§ 638. — Research and development.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 15USC638]
TITLE 15--COMMERCE AND TRADE
CHAPTER 14A--AID TO SMALL BUSINESS
Sec. 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, 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; and \1\
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(4) to develop and maintain a source file and an information
program to assure each qualified and interested small business
concern the opportunity to participate in Federal agency small
business innovation research programs and small business technology
transfer programs;
(5) to coordinate with participating agencies 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; and
(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 and the
Administration's information and monitoring efforts related to the
SBIR and STTR programs, including the data on output and outcomes
collected pursuant to subsections (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 of the extent
to which Federal agencies are providing in a timely manner
information needed to maintain the database described in subsection
(k) of this section.
(c) Consultation and cooperation with Government agencies; studies and
recommendations
The Administration is authorized to consult and cooperate with all
Government agencies and to make studies and recommendations to such
agencies, and such agencies are authorized and directed to cooperate
with the Administration 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 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, 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 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
between small-business firms providing for a joint program of research
and development, if the Administrator finds that the joint program
proposed will maintain and strengthen the free enterprise system and the
economy of the Nation. The Administrator or the Attorney General may at
any time withdraw his approval of the agreement and the joint program of
research and development covered thereby, if he finds that the agreement
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 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
approved by the Administrator under this subsection, shall be construed
to be within the prohibitions of the antitrust laws or the Federal Trade
Commission Act [15 U.S.C. 41 et seq.]. Upon publication in the Federal
Register of the notice of withdrawal of his approval of the agreement
granted under this subsection, either by the Administrator 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 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 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 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'' means an executive agency as
defined in section 105 of title 5 or a military department as
defined in section 102 of such title, except that it does not
include any agency 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'' means any contract, grant, or
cooperative agreement entered into between any Federal agency 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's
research or research and development effort is reserved for award to
small business concerns 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), submitted pursuant to SBIR program
solicitations;
(B) a second phase, to 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'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--
(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 scientific review criteria;
(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, 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's
extramural research or research and development effort is reserved
for award to small business concerns 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, to further develop proposed ideas to
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--
(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 and a research institution in which not less than
40 percent of the work is performed by the small business concern,
and not less than 30 percent of the work is performed by the
research institution; and
(8) the term ``research institution'' means a nonprofit
institution, as defined in section 3703(5) 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 421(c)(1) \2\ of title 41 (or any successor
regulation thereto).
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(f) Federal agency expenditures for SBIR program
(1) Required expenditure amounts
Each Federal agency 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--
(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; and
(C) not less than 2.5 percent of such budget in 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 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 of meeting the
requirements of paragraph (1) an amount of its extramural budget
for basic research which exceeds the percentages specified in
paragraph (1).
(3) Exclusion of certain funding agreements
Funding agreements with small business concerns 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).
(g) Administration of small business innovation research programs by
Federal agencies required to establish such programs
Each Federal agency required by subsection (f) of this section 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;
(3) unilaterally determine research topics within the agency'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 \3\ of
title 42, and in subsequent reports issued under that authority;
or
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(B) the Secretary of Defense, in the 1992 report issued in
accordance with section 2522 \3\ of title 10, and in subsequent
reports issued under that authority;
(4) unilaterally receive and evaluate proposals resulting from
SBIR proposals;
(5) subject to subsection (l) of this section, unilaterally
select awardees for its SBIR funding agreements 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;
(6) administer its own SBIR funding agreements (or delegate such
administration to another agency);
(7) make payments to recipients of SBIR funding agreements on
the basis of progress toward or completion of the funding agreement
requirements 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;
(8) make an annual report on the SBIR program to the Small
Business Administration and the Office of Science and Technology
Policy;
(9) include, as part of its annual performance plan as required
by subsections (a) and (b) of section 1115 of title 31, a section on
its SBIR program, 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; and
(10) 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.
(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) of this section,
each Federal agency 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 for research or research and
development to small business concerns, and no goal established under
this subsection shall be less than the percentage of the agency's
research or research and development budget expended under funding
agreements with small business concerns in the immediately preceding
fiscal year.
(i) Annual reporting
(1) In general
Each Federal agency required by this section to have an SBIR
program or to establish goals shall report annually to the Small
Business Administration the number of awards pursuant to grants,
contracts, or cooperative agreements 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.
(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 required by this
section to have an SBIR program, the Federal agency shall submit
to the Administrator a report, which shall include a description
of the methodology used for calculating the amount of the
extramural budget of that Federal agency.
(B) Administrator's analysis
The Administrator shall include an analysis of the
methodology received from each Federal agency referred to in
subparagraph (A) in the report required by subsection (b)(7) of
this section.
(j) Small Business Administration policy directives for the general
conduct of small business innovation research programs
(1) Policy directives
The Small Business Administration, after consultation with the
Administrator 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 two 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; (vi) transfer of title to
property provided by the agency to the small business concern if
such a transfer would be more cost effective than recovery of
the property by the agency; (vii) cost sharing; and (viii) cost
principles and payment schedules;
(C) exemptions from the regulations under paragraph (2) \4\
if national security or intelligence functions clearly would be
jeopardized;
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(D) minimizing regulatory burden associated with
participation in the SBIR program for the small business concern
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 and the
Office of Science and Technology Policy;
(F) standardized and orderly withdrawal from program
participation by an agency having a SBIR program; at the
discretion of the Administration, such directives may require a
phased withdrawal over a period of time sufficient in duration
to minimize any adverse impact on small business concerns; and
(G) the voluntary participation in a SBIR program by a
Federal agency not required to establish such a program pursuant
to subsection (f) of this section.
(2) Modifications
Not later than 90 days after October 28, 1992, the Administrator
shall modify the policy directives issued pursuant to this
subsection to provide for--
(A) retention by a small business concern 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 participating
in the third phase of the SBIR program, as a directed bailment,
of any property transferred by a Federal agency to the small
business concern in the second phase of an SBIR program for a
period of not less than 2 years, beginning on the initial date
of the concern's participation in the third phase of such
program;
(C) procedures to ensure, to the extent practicable, that an
agency which intends to pursue research, development, or
production of a technology developed by a small business concern
under an SBIR program enters into follow-on, non-SBIR funding
agreements with the small business concern for such research,
development, or production;
(D) an increase to $100,000 in the amount of funds which an
agency may award in the first phase of an SBIR program, and to
$750,000 in the second phase of an SBIR program, and an
adjustment of such amounts once every 5 years to reflect
economic adjustments and programmatic considerations;
(E) a process for notifying the participating SBIR agencies
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 \5\ of title 42;
or
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(ii) by the Secretary of Defense, in accordance with
section 2522 \5\ of title 10;
(F) enhanced outreach efforts to increase the participation
of socially and economically disadvantaged small business
concerns, as defined in section 637(a)(4) of this title, and the
participation of small businesses that are 51 percent owned and
controlled by women in technological innovation and in SBIR
programs, including the third phase of such programs, and the
collection of data to document such participation;
(G) technical and programmatic guidance to encourage
agencies to develop gap-funding programs to address the delay
between an award for the first phase of an SBIR program and the
application for and extension of an award for the second phase
of such program;
(H) procedures to ensure that a small business concern that
submits a proposal for a funding agreement for the first phase
of an SBIR program and that has received more than 15 second
phase SBIR awards during the preceding 5 fiscal years is able to
demonstrate the extent to which it was able to secure third
phase funding to develop concepts resulting from previous second
phase SBIR awards; and
(I) procedures to ensure that agencies participating in the
SBIR program retain the information submitted under subparagraph
(H) at least until the General Accounting 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 shall modify the policy directives issued pursuant to
this subsection--
(A) to clarify that the rights provided for under paragraph
(2)(A) apply to all Federal funding awards under this section,
including the first phase (as described in subsection (e)(4)(A)
of this section), the second phase (as described in subsection
(e)(4)(B) of this section), and the third phase (as described in
subsection (e)(4)(C) of this section);
(B) to provide for the requirement of a succinct
commercialization plan with each application for a second phase
award that is moving toward commercialization;
(C) to require agencies to report to the Administration, not
less frequently than annually, all instances in which an agency
pursued research, development, or production of a technology
developed by a small business concern using an award made under
the SBIR program of that agency, and determined that it was not
practicable to enter into a follow-on non-SBIR program funding
agreement with the small business concern, which report shall
include, at a minimum--
(i) the reasons why the follow-on funding agreement with
the small business concern was not practicable;
(ii) the identity of the entity with which the agency
contracted to perform the research, development, or
production; and
(iii) a description of the type of funding agreement
under which the research, development, or production was
obtained; and
(D) to implement subsection (v) of this section, including
establishing standardized procedures for the provision of
information pursuant to subsection (k)(3) of this section.
(k) Database
(1) Public database
Not later than 180 days after December 21, 2000, the
Administrator 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, of each small business concern
that has received a first phase or second phase SBIR or STTR
award from a Federal agency;
(B) a description of each first phase or second phase SBIR
or STTR award received by that small business concern,
including--
(i) an abstract of the project funded by the award,
excluding any proprietary information so identified by the
small business concern;
(ii) the Federal agency 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; and
(E) with respect to assistance under the STTR program only--
(i) whether the small business concern or the research
institution initiated their collaboration on each assisted
STTR project;
(ii) whether the small business concern 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 between the small business concern 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 and the research institution.
(2) Government database
Not later than 180 days after December 21, 2000, the
Administrator, in consultation with Federal agencies required to
have an SBIR program pursuant to subsection (f)(1) of this section
or an STTR program pursuant to subsection (n)(1) of this section,
shall develop and maintain a database to be used exclusively for
SBIR and STTR program evaluation that--
(A) contains for each second phase award made by a Federal
agency--
(i) information collected in accordance with paragraph
(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) on additional investment from any source, other than
first phase or second phase 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, in conjunction with the
SBIR and STTR program managers of Federal agencies,
considers relevant and appropriate;
(B) includes any narrative information that a small business
concern receiving a second phase award voluntarily submits to
further describe the outputs and outcomes of its awards;
(C) includes for each applicant for a first phase or second
phase 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;
(D) includes any other data collected by or available to any
Federal agency that such agency considers may be useful for SBIR
or STTR program evaluation; and
(E) is available for use solely for program evaluation
purposes by the Federal Government or, in accordance with policy
directives issued by the Administration, by other authorized
persons who are subject to a use and nondisclosure agreement
with the Federal Government covering the use of the database.
(3) Updating information for database
(A) In general
A small business concern applying for a second phase award
under this section shall be required to update information in
the database established under this subsection for any prior
second phase award received by that small business concern. In
complying with this paragraph, a small business concern may
apportion sales or additional investment information relating to
more than one second phase award among those awards, if it notes
the apportionment for each award.
(B) Annual updates upon termination
A small business concern receiving a second phase 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.
(4) Protection of information
Information provided under paragraph (2) shall be considered
privileged and confidential and not subject to disclosure pursuant
to section 552 of title 5.
(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.
(l) Reporting of awards made from single proposal, to multiple award
winners, or to critical technology topics
(1) Single proposal
If a Federal agency required to establish an SBIR program under
subsection (f) of this section makes an award with respect to an
SBIR solicitation topic or subtopic for which the agency received
only 1 proposal, the agency shall provide written justification for
making the award in its next quarterly report to the Administration
and in the agency's next annual report required under subsection
(g)(8) of this section.
(2) Multiple awards
An agency referred to in paragraph (1) shall include in its next
annual report required under subsection (g)(8) of this section an
accounting of the awards the agency has made for the first phase of
an SBIR program during the reporting period to entities that have
received more than 15 awards for the second phase of an SBIR program
during the preceding 5 fiscal years.
(3) Critical technology awards
An agency referred to in paragraph (1) shall include in its next
annual report required under subsection (g)(8) of this section, an
accounting of the number of awards it has made to critical
technology topics, as defined in subsection (g)(3) of this section,
including an identification of the specific critical technologies
topics, and the percentage by number and dollar amount of the
agency'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, 2008.
(n) Required expenditures for STTR by Federal agencies
(1) Required expenditure amounts
(A) In general
With respect to each fiscal year through fiscal year 2009,
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, shall expend with small business concerns not
less than the percentage of that extramural budget specified in
subparagraph (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 in accordance with subparagraph (A) shall
be--
(i) 0.15 percent for each fiscal year through fiscal
year 2003; and
(ii) 0.3 percent for fiscal year 2004 and each fiscal
year thereafter.
(2) Limitations
A Federal agency shall not--
(A) use any of its STTR budget established pursuant to
paragraph (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 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 421(c)(1) of title 41); or
(B) make available for the purpose of meeting the
requirements of paragraph (1) an amount of its extramural budget
for basic research which exceeds the percentage specified in
paragraph (1).
(3) Exclusion of certain funding agreements
Funding agreements with small business concerns 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).
(o) Federal agency STTR authority
Each Federal agency required to establish an STTR program in
accordance with subsection (n) of this section 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;
(3) unilaterally determine research topics within the agency'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 \6\ of title
42; or
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(B) by the Secretary of Defense, in accordance with section
2522 \6\ of title 10;
(4) unilaterally receive and evaluate proposals resulting from
STTR solicitations;
(5) unilaterally select awardees for its STTR funding agreements
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;
(6) administer its own STTR funding agreements (or delegate such
administration to another agency);
(7) make payments to recipients of STTR funding agreements on
the basis of progress toward or completion of the funding agreement
requirements 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 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, a section on
its STTR program, 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 such data from awardees as is necessary to assess
STTR program outputs and outcomes;
(10) submit an annual report on the STTR program to the
Administration and the Office of Science and Technology Policy;
(11) adopt the agreement developed by the Administrator under
subsection (w) of this section as the agency's model agreement for
allocating between small business concerns 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) of this section) that participate in
STTR agreements--
(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 or private access to STTR agency
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's record of successfully
commercializing STTR or other research;
(B) the existence of second phase funding commitments from
private sector or non-STTR funding sources;
(C) the existence of third phase 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 for the purpose of enhancing its STTR
program, in conjunction with any such outreach done for purposes of
the SBIR program; and
(15) 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.
(p) STTR policy directive
(1) Issuance
The Administrator 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 required by
subsection (n) of this section 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) 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 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, as a
directed bailment, of any property transferred by a Federal
agency to the small business concern in the second phase of
the STTR program for a period of not less than 2 years,
beginning on the initial date of the concern's participation
in the third phase of such program;
(vii) cost sharing;
(viii) cost principles and payment schedules; and
(ix) 1-year awards for the first phase of an STTR
program, generally not to exceed $100,000, and 2-year awards
for the second phase of an STTR program, generally not to
exceed $500,000, greater or lesser amounts to be awarded at
the discretion of the awarding agency;
(C) minimizing regulatory burdens associated with
participation in STTR programs;
(D) guidelines for a model agreement, to be used by all
agencies, for allocating between small business concerns 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, as defined in section 632 of this title and the
regulations promulgated thereunder; and
(ii) such small business concern exercises management
and control of the performance of the STTR funding agreement
pursuant to a business plan providing for the
commercialization of the technology that is the subject
matter of the award; and
(F) procedures to ensure, to the extent practicable, that an
agency which intends to pursue research, development, or
production of a technology developed by a small business concern
under an STTR program enters into follow-on, non-STTR funding
agreements with the small business concern for such research,
development, or production.
(3) Modifications
Not later than 120 days after October 15, 2001, the
Administrator shall modify the policy directive issued pursuant to
this subsection to clarify that the rights provided for under
paragraph (2)(B)(v) apply to all Federal funding awards under this
section, including the first phase (as described in subsection
(e)(6)(A) of this section), the second phase (as described in
subsection (e)(6)(B) of this section), and the third phase (as
described in subsection (e)(6)(C) of this section).
(q) Discretionary technical assistance
(1) In general
Each Federal agency required by this section to conduct an SBIR
program may enter into an agreement with a vendor selected under
paragraph (2) to provide small business concerns engaged in SBIR
projects with technical assistance services, such as access to a
network of scientists and engineers engaged in a wide range of
technologies, or access to technical and business literature
available through on-line data bases, for the purpose of assisting
such concerns 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; and
(D) developing and commercializing new commercial products
and processes resulting from such projects.
(2) Vendor selection
Each agency may select a vendor to assist small business
concerns to meet the goals listed in paragraph (1) for a term not to
exceed 3 years. Such selection shall be competitive and shall
utilize merit-based criteria.
(3) Additional technical assistance
(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.
(r) Third phase agreements
(1) In general
In the case of a small business concern that is awarded a
funding agreement for the second phase of an SBIR or STTR program, a
Federal agency may enter into a third phase agreement with that
business concern for additional work to be performed during or after
the second phase period. The second phase funding agreement with the
small business concern may, at the discretion of the agency awarding
the agreement, set out the procedures applicable to third phase
agreements with that agency or any other agency.
(2) ``Third phase agreement'' defined
In this subsection, the term ``third phase agreement'' means a
follow-on, non-SBIR or non-STTR funded contract as described in
paragraph (4)(C) or paragraph (6)(C) of subsection (e) of this
section.
(3) Intellectual property rights
Each funding agreement under an SBIR or STTR program shall
include provisions setting forth the respective rights of the United
States and the small business concern with respect to intellectual
property rights and with respect to any right to carry out follow-on
research.
(s) Outreach
(1) ``Eligible State'' defined
In this subsection, the term ``eligible State'' means a State--
(A) if the total value of contracts awarded to the State
during fiscal year 1995 under this section was less than
$5,000,000; and
(B) that certifies to the Administration described in
paragraph (2) that the State will, upon receipt of assistance
under this subsection, provide matching funds from non-Federal
sources in an amount that is not less than 50 percent of the
amount provided under this subsection.
(2) Program authority
Of amounts made available to carry out this section for each of
the fiscal years 2000 through 2005, the Administrator may expend
with eligible States not more than $2,000,000 in each such fiscal
year in order to increase the participation of small business
concerns located in those States in the programs under this section.
(3) Amount of assistance
The amount of assistance provided to an eligible State under
this subsection in any fiscal year--
(A) shall be equal to twice the total amount of matching
funds from non-Federal sources provided by the State; and
(B) shall not exceed $100,000.
(4) Use of assistance
Assistance provided to an eligible State under this subsection
shall be used by the State, in consultation with State and local
departments and agencies, for programs and activities to increase
the participation of small business concerns located in the State in
the programs under this section, including--
(A) the establishment of quantifiable performance goals,
including goals relating to--
(i) the number of program awards under this section made
to small business concerns in the State; and
(ii) the total amount of Federal research and
development contracts awarded to small business concerns in
the State;
(B) the provision of competition outreach support to small
business concerns in the State that are involved in research and
development; and
(C) the development and dissemination of educational and
promotional information relating to the programs under this
section to small business concerns in the State.
(t) Inclusion in strategic plans
Program information relating to the SBIR and STTR programs shall be
included by each Federal agency in any update or revision required of
the Federal agency under section 306(b) of title 5.
(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;
(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;
(E) the Experimental Program to Stimulate Competitive
Research of the National Aeronautics and Space Administration;
(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 that is subject to subsection (f) of this
section 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 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 that is eligible to participate in that
program; or
(ii) a State described in paragraph (3); or
(B) any proposal for the first phase 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 located in--
(i) a State that is eligible to participate in a
technology development program; or
(ii) a State described in paragraph (3).
(3) Additionally eligible State
A State referred to in subparagraph (A)(ii) or (B)(ii) of
paragraph (2) is a State in which the total value of contracts
awarded to small business concerns under all SBIR 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 2000, based on the
most recent statistics compiled by the Administrator.
(v) Simplified reporting requirements
The Administrator shall work with the Federal agencies 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 and
awardees, including data for inclusion in the database under subsection
(k) of this section, taking into consideration the unique needs of each
agency, 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.
(w) STTR model agreement for intellectual property rights
(1) In general
The Administrator shall promulgate regulations establishing a
single model agreement for use in the STTR program that allocates
between small business concerns 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), the
Administrator shall provide to affected agencies, small business
concerns, research institutions, and other interested parties the
opportunity to submit written comments.
(Pub. L. 85-536, Sec. 2[9], July 18, 1958, 72 Stat. 391; Pub. L. 97-219,
Secs. 3-5, July 22, 1982, 96 Stat. 217, 218, 221; Pub. L. 99-443,
Secs. 1, 2, Oct. 6, 1986, 100 Stat. 1120; Pub. L. 100-590, title I,
Sec. 108, Nov. 3, 1988, 102 Stat. 2994; Pub. L. 102-484, div. D, title
XLII, Sec. 4237(d), Oct. 23, 1992, 106 Stat. 2692; Pub. L. 102-564,
title I, Secs. 103, 104, title II, Sec. 202(a)-(c), title III,
Secs. 301(a), 305, Oct. 28, 1992, 106 Stat. 4250, 4254, 4256, 4257,
4261, 4262; Pub. L. 103-403, title VI, Sec. 607, Oct. 22, 1994, 108
Stat. 4204; Pub. L. 104-208, div. D, title I, Sec. 110, Sept. 30, 1996,
110 Stat. 3009-733; Pub. L. 105-135, title V, Sec. 501, Dec. 2, 1997,
111 Stat. 2620; Pub. L. 106-113, div. B, Sec. 1000(a)(9) [title IV,
Sec. 4732(b)(5)], Nov. 29, 1999, 113 Stat. 1536, 1501A-583; Pub. L. 106-
554, Sec. 1(a)(9) [title I, Secs. 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, Secs. 2, 3(a), 4-7, Oct. 15, 2001, 115 Stat.
263-265.)
Amendment of Subsection (p)(2)(B)(ix)
Pub. L. 107-50, Sec. 3, Oct. 15, 2001, 115 Stat. 263, provided
that, effective beginning in fiscal year 2004, subsection
(p)(2)(B)(ix) of this section is amended by striking ``$500,000''
and inserting ``$750,000'' and by inserting before the semicolon at
the end the following: ``, and shorter or longer periods of time to
be approved at the discretion of the awarding agency where
appropriate for a particular project''.
Repeal of Subsection (s)
Pub. L. 105-135, title V, Sec. 501(b)(2), Dec. 2, 1997, 111
Stat. 2622, as amended, provided that, effective October 1, 2005,
subsection (s) of this section is repealed.
References in Text
The antitrust laws, referred to in subsec. (d)(3), are classified
generally to chapter 1 (Sec. 1 et seq.) of this title.
The Federal Trade Commission Act, referred to in subsec. (d)(3), is
act Sept. 26, 1914, ch. 311, 38 Stat. 717, as amended, which is
classified generally to subchapter I (Sec. 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 401 of Title 50, War and National Defense.
Section 421(c)(1) of title 41, referred to in subsec. (e)(8), was in
the original ``section 35(c)(1) of the Office of Federal Procurement
Policy Act'' which has been translated as meaning section 25(c)(1) of
that Act to reflect the probable intent of Congress because that Act
does not contain a section 35 and section 25(c) of that Act relates to
issuance of the Federal Acquisition Regulation.
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, Secs. 4202(a),
4232(a), Oct. 23, 1992, 106 Stat. 2659, 2687, and subsequently repealed.
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, which is set out below.
Codification
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
2001--Subsec. (b)(4). Pub. L. 107-50, Sec. 2(b), struck out
``pilot'' before ``programs;''.
Subsec. (b)(7). Pub. L. 107-50, Sec. 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, Sec. 2(b), struck out ``pilot''
before ``program'' in introductory provisions.
Subsec. (k)(1). Pub. L. 107-50, Sec. 6(b)(1), inserted ``or STTR''
after ``SBIR'' in subpars. (A) to (C) and added subpar. (E).
Subsec. (k)(2). Pub. L. 107-50, Sec. 6(b)(2)(A), (B), in
introductory provisions, inserted ``or an STTR program pursuant to
subsection (n)(1) of this section'' after ``(f)(1) of this section'' and
substituted ``exclusively for SBIR and STTR'' for ``solely for SBIR''.
Subsec. (k)(2)(A)(iii). Pub. L. 107-50, Sec. 6(b)(2)(C), inserted
``and STTR'' after ``SBIR''.
Subsec. (k)(2)(D). Pub. L. 107-50, Sec. 6(b)(2)(D), inserted ``or
STTR'' after ``SBIR''.
Subsec. (n)(1). Pub. L. 107-50, Sec. 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, Sec. 7(b), substituted ``adopt the
agreement developed by the Administrator under subsection (w) of this
section 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, Sec. 4, added par. (14).
Subsec. (o)(15). Pub. L. 107-50, Sec. 6(a), added par. (15).
Subsec. (p)(3). Pub. L. 107-50, Sec. 5, added par. (3).
Subsec. (v). Pub. L. 107-50, Sec. 6(c), inserted ``or STTR'' after
``SBIR'' in two places.
Subsec. (w). Pub. L. 107-50, Sec. 7(a), added subsec. (w).
2000--Subsec. (b)(7). Pub. L. 106-554, Sec. 1(a)(9) [title I,
Sec. 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) of this section''.
Pub. L. 106-554, Sec. 1(a)(9) [title I, Sec. 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, Sec. 1(a)(9) [title I,
Sec. 105], substituted ``; or'' for ``; and'' at end.
Subsec. (g)(9). Pub. L. 106-554, Sec. 1(a)(9) [title I, Sec. 106],
added par. (9).
Subsec. (g)(10). Pub. L. 106-554, Sec. 1(a)(9) [title I,
Sec. 107(a)], added par. (10).
Subsec. (i). Pub. L. 106-554, Sec. 1(a)(9) [title I, Sec. 109],
inserted subsec. heading, designated existing provisions as par. (1),
inserted par. heading, and added par. (2).
Subsec. (j)(3). Pub. L. 106-554, Sec. 1(a)(9) [title I, Sec. 110],
added par. (3).
Subsec. (k). Pub. L. 106-554, Sec. 1(a)(9) [title I, Sec. 107(c)],
amended subsec. (k) generally, substituting present provisions for
provisions which read ``(k) [Reserved]''.
Subsec. (m). Pub. L. 106-554, Sec. 1(a)(9) [title I, Sec. 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, Sec. 1(a)(9) [title I,
Sec. 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, Sec. 1(a)(9) [title I, Sec. 111(c)],
added subsec. (u).
Subsec. (v). Pub. L. 106-554, Sec. 1(a)(9) [title I, Sec. 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, Sec. 501(b)(1)(B),
substituted ``subparagraph (B)'' for ``subparagraph (B)(ii)''.
Subsec. (n)(1). Pub. L. 105-135, Sec. 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, Sec. 501(b)(1)(A), added
pars. (8) and (9) and redesignated former pars. (8) to (11) as (10) to
(13), respectively.
Subsecs. (s), (t). Pub. L. 105-135, Sec. 501(b)(1)(C), added
subsecs. (s) and (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, Sec. 202(a)(1), inserted
before semicolon at end ``and small business technology transfer pilot
programs''.
Subsec. (b)(5) to (7). Pub. L. 102-564, Sec. 202(a)(2), inserted
``and STTR'' after ``SBIR'' wherever appearing.
Subsec. (e)(1). Pub. L. 102-564, Sec. 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, Sec. 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, Sec. 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, Sec. 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, Sec. 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, Sec. 202(b), added pars. (6)
to (8).
Subsec. (f). Pub. L. 102-564, Sec. 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, Sec. 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, Sec. 103(d), added par. (3)
and redesignated former par. (3) as (4). Former par. (4) redesignated
(5).
Subsec. (g)(5). Pub. L. 102-564, Sec. 103(d)(1), (h)(2), (i),
redesignated par. (4) as (5) and inserted ``subject to subsection (l) of
this section,'' 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, Sec. 103(d)(1), redesignated par.
(5) as (6). Former par. (6) redesignated (7).
Subsec. (g)(7). Pub. L. 102-564, Sec. 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, Sec. 103(d)(1), redesignated par.
(7) as (8).
Subsec. (j). Pub. L. 102-564, Sec. 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, Sec. 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, Sec. 103(h)(1), added subsec. (l).
Subsec. (m). Pub. L. 102-564, Sec. 104(b), added subsec. (m).
Subsecs. (n) to (p). Pub. L. 102-564, Sec. 202(c), added subsecs.
(n) to (p).
Subsec. (q). Pub. L. 102-564, Sec. 301(a), added subsec. (q).
Subsec. (r). Pub. L. 102-564, Sec. 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, Sec. 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, Sec. 3, added pars. (4)
to (7).
Subsecs. (e) to (k). Pub. L. 97-219, Sec. 4, added subsecs. (e) to
(k).
Effective Date of 2001 Amendment
Pub. L. 107-50, Sec. 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, Sec. 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.
Section 501(b)(2) of Pub. L. 105-135, as amended by Pub. L. 106-554,
Sec. 1(a)(9) [title I, Sec. 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
Section 5 of Pub. L. 97-219, as amended by Pub. L. 99-443, Sec. 2,
Oct. 6, 1986, 100 Stat. 1120; Pub. L. 102-484, div. D, title XLII,
Sec. 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, Sec. 104(a), Oct. 28, 1992, 106 Stat. 4254.
Continuation of SBIR Program Beyond Termination Date
Pub. L. 106-554, Sec. 1(a)(4) [div. B, title I, Sec. 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, Sec. 1(a)(9) [title I, Sec. 102], Dec. 21, 2000,
114 Stat. 2763, 2763A-668, provided that: ``Congress finds that--
``(1) 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;
``(2) 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;
``(3) 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;
``(4) 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
``(5) 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, Sec. 1(a)(9) [title I, Sec. 108], Dec. 21, 2000,
114 Stat. 2763, 2763A-671, provided that:
``(a) 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--
``(1) 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) 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;
``(B) 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;
``(C) an evaluation of the noneconomic benefits achieved by
the SBIR program over the life of the program;
``(D) 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
``(E) 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
``(2) make recommendations with respect to--
``(A) 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;
``(B) 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;
``(C) 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;
``(D) how to increase the use by the Federal Government in
its programs and procurements of technology-oriented small
businesses; and
``(E) improvements to the SBIR program, if any are
considered appropriate.
``(b) Participation by Small Business.--
``(1) 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--
``(A) in any panel established by the National Research
Council for the purpose of performing the study conducted under
this section; and
``(B) among those who are asked by the National Research
Council to peer review the study.
``(2) 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.
``(c) Progress Reports.--The National Research Council shall provide
semiannual progress reports on the study conducted under this section to
the Committee on Science and the Committee on Small Business of the
House of Representatives, and to the Committee on Small Business of the
Senate.
``(d) 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 and the Committee on Small Business of the
House of Representatives, and to the Committee on Small Business of the
Senate--
``(1) 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
``(2) not later than 6 years after that date of the enactment,
an update of such report.''
Congressional Findings and Purposes: Small Business Research and
Development Enhancement Act of 1992
Section 102 of title I of Pub. L. 102-564 provided that:
``(a) Findings.--The Congress finds that--
``(1) 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;
``(2) the small business innovation research program has been an
effective catalyst for the development of technological innovations
by small business concerns;
``(3) small business innovation research program participants
have provided high quality research and development in a cost-
effective manner;
``(4) 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;
``(5) 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;
``(6) 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;
``(7) the small business innovation research program has also
helped to increase exports from small business concerns;
``(8) 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
``(9) 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.
``(b) Purposes.--The purposes of this title [see Short Title of 1992
Amendments note set out under section 631 of this title] are--
``(1) to expand and improve the small business innovation
research program;
``(2) to emphasize the program's goal of increasing private
sector commercialization of technology developed through Federal
research and development;
``(3) to increase small business participation in Federal
research and development; and
``(4) 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
Section 106 of Pub. L. 102-564 provided that: ``Not later than March
31, 1996, the Secretary of Defense shall submit a recommendation to the
Congress addressing whether there has been a demonstrable reduction in
the quality of research performed under the SBIR program since the
beginning of fiscal year 1993, such that increasing the percentage under
section 9(f)(1)(C) of the Small Business Act [15 U.S.C. 638(f)(1)(C)]
(as amended by section 103 of this Act) would adversely affect the
performance of the research programs of the Department of Defense.''
Timing of Issuance of Policy Directive
Section 202(d) of Pub. L. 102-564 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--
``(1) in proposed form (with an opportunity for public comment
of not less than 30 days), not later than April 30, 1993; and
``(2) in final form, not later than July 31, 1993.''
Sense of Congress Concerning American-Made Equipment and Products
Section 306 of Pub. L. 102-564 provided that:
``(a) 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.
``(b) 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
Section 4237 of Pub. L. 102-484 provided that:
``(a) Extension of Program.--[Amended section 5 of Pub. L. 97-219,
set out as a note above.]
``(b) 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--
``(1) in phase I under the program may not exceed $100,000; and
``(2) in phase II under the program may not exceed $750,000.
``(c) 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.
``(d) Repeal of Exclusion of Certain Activities.--[Amended this
section.]
``(e) Percentage of Required Expenditures for SBIR Contracts.--(1)
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).
``(2)(A) 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.
``(B) 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).
``(C) 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).
``(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.
``(E) The results of each determination under subparagraph (C) shall
be transmitted to the Congress not later than June 30, 1996.
``(f) Definitions.--In this section:
``(1) 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):
``(A) Paragraphs (4) through (7) of subsection (b).
``(B) Subsections (e) through (k).
``(2) 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.
``(3) 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.
``(4) 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.
``(g) 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.
``(h) Effectiveness of Section Conditional on Failure to Enact Other
Legislation.--(1) 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.
``(2)(A) 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--
``(i) this section shall cease to be effective; and
``(ii) 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.
``(B) For the purposes of subparagraph (A)(ii), a provision of law
referred to in this subparagraph is the following:
``(i) A provision of this Act other than a provision of this
section.
``(ii) 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.
``(C) In this paragraph, the term `small business law' means--
``(i) the Small Business Act (15 U.S.C. 631 et seq.); and
``(ii) 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, Sec. 101(a) [title VI, Sec. 630], Oct. 18, 1986, 100
Stat. 1783, 1783-30, and Pub. L. 99-591, Sec. 101(a) [title VI,
Sec. 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
Section 2 of Pub. L. 97-219 provided that:
``(a) The Congress finds that--
``(1) 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;
``(2) 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
``(3) 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.
``(b) Therefore, the purposes of the Act [amending this section]
are--
``(1) to stimulate technological innovation;
``(2) to use small business to meet Federal research and
development needs;
``(3) to foster and encourage participation by minority and
disadvantaged persons in technological innovation; and
``(4) to increase private sector commercialization innovations
derived from Federal research and development.''
Reports of Comptroller General
Section 105 of title I of Pub. L. 102-564 provided that:
``(a) Interim Report.--
``(1) In general.--The Comptroller General of the United States
shall submit to the Congress an interim report concerning the
quality of research performed under SBIR program funding agreements
entered into during fiscal year 1993 and thereafter. Copies of the
interim report shall be furnished to each agency that has
participated in the SBIR program in fiscal year 1993 or thereafter.
``(2) Contents of report.--The Comptroller General shall include
in the interim report required under paragraph (1)--
``(A) an assessment of the quality of the research performed
under the SBIR program funding agreements entered into by each
agency that has participated in the SBIR program beginning in
fiscal year 1993 or thereafter, specifically addressing--
``(i) with respect to each such agency, whether or not
there has been a demonstrable reduction in research quality;
and
``(ii) in the case of such reduction, whether an
increase in each such agency's required SBIR participation
in accordance with section 9(f)(1) of the Small Business Act
[15 U.S.C. 638(f)(1)] (as amended by subsection (b) of this
section [probably should be section 103(b) of this Act])
would adversely affect the performance of the agency's
research programs;
``(B) an analysis of the program authorized by section 301
of the Small Business Research and Development Enhancement Act
of 1992 [amending this section], considering, among other
things--
``(i) the extent to which each SBIR agency has
implemented the program and the extent to which the program
has improved the quality of agency-sponsored research and
development;
``(ii) the effect of the program on recipient companies'
ability to develop and commercialize technology;
``(iii) the cost of the program and the average cost per
recipient company; and
``(iv) the extent to which SBIR companies continue to
use the service after completion of the program; and
``(C) such other factors as the Comptroller General may deem
appropriate.
``(b) Final Report.--The Comptroller General of the United States
shall transmit to the Congress a final report containing--
``(1) a review of the progress made by Federal agencies in
meeting the requirements of section 9(f) of the Small Business Act
[15 U.S.C. 638(f)] (as amended by this Act), including increases in
expenditures required by that subsection;
``(2) an analysis of participation by small business concerns in
the third phase of SBIR programs, including a systematic evaluation
of the techniques adopted by Federal agencies to foster
commercialization;
``(3) an analysis of the extent to which awards under SBIR
programs are made pursuant to section 9(l) of the Small Business Act
(as added by section 103(h)) in cases in which a program
solicitation receives only 1 proposal;
``(4) an analysis of the extent to which awards in the first
phase of the SBIR program are made to small business concerns that
have received more than 15 second phase awards under the SBIR
program in the preceding 5 fiscal years, considering--
``(A) the extent to which such concerns were able to secure
Federal or private sector follow-on funding;
``(B) the extent to which the research developed under such
awards was commercialized; and
``(C) the amount of commercialization of research developed
under such awards, as compared to the amount of
commercialization of SBIR research for the entire SBIR program;
``(5) the results of periodic random audits of the extramural
budget of each such Federal agency;
``(6) a review of the extent to which the purposes of this title
[see Short Title of 1992 Amendments note set out under section 631
of this title] and the Small Business Innovation Development Act of
1982 [see Short Title of 1982 Amendment note set out under section
631 of this title] have been met with regard to fostering and
encouraging the participation of women-owned small business concerns
and socially and economically disadvantaged small business concerns
(as defined in the Small Business Act [15 U.S.C. 631 et seq.]) in
technological innovation, in general, and the SBIR program, in
particular;
``(7) an analysis of the effectiveness of the SBIR program in
promoting the development of the critical technologies identified by
the Secretary of Defense and the National Critical Technologies
Panel (or its successor), as described in subparagraph 9(j)(2)(E) of
the Small Business Act;
``(8) an analysis of the impact of agency application review
periods and funding cycles on SBIR program awardees' financial
status and ability to commercialize; and
``(9) recommendations to the Congress for tracking the extent to
which foreign firms, or United States firms with substantial foreign
ownership interests, benefit from technology or products developed
as a direct result of SBIR research or research and development.
``(c) Dates of Submission.--The report required--
``(1) under subsection (a), shall be submitted to the Congress
not later than March 31, 1995; and
``(2) under subsection (b), shall be submitted to the Congress
not later than 5 years after the date of enactment of this title
[Oct. 28, 1992].''
Section 202(e) of Pub. L. 102-564 provided that: ``Not later than
March 31, 1996, the Comptroller General of the United States shall
submit a report to the Congress and the head of each agency that is
required to make expenditures under the STTR program that--
``(1) sets forth the Comptroller General's assessment, with
respect to each such agency, of--
``(A) the quality of research performed under funding
agreements awarded by that agency under the STTR program since
the beginning of the program;
``(B) whether or not the STTR program has affected the
performance of that agency's research programs; and
``(C) the commercial potential of research conducted under
the STTR program, if sufficient data is available;
``(2) contains the Comptroller General's assessment as to the
effects of the STTR program, if any, on the research quality and
goals of the SBIR program; and
``(3) determines the agencies and the federally-funded research
and development centers' compliance with the procedures developed
under section 9(g)(10) of the Small Business Act [probably 9(o)(10);
15 U.S.C. 638(o)(10)], as amended by this section.''
Section 6 of Pub. L. 97-219, as amended by Pub. L. 99-443, Sec. 3,
Oct. 6, 1986, 100 Stat. 1120; Pub. L. 100-418, title VIII, Sec. 8008,
Aug. 23, 1988, 102 Stat. 1561; Pub. L. 100-647, title IX, Sec. 9003,
Nov. 10, 1988, 102 Stat. 3808, provided that:
``(a) The Comptroller General, no later than December 31, 1988,
shall transmit a report to the appropriate committees of the House of
Representatives and of the Senate evaluating the effectiveness to date
of phase one and phase two of the SBIR Program as set out in section
9(e)(4) of the Small Business Act [15 U.S.C. 638(e)(4)]. Such report
shall examine the quality of the research supported by the SBIR Program
compared to that traditionally supported by the affected agencies, and
the extent to which the goals of the SBIR Program are being met. Such
report shall also include the judgments of the heads of departments and
agencies as to the effect of this Act [amending this section] on
research programs.
``(b) The Comptroller General, no later than December 31, 1991,
shall transmit to such committees an update of the report mandated under
subsection (a). Such report, in addition, shall include an evaluation of
phase three of the SBIR Program including a discussion of the aggregate
commercial trends for products which are then currently in or have
completed phase three of the program.
``(c) Not later than July 1, 1989, the Comptroller General shall
transmit to the appropriate committees of the House of Representatives
and the Senate recommendations as to the advisability of amending the
Small Business Innovation Research program to--
``(1) increase each agency's share of research and development
expenditures devoted to it by 0.25 percent per year, until it is 3
percent of the total extramural research and development funds, and
targeting a portion of the increment at products with
commercialization or export potential;
``(2) make the Small Business Innovation Research program
permanent with a formal congressional review every 10 years,
beginning in 1993;
``(3) allocate a modest but appropriate share of each agency's
Small Business Innovation Research fund for administrative purposes
for effective management, quality maintenance, and the elimination
of program delays; and
``(4) include within the Small Business Innovation and Research
program all agencies expending between $20,000,000 and $100,000,000
in extramural research and development funds annually.''
Section Referred to in Other Sections
This section is referred to in sections 637, 645, 649, 657d, 657e of
this title; title 7 sections 3310, 7624; title 10 sections 2302, 2304,
2320, 2500; title 23 section 505; title 29 section 3031; title 41
sections 253, 259, 416.
