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Full Text of this Amendment

SA 315. Mr. MERKLEY submitted an amendment intended to be proposed by him to the bill S. 493, to reauthorize and improve the SBIR and STTR programs, and for other purposes; which was ordered to lie on the table; as follows:

On page 49, line 16, strike "and" and all that follows through page 115, line 8, and insert the following:
(B) by striking "SBIR projects" and inserting "SBIR or STTR projects";
(C) in subparagraph (C), by striking "and" at the end;
(D) in subparagraph (D), by striking the period at the end and inserting "; and"; and
(E) by adding at the end the following:
"(E) developing and manufacturing in the United States new commercial products and processes resulting from such projects.";
(2) in paragraph (2), by striking "3 years" and inserting "5 years"; and
(3) in paragraph (3)--
(A) in subparagraph (A)--
(i) by inserting "or STTR" after "SBIR"; and
(ii) by striking "$4,000" and inserting "$5,000";
(B) by striking subparagraph (B) and inserting the following:
"(B) PHASE II.--A Federal agency described in paragraph (1) may--
"(i) provide to the recipient of a Phase II SBIR or STTR award, through a vendor selected under paragraph (2), the services described in paragraph (1), in an amount equal to not more than $5,000 per year; or
"(ii) authorize the recipient of a Phase II SBIR or STTR award to purchase the services described in paragraph (1), in an amount equal to not more than $5,000 per year, which shall be in addition to the amount of the recipient's award."; and
(C) by adding at the end the following:
"(C) FLEXIBILITY.--In carrying out subparagraphs (A) and (B), each Federal agency shall provide the allowable amounts to a recipient that meets the eligibility requirements under the applicable subparagraph, if the recipient requests to seek technical assistance from an individual or entity other than the vendor selected under paragraph (2) by the Federal agency.
"(D) LIMITATION.--A Federal agency may not--
"(i) use the amounts authorized under subparagraph (A) or (B) unless the vendor selected under paragraph (2) provides the technical assistance to the recipient; or
"(ii) enter a contract with a vendor under paragraph (2) under which the amount provided for technical assistance is based on total number of Phase I or Phase II awards.".
SEC. 203. COMMERCIALIZATION READINESS PROGRAM AT DEPARTMENT OF DEFENSE.
(a) In General.--Section 9(y) of the Small Business Act (15 U.S.C. 638(y)) is amended--
(1) in the subsection heading, by striking "Pilot" and inserting "Readiness";
(2) by striking "Pilot" each place that term appears and inserting "Readiness";
(3) in paragraph (1)--
(A) by inserting "or Small Business Technology Transfer Program" after "Small Business Innovation Research Program"; and
(B) by adding at the end the following: "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 the date of enactment of the National Defense Authorization Act for Fiscal Year 2006 (Public Law 109-163; 119 Stat. 3136).";
(4) in paragraph (2), by inserting "or Small Business Technology Transfer Program" after "Small Business Innovation Research Program";
(5) by striking paragraphs (5) and (6); and
(6) by inserting after paragraph (4) the following:
"(5) 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 on such a contract to report the number and dollar amount of contracts entered into by that prime contractor for Phase III SBIR or STTR projects.
"(6) 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 that Secretary that lead to technology transition into programs of record or fielded systems;
"(B) use incentives in effect on the date of enactment of the SBIR/STTR Reauthorization Act of 2011, or create new incentives, to encourage agency program managers and prime contractors to meet the goal under subparagraph (A); and
"(C) include in the annual report to Congress the percentage of contracts described in subparagraph (A) awarded by that Secretary, and information on the ongoing status of projects funded through the Commercialization Readiness Program and efforts to transition these technologies into programs of record or fielded systems.".
(b) Technical and Conforming Amendment.--Section 9(i)(1) of the Small Business Act (15 U.S.C. 638(i)(1)) is amended by inserting "(including awards under subsection (y))" after "the number of awards".
SEC. 204. COMMERCIALIZATION READINESS PILOT PROGRAM FOR CIVILIAN AGENCIES.
Section 9 of the Small Business Act (15 U.S.C. 638), as amended by this Act, is amended by adding at the end the following:
"(ff) Pilot Program.--
"(1) AUTHORIZATION.--The head of each covered Federal agency may allocate not more than 10 percent of the funds allocated to the SBIR program and the STTR program of the covered Federal agency--
"(A) for awards for technology development, testing, and evaluation of SBIR and STTR Phase II technologies; or
"(B) to support the progress of research or research and development conducted under the SBIR or STTR programs to Phase III.
"(2) APPLICATION BY FEDERAL AGENCY.--
"(A) IN GENERAL.--A covered Federal agency may not establish a pilot program unless the covered Federal agency makes a written application to the Administrator, not later than 90 days before to 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.
"(B) DETERMINATION.--The Administrator shall--
"(i) make a determination regarding an application submitted under subparagraph (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 of the House of Representatives.
"(3) MAXIMUM AMOUNT OF AWARD.--The head of a covered Federal agency 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) or (p)(2)(B)(ix).
"(4) REGISTRATION.--Any applicant that receives an award under a pilot program shall register with the Administrator in a registry that is available to the public.
"(5) INCREASING DOMESTIC CAPABILITIES.--In carrying out a pilot program, the head of a covered Federal agency shall give preference to applicants that intend to test, develop, or manufacture a product or service in the United States.
"(6) REPORT.--The head of each covered Federal agency shall include in the annual report of the covered Federal agency to the Administrator an analysis of the various activities considered for inclusion in the pilot program of the covered Federal agency 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 2014.
"(8) DEFINITIONS.--In this subsection--
"(A) the term `covered Federal agency'--
"(i) means a Federal agency 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 the program established under paragraph (1).".
SEC. 205. ACCELERATING CURES.
(a) In General.--The Small Business Act (15 U.S.C. 631 et seq.) is amended by inserting after section 42, as redesignated by section 201 of this Act, the following:
"SEC. 43. SMALL BUSINESS INNOVATION RESEARCH PROGRAM.
"(a) NIH Cures Pilot.--
"(1) ESTABLISHMENT.--An independent advisory board shall be established at the National Academy of Sciences (in this section referred to as the `advisory board') to conduct periodic evaluations of the SBIR program (as that term is defined in section 9) of each of the National Institutes of Health (referred to in this section as the `NIH') institutes and centers for the purpose of improving the management of the SBIR program through data-driven assessment.
"(2) MEMBERSHIP.--
"(A) IN GENERAL.--The advisory board shall consist of--
"(i) the Director of the NIH;
"(ii) the Director of the SBIR program of the NIH;
"(iii) senior NIH agency managers, selected by the Director of NIH;
"(iv) industry experts, selected by the Council of the National Academy of Sciences in consultation with the Associate Administrator for Technology of the Administration and the Director of the Office of Science and Technology Policy; and
"(v) owners or operators of small business concerns that have received an award under the SBIR program of the NIH, selected by the Associate Administrator for Technology of the Administration.
"(B) NUMBER OF MEMBERS.--The total number of members selected under clauses (iii), (iv), and (v) of subparagraph (A) shall not exceed 10.
"(C) EQUAL REPRESENTATION.--The total number of members of the advisory board selected under clauses (i), (ii), (iii), and (iv) of subparagraph (A) shall be equal to the number of members of the advisory board selected under subparagraph (A)(v).
"(b) Addressing Data Gaps.--In order to enhance the evidence-base guiding SBIR program decisions and changes, the Director of the SBIR program of the NIH shall address the gaps and deficiencies in the data collection concerns identified in the 2007 report of the National Academy of Science entitled `An Assessment of the Small Business Innovation Research Program at the NIH'.
"(c) Pilot Program.--
"(1) IN GENERAL.--The Director of the SBIR program of the NIH may initiate a pilot program, under a formal mechanism for designing, implementing, and evaluating pilot programs, to spur innovation and to test new strategies that may enhance the development of cures and therapies.
"(2) CONSIDERATIONS.--The Director of the SBIR program of the NIH may consider conducting a pilot program to include individuals with successful SBIR program experience in study sections, hiring individuals with small business development experience for staff positions, separating the commercial and scientific review processes, and examining the impact of the trend toward larger awards on the overall program.
"(d) Report to Congress.--The Director of the NIH shall submit an annual report to Congress and the advisory board on the activities of the SBIR program of the NIH under this section.
"(e) SBIR Grants and Contracts.--
"(1) IN GENERAL.--In awarding grants and contracts under the SBIR program of the NIH each SBIR program manager shall emphasize applications that identify products, processes, technologies, and services that may enhance the development of cures and therapies.
"(2) EXAMINATION OF COMMERCIALIZATION AND OTHER METRICS.--The advisory board shall evaluate the implementation of the requirement under paragraph (1) by examining increased commercialization and other metrics, to be determined and collected by the SBIR program of the NIH.
"(3) PHASE I AND II.--To the greatest extent practicable, the Director of the SBIR program of the NIH shall reduce the time period between Phase I and Phase II funding of grants and contracts under the SBIR program of the NIH to 90 days.
"(f) Limit.--Not more than a total of 1 percent of the extramural budget (as defined in section 9 of the Small Business Act (15 U.S.C. 638)) of the NIH for research or research and development may be used for the pilot program under subsection (c) and to carry out subsection (e).".
(b) Prospective Repeal.--Effective 5 years after the date of enactment of this Act, the Small Business Act (15 U.S.C. 631 et seq.) is amended--
(1) by striking section 43, as added by subsection (a); and
(2) by redesignating sections 44 and 45 as sections 43 and 44, respectively.
SEC. 206. FEDERAL AGENCY ENGAGEMENT WITH SBIR AND STTR AWARDEES THAT HAVE BEEN AWARDED MULTIPLE PHASE I AWARDS BUT HAVE NOT BEEN AWARDED PHASE II AWARDS.
Section 9 of the Small Business Act (15 U.S.C. 638), as amended by this Act, is amended by adding at the end the following:
"(gg) Requirements Relating to Federal Agency Engagement With Certain Phase I SBIR and STTR Awardees.--
"(1) DEFINITION.--In this subsection, the term `covered awardee' means a small business concern that--
"(A) has received multiple Phase I awards over multiple years, as determined by the head of a Federal agency, under the SBIR program or the STTR program of the Federal agency; and
"(B) has not received a Phase II award--
"(i) under the SBIR program or STTR program, as the case may be, of the Federal agency described in subparagraph (A); or
"(ii) relating to a Phase I award described in subparagraph (A) under the SBIR program or the STTR program of another Federal agency.
"(2) PERFORMANCE MEASURES.--The head of each Federal agency that participates in the SBIR program or the STTR program shall develop performance measures for any covered awardee relating to commercializing research or research and development activities under the SBIR program or the STTR program of the Federal agency.".
SEC. 207. CLARIFYING THE DEFINITION OF "PHASE III".
(a) Phase III Awards.--Section 9(e) of the Small Business Act (15 U.S.C. 638(e)) is amended--
(1) in paragraph (4)(C), in the matter preceding clause (i), by inserting "for work that derives from, extends, or completes efforts made under prior funding agreements under the SBIR program" after "phase";
(2) in paragraph (6)(C), in the matter preceding clause (i), by inserting "for work that derives from, extends, or completes efforts made under prior funding agreements under the STTR program" after "phase";
(3) in paragraph (8), by striking "and" at the end;
(4) in paragraph (9), by striking the period at the end and inserting a semicolon; and
(5) by adding at the end the following:
"(10) the term `commercialization' means--
"(A) the process of developing products, processes, technologies, or services; and
"(B) the production and delivery of products, processes, technologies, or services for sale (whether by the originating party or by others) to or use by the Federal Government or commercial markets;".
(b) Technical and Conforming Amendments.--The Small Business Act (15 U.S.C. 631 et seq.) is amended--
(1) in section 9 (15 U.S.C. 638)--
(A) in subsection (e)--
(i) in paragraph (4)(C)(ii), by striking "scientific review criteria" and inserting "merit-based selection procedures";
(ii) in paragraph (9), by striking "the second or the third phase" and inserting "Phase II or Phase III"; and
(iii) by adding at the end the following:
"(11) the term `Phase I' means--
"(A) with respect to the SBIR program, the first phase described in paragraph (4)(A); and
"(B) with respect to the STTR program, the first phase described in paragraph (6)(A);
"(12) the term `Phase II' means--
"(A) with respect to the SBIR program, the second phase described in paragraph (4)(B); and
"(B) with respect to the STTR program, the second phase described in paragraph (6)(B); and
"(13) the term `Phase III' means--
"(A) with respect to the SBIR program, the third phase described in paragraph (4)(C); and
"(B) with respect to the STTR program, the third phase described in paragraph (6)(C).";
(B) in subsection (j)--
(i) in paragraph (1)(B), by striking "phase two" and inserting "Phase II";
(ii) in paragraph (2)--
(I) in subparagraph (B)--
(aa) by striking "the third phase" each place it appears and inserting "Phase III"; and
(bb) by striking "the second phase" and inserting "Phase II";
(II) in subparagraph (D)--
(aa) by striking "the first phase" and inserting "Phase I"; and
(bb) by striking "the second phase" and inserting "Phase II";
(III) in subparagraph (F), by striking "the third phase" and inserting "Phase III";
(IV) in subparagraph (G)--
(aa) by striking "the first phase" and inserting "Phase I"; and
(bb) by striking "the second phase" and inserting "Phase II"; and
(V) in subparagraph (H)--
(aa) by striking "the first phase" and inserting "Phase I";
(bb) by striking "second phase" each place it appears and inserting "Phase II"; and
(cc) by striking "third phase" and inserting "Phase III"; and
(iii) in paragraph (3)--
(I) in subparagraph (A)--
(aa) by striking "the first phase (as described in subsection (e)(4)(A))" and inserting "Phase I";
(bb) by striking "the second phase (as described in subsection (e)(4)(B))" and inserting "Phase II"; and
(cc) by striking "the third phase (as described in subsection (e)(4)(C))" and inserting "Phase III"; and
(II) in subparagraph (B), by striking "second phase" and inserting "Phase II";
(C) in subsection (k)--
(i) by striking "first phase" each place it appears and inserting "Phase I"; and
(ii) by striking "second phase" each place it appears and inserting "Phase II";
(D) in subsection (l)(2)--
(i) by striking "the first phase" and inserting "Phase I"; and
(ii) by striking "the second phase" and inserting "Phase II";
(E) in subsection (o)(13)--
(i) in subparagraph (B), by striking "second phase" and inserting "Phase II"; and
(ii) in subparagraph (C), by striking "third phase" and inserting "Phase III";
(F) in subsection (p)--
(i) in paragraph (2)(B)--
(I) in clause (vi)--
(aa) by striking "the second phase" and inserting "Phase II"; and
(bb) by striking "the third phase" and inserting "Phase III"; and
(II) in clause (ix)--
(aa) by striking "the first phase" and inserting "Phase I"; and
(bb) by striking "the second phase" and inserting "Phase II"; and
(ii) in paragraph (3)--
(I) by striking "the first phase (as described in subsection (e)(6)(A))" and inserting "Phase I";
(II) by striking "the second phase (as described in subsection (e)(6)(B))" and inserting "Phase II"; and
(III) by striking "the third phase (as described in subsection (e)(6)(A))" and inserting "Phase III";
(G) in subsection (q)(3)--
(i) in subparagraph (A)--
(I) in the subparagraph heading, by striking "FIRST PHASE" and inserting "PHASE I"; and
(II) by striking "first phase" and inserting "Phase I"; and
(ii) in subparagraph (B)--
(I) in the subparagraph heading, by striking "SECOND PHASE" and inserting "PHASE II"; and
(II) by striking "second phase" and inserting "Phase II";
(H) in subsection (r)--
(i) in the subsection heading, by striking "Third Phase" and inserting "Phase III";
(ii) in paragraph (1)--
(I) in the first sentence--
(aa) by striking "for the second phase" and inserting "for Phase II";
(bb) by striking "third phase" and inserting "Phase III"; and
(cc) by striking "second phase period" and inserting "Phase II period"; and
(II) in the second sentence--
(aa) by striking "second phase" and inserting "Phase II"; and
(bb) by striking "third phase" and inserting "Phase III"; and
(iii) in paragraph (2), by striking "third phase" and inserting "Phase III"; and
(I) in subsection (u)(2)(B), by striking "the first phase" and inserting "Phase I"; and
(2) in section 34(c)(2)(B)(vii) (15 U.S.C. 657e(c)(2)(B)(vii)), as redesignated by section 201 of this Act, by striking "third phase" and inserting "Phase III".
SEC. 208. SHORTENED PERIOD FOR FINAL DECISIONS ON PROPOSALS AND APPLICATIONS.
(a) In General.--Section 9 of the Small Business Act (15 U.S.C. 638) is amended--
(1) in subsection (g)(4)--
(A) by inserting "(A)" after "(4)";
(B) by adding "and" after the semicolon at the end; and
(C) by adding at the end the following:
"(B) make a final decision on each proposal submitted under the SBIR program--
"(i) not later than 90 days after the date on which the solicitation closes; or
"(ii) if the Administrator authorizes an extension for a solicitation, not later than 180 days after the date on which the solicitation closes;"; and
(2) in subsection (o)(4)--
(A) by inserting "(A)" after "(4)";
(B) by adding "and" after the semicolon at the end; and
(C) by adding at the end the following:
"(B) make a final decision on each proposal submitted under the STTR program--
"(i) not later than 90 days after the date on which the solicitation closes; or
"(ii) if the Administrator authorizes an extension for a solicitation, not later than 180 days after the date on which the solicitation closes;".
(b) NIH Peer Review Process.--
(1) IN GENERAL.--Section 9 of the Small Business Act (15 U.S.C. 638), as amended by this Act, is amended by adding at the end the following:
"(hh) NIH Peer Review Process.--The Director of the National Institutes of Health may make an award under the SBIR program or the STTR program of the National Institutes of Health if the application for the award has undergone technical and scientific peer review under section 492 of the Public Health Service Act (42 U.S.C. 289a).".
(2) TECHNICAL AND CONFORMING AMENDMENTS.--Section 105 of the National Institutes of Health Reform Act of 2006 (42 U.S.C. 284n) is amended--
(A) in subsection (a)(3)--
(i) by striking "A grant" and inserting "Except as provided in section 9(hh) of the Small Business Act (15 U.S.C. 638(hh)), a grant"; and
(ii) by striking "section 402(k)" and all that follows through "Act)" and inserting "section 402(l) of such Act"; and
(B) in subsection (b)(5)--
(i) by striking "A grant" and inserting "Except as provided in section 9(hh) of the Small Business Act (15 U.S.C. 638(hh)), a grant"; and
(ii) by striking "section 402(k)" and all that follows through "Act)" and inserting "section 402(l) of such Act".
TITLE III--OVERSIGHT AND EVALUATION


SEC. 301. STREAMLINING ANNUAL EVALUATION REQUIREMENTS.
Section 9(b) of the Small Business Act (15 U.S.C. 638(b)), as amended by section 102 of this Act, is amended--
(1) in paragraph (7)--
(A) by striking "STTR programs, including the data" and inserting the following: "STTR programs, including--
"(A) the data";
(B) by striking "(g)(10), (o)(9), and (o)(15), the number" and all that follows through "under each of the SBIR and STTR programs, and a description" and inserting the following: "(g)(8) and (o)(9); and
"(B) the number of proposals received from, and the number and total amount of awards to, HUBZone small business concerns and firms with venture capital investment (including those majority-owned by multiple venture capital operating companies) under each of the SBIR and STTR programs;
"(C) a description of the extent to which each Federal agency is increasing outreach and awards to firms owned and controlled by women and social 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 (cc) for firms owned in majority part by venture capital operating companies 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 with Federal agencies; and
"(F) a description"; and
(2) by inserting after paragraph (7) the following:
"(8) to coordinate the implementation of electronic databases at each of the Federal agencies participating in the SBIR program or the STTR program, including the technical ability of the participating agencies to electronically share data;".
SEC. 302. DATA COLLECTION FROM AGENCIES FOR SBIR.
Section 9(g) of the Small Business Act (15 U.S.C. 638(g)) is amended--
(1) by striking paragraph (10);
(2) by redesignating paragraphs (8) and (9) as paragraphs (9) and (10), respectively; and
(3) by inserting after paragraph (7) the following:
"(8) collect annually, and maintain in a common format in accordance with the simplified reporting requirements under subsection (v), such information from awardees as is necessary to assess the SBIR program, including information necessary to maintain the database described in subsection (k), including--
"(A) whether an awardee--
"(i) has venture capital or is majority-owned by multiple venture capital operating companies, and, if so--
"(I) the amount of venture capital 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 that is not an individual and is not organized under the laws of a State or the United States, and if so the name of any such person;
"(iii) is owned by a woman or has a woman as a principal investigator;
"(iv) is owned by a socially or economically disadvantaged individual or has a socially or economically disadvantaged individual as a principal investigator;
"(v) received assistance under the FAST program under section 34, as in effect on the day before the date of enactment of the SBIR/STTR Reauthorization Act of 2011, or the outreach program under subsection (s);
"(vi) is a faculty member or a student of an institution of higher education, as that term is defined in section 101 of the Higher Education Act of 1965 (20 U.S.C. 1001);
"(vii) is located in a State described in subsection (u)(3); or
"(viii)(I) has a product, process, technology, or service that received funding under the SBIR program of the Federal agency and that is produced or delivered for sale to or use by the Federal Government or commercial markets; and
"(II) for each product, process, technology, or service described in subclause (I), is testing or producing the product, process, technology, or service in the United States; and
"(B) a justification statement from the agency, if an awardee receives an award in an amount that is more than the award guidelines under this section;".
SEC. 303. DATA COLLECTION FROM AGENCIES FOR STTR.
Section 9(o) of the Small Business Act (15 U.S.C. 638(o)) is amended by striking paragraph (9) and inserting the following:
"(9) collect annually, and maintain in a common format in accordance with the simplified reporting requirements under subsection (v), such information from applicants and awardees as is necessary to assess the STTR program outputs and outcomes, including information necessary to maintain the database described in subsection (k), including--
"(A) whether an applicant or awardee--
"(i) has venture capital or is majority-owned by multiple venture capital operating companies, and, if so--
"(I) the amount of venture capital that the applicant 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 or 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 that is not an individual and is not organized under the laws of a State or the United States, and if so the name of any such person;
"(iii) is owned by a woman or has a woman as a principal investigator;
"(iv) is owned by a socially or economically disadvantaged individual or has a socially or economically disadvantaged individual as a principal investigator;
"(v) received assistance under the FAST program under section 34 or the outreach program under subsection (s);
"(vi) is a faculty member or a student of an institution of higher education, as that term is defined in section 101 of the Higher Education Act of 1965 (20 U.S.C. 1001);
"(vii) is located in a State in which the total value of contracts awarded to small business concerns under all STTR programs is less than the total value of contracts awarded to small business concerns in a majority of other States, as determined by the Administrator in biennial fiscal years, beginning with fiscal year 2008, based on the most recent statistics compiled by the Administrator; or
"(viii)(I) has a product, process, technology, or service that received funding under the STTR program of the Federal agency and that is produced or delivered for sale to or use by the Federal Government or commercial markets; and
"(II) for each product, process, technology, or service described in subclause (I), is testing or producing the product, process, technology, or service in the United States; and
"(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 that justifies the award amount;".
SEC. 304. PUBLIC DATABASE.
Section 9(k)(1) of the Small Business Act (15 U.S.C. 638(k)(1)) is amended--
(1) in subparagraph (D), by striking "and" at the end;
(2) in subparagraph (E), by striking the period at the end and inserting "; and"; and
(3) by adding at the end the following:
"(F) for each small business concern that has received a Phase I or Phase II SBIR or STTR award from a Federal agency, whether the small business concern--
"(i) has venture capital and, if so, whether the small business concern is registered as majority-owned by multiple venture capital operating companies as required under subsection (cc)(4);
"(ii) is owned by a woman or has a woman as a principal investigator;
"(iii) is owned by a socially or economically disadvantaged individual or has a socially or economically disadvantaged individual as a principal investigator;
"(iv) received assistance under the FAST program under section 34, as in effect on the day before the date of enactment of the SBIR/STTR Reauthorization Act of 2011, or the outreach program under subsection (s);
"(v) is owned by a faculty member or a student of an institution of higher education, as that term is defined in section 101 of the Higher Education Act of 1965 (20 U.S.C. 1001); or
"(vi)(I) has a product, process, technology, or service that received funding under the SBIR or STTR program of the Federal agency and that is produced or delivered for sale to or use by the Federal Government or commercial markets; and
"(II) for each product, process, technology, or service described in subclause (I), is testing or producing the product, process, technology, or service in the United States.".
SEC. 305. GOVERNMENT DATABASE.
Section 9(k) of the Small Business Act (15 U.S.C. 638(k)) is amended--
(1) in paragraph (2)--
(A) in the matter preceding subparagraph (A), by striking "Not later" and all that follows through "Act of 2000" and inserting "Not later than 90 days after the date of enactment of the SBIR/STTR Reauthorization Act of 2011";
(B) by striking subparagraph (C);
(C) by redesignating subparagraphs (A) and (B) as subparagraphs (B) and (C), respectively;
(D) by inserting before subparagraph (B), as so redesignated, the following:
"(A) contains, for each small business concern 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, and an identifying number assigned by the Administration of the small business concern;
"(ii) an abstract of the project;
"(iii) the specific aims of the project;
"(iv) the number of employees of the small business concern;
"(v) the names of key individuals that will carry out the project;
"(vi) the percentage of effort each individual described in clause (iv) will contribute to the project;
"(vii) whether the small business concern is majority-owned by multiple venture capital operating companies;
"(viii) the Federal agency to which the application is made, and contact information for the person or office within the Federal agency that is responsible for reviewing applications and making awards under the SBIR program or the STTR program; and
"(ix) whether the small business concern--
"(I) has a product, process, technology, or service that received funding under the SBIR or STTR program of a Federal agency and that is produced or delivered for sale to or use by the Federal Government or commercial markets; and
"(II) for each product, process, technology, or service described in subclause (I), is testing or producing the product, process, technology, or service in the United States;";
(E) by redesignating subparagraphs (D), and (E) as subparagraphs (E) and (F), respectively;
(F) by inserting after subparagraph (C), as so redesignated, the following:
"(D) includes, for each awardee--
"(i) the name, size, location, and any identifying number assigned to the awardee by the Administrator;
"(ii) whether the awardee has venture capital, and, if so--
"(I) the amount of venture capital as of the date of the award;
"(II) the percentage of ownership of the awardee held by a venture capital operating company, including whether the awardee is majority-owned by multiple venture capital operating companies; and
"(III) the amount of additional capital that the awardee has invested in the SBIR 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 that is not an individual and is not organized under the laws of a State or the United States;";
(G) in subparagraph (E), as so redesignated, by striking "and" at the end;
(H) in subparagraph (F), as so redesignated, by striking the period at the end and inserting "; and"; and
(I) by adding at the end the following:
"(G) includes a timely and accurate list of any individual or small business concern that has participated in the SBIR program or STTR program that has committed fraud, waste, or abuse relating to the SBIR program or STTR program."; and
(2) in paragraph (3), by adding at the end the following:
"(C) GOVERNMENT DATABASE.--Not later than 60 days after the date established by a Federal agency 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 shall submit to the Administrator the data required under paragraph (2) with respect to each small business concern that applies or submits a proposal for the Phase I or Phase II award.".
SEC. 306. ACCURACY IN FUNDING BASE CALCULATIONS.
(a) In General.--Not later than 1 year after the date of enactment of this Act, 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--
(1) conduct a fiscal and management audit of the SBIR program and the STTR program for the applicable period to--
(A) 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 Act;
(B) 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;
(C) 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
(D) 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, 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
(2) submit a report to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives regarding the audit conducted under paragraph (1), including the assessments required under subparagraphs (B) and (C), and the determination made under subparagraph (D) of paragraph (1).
(b) Definition of Applicable Period.--In this section, the term "applicable period" means--
(1) 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 for which information is available; and
(2) for the second and each subsequent report submitted under this section, the period--
(A) 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
(B) ending on September 30 of the last full fiscal year before the date of the report.
SEC. 307. CONTINUED EVALUATION BY THE NATIONAL ACADEMY OF SCIENCES.
Section 108 of the Small Business Reauthorization Act of 2000 (15 U.S.C. 638 note) is amended by adding at the end the following:
"(e) Extensions and Enhancements of Authority.--
"(1) IN GENERAL.--Not later than 6 months after the date of enactment of the SBIR/STTR Reauthorization Act of 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--
"(A) continue the most recent study under this section relating to--
"(i) the issues described in subparagraphs (A), (B), (C), and (E) of subsection (a)(1); and
"(ii) the effectiveness of the government and public databases described in section 9(k) of the Small Business Act (15 U.S.C. 638(k)) in reducing vulnerabilities of the SBIR program and the STTR program to fraud, waste, and abuse, particularly with respect to Federal agencies funding duplicative proposals and business concerns falsifying information in proposals;
"(B) make recommendations with respect to the issues described in subparagraph (A)(ii) and subparagraphs (A), (D), and (E) of subsection (a)(2);
"(C) estimate, to the extent practicable, the number of jobs created by the SBIR program or STTR program of the agency; and
"(D) estimate, to the extent practicable, the amount of production and manufacturing in the United States that resulted from awards under the SBIR program or STTR program of the agency; and
"(E) make recommendations, if any, for changes to the SBIR program or STTR program of the agency that would increase production and manufacturing in the United States.
"(2) CONSULTATION.--An agreement under paragraph (1) shall require the National Research Council to ensure there is participation by and consultation with the small business community, the Administration, and other interested parties as described in subsection (b).
"(3) 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, 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 of the House of Representatives a report regarding the study conducted under paragraph (1)
and containing the recommendations described in paragraph (1).".
SEC. 308. TECHNOLOGY INSERTION REPORTING REQUIREMENTS.
Section 9 of the Small Business Act (15 U.S.C. 638), as amended by this Act, is amended by adding at the end the following:
"(ii) Phase III Reporting.--The annual SBIR or STTR report to Congress by the Administration under subsection (b)(7) shall include, for each Phase III award made by the Federal agency--
"(1) the name of the agency or component of the agency or the non-Federal source of capital making the Phase III award;
"(2) the name of the small business concern or individual receiving the Phase III award;
"(3) the dollar amount of the Phase III award; and
"(4) whether the small business concern or individual receiving the Phase III award is developing, testing, producing, or manufacturing the product or service that is the subject of the Phase III award in the United States.".
SEC. 309. INTELLECTUAL PROPERTY PROTECTIONS.
(a) In General.--The Comptroller General of the United States shall conduct a study of the SBIR program to assess whether--
(1) Federal agencies comply with the data rights protections for SBIR awardees and the technologies of SBIR awardees under section 9 of the Small Business Act (15 U.S.C. 638);
(2) the laws and policy directives intended to clarify the scope of data rights, including in prototypes and mentor-protégé relationships and agreements with Federal laboratories, are sufficient to protect SBIR awardees; and
(3) there is an effective grievance tracking process for SBIR awardees who have grievances against a Federal agency regarding data rights and a process for resolving those grievances.
(b) Report.--Not later than 18 months after the date of enactment of this Act, the Comptroller General shall submit to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives a report regarding the study conducted under subsection (a).
SEC. 310. OBTAINING CONSENT FROM SBIR AND STTR APPLICANTS TO RELEASE CONTACT INFORMATION TO ECONOMIC DEVELOPMENT ORGANIZATIONS.
Section 9 of the Small Business Act (15 U.S.C. 638), as amended by this Act, is amended by adding at the end the following:
"(jj) Consent To Release Contact Information to Organizations.--
"(1) ENABLING CONCERN TO GIVE CONSENT.--Each Federal agency required by this section to conduct an SBIR program or an STTR program shall enable a small business concern that is an SBIR applicant or an STTR applicant to indicate to the Federal agency whether the Federal agency has the consent of the concern to--
"(A) identify the concern to appropriate local and State-level economic development organizations as an SBIR applicant or an STTR applicant; and
"(B) release the contact information of the concern to such organizations.
"(2) RULES.--The Administrator shall establish rules to implement this subsection. The rules shall include a requirement that a Federal agency include in the SBIR and STTR application a provision through which the applicant can indicate consent for purposes of paragraph (1).".
SEC. 311. PILOT TO ALLOW FUNDING FOR ADMINISTRATIVE, OVERSIGHT, AND CONTRACT PROCESSING COSTS.
(a) In General.--Section 9 of the Small Business Act (15 U.S.C. 638), as amended by this Act, is amended by adding at the end the following:
"(kk) Assistance for Administrative, Oversight, and Contract Processing Costs.--
"(1) IN GENERAL.--Subject to paragraph (2), for the 3 full fiscal years beginning after the date of enactment of this subsection, the Administrator shall allow each Federal agency 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 for--
"(A) the administration of the SBIR program or the STTR program of the Federal agency;
"(B) the provision of outreach and technical assistance relating to the SBIR program or STTR program of the Federal agency, including technical assistance site visits and personnel interviews;
"(C) the implementation of commercialization and outreach initiatives that were not in effect on the date of enactment of this subsection;
"(D) carrying out the program under subsection (y);
"(E) activities relating to oversight and congressional reporting, including the waste, fraud, and abuse prevention activities described in section 313(a)(1)(B)(ii) of the SBIR/STTR Reauthorization Act of 2011;
"(F) targeted reviews of recipients of awards under the SBIR program or STTR program of the Federal agency that the head of the Federal agency 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 (cc);
"(I) carrying out subsection (ff);
"(J) contract processing costs relating to the SBIR program or STTR program of the Federal agency; and
"(K) funding for additional personnel and assistance with application reviews.
"(2) PERFORMANCE CRITERIA.--A Federal agency may not use funds as authorized under paragraph (1) until after the effective date of performance criteria, which the Administrator shall establish, to measure any benefits of using funds as authorized under paragraph (1) and to assess continuation of the authority under paragraph (1).
"(3) RULES.--Not later than 180 days after the date of enactment of this subsection, the Administrator shall issue rules to carry out this subsection.".
(b) Technical and Conforming Amendments.--
(1) IN GENERAL.--Section 9 of the Small Business Act (15 U.S.C. 638) is amended--
(A) in subsection (f)(2)(A), as so designated by section 103(2) of this Act, by striking "shall not" and all that follows through "make available for the purpose" and inserting "shall not make available for the purpose"; and
(B) in subsection (y), as amended by section 203--
(i) by striking paragraph (4);
(ii) by redesignating paragraphs (5) and (6) as paragraphs (4) and (5), respectively.
(2) TRANSITIONAL RULE.--Notwithstanding the amendments made by paragraph (1), subsection (f)(2)(A) 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, shall continue to apply to each Federal agency until the effective date of the performance criteria established by the Administrator under subsection (kk)(2) of section 9 of the Small Business Act, as added by subsection (a).
(3) PROSPECTIVE REPEAL.--Effective on the first day of the fourth full fiscal year following the date of enactment of this Act, section 9 of the Small Business Act (15 U.S.C. 638), as amended by paragraph (1) of this section, is amended--
(A) in subsection (f)(2)(A), by striking "shall not make available for the purpose" and inserting the following: "shall not--
"(i) 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
"(ii) make available for the purpose"; and
(B) in subsection (y)--
(i) by redesignating paragraphs (4) and (5) as paragraphs (5) and (6), respectively; and
(ii) by inserting after paragraph (3) the following:
"(4) 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 Pilot Program under this subsection.
"(B) LIMITATIONS.--The funds described in subparagraph (A)--
"(i) shall not be subject to the limitations on the use of funds in subsection (f)(2); and
"(ii) shall not be used to make Phase III awards.".
SEC. 312. GAO STUDY WITH RESPECT TO VENTURE CAPITAL OPERATING COMPANY INVOLVEMENT.
Not later than 3 years after the date of enactment of this Act, and every 3 years thereafter, the Comptroller General of the United States shall--
(1) conduct a study of the impact of requirements relating to venture capital operating company involvement under section 9(cc) of the Small Business Act, as added by section 108 of this Act; and
(2) submit to Congress a report regarding the study conducted under paragraph (1).
SEC. 313. REDUCING VULNERABILITY OF SBIR AND STTR PROGRAMS TO FRAUD, WASTE, AND ABUSE.
(a) Fraud, Waste, and Abuse Prevention.--
(1) GUIDELINES FOR FRAUD, WASTE, AND ABUSE PREVENTION.--
(A) AMENDMENTS REQUIRED.--Not later than 90 days after the date of enactment of this Act, the Administrator shall amend the SBIR Policy Directive and the STTR Policy Directive to include measures to prevent fraud, waste, and abuse in the SBIR program and the STTR program.
(B) CONTENT OF AMENDMENTS.--The amendments required under subparagraph (A) shall include--
(i) definitions or descriptions of fraud, waste, and abuse;
(ii) a requirement that the Inspectors General of each Federal agency that participates in the SBIR program or the STTR program cooperate to--
(I) establish fraud detection indicators;
(II) review regulations and operating procedures of the Federal agencies;
(III) coordinate information sharing between the Federal agencies; and
(IV) improve the education and training of, and outreach to--
(aa) administrators of the SBIR program and the STTR program of each Federal agency;
(bb) applicants to the SBIR program or the STTR program; and
(cc) recipients of awards under the SBIR program or the STTR program;
(iii) guidelines for the monitoring and oversight of applicants to and recipients of awards under the SBIR program or the STTR program; and
(iv) a requirement that each Federal agency that participates in the SBIR program or STTR program include the telephone number of the hotline established under paragraph (2)--
(I) on the Web site of the Federal agency; and
(II) in any solicitation or notice of funding opportunity issued by the Federal agency for the SBIR program or the STTR program.
(2) FRAUD, WASTE, AND ABUSE PREVENTION HOTLINE.--
(A) HOTLINE ESTABLISHED.--The Administrator shall establish a telephone hotline that allows individuals to report fraud, waste, and abuse in the SBIR program or STTR program.
(B) PUBLICATION.--The Administrator shall include the telephone number for the hotline established under subparagraph (A) on the Web site of the Administration.
(b) Study and Report.--
(1) STUDY.--Not later than 1 year after the date of enactment of this Act, and every 3 years thereafter, the Comptroller General of the United States shall--
(A) conduct a study that evaluates--
(i) the implementation by each Federal agency that participates in the SBIR program or the STTR program of the amendments to the SBIR Policy Directive and the STTR Policy Directive made pursuant to subsection (a);
(ii) the effectiveness of the management information system of each Federal agency that participates in the SBIR program or STTR program in identifying duplicative SBIR and STTR projects;
(iii) the effectiveness of the risk management strategies of each Federal agency that participates in the SBIR program or STTR program in identifying areas of the SBIR program or the STTR program that are at high risk for fraud;
(iv) technological tools that may be used to detect patterns of behavior that may indicate fraud by applicants to the SBIR program or the STTR program;
(v) the success of each Federal agency that participates in the SBIR program or STTR program in reducing fraud, waste, and abuse in the SBIR program or the STTR program of the Federal agency; and
(vi) the extent to which the Inspector General of each Federal agency that participates in the SBIR program or STTR program effectively conducts investigations of individuals alleged to have submitted false claims or violated Federal law relating to fraud, conflicts of interest, bribery, gratuity, or other misconduct; and
(B) submit to the Committee on Small Business and Entrepreneurship of the Senate, the Committee on Small Business of the House of Representatives, and the head of each Federal agency that participates in the SBIR program or STTR program a report on the results of the study conducted under subparagraph (A).
SEC. 314. INTERAGENCY POLICY COMMITTEE.
(a) Establishment.--The Director of the Office of Science and Technology Policy (in this section referred to as the "Director"), in conjunction with the Administrator, shall establish an Interagency SBIR/STTR Policy Committee (in this section referred to as the "Committee") comprised of 1 representative from each Federal agency with an SBIR program or an STTR program and 1 representative of the Office of Management and Budget.
(b) Cochairpersons.--The Director and the Administrator shall serve as cochairpersons of the Committee.
(c) Duties.--The Committee shall review, and make policy recommendations on ways to improve the effectiveness and efficiency of, the SBIR program and the STTR program, including--
(1) reviewing the effectiveness of the public and government databases described in section 9(k) of the Small Business Act (15 U.S.C. 638(k));
(2) identifying--
(A) best practices for commercialization assistance by Federal agencies that have significant potential to be employed by other Federal agencies;
(B) proposals by Federal agencies for initiatives to address challenges for small business concerns in obtaining funding after a Phase II award ends and before commercialization; and
(C) ways for Federal agencies to create incentives for recipients of awards under the SBIR program and the STTR program to carry out research, development, testing, production, and manufacturing in the United States; and
(3) developing and incorporating a standard evaluation framework to enable systematic assessment of the SBIR program and STTR program, including through improved tracking of awards and outcomes and development of performance measures for the SBIR program and STTR program of each Federal agency.
(d) Reports.--The Committee shall submit to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Science and Technology and the Committee on Small Business of the House of Representatives--
(1) a report on the review by and recommendations of the Committee under subsection (c)(1) not later than 1 year after the date of enactment of this Act;
(2) a report on the review by and recommendations of the Committee under subsection (c)(2) not later than 18 months after the date of enactment of this Act; and
(3) a report on the review by and recommendations of the Committee under subsection (c)(3) not later than 2 years after the date of enactment of this Act.
SEC. 315. SIMPLIFIED PAPERWORK REQUIREMENTS.
Section 9(v) of the Small Business Act (15 U.S.C. 638(v)) is amended--
(1) in the subsection heading, by striking "Simplified Reporting Requirements" and inserting "Reducing Paperwork and Compliance Burden";
(2) by striking "The Administrator" and inserting the following:
"(1) STANDARDIZATION OF REPORTING REQUIREMENTS.--The Administrator"; and
(3) by adding at the end the following:
"(2) SIMPLIFICATION OF APPLICATION AND AWARD PROCESS.--Not later than one year after the date of enactment of this paragraph, and after a period of public comment, the Administrator shall issue regulations or guidelines, taking into consideration the unique needs of each Federal agency, to ensure that each Federal agency 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 (including procedures relating to overhead rates for applicants and documentation requirements) to reduce the paperwork and regulatory compliance burden on small business concerns applying to and participating in the SBIR program or STTR program.".
SEC. 316. SUBCONTRACTOR NOTIFICATIONS.
Section 8(d) of the Small Business Act (15 U.S.C. 637(d)) is amended by adding at the end the following:
"(13) Notification requirement.--An offeror with respect to a contract let by a Federal agency that is to be awarded pursuant to the negotiated method of procurement that intends to identify a small business concern as a potential subcontractor in the offer relating to the contract shall notify the small business concern that the offeror intends to identify the small business concern as a potential subcontractor in the offer.
"(14) Reporting by subcontractors.--The Administrator shall establish a reporting mechanism that allows a subcontractor to report fraudulent activity by a contractor with respect to a subcontracting plan submitted to a procurement authority under paragraph (4)(B).".
TITLE IV--POLICY DIRECTIVES


SEC. 401. CONFORMING AMENDMENTS TO THE SBIR AND THE STTR POLICY DIRECTIVES.
(a) In General.--Not later than 180 days after the date of enactment of this Act, the Administrator shall promulgate amendments to the SBIR Policy Directive and the STTR Policy Directive to conform such directives to this Act and the amendments made by this Act.
(b) 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.
TITLE V--OTHER PROVISIONS


SEC. 501. RESEARCH TOPICS AND PROGRAM DIVERSIFICATION.
(a) SBIR Program.--Section 9(g) of the Small Business Act (15 U.S.C. 638(g)) is amended--
(1) in paragraph (3)--
(A) in the matter preceding subparagraph (A), by striking "broad research topics and to topics that further 1 or more critical technologies" and inserting "applications to the Federal agency for support of projects relating to nanotechnology, rare diseases, security, energy, transportation, or improving the security and quality of the water supply of the United States, and the efficiency of water delivery systems and usage patterns in the United States (including the territories of the United
States) through the use of technology (to the extent that the projects relate to the mission of the Federal agency), broad research topics, and topics that further 1 or more critical technologies or research priorities";
(B) in subparagraph (A), by striking "or" at the end; and
(C) by adding at the end the following:
"(C) the National Academy of Sciences, in the final report issued by the `America's Energy Future: Technology Opportunities, Risks, and Tradeoffs' project, and in any subsequent report by the National Academy of Sciences on sustainability, energy, or alternative fuels;
"(D) the National Institutes of Health, in the annual report on the rare diseases research activities of the National Institutes of Health for fiscal year 2005, and in any subsequent report by the National Institutes of Health on rare diseases research activities;
"(E) the National Academy of Sciences, in the final report issued by the `Transit Research and Development: Federal Role in the National Program' project and the report entitled `Transportation Research, Development and Technology Strategic Plan (2006-2010)' issued by the Research and Innovative Technology Administration of the Department of Transportation, and in any subsequent report issued by the National Academy of Sciences or the Department of Transportation on transportation and infrastructure;
or
"(F) the national nanotechnology strategic plan required under section 2(c)(4) of the 21st Century Nanotechnology Research and Development Act (15 U.S.C. 7501(c)(4)) and in any report issued by the National Science and Technology Council Committee on Technology that focuses on areas of nanotechnology identified in such plan;"; and
(2) by adding after paragraph (12), as added by section 111(a) of this Act, the following:
"(13) encourage applications under the SBIR program (to the extent that the projects relate to the mission of the Federal agency)--
"(A) from small business concerns in geographic areas underrepresented in the SBIR program or located in rural areas (as defined in section 1393(a)(2) of the Internal Revenue Code of 1986);
"(B) small business concerns owned and controlled by women;
"(C) small business concerns owned and controlled by veterans;
"(D) small business concerns owned and controlled by Native Americans; and
"(E) small business concerns located in a geographic area with an unemployment rates that exceed the national unemployment rate, based on the most recently available monthly publications of the Bureau of Labor Statistics of the Department of Labor.".
(b) STTR Program.--Section 9(o) of the Small Business Act (15 U.S.C. 638(o)), as amended by section 111(b) of this Act, is amended--
(1) in paragraph (3)--
(A) in the matter preceding subparagraph (A), by striking "broad research topics and to topics that further 1 or more critical technologies" and inserting "applications to the Federal agency for support of projects relating to nanotechnology, security, energy, rare diseases, transportation, or improving the security and quality of the water supply of the United States (to the extent that the projects relate to the mission of the Federal agency), broad research topics, and topics that further
1 or more critical technologies or research priorities";
(B) in subparagraph (A), by striking "or" at the end; and
(C) by adding at the end the following:
"(C) the National Academy of Sciences, in the final report issued by the `America's Energy Future: Technology Opportunities, Risks, and Tradeoffs' project, and in any subsequent report by the National Academy of Sciences on sustainability, energy, or alternative fuels;
"(D) the National Institutes of Health, in the annual report on the rare diseases research activities of the National Institutes of Health for fiscal year 2005, and in any subsequent report by the National Institutes of Health on rare diseases research activities;
"(E) the National Academy of Sciences, in the final report issued by the `Transit Research and Development: Federal Role in the National Program' project and the report entitled `Transportation Research, Development and Technology Strategic Plan (2006-2010)' issued by the Research and Innovative Technology Administration of the Department of Transportation, and in any subsequent report issued by the National Academy of Sciences or the Department of Transportation on transportation and infrastructure;
or
"(F) the national nanotechnology strategic plan required under section 2(c)(4) of the 21st Century Nanotechnology Research and Development Act (15 U.S.C. 7501(c)(4)) and in any report issued by the National Science and Technology Council Committee on Technology that focuses on areas of nanotechnology identified in such plan;";
(2) in paragraph (15), by striking "and" at the end;
(3) in paragraph (16), by striking the period at the end and inserting "; and"; and
(4) by adding at the end the following:
"(17) encourage applications under the STTR program (to the extent that the projects relate to the mission of the Federal agency)--
"(A) from small business concerns in geographic areas underrepresented in the STTR program or located in rural areas (as defined in section 1393(a)(2) of the Internal Revenue Code of 1986);
"(B) small business concerns owned and controlled by women;
"(C) small business concerns owned and controlled by veterans;
"(D) small business concerns owned and controlled by Native Americans; and
"(E) small business concerns located in a geographic area with an unemployment rates that exceed the national unemployment rate, based on the most recently available monthly publications of the Bureau of Labor Statistics of the Department of Labor.".
(c) Research and Development Focus.--Section 9(x) of the Small Business Act (15 U.S.C. 638(x)) is amended--
(1) by striking paragraph (2); and
(2) by redesignating paragraph (3) as paragraph (2).
SEC. 502. REPORT ON SBIR AND STTR PROGRAM GOALS.
Section 9 of the Small Business Act (15 U.S.C. 638), as amended by this Act, is amended by adding at the end the following:
"(ll) Annual Report on SBIR and STTR Program Goals.--
"(1) DEVELOPMENT OF METRICS.--The head of each Federal agency 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 that--
"(A) are science-based and statistically driven;
"(B) reflect the mission of the Federal agency; and
"(C) include factors relating to the economic impact of the programs, including the impact on production and manufacturing in the United States.


(As printed in the Congressional Record for the Senate on May 3, 2011.)