the following table:


| “For fiscal year: | The percentage is: |
| --- | --- |
| 1993 | 1.25 |
| 1994 | 1.5 |
| 1995 | 1.75 |
| 1996 | 2.0 |
| 1997 | 2.25 |
| 1998 and thereafter | 2.5. |

If the determination of the Secretary of Defense under subparagraph (C) is a negative determination (as set forth in that paragraph), then the percentage under section 9(f)(1) of the Small Business Act (15 U.S.C. 638(f)(1)) for the Department of Defense and each military department for fiscal years after fiscal year 1996 shall remain at the level applicable for fiscal year 1996 (notwithstanding the percentages specified in subparagraph (A) for fiscal years after fiscal year 1996). Not later than June 30, 1996, the Secretary of Defense during fiscal year 1996 shall determine whether there has been a demonstrable reduction in the quality of research performed under funding agreements awarded by the Department of Defense under the SBIR program since the beginning of fiscal year 1993 such that increasing the percentage under subparagraph (A) for fiscal years after fiscal year 1996 with respect to the department would adversely affect the performance of the department’s research programs. If the determination of the Secretary is that there has been such a demonstrable reduction in the quality of research such that increasing the percentage under subparagraph (B) for fiscal years after fiscal year 1996 with respect to the department would adversely affect the performance of the department’s research programs, the Secretary shall be considered for purposes of subparagraph (B) to have made a negative determination. The determination of the Secretary concerned under this paragraph shall be made after considering the assessment of the Comptroller General with respect to that department in the report transmitted under subparagraph (D). Not later than March 30, 1996, the Comptroller General shall transmit to the Congress and the Secretary of Defense a report setting forth the Comptroller General’s assessment, with respect to the Department of Defense of whether there has been a demonstrable reduction in the quality of research performed under funding agreements awarded by the department under the SBIR program since the beginning of fiscal year 1993 such that increasing the percentage under subparagraph (A) for fiscal years after fiscal year 1996 with respect to the department would adversely affect the performance of the department’s research programs. The results of each determination under subparagraph (C) shall be transmitted to the Congress not later than June 30, 1996. Definitions.—In this section: The term ‘Small Business Innovation Research Program’ means the program established under the following provisions of section 9 of the Small Business Act (15 U.S.C. 638): Paragraphs (4) through (7) of subsection (b). Subsections (e) through (k). The term ‘phase I’, with respect to the Small Business Innovation Research Program, means the first phase described in subsection (e)(4)(A) of section 9 of the Small Business Act. The term ‘phase II’, with respect to the Small Business Innovation Research Program, means the second phase described in subsection (e)(4)(B) of such section. The term ‘phase III’, with respect to the Small Business Innovation Research Program, means the third phase described in subsection (e)(4)(C) of such section. Effective Date.—Subject to subsection (h), this section, and the amendments made by this section, shall take effect on October 1, 1992, and shall apply with respect to fiscal years after fiscal year 1992. Effectiveness of Section Conditional on Failure to Enact Other Legislation.— In the event of the enactment of H.R. 4400 or S. 2941 [S. 2941 was enacted into law as Pub. L. 102–564 on Oct. 28, 1992], 102d Congress, on or before the date of the enactment of this Act [Oct. 23, 1992], then this section and the amendments made by this section shall not take effect. In the event of the enactment of H.R. 4400 or S. 2941, 102d Congress, after the date of the enactment of this Act, then, effective immediately before the enactment of H.R. 4400 or S. 2941, 102d Congress— this section shall cease to be effective; and the provisions of a small business law that are amended by this section shall be effective and read as such provisions of that law were in effect immediately before the enactment of this Act, except that to the extent that any amendment is made to such a provision of a small business law by any other provision of law referred to in subparagraph (B), such provision of a small business law shall be effective and shall read as amended by that other provision of law. For the purposes of subparagraph (A)(ii), a provision of law referred to in this subparagraph is the following: A provision of this Act other than a provision of this section. A provision of any other Act if the provision takes effect during the period beginning on the date of the enactment of this Act and ending immediately before the enactment of H.R. 4400 or S. 2941, 102d Congress. In this paragraph, the term ‘small business law’ means— the Small Business Act (15 U.S.C. 631 et seq.); and the Small Business Innovation Development Act of 1982 [Pub. L. 97–219] (15 U.S.C. 638 note).”

### Use of Department of Agriculture Extramural Budget Funds in Small Business Innovation Research Program

Pub. L. 99–500, § 101(a) [title VI, § 630], Oct. 18, 1986, 100 Stat. 1783, 1783–30, and Pub. L. 99–591, § 101(a) [title VI, § 630], Oct. 30, 1986, 100 Stat. 3341, 3341–30, provided that: “All funds appropriated for this fiscal year and all funds appropriated hereafter by this or any other Act that are determined to be part of the ‘extramural budget’ of the Department of Agriculture for any fiscal year for purposes of meeting the requirements of section 9 of the Small Business Act (15 U.S.C. 638), as amended by the Small Business Innovation Development Act of 1982, Public Law 97–219, shall be available for contracts, grants or cooperative agreements with small business concerns for any purpose in furtherance of the small business innovation research program. Such funds may be transferred for such purpose from one appropriation to another or to a single account.”

### Congressional Findings and Declaration of Purpose: Small Business Innovation Development Act of 1982

Pub. L. 97–219, § 2, July 22, 1982, 96 Stat. 217, provided that: The Congress finds that— technological innovation creates jobs, increases productivity, competition, and economic growth, and is a valuable counterforce to inflation and the United States balance-of-payments deficit; while small business is the principal source of significant innovations in the Nation, the vast majority of federally funded research and development is conducted by large businesses, universities, and Government laboratories; and small businesses are among the most cost-effective performers of research and development and are particularly capable of developing research and development results into new products. Therefore, the purposes of the Act [amending this section] are— to stimulate technological innovation; to use small business to meet Federal research and development needs; to foster and encourage participation by minority and disadvantaged persons in technological innovation; and to increase private sector commercialization innovations derived from Federal research and development.”

### Reports of Comptroller General

Pub. L. 102–564, title I, § 105, Oct. 28, 1992, 106 Stat. 4254, required the Comptroller General to submit to Congress an interim report, by Mar. 31, 1995, concerning the quality of research performed under Small Business Innovation Research Program funding agreements entered into during fiscal year 1993 and thereafter and a final report, no later than 5 years after Oct. 28, 1992, concerning various aspects of the Small Business Innovation Research Program.

Pub. L. 102–564, title II, § 202(e), Oct. 28, 1992, 106 Stat. 4260, required the Comptroller General to submit a report to Congress and the head of each agency required to make expenditures under the Small Business Technology Transfer Program setting forth the Comptroller General’s assessment of various aspects of the program and with the agencies’ compliance with procedural requirements.

Pub. L. 97–219, § 6, July 22, 1982, 96 Stat. 221, as amended by Pub. L. 99–443, § 3, Oct. 6, 1986, 100 Stat. 1120; Pub. L. 100–418, title VIII, § 8008, Aug. 23, 1988, 102 Stat. 1561; Pub. L. 100–647, title IX, § 9003, Nov. 10, 1988, 102 Stat. 3808, required the Comptroller General, by Dec. 31, 1988, to transmit a report to appropriate Congressional committees evaluating the effectiveness of the initial phases of the Small Business Innovation Research Program, by Dec. 31, 1991, to transmit to such committees an update of the earlier report, and by July 1, 1989, to transmit to such committees recommendations as to the advisability of certain amendments to the Small Business Innovation Research Program.

### Definitions

Pub. L. 117–183, § 2, Sept. 30, 2022, 136 Stat. 2180, provided that: “In this Act [amending this section and enacting provisions set out as notes under this section and section 631 of this title]: Administration; administrator.—The terms ‘Administration’ and ‘Administrator’ mean the Small Business Administration and the Administrator thereof, respectively. Federal agency; phase i; phase ii; phase iii; sbir; sttr.—The terms ‘Federal agency’, ‘Phase I’, ‘Phase II’, ‘Phase III’, ‘SBIR’, and ‘STTR’ have the meanings given those terms, respectively, in section 9(e) of the Small Business Act (15 U.S.C. 638(e)).”

### Executive Documents

### Ex. Ord. No. 13329. Encouraging Innovation in Manufacturing

Ex. Ord. No. 13329, Feb. 24, 2004, 69 F.R. 9181, provided:

By the authority vested in me as President by the Constitution and the laws of the United States of America, including the Small Business Act, as amended (15 U.S.C. 631 et seq.), and to help ensure that Federal agencies properly and effectively assist the private sector in its manufacturing innovation efforts, it is hereby ordered as follows:

Section 1. Policy. Continued technological innovation is critical to a strong manufacturing sector in the United States economy. The Federal Government has an important role, including through the Small Business Innovation Research (SBIR) and the Small Business Technology Transfer (STTR) programs, in helping to advance innovation, including innovation in manufacturing, through small businesses.

Sec. 2. Duties of Department and Agency Heads. The head of each executive branch department or agency with one or more SBIR programs or one or more STTR programs shall:

(a) to the extent permitted by law and in a manner consistent with the mission of that department or agency, give high priority within such programs to manufacturing-related research and development to advance the policy set forth in section 1 of this order; and

(b) submit reports annually to the Administrator of the Small Business Administration and the Director of the Office of Science and Technology Policy concerning the efforts of such department or agency to implement subsection 2(a) of this order.

Sec. 3. Duties of Administrator of the Small Business Administration. The Administrator of the Small Business Administration:

(a) shall establish, after consultation with the Director of the Office of Science and Technology Policy, formats and schedules for submission of reports by the heads of departments and agencies under subsection 2(b) of this order; and

(b) is authorized to issue to departments and agencies guidelines and directives (in addition to the formats and schedules under subsection 3(a)) as the Administrator determines from time to time are necessary to implement subsection 2(a) of this order, after such guidelines and directives are submitted to the President, through the Director of the Office of Science and Technology Policy, for approval and are approved by the President.

Sec. 4. Definitions. As used in this order:

(a) “Small Business Innovation Research (SBIR) program” means a program to which section 9(e)(4) of the Small Business Act (15 U.S.C. 638(e)(4)) refers;

(b) “Small Business Technology Transfer (STTR) program” means a program to which section 9(e)(6) of the Small Business Act (15 U.S.C. 638(e)(6)) refers;

(c) “research and development” means an activity set forth in section 9(e)(5) of the Small Business Act (15 U.S.C. 638(e)(5)); and

(d) “manufacturing-related” means relating to: (i) manufacturing processes, equipment and systems; or (ii) manufacturing workforce skills and protection.

Sec. 5. General Provisions. (a) Nothing in this order shall be construed to impair or otherwise affect the authority of the Director of the Office of Management and Budget with respect to budget, administrative, or legislative proposals.

(b) Nothing in this order shall be construed to require disclosure of information the disclosure of which is prohibited by law or by Executive Order, including [former] Executive Order 12958 of April 17, 1995, as amended.

(c) This order is intended only to improve the internal management of the executive branch and is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity, against the United States, its departments, agencies, or other entities, its officers or employees, or any other person.